New Delhi: The government has warned Flipkart and Amazon's local units that the sellers are not following the rule of specifying the product's country of origin. The rule was strictly enforced as India's efforts to cut down on Chinese products, following a border skirmish between India and China.
The Union ministry of consumer affairs has sent a letter on October 16 asking the two firm to explain the lapses within 15 days, or action will be taken against them. Although, the letter did not specify what actions will be taken, but referred to a legal action that has provisions for fines.
Along with the ban on using Chinese imported goods, the government has also banned around 177 Chinese mobile applications.
Amazon has faced several regulatory challenges in the country. In the previous year, the government enforced rules for foreign investment in e-commerce which forced Amazon to rework its existing business structures. It strained ties between New Delhi and Washington.