CCPA Imposes Rs 1 Lakh Penalty On Amazon For Selling Sub-Standard Pressure Cookers

The CCPA asked Amazon to notify the buyers of all these 2,265 pressure cookers sold through its platform, recall the products and reimburse the prices to buyers

The Central Consumer Protection Authority (CCPA) has imposed a Rs 1-lakh penalty on US e-commerce giant Amazon for selling sub-standard pressure cookers, the PTI reported.

According to the report, the central consumer agency also asked Amazon to notify the buyers of all these 2,265 pressure cookers sold through its platform, recall the products and reimburse the prices to buyers.

Nidhi Khare, chief commissioner of CCPA, recently passed an order against Amazon for allowing sale of domestic pressure cookers, in violation of mandatory standards, on its e-commerce platform.

The CCPA had begun suo-motu action against e-commerce platforms for sale of domestic pressure cookers in violation of compulsory standards. The authority had issued notices to major e-commerce platforms, including Amazon, Flipkart, Paytm Mall, ShopClues, and Snapdeal as well as the sellers registered on these platforms.

“After examination of the response submitted by the company, it was observed that total 2,265 pressure cookers not conforming to mandatory standards were sold through Amazon after notification of the QCO (Quality Control Order). The total fee earned by the Amazon on sale of such pressure cookers through its platform was Rs 6,14,825.41,” the order said.

Amazon admitted that it earned 'sales commission' fee for the pressure cookers sold on its platform.

The CCPA observed that when Amazon earns commercially from each sale of the product listed on its e-commerce platform, it cannot disassociate itself in case of issues arising from the sale of these items.

The consumer department has asked Amazon to notify all consumers of the 2,265 pressure cookers, recall the products and reimburse the amount to the buyers.

Amazon has been asked to submit a compliance report within 45 days. "The company was also directed to pay a penalty of Rs 1,00,000 for allowing sale of pressure cookers in violation to the QCO on its platform and violating rights of consumers."

The CCPA had passed a similar order of penalty and recall of defective pressure cookers against Paytm Mall, which has complied with the directions and deposited the penalty of Rs 1 lakh.

Recently, the CCPA issued an advisory to all e-commerce platforms on sale of Ayurvedic, Siddha, and Unani drugs.

The CCPA has also issued safety notices under Section 18(2) (j) of the Consumer Protection Act, 2019 to alert and caution consumers against buying goods which do not hold valid ISI mark and violate compulsory BIS standards.

While the first safety notice was issued with regard to helmets, pressure cookers, and cooking gas cylinders, the second notice was issued with regard to household goods, including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG, among others.