Karnataka retailers warn against growing Illicit trade, market distortion in India’s e-com ecosystem
Retailers in Karnataka are raising alarms regarding the rise of illicit trade and unfair market practices in the e-commerce sector. They argue that counterfeit goods and predatory pricing models are threatening the livelihoods of small business owners and consumer safety.
Why it matters
This reflects the ongoing tension between traditional retail sectors and the rapid, often unregulated, expansion of digital commerce platforms.
The Karnataka State Retail Traders Welfare & Development Association organised a seminar on “Confronting Illicit Trade in Modern Markets” here on Tuesday where retailers, trader associations, and policymakers came together to deliberate on two rapidly growing threats impacting India’s retail ecosystem: the alarming rise of illicit trade and the increasing prevalence of unfair market practices.
Participants expressed serious concern over the growing circulation of counterfeit products, illegal distribution channels and non-compliant goods across markets, while also highlighting how predatory pricing, deep discounting and unchecked expansion of certain quick commerce and e-commerce models were creating severe imbalances for small retailers and traditional businesses.
The seminar highlighted that both illicit trade and unfair market practices were adversely affecting genuine businesses, government revenues, consumer trust and the livelihoods of lakhs of small traders across Karnataka.
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