The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on online marketplace Dial4Trade Technologies Private Limited for listing ammonium nitrate, a regulated explosive, without verifying licences or warning buyers about restrictions on its purchase and possession.
A coram of Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra found that the product listing was accompanied by images of explosions and blast effects intended to attract consumer attention.
“Such imagery was calculated to visually depict the destructive/explosive potential of the product and had the effect of drawing consumer attention to a highly regulated and hazardous substance,” the order said.
The CCPA had initiated an inquiry into the online availability of hazardous chemicals and explosives, including ammonium nitrate, gunpowder, picric acid and pentaerythritol tetranitrate.
During the inquiry, it found ammonium nitrate listed on Dial4Trade without the seller’s Petroleum and Explosives Safety Organisation (PESO) licence details, verification of the buyer’s eligibility or mechanisms to trace transactions.
The listing displayed the product’s price, packaging details and a “contact supplier” option. However, it did not disclose that purchase required a valid licence or that unauthorised possession could attract penal consequences.
Dial4Trade argued that it merely operated a business-to-business marketplace and did not manufacture, store, distribute or sell any products. It said the listing had been uploaded by an independent seller without its knowledge.
The CCPA said this argument in fact proved that anybody could list their products online without any supervision.
“This establishes that any individual member of the general public and not merely an institutional or business buyer, could access and seek to purchase the impugned product through the platform,” it held.
The Authority added that even a genuine B2B marketplace would not fall outside the Consumer Protection Act or the Consumer Protection (E-Commerce) Rules.
It also rejected Dial4Trade’s reliance on the intermediary safe-harbour protection under Section 79 of the Information Technology Act. The company had failed to demonstrate that it had effective mechanisms to prevent regulated substances from being listed, the CCPA found.
The CCPA further noted that Dial4Trade had neither reported the seller to the police or PESO nor provided data on quantities sold and licences verified.
It concluded that the listing amounted to a misleading advertisement and an unfair trade practice, besides violating consumers’ right to protection against hazardous goods.
Hence, it directed Dial4Trade to discontinue listings of ammonium nitrate and other regulated explosives and submit a compliance report within 15 days.
A fine of ₹1 lakh was also imposed.
Advocate Hemant Verma represented Dial4Trade.
[Read Order]