The ecommerce giant Amazon has received a notice from the Central Consumer Protection Authority (CCPA) for marketing sweets online using the name “Shri Ram Mandir Ayodhya Prasad.”
According to an official statement from the ministry, the measures have been taken in response to a complaint filed by the CAIT, claiming that Amazon is involved in misleading trade practices related to the sale of sweets disguised as ‘Shri Ram Mandir Ayodhya Prasad’.
Officials examined samples from these brands, selling sweets like ladoo, and found the label “prasad” from the Ram temple in Ayodhya to be “misleading.”
In response to this an Amazon Spokesperson said, “We have received a communication from the CCPA regarding misleading product claims by certain seller(s) and investigating them for violations. In the interim, we are taking appropriate action against such listings as per our policies.”
It is important to note that according to Rule 4(3) of the Consumer Protection (E-commerce) Rules, 2020, no e-commerce entity is allowed to participate in unfair trade practices, whether on its platform or elsewhere.
Furthermore, in accordance with the definition outlined in Section 2(28) of the Consumer Protection Act, 2019, a ‘misleading advertisement’ is characterized as an advertisement that inaccurately depicts a product or service, offers false guarantees, or has the potential to deceive consumers regarding the nature, substance, quantity, or quality of the product or service.
The ecommerce giant has been asked to provide a response to the CCPA within one week.
The Ministry of Consumer Affairs is said to be in the process of introducing a mechanism that holds ecommerce companies like Amazon and Flipkart responsible for fraud perpetrated by sellers on their platforms, incorporating “fallback liability” linked to their role as intermediaries.
In March, orders were issued by the CCPA against major ecommerce platforms, including Amazon, Flipkart, Snapdeal, Shopclues, and Meesho, due to their sale of car seat belt alarm stopper clips, a violation of the Consumer Protection Act, 2019.
Periodically, the CCPA has issued directives targeting the sale of items with potential impacts on buyers. In 2022, it issued notices to major ecommerce platforms for selling corrosive acids online. Additionally, in 2023, the authority served notices to Amazon, Flipkart, and Snapdeal for the sale of toys that violated the country’s quality norms.
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