Introduction:

The Delhi High Court has issued directives to Flipkart regarding the misuse of GST by rogue sellers and the sale of counterfeit products on its platform. The court’s intervention came in response to a suit filed by Zydus Healthcare Limited against Flipkart over the sale of counterfeit hair color products.

Arguments:

Zydus Healthcare Limited, represented by Senior Advocate Mr. Chander M. Lall, alleged that counterfeit products were being sold on Flipkart under its trademark. On the other hand, Flipkart, represented by Senior Advocate Mr. Jayant Mehta, highlighted the steps it takes to ensure due diligence, including publishing rules and regulations, privacy policies, and user agreements on its platform.

Court’s Judgment:

Justice Anish Dayal directed Flipkart to investigate the misuse of GST and examine the possibility of providing different FSN numbers for products sold by different sellers. The court emphasized compliance with e-commerce rules and acknowledged the proactive and reactive measures taken by e-commerce platforms to prevent counterfeiting. The matter was adjourned for further hearing, with Flipkart instructed to provide its affidavit to Zydus Healthcare’s counsel.