Retail giants Amazon and Flipkart, owned by Walmart, have violated Indian quality control regulations by stocking products lacking the required standards certificate, according to India's leading government-run product certification agency.
Recent raids conducted by the Bureau of Indian Standards at warehouses in Tiruvallur district, Tamil Nadu, revealed that both companies were storing, selling, and displaying products that did not display the BIS standard mark.
An Amazon India spokesperson stated that the company is actively engaging with various stakeholders, including regulators. Meanwhile, a Flipkart spokesperson mentioned that the company collaborates with sellers to promote awareness and ensure compliance with all relevant laws. "The platform has several processes to review the listings sellers make on the marketplace and conducts regular audits to ensure compliance," the Flipkart spokesperson added.
These raids add to the challenges faced by the two leading players in India's e-commerce market, which consultancy firm Bain estimates to be valued between $57 billion and $60 billion in 2023, with projections to exceed $160 billion by 2028.
At the Amazon warehouse, officials seized 3,376 products without the standard mark, including flasks, insulated food containers, toys, and ceiling fans. From the Flipkart warehouse, they confiscated diapers, casseroles, and stainless steel water bottles.
Additionally, an anti-trust investigation last September found that both companies favored certain sellers on their shopping websites. A few weeks later, in November, investigators scrutinized several Amazon and Flipkart sellers following revelations from 2021 about internal Amazon documents indicating that the company had long prioritized small groups of sellers to circumvent Indian laws.
Amazon has denied any wrongdoing.