IT Minister Priyank Kharge Warns E-Com, Q-Commerce Cos. to Improve Customer Service or Risk Govt Intervention

-The IT Minister mentioned receiving numerous complaints from people regarding delivery apps failing to meet promises on timely deliveries and proper refunds.

- He said, "If needed, we will review this with the industry." 

-He also highlighted that citizen complaints on these issues were increasing, and the government would take necessary action if required.

Karnataka IT&BT Minister Priyank Kharge warned on X that quick commerce and e-commerce platforms must improve their customer service and delivery experiences, or risk government intervention through regulations to ensure better service for citizens.

‘’@swiggy, @zomato, and other quick commerce and e-commerce platforms must improve their customer service and delivery experience, otherwise, governments may have to step in with regulations to ensure better service and functionality for the citizens,” he posted.

He further wrote, “While chatbots and smart prompts could handle some of these customer issues, they fell short when it came to resolving genuine customer or citizen grievances, often trapping them in an endless cycle of uncertainty.”

The IT Minister mentioned receiving numerous complaints from people regarding delivery apps failing to meet promises on timely deliveries and proper refunds. In response to a query from The Hindu, he said, "If needed, we will review this with the industry." 

He also highlighted that citizen complaints on these issues were increasing, and the government would take necessary action if required.

Five top Regulatory Developments

FDI Compliance & Operational Transparency: Government officials have engaged with executives from platforms including Blinkit, Swiggy Instamart, Zepto, and Bigbasket to discuss adherence to FDI norms, particularly concerning warehouse ownership and operational models. Concerns have been raised about the impact of these platforms on local kirana stores and the potential for predatory pricing.

 

Legal Metrology Act Enforcement: Notices have been issued to several quick commerce and e-commerce firms for non-compliance with the Legal Metrology Act, which governs the packaging and labeling of commodities sold in India.

 

Food Safety and Standards Regulations: The government has emphasized the need for quick commerce platforms, especially those dealing with food items, to comply with the Food Safety and Standards Authority of India (FSSAI) regulations. This includes adherence to the 2021 Amendment Regulations, which define e-commerce-based food business operators (EFBOs) and outline their responsibilities.

 

Antitrust Investigations: The Competition Commission of India (CCI) has found that major food delivery firms, including Zomato and Swiggy, violated antitrust laws by engaging in practices favoring select restaurant partners, such as exclusivity contracts and pricing restrictions. Investigations into quick commerce platforms like Blinkit, Swiggy, and Zepto are ongoing, with allegations of predatory pricing and unfair competition practices.

 

Proposed E-commerce Reforms: The government is considering reforms to modernize e-commerce laws, which may include measures such as a ban on flash sales, mandatory compliance officers for platforms, and enhanced data protection regulations. These reforms aim to ensure fair competition and protect consumer interests.

These developments indicate a growing governmental focus on regulating the quick commerce sector to balance innovation with consumer protection and fair market practices.