CCPA Imposes ₹1,00,000 Penalty on Amazon Seller Services Pvt. Ltd. for Misleading Religious Product Listings

Overview of the Case

The Central Consumer Protection Authority (CCPA) initiated proceedings against Amazon Seller Services Private Limited in connection with the listing and sale of commercially manufactured sweets on the www.amazon.in platform, falsely marketed under descriptions such as "Shri Ram Mandir Ayodhya Prasad" — without any authorisation, endorsement, or institutional affiliation with the Shri Ram Janmabhoomi Teerth Kshetra Trust. The matter culminated in a penalty of ₹1,00,000 being imposed on the platform under Section 21 of the Consumer Protection Act, 2019.

Background and Origin of the Complaint

The proceedings were set in motion by a representation dated 19th January 2024, submitted by the Confederation of All India Traders (CAIT) to the Hon'ble Minister for Commerce & Consumer Affairs, Government of India. This representation was subsequently forwarded to the CCPA by the Department of Consumer Affairs.

CAIT's complaint alleged that Amazon Seller Services Private Limited was actively enabling deceptive trade conduct by permitting ordinary commercial sweets to be listed and sold on its platform under product titles falsely claiming a connection with the Shri Ram Janmabhoomi Mandir, Ayodhya — all without any form of approval or association with the Shri Ram Janmabhoomi Teerth Kshetra Trust.

Upon conducting a preliminary inquiry, the Authority identified four specific products listed by M/s Chandu Trading Company under the brand name "Bihar Brothers" (manufactured and packed by BiharBrothers®, Ayodhya, UP) that were live on the platform as of the date of the Show Cause Notice:

  • Sri Ram Mandir Ayodhya Prasad — 250 Grams, Raghupati Ghee Ladoo (Type 1 Prasad — Pack of 1x250g) — ASIN: BOCQXJ13HN
  • Ayodhya Ram Mandir Ayodhya Prasad — 250 Grams, Khoya Khobi Ladoo (Type 3 Prasad — Pack of 1x250g) — ASIN: BOCRJM2PVD
  • Sri Ram Mandir Ayodhya Prasad — 250 Grams, Ghee Bundi Ladoo (Type 4 Prasad — Pack of 1x250g) — ASIN: BOCRJXVVLF
  • Sri Ram Mandir Ayodhya Prasad — 250 Grams, Desi Cow Milk Peda (Type 5 Prasad — Pack of 1x250g) — ASIN: BOCRJZWQKB

All four products were categorised under "Grocery & Gourmet Foods / Sweetmeats" and were available for nationwide delivery. Their listings prominently featured religious imagery, Hindi slogans evoking Lord Ram and the city of Ayodhya, and marketing claims asserting "Blessings from Shree Ram Janam Bhumi Temple, Ayodhya." The ingredient column across all four listings described the ingredient as simply "Ram Mandir Prasad" — a factually inaccurate and plainly misleading description of the actual product contents.

Note: The listings were live immediately prior to the historic Pran Pratishtha (consecration) ceremony of the Shri Ram Mandir, Ayodhya, scheduled on 22nd January 2024 — a period of intense national religious sentiment and consumer vulnerability.

Show Cause Notice and Amazon's Defence

The CCPA issued a Show Cause Notice dated 19th January 2024 (F.No. CCPA-2/5/2024-CCPA) to Amazon Seller Services Private Limited, directing it to respond within seven days. The SCN cited potential violations of:

  • Rule 4(3) and Rule 5(3)(a) and (e) of the Consumer Protection (E-Commerce) Rules, 2020
  • Section 2(9) and Section 2(28) of the Consumer Protection Act, 2019

Amazon's Key Submissions (Email dated 27th January 2024)

In its response filed through counsel M/s Saikrishna & Associates, Amazon made the following submissions:

  1. Upon receipt of the SCN, all impugned listings were taken down under Section 79(3)(b) of the IT Act, and the identity of the third-party seller was disclosed — namely, Gaurav Kumar Chandu, M/s Chandu Trading Company, Hanuman Sadan, A.G. Colony Main Road, Patna — 800002, Bihar.

  2. Amazon operates solely as a marketplace intermediary under Section 2(1)(w) of the IT Act and plays no role in listing, pricing, describing, or selling products on its platform.

  3. Safe harbour protection was claimed under Section 79(1) of the IT Act. Reliance was placed on Shreya Singhal v. Union of India [(2015) 5 SCC 1] to argue that "actual knowledge" under Section 79(3)(b) is triggered only by a court order, and that intermediaries bear no obligation to pre-screen content.

  4. Sellers are contractually bound under the Amazon Business Solutions Agreement (BSA) to ensure compliance with all applicable laws. Seller details were accessible via a hyperlink, and consumer grievance redressal was available through its Buyer-Seller Messaging Service.

  5. Amazon contended that by removing the listings and disclosing the seller's identity, it had fully discharged its legal obligations.