The Confederation of All India Traders has written to the Centre asking it to ensure that no relaxations are provided to the e-commerce firms.
The Centre is in the final stages of drafting new e-commerce rules, which is expected to be launched "soon".
"... any dilution in the proposed e-commerce rules under CPA (Consumer Protection Act) will percolate a strong feeling across the country that the government has succumbed to some hidden pressures and the e-commerce landscape has been offered to the global e-tailers to twist the e-commerce to their advantage even at the cost of flouting the laws and the policy...," the CAIT said in a letter written to Union Commerce and Industry Minister Piyush Goyal.
The traders' body alleged that several foreign-funded e-commerce companies are indulging into predatory pricing, deep discounting, loss funding, exclusivity, owning inventory, and facilitating illegal items through their channels.
"We are of the considered opinion that provisions prohibiting deep discounts and flash sales, making e-marketplaces responsible for the quality of goods sold on their platforms, setting up of robust grievance redressal mechanisms, stoppage of market-distorting discount offers, mis-selling of goods and services, equal treatment of all sellers registered should be the integral and non-compromising points...," the letter said.
Besides, the traders' body, through the letter, urged the Centre to provide a level playing field to the domestic players.
"If the even level playing field is not granted, the traders of the country shall be compelled to wind up their businesses in phase wise manner because of the manipulative and unethical business practices of the e-commerce companies," it added.