Amazon has been slapped with a Rs 1 lakh penalty by the Central Consumer Protection Authority (CCPA) for selling pressure cookers that did not meet quality standards.
The authority, headed by Chief Commissioner Nidhi Khare, recently passed an order against Amazon for allowing sale of domestic pressure cookers, in violation of mandatory standards, on its e-commerce platform.
The authority had issued notices to major e-commerce platforms, including Amazon, Flipkart, Paytm Mall, ShopClues and Snapdeal as well as 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 after notification of the QCO (Quality Control Order). The total fee earned by Amazon on sale of such pressure cookers through its platform was Rs 6,14,825.41,” the order said. Amazon admitted that it earned ‘sales commission’ fee for the pressure cookers sold on its platform.
The CCPA observed 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 the sale of these items.
What does the order to Amazon say
In the order, CCPA has 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. Amazon has also been directed to pay a penalty for allowing the sale of pressure cookers in violation to the QCO on its platform and violating rights of consumers.
It may be mentioned that 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.
Recently, CCPA issued advisory to all e-commerce platforms with regard to sale of Ayurvedic, Siddha and Unani drugs containing ingredients as listed in Schedule E(1) of Drugs and Cosmetics Rules highlighting that sale or facilitation of sale of such drugs shall be done done only after a valid prescription of a registered medical practitioner is uploaded by the user on the platform.