CCPA Fines Dial4Trade Rs10 Lakh For Unauthorised Online Sale Of Ammonium Nitrate
CCPA directed Dial4Trade to immediately stop listing, hosting, advertising or facilitating the sale of ammonium nitrate — or any other substance classified as an explosive
By PTI
Published : September 2, 2026 at 5:01 PM IST
New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Dial4Trade Technologies Pvt Ltd for facilitating the listing, hosting, advertising and sale of ammonium nitrate on its e-commerce platform without mandatory regulatory safeguards.
The final order was passed by the CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, under Sections 10, 20 and 21 of the Consumer Protection Act, 2019.
The authority has directed Dial4Trade to immediately stop listing, hosting, advertising or facilitating the sale of ammonium nitrate — or any other substance classified as an explosive under the Explosives Act, 1884 — on its platform.
During its examination, the CCPA found that ammonium nitrate was listed and made available for purchase on the platform without adequate safeguards, an official statement said.
The regulator held that a product listing on a digital marketplace, communicated to the public over the internet, qualifies as an "advertisement" under Section 2(1) of the Consumer Protection Act.
It further ruled that offering a regulated explosive substance for sale like an ordinary consumer product — without informing users that its lawful purchase requires a prescribed licence — amounts to a misleading advertisement and unfair trade practice under Sections 2(28) and 2(47) of the Act.
Dial4Trade had argued that it functions as a Business-to-Business (B2B) marketplace intermediary and cannot be held liable for listings uploaded by third-party sellers.
The CCPA rejected this defence, pointing out that the platform allowed purchase of the substance in quantities as low as a single unit and lacked minimum order quantity requirements or institutional-buyer verification mechanisms typically associated with a B2B model.
The authority also held that the Consumer Protection (E-Commerce) Rules, 2020 apply to marketplace e-commerce entities regardless of how a platform describes its own business model.
The CCPA examined Dial4Trade's reliance on intermediary safe-harbour protection under Section 79 of the Information Technology Act, 2000, and observed that this protection is contingent on compliance with prescribed due-diligence norms.
It found that a compliance mechanism relying solely on reactive removal of listings after detection — rather than verification at the point of listing — was inadequate for regulated and hazardous substances. The regulator also noted that Dial4Trade had the ability to block sellers and delist products, which indicated the platform exercised control over content hosted on it.
Wider Probe Underway
The action against Dial4Trade is part of the CCPA's ongoing scrutiny of e-commerce platforms over the unauthorised online sale of hazardous chemicals, explosive substances and related precursors, including ammonium nitrate, gunpowder, Picric Acid and Pentaerythritol Tetranitrate (PETN).
The matter is currently under examination in respect of seven other platforms: IndiaMART, JustDial, Sigma-Aldrich India, Exporters India, Ibuychemikals, Alpha Chemika and TradeIndia.
The CCPA noted that ammonium nitrate is a regulated substance whose unauthorised sale or possession, without prescribed safeguards, can pose risks to public safety. It reiterated that consumers rely on product listings and descriptions while making online purchases, and that e-commerce platforms must undertake appropriate due diligence while dealing with regulated products.
The authority reaffirmed its commitment to protect consumer rights, prevent unfair trade practices, and strengthen compliance among e-commerce platforms, particularly with regard to regulated and hazardous products.
Also Read
