MC EXCLUSIVE BIS to sue Amazon and Flipkart, seek compensation for non-certified goods

Under the BIS Act 2016, the authority has powers to seek compensation of up to ten times the value of non-certified goods sold.

The Bureau of Indian Standards (BIS) is planning to sue e-commerce sellers Amazon and Walmart-owned Flipkart and seek compensation from the platforms for allegedly selling non-BIS certified goods on their platforms, said people with direct knowledge of the matter.

The development comes after BIS raided the warehouses of Amazon and Flipkart in March this year, when it seized goods that the government body described as non-certified.

The compensation sought from the court would be based on the value of the seized goods, people cited above added. Under the BIS Act 2016, the authority has powers to seek compensation of up to ten times the value of non-certified goods sold. Moreover, the agency also has powers to prosecute the companies for lapses. The case will be filed before a magistrate’s court.

BIS, an agency under the Consumer Affairs Ministry, oversees developing and implementing standards for various goods and services and services in India.

Both Amazon and Flipkart did not immediately respond to requests for a comment.

In March this year, two teams of BIS officials conducted an enforcement search and seizure raid operation at the warehouses of leading e-commerce giants Amazon and Flipkart. During the raids, non certified insulated flasks, insulated food containers, metallic potable water bottles, ceiling fans, toys, baby diaper, casserole/insulated hotpot, stainless steel water bottle, insulated steel bottle products seized, BIS had said in a statement on March 19.

During the search operation at Amazon facilities in Chennai, BIS seized more than 3,000 products lacking the mandatory BIS standard mark. The seized items—including insulated flasks, food containers, metallic water bottles, ceiling fans, and toys—were valued at Rs 36 lakhs, the agency said.

In the case of Flipkart,  seized items included 286 packs of baby diapers (each containing 42 pieces), 36 boxes of casseroles, 26 stainless steel water bottles, and 10 insulated steel bottles. These products were in violation of Quality Control Orders that prohibit the sale or storage of such items without a valid BIS certification, according to the official statement. BIS did not mention the value of products seized from Flipkart.