On Tuesday, Amazon Seller Service told the Delhi High Court that it has no issues with unfair trading practices as it stopped offering the service as soon as it discovered the wrong pressure cooker manufacturer.
Amazon lawyers argued that the Consumer Protection Act provided a mechanism for investigating complaints, but in this case the procedure was not followed and penalties were imposed that were not justified by any provisions of the Act.
Amazon has taken to the Delhi High Court to challenge a Central Consumer Protection Authority (CCPA) ruling that imposed a 1 lakh fine on its e-commerce platform for allowing the sale of household pressure cookers that violate mandatory standards.
The CCPA has directed Amazon to notify all consumers of pressure cookers sold on its platform, to recall the pressure cookers and refund the price, and to submit a compliance report. The CCPA, led by Chief Commissioner Nidhi Khare, recently passed a ruling against e-commerce platform Amazon for violating consumer rights by allowing the sale of home pressure cookers in violation of mandatory standards.
Judge Yashwant Varma moved the case for further hearing on September 19 after CCPA lawyers took time to get directions on the matter.
Amazon admits it receives a “sales commission” on pressure cookers sold on its platform. The CCPA noted that while Amazon commercially benefits from the sale of every product listed on its e-commerce platform, it cannot disassociate itself if something goes wrong with a product sold through its platform.
The CCPA has directed Amazon to notify all consumers of the 2,265 pressure cookers sold on its platform, recall the pressure cookers and refund the price to consumers, and submit a compliance report within 45 days. The company was also sentenced to pay a fine of 50,000,000 rubles. 1,00,000 to allow the sale of pressure cookers on its platform, violating consumer rights.
The CCPA has initiated legal action against its e-commerce platform for selling household pressure cookers in violation of mandatory standards and has filed charges against Amazon, Flipkart, Paytm Mall, Shopclues and Snapdeal, as well as sellers registered on these platforms.
After reviewing the responses provided by the company, CCPA found that a total of 2,265 pressure cookers were sold through Amazon that did not meet mandatory standards, and that the total amount Amazon received from selling such pressure cookers through its platform was Rs. 6 14 825.41.
CCPA issued a similar fine and recall order for the defective pressure cooker at Paytm Mall, Paytm Mall complied with the instructions adopted by CCPA and paid a fine of Rs 1,00,000.
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Post time: Sep-19-2022