Central Consumer Protection Authority: Taking suo moto cognizance of sale of non BIS certified toys on an E-commerce platform by Stallion Trading Company (Opposite Party), the Bench comprising Nidhi Khare, Chief Commissioner and Anupam Mishra, Commissioner, held that the sale of uncertified toys contravened the Toys (Quality Control) Order, 2020, posed a serious risk to consumer safety, and constituted an unfair trade practice — thereby warranting regulatory action against the seller.
Background
The CCPA (Central Consumer Protection Authority) took suo motu cognizance of the sale of toys on Snapdeal (an e-commerce platform) that did not conform to BIS Standards, as mandated under the Toys (Quality Control) Order, 2020 [QCO,2020] which prohibits sale of such toys that can be dangerous, hazardous or likely to cause injury or harm to consumers.
Under Section 18(2) and 19 of the Consumer Protection Act, 2019, the CCPA conducted a preliminary inquiry against Stallion Trading Company and found that despite the QCO, 2020 coming into force on 1-1-2021, the Opposite Party had failed to ensure compliance and continued to sell non-BIS certified toys through the platform.
Consequently a show cause notice dated 12-6-2023 was issued to the Opposite Party, which responded on the same day, stating that it had ceased selling such toys upon becoming aware of BIS requirements.
Thereafter, a detailed investigation was undertaken on 13-6-2023, which revealed that the Opposite Party had indulged in limited sales of non-compliant toys on Snapdeal during 2022 and 2023. Based on the investigation The CCPA continued to conduct its investigation, inquiry and adjudication.
Issues
1. Whether the sale of non-BIS certified toys through an e-commerce platform violates the Toys (Quality Control) Order, 2020 and provisions of the BIS Act, 2016.
2. Whether such sale of non-compliant toys amounts to a defect in goods under Section 2(10) and an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.
3. Whether the Opposite Party failed to ensure mandatory statutory compliance and due diligence in listing and selling toys on the platform.
CCPA’s Assessment and Findings
The CCPA observed that, Toys (Quality Control) Order, 2020, which came into force on 1-1-2021 mandates BIS certification for all toys and any sale in contravention thereof amounts to breach of statutory safety standards under the BIS Act, 2016.
The Authority further noted that the Opposite Party had failed to exercise due diligence and had permitted the sale of non-BIS certified toys on the e-commerce platform in violation of mandatory compliance requirements.
The Authority emphasised that toys are a sensitive product category intended for children, and non-compliance is a potential risk to consumer safety and therefore deserves strict regulatory scrutiny.
It further held that such conduct is a “defect” as defined under Section 2(10) and an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.
In doing so, the Authority reasserted the principle of caveat venditor i.e. “let the seller beware”, reaffirming that the burden of ensuring product safety, quality, and transparency rests squarely on the shoulders of seller and the facilitating platform. Hence, the onus is on the platform and the seller to ensure that every listed product meets the safety and quality standards such as BIS certification for toys and it remains vicariously liable for any deficiency in service or defect in goods that each the consumer.
Accordingly, the CCPA concluded that the Opposite Party had failed to ensure statutory compliance, resulting in the sale of defective goods and unfair trade practice affecting consumer safety.
Decision
Consequently, the CCPA held that Stallion Trading Company had engaged in unfair trade practice, false and misleading advertisement as envisaged under the Consumer Protection Act, 2019 and imposed a penalty of Rs 1,000 (one thousand) along with directions to ensure strict compliance with mandatory BIS standards in future.
[In the matter of Stallion Trading Company with regard to sale of non-compliant BIS Standard Toys, Case No: CCPA-2/11/2023-CCPA (Part 1), decided on 23-4-2026]
Advocates who appeared in this case:
For Stallion Trading Company: Memon Hamza, Proprietor
