CCPA takes action against E-commerce entities for selling toys that violates mandatory Toys (Quality Control) Order, 2020
New Delhi [India], February 17 (ANI): The Central Consumer Protection Authority (CCPA) has taken strict action against e-commerce entities and sellers for the sale of toys in violation of the mandatory Toys (Quality Control) Order, 2020 and prescribed Bureau of Indian Standards (BIS) standards. In this regard, the CCPA has imposed a penalty of ₹5,00,000 (Rupees Five Lakh) on Snapdeal (Ace Vector Limited) for engaging in unfair trade practices and misleading advertisements by facilitating the sale of non-BIS compliant toys on its platform, in violation of consumer rights.
The CCPA took suo-moto cognisance of the matter, discovering that toys were being sold on Snapdeal in violation of the Toys (Quality Control) Order, 2020, which became mandatory on 01st January, 2021. A detailed investigation revealed several critical lapses:
Commercial Benefit from the products sold: Snapdeal earned fees amounting to ₹41,032 from the sale of these non-compliant toys through just two identified sellers: Stallion Trading Company and Thriftkart.
Lack of Transparency: Many listings lacked essential information, such as the manufacturer's name, address, and mandatory BIS certification numbers.
Snapdeal took its defence as it acts as a "marketplace e-commerce entity" similar to a physical shopping mall. The CCPA categorically rejected this analogy, noting that Snapdeal exerts "substantial control" over transactions by:
Tagging products with quality assurances such as "great quality at best price," which acts as a false guarantee when applied to non-compliant BIS standard goods
The CCPA observed that the shift from caveat emptor (let the buyer beware) to caveat venditor (let the seller beware) places the burden of ensuring product safety squarely on both the seller and the facilitating platform. Consequently, the onus is on the platform to ensure that every listed product meets the safety and quality standards, such as the BIS certification for toys, and it remains vicariously liable for any deficiency in service or defect in goods that reach the consumers through its portal.
The Central Consumer Protection Authority (CCPA) had issued notices to e-commerce entities and the sellers, such as Amazon, Flipkart and Snapdeal, Stallion Trading Company, electronics bazar store, etc., for the sale of toys in violation of QCO and BIS standards directed for compulsory use by the Central Government.
The Authority has imposed a penalty of ₹5,00,000 for engaging in unfair trade practices and misleading advertisements. The authority has also directed Snapdeal to:
Prominently display contact numbers, email addresses, and Grievance Officer Details to facilitate prompt consumer redressal.
The Authority reaffirmed its commitment to protecting consumer rights, preventing unfair trade practices and ensuring a safe and transparent digital marketplace, and urged all e-commerce platforms to exercise strict regulatory verification and accurate disclosures. (ANI)
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