CCPA removes nearly 4,000 explosive sellers from Indian e-commerce platforms

The Central Consumer Protection Authority (CCPA) has initiated enforcement actions against seven e-commerce platforms for allowing the sale of explosives, including ammonium nitrate and gunpowder, without verifying seller credentials. The crackdown resulted in the delisting of 3,940 sellers, with IndiaMART accounting for the majority of the removals at 3,092 entries.

Regulators stated that platforms are obligated to ensure sellers possess valid licenses from the Petroleum and Explosives Safety Organisation (PESO). The CCPA has consistently rejected claims by these companies that they are protected by "safe harbour" provisions under the IT Act, maintaining that consumer protection duties under the E-Commerce Rules are independent of such intermediary protections.

Legal challenges are currently underway. IndiaMART has challenged the CCPA’s show-cause notices in the Delhi High Court, joining a growing list of major platforms, such as Flipkart and Meta, that are disputing the authority's jurisdiction and penalties. Meanwhile, companies like Dial4Trade and ExportersIndia have already faced combined fines totaling 3 million rupees for similar regulatory breaches.

As the investigation continues, the government is moving to tighten e-commerce rules, effective in 2027. The CCPA has signaled that it will continue to hold digital marketplaces accountable for the legality of goods listed on their platforms.