CCPA Imposes Fine on Flipkart for Non-BIS Compliant Toy Sales
The Central Consumer Protection Authority (CCPA) has levied a ₹5 lakh fine on Flipkart, citing the e-commerce giant’s involvement in the sale of toys that did not meet the mandatory standards set by the Bureau of Indian Standards (BIS). Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra further instructed Flipkart to ensure that non-compliant toys are neither listed nor sold on its platform going forward.
The CCPA refuted Flipkart’s argument that it was merely acting as an intermediary connecting third-party sellers with consumers. The authority highlighted that Flipkart uses algorithms to tag products with labels such as “Flipkart Assured”, “Best Seller”, “Trending”, and “AD”. The CCPA stated, “When the platform uses algorithms to designate a product as ‘Flipkart Assured’, it stops being a neutral host.”
These labels, particularly “Flipkart Assured”, could mislead consumers into believing that the platform has verified the product’s safety and quality, the CCPA noted. By allowing non-compliant toys to be sold under these labels, Flipkart was providing a false assurance, according to the ruling.
Background of the Case
This case emerged from a suo motu investigation into the sale of toys on Flipkart that allegedly did not meet the standards outlined in the Toys (Quality Control) Order, 2020. Effective from January 1, 2021, this order mandates that toys for children below 14 years must adhere to specified safety standards and bear the BIS Standard Mark.
Flipkart revealed that four sellers had transacted 1,338 toys after the quality control order was enacted, generating approximately ₹5.45 lakh in revenue. Flipkart itself earned about ₹1.43 lakh in fees from these sales.
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An ensuing investigation discovered that toys lacking the required BIS certification remained on Flipkart’s platform until December 2025. The CCPA criticized the platform for not promptly removing or disabling access to these non-compliant products, despite being aware of the violations.
Flipkart’s Defense and CCPA’s Ruling
Flipkart contended that it neither manufactured nor directly sold the toys and did not physically possess them. The company invoked the safe-harbor protections for intermediaries under Section 79 of the Information Technology Act, 2000, maintaining that sellers were accountable for obtaining BIS certification. Flipkart also claimed that offending listings were removed when specific violations were reported.
However, the CCPA declared that Flipkart’s responsibilities under consumer law were determined by its operational role and the impact on consumers, rather than its self-portrayal. It concluded that Flipkart engaged in unfair trade practices and misleading advertisements. The company was also ordered to prominently display its contact information, including a contact number, email address, and details of its grievance officer, and submit a compliance report within 15 days.
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Flipkart was represented by Advocates Dheeraj Nair and Vrishtyui Sahni from JSA Advocates & Solicitors.
