The Central Consumer Protection Authority (CCPA) has levied a penalty of Rs 1 lakh on Amazon Seller Services Private Limited (Amazon India) for misleading product listings advertised as 'Shri Ram Mandir Ayodhya Prasad.' This action, announced in mid-February 2024, follows an investigation initiated by the CCPA based on multiple consumer grievances regarding the authenticity and origin of such products sold on the e-commerce platform.

The CCPA's intervention underscores growing regulatory scrutiny over product claims and advertising practices on online marketplaces, particularly concerning items with religious or cultural significance. The investigation revealed that numerous sellers on Amazon's platform were offering sweets, modaks, and other food items using names that explicitly suggested they were 'prasad' (sacred offering) from the recently consecrated Shri Ram Janmabhoomi Temple in Ayodhya. These included titles such as "Shri Ram Mandir Ayodhya Prasad," "Ram Mandir Ayodhya Prasad," and "Shri Ram Janmabhoomi Ayodhya Prasad."

The regulatory body determined that these listings constituted unfair trade practices and misleading advertisements under the Consumer Protection Act, 2019. The CCPA emphasized that such product descriptions had the potential to exploit the religious sentiments of consumers and deceive them into believing they were purchasing authentic offerings from the Ayodhya temple. A critical point highlighted by the CCPA was the explicit clarification from the Shri Ram Janmabhoomi Teerth Kshetra Trust, which manages the Ayodhya temple, stating that it does not authorize the sale or distribution of any 'prasad' online or through physical channels. This clarification was crucial in establishing the misleading nature of the listings.

While Amazon operates as an intermediary connecting buyers and sellers, the CCPA held the e-commerce giant responsible for failing to conduct adequate due diligence regarding the veracity of claims made by sellers on its platform. The authority asserted that Amazon has an obligation to ensure that products listed do not engage in unfair trade practices or present misleading information to consumers.

Following the CCPA's directive, Amazon India was instructed to remove all such misleading listings from its platform immediately. The company was also directed to furnish details of the sellers involved in these deceptive practices. Amazon has reportedly complied with these directives, removing the impugned listings from its e-commerce portal.

The penalty imposed on Amazon sends a clear signal to e-commerce platforms about their accountability in preventing deceptive practices. It reinforces the need for robust mechanisms to verify product claims, especially for sensitive categories. This incident is expected to prompt increased vigilance from online marketplaces regarding seller compliance and advertisement accuracy, aiming to safeguard consumer trust and ensure fair trading practices across the digital retail landscape.