CCPA imposes ₹1 lakh fine on Amazon for allowing sale of substandard pressure cookers

BL New Delhi Bureau | | Updated on: Aug 04, 2022
The pressure cookers sold were of substandard quality

The pressure cookers sold were of substandard quality

CCPA asks Amazon to recall 2265 pressure cookers and reimburse consumers

The Central Consumer Protection Authority (CCPA) on Thursday said, it has passed an order directing e-commerce major Amazon to pay a penalty of ₹1 lakh for allowing sale of pressure cookers that did not meet country’s quality norms on its platform. It has also directed Amazon to notify all consumers of the 2,265 pressure cookers sold on its platform, recall the pressure cookers and reimburse their prices to the consumers.

Amazon has been asked to submit a compliance report on the same within 45 days.

Violation of consumer rights

“The Central Consumer Protection Authority, headed by Chief Commissioner Nidhi Khare, recently passed order against violation of consumer rights by Amazon e-commerce platform for allowing sale of domestic pressure cookers in violation to mandatory standards on its e-commerce platform,” the official statement added.

As per the quality control order, pressure cookers must have valid ISI mark and comply with compulsory BIS standards. The Authority had initiated suo-motu action against e-commerce platforms for sale of domestic pressure cookers in violation of compulsory standards. It had issued notices to major e-commerce platforms including Amazon, Flipkart, Paytm Mall, Shopclues ad Snapdeal and the registered sellers on these platforms.

Not meeting standards

“After examination of the response submitted by the company, it was observed that total 2,265 pressure cookers not conforming to mandatory standards were sold through Amazon after notification of the Quality Control Order. The total fee earned by the Amazon on sale of such pressure cookers through its platform was ₹6,14,825.41,” it said in a statement.

It added, Amazon “admitted that it earned ‘sales commission’ fee” for the pressure cookers sold on its platform. Therefore the authority observed that,”when Amazon earns commercially from each sale of the product listed on its e-commerce platform, it cannot disassociate itself in case of issues arising from sale of products through its platform.”

CCPA had passed a similar order against Paytm Mall, which complied with direction and deposited the penalty of ₹1 lakh.

Recently, CCPA has also issued Safety Notices under Section 18(2)(j) of the Act to alert and caution consumers against buying goods which do not hold valid ISI Mark and violate compulsory BIS standards. The first Safety Notice was issued with regard to helmets, pressure cookers and cooking gas cylinders. The second safety notice has been issued with regard to household goods including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG among others.

Published on August 04, 2022
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