The Department of Consumer Affairs is investigating Oppo regarding screen defects in its Reno 5 smartphone series following numerous consumer complaints. This inquiry adds to the regulatory scrutiny already surrounding the company’s operations in India, including past tax probes and financial instability concerns.
India's top consumer protection agency has launched an inquiry into the Oppo Reno 5 series following reports of screen defects. Many users have reported lines appearing on their phone screens, prompting the Department of Consumer Affairs to step in. The probe follows a surge in complaints filed through the National Consumer Helpline, highlighting concerns about manufacturing quality.
This investigation is part of a broader regulatory focus on Chinese smartphone brands in India. While some users have been offered replacements, the government wants to understand if these problems are widespread and if they suggest a systemic manufacturing flaw. For consumers, the outcome could determine whether they receive compensation or free repairs beyond the warranty period.
It is important for market watchers to note that Oppo Mobiles India is a private entity and does not trade on the Indian stock exchanges. However, the company has been under the scanner for other serious issues in recent years. As of the financial year 2024, auditors flagged that the company had a negative net worth of ₹3,551 crore, raising questions about its financial position. Additionally, the company has faced significant legal scrutiny, including a probe by the Directorate of Revenue Intelligence regarding alleged customs duty evasion of approximately ₹4,389 crore.
These regulatory challenges occur at a time when Chinese smartphone manufacturers are navigating stricter oversight regarding compliance, foreign direct investment regulations, and tax filings in India. The key monitorable for the industry will be how Oppo addresses these consumer complaints and whether it leads to wider regulatory orders or sets a precedent for how mobile manufacturers handle post-warranty display failures.