E-commerce platforms restrained from selling exclusive products
The Delhi High Court has ruled that e-commerce platforms like Amazon, Flipkart, Healthkart and Snapdeal are not allowed to advertise, display and offer for sale the products of companies that are direct selling entities without their consent. The lawsuit was filed by Amway, Modicare and Oriflame, direct selling companies of healthcare and beauty products. They claimed that the platforms sell their product at cheaper rates, resulting in financial losses. The e-commerce platforms argued that they were merely intermediaries under Section 79 of the IT Act 2000, therefore, not liable for the products that different sellers offer on their marketplaces.