CCPA Fines Amazon for Misleading 'Ayodhya Prasad' Listings

India's Central Consumer Protection Authority (CCPA) has levied a fine of 100,000 rupees (approximately $1,200 USD) on e-commerce company Amazon for misleading trade practices related to the sale of sweets. The products were marketed on Amazon's platform as 'Shri Ram Mandir Ayodhya Prasad' without any authorization from the relevant temple trust.

The CCPA stated that the commercial use of the phrase for ordinary confectionery, without endorsement from the Shri Ram Janmabhoomi Teerth Kshetra Trust, constituted a deceptive practice and an affront to religious sentiments. This action followed a complaint filed in January 2024 alleging unauthorized sales of sweets under the guise of temple prasad.

An initial inquiry by the CCPA identified four such listings by Chandu Trading Company under the Bihar Brothers brand. These products, including various Indian sweets, were priced between 299 and 385 rupees and advertised for nationwide delivery. The listings prominently featured the term 'Shri Ram Mandir Ayodhya Prasad' and religious imagery.

Amazon removed the listings after receiving a show cause notice from the CCPA. While Amazon argued it was merely a marketplace and not the seller, the CCPA rejected this defense. The authority emphasized that an intermediary cannot use its 'safe harbor' status to evade its consumer protection obligations. In addition to the fine, Amazon has been directed to improve its systems for detecting misleading listings and to ensure clearer disclosure of seller information.