IndiaAn e-commerce platform sold me a counterfeit product. Who is liable?
Both the e-commerce platform (as an 'intermediary') and the seller are liable under Indian law — the platform is liable if it fails to exercise due diligence or actively participates in the sale, and the seller is strictly liable for selling counterfeit goods.
What the Law Says
Indian law holds both the seller and the e-commerce platform accountable for counterfeit products, but their liabilities differ based on roles and conduct.
Under the Consumer Protection Act, 2019, an e-commerce entity is defined as a 'product seller' if it exercises control over pricing, packaging, or branding — making it directly liable for defective or counterfeit goods. The Act treats online platforms as 'service providers' and 'sellers' where they influence the transaction.
The Information Technology Act, 2000 provides limited immunity to intermediaries (like e-commerce platforms) under Section 79 — but only if they observe 'due diligence' and do not initiate, select, or modify transmissions. If the platform promotes, authenticates, or guarantees the product, it loses this protection.
The Trademarks Act, 1999 makes any person who applies a false trademark or sells goods with a counterfeit mark liable for infringement — including sellers and platforms that knowingly host such listings.
Statutory TextAn e-commerce entity shall be considered a seller of goods or service provider, as the case may be, if it exercises control over the price, payment, delivery, or other material aspects of the transaction.
— Consumer Protection Act, 2019, s. 2(44)(ix) — Definition of 'e-commerce entity'
Statutory TextAn intermediary shall not be liable for any third party information, data, or communication link made available or hosted by him… provided he observes due diligence while discharging his duties…
— Information Technology Act, 2000, s. 79(1) — Liability of intermediaries
Statutory TextAny person who applies to his goods a false trade mark… or sells or exposes for sale any goods bearing a false trade mark… shall be punishable with imprisonment… and with fine which may extend to two lakh rupees.
— Trademarks Act, 1999, s. 103(1) — Penalties for falsification
What Courts Have Said
Indian courts have clarified when e-commerce platforms cross the line from neutral intermediaries into liable sellers.
The court held that Amazon lost its intermediary immunity under Section 79 because it exercised editorial control, offered private labels, and managed inventory — making it liable for trademark infringement by third-party sellers.
The court directed e-commerce platforms to remove counterfeit listings within 36 hours of notice and held them jointly liable when they failed to act despite repeated complaints and evidence of counterfeiting.
What to Do
Immediately file a complaint on the platform’s grievance redressal portal (mandatory under Consumer Protection Rules, 2020)
Send a written legal notice to both the seller and platform citing Sections 79 IT Act and 2(44)(ix) CPA, 2019
File a consumer complaint with the District Consumer Disputes Redressal Commission (within 2 years of purchase)
Report trademark infringement to the police under Section 103 of the Trademarks Act, 1999
Claim refund + compensation (up to ₹5 lakh for mental agony/loss under CPA, 2019)
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.