The Central Consumer Protection Authority penalized Justdial Rs 10 lakh for listing ammonium nitrate without mandatory safety safeguards, buyer eligibility checks, or PESO licence disclosures. Rejecting the directory's intermediary defense, the regulator ordered an immediate halt to all listings of the regulated substance. Additionally, Sunrise Foods was fined Rs 1 lakh because its bread contained only 64% whole wheat despite being marketed as 100% whole-wheat.
Key points
Digital directories cannot evade liability for restricted hazardous materials by simply c…: Digital directories cannot evade liability for restricted hazardous materials by simply claiming to be public information platforms.
Food manufacturers face direct financial penalties if packaged product labeling misrepres…: Food manufacturers face direct financial penalties if packaged product labeling misrepresents primary ingredient percentages to consumers.
Sunrise Foods must cease all deceptive bread advertisements across all media formats and…: Sunrise Foods must cease all deceptive bread advertisements across all media formats and file a formal compliance report within 15 days.
Sources checked by our analysis pipeline: 1
File photo: Central Consumer Protection Authority (CCPA)
NEW DELHI: Central Consumer Protection Authority (CCPA) has imposed penalties on online business directory Justdial and Sunrise Foods for violations involving consumer safety and misleading product claims.While it slapped a Rs 10 lakh penalty on Justdial for allowing listings of ammonium nitrate, a regulated explosive substance, on its platform without adequate safeguards, a Rs 1 lakh penalty was imposed on Sunrise Foods for marketing its bread as “100% Whole Wheat Bread” without disclosing its actual whole-wheat content.In an order on Wednesday, CCPA held that Justdial’s platform carried listings of ammonium nitrate without adequate disclosure of sellers’ valid licences issued by Petroleum and Explosives Safety Organisation (PESO), verification of buyers’ eligibility and mechanisms to ensure transaction traceability. The listings also lacked appropriate warnings about legal restrictions on the possession and use of the substance.Justdial argued that it was an online directory and information-listing service, not a trading platform and that the listings were old and sourced from public-domain information or user submissions. However, CCPA held that reliance on vendor representations and removal of listings…
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