CCPA orders penalty on Amazon, recall of products

New Delhi, Aug 5

The Central Consumer Protection Authority has passed an order against violation of consumer rights by Amazon for allowing sale of domestic pressure cookers in violation of mandatory standards prescribed by it on its e-commerce platform.

The CCPA had recently initiated suo moto action against e-commerce platforms for sale of domestic pressure cookers in violation of compulsory standards on e-commerce platforms. It had issued notice to major e-commerce platforms including Amazon, Flipkart, Paytm Mall, Shopclues, and Snapdeal as well as to the sellers registered on these platforms.

After examination of the response submitted by the company, it was observed that a total 2,265 pressure cookers not conforming to mandatory standards were sold through Amazon. The total fee earned by Amazon on sale of such pressure cookers through its platform was Rs 6,14,825.41.

"Amazon admitted that it earned 'sales commission' fee for the pressure cookers sold on its platform. It was observed by the CCPA that when Amazon earns commercially from each sale of the product listed on its e-commerce platform, it can not disassociate itself in case of issues arising from sale of products through its platform," the Consumer Affairs Ministry said in a statement.

In the order, the CCPA directed Amazon to notify all consumers of the 2,265 pressure cookers sold on its platform, recall the pressure cookers, reimburse their prices to the consumers, and submit a compliance report of the same within 45 days.

The company was also directed to pay a penalty of Rs 1,00,000 for violating rights of consumers, said the ministry on Thursday.

Earlier, CCPA had passed a similar order of penalty and recall of defective pressure cookers against Paytm Mall, which has complied with direction passed by CCPA and deposited the penalty of Rs 1,00,000.