Delhi high court overrules order restraining Amazon from selling Amway
The Division Bench of the Delhi High Court in India has overruled an order from a single judge of the same court restraining platforms such as Amazon and Snapdeal from selling goods of direct selling entities like Amway, Modicare, and Oriflame. The ruling was appreciated by intermediaries and e-commerce companies, given that both the court and the government have imposed more significant due diligence obligations on intermediaries in general. In 2019, Amway, Modicare, and Oriflame filed a lawsuit against Amazon and other e-commerce platforms, arguing that they sold their products at cheaper rates, resulting in less direct sales and financial losses. By the time, Amazon claimed to be merely an online intermediary under Section 79 of the IT Act 2000, therefore, not liable for the products that sellers offered on its website. However, the judge held that e-commerce platforms were not allowed to advertise, display, and offer for sale the products of companies that are direct selling entities without their consent.