CCPA Acts Against 7 E-commerce Platforms Over Explosives Listings

CCPA Acts Against 7 E-commerce Platforms Over Explosives Listings

The Central Consumer Protection Authority (CCPA) has taken regulatory action against seven e-commerce platforms, including IndiaMART and Justdial, over listings and sales of unauthorised hazardous explosives.

The materials listed on these platforms included ammonium nitrate, gun powder, picric acid and pentaerythritol tetranitrate (PETN). Except for ammonium nitrate, all the chemicals mentioned are exclusively used in the manufacture of explosives.

The action has led to the delisting of 3,940 sellers and listing entries. The authority has also imposed penalties totalling Rs 30 lakh on Dial4Trade and ExportersIndia, the Ministry of Consumer Affairs, Food and Public Distribution said in a statement.

IndiaMART and Justdial Face Regulatory Action

According to the ministry, IndiaMART accounted for the highest number of affected sellers and listings, at 3,092. ExportersIndia followed with 421, Justdial with 206 and TradeIndia with 166.

Other platforms facing regulatory action include Dial4Trade, Sigma-Aldrich India and Ibuychemikals.

The CCPA said it had issued notices to IndiaMART and Justdial over the listings. Following the notices, the Director General – Investigation examined the matter and shared the investigation reports with the companies.

IndiaMART submitted its reply to the investigation report and subsequently approached the Delhi High Court to challenge the show-cause notice (SCN) issued by the CCPA.

Justdial has sought adjournments in the matter and is yet to respond to the investigation. The next and final hearing is scheduled for October 23.

CCPA Imposes Rs 30 Lakh in Penalties

The CCPA imposed a penalty of Rs 10 lakh on Dial4Trade for facilitating the sale of ammonium nitrate.

ExportersIndia was fined Rs 10 lakh in two separate cases. One involved ammonium nitrate and pentaerythritol tetranitrate (PETN), while the other concerned picric acid.

The CCPA’s action covers both marketplaces that host third-party sellers and platforms that sell products directly.

Sigma-Aldrich Chemicals and Ibuychemikals informed the authority that they sell their own products and do not host third-party sellers. Investigations into TradeIndia, Sigma-Aldrich Chemicals and Ibuychemikals are ongoing.

Dial4Trade and ExportersIndia Challenge Orders

Dial4Trade challenged the CCPA’s order before the National Consumer Disputes Redressal Commission (NCDRC). The commission dismissed its appeal on October 9, holding that the listings amounted to misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019.

ExportersIndia has also appealed against the CCPA’s orders before the NCDRC. Its appeals are expected to be listed for hearing in the coming period.

Licensing Requirements for Explosives

Under the Explosives Act, 1884, the sale and purchase of the substances require prescribed licences.

The CCPA expects online platforms to ensure that sellers display valid licences issued by the Petroleum and Explosives Safety Organisation (PESO). Platforms are also expected to verify buyers’ identities and licence status before permitting purchases.

Consumers can report listings of explosives on online platforms through the national consumer helpline at 1915.

The Ministry of Consumer Affairs, Food and Public Distribution said the action reinforces the government’s commitment to preventing digital marketplaces from facilitating unauthorised access to regulated or dangerous substances in violation of applicable laws and consumer safety standards.

FAQs

1. Why has the CCPA taken action against e-commerce platforms?

The CCPA has taken regulatory action over listings and sales of unauthorised hazardous explosives on seven e-commerce platforms.

2. Which chemicals were listed on the platforms?

The materials included ammonium nitrate, gun powder, picric acid and pentaerythritol tetranitrate (PETN).

3. How many sellers and listings have been delisted?

A total of 3,940 sellers and listing entries have been delisted.

4. Which platforms have been fined by the CCPA?

The CCPA imposed penalties totalling Rs 30 lakh on Dial4Trade and ExportersIndia.

5. How can consumers report listings of explosives?

Consumers can report such listings through the national consumer helpline at 1915.

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