Amway takes Flipkart to court for selling products

US giant Amway has dragged Flipkart to the Delhi High Court accusing the e-commerce firm of 'unauthorised' selling of its products on its platform.

Amway, which sells nutrition and beauty products, has alleged that Flipkart 'contradicted' India’s guidelines that mandate e-commerce companies to seek permission in advance from direct-selling companies such as Amway before listing their products online,

In the direct selling model, there are no sales through traditional retail outlets — companies hire distributors who, in turn, sell products to consumers. Most times, errant distributors themselves supply unsold stocks to e-commerce sites and the firms are working to identify and penalise them.

Amway has also accused sellers on Flipkart of tampering with the unique code imprinted on lids and silver foil seals to make it impossible to trace the sources said.

The direct-selling giant said it had sent notices to Flipkart asking it to bar such sellers from the platform, but the latter failed to do so. As a result, the company had to approach the Delhi High Court.

Amway plans to ask other online e commerce portals to withdraw their sellers from their portals.
Posted On: Oct 21, 2018

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