CCPA Action on Walkie-Talkie Listings: Rs 1 Lakh Fine Imposed
A fine of Rs 1 lakh has been imposed on Hoger Technologies and Innovation LLP by the Central Consumer Protection Authority (CCPA) over misleading walkie-talkie advertisements. The authority found that the company's product listings did not mention operating frequency and essential licensing requirements, leaving consumers without critical information.
Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra presided over the proceedings that led to the order. The official statement issued on Sunday said the case is part of ongoing efforts to tackle deceptive claims, misleading listings and unfair trade practices related to walkie-talkies, or personal mobile radios, sold through online platforms and websites.
Investigators reviewed multiple walkie-talkie models shown on the company's website. The listings, the CCPA said, did not clearly state the operating frequency, the conditions of the applicable licence or the regulatory approvals required. This could create the impression that the devices could be lawfully used without any regulatory permission.
According to the rules for low-power and very low-power short-range radio frequency devices, personal mobile radios working in the 446.0 to 446.2 MHz frequency range are exempt from licensing, subject to specified conditions. Wireless radio frequency devices operating outside this exempt band, however, must meet the relevant regulatory requirements.
During the case, the company argued that it holds a valid dealer possession licence (DPL) and the equipment type approval (ETA) certificates for the devices concerned. It also contended that its website is designed mainly to provide information and connect with potential customers, and that it does not allow direct online purchases.
After considering these arguments, the findings of the probe and the documents on record, the CCPA held that holding regulatory approval does not absolve an advertiser of the responsibility to provide accurate, complete and important information before a purchase. The authority also made clear that a website without online payment or a shopping cart does not exempt promotional claims from the misleading advertisement provisions of the Consumer Protection Act, 2019. Advertisements and listings must disclose relevant regulatory conditions regardless of the sales method.
The authority had earlier taken suo motu cognisance of the large-scale listing and sale of walkie-talkies on e-commerce platforms without mandatory regulatory information. More than 16,970 non-compliant listings were identified across various platforms. Subsequently, notices were sent to 13 e-commerce companies, including Amazon, Flipkart, Meesho, Meta (Facebook Marketplace), JioMart, IndiaMART and TradeIndia.
So far, final orders have been passed against 12 companies, with total penalties of Rs 58 lakh for misleading walkie-talkie advertisements and unfair trade practices. Some of the CCPA's orders and initiated proceedings have also been challenged in judicial forums by companies such as Amazon Seller Services Private Limited, Flipkart Internet and Meta Platforms.