Delhi High Court restrains e-commerce majors from selling products of direct sellers

By

Maverick Martins

Published
Jul 10, 2019

E-commerce majors like Amazon, Flipkart and Snapdeal have been barred by the Delhi High Court from selling health and beauty products of direct sellers Amway, Modicare and Oriflame, without their consent.
 

The three direct sellers had alleged that products under their brands were being sold on the e-commerce platforms at cheaper rates resulting in financial losses. They also said that the goods could be tampered with or counterfeited.
 
The court observed that the conditions of the goods had been changed based on a report submitted by local commissioners who inspected the warehouses of the e-commerce platforms.

"The minimum conduct expected of the platforms is adherence to their own policies, which they have failed to do in the present case.
 
"Thus, this court has no hesitation in holding that the continued sale of the plaintiffs' (Amway, Modicare and Oriflame) products on the e-commerce platforms, without their consent, results in inducement of breach of contract, and tortious interference with contractual relationships of the plaintiffs with their distributors," the court said in its 225-page interim order.
 
"The plaintiffs have, therefore, established a prima facie case. Balance of convenience is in favour of plaintiffs. Irreparable injury would be caused to plaintiffs, their businesses, and all those who depend on plaintiffs' successful business, such as employees, distributors/direct sellers, agents, and finally the consumers, if interim relief is not granted," the court said.