Amazon moves Supreme Court against direct selling companies

NEW DELHI: Amazon Seller Services has moved the Supreme Court against direct selling companies Amway, Oriflame and Modicare, challenging a Delhi High Court judgement last month barring ecommerce platforms from selling products of direct selling companies without their authorisation.“While direct selling companies contribute a minuscule percentage to sales on ecommerce platforms as of now in India, Amazon is of the opinion that any court order restraining ecommerce platforms to sell specific categories of products might set a precedent for other categories as well,” said a senior industry official directly aware of the developments.Amazon didn’t respond to an email query as of press time Tuesday.An Amway India spokesperson, in an email revert, told ET: “The matter is currently sub judice. However, we believe that the findings of the Delhi High Court are correct and in the interest of the consumers and direct sellers. We are confident that the Hon’ble Supreme Court will arrive at a similar finding.”Amway, Oriflame and Modicare lead the Indian direct selling industry.“The Delhi High Court judgement clarifies that neither ecommerce platforms nor sellers can sell our products without our consent, and we are hopeful it will continue,” Indian Direct Selling Association (IDSA) chairman Vivek Katoch said.Late last year, Amway had dragged Flipkart to Delhi High Court, accusing the Walmart-owned ecommerce marketplace of “unauthorised” selling on its platform.Amway, Oriflame and Modicare also had moved the court against the unauthorised sale of their products on ecommerce platforms such as Flipkart, Amazon and Snapdeal.The Parliamentary Standing Committee on Finance had recommended a regulatory framework for the direct selling business to distinguish between legitimate companies and pyramid schemes.

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