In a significant development, the Bureau of Indian Standards (BIS) is preparing to initiate legal proceedings against e-commerce giants Amazon and Walmart-owned Flipkart. The move comes after the regulatory body found that both platforms were allegedly selling products that lacked the mandatory BIS certification.
The BIS plans to seek compensation from the companies based on the value of non-certified goods that were seized during warehouse inspections earlier this year.
Raids Reveal Non-Certified Products
In March, BIS officials conducted surprise raids at the warehouses of Amazon and Flipkart, uncovering a range of goods that, according to the agency, did not meet the required certification standards. These findings prompted the consumer watchdog to pursue stronger action against the platforms.
“The compensation will be calculated on the total value of the seized goods,” said people familiar with the matter.
BIS May Seek Up to 10x Compensation Under Law
Under the BIS Act of 2016, the agency holds the authority to claim up to ten times the value of non-certified products sold. Additionally, BIS has the power to prosecute companies found in violation of standard compliance requirements.
The case will be filed before a magistrate’s court and could potentially lead to a precedent-setting outcome for the online retail industry in India.
BIS Mandate and Authority
The Bureau of Indian Standards, operating under the Ministry of Consumer Affairs, is responsible for the formulation and enforcement of quality standards for goods and services across the country. Its primary goal is to protect consumer interests and ensure that products available in the Indian market adhere to safety and quality norms.
This legal step signifies the government’s growing scrutiny on e-commerce platforms, especially regarding consumer safety and product authenticity.
