The Delhi High Court recently observed that there is an obligation on the E-Commerce platforms to ascertain that complete details of the sellers are available on their respective site so that consumers are aware of the sellers from whom the product has been purchased, as well as the entity who is listing the product.
Justice Sanjeev Narula underlined that The Consumer Protection (E- Commerce) Rules, 2020, notified on 23rd July, 2020, imposes an obligation as per section 5, on the e-commerce platform to give the full geographic address, customer care number, rating and other feedback about the seller for enabling consumers to make informed decision at the pre-purchase stage.
Mentioning the role of e-commerce platforms in offering new opportunities for small designers and enterprises, the court remarked that it is imperative that such platforms are not exploited to facilitate the duplication of products and the infringement of intellectual property rights.
The court made the aforesaid observations while dealing with a suit filed by a retailer selling clothing items, Abhi Traders, on the e-commerce platform Meesho.com. The suit was lodged against the e-commerce platform and 8 alleged unlawful and unauthorized operators who were offering for sale garments by misusing its photographs and images.
Additionally, it was also filed against unknown identities that may either be one or various unlawful parties who were using Abhi Trader’s product images to sell various products.
Passing a John Doe judgment in favour of the plaintiff retailer, the court remarked that the defendants were egregiously exploiting Abhi Trader’s product images, listing visuals, and product designs for their financial gain, hence leveraging the retailer’s reputation.
The Delhi High Court restrained the 8 known defendants, along with any other sellers who were showcasing their products on the Meesho.com platform, from reproducing, copying, publishing, or imitating any designs of the plaintiff’s clothing.The court added that this injunction also extends to the prohibition against reproducing any images related to the Plaintiff’s products, including photographs.
The court further restrained the defendants from duplicating any of the plaintiff’s designs or images belonging to it, concerning its clothing line. The High Court directed Meesho.com to furnish all the available details of the sellers in question, including the address, mobile numbers, email addresses, total sales made by the sellers, GST details, payments made to them since the time listings had been put up.
It also ordered that Meesho.com must take definitive action to ensure that the geographic address of all sellers is clearly displayed in the invoice published on its platform.
The court explained that this would enhance transparency and accountability among sellers utilizing the platform, providing easier resolution of any disputes or inquiries related to copyright or trademark infringement, and ensuring compliance with legal and regulatory requirements.