Business News | CAIT Releases White Paper with Allegations of Unfair Trade Practices Against Quick Commerce Companies

New Delhi [India], November 13 (ANI): Traders industry body, the Confederation of All India Traders (CAIT) on Wednesday released a White Paper, raising serious concerns over the alleged practices of quick commerce platforms like Blinkit, Instamart, Zepto, Swiggy etc.

The traders body has been alleging that quick commerce platforms are undermining the foundation of India's retail economy. CAIT urged regulatory bodies to intervene and ensurethat quick commerce platforms adhere to fair trade practices and protect the interests of small traders.

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Speaking at the press conference, CAIT Secretary General, Praveen Khandelwal, condemned quick commerce platforms for misusing Foreign Direct Investment (FDI) rules to dominate suppliers, control inventory, and fund predatory pricing.

According to CAIT Secretary General strategies adopted by these platforms create an unfair playing field, making it nearly impossible for the 30 million Kirana stores to compete with them.

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"These platforms are aggressively pushing small retailers out of the market," Khandelwal said The White Paper alleges through examples of how quick commerce companies are violating FDI policies and the Competition Act of India. These violations, coupled with lack of transparency, harm small businesses and distort the retail ecosystem, said the industry body.

Addressing media in New Delhi, Khandelwal acknowledged Union Commerce Minister Piyush Goyal's recent statements, which reflect similar concerns, underscoring that such unfair practices by Quick Commerce platforms will not be tolerated.

The White Paper alleged that quick commerce platforms, backed by over Rs 54,000 crores in FDI, have not invested in creating infrastructure or long-term assets. Instead, they use FDI to subsidize operational losses, control supply chains, and offer predatory discounts through a small group of preferred sellers.

These practices have facilitated quick commerce platforms to capture 25-30 per cent of the market which was once dominated by Kirana stores, putting many traditional retailers on the brink of closure.

The White Paper alleges multiple regulatory violations by Quick Commerce platforms, including, restricted market access, predatory pricing, lack of transparency, and FEMA violations. The White Paper also charges that these platforms are also violating the Competition Act, 2002. Their agreements with preferred sellers have restricted market competition and limited consumer choice.

CAIT urged immediate regulatory intervention by regulators and the government to hold these platforms accountable. If allowed unchecked growth driven by foreign capital poses a significant threat to India's small retail ecosystem.

CAIT called on the government to enforce stricter oversight through the proposed consumer protection (E-commerce) Rules, E-commerce Policy and ensure that Quick Commerce platforms operate with greater accountability while preserving the integrity of India's retail sector. (ANI)

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