Delhi HC stresses transparency on e-commerce platforms, orders disclosure of seller details

New Delhi: The Delhi High Court has held that there is an obligation upon the e-commerce platforms to provide comprehensive seller details to consumers, ensuring transparency and informed decision-making.

Justice Sanjeev Narula, in a recent order, noted the Consumer Protection (E-Commerce) Rules, 2020, mandate platforms to furnish complete geographic addresses, customer care numbers, ratings, and feedback about sellers to empower consumers during the pre-purchase phase.

While recognising the opportunities e-commerce platforms offer small designers and enterprises, the court noted the need to prevent their exploitation for product imitation and intellectual property rights infringement.

The court was hearing a plea filed by clothing retailer Abhi Traders against e-commerce platform Meesho.com and eight alleged unauthorised operators misusing its product images.

Noting the defendants' appalling exploitation of Abhi Trader's visuals and designs for financial gain, Justice Narula issued an ex-parte ad interim injunction in favour of the plaintiff.

The injunction prohibits the defendants, including other sellers on Meesho.com, from reproducing or imitating the plaintiff's clothing designs and images.

Moreover, Meesho.com is directed to disclose sellers' details, including addresses, mobile numbers, email addresses, sales data, and GST details, and promptly remove infringing listings.

Notably, this is not the first time the high court has observed and ordered e-commerce platforms to provide complete details of sellers on their websites.

Earlier, Justice Prathiba M. Singh in a suit filed by clothing brand Tibra Collection against various entities for advertising and selling copied garments on Meesho, had issued a similar order.

She had noted that the defendants were misusing Tibra Collection's product images and designs, and, in some instances, deliberately concealing the copying.

Justice Singh had said that it was a case where the defendants were completely misusing the plaintiff’s product and listing images as well as the product design to monetarily ride on its reputation. As a result, the court issued an ad-interim injunction order, restraining known defendants and other sellers on the Meesho platform from reproducing, copying, publishing, or imitating any of Tibra Collection's clothing designs or images, including photographs.

The court had also asked Meesho.com to disclose detailed information about the sellers, such as their addresses, mobile numbers, email addresses, total sales, GST details, and payments made to the sellers.

"If there are any payments, which are still to be made by Defendant No.1 to the sellers, the same shall be held back till further orders," the court had ordered.