E-commerce website fined Rs 5 lakh for ‘toying’ around with unsafe listings

Bengaluru: The Central Consumer Protection Authority (CCPA) on Feb 13 imposed a penalty of Rs 5 lakh on e-commerce platform Snapdeal for facilitating the sale of toys without mandatory quality certification.The action followed the CCPA taking suo motu cognisance against Snapdeal (Ace Vector Limited) for the sale of toys on its platform that did not conform to the Bureau of Indian Standards (BIS) norms under the Toys (Quality Control) Order, 2020. The authority noted that the sale of such toys can be hazardous and may cause injury or harm to consumers.
Exercising its powers under the Consumer Protection Act, 2019, CCPA conducted a preliminary inquiry. It found that despite the Quality Control Order (QCO), 2020 coming into effect on Jan 1, 2021, the platform had failed to exercise due diligence. It also observed that sellers' contact details, including address, phone number and email ID, were not visible on the platform. As per BIS, toys that do not conform to compulsory standards are liable to be treated as defective.In its defence, Snapdeal stated that it operates as an "intermediary" and a "marketplace e-commerce entity", providing a digital platform to facilitate transactions between independent third-party sellers and buyers. It argued that under the Information Technology Act, an intermediary is not liable for third-party information or content hosted on its platform. Snapdeal submitted that all activities related to listing and sale are carried out by independent sellers, who are responsible for uploading product listings. It said it does not handle physical products, does not take possession of goods, and does not hold legal title to inventory sold by third-party sellers. Deliveries, it added, are handled by independent logistics providers with no corporate relationship with the company.However, CCPA found that Snapdeal hosted a numer of sellers with inaccurate or unverifiable addresses, hindering regulatory oversight. It also noted that the company earned Rs 41,032 in fees from the sale of non-compliant toys, indicating commercial benefit from products sold in violation of quality standards.The consumer authority further observed that toys without the BIS mark continued to be listed, advertised, and offered for sale on the platform as recently as Dec 2025. It held that this could mislead consumers by creating a false impression of quality and safety. Misleading advertisementsCCPA stated that after promoting products through labels such as "deal of the day" or "toofan sales" and describing them as high quality at competitive prices, the platform could not claim to be a neutral intermediary. Such representations, while selling non-compliant toys, amounted to misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019, the authority observed.A bench comprising chief commissioner Nidhi Khare and commissioner Anupam Mishra imposed the penalty of Rs 5 lakh and directed Snapdeal to ensure that no non-compliant toy is listed or sold on its platform without full compliance and mandatory disclosures. It also directed the company to prominently display its contact number, email address, and the details of its grievance officer.