CCPA cracks the whip, puts Amazon, Flipkart, Paytm Mall, Snapdeal on notice

Central Consumer Protection Authority issues notice to e-commerce entities offering for sale pressure cookers in violation of compulsory BIS Standards.

New Delhi:As part of celebrations of 75 years of Independence - ‘Azadi ka Amrit Mahotsav’, the Central Consumer Protection Authority (CCPA) has initiated a country-wide campaign to prevent sale of spurious and counterfeit goods that violate Quality Control Orders published by the Central Government.

In this regard, CCPA has already issued directions to District Collectors across the country to investigate unfair trade practices and violation of consumer rights concerning manufacture or sale of such goods. Essential, daily use products which have been identified for the campaign are helmets, pressure cooker and cooking gas cylinders.

In furtherance to the campaign, CCPA has taken suo-moto cognizance against e-commerce entities found to be selling Pressure Cookers in violation to the Domestic Pressure Cooker (Quality Control) Order, 2020 issued by the Central Government under Section 16 (1) of the BIS Act, 2016 on 21st January 2020. By the said Order, Domestic Pressure Cooker are mandated to conform to Indian Standard IS 2347: 2017 and bear the standard mark under a license from BIS with effect from 1st August 2020.

Under Section 2(10) the Consumer Protection Act, 2019, "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression "defective" shall be construed accordingly.

Thus, Pressure Cookers which do not conform to the compulsory standards are liable to held ‘defective’ under the Act.

Also, ‘unfair trade practice’ defined under Section 2(47) of the Act means and includes promoting the sale, use or supply of any goods by adopting any unfair method or unfair or deceptive practice by permitting the sale or supply of goods intended to be used, or are of a kind likely to be used by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by the competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods.

Rule 4(2) of the Consumer Protection (E-commerce) Rules, 2020 specifies that no e-commerce entity shall adopt any unfair trade practice, whether the in course of business on its platform or otherwise.

Moreover, Section 17 of the BIS Act prohibits any person to manufacture, import, distribute, sell, hire, lease, store or exhibit for sale any such goods or article for which direction of compulsory use of Standard Mark has been published by the Central Government under Section 16(1).

Further, Section 29 (3) and (4), stipulate the penalty for contravention of Section 17 and designate it as a cognizable offence.

CCPA has sought response from the e-commerce entities within 7 days from issuance of notice, failing which necessary action may be initiated against them under the provisions of the Consumer Protection Act, 2019.

CCPA has also written to DG BIS to take immediate cognizance of the matter and take necessary action.