Price Freezes and Preferential Discounts: Flipkart Sellers Seek Fair Treatment Amid Festive Season

Walmart-owned Flipkart sellers have voiced concerns over price freezes and alleged coercive tactics, undermining their autonomy in the digital marketplace. Sellers have described anticompetitive practices by, claiming that the platform has recently imposed restrictions that cap product prices based on an average from the previous 6 to 12 months. Flipkart sellers have further argued that this move contradicts their contracts and prevents them from setting prices freely in response to shifting market dynamics.

“We generally have the freedom to set our own prices on e-commerce platforms, but recently, there’s been an issue with Walmart’s Flipkart, which has been twisting sellers' hands. They’ve frozen prices on the platform, taking an average of the last 6-12 months and locking us into that, which goes against our contract. We need help from regulatory bodies to stop e-commerce platforms like Flipkart from freezing our prices and pushing us into selling at lower rates.” a seller expressed during a recent webinar hosted by the Policy Consensus Centre (PCC) on seller autonomy.

Flipkart is currently under scrutiny after sellers accused it of unfair practices, including price manipulation and preferential treatment. Recently, a complaint was lodged with the Ministry of Commerce, alleging that the e-commerce giant is engaging in practices that undermine fair competition and stifle market dynamics. In a letter to the Department for Promotion of Industry and Internal Trade (DPIIT), Madras High Court advocate K Narasimhan raised concerns about Flipkart’s alleged selective discounting for certain sellers, automatic enrollment of sellers’ listings into discount waivers without consent, and restrictive price locks.

These practices reportedly create artificial price points, which disadvantage other sellers and limit their pricing autonomy. With the festive season underway—a crucial period for sales—sellers worry these tactics could hurt their earnings. The complaint asserted that Flipkart has been manipulating prices and providing preferential treatment to select sellers, raising concerns about the integrity of the marketplace. The India SME Forum had pledged to escalate the matter, and DPIIT was urged to investigate Flipkart’s alleged discriminatory behavior.

Lloyd Mathias, a business leader and angel investor, argued that it’s time for e-commerce giants to be held accountable for actions that threaten seller autonomy. “Sellers should not be held to ransom by platforms dictating price points or using threats. Just as we hold the offline world accountable, the same standards must apply online, where unfair trade practices can weaken seller autonomy,” Mathias remarked during the webinar.

Experts also stressed the need for a broader regulatory lens that expands perspective beyond just foreign players and consider practices across the entire retail sector. “Only by developing a comprehensive regulatory framework can we protect the interests of MSMEs and independent sellers,” Nirupama Soundararajan, Founder of the Policy Consensus Centre asserted.

The webinar underscored the importance of MSME-friendly practices as the government strives to achieve its ambitious goal of $1 trillion in exports. Panelists argued that the success of e-commerce in India depends on creating a fair environment that prioritizes transparency and fair competition for all businesses, regardless of size or origin.