CCPA fines Cloudtail with Rs 1 Lakh for not complying with BIS standards

Central Consumer Protection Authority directs Cloudtail to recall and reimburse the prices of 1,033 pressure cookers sold to consumers and submit a compliance report in 45 days

The Central Consumer Protection Authority (CCPA) has imposed a fine of Rs 1 Lakh on Cloudtail India for violating the Quality Control Orders and consumer rights. 

 The company has also been asked for the price reimbursement of 1,033 pressure cookers to the consumers and is directed to submit the compliance report within 45 days.

Cloudtail, a retail company selling pressure cookers on an e-commerce platform, was issued an order for unfair trade practice by selling domestic pressure cookers in violation of mandatory standards prescribed as per the Domestic Pressure Cooker (Quality Control) Order, 2020. 

“ The company was also directed to pay a penalty of Rs 100,000 for selling domestic pressure cookers to consumers in violation of mandatory standards prescribed under the QCO and violating the rights of consumers,” said a statement from CCPA headed by Nidhi Khare, chief commissioner.

In a reply to CCPA, Cloudtail affirmed the suspension of pressure cookers import post Quality Control Orders. However, the consumer authorities found that the company did not stop the sale.

“In fact, this submission evidently indicated that despite being aware of the QCO, the company was still selling such pressure cookers to consumers at large,” said the CCPA statement.

A total of 1,033 units of pressure cookers not conforming to mandatory standards were sold by Cloudtail through Amazon e-commerce platform after notification of the QCO, it added.

The protection authority initiated the suo-moto action against e-commerce platforms for selling domestic pressure cookers in violation of compulsory standards on its e-commerce platforms.

Also, the Authority issued notices to major e-commerce platforms including Amazon, Flipkart, Paytm Mall, Shopclues, and Snapdeal.

The notices were also sent to the sellers registered under these platforms.

“Violation of standards mandated by the QCOs not only endangers public safety but can make consumers vulnerable to severe injuries including loss of life. This is a critical cause for concern, especially in the case of domestic pressure cookers, which are household goods, present in most homes near family members,” said CCPA in a statement.

The authority has also issued 'Safety Notices' under Section 18(2)(j) of the Act to alert and caution consumers against buying goods that do not hold valid ISI marks and violate compulsory BIS standards.

 The first safety notice was issued about Helmets, Pressure Cookers, and Cooking gas cylinders, and the second was issued about household goods including electric immersion water heaters, sewing machines, microwave ovens, and domestic gas stoves with LPG among other things.