From Myntra To Amazon, Flipkart, Zepto, Ola & Uber: How E-Commerce Giants Are Caught In Web Of Unfair Trade Practices

India’s e-commerce sector has grown rapidly in recent years, offering convenience, variety, and competitive pricing to millions of consumers. However, behind this growth lies a troubling trend—alleged violations of investment rules, manipulative business practices, and disregard for consumer rights.

The recent Enforcement Directorate (ED) investigation into Myntra is just the tip of the iceberg.

Myntra’s Rs 1,654 Crore FDI Trouble

On Wednesday, the Enforcement Directorate (ED) revealed it is investigating fashion e-commerce giant Myntra for violating foreign direct investment (FDI) rules. The company reportedly raised nearly Rs 1,654 crore from foreign investors but allegedly used the funds to run a business model not allowed under law.

Myntra, which is registered as a wholesale retailer, is accused of selling goods through a retailer it owns, which then sells those products directly on Myntra’s platform. This is seen as a violation because FDI policy bans foreign-funded companies from directly selling goods to consumers. They are only allowed to operate marketplaces—platforms that connect independent buyers and sellers.

Amazon, Flipkart Also Under Scrutiny

Myntra is not alone. Earlier, the ED conducted searches at 19 premises linked to “preferred vendors” of Amazon and Walmart-owned Flipkart, as part of a wider probe into FDI violations.

These vendors are believed to be closely linked to the platforms and may be used to manipulate pricing and inventory, effectively allowing these companies to engage in direct selling, which is prohibited under the law.

The Central Consumer Protection Authority (CCPA) is also looking into how these companies might be using their market dominance to influence pricing, offer unsustainable discounts, and push out smaller retailers, creating an uneven playing field.

Consumer Exploitation Beyond FDI: The Ola-Uber Case

Unfair practices in digital marketplaces aren’t limited to e-commerce. In January, the Central Consumer Protection Authority (CCPA) issued notices to cab aggregators Ola and Uber for differential pricing—charging different fares for the same rides based on whether the user has an Android or iPhone device.

Such practices are now being labelled as "unfair trade practices" and a violation of consumers' right to transparency and fairness. The concern is that users are being treated unequally based on the kind of phone they own—a decision that has nothing to do with the actual ride quality or distance.

Zepto's Hygiene Issues: Health Over Speed

Even in the quick-commerce space, lapses are surfacing. The Maharashtra FDA recently suspended the food license of Zepto's parent company after finding expired and fungus-infected food items in one of its Mumbai dark stores. Products were stored in unsanitary conditions with stagnant water, and cold storage rules were flouted.

This not only violates food safety laws but also highlights how hyper-growth in the name of convenience can come at the cost of basic health and hygiene standards.

Dark Patterns: Manipulating Consumers Silently

Another rising concern is the use of “dark patterns”—design tactics used by websites and apps to mislead, coerce, or manipulate consumers into making choices they wouldn’t otherwise make.

The CCPA has officially listed 13 types of dark patterns—including drip pricing, false urgency, bait-and-switch tactics, and subscription traps. Many e-commerce websites are found using these techniques, such as showing low prices initially, then adding hidden fees during checkout, or pushing consumers into signing up for subscriptions they don’t fully understand.

To fight this, the government has asked all e-commerce platforms to conduct self-audits and declare whether their platforms are free from dark patterns. A Joint Working Group has also been formed to create a more ethical and user-friendly online environment.

Also Read: Explained: What Is FEMA, and Why Is Myntra In a Tight Spot?

What This Means for Indian Consumers

From FDI rule violations to consumer manipulation and hygiene lapses, it’s becoming increasingly clear that some e-commerce and tech platforms may be crossing ethical and legal boundaries in their pursuit of growth.

India’s retail ecosystem—especially small mom-and-pop stores—has long expressed concern that these giants are burning cash, undercutting local players, and creating market monopolies through unfair tactics. Commerce Minister Piyush Goyal himself has questioned the intent behind these companies’ losses, calling them signs of predatory pricing.