CCPA passes order against an e-commerce entity concerning the listing and sale of non-compliant BIS standard toys on their platforms; dated 13.02.2026

In a suo moto case against an e-commerce entity, the Central Consumer Protection Authority (“CCPA”) has passed an Order on 13^th February 2026 imposing a monetary penalty of Rs. 5 lakhs against the entity for permitting the sale of toys on its platform that did not comply with the Toys (Quality Control) Order, 2020 (QCO) issued under the Bureau of Indian Standards Act, 2016. The CCPA found the entity to have engaged in unfair trade practices and misleading advertisements by facilitating the sale of non-BIS compliant toys on its platform, in violation of consumer rights.

A detailed investigation disclosed several key lapses, such as continued listing of non-compliant toys, commercial benefit from sale of non-compliant toys, lack of transparency, inadequate due diligence, etc. CCPA rejected the entity’s defence that it is a marketplace e-commerce entity and not a seller, by maintaining that the entity exerts substantial control over its transactions by promoting products through algorithm-based sales, tagging products with quality assurances, and controlling logistics, refunds and replacement schemes. CCPA emphasized that the shift from caveat emptor to caveat venditor places the burden of ensuring product safety on both the seller and the facilitating platform. Further, CCPA observed that the entity failed to provide a guarantee or undertaking that no non-BIS complaint toys would reappear on their platform in future.

The CCPA held that such non-compliance by the entity constitutes misleading advertisement and unfair trade practice under Consumer Protection Act, 2019 and the Consumer Protection (E-commerce) Rules, 2020. Consequently, the CCPA imposed a penalty of Rs. 5 lakhs on the entity and directed the entity to ensure that no non-complaint toy is listed on its platform in the future, as well as prominently display Grievance Officer details to facilitate prompt consumer redressal. All e-commerce platforms have been urged to exercise strict regulatory verification and ensure accurate disclosures.

Source: Central Consumer Protection Authority