Explained: Why Amazon and Flipkart are under the scanner for non-certified products

The Bureau of Indian Standards (BIS), the country's top product certification agency, conducted raids at several warehouses of Amazon and Flipkart on Saturday for selling non-certified products. The government said the move was aimed at curbing the distribution of non-compliant products through e-commerce platforms.

This comes amid cases being heard against the ecommerce majors in the Karnataka High Court for anticompetitive practices against smaller retailers.

Here's a look at the developments so far:


What happened?

The BIS on Saturday conducted search and seizure operations in Lucknow, Gurugram, and Delhi, which are believed to have led to the discovery of non-certified products.

In a raid at an Amazon warehouse in Lucknow, officials seized 215 toys and 24 hand blenders, all of which lacked the mandatory BIS certification.

The watchdog had conducted a similar operation at an Amazon warehouse in Gurugram, where multiple objects were seized. They included 58 aluminium foils, 34 metallic water bottles, 25 toys, 20 hand blenders, seven PVC cables, two food mixers and one speaker.

The BIS also took possession of 534 stainless steel bottles (vacuum insulated), 134 toys and 41 speakers, all uncertified, at a Flipkart warehouse in Gurugram.

Notices issued

The Bureau has sent notices to Amazon, Flipkart, Meesho, Myntra and BigBasket, directing the etailers to only sell BIS-certified products.

Non-certified products include those that do not bear the ISI mark or bear an ISI mark with an invalid licence number. These non-certified products pose significant safety risks to consumers as they have not undergone independent third-party testing to ensure they meet minimum safety and performance standards.

The BIS emphasised that market surveillance activities will continue as part of ongoing efforts to protect consumer interests and ensure compliance with safety standards.

What penalties do the companies face?

Under Section 17 of the BIS Act, 2016, the companies face a penalty of at least Rs 2 lakh. This may extend up to ten times the value of the goods sold or offered for sale. Additionally, depending on the severity of the violation, offenders may also face imprisonment of up to two years.

Amazon responds

Amazon said it requires all its sellers to comply with applicable laws, regulations and the company's policies. "We ensure our selection meets industry-accepted standards, and we develop innovative tools to prevent unsafe products from being listed," its statement said. "We take actions to maintain a safe selection for our customers, including removing noncompliant products, and outreach to sellers, manufacturers, and government agencies for additional information, when appropriate."