New Delhi, April 2025.

Wrong interpretations of BIS regulations leading to scrutiny of sellers selling on e-commerce platforms is affecting small businesses in the country. The analysis shows many of the seized products being Bureau of Indian Standards (BIS)-compliant or exempt from certification requirements,are leaving sellers struggling to earn livelihoods. Empower India, a new age think tank group, has raised concerns over recent enforcement actions conducted by the BIS at multiple e-commerce warehouses across the country.

Several products carrying valid BIS licenses and ISI marks were recently confiscated across multiple locations including Delhi, Gurgaon, Faridabad, Lucknow, Hyderabad, Sriperumbudur and Chennai,despite clear documentation proving compliance. Some products were seized by officials despite falling outside the scope of BIS standards, as in the case of specific mixer grinders (900W) Additionally, multiple seized items, such as toys, recreational products, and educational kits, do not fall under BIS’s mandatory certification requirements.

Commenting on the raids, K Giri, Director General, Empower India said,“Ensuring product quality and safety is a shared objective, but enforcement actions must be precise and fair. The wrongful seizure of compliant or exempt products disrupts businesses, particularly small sellers, and creates uncertainty in the ecosystem. We urge BIS to work towards a more streamlined enforcement process that balances regulatory compliance with business continuity.”

Shreya Suri, Partner, IndusLawadded, “Regulatory enforcement must be conducted within the framework of due process to ensure fairness and compliance. Any wrongful seizure of products raises legal concerns regarding procedural lapses. Arbitrary actions without proper checks could set a troubling precedent, impacting the ease of doing business and eroding trust in regulatory processes.”

These actions have led to financial setbacks, operational disruptions, and temporary loss of livelihood for many small sellers who have invested heavily in meeting compliance requirements, he added.

Empower India has urged authorities to implement improved enforcement practices to prevent future wrongful seizures, recommending on-the-spot verification protocols, a rapid resolution mechanism for incorrect seizures, and enhanced communication between enforcement agencies, sellers, and manufacturers to ensure clarity on BIS requirements. The organization has requested BIS to review the identified cases and take corrective action to minimize disruptions for affected sellers. Committed to ensuring a fair and efficient compliance framework, Empower India remains ready to collaborate with regulatory authorities to address these issues.