In a significant move, the High Court suspended the operations of Khadi Organic, a website accused of deceptive practices and capitalizing on public religious sentiments. The website had been offering ‘free prasad’ from the Ayodhya Ram Mandir, but controversially charging customers a ‘delivery charge’ to receive the religious offering.
The lawsuit leading to the suspension order was lodged by the Khadi and Village Industries Commission, the registered proprietor of the trademarks ‘Khadi’ and ‘Khadi India’. The Commission argued that Khadi Organic fraudulently associated itself with the Commission’s trademark and misleadingly promoted itself as the ‘official website for the sale of Ayodhya Ram Mandir prasad’.
In response, the owner of Khadi Organic, Ashish Singh, conducted a live Q&A session on YouTube, claiming that the prasad distribution was a private initiative not overseen by the Shri Ram Janmabhoomi Teerth Kshetra Trust. Singh also revealed that the website had received nearly Rs. 20 lakh in orders by January 14.
The High Court deemed Khadi Organic’s actions deceptive, stating that it exploited the Commission’s goodwill to unlawfully accumulate funds without providing confirmation receipts or dispatch proof. Consequently, the court ordered the website’s suspension and barred Khadi Organic from engaging in any manufacturing, selling, exporting, or advertising activities under the ‘Khadi Organic’ mark, highlighting the potential for irreparable harm to the Commission if the injunction was not enforced.
Simultaneously, the Central Consumer Protection Authority (CCPA) has taken action against Amazon, a leading e-commerce platform, for engaging in similar deceptive trade practices. The Confederation of All India Traders (CAIT) lodged a complaint regarding the sale of sweets with misleading claims of ‘Sri Ram Mandir Ayodhya Prasad’. Amazon promptly removed these products from its listings and initiated action against the sellers. The CCPA has given Amazon seven days to respond to the notice, warning of further action under the provisions of the Consumer Protection Act, 2019 if they fail to comply.
The deceptive practices employed by Khadi Organic and the subsequent action taken against Amazon shed light on the need for stricter regulations in e-commerce to protect consumers. In a digital world where online platforms play a crucial role in our daily lives, it is vital for authorities to ensure fair trade and prevent fraudulent practices that exploit people’s religious beliefs.
Furthermore, these incidents serve as a reminder for consumers to exercise caution when engaging in online transactions, especially when it involves religious or cultural products. A thorough investigation of sellers and their claims is necessary to avoid falling victim to deceptive practices.
As the legal proceedings continue and investigations unfold, it is essential for regulators and policymakers to address the loopholes in e-commerce regulations, creating a more secure and trusted environment for consumers.
