New Delhi: The Central Consumer Protection Authority (CCPA) has fined Amazon Seller Services Rs 1 lakh for allowing ordinary sweets to be sold on its platform as “Shri Ram Mandir Ayodhya Prasad” without authorisation from the Ram Mandir Trust.
The consumer regulator said the listings violated the Consumer Protection (E-Commerce) Rules, 2020. In its order dated August 4, the CCPA also directed Amazon to ensure that products marketed as religious offerings linked to specific temples are not listed or sold without documentary proof of authorisation. The CCPA’s action followed a complaint filed by the Confederation of All India Traders (CAIT) on January 19, 2024, shortly before the consecration ceremony at the Ram Mandir in Ayodhya.
Amazon removed listings after CCPA notice
CAIT alleged that four products were being sold on Amazon.in under the name “Sri Ram Mandir Ayodhya Prasad”, with prices ranging from Rs 299 to Rs 385.
The CCPA issued a show-cause notice to Amazon on the same day, citing alleged violations of the Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020. Following the notice, Amazon removed the listings from its platform.
Amazon argued that it was merely an intermediary and was therefore entitled to safe-harbour protection under Section 79 of the Information Technology Act. The company also relied on the Supreme Court’s judgment in Shreya Singhal v. Union of India.
The CCPA rejected the argument, stating that the Information Technology Act and the Consumer Protection (E-Commerce) Rules operate independently. It held that Amazon could not evade its obligations under consumer protection laws, including requirements related to seller disclosures and due diligence, by citing its intermediary status or contractual arrangements with sellers.
What CCPA Found
The CCPA’s investigation also flagged deficiencies in Amazon’s disclosure of seller information. According to the regulator, the platform failed to adequately display seller details as required under the Consumer Protection (E-Commerce) Rules.
The CCPA further noted that Amazon’s grievance redressal mechanism required users to log in, which it said did not comply with the requirement for clear, transparent and easily accessible information for consumers.
According to the CCPA’s order, the listings generated Gross Merchandise Sales (GMS) worth Rs 25,26,309, while the four products collectively recorded actual revenue of Rs 39,802.29. Amazon earned Rs 15,165.90 in service fees from these sales, the order stated.
Amazon to Check Religious Product Claims
The CCPA said the term “Shri Ram Mandir Ayodhya Prasad” carries a specific religious significance for Hindu devotees, referring to sacred food believed to be offered to and blessed by the deity at the Ram Mandir in Ayodhya.
The regulator said using the phrase commercially for ordinary confectionery products without authorisation from the Shri Ram Janmabhoomi Teerth Kshetra Trust amounted to a misleading trade practice under the Consumer Protection Act and could also hurt the religious sentiments of millions of consumers. The CCPA also observed that Amazon’s wide reach could make such listings appear legitimate and authentic to consumers.
Following the proceedings, Amazon submitted a framework covering 10 major religious institutions and shrines. The list includes Ram Janmabhoomi Mandir, Tirumala Tirupati Devasthanam, Shri Mata Vaishno Devi Shrine, Shri Kashi Vishwanath Temple, Shri Jagannath Temple, Shri Kedarnath Temple, Shri Badrinath Temple, Shri Somnath Temple, Shri Dwarkadhish Temple and Shri Mahakaleshwar Temple.
The CCPA directed Amazon Seller Services to ensure that no product falsely described as “prasad”, “prasadam”, “mahaprasad”, “bhog” or any similar religious offering linked to the institutions and shrines named in the order is listed, hosted, advertised, displayed or offered for sale without verifiable documentary proof of authorisation from the concerned institution.
The CCPA said it imposed a penalty of Rs 1 lakh on Amazon Seller Services for allowing misleading advertisements to be published on its platform, in violation of the Consumer Protection (E-Commerce) Rules, 2020. According to the order, the penalty was imposed specifically over the publication of misleading advertisements on Amazon’s platform.
