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Why did India’s Consumer Authority issue orders against e-commerce platforms like Amazon and Flipkart?

The issuance of these orders begs the question—are e-commerce platforms liable for what is being sold on their platform by other businesses?

We missed it earlier An order was issued against top five e-commerce platforms by the Central Consumer Protection Authority (CCPA) for selling car seat belt alarm stopper clips, according to a press release. The government reasoned that the orders were issued because these clips compromise “life and safety of consumers” by stopping alarm beeps when not wearing seat belts. The orders were passed against the following companies for violating consumer rights and indulging in unfair trade practices under the Consumer Protection Act, 2019: Amazon, Flipkart, Snapdeal, Shopclues Meesho The authority found that clips were being sold “blatantly on several e-commerce platforms in an easy-to-access manner”. It added that some sellers were selling clips by camouflaging them under the garb of bottle openers or cigarette lighters, etc. Why it matters: It is important to note this development as it concerns the issue of safe harbour for e-commerce platforms rather than just selling alarm stopper clips. The issuance of orders by the ministry begs the question—are e-commerce platforms liable for what is being sold on their platform by other businesses? Moreover, it is worth wondering if e-commerce companies are mere intermediaries or they should get involved in what’s being sold on their platforms. What were the results of the investigation: The investigation was conducted by DG Investigation (CCPA) following which e-commerce companies were asked to delist all car seat belt alarm stopper clips permanently. The companies had to share details of the steps taken against errant sellers and submit their details, along…

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I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

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