The selling of an explosive product such as ammonium nitrate through the online portal has been costly for Dial4Trade Technology Private Limited. The CCPA has fined the company ₹10 lakh.

While the company's portal facilitated the listing, advertisement, and sale of ammonium nitrate, it did not make sure of the validity of the buyer's license to be allowed to sell the same.

In her probe, Nidhi Khare, the Chief Commissioner of the CCPA, and Secretary of the Ministry of Consumer Affairs found that ammonium nitrate could be bought through the company's portal just like any other regular commodity.

The buyers were not asked whether they had a legitimate license to buy the product. It was also not checked whether the seller had a license for selling the same from the Petroleum and Explosives Safety Organization (PESO).

Apart from this, no information was given in relation to the legal restrictions and consequences of having such a substance illegally or unauthorizedly.

What made the matter more serious was the fact that there were illustrations relating to the explosions of the product and its consequences. As per the CCPA, the pictures were aimed at drawing the buyer's attention to the product.

The authority clarified that presenting a product in this manner on an online marketplace would also be considered advertising. Therefore, offering to sell a controlled and hazardous substance as a regular commodity and failing to provide the required licensing information constitutes misleading advertising and unfair trade practices.

Dial4Trade explained to the authority that it is only a business-to-business marketplace and that third-party sellers list products on its platform, thus excluding its responsibility. The CCPA rejected this argument. The investigation found that there was no system in place to verify the identity of any institution or authorized buyer.

The CCPA also stated that removing such listings merely after receiving a complaint is not sufficient. In the case of hazardous substances, the platform must conduct necessary verification of the seller and buyer before the sale begins. Dial4Trade had the ability to block sellers and remove products, so it cannot completely escape responsibility.

Seven other online platforms are also being investigated. In addition to ammonium nitrate, the online availability of hazardous substances such as gun powder, picric acid, and PETN is also being observed.

Indiamart, Justdial, Sigma-Aldrich India, Exports India, Ibichemicals, Alpha Chemica, and TradeIndia are also under investigation.

The CCPA states that the sale of such substances without proper verification could pose a threat to public safety. Therefore, online platforms must also ensure that prohibited substances are not readily available like common goods.

The selling of an explosive product such as ammonium nitrate through the online portal has been costly for Dial4Trade Technology Private Limited. The CCPA has fined the company ₹10 lakh.

While the company's portal facilitated the listing, advertisement, and sale of ammonium nitrate, it did not make sure of the validity of the buyer's license to be allowed to sell the same.

In her probe, Nidhi Khare, the Chief Commissioner of the CCPA, and Secretary of the Ministry of Consumer Affairs found that ammonium nitrate could be bought through the company's portal just like any other regular commodity.

The buyers were not asked whether they had a legitimate license to buy the product. It was also not checked whether the seller had a license for selling the same from the Petroleum and Explosives Safety Organization (PESO).

Apart from this, no information was given in relation to the legal restrictions and consequences of having such a substance illegally or unauthorizedly.

What made the matter more serious was the fact that there were illustrations relating to the explosions of the product and its consequences. As per the CCPA, the pictures were aimed at drawing the buyer's attention to the product.

The authority clarified that presenting a product in this manner on an online marketplace would also be considered advertising. Therefore, offering to sell a controlled and hazardous substance as a regular commodity and failing to provide the required licensing information constitutes misleading advertising and unfair trade practices.

Dial4Trade explained to the authority that it is only a business-to-business marketplace and that third-party sellers list products on its platform, thus excluding its responsibility. The CCPA rejected this argument. The investigation found that there was no system in place to verify the identity of any institution or authorized buyer.

The CCPA also stated that removing such listings merely after receiving a complaint is not sufficient. In the case of hazardous substances, the platform must conduct necessary verification of the seller and buyer before the sale begins. Dial4Trade had the ability to block sellers and remove products, so it cannot completely escape responsibility.

Seven other online platforms are also being investigated. In addition to ammonium nitrate, the online availability of hazardous substances such as gun powder, picric acid, and PETN is also being observed.

Indiamart, Justdial, Sigma-Aldrich India, Exports India, Ibichemicals, Alpha Chemica, and TradeIndia are also under investigation.

The CCPA states that the sale of such substances without proper verification could pose a threat to public safety. Therefore, online platforms must also ensure that prohibited substances are not readily available like common goods.