18/03/2025
Open letter to jenab Omar Abdullah
Dated : 18 March 2025
To,
The Hon’ble Chief Minister,
Union Territory of Jammu & Kashmir
Subject: Urgent Need for Regulation on Unchecked Social Media Sales, Advertisement Charges & Proper Billing in J&K
Respected Sir,
I am writing to bring to your attention a pressing issue that is severely affecting the business community in Jammu & Kashmir. Over the past few years, we have faced multiple challenges, including the removal of Article 370 and the COVID-19 pandemic, yet we have continued to sustain our businesses with resilience. However, a new unregulated sales culture on social media is creating unfair competition, financial distress, and unethical practices that must be stopped immediately.
Many so-called social media influencers are charging businesses to promote flash sale offers on their platforms without any regulatory oversight or taxation. As a result, we are witnessing unrealistic and unsustainable discounts, such as:
12 pairs of shoes for ₹999
5 jackets for ₹999
3 Pack diapers for @999
3 shawarmas for ₹99
How This Is Destroying Local Businesses & Consumer Trust
These offers may attract consumers in the short term, but they cripple legitimate businesses that have high operational costs, staff salaries, and significant investments. The scale and frequency of these promotions have reached a level where serious legal and economic concerns arise:
1. Legal Compliance & Accountability – Are these vendors registered with the concerned departments? If not, they are openly violating consumer protection laws, tax regulations, and business ethics.
2. Unfair Business Practices – Small and medium-sized business owners cannot compete with such extreme discounts, leading to job losses and financial instability.
3. Consumer Fraud & Exploitation – Many consumers have suffered financial loss due to misleading advertisements and substandard or counterfeit products.
4. Lack of Proper Billing & Tax Evasion – Most of these sellers do not issue proper GST bills, leading to tax evasion and loss of government revenue.
5. Impact on Local Economy & Kashmiriyat – If this trend continues, it will collapse local businesses, which are an integral part of Kashmir’s economy and cultural identity.
Clarification on E-Commerce vs. Social Media Sales
We understand that e-commerce companies operate within a regulated framework, where businesses are required to register, pay taxes, and follow consumer protection laws. However, these unregulated social media sales operate without accountability, proper billing, or taxation, making them completely illegal. Unlike e-commerce platforms, which have not significantly impacted our business community, these unauthorized online promotions are severely damaging local traders and leading to consumer fraud.
Demand for Strict Action Against Those Involved
We urge the government to immediately investigate and take strict action against all individuals involved in running and promoting these misleading offers. The following measures should be implemented:
Criminal & Financial Penalties – Those running fraudulent sales should face legal action, heavy fines, and business shutdowns if found guilty.
Strict Tax Audits & Compliance Checks – All vendors selling through social media must register legally, maintain proper sales records, and issue proper GST bills.
Consumer Refund & Compensation System – Consumers who have been misled or defrauded should be entitled to refunds and compensation under consumer protection laws.
Banning Unauthorized Advertisements – Social media platforms must be instructed to allow promotions only from verified and legally registered businesses.
Regulation of Social Media Influencers & Advertisement Charges
Apart from regulating social media sales, we also request the government to introduce fixed pricing and taxation for social media influencers who charge businesses for advertisements. Many influencers charge ₹3,000, ₹4,000, or more per post without any fixed structure or tax compliance. This leads to:
Unfair business practices, as some businesses can afford frequent promotions while others cannot.
Loss of government revenue, as these earnings remain unreported and untaxed.
Market exploitation, as influencers can set any price at their discretion.
Our Humble Request to the Government
We urge you to take strict action against unregistered vendors and social media influencers and introduce policies to regulate social media sales, advertisements, and proper billing. Specifically, we request:
Investigation into Vendors & Influencers – Authorities should verify the registration, tax compliance, and authenticity of businesses running such promotions.
Stronger Consumer Protection Laws – There should be strict checks on online sales and misleading discount offers.
Fixed Advertisement Rates for Influencers – The government should introduce a structured pricing system to ensure fair competition.
Mandatory Taxation & Billing Compliance – Influencers and businesses must be registered, taxed, and required to issue proper bills.
Public Disclosure of Investigations – The results of these investigations should be made public for transparency.
Strict Ban on Fraudulent Sales & Promotions – Legal action should be taken against those violating these rules.
Eid Is Approaching – The Business Community Needs Immediate Support
With Eid just around the corner, the entire business community is eagerly awaiting your response. The festival season is crucial for local businesses, and timely action from your esteemed offices can help restore fair market conditions and protect local livelihoods.
We trust your leadership will address this matter with urgency, and we look forward to a favorable response.
Thank you for your time and consideration.
Sincerely,
Aadil Khan Durrani
Chief spokesperson
FMCGDMAK
Credit Wahid Punjabi Executive Member FMCGMADAK
