The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹5 lakh on Snapdeal (Ace Vector Ltd) for facilitating the sale of toys that did not conform to Bureau of Indian Standards (BIS) norms, holding that marketplace platforms cannot evade accountability by claiming intermediary status when consumer safety is at stake.
The order, reviewed by Mint, said the national consumer rights watchdog found non-compliant toys continued to be listed, hosted, and sold on the platform even after the Toys (Quality Control) Order, 2020, came into force on 1 January 2021. The QCO, notified under the BIS Act, makes BIS certification mandatory for toys meant for children under 14 years of age.
The proceedings began after the authority took suo motu cognisance of listings of toys that allegedly lacked mandatory BIS certification. During the inquiry, it emerged that two sellers—Stallion Trading Company and Thriftkart—had sold 305 units of the impugned products in 2022 and 2023, generating revenue of ₹1.46 lakh, while the platform earned ₹41,032 in fees from these sales.
An executive of a leading toy manufacturing company said stricter enforcement of BIS standards will help ensure a level playing field for compliant manufacturers and protect consumers from substandard products.
“Online marketplaces cannot escape responsibility by calling themselves intermediaries. When regulated products such as toys are sold without mandatory BIS compliance, it directly compromises child safety,” said Ashim Sanyal, chief executive of the Consumer VOICE.
“Platforms must put in place stronger verification systems to ensure that only certified products are listed. Enforcement needs to be consistent to protect consumers and ensure fair competition for compliant manufacturers,” Sanyal added.
Consumer safety first
The CCPA, in its order, observed that, despite the platform’s claim to be merely an intermediary under the Information Technology Act, it had hosted sellers with unverifiable addresses and allowed listings without proper BIS details. The investigation report, submitted by the director general (investigation) in December 2025, noted that toys lacking mandatory certification were still available on the platform as recently as that month.
According to the order, Snapdeal’s case was defended by the legal team of Ace Vector Ltd, which argued that the company operates as a marketplace entity and neither owns inventory nor physically inspects the goods sold on its platform.
The company’s team further said sellers are required to declare BIS applicability and provide registration numbers during listing, and that it has integrated its system with the BIS database through an API (application programming interface) for real-time verification. The company also contended that it promptly deactivated the specific listings once notified and denied any evidence of consumer harm.
However, the authority rejected the “online mall” analogy. It noted that unlike physical shopping malls, e-commerce platforms actively manage discounts, promotional campaigns such as “Deal of the Day” and “Toofan Sale”, logistics and refund processes, thereby exercising substantial control over transactions. This, the order said, places a corresponding duty of due diligence on the platform.
The CCPA held that the sale of non-compliant toys amounts to an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019, and that concealing or failing to prominently disclose BIS certification amounts to misleading representation.
The CCPA underlined that the law has shifted from caveat emptor (buyer beware) to caveat venditor (let the seller beware), placing the burden of safety and compliance on sellers and facilitating platforms.
The authority further noted that when asked whether it could guarantee that only BIS-compliant toys would be sold in the future, the company failed to provide a categorical undertaking. It concluded that the continued listing of non-compliant toys, coupled with commercial benefit derived from such sales, warranted regulatory action.
Apart from the monetary penalty of ₹5 lakh, the CCPA directed Snapdeal to ensure that no non-compliant toy is listed or advertised on its platform going forward and to prominently display its contact details and grievance officer information to facilitate consumer redressal.
On Saturday, Snapdeal said, “As a marketplace, Snapdeal remains committed to providing a safe and trusted platform for consumers and ensures compliance under laws as applicable. The issue with regards to intermediary liability in similar matters are pending decisions by various high courts. The company will seek appropriate judicial review in due course”.
The case file
The BIS on 19 March 2025 conducted raids at the warehouses of major e-commerce distributors, including Amazon and Flipkart, and seized thousands of substandard products, Mint reported on 27 March.
During the raids, over 3,500 products, including water geysers, food mixers, and other electrical appliances, were confiscated for either lacking the mandatory ISI mark or carrying fake labels.
This marked the second such enforcement action by BIS against Amazon and Flipkart in March, following an earlier raid on 7 March. The estimated value of goods seized during the 19 March operation was around ₹70 lakh.