Amazon and Walmart-owned Flipkart have come under scrutiny in India for violating quality control regulations by stocking products without the required standards certificate.
India’s Bureau of Indian Standards (BIS) conducted raids on the companies’ warehouses in Tiruvallur, Tamil Nadu, on Wednesday and found them storing, selling, and displaying products that did not carry the mandatory BIS standard mark, according to a government statement.
Authorities seized 3,376 non-compliant products, including flasks, insulated food containers, toys, and ceiling fans from an Amazon warehouse, while diapers, casseroles, and stainless steel water bottles were confiscated from a Flipkart facility.
These regulatory actions add to the challenges faced by the e-commerce giants in India’s fast-growing online retail market, which was valued at $57 billion-$60 billion in 2023 and is projected to surpass $160 billion by 2028, according to consultancy firm Bain.
Both companies have previously faced regulatory scrutiny. An anti-trust probe in September found Amazon and Flipkart violated local competition laws by favoring select sellers on their platforms. In November, investigators raided multiple sellers associated with the companies after a 2021 report revealed Amazon had given preferential treatment to a small group of merchants and used them to circumvent Indian laws.
Amazon has denied any wrongdoing.
