CCPA Fines 12 Entities 58 Lakh Rupees Over Walkie-Talkie Ads

The Central Consumer Protection Authority (CCPA) has widened its action against the way walkie-talkies are advertised and sold online, imposing a penalty of one lakh rupees on M/s Hogar Technologies and Innovations LLP for product listings that hid the regulatory information a buyer needs. The order was passed under the Consumer Protection Act, 2019 by the authority headed by Chief Commissioner Nidhi Khare with Commissioner Anupam Mishra.

What the listings left out

The authority examined various walkie-talkie models shown on the company's website and found that the operating frequencies of the devices, the licensing requirements that apply to them and the regulatory approvals needed were not set out clearly. A buyer could therefore be left believing that the sets may be used lawfully without any authorisation. The company replied that it held a Dealer Possessing Licence, that its devices carried Equipment Type Approval certification, and that its website only generated enquiries rather than selling directly. The authority held that holding approvals does not relieve an advertiser of the duty to give a consumer accurate and complete information before purchase, and that a website without a payment gateway or a shopping cart is still covered by the law on misleading advertisements.

The licensing rule involved

Under the rules of 2018 on low power and very low power short range radio frequency devices, personal mobile radios working within the band of 446.0 to 446.2 MHz are exempt from the need for a licence, subject to conditions. Devices operating outside that band attract the relevant regulatory requirements, which is why the omission of frequency details from an advertisement can expose a buyer to legal and financial trouble.

How wide the crackdown is

The authority had taken suo motu notice of walkie-talkies being listed and sold on e-commerce platforms without the mandatory disclosures. Its examination identified more than 16,970 non-compliant listings, and notices went to 13 e-commerce entities, among them Amazon, Flipkart, Meesho, Meta for Facebook Marketplace, JioMart, IndiaMART and TradeIndia.

Challenges in court

Several of the firms have gone to court. Amazon Seller Services and Flipkart Internet have approached the Karnataka High Court against the orders; Meta Platforms and TradeIndia have moved the National Consumer Disputes Redressal Commission (NCDRC), which has directed TradeIndia to deposit the penalty; and IndiaMART InterMESH has approached the Delhi High Court while the matter continues before the authority. The CCPA has repeated that advertisements for such sets must state operating frequencies, licensing requirements and other material regulatory information, which matters most for products whose lawful use depends on meeting specific conditions.