Amazon fined for selling fake Ram Mandir Prasad

India's Central Consumer Protection Authority (CCPA) has imposed a fine of ₹1 lakh (approximately $1,200) on Amazon. The penalty was levied because the e-commerce giant permitted the sale of sweets and food products misrepresented as "Shri Ram Mandir Ayodhya Prasad" on its platform without the necessary authorization from the Ram Mandir Trust.

The regulatory body stated that a marketplace entity cannot selectively claim intermediary status under the IT Act to evade consumer protection obligations while simultaneously benefiting commercially from transactions on its platform. The CCPA found this to be deceptive trade practice, exploiting religious sentiments.

The issue came to light following a complaint by the Confederation of All India Traders (CAIT) to the Union Consumer Affairs Minister. CAIT alleged that Amazon engaged in deceptive practices by allowing the listing and sale of commercially produced sweets under misleading labels, falsely associating them with the Ram temple in Ayodhya.

Amazon had invoked the 'safe harbour' protection under Section 79 of the IT Act, arguing it is merely an intermediary and not liable for third-party sellers' actions. However, the CCPA rejected this defense, asserting that e-commerce rules operate on a different legal plane than the IT Act. The CCPA emphasized that consumer protection laws require platforms to take proactive measures against unfair trade practices, and intermediary status does not absolve them of these independent obligations.