Regulator Targets Online Marketplaces
The Central Consumer Protection Authority (CCPA) has imposed a ₹10 Lakh fine on Justdial for hosting unauthorized listings of ammonium nitrate, a regulated and hazardous substance. The company confirmed the penalty in an exchange filing on Tuesday, noting that it received the order on October 28.
The regulator directed Justdial to immediately remove all listings for ammonium nitrate and any other substances classified as explosives under the Explosives Act, 1884. Justdial stated that it has already discontinued these listings and is currently reviewing the order. The company reported that the financial impact will be limited to the penalty amount and will not affect its ongoing operations.
Broader Regulatory Crackdown
This penalty follows a wider investigation by the CCPA into seven e-commerce platforms regarding the sale of hazardous materials. The authority previously identified listings for substances including gunpowder, picric acid, and pentaerythritol tetranitrate (PETN). According to the Ministry of Consumer Affairs, Food and Public Distribution, the regulatory action has led to the delisting of 3,940 sellers and product entries across these platforms.
Other companies named in the investigation include IndiaMART, ExportersIndia, Dial4Trade, TradeIndia, Sigma-Aldrich India, and Ibuychemikals. The CCPA has previously issued penalties totaling ₹30 Lakh against Dial4Trade and ExportersIndia. While IndiaMART, which accounted for the highest number of affected listings at 3,092, has challenged the regulator’s show-cause notice in the Delhi High Court, other platforms remain under scrutiny. The CCPA’s enforcement measures apply to both marketplaces that host third-party sellers and entities that sell products directly.
Why it matters: The CCPA’s intervention highlights growing regulatory pressure on digital marketplaces to police third-party sellers. For consumers and businesses, this enforcement underscores the legal risks associated with facilitating the trade of highly regulated, dangerous chemicals online.