New Delhi: Central Consumer Protection Authority (CCPA) imposed a penalty of ₹5,00,000 on Snapdeal (Ace Vector Limited) for facilitating the sale of toys that did not comply with mandatory safety standards.
The action relates to violations of the Toys (Quality Control) Order, 2020 and prescribed standards of the Bureau of Indian Standards (BIS).
The order, issued by the Central Consumer Protection Authority, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, concluded that Snapdeal engaged in unfair trade practices and misleading advertisements by allowing non-BIS-compliant toys to be sold on its platform, thereby violating consumer rights.
Also Read: CCPA Penalty on FirstCry: INR 2 Lakh Fine for Misleading Advertisements and Unfair Trade Practices
The CCPA took suo-moto cognizance after discovering that toys were being sold on Snapdeal in violation of the Toys (Quality Control) Order, 2020, which became mandatory from January 1, 2021.
The investigation found that non-compliant toys continued to remain available on Snapdeal as recently as December 2025, despite claims of delisting.
According to the findings, Snapdeal earned platform fees amounting to ₹41,032 from the sale of non-compliant toys through two identified sellers – Stallion Trading Company and Thriftkart.
The Authority also noted that several product listings on Snapdeal lacked essential information such as the manufacturer’s name, address, and BIS certification numbers.
The investigation further observed that Snapdeal relied primarily on seller self-declarations without independent verification, which the CCPA described as “inadequate” to prevent hazardous products from being listed.
In its defence, Snapdeal stated that it functions as a “marketplace e-commerce entity” similar to a physical shopping mall.
However, the CCPA rejected this argument, noting that Snapdeal exercises “substantial control” over transactions through platform-wide promotional campaigns such as “Toofan Sale” and “Deal of the Day,” product quality tags like “great quality at best price,” and control over logistics, refunds, and replacement mechanisms.
The Authority observed that the regulatory shift from caveat emptor (let the buyer beware) to caveat venditor (let the seller beware) places responsibility on both sellers and facilitating platforms such as Snapdeal to ensure product safety.
The platform remains vicariously liable for deficiencies in service or defects in goods sold through its portal.
Also Read: Rapido Fined INR 10 Lakh by CCPA for Misleading 5-Minute Auto Advertisements
The CCPA also noted that when asked to guarantee that only BIS-compliant toys would be sold in the future, Snapdeal failed to provide a categorical undertaking ensuring that non-compliant listings would not reappear.
Earlier, the Authority had issued notices to multiple e-commerce entities, including Amazon and Flipkart, along with sellers such as Stallion Trading Company and Electronics Bazar Store, regarding violations of the Toys (Quality Control) Order, 2020 and BIS standards mandated by the Central Government.
Under Section 2(10) of the Consumer Protection Act, 2019, toys that fail to meet compulsory standards may be classified as “defective.” Failure to comply with these standards constitutes misleading advertisement and unfair trade practice under the Act and the Consumer Protection (E-commerce) Rules, 2020.
Directives Issued to Snapdeal
The Authority directed Snapdeal to ensure that no non-compliant BIS-standard toys are listed, hosted, or advertised on its platform in the future. It also instructed Snapdeal to prominently display contact numbers, email addresses, and grievance officer details to facilitate consumer redressal.
The Central Consumer Protection Authority reaffirmed its commitment to protecting consumer rights, preventing unfair trade practices, and ensuring a safe and transparent digital marketplace.
The regulator urged all e-commerce platforms to adopt strict verification mechanisms and accurate disclosures for products sold online.
