The Central Consumer Protection Authority (CCPA) imposed a Rs 5 lakh penalty on Flipkart Internet Private Limited for facilitating the sale of toys that did not meet mandatory Bureau of Indian Standards (BIS) requirements. The penalty was announced after an investigation found that Flipkart allowed the sale of 1,338 non-compliant toys on its platform, generating Rs 5.46 lakh in seller revenue and Rs 1.43 lakh in fees for Flipkart, according to medianama.com.
The case relates to the Toys (Quality Control) Order, 2020, which mandated compliance with specified toy standards from January 1, 2021. The CCPA’s preliminary inquiry revealed that several toys sold on Flipkart did not conform to these standards. The detailed investigation found listings indicating China as the country of origin, with no Chinese toy manufacturer having a BIS license since 2023, as per the Director General of BIS. Flipkart contested the findings, claiming intermediary protection under Section 79 of the Information Technology Act, 2000.
This penalty highlights enforcement of quality standards in the e-commerce sector, particularly concerning imported toys. The ruling challenges the extent of intermediary liability for product compliance on online marketplaces. The Rs 5 lakh fine adds to regulatory actions aimed at ensuring consumer safety and adherence to BIS norms, which have been mandatory for toys sold in India since 2021. The case underscores ongoing scrutiny of e-commerce platforms facilitating sales of non-compliant products.
The CCPA’s order and investigation report are publicly accessible, marking a significant enforcement action under the Toys (Quality Control) Order, 2020. Flipkart’s penalty is among the first notable fines under this regulation, emphasizing the regulator’s commitment to consumer protection in online retail.