Consumer protection agency fines walkie-talkie seller 100,000 rupees for failing to disclose essential information

The Central Consumer Protection Authority (CCPA) has imposed a fine of 100,000 rupees on a seller of two-way radios due to misleading advertisements and product listings that failed to disclose operating frequencies, licensing requirements, and other essential regulatory information.

This action is part of a broader crackdown on misleading advertising and unfair trade practices involving the online sale and promotion of personal mobile radios. Regulatory authorities have identified over 16,970 non-compliant product listings across major e-commerce platforms and have issued notices to 13 entities.

The consumer protection authority, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, stated that the sellers’ online listings failed to adequately disclose the operating frequencies, applicable licensing requirements, and regulatory approvals for the advertised devices.

The report noted that such omissions could lead consumers to mistakenly believe that these devices can be operated legally without obtaining the necessary authorizations.

During the proceedings, the seller submitted evidence of holding a valid dealer license and demonstrated that the devices in question had received the required type certification. The seller further argued that its website serves primarily for information dissemination and lead generation, rather than for conducting direct online transactions.

The authority maintains that regulatory approval does not exempt advertisers from their obligation to provide complete and accurate information prior to a purchase. It further clarifies that promotional claims made on a website are subject to the Consumer Protection Act, 2019, even if the website does not directly facilitate the sale.

What the regulations state:
Under the 2018 regulations governing low-power wireless equipment, walkie-talkies operating within the 446.0–446.2 MHz frequency band are exempt from licensing requirements, provided that specific conditions are met. Equipment operating outside this band is subject to relevant regulatory requirements; therefore, the clear disclosure of the operating frequency is essential.

Previously, the authority investigated instances where mandatory disclosures were missing from product listings for walkie-talkies, issuing notices to 13 e-commerce entities regarding alleged violations.

To date, the authority has reached final rulings against 12 of these entities, imposing a total of 5.8 million rupees in fines for misleading advertising and unfair trade practices. This includes fines of 1 million rupees each for 5 entities, and 100,000 rupees each for the remaining 7 entities.

Some entities have initiated legal proceedings before the judiciary regarding the relevant procedures or rulings. These cases are currently pending before the appropriate courts and consumer dispute resolution commissions; in one instance, a company has been ordered by a commission to pay a fine.

The CCPA reiterates that advertisements and product listings must clearly disclose operational frequency, licensing conditions, and other significant regulatory requirements, enabling consumers to make informed decisions and avoid potential legal and financial consequences.

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