Retail giants Amazon and Walmart-owned Flipkart violated Indian high quality management guidelines by stocking merchandise that didn’t have the required requirements certificates, India’s high government-run product certification company mentioned on Thursday.
Raids on warehouses operated by each companies, carried out on Wednesday by the Bureau of Indian Requirements within the Tiruvallur district of the southern Indian state of Tamil Nadu, found that the companies had violated guidelines by storing, promoting and exhibiting merchandise that didn’t carry the BIS commonplace mark, a authorities assertion mentioned.
A spokesperson for Amazon India mentioned the corporate was engaged intently with numerous stakeholders together with regulators, whereas a Flipkart spokesperson mentioned it labored with sellers to drive consciousness and to adjust to all relevant legal guidelines.
“The platform has a number of processes to overview the listings sellers make on {the marketplace}, and in addition conducts common audits to guarantee compliance,” a spokesperson for Flipkart mentioned in response to a request for remark.
The raids are the most recent headache for the 2 companies, main gamers in India’s e-commerce market which consultancy agency Bain estimated was value $57 billion (roughly Rs. 4,90,558 crore)-$60 billion (roughly Rs. 5,16,377) in 2023 and set to high $160 billion in worth by 2028.
On the Amazon warehouse, 3,376 merchandise with out the usual mark, together with flasks, insulated meals containers, toys and ceiling followers have been seized, in accordance to the assertion, whereas officers seized diapers, casseroles and chrome steel water bottles from the Flipkart warehouse.
Final September, an anti-trust investigation found that each corporations violated native competitors legal guidelines by giving choice to choose sellers on their procuring web sites.
Just a few weeks later, in November, investigators raided quite a lot of Amazon and Flipkart sellers following a 2021 Reuters investigation based mostly on inner Amazon paperwork that confirmed the corporate had for years given preferential remedy to small teams of sellers, and used them to bypass Indian legal guidelines.
Amazon has denied wrongdoing.
© Thomson Reuters 2025
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