E-Commerce Platform Snapdeal Faces Regulatory Scrutiny Over Toy Standards

E-Commerce Platform Snapdeal Faces Regulatory Scrutiny Over Toy Standards.webp

New Delhi, February 16 The Central Consumer Protection Authority (CCPA) has imposed a fine of Rs 5 lakh on e-commerce platform Snapdeal for selling toys that do not comply with mandatory Bureau of Indian Standards certification, violating the Toys (Quality Control) Order, 2020.

A final order against Snapdeal (Ace Vector Limited) has been issued after taking suo-motu cognizance of the matter, CCPA Chief Commissioner Nidhi Khare told PTI.

The CCPA has also issued notices to other e-commerce entities including Amazon and Flipkart, along with sellers such as Stallion Trading Company and Electronics Bazar Store, she said.

Besides the fine, the CCPA has directed Snapdeal to ensure future compliance by guaranteeing that no non-compliant BIS standard toy is listed, hosted, or advertised on its platform.

The platform has also been asked to prominently display contact numbers, e-mail addresses, and Grievance Officer details to facilitate prompt consumer redressal.

The Toys (Quality Control) Order, 2020 became mandatory with effect from January 1, 2021, making BIS certification compulsory for all toys sold in India.

Commenting on the order, Snapdeal’s spokesperson said,"As a marketplace, Snapdeal remains committed to providing a safe and trusted platform for consumers and ensures compliance under laws as applicable. The issue with regards to intermediary liability in similar matters are pending decisions by various high courts."

The company will seek appropriate judicial review in due course, the spokesperson added.

The CCPA investigation revealed that non-compliant toys continued to be sold on Snapdeal despite claims of delisting, with listings available as recently as December 2025.

The platform earned fees of Rs 41,032 from sales of these toys through just two identified sellers — Stallion Trading Company and Thriftkart.

The CCPA found several critical lapses: many product listings lacked essential information such as the manufacturer's name, address, and mandatory BIS certification numbers.

The platform's due diligence was deemed "inadequate" as it relied solely on seller self-declarations without independent verification.

Khare said the Snapdeal defended itself by claiming it acts as a "marketplace e-commerce entity" similar to a physical shopping mall.

However, the CCPA categorically rejected this analogy, noting that the platform exerts "substantial control" over transactions by managing promotional sales like "Toofan Sale" and "Deal of the Day", tagging products with quality assurances such as "great quality at best price", and controlling logistics, refunds, and replacement schemes.

The authority 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 on both the seller and the facilitating platform.

"The onus is on the platform to ensure that every listed product meets safety and quality standards such as BIS certification for toys," the CCPA said, adding that platforms remain vicariously liable for any deficiency in service or defect in goods reaching consumers.

The CCPA noted that when asked to provide a guarantee for the sale of BIS-compliant toys on its platform in future, Snapdeal failed to give a categorical undertaking that non-compliant toys would not reappear.

Under Section 2(10) of the Consumer Protection Act, 2019, toys that do not conform to compulsory standards are liable to be held "defective". Failure to comply with these standards constitutes misleading advertisement and unfair trade practice under the Act.

The Consumer Protection (E-commerce) Rules, 2020 stipulate that no e-commerce entity shall adopt any unfair trade practice in the course of business on its platform.

CCPA reaffirmed its commitment to protecting consumer rights, preventing unfair trade practices, and ensuring a safe and transparent digital marketplace. It urged all e-commerce platforms to exercise strict regulatory verification and ensure accurate disclosures.
 
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ace vector limited bis certification bureau of indian standards (bis) ccpa central consumer protection authority consumer protection (e-commerce) rules, 2020 consumer protection act, 2019 digital marketplace e-commerce grievance officer misleading advertisement seller self-declarations snapdeal toys (quality control) order, 2020 unfair trade practice
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