Online platforms liable for banned listings: Panel

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NEW DELHI: An online platform cannot hide behind its intermediary status to evade responsibility under consumer protection law and must exercise due diligence before allowing listings of prohibited, hazardous and regulated products, the National Consumer Disputes Redressal Commission (NCDRC) has ruled.The order will have wider implications and act as a deterrent to the sale of hazardous items such as explosives, acids and jammers that pose a danger, as well as other regulated products. Online platforms and e-commerce companies often cite their intermediary status to escape responsibility and action in such cases.

The NCDRC passed the order while hearing appeals filed by Weblink.in against two orders of the Central Consumer Protection Authority (CCPA) concerning the online listing of ammonium nitrate, picric acid and pentaerythritol tetranitrate.

The authority had imposed a penalty of Rs 20 lakh on the platform in the two cases.The commission upheld the penalty imposed by the authority. In its order passed earlier this week, the commission said the platform could not claim immunity under Section 79 of the Information Technology Act on the ground that it had no “actual knowledge” of the listings. It also said the company could not plead “selective diligence”.In one of the orders, the commission said, “The platform has its own list of do’s and don’ts, and it is evident they are not unaware of the precautions while facilitating transactions through their platforms in respect of hazardous substances or such prohibited items detrimental to the life of consumers. The argument that they are not obliged to verify licences as there is no such statutory obligation deserves rejection as the platform has the obligation to take reasonable care and exercise due diligence while allowing its platform to be utilised for such advertisement.