INR 77.9 Lakh Fine Imposed On Ecommerce Players In 21 Months: Govt

448 Notices Issued To Ecommerce Players, INR 77.9 Lakh Fine Imposed: Govt

SUMMARY

The authorities issued 448 notices to ecommerce platforms in the last 21 months for flouting declaration norms

Ecommerce platforms fined INR 77.9 Lakh in the form of compounding fees for non-compliance with norms

Ecommerce companies are legally bound to ensure that details such as MRP, net quantity, manufacture data, and other details are clearly displayed on the platform

The authorities issued 448 notices to ecommerce platforms in the last 21 months for flouting norms related to declaration of maximum retail price (MRP) and other packaging details, the government informed the Parliament on Wednesday (July 20).

As a result, the Department of Consumer Affairs slapped a fine of over INR 77.9 lakh on erring players in the form of compounding fees, Minister of State for Consumer Affairs, Food and Public Distribution Ashwini Kumar Choubey said in the Lok Sabha.

The ecommerce players were penalised for non-compliance with rules pertaining to mandatory display of seller details, name of manufacturer and country of origin on products sold on the platforms.

Giving a breakdown of the data, the MoS said that 38 notices were issued between October 16, 2020 and December 31, 2020, while 232 notices were served to ecommerce players between January 1, 2021 and December 31, 2021. 178 notices were sent out during the period between January 1, 2022 and July 11, 2022.

According to the Legal Metrology Act, 2009, ecommerce companies are bound by law to ensure that details such as MRP, net quantity, manufacture data, and other details are clearly displayed on the platform.

The action is part of a larger crackdown on ecommerce portals over non-compliance with norms. On July 21, executives of major Indian tech companies, including ecommerce major Flipkart, will appear before a Parliamentary panel over anti-competitive practices employed by big tech companies.

Earlier this month, the Central Consumer Protection Authority (CCPA) also warned ecommerce platforms against selling certain Ayurvedic, Siddha and Unani drugs without valid prescriptions. Prior to that, the Ministry of Consumer Affairs had directed major ecommerce players to pull out non-ISI marked products from their portals.

In May, the Centre also formed a committee to tackle the issue of fake reviews on ecommerce platforms.

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