Amazon moves SC challenging HC order barring sales of D2C brands

A month after Delhi High Court restrained e-commerce platforms from selling products of direct selling entities without their consent, Amazon Seller Services has moved to the Supreme Court opposing the judgement.

Amazon contest the ruling as barring e-comm platforms from selling specific categories might lead to a precedent for other categories said ET report quoting industry official aware of the development.

Direct selling platforms contribute a very less percentage to sales on e-comm platforms. Though, Amazon has not officially put out words on the matter.

Amway India believes that Delhi HC judgement was correct and in the interest of the consumers and direct sellers. The company is confident that the apex court will also arrive at the same judgement.

Indian Direct Selling Association (IDSA) chairman Vivek Katoch is hopeful that e-comm platforms and sellers would not be allowed to sell their products without consent.

In July, the Delhi HC had passed an interim order to prevent e-comm platforms from advertising, displaying or selling Amway products without direct selling brand's consent. Platforms were accused of violation of the Direct Selling Guidelines, 2016 by offering unauthorised sale.

Amway, Modicare and Oriflame, who mainly deal in healthcare and beauty products, alleged that e-comm platforms are sourcing and selling their products in an unauthorised manner at cheaper rates, resulting in financial losses to companies.

They further said that their products are being tampered and sold without unique codes and QR codes on these platforms while hiding the sellers’ names and contact details.

Delhi HC in the ruling said that irreparable injury would be caused to plaintiffs, their businesses, and all those who depend on plaintiffs’ successful business, such as employees, distributors/direct sellers, agents, and finally, the consumers if interim relief is not granted.

Earlier last year in October, Amway had dragged Flipkart to court, alleging it of unauthorised selling of the US direct-selling giant’s products. Amway also had filed cases against e-comm companies including Snapdeal and online pharma seller 1mg.com.

Soon after the Court intervention, Snapdeal complied with the Court order and had taken down products.