Centre Asks Ecommerce Platforms To Stop Selling Non-ISI Products

As the centre tightens its grip on ecommerce platforms, the ministry of consumer affairs has instructed major ecommerce players to pull out non-ISI marked products from their portals. 

The ministry has asked to withdraw all non-ISI marked, substandard or fake ISI marked items from ecommerce platforms, as per an ET Now report. Moreover, the instruction is especially applicable for items including pressure cookers and helmets.

To discuss the matter, the ministry held a meeting with ecommerce platforms such as Amazon, Flipkart, among others. 

The centre is planning to issue a roadmap to the platforms soon, although it has issued clear directions in the meeting itself. After the release of formal order, the ecommerce platforms will face stringent consequences and even financial penalties.

The Central Consumer Protection Authority (CCPA) imposed a fine of INR 1 Lakh each on Paytm Mall and Snapdeal in March for selling non-standard pressure cookers. In addition, the platforms were also asked to recall the sold items and reimburse the amount paid by the consumers.

While imposing the fine, CCPA cited the violation of consumer protection (e-commerce) rules. Under these rules, no ecommerce entity shall adopt any unfair trade practice whether in the course of business or its platform or otherwise.

The government is also working on curbing fake reviews on ecommerce platforms. Last month, the centre also formed a committee to tackle the issue of fake reviews on ecommerce platforms.

Representatives from ecommerce paltforms including the Advertising Standards Council of India (ASCI), the Confederation of Indian Industry (CII) and other stakeholders, are also a part of the committee.

In the last two years, the ecommerce platforms have become more mainstream as more people adopted online shopping habits due to the lockdown measures. While the ecommerce startups in India raised more than $27 Bn during 2014-2021, the industry is projected to touch a market size of $400 Bn by 2030, as per an Inc42 report.