The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on Just Dial Limited for hosting and facilitating listings of ammonium nitrate without ensuring that mandatory regulatory safeguards and consumer disclosures were in place. The order, dated October 28, 2026, directs the online business directory to immediately stop listing, advertising, promoting or facilitating access to ammonium nitrate and other substances classified as explosives or otherwise regulated under applicable laws.
The consumer watchdog rejected Just Dial’s argument that it operated only as an online directory and intermediary, rather than an e-commerce marketplace. The CCPA concluded that the platform’s seller listings, paid promotional services and lead-generation features went beyond passive information display. It also found that the listings did not adequately communicate licensing requirements, buyer eligibility conditions and other legal restrictions associated with the regulated substance.
Why the CCPA Fined Just Dial ₹10 Lakh
The CCPA’s proceedings focused on listings that allowed users to discover sellers offering ammonium nitrate through Just Dial. The authority found that the platform displayed product photographs, prices, seller information and features such as “Call Now” and “Get Best Price”.
According to the findings reported from the order, these listings did not provide sufficient information about the regulatory conditions governing the sale and purchase of ammonium nitrate. The platform also failed to demonstrate that it had effective mechanisms to verify sellers’ licences and ensure that prospective buyers met the applicable legal requirements.
The CCPA considered these omissions significant because ammonium nitrate is a regulated explosive substance. Its sale, possession, transportation and use are subject to statutory requirements under the Explosives Act, 1884, and the Ammonium Nitrate Rules, 2012.
The authority concluded that presenting such products without appropriate warnings and disclosures could create the impression that they were ordinary commercial goods available for unrestricted purchase.
Just Dial’s Intermediary Defence Rejected
During the proceedings, Just Dial maintained that it was an online directory and information-listing service, not a platform that directly sold or traded products. The company argued that it did not manufacture, store, transport or possess ammonium nitrate and that transactions took place directly between vendors and users outside its platform.
It also invoked Section 79 of the Information Technology Act, 2000, which provides conditional safe-harbour protection to eligible intermediaries for third-party information. Just Dial argued that sellers were responsible for obtaining the necessary permissions and complying with applicable regulations.
However, the CCPA rejected the argument that the company’s intermediary status automatically exempted it from responsibility.
The authority pointed to features that it said demonstrated an active role in facilitating commercial access to the listed products. These included paid promotional services, seller-verification indicators, product descriptions and lead-generation tools that helped users contact vendors.
The CCPA also noted that Just Dial had not provided adequate evidence to establish that its verification mechanisms were effectively checking the regulatory compliance of sellers.
The authority further observed that removing the listings after regulatory intervention did not eliminate responsibility for the period during which they remained available.
What the CCPA Found in the Listings
The investigation identified multiple ammonium nitrate listings on Just Dial. Some described the substance as fertiliser-grade ammonium nitrate, while others referred to industrial-grade granules.
The listings included commercial information and contact options but lacked material disclosures concerning the legal conditions governing the substance.
The CCPA’s concerns included:
- Seller licensing: The listings did not adequately disclose or establish that sellers held the required Petroleum and Explosives Safety Organisation (PESO) licences.
- Buyer eligibility: The platform did not demonstrate sufficient checks to establish whether prospective buyers were legally authorised to purchase the substance.
- Transaction traceability: The authority found shortcomings in the safeguards and information needed to establish accountability around regulated transactions.
- Legal disclosures: The listings did not adequately explain restrictions and the consequences of unauthorised possession or use.
- Promotional features: Product descriptions, seller details and lead-generation options could make the listings appear like ordinary commercial offers.
The CCPA also considered the duration for which the listings remained available. According to the order’s findings, some listings had reportedly been present on the platform for several years.
Consumer Protection Act Provisions Cited by the Authority
The CCPA concluded that Just Dial’s conduct violated provisions of the Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020.
