CCPA fines Just Dial ₹10 lakh for listing sellers of explosive ammonium nitrate

New Delhi: The Central Consumer Protection Authority (CCPA) has fined Just Dial Ltd ₹10 lakh for listing sellers of ammonium nitrate, a regulated explosive substance, without adequate disclosures on licensing requirements, buyer eligibility, traceability mechanisms or the legal consequences of unauthorised possession and use, according to a government order reviewed by Mint.

In the 28-page order, the CCPA also directed the online directory platform to immediately discontinue the listing, hosting, advertising, promotion and facilitation of access to ammonium nitrate and other substances classified as explosives under applicable laws. It has given Just Dial 15 days to submit a compliance report.

Ammonium nitrate is a regulated substance whose sale, possession, transport and use are subject to statutory requirements under the Explosives Act, 1884, and the Ammonium Nitrate Rules, 2012.

The authority held that merely listing such products and facilitating access to sellers, without the necessary disclosures, could mislead consumers into believing that the products were ordinary commercial goods available for unrestricted purchase.

During its investigation, the CCPA found several listings of ammonium nitrate on Just Dial's platform, including products described as fertiliser-grade ammonium nitrate and industrial-grade granules. The listings displayed prices, product photographs, seller details, ratings and options such as “Call Now” and “Get Best Price”, allowing users to connect with sellers.

In response, Just Dial argued that it was an online directory and listing service, not an e-commerce marketplace, and as such did not sell, manufacture, store or trade in the products listed on its platform. The company also said vendors were responsible for obtaining the necessary registrations and permissions, maintaining that its listings were directory entries rather than advertisements or sale offers.

Rejecting these arguments, the CCPA said the platform could not evade its obligations merely by calling itself a directory or intermediary. The authority held that Just Dial's paid promotional services, seller-verification labels, product descriptions and lead-generation tools extended beyond passive directory services. It also noted that the company had not produced adequate records to demonstrate that its verification mechanisms were functioning effectively, adding that removing the listings after proceedings began did not erase the violation.

A senior government official said, “Being an online directory platform does not mean that one can list sellers of products that are subject to licensing requirements. They must ensure that listings comply with applicable legal requirements and follow the prescribed norms in their entirety. Listing sellers of regulated products without verifying compliance with the relevant legal requirements cannot be justified merely on the grounds that the platform does not directly sell those products”, the official added.

Manish K Shubhay, partner at The Precept Law Offices, said, “When a platform lists products subject to statutory licensing and regulatory restrictions, it must exercise appropriate due diligence and ensure that the listings do not mislead consumers about the legality of purchasing or possessing such products. The CCPA's action raises an important question about the extent of responsibility online platforms must bear when facilitating access to regulated goods.”

The order marks the first proceeding of its kind against Just Dial under Section 21 of the Consumer Protection Act, 2019, which empowers the authority to act against misleading advertisements and unfair trade practices. The CCPA also cited violations of the Consumer Protection (E-Commerce) Rules, 2020, and consumers' right to protection against hazardous goods, stating the penalty was determined based on the gravity of the violations and public safety risks.

Queries sent to the spokespersons of department of consumer affairs, Just Dial and Reliance Industries remained unanswered at the time of publishing.

The latest action follows a sector-wide examination of e-commerce entities and online platforms to assess whether they were listing hazardous chemicals, including ammonium nitrate, gunpowder, picric acid and pentaerythritol tetranitrate (PETN).

The consumer affairs ministry said on 19 October that seven online platforms had delisted 3,940 sellers and product listings involving regulated and hazardous substances.

Last month, the CCPA penalised Dial4Trade Technologies Pvt. Ltd. and Weblink.In Pvt. Ltd., which operates ExportersIndia.com, ₹10 lakh each for listing hazardous substances without adequate regulatory safeguards. The orders were issued on 1 September and 8 September, respectively. ExportersIndia was also fined ₹10 lakh in a separate case involving picric acid.

The Just Dial case is distinct because the platform primarily operates as an online business directory that connects buyers with sellers. However, the CCPA’s action signals that online directories cannot automatically escape accountability by claiming to be mere intermediaries.

This is not the first time the CCPA has penalised an online platform for listing sellers of regulated products. Previously, Reliance JioMart was fined ₹1 lakh by the consumer watchdog for misleading consumers by listing uncertified walkie-talkies, as Mint reported on 25 November 2025. Other e-commerce platforms, including Amazon, Flipkart and Meesho, have also faced penalties for similar violations.

Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.

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