The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹1 lakh on M/s Hogar Technologies and Innovations LLP for publishing misleading advertisements and product listings of walkie-talkies without disclosing essential regulatory information. The company failed to provide adequate details about the operating frequencies of the devices, applicable licensing requirements and necessary regulatory approvals.

The order was passed under the Consumer Protection Act, 2019, by the CCPA, headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra. This action is part of the Authority's broader efforts to curb misleading advertisements and unfair trade practices involving the online promotion and sale of walkie-talkies, also known as Personal Mobile Radios (PMRs).

 Why Did CCPA Penalise Hogar Technologies?

During its examination, the CCPA reviewed advertisements and product listings of different walkie-talkie models displayed on the website of Hogar Technologies and Innovations LLP.

The Authority found that the product listings did not adequately disclose important information, including:

- Operating frequencies of the advertised walkie-talkies.

- Applicable licensing requirements.

- Relevant regulatory approvals and compliance conditions.

According to the CCPA, the absence of these disclosures could create the impression that consumers were free to purchase and operate the advertised devices without obtaining the necessary regulatory permissions.

The company argued during the proceedings that it held a valid Dealer Possessing Licence (DPL) and that the devices were covered by applicable Equipment Type Approval (ETA) certifications. It also stated that its website was primarily designed for providing product information and generating business leads rather than facilitating direct online purchases.

However, the CCPA rejected the argument that possessing the necessary regulatory approvals was sufficient to establish compliance with consumer protection requirements. The Authority clarified that businesses must also provide accurate, complete and relevant information to consumers before they make purchasing decisions.

Walkie-Talkie Licensing Rules: What Should Consumers Know?

The regulatory requirements for operating walkie-talkies depend on their operating frequency and applicable government exemptions.

Under the Use of Low Power and Very Low Power Short Range Radio Frequency Devices (Exemption from Licensing Requirement) Rules, 2018, Personal Mobile Radios operating within the prescribed frequency range of 446.0–446.2 MHz are exempt from obtaining an individual operating licence, subject to the applicable conditions.

However, wireless radio frequency devices operating outside this exempted frequency range may be subject to relevant licensing and regulatory requirements.

Therefore, businesses advertising walkie-talkies must clearly communicate their operating frequencies and applicable regulatory conditions. Without these disclosures, consumers may unknowingly purchase devices that cannot legally be operated without additional permissions.

Even Informational Websites Must Follow Consumer Protection Rules

One of the important observations in the CCPA's order concerns the responsibility of businesses that promote products through websites without directly selling them online.

Hogar Technologies argued that its website did not have an online payment gateway or shopping cart facility. However, the Authority clarified that the absence of direct online purchasing facilities does not exempt promotional content and product advertisements from the provisions of the Consumer Protection Act, 2019.

This means that businesses cannot avoid consumer protection obligations simply by describing their websites as informational or lead-generation platforms.

Whether a product is sold directly through a website or through another sales channel, its advertisements and listings must disclose all material information necessary for consumers to make informed decisions.

The CCPA observed that withholding information about operating frequencies and licensing requirements could mislead consumers and potentially expose them to legal and financial consequences.

Consequently, the Authority held Hogar Technologies responsible for misleading advertisements and unfair trade practices and imposed a penalty of ₹1 lakh.

 CCPA's Wider Crackdown on Misleading Walkie-Talkie Listings

The penalty against Hogar Technologies is part of a broader enforcement campaign initiated by the CCPA against misleading advertisements and non-compliant walkie-talkie listings on e-commerce platforms and other online marketplaces.

The Authority had taken suo motu cognisance of the large-scale listing and sale of walkie-talkies without mandatory regulatory disclosures. During its examination, it identified more than 16,970 non-compliant product listings across various platforms.

Following the investigation, notices were issued to 13 e-commerce entities, including Amazon, Flipkart, Meesho, Meta (Facebook Marketplace), JioMart, IndiaMART and TradeIndia.

The CCPA has so far passed final orders against 12 entities, imposing cumulative penalties of ₹58 lakh for misleading advertisements and unfair trade practices involving walkie-talkies.

The entities penalised include:

- ₹10 lakh each: Amazon Seller Services Pvt. Ltd., Flipkart Internet Pvt. Ltd., Meesho Pvt. Ltd., Meta Platforms and TradeIndia (Infocom Network Pvt. Ltd.).

- ₹1 lakh each: 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.

Some Companies Challenge CCPA Orders Before Judicial Forums

The enforcement action has also led to legal challenges by certain companies against the orders and proceedings initiated by the CCPA.

Amazon Seller Services Pvt. Ltd. and Flipkart Internet Pvt. Ltd. have approached the Karnataka High Court, challenging the orders passed by the Authority.

Similarly, Meta Platforms and TradeIndia (Infocom Network Pvt. Ltd.) have approached the National Consumer Disputes Redressal Commission (NCDRC) against the penalties of ₹10 lakh imposed on them. In TradeIndia's case, the NCDRC has directed the company to deposit the penalty amount.

IndiaMART InterMESH Ltd. has also approached the Delhi High Court, challenging the proceedings initiated by the CCPA. Its matter remains under consideration before the Authority.

These developments highlight the increasing regulatory scrutiny of online marketplaces and businesses involved in advertising and selling products that require specific regulatory approvals.

What Does the CCPA Order Mean for Online Sellers and Consumers?

The latest action sends an important message to businesses, online marketplaces and product advertisers: regulatory compliance must be reflected in product advertisements and listings, not just in the possession of licences and certificates.

Businesses promoting regulated products should ensure that their listings provide accurate and complete information about product specifications, operating conditions, applicable licences and regulatory approvals.

For consumers, transparent product information is equally important. Before purchasing a walkie-talkie, buyers should check its operating frequency and verify whether the device can be legally operated under the applicable government rules.

The CCPA has reiterated its commitment to protecting consumer interests, preventing misleading advertisements and addressing unfair trade practices, particularly in sectors where product usage is governed by specific regulatory and public safety requirements.

The action against Hogar Technologies reinforces the principle that withholding material product information can amount to a misleading advertisement, even when a business holds the necessary regulatory approvals and does not sell products directly through its website.

Source: Ministry of Consumer Affairs, Food & Public Distribution