GOI issues “Show Cause” notice to Amazon and 20 others over sale of refurbished smartphones in India
A “show cause” notice has been issued by Government of India, to Amazon for importing and selling used and refurbished smartphones in India. Along with Amazon, 20 other e-commerce companies including Snapdeal, eBay, Olx and Quikr have also received such notice from the government.
According to the Ministry of Environment, importing used/refurbished mobile phones into the country for resale is a violation of both hazardous and other waste (management & transboundary movement) rules and e-waste (management and handling) Rules. Last month, the environment ministry issued a notice to Amazon “to stop the import/shipment of used and/or refurbished EEE immediately”. It also threatened to initiate action against the company under Section 5 of the Environment (Protection) Act.
The order from the government stated that:
“In case the e-commerce fails to comply with the above directions from the date of issue of this direction, the ministry will be constrained to initiate proceedings against the said company under provisions of Section 5 of the Environment (Protection) Act.”
If a company sells such imported devices, it is violating Section 5 of the Environment (Protection) Act, which outlines how hazardous, other waste and e-waste should be handled. Violation of Section 5 could get the offender up to five years of jail time or a fine of USD 1500 or both. Under Section 15 of the Environment (Protection) Act, the maximum punishment is five years in jail and/or Rs 1 lakh fine.
India does allow sale of refurbished and used smartphones in the country, but additional approval is required for importing such devices in India. Amazon announced selling of such devices earlier last month, given that India is a big market for used and refurbished phones. Per reports, in last one year alone, around seven million such phones were sold in the country
Amazon spokesperson said in a statement:
“We are compliant and will always remain compliant with local laws. Amazon.in is a marketplace where goods are all sold by third party sellers. However, we have noted the concerns flagged by the Ministry of Environment and are conducting a detailed evaluation, working closely with our sellers, partners and the government to ensure our commitment to compliance continues.”