B2B Payments

Walmart, Metro, Carrefour Accused Of B2B Naughtiness

Several global retail chains—including Walmart, Metro and Carrefour—that were allowed to now sell only via B2B in India have instead been found to have repeatedly sold directly to consumers, in violation of foreign direct involvement (FDI) rules, according to a story in Cobrapost in India, as reported by The Indian Express.

“In an almost two-hour long documentary, persons alleged to be executives of these firms are seen to be permitting and promoting retail operations in their respective stores. According to the law, FDI in multi brand retail is currently not permitted, and these wholesalers have been mandated to adhere strictly to B2B operations,” the story said. “Cobrapost claims the store executives were willing to allow routine shoppers to buy things for personal consumption. They were allowed entry on the membership cards issued to a few businessmen to which the entire amount was billed. Journalists from the web portal claim to have visited 12 Best Price (Walmart) stores , seven Metro stores and four Carrefour stores across 15 different cities to confirm their findings.”

Other than direct punishments for flouting the call, these chains risk much more dire consequences. This report could antagonize Indian legislators and regulators, especially because multiple major chains were involved. Nothing angers government officials more than foreign businesses that agree to domestic restrictions and then disobey them. This could lead to more foreign retail restrictions, which could hurt the Indian revenues of all chains much more than any fine or other onetime penalty.

——————————

PYMNTS STUDY: THE CROSS-BORDER MERCHANT FRICTION INDEX – JUNE 2020

The PYMNTS Cross-Border Merchant Friction Index analyzes the key friction points experienced by consumers browsing, shopping and paying for purchases on international eCommerce sites. PYMNTS examined the checkout processes of 266 B2B and B2C eCommerce sites across 12 industries and operating from locations across Europe and the United States to provide a comprehensive overview of their checkout offerings.

Click to comment

TRENDING RIGHT NOW