Amazon and Flipkart Under Scrutiny for Alleged Quality Control Violations
Unmesh Gujarathi
Sprouts News Exclusive
In a significant development, leading e-commerce platforms Amazon and Walmart-owned Flipkart have come under the scanner of Indian regulatory authorities for allegedly violating national quality control standards. The Bureau of Indian Standards (BIS), the country’s premier product certification agency, conducted raids on the warehouses of both companies, uncovering products lacking the mandatory BIS certification mark.
On March 19, 2025, BIS officials executed search and seizure operations at warehouses operated by Amazon and Flipkart in the Tiruvallur district of Tamil Nadu. The raids revealed that both companies were storing, selling, and exhibiting products without the requisite BIS standard mark, a clear violation of Indian regulations.
At the Amazon facility, authorities seized 3,376 items, including flasks, insulated food containers, toys, and ceiling fans. Similarly, the Flipkart warehouse housed uncertified products such as diapers, casseroles, and stainless steel water bottles.
In response to the allegations, a spokesperson for Amazon India stated that the company is actively engaging with various stakeholders, including regulators, to address the issue. Flipkart, on the other hand, emphasized its commitment to compliance, noting that it collaborates with sellers to ensure adherence to all applicable laws. The company highlighted its processes for reviewing seller listings and conducting regular audits to maintain compliance standards.
This incident adds to the mounting regulatory challenges faced by both e-commerce giants in India. In September 2024, an anti-trust investigation concluded that Amazon and Flipkart had violated local competition laws by favoring select sellers on their platforms. Subsequently, in November 2024, investigators raided several sellers associated with these platforms, following reports that the companies provided preferential treatment to a small group of sellers, potentially circumventing Indian laws.
The Indian e-commerce market, valued at approximately $57 billion to $60 billion in 2023, is projected to surpass $160 billion by 2028, according to consultancy firm Bain. The recent regulatory actions against Amazon and Flipkart could have significant implications for their operations and the broader e-commerce landscape in India. Compliance with national standards is crucial for maintaining consumer trust and ensuring fair competition in this rapidly expanding market.
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The BIS’s enforcement actions against Amazon and Flipkart underscore the importance of adhering to quality control regulations in India’s e-commerce sector. As the industry continues to grow, regulatory bodies are likely to intensify their oversight to protect consumer interests and uphold market integrity. Both companies will need to navigate these challenges carefully to sustain their positions in one of the world’s most dynamic e-commerce markets.