Amazon, Flipkart Under Fire as BIS Cracks Down on Non-Compliant Goods

Amazon, Flipkart Under Fire as BIS Cracks Down on Non-Compliant Goods

  • 17.03.2025 08:00
  • medianama.com
  • Keywords: Non-compliance, Legal Action

Amazon and Flipkart faced raids by India’s Bureau of Indian Standards (BIS) for selling unsafe, uncertified products like toys and appliances. The BIS seized items lacking mandatory ISI certification from Techvision International Pvt Ltd and filed legal actions under the BIS Act. E-commerce platforms were urged to enhance due diligence in ensuring only certified products are sold.

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Estimated market influence

Amazon

Amazon

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Analyst rating: Strong buy

Amazon is under scrutiny for non-compliant products sold on their platform. They face potential legal action and financial penalties.

Flipkart

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Analyst rating: N/A

Flipkart is also under scrutiny similar to Amazon, facing potential legal consequences for selling non-certified goods.

Techvision International Pvt Ltd

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Analyst rating: N/A

Techvision supplied non-compliant products leading to the BIS raids. They are legally challenged and may face penalties.

Meesho

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Analyst rating: N/A

Meesho is mentioned as another e-commerce platform under scrutiny for compliance issues.

Myntra

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Analyst rating: N/A

Myntra is part of the platforms called out by BIS for failing to adhere to mandatory certifications.

BigBasket

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Analyst rating: N/A

BigBasket is under scrutiny similar to other e-commerce platforms for non-compliance with BIS standards.

Context

Amazon, Flipkart Under Fire as BIS Cracks Down on Non-Compliant Goods

Key Facts and Data Points:

  • Bureau of Indian Standards (BIS) raided Amazon and Flipkart warehouses in Lucknow, Gurugram, and Delhi for selling unsafe, non-certified products.
  • Seized items included toys, hand blenders, aluminium foils, metallic water bottles, PVC cables, and speakers lacking BIS certification.
  • The raids traced non-compliant products to Techvision International Pvt Ltd, which was also raided.
  • Legal action initiated against Techvision under Sections 17(1) and 17(3) of the BIS Act, 2016:
    • Section 17(3) prohibits entities from using a Standard Mark or its “colourable limitation” without a valid license.
  • BIS is considering filing additional cases for other seizure operations.
  • Penalties include up to Rs 2 lakh, which may extend up to 10 times the value of goods, and imprisonment of up to two years.

Market Implications:

  • E-commerce platforms like Amazon, Flipkart, Meesho, Myntra, and BigBasket are under scrutiny for failing to ensure BIS certification compliance.
  • The BIS has urged these platforms to exercise “greater due diligence” in listing only certified products.
  • This raid highlights the growing regulatory focus on e-commerce platforms’ supply chain and seller compliance processes.

Competitive Dynamics:

  • Amazon and Flipkart face reputational damage and potential financial penalties, impacting their market position.
  • Other e-commerce platforms (Meesho, Myntra, BigBasket) are also under notice, creating a competitive landscape of compliance and regulatory scrutiny.
  • The incident may prompt platforms to adopt stricter seller verification processes and self-regulatory frameworks.

Regulatory Impact:

  • The BIS’ actions contradict its previous stance on e-commerce liability, raising questions about the future regulatory framework.
  • A draft 2025 “E-commerce Principles and Guidelines for Self Governance” previously absolved platforms of liability but now faces reevaluation.
  • Clearer liability definitions are needed to protect consumers and ensure platform accountability.

Long-Term Effects:

  • E-commerce platforms may introduce AI or automated systems to detect non-compliant products proactively.
  • Greater emphasis on BIS certification checks in seller contracts could improve consumer trust and platform credibility.
  • This incident sets a precedent for stricter regulatory enforcement, potentially leading to industry-wide compliance reforms.