CCPA imposes Rs 10 lakh penalty for online sale of explosives

The Central Consumer Protection Authority (CCPA), the country’s top consumer watchdog, has imposed a penalty of Rs 10 lakh on Dial4Trade Technologies Private Limited for facilitating the online listing, hosting, advertising and sale of ammonium nitrate on its e-commerce platform without the mandatory regulatory safeguards required under law.

The CCPA, headed by its Chief Commissioner Nidhi Khare, imposed the penalty under Sections 10, 20 and 21 of the Consumer Protection Act, 2019. “The CCPA has also directed Dial4Trade to immediately discontinue the listing, hosting, advertising or facilitation of sale of ammonium nitrate, or any other substance classified as an explosive under the Explosives Act, 1884, on its platform,” Ministry of Consumer Affairs, Food and Public Distribution said in a statement.

According to the statement, “During examination of the platform, the CCPA found that ammonium nitrate was listed and made available for purchase without adequate safeguards: the disclosure of valid PESO (Petroleum and Explosives Safety Organisation) licence details of the seller, the verification of the identity and licensed status of the buyer before purchase, mechanisms to ensure traceability of transactions as required under the Ammonium Nitrate Rules; and cautions regarding legal restrictions on the possession and use of the substance and the consequences of unauthorised possession.” “The listing was also accompanied by imagery depicting explosions and blast effects.

The CCPA observed that such imagery was likely to attract attention to the product rather than communicate its hazardous and regulated nature,” it further read. As per the statement, the action against Dial4Trade forms part of the CCPA’s ongoing examination of e-commerce platforms concerning the unauthorised online sale of hazardous chemicals, explosive substances and related precursors.

The substances under examination include ammonium nitrate, gun powder, picric acid and pentaerythritol tetranitrate (PETN). The CCPA is also monitoring several other e-commerce platforms, including IndiaMART and Justdial.

“The CCPA noted that ammonium nitrate is a regulated substance whose unauthorised sale or possession without prescribed safeguards can pose risks to public safety. The Authority reiterated that consumers rely on product listings and descriptions while making online purchases and that e-commerce platforms are required to undertake appropriate due diligence when dealing with regulated products,” the statement read.