Paytm Mall, Snapdeal penalized Rs 1 lakh per CCPA each for selling faulty pressure cookers

The Central Consumer Protection Authority (CCPA) has fined e-commerce companies Paytm Mall and Snapdeal each Rs 1 lakh each for selling non-standard pressure cookers and asked them to recall the items sold as well as refund the amount paid by consumers. .

In two separate orders, the CCPA found Paytm Ecommerce Pvt Ltd (Paytm Mall) and Snapdeal Pvt Ltd guilty of selling pressure cookers that failed to comply with BIS standards and failed to comply with the Household Pressure Cookers (Quality Control) Order 2020 ) (QCO ).

Paytm Mall listed pressure cookers from Pristine and Quba on its platform despite the product description clearly stating that it does not carry the ISI brand.

According to the March 25 order, the CCPA ordered Paytm Mall to notify all consumers of the 39 pressure cookers sold on its platform, to recall the pressure cookers and to refund their price to consumers.

He was asked to submit a compliance report within 45 days.

Snapdeal listed pressure cookers from Saransh Enterprises and AZ Sellers on its platform that were not up to standard.

The CCPA issued a similar order in the case of Snapdeal asking the e-merchant to recall 73 pressure cookers sold on its platform and to refund the amount to consumers.

The CCPA, in separate orders, called on the two e-commerce companies to “pay a fine of Rs 1 lakh for allowing the sale of pressure cookers in violation of the QCO on its platform and in violation of consumer rights” .

Both companies in their case argued that they are intermediaries within the meaning of computer law and that the responsibility for the content lies with the seller and not with him.

The CCPA cited the Consumer Protection (Electronic Commerce) Rules, 2020, which state that no e-commerce entity shall engage in any unfair trading practice, whether in the course of its business or its platform or otherwise.

When contacted, Snapdeal said in a statement, “This order violates the principle of safe harbor and exemption from liability in certain cases pursuant to section 79 of the In addition, the CCPA has fallen outside the scope of the BIS Act, COPRA and the Consumer Protection (Electronic Commerce) Rules 2020, which clearly distinguish between the responsibilities of marketplace and the seller of a product on the marketplace. The company will seek an appeal as it is important to set the correct precedent under applicable law, which has been upheld by multiple High Courts and the Commission national consumption.

”However, the interests of consumers are paramount. While we challenge the CCPA order, we will offer a BIS-certified pressure cooker as an immediate replacement to all customers of the identified sellers, which includes the 73 customers identified in the order. In accordance with our confirmation to the CCPA, the listings of the three sellers have been removed and the sellers have been permanently blocked from the platform.”

As a platform, we continue to roll out the technology, supported by manual verification to ensure that no products without mandatory BIS certification are listed on our platform, he mentioned.

In the case of Snapdeal, the CCPA said it collects platform fees from sellers for every sale made on its platform.

“The business earns and benefits commercially from the purchase made by consumers on its platform. Therefore, the business cannot dissociate itself from its role and responsibility in the event of problems arising from the sale of goods on its platform,” the order reads.

On March 14, the Ministry of Consumer Affairs informed that the Bureau of Indian Standards (BIS) had seized 1,032 pressure cookers and 936 headphones which were found to be without ISI branding and violated Quality Control Orders (QCOs).

The BRI conducted a search and seizure operation for violation of the QCO on helmets and pressure cookers.

The ministry also said the CCPA had issued 15 notices against e-commerce entities and sellers selling non-standard pressure cookers online.

The Authority also issued a safety notice warning consumers against buying household items such as the electric immersion water heater, sewing machine, cooking gas bottle, helmet and pressure cooker without valid ISI mark.

In exercise of powers under section 18(2)(j) of the Consumer Protection Act 2019, the CCPA has published the safety notice. Also in December, she published a notice.

Under the law, goods that violate mandatory standards are likely to be considered “defective”.

The safety advisories have been widely distributed among all states and UTs, industry associations, legal services authorities, consumer associations, and pulpits.

The CCPA has decided to take up cases involving the sale or offering for sale of goods that violate mandatory standards to prevent unfair commercial practices and to protect, promote and enforce the rights of consumers as a class.

Therefore, anyone found selling the household goods without complying with the mandatory standards and holding a valid license as prescribed by BRI will be liable for violation of consumer rights and unfair business practices and will be prosecuted. under the 2019 legislation.

Section 17 of the BIS Act of 2016 prohibits any person from manufacturing, importing, distributing, selling, renting, leasing, storing or exhibiting for sale any such goods or items which are in violation of the direction of compulsory use of the standard mark issued by the central government.

Anyone who contravenes the provisions of Article 17 will be liable to imprisonment for up to two years or a fine, the ministry said.

(With PTI entries)

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Posted: Sunday, March 27, 2022, 9:59 PM IST

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