Lawstreet Journal

Amazon vs. Amway: Selling Products Of DSEs Online Without Consent, Not Trademark Infringement, DSGs Are Not Legally Binding, Says Delhi HC

Lawstreet Journal 7 Feb 2020 3:32am

Image courtesy: Lawstreet Journal Judiciary Amazon vs. Amway: Selling Products Of DSEs Online Without Consent, Not Trademark Infringement, DSGs Are Not Legally Binding, Says Delhi HC

The Delhi High Court pronounced it's judgement in the case of Amazon v. Amway & Ors on 31st of January, 2020. The judgement was passed by the Division bench of Justices Dr S Muralidhar and Talwant Singh. 

Appeal had been filed by Amazon, Flipkart and others. The order that had restrained several e-commerce platforms from selling products of Amway, Oriflame and Modivare without the consent was set aside. The court held that "Direct Selling Guidelines of 2016" are purely advisory in nature and do not qualify as law. 

What was the order?

In July 2019, A Single bench judge of the High court granted an interim injunction in favour of Amway and other entities in the purview of unauthorized sale of their products on e-commerce platforms. 

The court has further held the Direct Selling Guidelines (DSGs) as fully binding in nature and further amounting to law. It was held that the sellers as well as the platforms were bound to take the Direct Selling Entities' (DSE) consent to offer, display and sell the products. In furtherance to the order, e-commerce platforms were not given the entitlement to the benefit of the principal of "Exhaustion of Trademark Rights" and due diligence was required by the platforms to continue to enjoy the intermediary status. The tort of inducement to breach of contract had paved the existence of the contract between online platforms and DSEs like Amway. 

The present division bench noted that it was highly unlikely that the issues framed and adjudicated upon by the single judge at the… Continue Reading...


Tagged: Amazon   Amway  
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