Introduction:

In a significant ruling, the Delhi High Court addressed the issue of counterfeit products being sold through e-commerce platforms, particularly focusing on the “latching-on” feature that allows multiple sellers to list products under an existing listing. The case originated from a lawsuit filed by a furniture brand against an e-commerce giant and other sellers. The plaintiff argued that the latching-on feature enabled unauthorized sellers to misrepresent their products as genuine, harming the brand’s reputation and sales.

Arguments from Both Sides:

The plaintiff claimed that the latching-on feature facilitated the sale of counterfeit goods, confusing consumers and misleading them into believing they were purchasing authentic products from the brand. They emphasized the need for stricter controls on listings to protect intellectual property and prevent misrepresentation.

In contrast, the defendants, including the e-commerce platform, argued that the feature was designed to enhance competition and consumer choice. They maintained that they had policies in place to monitor listings and take action against counterfeit products when necessary.

Court’s Judgment:

Justice Mini Pushkarna’s ruling emphasized that while e-commerce platforms play a vital role in retail, they must ensure that their features do not become tools for infringement. The court concluded that the latching-on feature could not be used to sell counterfeit products or mislead consumers regarding product origins. The judgment mandated the e-commerce platform to implement its “brand gating” feature for the plaintiff’s listings to prevent unauthorized sellers from latching on. Flipkart was instructed to verify the authenticity of sellers attempting to list the plaintiff’s products and to consult the brand in cases of ambiguity.

The court also directed that any instances of unauthorized latching-on should be promptly reported by the plaintiff, reinforcing the e-commerce platform’s responsibility to protect brand integrity.