Faulty Pressure Cookers: Delhi High Court Keeps In Abeyance CCPA's Order Asking Amazon To Recall Items, Reimburse Customers

The Delhi High Court on Tuesday kept in abeyance an order passed by Central Consumer Protection Authority (CCPA) asking Amazon to recall the domestic pressure cookers that allegedly did not meet the mandatory standards and reimburse the costumers. 

Hearing an appeal preferred by Amazon against the CCPA order, Justice Yashwant Varma, however, also asked Amazon to deposit the penalty of Rs. 1 lakh imposed on it by the authority within a period of one week and also notify the customers about the pressure cookers in question.

While posting the matter for hearing on November 16, the Court asked CCPA to file its reply in the plea.

The CCPA had initiated suo-moto action against e-commerce platforms for allowing sale of domestic pressure cookers, that did not meet compulsory standards. The authority had issued notices in this regard to Amazon, Flipkart, Paytm Mall, Shopclues and Snapdeal as well as to the sellers registered on these platforms.

CCPA in the impugned order said that total 2,265 pressure cookers, which were not conforming to mandatory standards, were sold through Amazon. 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.

During the course of hearing today, Senior Advocate Rajiv Nayar appearing for the e-commerce platform referred to the power of CCPA to refer a matter for investigation under Section 19 of the Consumer Protection Act.

He said that under the provision, the dual conditions of rendering a prima facie finding of violation of consumer rights and investigation to be made by the Director General or by the District Collector, has to be satisfied.

"What is the investigation in this case? Even if it is seen from a narrow meaning….there has to be a report of investigation," Nayar argued.

On the other hand, Advocate Apoorv Kurup appearing for CCPA submitted that after an investigation was conducted by authority's investigative wing, a report was prepared. He added that even before performing search and seizure operations, statements were recorded from manufacturers saying that many of the products were not complying to BIS standards.

"Investigation report is only confirming our apprehension that the products are not ISI mark. It is not adding anything more," Kurup said.

Yesterday, Amazon argued there was no investigation or enquiry and therefore the CCPA could not have rendered a finding that the products were non compliant to Bureau of Indian Standards (BIS). 

Nayar had submitted that proper procedure under Sec 20 of the Consumer Protection Act has not been followed in the case.

Section 20 states that where the CCPA is satisfied, on the basis of investigation, that there is sufficient evidence to show violation of consumer rights or unfair trade practice, it may pass an order for recalling of goods or withdrawal of services; reimbursement of the prices of goods or services and discontinuation of practices which are unfair and prejudicial to consumers' interest.

Senior Advocate Rajiv Nayar appeared for Amazon whereas Advocates Apoorv Kurup and Aparna Arun appeared for CCPA.

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