SUMMARY
CCPA has taken action against Amazon for the sale of sweets on Amazon’s ecommerce platform using the name 'Ram Mandir Ayodhya Prasad'
This move follows a complaint by CAIT, accusing Amazon of deceptive trade practices related to the sale of sweets under the guise of ‘Ram Mandir Ayodhya Prasad’
CCPA is reportedly working on making ecommerce companies such as Amazon and Flipkart liable for fraud committed by sellers on their platforms by attaching “fallback liability” to their role as intermediaries
The central consumer protection authority (CCPA) has slapped a notice on ecommerce major Amazon for selling sweets online under the name “Shri Ram Mandir Ayodhya Prasad”.
As per a statement by the ministry, the action has been initiated based on a representation made by the CAIT alleging that Amazon is engaging in deceptive trade practices involving the sale of sweets under the guise of ‘Shri Ram Mandir Ayodhya Prasad’.
Authorities examined samples of such brands, selling sweets such as ladoo and found the label ‘prasad’ from the Ram temple, Ayodhya, to be “misleading”.
In response to this an Amazon Spokesperson said, “We have received a communication from the CCPA regarding misleading product claims by certain seller(s) and investigating them for violations. In the interim, we are taking appropriate action against such listings as per our policies.”
It is pertinent to mention here that under Rule 4(3) of the consumer protection (ecommerce) rules, 2020, no ecommerce entity is permitted to engage in any unfair trade practices, whether on its platform or otherwise.
Additionally, as per the definition in Section 2(28) of the Consumer Protection Act, 2019, a ‘misleading advertisement’ refers to an advertisement that falsely describes a product or service, provides a false guarantee, or is likely to mislead consumers regarding the nature, substance, quantity, or quality of the product or service.
The CCPA has sought a response from the ecommerce giant within a week.
The consumer affairs ministry is reportedly working on making ecommerce companies such as Amazon and Flipkart liable for fraud committed by sellers on their platforms by attaching “fallback liability” to their role as intermediaries.
In March, CCPA issued orders against major ecommerce platforms including Amazon, Flipkart, Snapdeal, Shopclues, and Meesho for the sale of car seat belt alarm stopper clips, a violation of the Consumer Protection Act, 2019.
From time to time, CCPA has issued directions against sales of items that could impact buyers. For example, it issued notices to ecommerce majors in 2022 for selling corrosive acids online. Further, in 2023, the authority issued notices to ecommerce platforms Amazon, Flipkart, and Snapdeal for selling toys violating the country’s quality norms.
