Amazon Moves Delhi HC Challenging 1 Lakh Penalty Imposed By CCPA For Violating Mandatory Standards While Selling Pressure Cookers

Amazon Seller Services has moved the Delhi High Court challenging an order passed by Central Consumer Protection Authority (CCPA) imposing a penalty of rupees one lakh imposed on it for allowing sale of domestic pressure cookers in violation to mandatory standards on its e-commerce platform.

Justice Yashwant Varma has posted the matter for hearing on September 19, as the counsel appearing for CCPA sought time to seek instructions in the matter.

During the course of hearing today, Amazon's counsel argued that as soon as the e-commerce platform was put to notice about errant manufacturers, it discontinued the services with them, thereby stating that there was no question of any unfair trade fair practice on its part.

Stating that the Consumer Protection Act lays mechanism to be followed for conducting an enquiry on receiving a complaint, the counsel further argued thus:

"In this case it (procedure) has been completely given a go by apart from the fact that there is a penalty which is imposed which is not warranted by any provision of the Act. I am not quantum. I am only indicating the entire approach is entirely contradictory."

The CCPA had initiate suo-moto action against e-commerce platforms for sale of domestic pressure cookers in violation to compulsory standards.

The authority had then issued notices to Amazon, Flipkart, Paytm Mall, Shopclues and Snapdeal as well as to the sellers registered on these platforms.

CCPA observed that total 2,265 pressure cookers, which were not conforming to mandatory standards, were sold through Amazon.

The Authority claimed that the total fee earned by Amazon on sale of the said pressure cookers was Rs.6,14,825.41.

In the impugned order, CCPA had directed Amazon to notify all consumers of pressure cookers sold on its platform, recall the pressure cookers and reimburse their prices and also to submit a compliance report of the same.

Case Title: AMAZON SELLER SERVICES PVT LTD v. CENTRAL CONSUMER PROTECTION AUTHORITY