Amazon fined ₹1L for selling sweets as Ram Mandir prasad
What's the story
The Central Consumer Protection Authority (CCPA) has slapped a fine of ₹1 lakh on Amazon Seller Services. The penalty comes after the e-commerce giant was found allowing ordinary sweets to be listed on its platform as "Shri Ram Mandir Ayodhya Prasad" without authorization from the Ram Mandir Trust. The CCPA said these listings violated the Consumer Protection (E-Commerce) Rules, 2020.
Regulatory action
Action based on complaint by CAIT
The CCPA's order, issued on August 4, also directed Amazon to ensure that products claiming to be religious offerings associated with specific temples are not listed or sold without documentary proof of authorization.
The action came after a complaint by the Confederation of All India Traders (CAIT) filed in January this year.
Amazon removed the listings after receiving a notice from CCPA.
Legal debate
CCPA rejected Amazon's argument
Amazon had argued that it was only an intermediary and entitled to safe harbor protection under Section 79 of the Information Technology Act.
However, the CCPA rejected this argument, saying the IT Act and e-commerce rules operate separately.
It held that Amazon's consumer protection responsibilities, such as seller disclosure and due diligence, cannot be avoided by relying on its intermediary status or contractual arrangements with sellers.
Disclosure issues
Shortcomings in seller information disclosure
The regulator also found shortcomings in Amazon's disclosure of seller information.
The CCPA said the platform did not adequately display seller details as required under the e-commerce rules.
It also found that Amazon's grievance redressal mechanism required users to log in, which did not meet the requirement for clear and accessible disclosure.
Consumer protection
Commercial exploitation of religious sentiments
The CCPA said the term "Shri Ram Mandir Ayodhya Prasad" has a particular connotation for Hindu devotees and refers to sacred food offered to and blessed by the deity at the Ram Mandir in Ayodhya.
It added that the commercial appropriation of this term for ordinary confectionery products, without any authorization from the Ram Mandir Trust, constitutes not just a misleading trade practice under CP Act but an affront to religious sentiments of crores of consumers.