The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Dial4Trade Technologies Private Limited for facilitating the online sale of ammonium nitrate on its e-commerce platform without the necessary regulatory safeguards.

Regulatory Violations

The penalty was imposed under Sections 10, 20, and 21 of the Consumer Protection Act, 2019. The CCPA, led by Chief Commissioner Nidhi Khare, has directed Dial4Trade to immediately cease the listing, hosting, advertising, or facilitation of the sale of ammonium nitrate or any other substance classified as an explosive under the Explosives Act, 1884.

Findings of the CCPA

During its examination, the CCPA found that ammonium nitrate was listed for purchase without adequate safeguards, including:

  • Disclosure of valid PESO (Petroleum and Explosives Safety Organisation) licence details of the seller.
  • Verification of the identity and licensed status of the buyer before purchase.
  • Mechanisms to ensure traceability of transactions as required under the Ammonium Nitrate Rules.
  • Cautions regarding legal restrictions on possession and use of the substance.