July 19, 2020

Club Factory sellers send payment notice

By Mira

On Tuesday, Club Factory, which has now temporarily paused operations here, told its Indian merchants that it will settle existing dues only after the ban is lifted, triggering anger and anxiety from sellers. It has about 30,000 registered Indian sellers

A group of Indian sellers through Aiova — an association of online merchants — has sent a legal notice to Chinese e-tailer Club Factory for suspending all payment settlements till the ban on the platform continues here. Club Factory is one of the 59 Chinese apps banned by the government. On Tuesday, Club Factory, which has now temporarily paused operations here, told its Indian merchants that it will settle existing dues only after the ban is lifted, triggering anger and anxiety from sellers. It has about 30,000 registered Indian sellers.

Aiova’s legal counsel Chanakya Basa said they have asked Club Factory to settle dues in 48 hours. Failing which, the association will have to consider the next course of action. He also felt pausing settlements until the ban is lifted could be a ploy to nudge the government to exempt the platform’s operations.