CCPA fines Amazon Rs 1 lakh for selling sub-standard pressure cookers

CCPA had issued notices to major e-commerce platforms including Amazon, Flipkart, Paytm Mall, Shopclues, and Snapdeal as well as to the sellers registered on these platforms in connection with the sale of poor-quality pressure cookers.

Recently, the consumer rights watchdog issued Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements. The guidelines include conditions for valid and non-misleading advertisements, due diligence required for endorsement of advertisements and considerations for advertisements targeted at children. 

It had issued Safety Notices under Section 18(2)(j) of the Act to alert and caution consumers against buying goods that do not hold valid ISI Mark and violate compulsory BIS standards.

While the first Safety Notice was issued with regard to Helmets, Pressure Cookers and Cooking gas cylinders, the second Safety Notice was issued with regard to household goods including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG etc.

"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 QCO. The total fee earned by the Amazon on sale of such pressure cookers through its platform was Rs.6,14,825.41," the Ministry of Consumer Affairs said in a statement.

Amazon admitted that it earned ‘sales commission’ fee for the pressure cookers sold on its platform, the statement said.

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 observed.

"In the order, CCPA 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 and submit a compliance report of the same within 45 days," the statement added.

Amazon was also directed to pay a penalty of Rs 1,00,000 for allowing the sale of pressure cookers in violation of the QCO on its platform and violating the rights of consumers.

It may be mentioned that CCPA had passed similar order of penalty and recall of defective pressure cookers against Paytm Mall, which has since complied with the direction passed by CCPA and deposited the penalty of Rs1,00,000, the  Ministry of Consumer Affairs stated