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Delhi Hc asks Amazon to notify buyers and deposit Rs 1 Lakh


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The CCPA had imposed a Rs 1 lakh fine on Amazon in early August for selling pressure cookers that failed to meet quality standards. The CCPA had also ordered Amazon to notify all consumers of the 2,265 pressure cookers sold on its platform, recall the pressure cookers and refund prices to consumers, and submit a compliance report within 45 days.

The Delhi High Court on Tuesday ordered Amazon to notify consumers who had purchased 2,265 pressure cookers from the e-commerce platform and ordered the company to deposit Rs 1 lakh with the Registrar General of the court within a week .

The bench comprising Judge Yashwant Varma was hearing a petition filed by Amazon Seller Services against the Central Consumer Protection Authority (CCPA).

CACP had in early August iimposed a Rs 1 lakh penalty on Amazon for selling pressure cookers that did not meet quality standards. The CCPA had also ordered Amazon to notify all consumers of the 2,265 pressure cookers sold on its platform, recall the pressure cookers and refund prices to consumers, and submit a compliance report within 45 days.

The Delhi HC on Tuesday acknowledged that the CCPA investigation had established that the pressure cookers were not BIS compliant, and noted that the petitioner had “no opportunity to refute or respond to these findings” and suspended any recall or refund measures. concerning pressure cookers, saying that the matter needed to be explored further.

“The nature of the obligations that an e-commerce platform must fulfill under the 2020 Rules and whether they have in fact been fulfilled in the facts of this case would merit a more detailed examination. In addition, the Court should consider the duties and obligations that an e-commerce entity must be required to perform by law before onboarding a seller. These and other issues merit further consideration,” the court said in the order dated September 20, 2022.

The CCPA had argued that the petitioner (Amazon) “do does not add to the record any evidence that the vendors in question were offering products that “did not meet BIS standards, and” cannot claim a right to onboard vendors without ensuring that their products comply with legal requirements applicable”.

The court released the case for its next hearing on November 14, 2022.

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