CCPA Fines Dial4Trade Technologies ₹10 Lakh for Unauthorised Online Sale of Ammonium Nitrate

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on Dial4Trade Technologies for facilitating the online listing, hosting, advertising, and sale of Ammonium Nitrate on its e-commerce platform. According to the authority, these activities were conducted without the mandatory regulatory safeguards required under the law.

Alongside the monetary penalty, the CCPA has directed Dial4Trade Technologies to immediately discontinue 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, on its platform.

The final order was passed by the CCPA under Sections 10, 20, and 21 of the Consumer Protection Act, 2019. The bench was headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra.

The regulatory body stated that this action forms part of an ongoing examination of e-commerce platforms regarding the unauthorised sale of hazardous chemicals. These substances include Ammonium Nitrate, Gun Powder, Picric Acid, and Pentaerythritol Tetranitrate (PETN). Furthermore, the CCPA noted that the matter is currently under examination in respect of other platforms, including IndiaMART, Justdial, Sigma-Aldrich India, Exporters India, Ibuychemikals, Alpha Chemika, and TradeIndia. The authority also indicated that it is examining other e-commerce platforms generally for similar violations involving hazardous chemicals and explosive substances.

During its examination of the Dial4Trade platform, the CCPA found that Ammonium Nitrate was listed and made available for purchase without adequate safeguards. These missing measures included the disclosure of valid Petroleum and Explosives Safety Organisation (PESO) licence details of the seller, verification of the identity and licensed status of the buyer before purchase, and mechanisms to ensure the traceability of transactions.

The CCPA also evaluated Dial4Trade's reliance on the intermediary safe-harbour protection under Section 79 of the Information Technology Act, 2000. The authority observed that such protection remains subject to compliance with prescribed due-diligence requirements. It concluded that a compliance mechanism relying solely on the reactive removal of listings after detection, rather than conducting verification at the point of listing, is insufficient when dealing with regulated and hazardous substances.

"This development highlights the critical importance of robust compliance and pre-listing verification for digital marketplaces dealing in regulated goods. E-commerce platforms cannot rely solely on reactive measures or intermediary safe-harbour protections when hosting hazardous or explosive substances. Startups and digital platforms must build stringent due-diligence mechanisms from the ground up to verify licenses and identities before products go live, ensuring full alignment with statutory requirements and consumer safety laws." — Dr. Shishir Gupta, Founder & CEO, StartupLanes