Delhi HC blocks Flipkart's 'latching-on' feature to curb fake listings
The Delhi High Court has imposed restrictions on Flipkart's "latching-on" feature, a tool that enables third-party sellers to list their products under existing brand listings on the e-commerce platform. The court's decision comes amid concerns that this feature could potentially mislead customers into purchasing counterfeit goods or believing they are buying from a specific brand when they are not.
Ruling stems from furniture company's complaint
The high court's ruling was a response to a case initiated by Modern Mould Plast Pvt. Ltd., a furniture firm operating under the "MAHARAJA" brand name. The company claimed that unauthorized sellers were using their listings on Flipkart to sell non-genuine products, thereby damaging their brand reputation. The court acknowledged the brand's rights and instructed Flipkart to implement its 'brand gating' policy to prevent such misuse of the "latching-on" feature.
Order to verify, block unauthorized listings
Following the ruling, Flipkart has been directed to verify and block any unauthorized listings that could harm a brand's integrity. This is not the first time that the e-commerce giant has faced legal challenges over its "latching-on" feature. In 2022, a single-judge bench of the Delhi High Court ruled against this feature, stating that sellers must obtain consent from brand owners before listing products under their brands.
Flipkart urged to take swift action against unauthorized latching-on
The court also instructed that if any unauthorized latching-on is detected, Flipkart must be promptly informed and should take immediate steps to disable the feature. This directive aims to further safeguard brands and consumers from potential deception or damage caused by counterfeit products being sold under established brand names on the e-commerce platform.
