CCPA Fines Dial4Trade Rs 10 Lakh for Listing Ammonium Nitrate

The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on B2B marketplace Dial4Trade Technologies Pvt Ltd for facilitating the online listing and sale of ammonium nitrate without mandatory regulatory safeguards. The order, issued by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, follows an investigation into e-commerce platforms listing hazardous chemicals and explosives. The CCPA found that the platform failed to verify the Petroleum and Explosives Safety Organisation (PESO) licences of sellers, failed to verify the licensed status of buyers, and lacked mechanisms for transaction traceability. Additionally, the authority noted that listings included images of explosions and blast effects, which were deemed to draw attention to the hazardous substance rather than communicate its regulated nature.

Dial4Trade argued that it is a B2B marketplace and that an independent third party uploaded the listing without the company's prior knowledge. The company cited its use of KYC, OTP verification, and the subsequent blocking of the seller as evidence of its compliance. However, the CCPA rejected these defenses, stating that the platform was accessible to the general public and that post-facto removal of the listing did not cure the initial failure to exercise due diligence. The authority specifically rejected the company's reliance on the intermediary safe harbour under Section 79 of the Information Technology Act, ruling that safe harbour is conditional on compliance with due diligence requirements for regulated products.

The CCPA has directed Dial4Trade to immediately stop the listing, hosting, or advertising of ammonium nitrate and any other substances classified as explosives under the Explosives Act, 1884. This action is part of a broader examination of e-commerce platforms regarding the sale of hazardous chemicals, including gun powder, picric acid, and pentaerythritol tetranitrate (PETN). The CCPA is also monitoring other platforms, including IndiaMART and Justdial.