CCPA fines Dial4Trade 10 lakh rupees for online ammonium nitrate sales

The Central Consumer Protection Authority (CCPA) has imposed a fine of 10 lakh rupees on Dial4Trade Technologies Private Limited for facilitating the online listing, advertising, and sale of ammonium nitrate. The authority found that the platform failed to implement necessary legal and safety protocols required for the sale of this controlled explosive substance.

Investigations revealed that the platform did not adequately verify the Petroleum and Explosives Safety Organization (PESO) licenses of sellers, nor did it verify the identity or legal eligibility of buyers. Furthermore, the CCPA noted that the platform allowed the purchase of very small quantities and lacked mechanisms to monitor transactions or trace usage. The authority also criticized the use of explosion-related imagery in product listings, stating such visuals could attract attention rather than serve as a warning about the substance's hazardous nature.

Dial4Trade argued that as a B2B marketplace, it was not responsible for products uploaded by third-party sellers. However, the CCPA rejected this defense, asserting that digital marketplaces must exercise due diligence when facilitating the sale of restricted items. The CCPA has ordered the platform to immediately cease all listings and sales of ammonium nitrate and any other substances classified as explosives under the Explosives Act, 1884. The authority is also investigating seven other platforms regarding the online sale of dangerous substances like gunpowder and picric acid.