Whalesbook
Regulatory Crackdown on E-commerce Platforms
The Central Consumer Protection Authority (CCPA) has penalized Flipkart and Meta Platforms (operating Facebook Marketplace) ₹10 lakh each. The action stems from their roles in permitting the sale of walkie-talkies without essential licensing and regulatory information.
Non-Compliance with Telecom Regulations
In separate orders issued in January 2026, the CCPA found that both e-commerce giants failed to inform consumers about critical requirements. These include operating frequency ranges, the need for wireless operating licenses, and Equipment Type Approval (ETA) certification. This omission created a misleading impression that the devices were legal for unrestricted use.
Walkie-talkies fall under regulated telecom equipment governed by India's Wireless Telegraphy Act, 1933. The Wireless Planning and Coordination Wing (WPC) oversees these regulations. Under current rules, only specific Personal Mobile Radios (PMRs) operating within the 446.0–446.2 MHz band are exempt from licensing. Any device operating outside this band requires prior approvals, including ETA certification.
Platform Defenses Rejected
Flipkart's platform hosted approximately 8,708 sellers offering walkie-talkies, with over 1,08,206 units sold since January 2023. The CCPA initiated a suo motu investigation after noticing these listings. Flipkart contended it acted merely as an intermediary, with compliance resting on third-party sellers. The CCPA rejected this argument, asserting that marketplace entities have independent duties to ensure regulated products comply with legal disclosures.
Similarly, Meta's Facebook Marketplace allowed walkie-talkie listings without the necessary disclosures. While Meta cited internal policies and automated tools after receiving a show-cause notice, the CCPA deemed these actions reactive. The Authority found that repeated hosting of non-compliant listings indicated insufficient enforcement mechanisms, rejecting Meta's claim that Facebook Marketplace was not an e-commerce entity. The platform facilitates listing, discovery, and interaction, thus falling under the Consumer Protection (E-commerce) Rules, 2020.
Violations and Directives
The CCPA concluded that both platforms engaged in misleading advertisements and unfair trade practices, violating provisions of the Consumer Protection Act, 2019. Beyond the fines, both companies are directed to bolster due diligence processes and ensure strict adherence to disclosure obligations to prevent the sale of unauthorized regulated products.