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CAIT demands 7-day ban on Amazon for not indicating country of origin

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NEW DELHI: Expressing dissatisfaction with the Rs 25,000 penalty levied on Amazon India by the ministry of consumer affairs, the Confederation of All India Traders (CAIT) has demanded a seven-day ban on the e-commerce giant for not providing the mandatory details of 'country of origin' on the products sold on the platform.

For the record, the ministry of consumer affairs last month sent a notice directing e-commerce portals to clearly display country of origin on products listed on their websites. However, Amazon and Flipkart were found to be non-compliant, and the former was fined Rs 25,000 for it.

CAIT has said that the fundamental of levying the fine is to make offenders realise their fault so they do not commit the same offence again.

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“However, the paltry monetary penalty has no significance at all and it is demanded that a seven-day ban on Amazon and other big ecommerce companies who are continuously offending the law and policies, should be imposed on them… Let there be an exemplary punishment," CAIT wrote in a statement.

CAIT national president BC Bhartia and secretary general Praveen Khandelwal said that imposing such a small fine on a foreign e-commerce giant for violating Indian law is nothing but a mockery of our judicial and administrative system.

"The punishment should be equal to the damage caused by them on our economy and it should have reflected a clear message to the foreign e-commerce players," they said.

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Bhartia and Khandelwal added that in the wake of the magnitude of e-commerce business in India and PM Narendra Modi’s call for ‘vocal for local’ and Atmanirbhar Bharat, the description of the country of origin is now mandatory and for disobeying this law for the first time, the relevant ecommerce portal should be banned for seven days, for second offence, it should be banned for 15 days and for third offence, the portal should be banned till the time it complies fully with the law.

They insisted that a fine or penalty should always be exemplary and be in proportion to the offence committed. Having this yardstick as the barometer, the fine of a token amount of Rs 25,000 is more like compromising with the law.

Further, they claimed that there is some vested interest behind the continuous violation of the Indian law by these ecommerce companies and hence, the fine imposed needs to be steep.

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"Law should be equal for everybody and other ecommerce players (Flipkart, Myntra) should also face the heat for flouting rules. We are unable to understand why they were not fined. Such an indecisive attitude of the authorities towards the foreign e-commerce players is quite unreasonable," they added.

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e-commerce

Flipkart rolls out 105 per cent bonus for 20,000 employees

Strong FY25 performance drives payouts even as layoffs and shifts unfold.

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MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.

Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.

Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.

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This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.

At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.

These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.

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For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.

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