The Central Consumer Protection Authority (CCPA) has removed 3,940 sellers of explosive substances from seven online platforms, including IndiaMART and Justdial, as of October 19. IndiaMART accounted for 3,092 of these listings, which involved substances like ammonium nitrate, gunpowder, and PETN. The regulator expects platforms to verify sellers’ licenses from the Petroleum and Explosives Safety Organisation (PESO) and buyers’ identities before transactions, according to medianama.com.
The CCPA’s action follows the Consumer Protection Act, 2019, the Consumer Protection (E-Commerce) Rules, 2020, and the Explosives Act, 1884, alongside the Ammonium Nitrate Rules, 2012. IndiaMART has challenged the CCPA’s show-cause notices in the Delhi High Court. The regulator has fined Dial4Trade and ExportersIndia a combined Rs 30 lakh for violations related to explosives listings. The CCPA treats platform responsibilities under e-commerce rules as distinct from safe harbour protections under Section 79 of the IT Act, medianama.com reported.
This enforcement highlights growing regulatory scrutiny over online marketplaces facilitating the sale of hazardous materials without proper licensing and verification. IndiaMART joins Flipkart and Meta in contesting CCPA penalties after the regulator rejected their safe harbour claims. The CCPA’s approach underscores the increasing emphasis on platform accountability under consumer protection laws, particularly for sensitive product categories like explosives, which require strict licensing under Indian law.
The Delhi High Court is currently hearing IndiaMART’s challenge to the CCPA’s notices. The CCPA’s fines and delisting actions represent a significant regulatory intervention affecting thousands of sellers across multiple platforms, reinforcing compliance requirements under the Explosives Act and related rules, medianama.com confirmed.