In one of the first actions by CCPA, fined of Rs 1 lakhs each Paytm Mall & Snapdeal for selling non standard pressure cookers. After repeal of Consumer Protection Act of 1986, the new Consumer Protection Act, 2019 (‘CPA’) provided for establishment of a Central Consumer Protection Authority (‘CCPA’) having effective powers of disciplining different malpractices including misleading advertisements (Section 18 (1) (d)) and unfair trade practices (Section 18 (2) (l)).
Fining Paytm mall and Snapdeal indulging in promotion of non-standard pressure cookers, CCPA directed these e-commerce platforms to reimburse the amount paid by the consumers. Overruling the claim of the companies, that they are mere intermediaries as per IT Act, 2000 with the responsibility of content lying with seller and not on them, CCPA placed its reliance on Rule 4(3) of Consumer Protection (E-commerce) Rules, 2020, which states that “no e-commerce entity shall adopt any unfair trade practice whether in the course of business on its platform or otherwise.”
This indicates a dawn of new era, where rights of consumer are being strengthened and showing results on the ground.
