Amazon right this moment approached the Delhi High Court difficult an order of the Central Consumer Protection Authority or CCPA imposing a penalty of Rs 1 lakh for promoting home strain cookers that didn’t meet high quality requirements.
The plea got here up earlier than Justice Yashwant Varma who was informed by CCPA counsel that she wants time to take directions from the division on the matter.
The excessive court docket listed the matter for additional listening to on September 19 to allow the counsel to get directions.
In August, CCPA imposed Rs one lakh penalty on Amazon for promoting strain cookers that didn’t meet high quality requirements and likewise directed the corporate to inform the customers of all these 2,265 strain cookers bought via its platform, recall the merchandise, and reimburse the costs to consumers.
The Department of Consumer Affairs, in its assertion, had mentioned that the authority handed the order towards Amazon for permitting the sale of home strain cookers, in violation of obligatory requirements, on its platform.
During the listening to, Amazon’s counsel submitted that as per the related provision below the Consumer Protection Act, the scheme is that if there’s a prima facie discovering, the matter must be referred for investigation, and based mostly on the investigation, an order must be handed.
“In this case, it has been completely given a go-by apart from the fact that there is a penalty which is imposed and which is not warranted by any provision of the Act,” the counsel mentioned.
Giving an instance, the lawyer mentioned, “Supposing there is a mall and somebody is selling spurious apples, are you going to haul up the landlord?” The CCPA had initiated suo-motu motion towards e-commerce platforms for the sale of home strain cookers in violation of obligatory requirements and it had issued notices to main e-commerce platforms, together with Amazon, Flipkart, Paytm Mall, ShopClues, and Snapdeal in addition to the sellers registered on these platforms, the assertion had mentioned.
(*1*) it had mentioned.
The assertion mentioned that Amazon admitted it earned a ‘gross sales fee’ charge for the strain cookers bought on its platform.
The CCPA noticed that when Amazon earns commercially from every sale of the product listed on its e-commerce platform, it can’t disassociate itself in case of points arising from the sale of these things.
Amazon has been requested to submit a compliance report inside 45 days.
“The company was also directed to pay a penalty of Rs one lakh for allowing the sale of pressure cookers in violation to the QCO on its platform and violating rights of consumers,” the assertion had mentioned.
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