CCPA Penalizes Amazon for Misleading Product Listings
The Central Consumer Protection Authority (CCPA) has imposed a fine of ₹1 lakh on Amazon Seller Services Private Limited. The penalty arises from the sale of ordinary sweets misrepresented as “Shri Ram Mandir Ayodhya Prasad” on its platform, without any authorization from the Ram Mandir Trust.
Implications of Misleading Advertising
The CCPA emphasized that the term ‘Shri Ram Mandir Ayodhya Prasad’ is typically understood by devotees as food consecrated at the Ayodhya Ram temple. The usage of this phrase for standard confectionery items, without the Shri Ram Janmabhoomi Teerth Kshetra Trust’s authorization, was deemed not only a deceptive trade practice under the Consumer Protection Act but also an affront to the religious sentiments of millions.
Amazon’s Liability and Safe Harbour Defense
The order, delivered by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, held Amazon accountable for publishing misleading advertisements. As the platform hosted, displayed, and facilitated the sale of these products, Amazon could not invoke the safe harbour protection generally available to intermediaries under Section 79 of the Information Technology Act. The complaint, initially filed by the Confederation of All India Traders in January 2024, prompted this action.
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Details of the Complaint
The case involved four types of sweets marketed by Chandu Trading Company under the Bihar Brothers brand. The products—ghee ladoos, khoya ladoos, boondi ladoos, and cow milk pedas—were listed with religious imagery and described as carrying “Blessings from Shree Ram Janam Bhumi Temple, Ayodhya.” The CCPA noted these listings appeared shortly before the Ram Mandir consecration ceremony on January 22, 2024. Although Amazon removed these listings after a show-cause notice on January 19, it argued its role as a passive marketplace intermediary.
CCPA’s Rejection of Amazon’s Defense
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The CCPA dismissed Amazon’s defense, clarifying that the Information Technology Act and Consumer Protection (E-Commerce) Rules, 2020, operate under distinct legal frameworks. The authority stated, “A marketplace entity cannot selectively invoke its intermediary status under the IT Act to escape consumer protection obligations while simultaneously deriving commercial benefits from transactions on its platform.”
Amazon’s Compliance Obligations
The CCPA found Amazon lacking in adequately displaying complete seller and grievance officer details. Access to this information through hyperlinks or requiring user logins was deemed insufficient. Amazon disclosed that sales from the disputed listings generated ₹39,802, with ₹15,165 as its service fee. Earlier reports of ₹25.26 lakh related to the seller’s total gross merchandise sales across all listings.
Future Directives for Amazon
The CCPA directed Amazon to ensure products claiming to be “prasad” or similar religious offerings are not listed without verifiable authorization. This directive applies to 10 religious institutions, including the Ram Janmabhoomi Mandir and Tirumala Tirupati Devasthanam. Additionally, Amazon must enhance its monitoring system and display seller and grievance officer details prominently.
The CCPA acknowledged Amazon’s cooperation as a mitigating factor but warned that future violations could result in stricter penalties. Amazon was represented by Advocates Saikrishna Rajagopal, Vivek Ayyagari, Mythili Girish, and Manas Raghuvanshi from Saikrishna & Associates.
