NEW DELHI: The two recent orders by the nation consumer protection watchdog, CCCPA, slapping penalty and directing e-commerce majors Amazon and Paytm Mall to recall and refund payment for faulty and non-standard items such as pressure cookers has set a new norm. Officials said these orders will prove to be a deterrent and make companies follow rules.
In case of both the companies, the Central Consumer Protection Authority (CCPA) slapped fine of Rs 1 lakh each on these e-commerce platforms for selling non-ISI or BIS certified pressure cookers on their online platforms.
In the latest order against Amazon, the CCPA directed the company to notify consumers of all 2,265 such pressure cookers, recall and reimburse the amount paid by them. The CCPA chief commissioner, Nidhi Khare has directed the company to submit a compliance report in 45 days.
Manufacturing, storing and sale of more than 450 items, including pressure cookers, helmets, gas cylinders, geysers and toys without obtaining the ISI standard mark is illegal under the law. The government brought all such items under the Quality Control Order (QCO) to ensure that no manufacturing or sale of non-standard items takes place. Earlier, Paytm Mall was also directed to recall 39 such pressure cookers sold on its platform and to reimburse the price to consumers. The company had complied with the order.
In a statement, the CCPA said, the total fee earned by Amazon on sale of 2,265 pressure cookers through its platform was around Rs 6.15 lakh. It said , “Amazon admitted that it earned ‘sales commission’ fee for the pressure cookers sold on its platform. It was observed by CCPA that 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.”
The CCPA had initiated suo-moto action against e-commerce platforms for sale of domestic pressure cookers in violation of compulsory standards on its e-commerce platforms and Flipkart, Shopclues and Snapdeal as well as to the sellers registered on these platforms for such violations.