CCPA Sends Notices To 11 Ecommerce, Quick Commerce Companies

The Central Consumer Protection Authority (CCPA) has reportedly sent notices to 11 ecommerce and quick commerce companies, including Blinkit, Zepto, Meesho, among others, for flouting metrology norms.

The consumer watchdog sent the notices after taking cognisance of complaints related to alleged violations of the mandatory declaration rules under the Legal Metrology Act, CNBC TV18 reported.

Swiggy Instamart, MyGlamm, and Snapdeal are among the other companies which have received the notices.

The development comes days after it was reported that quick commerce and ecommerce companies are under the scanner of the CCPA for not displaying expiry and best before dates for the products being sold by them.

“Some sellers have placed products for human consumption where either the manufacturing date was missing, or the best before or expiry date was not mentioned. There were instances where products were sold without adhering to packaging or labelling norms. These are serious violations. We have asked these companies to respond to the notices,” the CNBC report quoted a source as saying.

In the past, ecommerce companies have faced many allegations from retailers about flouting norms, and the likes of Amazon and Flipkart are also under investigation by the Competition Commission of India (CCI). However, now quick commerce companies are facing intense scrutiny amid the increasing popularity of the segment.

Recently, the All India Consumer Products Distributors Federation (AICPDF) asked the CCI to investigate Swiggy Instamart, Zepto and Blinkit for alleged predatory pricing. Earlier this year, the distributors’ body also wrote to the department for promotion of industry and trade (DPIIT) seeking an investigation into the business practices of quick commerce players.

In April, the CCPA was also said to have asked the quick commerce players to prove their ‘10-minute’ delivery claims.

Despite this, the quick commerce segment is seeing rapid growth. This has not only drawn investors’ interest but also increased competition in the space. While Flipkart forayed into the quick commerce segment with the launch of ‘Flipkart Minutes’, BigBasket and JioMart are also looking to expand their presence in the space.