CCPA Imposes ₹1 Lakh Penalty on Hogar Technologies for Misleading Walkie-Talkie Advertisements
The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹1 lakh on M/s Hogar Technologies and Innovations LLP for misleading advertisements and product listings of walkie-talkies that failed to disclose essential regulatory information. The order was passed by the CCPA, headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, under the Consumer Protection Act, 2019.
The authority found that Hogar Technologies' product listings did not clearly disclose operating frequencies, applicable licensing requirements, and regulatory approvals for their walkie-talkies. This omission could mislead consumers into believing the devices could be operated without obtaining requisite regulatory authorizations. The CCPA specifically referenced the Use of Low Power and Very Low Power Short Range Radio Frequency Devices (Exemption from Licensing Requirement) Rules, 2018, which exempt personal mobile radios operating within 446.0–446.2 MHz from licensing requirements, subject to conditions.
Despite the company's submission that it possessed a valid Dealer Possessing Licence (DPL) and Equipment Type Approval (ETA) certifications, and that its website was primarily for informational purposes without direct transaction capabilities, the CCPA ruled that possession of regulatory approvals does not absolve advertisers from providing complete material information to consumers at the pre-purchase stage.
Broader Enforcement Action Against E-commerce Platforms
This action is part of CCPA's larger enforcement measures against misleading advertisements and unfair trade practices relating to walkie-talkie sales across online platforms. The authority has identified over 16,970 non-compliant listings across various platforms and issued notices to 13 e-commerce entities including Amazon, Flipkart, Meesho, Meta (Facebook Marketplace), JioMart, IndiaMART, and TradeIndia.
To date, the CCPA has passed final orders against 12 entities, imposing cumulative penalties of ₹58 lakh. This includes penalties of ₹10 lakh each on Amazon Seller Services Pvt. Ltd., Flipkart Internet Pvt. Ltd., Meesho Pvt. Ltd., Meta Platforms, and TradeIndia (Infocom Network Pvt. Ltd.), and ₹1 lakh each on JioMart (Reliance Retail Ltd.), Chimiya, MaskMan Toys, Talk Pro (Iconet Services Pvt. Ltd.), Sanchar Wireless Communications Ltd., Antriksh Technosys Pvt. Ltd., and Hogar Technologies and Innovations LLP.
Legal Challenges and Ongoing Proceedings
Several entities have challenged the CCPA orders before judicial forums. Amazon Seller Services Pvt. Ltd. and Flipkart Internet Pvt. Ltd. have approached the Karnataka High Court, while Meta Platforms and TradeIndia have approached the National Consumer Disputes Redressal Commission (NCDRC) against the ₹10 lakh penalties. The NCDRC has directed TradeIndia to deposit the penalty amount. IndiaMART InterMESH Ltd. has approached the Delhi High Court challenging the proceedings initiated by CCPA, with the matter still under consideration by the Authority.
The CCPA has reiterated that advertisements must clearly disclose operating frequencies, licensing requirements, and other material regulatory information to enable informed consumer decisions, particularly for products whose lawful use is subject to specific regulatory conditions. The authority reaffirmed its commitment to safeguarding consumer interests and preventing misleading advertisements, especially for products involving regulatory compliance and public safety considerations.