Major retailers Amazon and Flipkart, owned by Walmart, have come under scrutiny for failing to comply with Indian quality control regulations, according to the Bureau of Indian Standards (BIS), the country’s leading product certification agency. This announcement was made on Thursday following inspections conducted on Wednesday in the Tiruvallur district of Tamil Nadu.
The BIS discovered that both companies stored, marketed, and displayed a range of products lacking the essential BIS standard mark, which is required for compliance with Indian regulations, as stated in a government release.
A representative from Amazon India indicated that the company is actively collaborating with various stakeholders, including regulatory bodies, to ensure compliance. Likewise, a spokesperson for Flipkart emphasized the company’s efforts to raise awareness among sellers regarding legal obligations and to ensure adherence to laws.
“We have multiple processes in place to evaluate the listings that sellers provide on our platform, and we conduct regular audits to verify compliance,” the Flipkart spokesperson commented when reached for a response.
This incident marks another challenge for both companies, prominent figures in India’s burgeoning e-commerce sector, which, according to consultancy Bain, was valued between $57 billion (approximately Rs. 4,90,558 crore) and $60 billion (around Rs. 5,16,377 crore) in 2023, and is projected to exceed $160 billion by 2028.
During the inspections, authorities confiscated 3,376 products lacking the mandatory standard mark from Amazon’s warehouse, which included items such as flasks, insulated containers, toys, and ceiling fans. At Flipkart’s facility, officials seized diapers, casseroles, and stainless steel water bottles.
Last September, an investigation into anti-competitive practices revealed that both companies had breached local competition laws by favoring certain sellers on their platforms.
Subsequent investigations in November included raids targeting various sellers associated with Amazon and Flipkart, following findings from a 2021 Reuters report. This report indicated that Amazon had historically provided preferential treatment to a select group of sellers, circumventing Indian laws in the process.
Amazon has consistently denied any allegations of wrongdoing.
© Thomson Reuters 2025
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