In re Flipkart Internet Private Limited (CCPA Delhi)
Summary: The Central Consumer Protection Authority (CCPA) took suo-moto cognizance of non-BIS-compliant toys listed on Flipkart and, after preliminary inquiry and detailed investigation, found that such toys continued to be listed, hosted, advertised and offered for sale despite the Toys (Quality Control) Order, 2020 coming into force on 01.01.2021. The Authority considered Sections 2(9), 2(10), 2(28), 2(47), 20 and 21 of the Consumer Protection Act, 2019, Section 17 of the Bureau of Indian Standards Act, 2016, the QCO, 2020, and the Consumer Protection (E-Commerce) Rules, 2020. Flipkart submitted that it was a marketplace intermediary protected under Section 79 of the Information Technology Act, 2000, with product-level compliance resting on sellers. The Authority rejected the intermediary argument, observing that Flipkart actively enabled listing, hosting, advertising, exhibiting, discovery and transactions and had earned Rs. 1,42,979.095 from the identified sales. It found unfair trade practice, misleading advertisement and violation of consumer rights, including through product tags and concealment of BIS-related information. The CCPA directed Flipkart to prevent future listing of non-compliant toys, prominently display grievance-related details and pay a penalty of Rs. 5,00,000 within 15 days along with a compliance report.
CCPA Proceedings and Flipkart’s Submissions
The CCPA initiated proceedings after a preliminary inquiry into the sale of toys that did not conform to mandatory BIS standards under the Toys (Quality Control) Order, 2020. A notice dated 10.01.2023 was issued to Flipkart concerning alleged violations of the Consumer Protection Act, 2019, the Consumer Protection (E-Commerce) Rules, 2020 and the QCO, 2020.
