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Amazon moves Delhi HC against CCPA’s Penalty for selling low-quality pressure cookers

The case by Amazon in the Delhi High Court against India’s consumer protection body CCPA raises questions of intermediaries’ liability in e-commerce

What’s the news? Amazon has approached the Delhi HC challenging the Rs 1 lakh penalty order passed by the Central Consumer Protection Authority (CCPA). The Central authority falls under the Ministry of Consumer Affairs and is responsible for regulating consumer rights violations among other things. Background: In August this year, CCPA passed an order against Amazon for selling 2,265 domestic pressure cookers which were “not conforming to mandatory standards” after a notification of the QCO (Quality Control Order), an August government press release stated. In addition to the fine, Amazon was directed to notify all the customers who bought such pressure cookers, recall those products and reimburse the customers. A similar order of penalty was passed against Paytm Mall, “which had complied with the direction passed by CCPA and deposited the penalty of Rs 1 lakh.” Amazon vs Ministry of Consumer Affairs: Arguments The Department of Consumer Affairs, in its statement said the authority (CCPA) passed the order against Amazon for allowing the sale of domestic pressure cookers, in violation of mandatory standards, on its platform, a PTI report published on NDTV said. Amazon’s counsel submitted that as per relevant provision under the Consumer Protection Act, the scheme is if there is a prima facie finding, the matter has to be referred for investigation, and based on the investigation, an order has to be passed. "In this case, it has been completely given a go-by apart from the fact that there is a penalty which is imposed and which is…

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