The Central Consumer Protection Authority (CCPA) has imposed monetary penalties on Amazon, Flipkart and JioMart for facilitating the sale and advertising of an unregistered agrochemical product marketed as Cyclosinone Herbicide on their online marketplaces.
Amazon Seller Services Pvt. Ltd. and Flipkart Internet Pvt. Ltd. have been fined Rs. 10 lakh each, while JioMart, operated by Reliance Retail Pvt. Ltd., has been fined Rs. 5 lakh for what the CCPA described as misleading advertisements and unfair trade practices. The penalties were imposed through separate orders issued by the CCPA recently.
Action Follows Agriculture Ministry Complaint
The proceedings originated from a complaint forwarded by the Ministry of Agriculture and Farmers Welfare, Plant Protection Division, following a representation from the Crop Care Federation of India (CCFI) concerning the sale and advertising of the unregistered agrochemical product through e-commerce and digital platforms.
According to the CCPA orders, the Ministry stated that Cyclosinone was not included in the Schedule to the Insecticides Act, 1968. The Ministry also pointed out that insecticides, including herbicides, are regulated under the Act and can be sold in the domestic market only in accordance with the prescribed regulatory framework.
The CCPA noted that the product listings also did not provide adequate information about its active ingredient, precise chemical identity, registration or licence details.
Product Marketed With ‘Eco-Safe’ Claims
The CCPA found that the product was advertised with claims including “5% Active Formula”, “Eco-Safe Weed Terminator” and “Safe Weed Control for Lawns, Gardens & Farmlands”. The JioMart order also records claims such as “Granular Application for Home & Commercial Use”, while the Amazon and Flipkart orders document similar claims relating to low toxicity, long-lasting protection, root action and safety around plants.
The CCPA held that such representations could lead consumers to believe that the product was legally compliant and safe for use when, according to the regulatory information placed before the authority, the required statutory compliance had not been established.
E-Commerce Platforms Cannot Rely Solely on Sellers
A key aspect of the orders is that online marketplaces cannot completely distance themselves from responsibility by arguing that products are listed by third-party sellers.
The authority referred to Rule 10(E) of the Insecticides (Second Amendment) Rules, 2022, which requires an e-commerce entity to verify the validity of the licence of the concerned seller before allowing the online sale of insecticides.
The CCPA further held that the Consumer Protection Act, 2019, requires truthful and non-misleading representations and prohibits unfair trade practices. It said the platforms had a duty to exercise adequate due diligence where products potentially involved regulated or hazardous substances.
CCPA Orders Immediate Discontinuation
In all three cases, the CCPA directed the platforms to discontinue the misleading advertisements and sale of the unregistered agrochemical product with immediate effect.
The platforms were also directed to conduct self-audits to prevent the listing of products that violate applicable laws or pose hazards to consumers. The CCPA additionally required compliance reports within 15 days of the respective orders.