Article - Amazon vs. Amway

Published On: 15/07/2020


Aditi Verma Thakur
Kshitij Parashar
In the second round of litigation between E-commerce platforms such as Amazon, Flipkart and Snapdeal (“E-commerce platforms”) and Direct Selling Entities (“DSEs”) such as Amway, Oriflame, and Modicare earlier this year, a Division Bench of the Delhi High Court overruled the decision of the Single Judge whereby the E-commerce platforms were restrained from enabling sale of products of DSEs without their consent. While allowing the appeal, it was also held by the Division Bench that Direct Selling Guidelines, 2016 (“DSGs”) are advisory in nature and the Single Judge had made a blunder in holding them to be binding law.