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Snapdeal fined ₹5 lakh for selling toys violating BIS standards: CCPA

February 16, 2026 5 min read Polity & Governance Economics GS2 GS3
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What Happened

  • The Central Consumer Protection Authority (CCPA) imposed a penalty of ₹5 lakh on Snapdeal for selling toys that did not carry mandatory Bureau of Indian Standards (BIS) certification in violation of the Toys (Quality Control) Order, 2020.
  • The CCPA investigation found that non-compliant toys continued to be listed and sold on Snapdeal despite claims of delisting, with active listings found as recently as December 2025.
  • Show-cause notices were issued to other e-commerce platforms including Amazon and Flipkart, as well as to sellers Stallion Trading Company and Electronics Bazar Store.
  • CCPA directed Snapdeal to guarantee no non-BIS-compliant toy would be listed on its platform, to prominently display consumer grievance contact details, and to display the name and contact of its Grievance Officer.
  • Under Section 2(10) of the Consumer Protection Act, 2019, any product failing to conform to prescribed quality standards is deemed "defective"; selling such products constitutes an unfair trade practice.

Static Topic Bridges

Central Consumer Protection Authority (CCPA): Powers and Functions

The Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019 (effective July 2020) as a regulatory body to promote, protect, and enforce the rights of consumers as a class. Unlike the quasi-judicial Consumer Commissions (which adjudicate individual disputes), the CCPA is a regulatory authority empowered to take suo motu action against widespread unfair trade practices and misleading advertisements, and to impose penalties on companies.

  • The CCPA is headed by a Chief Commissioner, supported by Commissioners, and is based in New Delhi under the Ministry of Consumer Affairs, Food and Public Distribution.
  • Powers of CCPA: Investigate violations, issue safety notices, recall unsafe goods, order reimbursement to consumers, impose penalties, file complaints before Consumer Commissions.
  • Section 21 of the Consumer Protection Act, 2019 empowers the CCPA to impose a penalty of up to ₹10 lakh for the first offence and up to ₹50 lakh for subsequent offences on manufacturers/sellers for unfair trade practices and unsafe goods.
  • The CCPA can also issue a cease-and-desist order and direct discontinuation of misleading advertisements, with penalties for violation.
  • Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986 — it introduced the CCPA as a new institutional mechanism absent in the earlier framework.

Connection to this news: The CCPA's action against Snapdeal demonstrates the authority's use of suo motu regulatory power — not waiting for individual consumer complaints — to address a systemic violation affecting an entire product category across a major e-commerce platform.

Bureau of Indian Standards (BIS) Act, 2016 and Mandatory Certification

The Bureau of Indian Standards (BIS) is India's national standards body, established under the BIS Act, 2016 (which replaced the Bureau of Indian Standards Act, 1986). BIS formulates Indian Standards and operates a product certification scheme under which manufacturers may (voluntarily) or must (mandatorily) obtain a BIS licence to sell products bearing the ISI mark. "Mandatory certification" applies when a Quality Control Order (QCO) is issued by the relevant ministry under Section 16 of the BIS Act, 2016 — making BIS certification compulsory for specified products.

  • The Toys (Quality Control) Order, 2020 was issued by the Department for Promotion of Industry and Internal Trade (DPIIT) under Section 16 of the BIS Act, 2016, making BIS certification mandatory for all toys for children aged 14 and below from 1 January 2021.
  • Toys must conform to 7 Indian Standards covering physical, chemical, flammability, and electrical safety requirements.
  • No person may manufacture, import, sell, distribute, store, hire, lease, or exhibit for sale toys without the ISI mark under a BIS licence.
  • BIS conducts factory visits, market surveillance, and sample testing; enforcement violations are punishable under Section 29 of the BIS Act, 2016 with imprisonment up to 2 years and/or fine.
  • As of 2023, over 900 toy manufacturers (mostly MSMEs) had obtained BIS certification.

Connection to this news: The CCPA's action is the consumer protection enforcement layer; BIS enforcement under the BIS Act is a parallel track. Both mechanisms operate simultaneously: BIS can act against manufacturers/importers at the production/import stage, while CCPA acts against platforms and sellers at the retail stage.

E-Commerce Platforms and Liability Under Consumer Protection Framework

The Consumer Protection (E-Commerce) Rules, 2020, framed under the Consumer Protection Act, 2019, specifically govern e-commerce entities operating in India. These rules impose obligations on marketplace platforms to ensure product quality, display country of origin, provide seller information, and establish grievance redressal mechanisms. The question of platform liability — whether an e-commerce marketplace is responsible for products sold by third-party sellers — has been a contested legal area.

  • The Consumer Protection (E-Commerce) Rules, 2020 require marketplace e-commerce entities to: (i) display seller details, (ii) provide complaint mechanisms, (iii) not manipulate prices, and (iv) not conduct flash sales that discriminate among buyers.
  • Under the Consumer Protection Act, 2019, an e-commerce entity is treated as a "service provider" and can be held liable for deficiency in service — including listing products that violate mandatory quality standards.
  • The rules were amended in 2021 to tighten requirements on country-of-origin labelling and to prohibit preferential treatment of related sellers.
  • The Grievance Officer provision (required by Rules 2020) is what the CCPA directed Snapdeal to display prominently — the CCPA's compliance directive maps directly onto existing regulatory obligations.
  • The notices to Amazon and Flipkart follow the same framework: as marketplace operators, they have an obligation to ensure sellers on their platforms comply with mandatory standards, failing which the platform itself can be held liable.

Connection to this news: The Snapdeal case sets a precedent for platform accountability: an e-commerce marketplace cannot claim immunity on the grounds that it is merely a conduit if it fails to prevent the sale of products that violate mandatory quality control orders.

Key Facts & Data

  • CCPA penalty on Snapdeal: ₹5 lakh (first offence; maximum for first offence under CP Act 2019: ₹10 lakh)
  • Toys (Quality Control) Order, 2020 — issued by DPIIT under Section 16, BIS Act, 2016; mandatory from 1 January 2021
  • Non-compliant listings found on Snapdeal: as recently as December 2025
  • BIS Act, 2016 — national standards body; replaced BIS Act, 1986
  • ISI mark mandatory for toys for children aged 14 years and below
  • Toys must conform to 7 Indian Standards (physical, chemical, flammability, electrical safety)
  • BIS certified toy manufacturers (as of 2023): over 900 units
  • Consumer Protection Act, 2019 — established CCPA; effective July 2020; replaced 1986 Act
  • Section 2(10), CP Act 2019 — defines "defective" goods (non-conformance to prescribed standards)
  • Section 21, CP Act 2019 — CCPA penalty: up to ₹10 lakh (first offence), ₹50 lakh (subsequent)
  • Consumer Protection (E-Commerce) Rules, 2020 — obligations on marketplace platforms
  • Other e-commerce platforms issued notices: Amazon, Flipkart; sellers: Stallion Trading Company, Electronics Bazar Store