Several Rapid Commerce Companies Receive Notices from the CCPA for Disclosure Issues

Nitin Konde, Varun Bhardwaj

Oct 23, 2024 — 3 min read

Rapid Commerce Companies Face CCPA Notices For Disclosure

Companies like Zepto, Blinkit, and nine others have received notices from the Central Consumer Protection Authority (CCPA) as part of a significant crackdown on a number of e-commerce and quick-commerce operators. According to media reports, complaints regarding suspected breaches of the Legal Metrology Act's Mandatory Declaration Rules prompted the issuance of these notices.

For these offences, the CCPA has issued notices to eleven businesses operating in this domain. Some vendors have listed goods for human consumption without mentioning the best before or expiration dates, or without including the manufacturing date. In several cases, items were marketed without following proper labelling or packaging guidelines. These are grave offences. According to a CCPA official, the regulatory agency has requested that these businesses reply to the notices.

According to sources, Swiggy, Instamart, Meesho, MyGlamm, and Snapdeal are among the other businesses that have received these notifications. The Ministry of Consumer Affairs oversees the Central Consumer Protection Authority, or CCPA.

Consumer and Consumer Forums Highlighted the Matter

Consumer forums, including LocalCircles, and consumer concerns prompted these notifications. According to Sachin Taparia, the founder of LocalCircles, hundreds of customers have complained on their website regarding these violations. Most of them mentioned that they have received goods that are nearing their best before or expiration date through fast commerce and other e-commerce platforms.

Following the required validation and due diligence, LocalCircles authorities discovered that numerous online platforms are in violation of the 2017 Legal Metrology Packaged Commodity Rules Amendment, which mandates that online platforms reveal the best before date of packaged goods.

Additionally, LocalCircles polled internet shoppers nationwide to see if they could see the best-before dates on products intended for human consumption displays. According to the poll, 57% of these customers had trouble finding this information, up from 50% in 2023.

Who is Central Consumer Protection Authority?

Established under the Consumer Protection Act, 2019, the CCPA went into effect on July 24, 2020, and is designed to regulate issues pertaining to consumer rights violations, unfair trade practices, and deceptive or false advertisements that harm consumers' interests and those of the general public.

The CCPA maintains regional offices throughout India in addition to its headquarters in Delhi, the nation's capital. A Chief Commissioner and other Commissioners chosen by the Central Government oversee the CCPA.

What Legal Metrology Act's Mandatory Declaration Rule States?

The rule mandates that important product facts, such as the maximum retail price, weight, manufacturer information, expiration date, and consumer grievance addresses, be shown on packaged goods by both online and physical merchants.

In India's largest cities, quick commerce—which provides incredibly quick delivery of groceries and everyday necessities—has become immensely popular, drawing both venture capital investment and customers. The regulatory action comes after CCPA Chief Commissioner Nidhi Khare recently stated that authorities were looking into whether rapid commerce platforms were complying with disclosure laws. As part of larger initiatives to safeguard consumer interests in digital commerce, the Consumer Affairs Ministry had previously hinted that it would take action against businesses deemed to be in violation of these rules.