Amazon India country of origin

Amazon India is fined for Rs. 75,000 over ‘country of origin’ rules violation

Amazon India has been asked by the consumer affairs ministry to pay a fine of Rs. 75,000 for violating ‘country of origin’ rules. Amazon India is found guilty of not showing ‘origin of the country’ on several products.

Why Amazon India fined

In October, the consumer affairs ministry sent a notice to both Flipkart and Amazon India for violating ‘country of origin’ rules. Officials said Amazon was not able to show evidence of display of ‘country of origin’ on lots of products so it is penalized. Inversely, Flipkart was able to respond with valid evidence so, it was not fined.

“If you are willing to close the matter departmentally, you can compound the case as per section 48(1) of the Act on payment for credit to the government an amount of Rs 25,000 each on behalf of each director plus Rs 25,000 on behalf of the company,” The Legal Metrology department, wrote to Amazon Seller Services last week.

Sources said the ministry found two directors responsible for violation of rules. The department had earlier gave notices to both Flipkart and Amazon for violating rules on October 16.

Between the lines

Both e-commerce firms informed the ministry that in the past months, it had removed many sellers from the platform due to non-compliance with ‘country of origin’ rules.

When was the rule formed

The Legal Metrology (Packaged Commodity) Rules, 2011, came into effect from January 2018 for e-commerce platforms, mandates displaying country of origin on packaged products. As per the rules, if any firm is found violating it then the fine is 25,000 for the first time, 50,000 for the second time, and for a subsequent violation, it could lead to jail terms.