Action Under Toys Quality Control Order, 2020
New Delhi, February 16: The Central Consumer Protection Authority imposed a penalty of ₹5 lakh on Snapdeal on Monday for facilitating the sale of toys that did not comply with mandatory Bureau of Indian Standards certification requirements.The action was taken for violation of the Toys Quality Control Order, 2020 and prescribed BIS standards, which are mandatory for toys sold in India.
According to the Ministry of Consumer Affairs, the regulator issued a final order against Snapdeal, operated by Ace Vector Limited, for engaging in unfair trade practices and misleading advertisements by allowing non-BIS-compliant toys to be sold on its platform.
Findings of the Investigation
The authority, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, stated that Snapdeal earned ₹41,032 in fees from the sale of non-compliant toys through two identified sellers, Stallion Trading Company and Thriftkart.The investigation found that several product listings lacked essential details such as the manufacturer’s name, address, and mandatory BIS certification numbers. The platform relied solely on seller self-declarations without independent verification.
The regulator described this practice as inadequate and said it failed to prevent the listing of hazardous products.
Marketplace Argument Rejected
During proceedings, Snapdeal described itself as a marketplace e-commerce entity comparable to a physical shopping mall. The CCPA rejected this analogy.The authority noted that the platform exercises substantial control over transactions by conducting promotional sales such as Toofan Sale and Deal of the Day, and by tagging products with assurances like great quality at best price.
According to the regulator, such endorsements act as false guarantees when applied to goods that do not meet mandatory BIS standards.
Responsibility and Future Compliance
The watchdog emphasized that the responsibility lies with the platform to ensure that every listed product complies with safety and quality requirements, including BIS certification for toys. It added that the platform remains vicariously liable for deficiencies in service or defects in goods delivered to consumers through its portal.The CCPA further observed that when asked to provide a categorical undertaking to prevent the reappearance of non-BIS-compliant toy listings, the opposing party failed to provide such a guarantee.
Wider Regulatory Action
The authority has also issued notices to other e-commerce entities and sellers, including Amazon, Flipkart, Stallion Trading Company, and Electronics Bazar Store, in connection with the sale of toys that violated the Quality Control Order and BIS standards.The Toys Quality Control Order, 2020 mandates BIS certification for all toys sold in India, making compliance compulsory for manufacturers, sellers, and platforms facilitating such sales.
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