Snapdeal fined ₹5 lakh by CCPA for sale of non-BIS standard toys

The Central Consumer Protection Authority (CCPA) has fined Snapdeal ₹5 lakh for selling toys that violate mandatory BIS standards. The action was taken for unfair trade practices, misleading ads, and failure to ensure product safety on its platform.

The Central Consumer Protection Authority (CCPA) has taken strict action against e-commerce entities and sellers for the sale of toys in violation of the mandatory Toys (Quality Control) Order, 2020 and prescribed Bureau of Indian Standards (BIS) standards.

In this regard, the CCPA has imposed a penalty of ₹5,00,000 (Rupees Five Lakh) on Snapdeal (Ace Vector Limited) for engaging in unfair trade practices and misleading advertisements by facilitating the sale of non-BIS compliant toys on its platform, in violation of consumer rights. The Central Consumer Protection Authority (CCPA), led by Chief Commissioner Mrs Nidhi Khare and Commissioner Mr. Anupam Mishra, has issued a final order against Snapdeal (Ace Vector Limited) for the sale of toys that fail to conform to mandatory BIS Standards.

Investigation Reveals Critical Lapses

The CCPA took suo-moto cognisance of the matter, discovering that toys were being sold on Snapdeal in violation of the Toys (Quality Control) Order, 2020, which became mandatory on 01st January, 2021. A detailed investigation revealed several critical lapses: Continued Non-Compliance: Despite claims of delisting, non-compliant toys remained available on the platform as recently as December 2025. Commercial Benefit from the products sold: Snapdeal earned fees amounting to ₹41,032 from the sale of these non-compliant toys through just two identified sellers: Stallion Trading Company and Thriftkart. Lack of Transparency: Many listings lacked essential information, such as the manufacturer's name, address, and mandatory BIS certification numbers. Inadequate Due Diligence: The platform relied solely on seller self-declarations without independent verification, which the CCPA deemed "inadequate" for preventing the listing of hazardous products.

Snapdeal's 'Marketplace' Defence Rejected

Snapdeal took its defence as it acts as a "marketplace e-commerce entity" similar to a physical shopping mall. The CCPA categorically rejected this analogy, noting that Snapdeal exerts "substantial control" over transactions by: Managing platform-wide promotional sales like "Toofan Sale" and "Deal of the Day". Tagging products with quality assurances such as "great quality at best price," which acts as a false guarantee when applied to non-compliant BIS standard goods

From Caveat Emptor to Caveat Venditor

The CCPA observed that the shift from caveat emptor (let the buyer beware) to caveat venditor (let the seller beware) places the burden of ensuring product safety squarely on both the seller and the facilitating platform. Consequently, the onus is on the platform to ensure that every listed product meets the safety and quality standards, such as the BIS certification for toys, and it remains vicariously liable for any deficiency in service or defect in goods that reach the consumers through its portal.

Failure to Guarantee Future Compliance

The CCPA further noted that when enquired about providing a guarantee for the sale of BIS compliant toys on its platform in future, the opposite party failed to provide a guarantee or categorical undertaking that, henceforth, listings or exhibition of non-BIS complaint toys would not reappear on the platform.

Broader Action Against E-commerce Platforms

The Central Consumer Protection Authority (CCPA) had issued notices to e-commerce entities and the sellers, such as Amazon, Flipkart and Snapdeal, Stallion Trading Company, electronics bazar store, etc., for the sale of toys in violation of QCO and BIS standards directed for compulsory use by the Central Government.

Legal Basis for Action

Section 2(10) the Consumer Protection Act, 2019, "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression "defective" shall be construed accordingly. Thus, toys which do not conform to the compulsory standards are liable to be held 'defective' under the Act.

Failure to comply with these standards constitutes misleading advertisement and unfair trade practice under the Consumer Protection Act, 2019. The Consumer Protection (E-commerce) Rules, 2020 stipulate that no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

Penalty and Directives Issued

The Authority has imposed a penalty of ₹5,00,000 for engaging in unfair trade practices and misleading advertisements. The authority has also directed Snapdeal to: Ensure Future Compliance: Guarantee that no non-compliant BIS standard toy is listed, hosted, or advertised on its platform in the future. Prominently display contact numbers, email addresses, and Grievance Officer Details to facilitate prompt consumer redressal.

CCPA Reaffirms Commitment

The Authority reaffirmed its commitment to protecting consumer rights, preventing unfair trade practices and ensuring a safe and transparent digital marketplace, and urged all e-commerce platforms to exercise strict regulatory verification and accurate disclosures. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)