The Central Consumer Protection Authority has penalised Snapdeal for facilitating the sale of toys that did not comply with the mandatory Toys (Quality Control) Order, 2020 and Bureau of Indian Standards norms. The case is for consumer protection in e-commerce and for the enforcement of product safety standards in online marketplaces.
Penalty and Violation
The CCPA imposed a penalty of ₹5 lakh on Ace Vector Limited, which operates Snapdeal, for unfair trade practices and misleading advertisements. The authority found that non-compliant toys continued to be listed on the platform despite claims of delisting. It also noted that the platform earned fees from the sale of such products through identified sellers.
Key Findings of the Authority
- Several toy listings lacked the manufacturer’s name, address and BIS certification details.
- The platform relied on seller self-declarations instead of independent verification.
- The CCPA held that this approach was inadequate for preventing unsafe products from reaching consumers.
- The authority rejected the argument that a marketplace platform acts only like a passive shopping mall.
Legal and Regulatory Basis
Under the Consumer Protection Act, 2019, goods that fail to meet mandatory standards may be treated as defective. The Consumer Protection (E-commerce) Rules, 2020 prohibit unfair trade practices by e-commerce entities. The CCPA said that failure to comply with compulsory BIS standards amounts to misleading advertisement and unfair trade practice.
Directions to E-Commerce Platforms
The CCPA directed Snapdeal to ensure that no non-compliant BIS-standard toy is listed, hosted or advertised on its platform in future. It also asked the platform to display grievance officer details, contact numbers and email addresses prominently for consumer redressal. The order reinforces the duty of e-commerce entities to verify product safety and maintain transparent disclosures.
Last Modified: April 28, 2026