Government tightens norms for e-commerce companies for sale of products

Agencies
December 26, 2018

New Delhi, Dec 26: Tightening norms for e-commerce firms like Flipkart and Amazon, the government Wednesday took host of steps and barred them from selling products of the companies in which they have stake. The commerce and industry ministry also prohibited e-commerce companies from entering into an agreement for exclusive sale of products.

"An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity," the ministry said.

Besides, the revised policy on foreign direct investment in online retail firms said that services should be provided by e-commerce marketplace entity or other firms in which e-retail company has a direct or indirect equity participation or common control to vendors on the platform at arms length and in fair and non-discriminatory manner.

"Cash back provided by the group companies of marketplace entity to buyers shall be fair and non-discriminatory," the ministry's notification said.

It further said that these companies will have to file a certificate along with a report of statutory auditor to the RBI, confirming compliance of guidelines by September 30th of every year for the preceding fiscal.

These changes will come into effect from February 1 next year.

The decision comes in the backdrop of several complaints being flagged by domestic traders on heavy discounts being given by e-commerce players to consumers.

As per the current policy, 100 per cent FDI is permitted in marketplace e-commerce activities. It is prohibited in inventory-based activities.

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Agencies
July 18,2020

New Delhi, Jul 18: India's national cybersecurity agency CERT-in, has warned people of credit card skimming spreading across the world through e-commerce platforms.

Attackers are typically targeting e-commerce sites because of their wide presence, popularity and the environment LAMP (Linux, Apache, MySQL, and PHP), the Computer Emergency Response Team (CERT-In) said in a notice on Thursday.

Recently, attackers targeted sites which were hosted on Microsoft's IIS server running with the ASP.NET web application framework, it said.

Some of the sites affected by the attack were found to be running ASP.NET version 4.0.30319, which is no longer officially supported by Microsoft and may contain multiple vulnerabilities, CERT-In said.

The notice also included a list of best practices for website developers including the use of the latest version of ASP.NET web framework, IIS web server and database server.

The advisory is based on research by Malwarebytes which found that this skimming campaign likely began sometime in April this year.

Credit card skimming has become a popular activity for cybercriminals over the past few years, and the increase in online shopping during the pandemic means additional business for them, too, Malwarebytes said in a blog post, adding that attackers do not need to limit themselves to the most popular e-commerce platforms.

Researchers from global cybersecurity and anti-virus brand Kaspersky had warned in December last year that more cybercriminal groups will target online payment processing systems in 2020. 

It said that over the past couple of years, so-called JS-skimming (the method of stealing of payment card data from online stores), has gained immense popularity among attackers. 

Kaspersky researchers in their report said they are currently aware of at least 10 different actors involved in these type of attacks.

Their number will continue to grow during the next year, the report said, adding that the most dangerous attacks will be on companies that provide services such as e-commerce as-a-service, which will lead to the compromise of thousands of companies.

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Agencies
June 22,2020

New delhi, Jun 22: As consumer sentiment runs high amid growing chorus for boycotting Chinese goods in the country, the fluid market situation offers new opportunities for various smartphone makers, especially the non-Chinese ones like Samsung, Apple, Nokia, Asus and others, to realign their strategies and regain the lost market share in the face of fierce Chinese competition.

The challenge here would be not to look "opportunistic" and leverage the current explosive situation on just riding on the anti-Chinese sentiment but to offer real challenges in the form of top-end devices with solid internals at affordable price points, feel industry experts.

"The current market conditions in India are fluid and open up new opportunities for smartphone original equipment manufacturers (OEMs) to focus and leverage," Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), told IANS.

In the first quarter (January-March) this year, Samsung's shipments were driven by its upgraded A and M series (A51, A20s, A30s, and M30s).

According to Counterpoint Research, Samsung managed to hold third position in Q1 2020 due to launches across several price tiers, especially in the affordable premium segment (S10 Lite, Note 10 Lite).

The South Korean smartphone maker last week announced a Rs 4,000 price drop on its popular Galaxy Note10 Lite smartphone that will now cost Rs 37,999 (6GB variant).

Earlier this month, Samsung launched two new smartphones, Galaxy M11 and Galaxy M01, with powerful batteries under Rs 15,000 in India.

Galaxy M11 comes in two variants. The 3GB+32GB will be priced at Rs 10,999 while the higher 4GB+64GB variant will be available for Rs 12,999.

Samsung has also launched an affordable Galaxy A21s smartphone with quad-camera system and 5,000mAh battery at a starting price of Rs 16,499.

Also read: Boycott China? OnePlus 8 Pro sold out within minutes of going on sale

On the other hand, Apple grew a strong 78 per cent YoY driven by strong shipments of iPhone 11 and multiple discounts on platforms like Flipkart and Amazon in Q1, according to Counterpoint.

Apple has also brought its cheapest yet powerful new iPhone SE that costs Rs 38,900 (64GB) in India with a special offer from HDFC Bank. The new iPhone SE is powered by the Apple-designed A13 Bionic, the fastest chip in a smartphone and features the best single-camera system ever in an iPhone.

According to Tarun Pathak, Associate Director, Counterpoint Research, consumer sentiments are running high and a section of users will look for alternatives, benefitting global and Indian brands.

"However, we do not think non-Chinese brands will run aggressive campaigns based on the situation as it might look like being opportunistic," Pathak told media.

It may actually let brands of Chinese origin try to run aggressive campaigns on their presence and scale.

