Shocking ₹10 Lakh Fine! E-commerce Giant Meesho Faces Regulator's Wrath for Uncertified Gadgets

The Central Consumer Protection Authority (CCPA) has levied a significant penalty of ₹10 lakh on Fashnear Technologies Pvt. Ltd, the parent company of the popular e-commerce platform Meesho. This action was taken because the platform allowed the sale of walkie-talkies that lacked mandatory government certification, a violation the CCPA classified as misleading advertising and an unfair trade practice.

This ₹10 lakh fine marks the highest penalty ever imposed by India's top consumer protection body on an e-commerce platform concerning the sale of uncertified walkie-talkies. Previously, platforms like Reliance JioMart, Talk Pro, The MaskMan Toys, and Chimiya were fined ₹1 lakh each for similar offenses. Investigations are also ongoing for other major e-commerce players including Amazon, Flipkart, OLX, Facebook, and IndiaMart, with final orders pending.

Why the Record Fine?

• The substantial penalty on Meesho is attributed to the large scale of unverified sales and the platform's inadequate disclosures. According to the CCPA order, one seller alone sold 2,209 walkie-talkies without providing crucial information like frequency specifications, licensing requirements, or Essential Transmission Authority (ETA) certification.
• Furthermore, 1,896 non-toy walkie-talkie listings were found across 85 sellers over a year, but Meesho could not provide data on the exact number of units sold.
• The CCPA noted that Meesho permitted the listing of these wireless devices until May 2025, when it received the notice, without disclosing essential details regarding licensing rules, frequency bands, and safety compliance. This lack of transparency potentially exposed consumers to legal and security risks.

CCPA's Findings and Meesho's Role

• The order, reviewed by Mint, highlighted that Meesho provided details for only one seller despite repeated notices from the CCPA seeking comprehensive seller information.
• The platform failed to furnish complete documentation, including product URLs, seller IDs, and technical certificates, as requested.
• The CCPA concluded that Meesho exercised substantial control over its listings and could not be treated as a passive intermediary, making it responsible for the violations occurring on its platform.
• The authority also pointed out that walkie-talkies listed under the 'kids & toys' category were often actual wireless communication devices, leading to consumer misdirection about regulatory requirements.

National Security Concerns

• Experts emphasize that the sale of uncertified wireless devices poses a national security risk.
• These unregulated devices can interfere with critical communication networks used by emergency services, aviation, and defence agencies.
• Allowing such products without proper checks creates security vulnerabilities and exposes the country to potential communication breaches.

Future Expectations

• In its final directives, the CCPA has ordered Meesho to prominently display ETA or BIS certifications for such products if they are listed in the future.
• These measures aim to protect consumers, prevent the illegal sale of radio equipment, and enhance compliance across the e-commerce sector.
• All e-commerce platforms involved are required to submit a compliance report within 15 days of receiving the CCPA's final order.

Impact

• This landmark ruling by the CCPA is expected to significantly increase regulatory scrutiny on all e-commerce platforms operating in India.
• It sets a precedent for accountability, pushing platforms to implement stricter checks on product certifications and seller conduct.
• Consumers are likely to benefit from increased product safety and better-informed purchasing decisions.
• The ruling could influence how companies like Amazon, Flipkart, and others manage their third-party seller ecosystems.
• Impact Rating: 8/10

Difficult Terms Explained

• Central Consumer Protection Authority (CCPA): India's apex regulator for consumer protection, responsible for preventing unfair trade practices and ensuring consumer rights.
• Fashnear Technologies Pvt. Ltd: The legal entity that owns and operates the Meesho e-commerce platform.
• Unfair Trade Practice: A practice adopted by a trader or service provider to secure an unfair advantage over its competitors or consumers, such as misleading claims or deceptive practices.
• Misleading Advertising: Advertising that deceives or is likely to deceive consumers, leading them to make purchasing decisions they might not otherwise have made.
• ETA Certification: Equipment Type Approval is a certification required for wireless devices in India, ensuring they meet technical standards and are approved for use.
• WPC Wing: Wireless Planning and Coordination Wing, India's national radio regulatory authority that manages spectrum allocation and licensing.
• IPO: Initial Public Offering, the process by which a private company offers shares to the public for the first time to raise capital.
• Intermediary: In the context of e-commerce, a platform that facilitates transactions between buyers and sellers but does not directly own the goods being sold (e.g., Amazon, Flipkart, Meesho).