Indian Government Proposes Ban On Fraudulent Flash Sales and In-house Labels On E-commerce Platforms Like Amazon

India proposed on Monday banning flash sales on e-commerce platforms and preventing their affiliate entities from being listed as sellers as the South Asian market looks to further tighten rules that could hurt the future prospects of Amazon and Walmart’s Flipkart in the world’s second-largest market.

The proposal (PDF), unveiled by India’s Ministry of Consumer Affairs on Monday evening, comes at a time when brick-and-mortar retailers in India have ramped up their complaints to raise concerns about what they allege as unfair practices employed by Amazon and Flipkart as they expand their operations in the country.

In its proposal, India’s Ministry of Consumer Affairs said that e-commerce firms should not be allowed to hold flash sales in India. These flash sales, akin to Black Friday and Cyber Monday sales in the U.S., are very popular during festive season in the country.

The new proposal may also prohibit Amazon, Flipkart and other e-commerce players from running their in-house / private labels. The new proposal asks e-commerce firms to ensure that none of their related and associated parties are listed on their platforms as sellers for selling to customers directly. “Ensure that nothing is done by related parties or associated enterprises which the e-commerce entity cannot do itself,” the proposal said.