The Central Consumer Protection Authority (CCPA) imposed a Rs 5 lakh penalty on Flipkart for allowing the sale of toys that did not meet mandatory Bureau of Indian Standards (BIS) requirements, according to medianama.com. The violation involved four sellers who sold 1,338 non-compliant toys after the Toys (Quality Control) Order, 2020, came into effect. Flipkart earned approximately Rs 1.43 lakh in fees from these sales, which generated about Rs 5.46 lakh in revenue for the sellers.
Flipkart argued that it was an intermediary protected under Section 79 of the Information Technology Act, 2000, which provides safe harbour protections. However, the CCPA rejected this defence, citing the Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020, which impose platform-level obligations independent of safe harbour provisions. The authority noted that non-compliant toys remained listed on Flipkart’s platform as late as December 2025, despite the company having actual knowledge of the violations.
This ruling highlights the increasing regulatory scrutiny on e-commerce platforms in India regarding product safety and compliance. The decision underscores that platforms cannot solely rely on IT Act safe harbour protections when consumer safety laws impose direct responsibilities. The case sets a precedent for stricter enforcement against marketplaces that facilitate the sale of non-compliant products, aligning with broader efforts to enhance consumer protection in the digital commerce sector.
The CCPA’s penalty against Flipkart follows the Toys (Quality Control) Order, 2020, which mandates BIS certification for toys sold in India. The authority’s enforcement action and rejection of Section 79 protection clarify the legal obligations of e-commerce platforms under consumer protection laws, marking a significant regulatory development in the oversight of online marketplaces.