The Central Consumer Protection Authority (CCPA) has penalized Snapdeal with a Rs 5 lakh fine for selling toys that do not comply with Bureau of Indian Standards (BIS) regulations. This action was taken due to the sale of non-BIS compliant toys on Snapdeal’s platform, which violated consumer rights. The CCPA’s penalty was imposed on Snapdeal for engaging in unfair trade practices and misleading advertisements by allowing the sale of such toys.
The CCPA, under the leadership of Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, issued a final order against Snapdeal for its involvement in facilitating the sale of non-BIS compliant toys. Snapdeal reportedly earned fees totaling Rs 41,032 from the sale of these non-compliant toys through two identified sellers, namely Stallion Trading Company and Thriftkart. The regulator highlighted that many listings lacked crucial information like the manufacturer’s details, address, and mandatory BIS certification numbers.
Snapdeal defended itself by claiming to be a ‘marketplace e-commerce entity’ similar to a physical shopping mall. However, the CCPA rejected this argument, emphasizing that Snapdeal exercises significant control over transactions by organizing platform-wide promotional sales and providing quality assurances on products. The watchdog stressed that the platform is responsible for ensuring that all listed products meet safety and quality standards, such as BIS certification for toys.
When questioned about guaranteeing the sale of BIS compliant toys in the future, Snapdeal failed to provide a categorical undertaking that non-compliant toys would not reappear on its platform. The CCPA had previously issued notices to various e-commerce entities and sellers, including Amazon, Flipkart, Snapdeal, Stallion Trading Company, and Electronics Bazar Store, for selling toys that violated quality control and BIS standards.
