ConsumerProtection – CCPA Fines Snapdeal Over Non-Compliant Toy Sales
ConsumerProtection – The Central Consumer Protection Authority has imposed a penalty of ₹5 lakh on Snapdeal, operated by Ace Vector Limited, after finding that toys sold on the platform failed to meet mandatory quality norms laid down by the Bureau of Indian Standards. The regulator concluded that the company engaged in unfair trade practices and misleading advertisements by allowing the sale of toys that did not comply with the Toys (Quality Control) Order, 2020.
Regulatory Order Highlights Compliance Failures
The action follows a detailed inquiry initiated by the Central Consumer Protection Authority under the leadership of Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra. In its final order, the authority stated that toys listed on Snapdeal did not conform to compulsory BIS certification requirements, which became effective on January 1, 2021.
According to the findings, the regulator took suo motu cognisance after identifying continued availability of non-compliant toys on the platform. Despite claims that such listings had been removed, investigators found that certain products were still accessible as recently as December 2025.
Earnings From Non-Compliant Listings Examined
The inquiry also reviewed financial records related to the sale of these products. Officials reported that Snapdeal collected fees amounting to ₹41,032 from transactions involving two sellers—Stallion Trading Company and Thriftkart—whose toy listings did not meet BIS standards.
In addition, several product pages lacked basic disclosures such as the manufacturer’s name, address, and valid BIS certification numbers. The absence of this information was considered a significant lapse, particularly in a category involving children’s safety.
Marketplace Defence Rejected by Authority
In its response, Snapdeal argued that it functions as a marketplace platform, comparable to a physical shopping mall, and therefore should not be held directly accountable for products offered by independent sellers.
The authority dismissed this argument, noting that the company exercises substantial operational control over sales conducted through its portal. It cited examples such as platform-wide promotional events, including campaigns branded as “Toofan Sale” and “Deal of the Day.” The order also referred to product tags promoting items as “great quality at best price,” stating that such representations may amount to implicit assurances when applied to goods that lack mandatory certification.
Regulators emphasized that the responsibility for ensuring product safety cannot be shifted entirely onto sellers. The shift in consumer protection principles—from buyer beware to seller responsibility—places accountability on both the vendor and the facilitating e-commerce entity.
Legal Framework and Consumer Protection Standards
Under Section 2(10) of the Consumer Protection Act, 2019, a product is considered defective if it contains any fault or shortcoming in quality, purity, or standard required under applicable law. Since BIS certification for toys is compulsory, the sale of uncertified products can fall within the definition of defective goods.
Authorities further observed that non-compliance with mandatory standards may constitute misleading advertising and unfair trade practices. The Consumer Protection (E-commerce) Rules, 2020 clearly prohibit digital platforms from adopting unfair methods in the course of business.
The regulator also noted that when asked to provide a categorical assurance preventing future listings of non-compliant toys, Snapdeal did not furnish a firm guarantee.
Directions Issued to Ensure Future Compliance
In addition to the monetary penalty, the authority has directed Snapdeal to ensure that no toy lacking valid BIS certification is listed, hosted, or promoted on its platform going forward. The company has also been instructed to prominently display customer care contact details, including phone numbers, email addresses, and grievance officer information, to facilitate prompt redressal of consumer complaints.
The regulator reaffirmed its commitment to safeguarding consumer rights and maintaining transparency in the digital marketplace. Notices have also been issued to other e-commerce companies and sellers, including Amazon and Flipkart, as part of broader enforcement efforts related to toy safety compliance.
Officials stated that online marketplaces must adopt stricter verification systems and conduct independent checks rather than relying solely on seller declarations. Ensuring adherence to national quality standards, they said, is essential to protect consumers—particularly children—from potential safety risks associated with uncertified products.