Online marketplace Dial4Trade Technologies Pvt has been fined Rs 10 lakh by the Central Consumer Protection Authority for displaying ammonium nitrate, a regulated explosive, without confirming licenses or alerting customers to limitations on its purchase and possession.
The fine was imposed for enabling the online listing, hosting, advertising, and sale of ammonium nitrate on its e-commerce platform without the legally mandated regulatory safeguards.
In accordance with Sections 10, 20, and 21 of the Consumer Protection Act, 2019, the CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, issued the final ruling, according to an official release.,
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Additionally, the CCPA has ordered Dial4Trade to immediately stop listing, hosting, advertising, or facilitating the sale of ammonium nitrate or any other material that the Explosives Act of 1884 classifies as an explosive on its site.
The CCPA examined the platform and discovered that ammonium nitrate was listed and sold without sufficient security measures. Images of explosions and blast effects were also included with the listing. The CCPA noted that rather than conveying the product's harmful and regulated character, such imagery was likely to draw attention to it.
According to Section 2(1) of the Consumer Protection Act, 2019, a product listing that is housed on a digital marketplace and disseminated to the public online qualifies as an "advertisement," according to the CCPA.
The Authority further held that, in accordance with Sections 2(28) and 2(47) of the Act, it is deceptive advertising and unfair trade practice to present a regulated explosive substance for sale in the manner of an ordinary consumer product without notifying users that its lawful purchase requires the prescribed licence.
Dial4Trade argued that it should not be held accountable for listings submitted by independent sellers since it functions as a business-to-business marketplace intermediary.
The CCPA dismissed the argument, pointing out that the platform did not have minimum order quantities or institutional-buyer verification procedures typically associated with a B2B model, and it allowed purchases of the material in amounts as small as one unit.
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