The Central Consumer Protection Authority (CCPA) fined B2B marketplace Dial4Trade Technologies Pvt Ltd Rs 10 lakh on September 1 for listing ammonium nitrate without verifying sellers’ licences or buyers’ authorisation, according to medianama.com. The CCPA rejected Dial4Trade’s defence under Section 79 of the Information Technology Act, citing inadequate due diligence for regulated products.
The CCPA investigation found that Dial4Trade displayed listings with prices, packaging details, and a “Contact Supplier/Send Inquiry” option, alongside images depicting explosions and blast effects. The authority noted the platform failed to verify valid PESO licences for sellers, confirm buyers’ authorisation to purchase ammonium nitrate, ensure transaction traceability, or provide warnings about licensing requirements and legal penalties. The order was issued by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra after probing online platforms listing hazardous chemicals and explosives.
The ruling highlights regulatory scrutiny over online marketplaces facilitating sales of hazardous substances without proper checks. Ammonium nitrate is a highly regulated chemical due to its explosive potential, and the CCPA’s action underscores the need for platforms to implement strict compliance measures. This case sets a precedent for enforcement against intermediaries that do not exercise adequate control over listings of dangerous products, aligning with broader consumer protection and public safety goals.
The CCPA’s order dated September 1 explicitly rejects the intermediary safe harbour defence under Section 79 of the IT Act for Dial4Trade, marking a clear stance on accountability. The authority’s investigation and penalty serve as a warning to other online marketplaces regarding the sale of regulated chemicals without proper licensing and buyer verification.