The All India Consumer Products Distributors Federation (AICPDF) has asked the government to urgently review whether Amazon and Flipkart's expansion into quick commerce complies with India's foreign direct investment (FDI) rules for ecommerce.

The trade body said foreign-backed marketplace platforms must operate strictly within Indian law, regardless of size or capital strength, and should not be allowed to undermine the country's traditional retail and distribution networks.

Citing the Consolidated FDI Policy and DPIIT's 2018 Press Note 2, AICPDF noted that 100% FDI is allowed only under the marketplace model, which bars platforms from owning inventory, influencing prices, or favouring select sellers. It argued that quick commerce's dark-store and fulfilment-centre network raises questions about whether inventory control, pricing, and logistics practices align with these conditions.

The Federation also flagged concerns over deep discounting and loss-funded promotions, warning that these could hurt small retailers lacking comparable capital access. It called for scrutiny of pricing transparency and algorithm-driven discounts under consumer protection law.