[Update] Now, Justdial Fined ₹10 Lakh Over Explosive Products Listings

Update | October 29, 19:45 IST

A week after the Central Consumer Protection Authority (CCPA) took action against seven ecommerce platforms over listings of unauthorised hazardous explosives, the regulator has now imposed an ₹10 Lakh fine on Justdial.

In an exchange filing today, Justdial said it received an order dated October 28 imposing the penalty for listing and hosting ammonium nitrate, a regulated and hazardous substance, on its platform.

The order also directed the company to immediately remove listings of ammonium nitrate and any other substance classified as an explosive under the Explosives Act, 1884, or other applicable laws.

Justdial said it had discontinued the listings and was reviewing the order. It added that the financial impact would be limited to the penalty amount, with no impact on its operations or other activities.

Original | October 20, 16:42 IST

The Central Consumer Protection Authority (CCPA) has taken regulatory action against seven ecommerce platforms, including IndiaMART and Justdial, over the listing and sales of unauthorised hazardous explosives.

The material listed on these platforms included ammonium nitrate, gun powder, picric acid and pentaerythritol tetranitrate (PETN).

Except for ammonium nitrate, all of the aforementioned chemicals are exclusively used in manufacturing explosives.

The regulatory action has resulted in the delisting of 3,940 sellers and listing entries, while the authority has imposed penalties totalling ₹30 Lakh on Dial4Trade and ExportersIndia, the Ministry of Consumer Affairs, Food and Public Distribution said in a statement yesterday.

IndiaMART accounted for the highest number of affected sellers and listings, with 3,092, followed by ExportersIndia with 421, Justdial with 206 and TradeIndia with 166, according to the ministry. Other platforms facing regulatory action include Dial4Trade, Sigma-Aldrich India and Ibuychemikals.

In its statement, the consumer protection body shared that it had issued notices to both Justdial and IndiaMART over the listings. Following the notices, Director General – Investigation investigated the matter and shared their reports with the companies. 

IndiaMART submitted its reply to the investigation report and, subsequently, approached the Delhi High Court challenging the SCN issued by the CCPA. Meanwhile, Justdial has sought adjournments in the matter till now and is yet to respond to the investigation. The next and final hearing in the matter is scheduled to be held on October 23.

 Meanwhile, the CCPA has imposed a penalty of ₹10 Lakh on Dial4Trade for facilitating the sale of ammonium nitrate. ExportersIndia was fined ₹10 Lakh in two separate cases, one involving ammonium nitrate and Pentaerythritol Tetranitrate (PETN), and the other involving picric acid.

The CCPA’s action covers both marketplaces that host third-party sellers and platforms that sell products directly. Sigma-Aldrich Chemicals and Ibuychemikals have told the authority that they sell their own products and do not host third-party sellers. Investigations into TradeIndia, Sigma-Aldrich Chemicals and Ibuychemikals are ongoing.

Dial4Trade challenged the order before the National Consumer Disputes Redressal Commission (NCDRC), which dismissed its appeal on October 9. The commission held that the listings amounted to misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019.

ExportersIndia has also appealed against the CCPA’s orders before the NCDRC. The appeals are expected to be listed for hearing in the coming period.

Consumers can report listings of explosives on online platforms through the national consumer helpline at 1915.

Under the Explosives Act, 1884, the sale and purchase of these substances require prescribed licences. The CCPA expects platforms to ensure sellers display valid licences issued by the petroleum and explosives safety organisation (PESO) and verify buyers’ identities and licence status before allowing purchases.

“The action reinforces the Government’s commitment to ensuring that digital marketplaces do not facilitate unauthorised access to regulated or dangerous substances in violation of applicable laws and consumer safety standards,” the ministry said. 

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