Online platforms liable for banned listings, rules NCDRC
The National Consumer Disputes Redressal Commission stated that e-commerce companies cannot use intermediary status to evade consumer protection laws.
The National Consumer Disputes Redressal Commission (NCDRC) has ruled that online platforms must exercise due diligence before allowing the listing of prohibited, hazardous, or regulated products. According to The Times of India, the commission stated that platforms cannot use their intermediary status to avoid responsibility under consumer protection law.
The ruling came while the NCDRC heard appeals filed by Weblink.in against two orders from the Central Consumer Protection Authority (CCPA). The CCPA had imposed a penalty of Rs 20 lakh on the platform regarding the online listing of ammonium nitrate, picric acid, and pentaerythritol tetranitrate.
The commission upheld the penalty and said the platform could not claim immunity under Section 79 of the Information Technology (IT) Act by claiming it had no actual knowledge of the listings. It also rejected the argument that the company could plead selective diligence.
The commission noted that the platform has its own list of do's and don'ts and is aware of precautions regarding hazardous substances. It stated the platform has an obligation to take reasonable care and exercise due diligence when allowing its platform to be used for such advertisements.
The order is expected to act as a deterrent to the sale of regulated products and hazardous items like acids, explosives, and jammers.