New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹1 lakh on Hogar Technologies and Innovations LLP for misleading advertisements and product listings of walkie-talkies that failed to disclose essential regulatory information, including operating frequencies and applicable licensing requirements.
The action forms part of the Authority’s wider crackdown on misleading advertisements and unfair trade practices involving the online listing and sale of walkie-talkies, also known as Personal Mobile Radios.
The CCPA, headed by Chief Commissioner Nidhi Khare (IAS: 1992: JH) and Commissioner Anupam Mishra, found that the company’s website listings did not adequately inform consumers about the regulatory conditions governing the lawful use of the advertised devices.
The latest order brings the cumulative penalties imposed by the Authority against 12 entities in connection with walkie-talkie advertisements and listings to ₹58 lakh. The CCPA has also identified more than 16,970 non-compliant listings across online platforms and issued notices to 13 e-commerce entities.
Why CCPA Penalised Hogar Technologies
The CCPA examined advertisements and product listings for various walkie-talkie models displayed on Hogar Technologies’ website. It found that the listings did not clearly specify operating frequencies, applicable licensing requirements and relevant regulatory approvals.
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According to the Authority, these omissions could lead consumers to believe that the devices could be operated legally without obtaining the necessary authorisations.
During the proceedings, Hogar Technologies submitted that it held a valid Dealer Possessing Licence (DPL) and that the devices were covered by applicable Equipment Type Approval (ETA) certifications. The company also argued that its website primarily served informational and lead-generation purposes and did not facilitate direct online transactions.
However, the CCPA observed that possessing regulatory approvals does not remove an advertiser’s responsibility to provide complete and accurate information before a purchase decision is made.
The Authority also clarified that promotional representations on a website can fall within the scope of misleading advertisements under the Consumer Protection Act, 2019, even when the website does not offer an online payment facility or shopping cart.
Walkie-Talkies Have Specific Frequency and Licensing Requirements
The CCPA highlighted the importance of disclosing the operating frequencies of walkie-talkies because their lawful use depends on applicable telecommunications regulations.
Under the Use of Low Power and Very Low Power Short Range Radio Frequency Devices (Exemption from Licensing Requirement) Rules, 2018, personal mobile radios operating within the prescribed frequency range of 446.0–446.2 MHz are exempt from licensing, subject to the applicable conditions.
Wireless devices operating outside the exempted frequency range may be subject to other regulatory requirements.
The Authority noted that failing to disclose these conditions could expose consumers to potential legal and financial consequences while preventing them from making informed purchasing decisions.
Information Walkie-Talkie Advertisements Must Disclose
The CCPA reiterated that advertisements and product listings should clearly state:
- Operating frequency: The frequency range in which the device operates.
- Licensing requirements: Whether a licence or other authorisation is required for lawful operation.
- Regulatory approvals: Relevant approvals and certifications applicable to the product.
- Conditions of use: Material restrictions or requirements that consumers must know before purchasing or using the device.
These disclosures are intended to help consumers understand whether a product meets their requirements and can be lawfully operated under the applicable rules.
Over 16,970 Non-Compliant Listings Identified Online
The CCPA had earlier taken suo motu cognisance of the large number of walkie-talkie listings on e-commerce platforms that allegedly lacked mandatory regulatory disclosures.
During its examination, the Authority identified more than 16,970 non-compliant listings across online platforms and issued notices to 13 e-commerce entities.
The entities named include Amazon, Flipkart, Meesho, Meta’s Facebook Marketplace, JioMart, IndiaMART and TradeIndia, among others.
The Authority’s action is directed at ensuring that consumers receive essential regulatory information before deciding to purchase products whose use is subject to specific conditions.
CCPA Imposes ₹58 Lakh in Cumulative Penalties on 12 Entities
The CCPA has passed final orders against 12 entities in connection with misleading advertisements and unfair trade practices relating to walkie-talkies.
The penalties are as follows:
- Amazon Seller Services Pvt. Ltd.: ₹10 lakh
- Flipkart Internet Pvt. Ltd.: ₹10 lakh
- Meesho Pvt. Ltd.: ₹10 lakh
- Meta Platforms: ₹10 lakh
- TradeIndia (Infocom Network Pvt. Ltd.): ₹10 lakh
- JioMart (Reliance Retail Ltd.): ₹1 lakh
- Chimiya: ₹1 lakh
- MaskMan Toys: ₹1 lakh
- Talk Pro (Iconet Services Pvt. Ltd.): ₹1 lakh
- Sanchar Wireless Communications Ltd.: ₹1 lakh
- Antriksh Technosys Pvt. Ltd.: ₹1 lakh
- Hogar Technologies and Innovations LLP: ₹1 lakh
Total cumulative penalties: ₹58 lakh.
The penalties reflect the Authority’s enforcement action against advertisements and product listings that it found failed to provide adequate regulatory disclosures.
Several Companies Challenge CCPA Proceedings
Some of the entities have challenged the CCPA’s orders or proceedings before judicial forums.
According to the Authority:
- Amazon Seller Services and Flipkart Internet have approached the Karnataka High Court challenging the orders passed by the Authority.
- Meta Platforms and TradeIndia have approached the National Consumer Disputes Redressal Commission (NCDRC) against the penalties imposed on them.
- In TradeIndia’s case, the NCDRC has directed the company to deposit the penalty amount.
- IndiaMART InterMESH Ltd. has approached the Delhi High Court challenging the proceedings initiated by the CCPA. The matter remains under consideration before the Authority.
These challenges form part of the ongoing legal proceedings concerning the CCPA’s enforcement measures.
CCPA Stresses Transparency in Online Product Listings
The Authority has reiterated that sellers and advertisers must provide accurate, complete and material information about products, particularly when their use is governed by regulatory requirements.
The action against Hogar Technologies underscores the CCPA’s position that regulatory compliance involves not only possessing the necessary approvals but also communicating relevant information clearly to consumers.
Through its continuing enforcement measures, the Authority aims to address misleading advertisements, improve transparency in online product listings and enable consumers to make informed purchasing decisions.
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