CCPA fines Dial4Trade ₹10 lakh over online listing of ammonium nitrate
The CCPA has fined Dial4Trade ₹10 lakh for listing and facilitating the sale of ammonium nitrate without mandatory licence verification, buyer checks and safety disclosures.
According to the CCPA, its examination found that ammonium nitrate had been made available for purchase without adequate safeguards.
NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Dial4Trade Technologies Private Limited for facilitating the online listing, advertising and sale of ammonium nitrate without the regulatory safeguards required under Indian law.
The final order was issued by the CCPA under Sections 10, 20 and 21 of the Consumer Protection Act, 2019. The Authority has also directed the platform to immediately discontinue the listing, hosting, advertising or facilitation of sale of ammonium nitrate and any other substance classified as an explosive under the Explosives Act, 1884.
Licence and buyer verification gaps
According to the CCPA, its examination found that ammonium nitrate had been made available for purchase without adequate safeguards.
These included disclosure of valid Petroleum and Explosives Safety Organisation (PESO) licence details of sellers, verification of buyers’ identity and licensed status, mechanisms for transaction traceability and appropriate warnings about legal restrictions governing possession and use.
The Authority also took note of promotional imagery accompanying the listing that depicted explosions and blast effects. It observed that such imagery could attract attention to the product rather than adequately communicate its hazardous and regulated nature.
CCPA rejects B2B marketplace defence
Dial4Trade argued that it operates as a business-to-business marketplace intermediary and should not be held responsible for listings uploaded by third-party sellers.
The CCPA rejected the argument, pointing to the platform’s listing and purchase mechanisms, including the availability of the substance in quantities as low as a single unit and the absence of minimum-order or institutional-buyer verification mechanisms normally associated with a B2B marketplace.
The Authority held that the Consumer Protection (E-Commerce) Rules, 2020 apply to marketplace e-commerce entities irrespective of how they characterise their business model.
The CCPA also examined Dial4Trade’s reliance on intermediary safe-harbour protection under Section 79 of the Information Technology Act, 2000.
It held that such protection is subject to prescribed due-diligence requirements and found that merely removing listings after they were detected was inadequate for regulated and hazardous substances. The Authority said appropriate compliance mechanisms needed to address verification at the point of listing.
E-commerce platforms under scrutiny
The action against Dial4Trade forms part of a wider CCPA examination of online platforms over the unauthorised listing and sale of hazardous chemicals, explosive substances and related precursors.
The ongoing examination covers platforms including IndiaMART, Justdial, Sigma-Aldrich India, Exporters India, Ibuychemikals, Alpha Chemika and TradeIndia.
The CCPA said the action reflects the need for e-commerce platforms to exercise greater due diligence when dealing with products subject to specific regulatory controls.
The Authority reiterated that online marketplaces have a responsibility to ensure that regulated products are not presented to consumers as ordinary commercial products without the necessary disclosures and safeguards.
Focus on consumer protection and platform accountability
The CCPA said consumers rely on online product descriptions and listings when making purchasing decisions. It therefore stressed the importance of accurate disclosures and compliance mechanisms, particularly where products are subject to heightened regulatory and public-safety requirements.
The Authority said it would continue efforts to protect consumer rights, prevent misleading advertisements and unfair trade practices, and strengthen compliance across the e-commerce sector.
The final order is available on the CCPA’s official website.