"Some of these Chinese brands have been active in scaling up local value addition, creating jobs and investing in research and development," Pathak noted.

On Saturday, market leader Xiaomi said that it is "more Indian" than any other smartphone brand.

The company's India head Manu Kumar Jain said that the company's mobile phone R&D centre and product team is in India, it employs 50,000 people in the country, the entire leadership team is Indian and that the company pays its taxes in India.

Earlier, Realme India CEO Madhav Sheth who is also very active on social media said that Realme is an Indian startup.

In his latest episode of Ask Madhav' series on YouTube, Sheth said: "I can proudly say Realme is an Indian startup, which is now a global MNC (multinational corporation)".

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Agencies
February 27,2020

Feb 27: With the window to submit comments on India's proposed personal data protection law closing on Tuesday, a period of anxious wait for final version of the Bill started for social media firms.

This comes even as global Internet companies have called on the government for improved transparency related to intermediary Guidelines (Amendment) Rules and allay fears about the prospect of increased surveillance and prompting a fragmentation of the Internet in India that would harm users.

As per the proposed amendments, an intermediary having over 50 lakh users in the country will have to be incorporated in India with a permanent registered office and address.

When required by lawful order, the intermediary shall, within 72 hours of communication, provide such information or assistance as asked for by any government agency or assistance concerning security of the state or cybersecurity.

This means that the government could pull down information provided by platforms such as Wikipedia, potentially hampering its functioning in India.

In the open letter to IT Minister Ravi Shankar Prasad, leading browser and software development platform like Mozilla, Microsoft-owned GitHub and Cloudflare earlier called for improved transparency by allowing the public an opportunity to see a final version of these amendments prior to their enactment.

According to a Business Insider report, Indian users may lose access to Wikipedia if the new intermediary rules for internet and social media companies are approved.

Since the rules would require the website to take down content deemed illegal by the government, it would require Wikipedia to show different content for different countries.

Anusha Alikhan, senior communications director for Wikimedia told Business Insider that the platform is built though languages and not geographies. Therefore, removing content from one country, while it is still visible to other country users may not work for the company’s model.

India is one of Wikipedia’s largest markets. Over 771 million Indian users accessed the site in just November 2019.

Also read: Explained: What is the Personal Data Protection Bill and why you should care

The Personal Data Protection Bill, 2019, which was introduced in Lok Sabha in the winter session last year, was referred to a Joint Parliamentary Committee (JPC) of both the Houses.

The government last month decided to seek views and suggestions on the Bill from individuals and associations and bodies concerned and the last date for submitting the comments was on Tuesday.

Prasad, while introducing the Personal Data Protection Bill, 2019, in the Lok Sabha on December 11, announced that the draft Bill empowers the government to ask companies including Facebook, Google and others for anonymised personal data and non-personal data.

There was a buzz when the Bill's latest version was introduced in the Lok Sabha, especially the provision seeking to allow the use of personal and non-personal data of users in some cases, especially when national security is involved.

Several legal experts red-flagged the issue and said the provision will give the government unaccounted access to personal data of users in the country.

In their submission to the JPC, several organisations also flagged that the power to collect non-personal and anonymised data by the government without notice and consent should not form part of the Bill because of issues regarding effective anonymisation and potential abuse.

"Clauses 35 and 36 of the Bill provide unbridled access to personal data to the Central Government by giving it powers to exempt its agencies from the application of the Bill on the basis of various broad worded grounds," SFLC.in, a New Delhi-based not-for-profit legal services organisation, commented.

The Software Alliance, also known as BSA, a trade group which includes tech giants such as Microsoft, IBM and Adobe, among others said that the current version of the privacy bill pose substantial challenges, including the sweeping new powers for the government to acquire non-personal data, restrictions on data transfers, and local storage requirements.

"We urge the Joint Parliamentary Committee, as it considers revisions to the Bill, to eliminate provisions concerning non-personal data from the Personal Data Protection Bill and to remove the data localisation requirements and restrictions on international data flows," said Venkatesh Krishnamoorthy, Country Manager-India, BSA.

The Personal Data Protection (PDP) Bill, 2019 draws its origins from the Justice B.N. Srikrishna Committee on data privacy, which produced a draft of legislation that was made public in 2018 ("the Srikrishna Bill").

The mandatory requirement for storing a mirror copy of all personal data in India as per Section 40 of the Srikrishna Bill has been done away with in the PDP Bill, 2019, meaning that companies like Facebook and Twitter would be able to store data of Indian users abroad if they so wish.

But the bill prohibits processing of sensitive personal data and critical personal data outside India.

What is more, what constitutes critical data has not been clearly defined.

As per the proposals, social media companies will have to modify their application as they are required to have a system in place by which a user can verify themselves.

So legal experts believe that some system to upload identification documents should be there and something like the Twitter blue tick mark should be there to identify verified accounts.

"The 2019 Bill introduces a new category of data fiduciaries called social media intermediaries ('SMIs'). SMIs are a subcategory of significant data fiduciaries ('SDFs') and will be notified by the Central government after due consultation with the DPA, or the Data Protection Authority. Clause 26(4) of the Bill defines SMIs as intermediaries who primarily or solely enable online interaction between two or more users," SFLC.in said.

"On a plain reading of the definition, online platforms like Facebook, Twitter, YouTube, TikTok, ShareChat and WhatsApp are likely to be notified as SMIs under the Bill," it added.

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