The authority referred to the following provisions:
| Legal provision | What it covers |
|---|---|
| Section 2(9) | Consumers’ right to protection against goods and services hazardous to life and property |
| Section 2(28) | Misleading advertisements |
| Section 2(47) | Unfair trade practices |
| Rule 4(3) and Rule 5 of the E-Commerce Rules, 2020 | Obligations and responsibilities applicable to e-commerce entities |
The CCPA held that omitting material information about licensing, buyer eligibility and lawful usage conditions could mislead consumers about whether the product was legally available for purchase.
It also concluded that facilitating access to a regulated hazardous substance without appropriate safeguards amounted to an unfair trade practice.
An important distinction in the order is that the CCPA did not itself determine liability under the Explosives Act, 1884, or the Ammonium Nitrate Rules, 2012. It referred to those laws to assess the significance of the missing regulatory information and the safeguards expected from the platform. Enforcement of those laws remains within the jurisdiction of the competent authorities.
CCPA Directs Just Dial to Remove Regulated Explosive Listings
Along with the financial penalty, the authority issued directions requiring Just Dial to stop listing, hosting, advertising, promoting or facilitating access to ammonium nitrate and other substances classified as explosives under the Explosives Act or otherwise regulated under applicable laws.
The company has also been directed to submit a compliance report within 15 days of receiving the order.
| Order detail | Direction |
|---|---|
| Company | Just Dial Limited |
| Regulated substance | Ammonium nitrate |
| Penalty | ₹10 lakh |
| Order date | October 28, 2026 |
| Main direction | Stop listing and facilitating access to regulated explosive substances |
| Compliance deadline | 15 days from receipt of the order |
The CCPA said the penalty reflected the seriousness of the violations, the potential risks to consumers and the public, the platform’s reach and the duration for which the listings remained available.
Part of a Wider Crackdown on Online Listings of Explosives
The action against Just Dial is part of a broader regulatory exercise targeting the online listing and promotion of hazardous and regulated substances.
On October 19, 2026, the Ministry of Consumer Affairs said the CCPA had taken action involving seven online platforms. These included Just Dial, IndiaMART, TradeIndia, Dial4Trade, ExportersIndia, Sigma-Aldrich India and Ibuychemikals.
The government said the platforms had collectively delisted 3,940 sellers and listing entries involving substances such as ammonium nitrate, gunpowder, picric acid and pentaerythritol tetranitrate (PETN).
The government also disclosed that Just Dial had provided details of 206 sellers associated with ammonium nitrate listings.
Before the Just Dial order, the CCPA had imposed penalties of ₹10 lakh on Dial4Trade and Weblink.In, which operates ExportersIndia.com, for facilitating listings of regulated hazardous substances. ExportersIndia had also received a separate ₹10 lakh penalty relating to picric acid listings.
The regulatory action indicates that the CCPA is examining not only conventional online marketplaces but also business directories and platforms that connect buyers with sellers.
The Bigger Picture
The Just Dial case raises an important question about the responsibilities of digital platforms that connect businesses with potential customers. Online directories may not own inventory, process payments or handle deliveries, but their listings, promotional tools and contact features can still influence how consumers discover and access products.
The CCPA’s decision signals that platforms may be expected to exercise greater due diligence when their services involve products subject to strict licensing and safety requirements. Simply describing a service as an online directory or intermediary may not be sufficient to avoid consumer-protection obligations when the platform actively promotes listings and facilitates commercial connections.
The case also highlights the importance of distinguishing between ordinary business listings and products whose sale or possession is legally restricted. Platforms handling regulated goods may need stronger seller verification, clearer disclosures and more effective monitoring systems.
Looking Ahead
Just Dial will need to comply with the CCPA’s directions and submit the required compliance report within the prescribed period. The order could also influence how other online directories and business-to-business platforms review listings involving hazardous chemicals and regulated substances. Companies operating such services may face increased pressure to verify seller credentials and ensure that product information does not suggest unrestricted access where legal restrictions apply.
More broadly, the regulatory approach could shape the responsibilities of digital platforms in India as online business discovery and lead-generation services continue to expand. The central issue is whether a platform’s role in promoting and connecting buyers with sellers creates obligations beyond those of a passive intermediary, particularly when public safety and legally controlled products are involved.
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