New Delhi, Feb 16 The Central Consumer Protection Authority (CCPA) on Monday imposed a penalty of Rs 5 lakh on Snapdeal for the sale of non-BIS compliant toys on its platform, in violation of consumer rights.
The regulator said it has taken strict action against e-commerce entities and sellers for the sale of toys in violation of the mandatory Toys (Quality Control) Order, 2020 and prescribed Bureau of Indian Standards (BIS) standards.
In this regard, the CCPA imposed the penalty on Snapdeal (Ace Vector Limited) “for engaging in unfair trade practices and misleading advertisements by facilitating the sale of non-BIS compliant toys on its platform”.
The CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, issued a final order against Snapdeal, according to a statement by Ministry of Consumer Affairs.
According to the regulator, Snapdeal earned fees amounting to Rs 41,032 from the sale of these non-compliant toys through just two identified sellers: Stallion Trading Company and Thriftkart.
Many listings lacked essential information, such as the manufacturer's name, address, and mandatory BIS certification numbers. The platform relied solely on seller self-declarations without independent verification, which the CCPA deemed ‘inadequate’ for preventing the listing of hazardous products.
“Snapdeal took its defence as it acts as a ‘marketplace e-commerce entity’ similar to a physical shopping mall,” said the CCPA.
The agency categorically rejected this analogy, noting that Snapdeal exerts "substantial control" over transactions by managing platform-wide promotional sales like "Toofan Sale" and "Deal of the Day", and tagging products with quality assurances such as "great quality at best price," which acts as a false guarantee when applied to non-compliant BIS standard goods.
“The onus is on the platform to ensure that every listed product meets the safety and quality standards such as the BIS certification for toys and it remains vicariously liable for any deficiency in service or defect in goods that reach the consumers through its portal,” said the watchdog.
The CCPA further noted that when enquired about providing a guarantee for sale of BIS compliant toys on its platform in future, the opposite party failed to provide a guarantee or categorical undertaking that henceforth listings or exhibition of non-BIS complaint toys would not reappear on the platform.
The CCPA had issued notices to e-commerce entities and the sellers such as Amazon, Flipkart and Snapdeal, stallion trading company, electronics bazar store etc. for sale of toys in violation to QCO and BIS standards directed for compulsory use by the Central Government.
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