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• The Central Consumer Protection Authority (CCPA) imposed a ₹1 lakh penalty on Amazon for allowing ordinary sweets to be sold as 'Shri Ram Mandir Ayodhya Prasad' without authorization.
• Amazon was deemed responsible for hosting, displaying, and facilitating the sale of these products, which were found to be misleading advertisements.
• The CCPA's decision is based on its interpretation of Section 79 of the IT Act and the Consumer Protection Act (CP Act).
• This case highlights the importance of content moderation policies and trademark rights in India.

The commercial appropriation of this phrase for ordinary confectionery products, without any authorization from the Shri Ram Janmabhoomi Teerth Kshetra Trust, constitutes not just a misleading trade practice under the CP Act but an affront to the religious sentiments of crores of consumers.

The Central Consumer Protection Authority (CCPA) has taken action against Amazon Seller Services Private Limited, imposing a ₹1 lakh penalty for allowing ordinary sweets to be sold on its platform as 'Shri Ram Mandir Ayodhya Prasad' without proper authorization. The sweets in question were listed by Chandu Trading Company under the brand Bihar Brothers and included ghee ladoos, khoya ladoos, boondi ladoos, and cow milk pedas.

The CCPA observed that the use of religious imagery and phrases on these products would be understood as an affront to the sentiments of devotees. The authority held Amazon responsible for hosting, displaying, and facilitating the sale of these products, which it deemed a misleading trade practice under the CP Act.

The CCPA's decision is based on its interpretation of Section 79 of the Information Technology Act (IT Act), which provides safe harbour protection to intermediaries. However, in this case, Amazon was deemed not to be eligible for this protection since it was party to the publication of misleading advertisements. The authority also relied on the Consumer Protection Act (CP Act) to justify its decision.

The Ram Mandir Trust's trademark rights were also a key consideration in the CCPA's order. The trust had not authorized the use of their name or imagery for commercial purposes, and Amazon was found to have infringed upon these rights by allowing the sale of these sweets on its platform.

The CCPA's decision sends a strong message to e-commerce platforms about the importance of content moderation policies. Lawyers advising these platforms should review their guidelines to ensure compliance with the Central Consumer Protection Authority's (CCPA) guidelines on misleading advertisements, particularly when it comes to using religious imagery and phrases without proper authorization.

This case highlights the need for companies to be mindful of trademark rights and intellectual property laws in India. The CCPA's order also underscores the importance of protecting consumer interests and preventing misleading trade practices.

Lawyers advising e-commerce platforms should review their content moderation policies to ensure compliance with the Central Consumer Protection Authority's (CCPA) guidelines on misleading advertisements, particularly when it comes to using religious imagery and phrases without proper authorization.

Source: Original reporting via Business Standard