Did CCPA Really Fine Snapdeal Rs 5 Lakh for Selling Non-BIS Compliant Toys?
Synopsis
Key Takeaways
New Delhi, Feb 16 (NationPress) The Central Consumer Protection Authority (CCPA) has recently imposed a hefty fine of Rs 5 lakh on Snapdeal for selling toys that do not comply with Bureau of Indian Standards (BIS), thus breaching consumer rights. The regulatory body emphasized its commitment to taking stringent measures against e-commerce platforms and vendors who violate the Toys (Quality Control) Order, 2020, as well as the mandated BIS standards.
The CCPA's decision stems from Snapdeal (operated by Ace Vector Limited) engaging in unfair trade practices and misleading advertisements by allowing the sale of these non-compliant toys. A formal order was issued by the CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, as stated by the Ministry of Consumer Affairs.
Reports indicate that Snapdeal profited Rs 41,032 from the sale of these non-compliant toys via two identified sellers: Stallion Trading Company and Thriftkart. Many of the product listings were missing crucial information, such as the manufacturer's name, address, and necessary BIS certification numbers. The platform relied excessively on sellers' self-declarations, which the CCPA deemed insufficient for preventing hazardous products from being listed.
The CCPA rejected Snapdeal’s defense, which likened itself to a ‘marketplace e-commerce entity’ akin to a physical shopping mall. The agency pointed out that Snapdeal exercises significant control over transactions, managing promotional events like the “Toofan Sale” and “Deal of the Day”, which mislead consumers into believing in quality assurances that are not applicable to non-compliant goods.
“It is the responsibility of the platform to guarantee that all listed products comply with safety and quality standards, including the required BIS certification for toys. The platform is vicariously liable for any deficiencies in service or defects in goods sold through its portal,” the authority stated.
Moreover, when questioned about providing assurances for future sales of BIS compliant toys, Snapdeal failed to give a definitive guarantee that non-BIS compliant toys would not reappear on its platform.
The CCPA had previously sent notices to several e-commerce entities and sellers, including Amazon, Flipkart, and others, for selling toys that violate the QCO and BIS standards mandated by the Central Government.