The Delhi High Court on Tuesday kept in abeyance an order of the Central Consumer Protection Authority (CCPA) which imposed a cost of Rs 1 lakh on e-commerce platform Amazon for selling sub-standard domestic pressure cookers.
However, Justice Yashwant Varma directed Amazon to deposit the penalty within one week and also to notify the 2,265 customers of the faulty pressure cookers.
Asking the CCPA to file its response in the matter, the court posted it for further hearing on November 16.
On August 4, the CCPA passed an order against Amazon for violation of consumer rights by allowing the sale of domestic pressure cookers on its e-commerce platform in violation of mandatory standards prescribed by the authority.
The CCPA had initiated suo moto action against e-commerce platforms for sale of domestic pressure cookers in violation of compulsory standards. It had issued notice to major e-commerce platforms including Amazon, Flipkart, Paytm Mall, Shopclues, and Snapdeal as well as to the sellers registered on these platforms.
After examination of the response submitted by the company, it was observed that a total 2,265 pressure cookers not conforming to mandatory standards were sold through Amazon, and the total fee earned by Amazon on sale of such pressure cookers through its platform was Rs 6,14,825.41.
"Amazon admitted that it earned 'sales commission' fee for the pressure cookers sold on its platform. It was observed by the CCPA that when Amazon earns commercially from each sale of the product listed on its e-commerce platform, it can not disassociate itself in case of issues arising from sale of products through its platform," the Consumer Affairs Ministry said in a statement.
In the order, the CCPA directed Amazon to notify all consumers of the 2,265 pressure cookers sold on its platform, recall the pressure cookers, reimburse their prices to the consumers, and submit a compliance report of the same within 45 days.
The company was also directed to pay a penalty of Rs 1,00,000 for violating rights of consumers.
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