Consumer Authority Fines Dial4Trade Rs 10 Lakh Over Ammonium Nitrate Listings

New Delhi – India's Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on B2B marketplace Dial4Trade Technologies Pvt Ltd for listing and facilitating the sale of ammonium nitrate. The authority found that the platform failed to establish that sellers held the required licenses or that buyers were authorized to purchase the substance.

The CCPA also rejected Dial4Trade's reliance on intermediary safe harbor under Section 79 of the Information Technology Act, stating the platform had not demonstrated adequate due diligence for regulated products. The listings included pricing, packaging details, and a contact option, along with images depicting explosion effects, which the CCPA deemed intentionally highlighted the hazardous nature of the chemical.

An investigation revealed Dial4Trade had not verified seller licenses or buyer eligibility, nor provided warnings about licensing requirements and legal restrictions. The company argued it was merely a B2B marketplace and that a third party had uploaded the listing without its knowledge, asserting it neither promoted nor endorsed the sale, and no direct transactions occurred through it.

However, the authority determined the platform was accessible to the general public, not just institutional buyers. It emphasized that intermediary safe harbor requires proactive safeguards, not just contractual clauses or post-incident actions. Factors including the dangerous nature of the product, the use of explosive imagery, and the company's non-cooperation influenced the CCPA's decision to impose the penalty.

The CCPA has directed Dial4Trade to pay the fine, immediately cease listing or facilitating the sale of ammonium nitrate and other substances classified as explosives under law, and submit a compliance report within 15 days.