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Amazon, Flipkart found to have violated Indian quality control rules during warehouse raids
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Amazon, Flipkart found to have violated Indian quality control rules during warehouse raids
Mar 20, 2025 6:25 AM

March 20 (Reuters) - Retail giants Amazon ( AMZN ) and

Walmart ( WMT )-owned Flipkart violated Indian quality control

rules by stocking products that did not have the required

standards certificate, India's top government-run product

certification agency said on Thursday.

Raids on warehouses operated by both firms, conducted on

Wednesday by the Burueau of Indian Standards in the Tiruvallur

district of the southern Indian state of Tamil Nadu, found that

the firms had violated rules by storing, selling and exhibiting

products that did not carry the BIS standard mark, a government

statement said.

Amazon ( AMZN ) and Flipkart did not immediately respond to requests

for comment.

The raids are the latest headache for the two firms, leading

players in India's e-commerce market which consultancy firm Bain

estimated was worth $57 billion-$60 billion in 2023 and set to

top $160 billion in value by 2028.

At the Amazon ( AMZN ) warehouse, 3,376 products without the standard

mark, including flasks, insulated food containers, toys and

ceiling fans were seized, according to the statement, while

officials seized diapers, casseroles and stainless steel water

bottles from the Flipkart warehouse.

Last September, an anti-trust investigation found that both

companies violated local competition laws by giving preference

to select sellers on their shopping websites.

A few weeks later, in November, investigators raided a

number of Amazon ( AMZN ) and Flipkart sellers following a 2021 Reuters

investigation based on internal Amazon ( AMZN ) documents that showed the

company had for years given preferential treatment to a small

groups of sellers, and used them to bypass Indian laws.

Amazon ( AMZN ) has denied wrongdoing.

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