All NotesCivil LawInformation Technology Act, 2000

Information Technology Act, 2000

Important Cases on E-Commerce Intermediaries: Marketplace Case Law

The recurring e-commerce question is whether a marketplace is a neutral intermediary or an active trader, because the answer decides both safe harbour and liability for counterfeits and deficiencies. The Delhi High Court drew the active-passive line and the courts worked out where consumer law overrides the platform's terms. Topics 89 and 99 state the law; this note, as asked, is the dedicated case digest.

1. The Case Line

Hosting, marketplaces and consumer law

Figure 1: Hosting, marketplaces and consumer law

📖 Christian Louboutin SAS v. Nakul Bajaj, (2018) Delhi High Court

Facts: A luxury e-commerce site selling goods bearing the plaintiff's marks claimed intermediary status; the court catalogued its functions, seller selection, promotion, quality assurance, warehousing, logistics and branding.

Held: s.79 belongs to the passive conduit: a platform whose active participation facilitates infringement is not a mere intermediary and forfeits the safe harbour, with marketplace duties of seller disclosure and listing removal following. The active-passive test every e-commerce case now applies (Topic 89).

  • MySpace v. Super Cassettes (Del HC DB, 2016). Hosting and copyright: s.79 and the Copyright Act read harmoniously, knowledge means specific identified works notified with particulars, and there is no general duty to monitor uploads, the notice-and-takedown charter (Topics 67, 117)
  • Kent RO v. Amit Kotak (Del HC, 2017). An intermediary is not obliged to screen or adjudicate every IP complaint across its platform; removal follows court orders and specific statutory notice, not a rights-holder's blanket demand.
  • Amazon Seller Services / Flipkart v. Amway India (Del HC DB, 2020). A single judge had restrained the platforms over direct-selling guidelines; the Division Bench set the injunction aside pending trial, holding the guidelines' statutory force and the platforms' intermediary status required proper adjudication, not interim fiat, the direct-selling marketplace dispute.
  • Amazon Seller Services v. Modicare and allied matters. The run of marketplace suits working out obligations toward brand owners, seller disclosure and the interface with the Consumer Protection (E-Commerce) Rules, 2020, whose duties are the platform's own and lie outside s.79's third-party-information shield (Topic 89)
  • Google India v. Visakha Industries (SC, 2019). On the pre-2009 s.79: the original harbour protected only against IT Act liability and gave no shield against IPC defamation, the amended wider harbour expressly distinguished (Topic 117)

2. Quick Revision

One line per case

Figure 2: One line per case

⚠ Exam trap

Anchor every marketplace answer in the active-passive line of Louboutin and the no-general-monitoring rule of MySpace, with Kent RO for no unbidden screening. Keep the two liability layers separate: s.79 shields the platform for third-party listings only while passive, but the Consumer Protection E-Commerce Rules impose the platform's own duties that s.79 never touches, the point the Amway and Modicare line works out. Cite Visakha for the pre-amendment harbour's narrowness across the 2008 divide.

3. Frequently Asked Questions

When does an e-commerce marketplace lose safe harbour?

When it stops being passive. Christian Louboutin v. Nakul Bajaj holds that a platform which selects and promotes products, assures quality, warehouses, ships and brands the goods participates in the trade and cannot claim the Section 79 intermediary exemption for infringing goods; MySpace confines the harbour to specific-notice removal without general monitoring, and Kent RO rejects any duty to screen IP complaints unbidden. Separately, the platform's own duties under the Consumer Protection (E-Commerce) Rules, 2020 lie outside Section 79 altogether, as the Amway and Modicare line confirms.

4. Related Topics

  • Topic 89: E-Commerce Law. The marketplace framework in full.
  • Topic 117: Safe Harbour Cases. The intermediary doctrine these build on.