CCPA fines Amazon Rs 1 lakh for selling sweets as Ayodhya Ram Mandir prasad

The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 1 lakh on Amazon Seller Services for allowing ordinary sweets to be listed on its platform as “Shri Ram Mandir Ayodhya Prasad” without authorisation from the Ram Mandir Trust.

The consumer regulator said the listings violated the Consumer Protection (E-Commerce) Rules, 2020. The order, passed on August 4, also directed Amazon to ensure that products claiming to be religious offerings associated with specified temples are not listed or sold without documentary proof of authorisation.

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The action followed a complaint filed by the Confederation of All India Traders (CAIT) on January 19, 2024, shortly before the consecration ceremony at the Ram Mandir in Ayodhya.

Amazon removed listings after CCPA notice

CAIT had alleged that four products were being sold on Amazon.in as “Sri Ram Mandir Ayodhya Prasad” for prices ranging from Rs 299 to Rs 385.

The CCPA issued a show cause notice to Amazon on the same day, citing alleged violations of the Consumer Protection Act, 2019 and the E-Commerce Rules, 2020. Amazon subsequently removed the listings.

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Amazon argued that it was only an intermediary and was entitled to safe harbour protection under Section 79 of the Information Technology Act. It also cited the Supreme Court's ruling in Shreya Singhal v Union of India.

The CCPA rejected the argument, saying the Information Technology Act and the E-Commerce Rules operate separately. It held that Amazon's consumer protection responsibilities, including seller disclosure and due diligence, could not be avoided by relying on its intermediary status or contractual arrangements with sellers.

What CCPA found

The regulator's investigation also found shortcomings in Amazon's disclosure of seller information. The CCPA said the platform did not adequately display seller details as required under the E-Commerce Rules.

It also found that Amazon's grievance redressal mechanism required users to log in, which the regulator said did not meet the requirement for clear and accessible disclosure.

The listings generated Gross Merchandise Sales of Rs 25,26,309, while the four products together generated actual revenue of Rs 39,802.29. Amazon earned Rs 15,165.90 as a service fee from these sales, according to the order.

Amazon to check religious product claims

The CCPA said the phrase “Shri Ram Mandir Ayodhya Prasad” has a specific meaning for Hindu devotees and refers to sacred food offered to and blessed by the deity at the Ram Mandir in Ayodhya.

“The commercial appropriation of this phrase for ordinary confectionery products, without any authorisation from the Shri Ram Janmabhoomi Teerth Kshetra Trust, constitutes not just a misleading trade practice under the CP Act but an affront to the religious sentiments of crores of consumers,” the regulator said.

The CCPA also noted that Amazon's reach could give such listings an appearance of legitimacy to consumers.

Following the proceedings, Amazon submitted a framework covering 10 major religious institutions and shrines. The list includes Ram Janmabhoomi Mandir, Tirumala Tirupati Devasthanam, Shri Mata Vaishno Devi Shrine, Shri Kashi Vishwanath Temple, Shri Jagannath Temple, Shri Kedarnath Temple, Shri Badrinath Temple, Shri Somnath Temple, Shri Dwarkadhish Temple and Shri Mahakaleshwar Temple.

The CCPA directed Amazon Seller Services to ensure that “no product falsely claiming to be 'prasad', 'prasadam', 'mahaprasad', 'bhog' or any similarreligious offering” associated with the institutions and shrines named in its order is listed, hosted, advertised, exhibited or offered for sale without verifiable documentary proof of authorisation from the concerned institution.

The CCPA said it imposed the Rs 1 lakh penalty for publication of misleading advertisements on Amazon's platform in violation of the E-Commerce Rules, 2020.

“The CCPA hereby imposes a penalty of Rs 1,00,000/- on the opposite party (Amazon Seller) for publication of misleading advertisements on its platform,” the order said.