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Online platforms liable for banned listings: Panel

By · Via Times of India · Published by Everything Blog

In short

The National Consumer Disputes Redressal Commission affirmed that online marketplaces must exercise due diligence before allowing hazardous or prohibited products to be listed. In rejecting intermediary immunity under Section 79 of the Information Technology Act, the panel upheld penalties totaling Rs 20 lakh against Weblink.in across two cases. The ruling addressed listings for dangerous substances, specifically ammonium nitrate, picric acid, and pentaerythritol tetranitrate. The commission emphasized that platforms cannot rely on selective diligence or claim a lack of actual knowledge when safety precautions are required.

Key points

  • Intermediary status under consumer protection law cannot be used by online platforms to e…: Intermediary status under consumer protection law cannot be used by online platforms to escape liability.
  • Marketplaces are legally obligated to verify seller licences and exercise due diligence b…: Marketplaces are legally obligated to verify seller licences and exercise due diligence before publishing hazardous listings.
  • Regulatory panels will reject defenses based on selective diligence or purported lack of…: Regulatory panels will reject defenses based on selective diligence or purported lack of actual knowledge regarding prohibited items.

Sources checked by our analysis pipeline: 1

NEW DELHI: An online platform cannot hide behind its intermediary status to evade responsibility under consumer protection law and must exercise due diligence before allowing listings of prohibited, hazardous and regulated products, the National Consumer Disputes Redressal Commission (NCDRC) has ruled.

The order will have wider implications and act as a deterrent to the sale of hazardous items such as explosives, acids and jammers that pose a danger, as well as other regulated products. Online platforms and e-commerce companies often cite their intermediary status to escape responsibility and action in such cases.

The NCDRC passed the order while hearing appeals filed by Weblink.in against two orders of the Central Consumer Protection Authority (CCPA) concerning the online listing of ammonium nitrate, picric acid and pentaerythritol tetranitrate. The authority had imposed a penalty of Rs 20 lakh on the platform in the two cases.

The commission upheld the penalty imposed by the authority. In its order passed earlier this week, the commission said the platform could not claim immunity under Section 79 of the Information Technology Act on the ground that it…

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