Amazon, Flipkart restrained from selling Amway products without consent
23 Jul 2019 08:58 pm
The Delhi High Court has restrained e-commerce platforms Amazon, Flipkart, Healthkart, and Snapdeal from advertising, displaying or offering for sale products belonging to Amway without its consent.
It was Amway’s case that its trademark and tradename, AMWAY, was being used on e-commerce platforms without its consent. It was claimed that several sellers were selling its products on the e-commerce websites in violation of the Direct Selling Guidelines, 2016.
It was further alleged that cosmetics, health products, nutrition products etc. were being sold without their unique code on the upper cap and internal seal of the products. It was also apprehended that the goods, which were being offered at a much lesser rate, might not be genuine. It was further stated that Amway’s 100 percent return policy was not being honoured by these sellers.
Such uncontrolled selling of its products through an unauthorized channel, Amway argued, was causing wrongful loss to the company, as its brand value was being diluted and eclipsed.
The Court further remarked,
"In the world of commerce and trade, e-commerce is here to stay. It has changed the dynamics of the conduct of businesses. The companies and entities, which run e-commerce platforms, have a greater obligation to maintain the sanctity of contracts, owing to the sheer magnitude and size of their operations. When an e-commerce platform is notified of existing contracts and violation of the same on its platform, the least that the platform would have to do would be to ensure that it is not a party, which encourages or induces a breach."
Amway India enterprises ltd. Vs 1MG Technologies Pvt. Ltd. , Delhi High Court
CS (OS) 410/2018
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