Are sellers required to display MRP, certification, and warranty details online?

As online shopping continues to grow in India, ensuring consumer rights and transparency in e-commerce has become a priority. Sellers on e-commerce platforms are required by law to disclose certain essential information about the products they sell. This includes the Maximum Retail Price (MRP), certifications, and warranty details. These disclosures are essential for protecting consumers from misleading practices and ensuring fair transactions in the online marketplace.

The Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020 regulate these practices to ensure that e-commerce transactions are fair and transparent. Sellers who fail to comply with these regulations could face legal consequences, including fines, removal from platforms, or disputes with consumers.

1. MRP (Maximum Retail Price) Requirement

In India, the Legal Metrology (Packaged Commodities) Rules, 2011 require that all packaged goods display the MRP. This applies to both physical stores and online marketplaces.

Legal Requirements for MRP Display

• E-Commerce Platforms: Sellers are obligated to display the MRP clearly on all packaged goods listed for sale online. This includes physical products such as electronics, furniture, clothing, and food products.
• Consumer Protection Act, 2019: The MRP must include taxes and cannot exceed the price printed on the product. Any discounts or special offers must also be clearly displayed, and the MRP must not be misleading.
• Penalties for Non-Compliance: If a seller fails to display the MRP or charges more than the MRP, they could face fines or legal action by consumer authorities. Sellers found guilty of misleading pricing may be penalized under the Consumer Protection Act.

Example

• If a seller lists a product online without MRP or with an incorrect MRP, consumers can file complaints. The platform may remove the listing, and the seller could face fines for non-compliance with pricing laws.

2. Certification Details

Certain products, especially healthcare products, electronics, and food items, require specific certifications to ensure safety and quality. The law mandates that sellers provide these details when applicable.

Legal Requirements for Certification Display

• E-Commerce Platforms: Sellers must display certification details for products that require specific regulatory approvals, such as:
• ISI certification for quality (for items like electrical products).
• FSSAI certification for food products.
• CE certification for imported goods.
• Consumer Protection (E-Commerce) Rules, 2020: These rules require sellers to ensure that certification information is clearly listed in the product description on e-commerce platforms, especially for products that could pose risks if uncertified (like electronics or medicines).
• Penalties for Misleading Claims: If a product is listed without the required certifications, or if the certification details are misleading or false, the seller may face legal action for false advertising or misrepresentation. The platform may also be liable for hosting non-compliant listings.

Example

• A seller lists a water purifier with a claim of ISI certified but fails to provide the certification details. The consumer authority could investigate the seller and impose penalties for making a misleading claim. The platform could also be fined for failing to monitor the product listing for compliance.

3. Warranty Information

The Consumer Protection Act, 2019 mandates that all sellers clearly display warranty and guarantee details for products, especially durable goods like electronics, appliances, and furniture.

Legal Requirements for Warranty Information

• Clear Display of Warranty Terms: Sellers must provide specific details on the warranty duration, what is covered under the warranty, and how consumers can claim repairs or replacements.
• Consumer Protection Act, 2019: Consumers have the right to warranty claims. If a seller fails to honor the warranty, the consumer can file a complaint and seek compensation or a replacement.
• Penalties for False Warranty Claims: If a seller falsely claims a warranty or does not honor the warranty, they could face legal action. Platforms hosting these sellers might also face penalties for failing to ensure compliance with warranty disclosure laws.

Example

• A consumer buys a television online that is listed with a one-year warranty. However, when the consumer tries to claim the warranty, the seller refuses to honor it. The consumer can file a complaint under the Consumer Protection Act, and the seller could be ordered to provide a replacement or refund. The e-commerce platform may also face penalties for hosting a non-compliant listing.

Legal Enforcement and Penalties for Non-Compliance

Consumer Protection Act, 2019

• The Consumer Protection Act mandates that all sellers disclose accurate product information, including MRP, certification, and warranty details. Failure to comply can result in penalties, bans from selling on platforms, and consumer complaints.

E-Commerce Platforms' Responsibility

• Under the Consumer Protection (E-Commerce) Rules, 2020, e-commerce platforms are responsible for ensuring that the sellers they host comply with product listing regulations. If a seller fails to display MRP, certifications, or warranty information, the platform can face legal scrutiny and may be penalized for hosting such products.

Regulatory Oversight

• Regulatory authorities, such as the Department of Consumer Affairs, can inspect e-commerce transactions and enforce compliance. Sellers who fail to disclose required information may face fines, removal of listings, or other legal actions.

Example of Legal Action

• A consumer purchases a kitchen appliance online, which is advertised with a two-year warranty. When the appliance breaks down, the seller refuses to honor the warranty, claiming that the product was not eligible for the warranty. The consumer can file a complaint with the National Consumer Disputes Redressal Commission (NCDRC).
• Step 1: The seller is required to provide evidence of the warranty terms and honor the claim or issue a refund.
• Step 2: If the seller fails to comply, the NCDRC could order a refund or replacement and impose penalties on the seller.
• Step 3: The platform may also be held vicariously responsible for the non-compliant listing and could face fines or other sanctions.

Conclusion

• Yes, sellers are required to display MRP, certification details, and warranty information for products listed online under Indian e-commerce law. The Consumer Protection Act, 2019 and the Consumer Protection (E-Commerce) Rules, 2020 mandate that e-commerce platforms and sellers provide clear and accurate product information to ensure consumer protection and transparency.
• Failure to comply can result in penalties, consumer complaints, and platform sanctions, ensuring that consumers are not misled or harmed during online transactions.