Robert Besser
29 Mar 2025, 00:12 GMT+10
NEW DELHI, India: E-commerce giants Amazon and Flipkart are under fresh scrutiny in India after government raids led to the seizure of uncertified consumer products from their warehouses.
The Bureau of Indian Standards (BIS), India's state-run product certification agency, said it confiscated items from Amazon and Flipkart facilities in Delhi earlier this month as part of a broader crackdown on the sale of goods that do not comply with mandatory quality standards.
The raids follow similar actions last week in Tamil Nadu, where officials seized products from both companies that lacked the required certification markings. At the time, Amazon and Flipkart—India's two largest online retailers—said they operate in accordance with local regulations.
A spokesperson for Amazon India said the company is "engaged closely with various stakeholders, including regulators." Flipkart, which Walmart owns, did not respond to requests for comment on the latest seizures in Delhi.
According to the BIS, products, including water heaters and food mixers, worth approximately Rs. 7 million (US$81,561) were confiscated from an Amazon subsidiary's warehouse in Delhi. The agency said the items either carried counterfeit certification labels or none at all.
In a separate raid, officials seized nearly $7,000 worth of sports shoes from a Flipkart warehouse. The products were marked for dispatch but lacked the proper BIS certification marks.
Both companies play a dominant role in India's rapidly growing e-commerce industry, which was valued at between $57 billion and $60 billion in 2023, according to consultancy Bain. The market is projected to exceed $160 billion by 2028.
The warehouse raids come at a time when the companies are already under regulatory pressure in India. In September 2023, an antitrust investigation concluded that Amazon and Flipkart had violated competition rules by favoring certain sellers on their platforms.
In 2021, a Reuters investigation based on internal Amazon documents alleged that the company had systematically given preferential treatment to a small group of sellers and used them to circumvent local laws. Amazon denied any wrongdoing at the time.
Get a daily dose of Malaysia Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.
More InformationSHANGHAI, China: As global demand for electric vehicles continues to rise, China's BYD is looking to double its overseas sales to over...
BENGALURU, India: A major regulatory breakthrough in India could mark a turning point for Starlink, Elon Musk's satellite internet...
The death toll in Friday's massive earthquake in Myanmar has risen to 1,644, and is expected to rise significantly. At least another...
NEW DELHI, India: E-commerce giants Amazon and Flipkart are under fresh scrutiny in India after government raids led to the seizure...
By Ayushi Agarwal Bangkok [Thailand], April 2 (ANI): Prime Minister Narendra Modi's visit to Thailand marks a significant diplomatic...
Dhaka [Bangladesh], April 2 (ANI): The 25th Session of the BIMSTEC Senior Officials' Meeting (SOM) commenced today in Bangkok, Thailand,...
NEW YORK, New York - U.S. stock markets traded sideways on Tuesdays as investors weighed up the impact U.S. Preident Donald Trump's...
NEW YORK CITY, New York: A drop in mortgage rates and more housing inventory helped drive a surge in mortgage activity at Bank of America...
WASHINGTON, D.C.: U.S. President Donald Trump said this week he would work to see federal funding end for news outlets NPR and PBS....
LONDON/NEW YORK CITY: A cup of coffee could soon cost you a lot more. Roasters worldwide are warning of double-digit price hikes as...
NEW YORK, New York - Industrial stocks advanced while the tech sector was under considerable prressure Monday as Liberation Day, approaches....
BERLIN/DETROIT: Automakers worldwide are bracing for the impact of sweeping new U.S. tariffs that could reshape global vehicle production...