Online vendors to join GOQii suit against Flipkart

Chennai: A group representing online vendors is planning to join startup GOQii in its case against Flipkart and find a solution to complaints of online marketplaces circumventing of FDI rules.

The All-India Online Vendors Association, which claims to represent more than 3,500 online sellers, is exploring legal options to be a part of the case of GOQii.

GOQii had sued Flipkart last month in a Mumbai court alleging that its devices were discounted by around 70 per cent to the retail price and this was higher than what was agreed by both sides. GOQii is a startup that sells wearable devices that track physical workouts.

"Next hearing in the case is coming up next Friday and we are exploring ways to be part of the case before that. We have been receiving several complaints of similar nature from our seller members. GOQii is the first seller to seek legal redressal for such a complaint and hence we want to support them,' said AIOVA spokesperson.

According to him, online seller associations in the European Union are allowed to file cases against online companies. In India, there are no clear laws in this regard. AIOVA is also trying to get some of its member sellers to be part of the case.

Meanwhile, AIOVA will also be challenging a Competition Commission ruling in a complaint it had filed earlier on the modus operandi adopted by online marketplaces in circumventing FDI rules. The CCI had disposed the case earlier and AIOVA will challenge the ruling at the National Company Law Appellate Tribunal. AIOVA had also approached the Enforcement Directorate, DIPP and RBI in earlier instances.