Snapdeal Penalized for Misleading Ads and Unfair Trade Practices

The Central Consumer Protection Authority (CCPA) has levied a Rs 5,00,000 fine on Snapdeal, operated by Ace Vector Limited, citing unfair trade practices and misleading advertisements related to non-BIS compliant toys on its platform. The Ministry of Consumer Affairs highlighted this serious enforcement action targeting e-commerce platforms and sellers violating the mandates of the Toys (Quality Control) Order, 2020, and Bureau of Indian Standards (BIS) requirements.

CCPA, guided by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, clarified that Snapdeal has repeatedly transgressed the mandatory BIS standards for toys, with the non-compliant products available on Snapdeal until as late as December 2025. Snapdeal's defense of being a mere marketplace was dismissed by CCPA, stating significant platform control over sales events and quality tags that contradict this claim.

Notably, CCPA insisted on greater accountability by Snapdeal to prevent future infractions, requiring visible grievance redressal contact information for consumers. This regulatory scrutiny follows similar notices to e-commerce giants like Amazon and Flipkart. Snapdeal, while pledging compliance, intends to seek judicial review as issues around intermediary liability await resolution in high courts.