E-commerce major Amazon India on Wednesday has been penalized by the consumer affairs department over non-compliance with packaging norms where ‘country of origin’ details have to be displayed on packaged products sold on its platform.
As a first offence, Amazon India has been asked to pay a fine of Rs 25,000 within a week of receiving the notice. The notice was issued on Friday.
Official sources said Amazon was not able to show evidence of display of ‘country of origin’ on several products and hence attracted the penalty. Walmart-owned Flipkart, on its part, responded with evidence, and hence has not been fined, the officials said.
In the notice issued last month, the consumer affairs ministry had said, “It has been brought into notice that some of the e-commerce entities are not displaying the mandatory declaration on digital platforms required under the Legal Metrology (Packaged Commodities) Rules, 2011.”
In similarly worded notices, the ministry had said Flipkart India Pvt Ltd and Amazon Development Centre India Pvt Ltd have to ensure that all mandatory declarations are displayed on the digital and electronic network used for e-commerce transactions.
A government source said the issue is not about the penalty amount alone, it is about sending a message to other e-commerce firms that they need to comply with the rules.