The Bureau of Indian Standards (BIS) in India raided e-commerce companies Amazon and Flipkart warehouses and seized a large number of products. According to officials, these products were either not the required quality control mark or were being sold with a fake certification label.
Geyser and food mixers worth about Rs 70 lakh or $ 81,561 were seized from the warehouse of an Amazon subsidiary in Delhi. Action was also taken on Flipkart unit, where sports shoes worth about $ 7,000 were seized.
These shoes were ready to send, but they did not have the necessary production certification. BIS officials said that recently raids were also conducted on the warehouses of both companies in Tamil Nadu. There too a large number of products were being stored and displayed without quality labels.
Companies in legal crisis
Amazon and Flipkart have already faced many regulatory challenges in India. In September last year, an anti-competition investigation accused the two companies of violating competition laws. The report states that this benefited a few selected vendors, while small and medium -sized businesses were damaged.
In 2021, a investigative report by Reuters claimed that Amazon had preferred selected vendors and sidelined the Indian rules. However, Amazon has denied these allegations.
Effect on e-commerce market
India’s e-commerce sector is growing rapidly. According to a report by Ben Consultancy, it will be between $ 57 to 60 billion in 2023 and can cross $ 160 billion by 2028.
But recently, due to strictness and legal disputes of BIS, new challenges can arise for big companies like Amazon and Flipkart. Now it remains to be seen what changes these companies bring in their functioning and what attitude on this matter.
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