Flipkart and Meta Face Penalties for Walkie-Talkie Listings
The Central Consumer Protection Authority has taken strong action against two major digital platforms. Flipkart and Meta Platforms each received fines of ₹10 lakh. The authority penalized them for permitting the sale and promotion of walkie-talkie devices without proper regulatory disclosures.
Regulatory Violations and Platform Responsibility
In separate orders issued this month, the CCPA found serious lapses. Flipkart allowed multiple listings of walkie-talkies that lacked crucial certification details. The platform failed to inform consumers about licensing requirements under the Indian Telegraph Act. It also did not disclose spectrum restrictions or the need for equipment type approval from the WPC wing.
Meta Platforms faced similar scrutiny for its Facebook Marketplace. The authority rejected Meta's argument that it merely acted as an intermediary. CCPA observed that the platform actively facilitated product discovery and promotion. It held Meta responsible for failing to exercise due diligence regarding regulated wireless equipment.
"The crackdown demonstrates that platforms cannot hide behind disclaimers," said consumer expert Ashim Sanyal. "Allowing unlicensed walkie-talkie sales is not a minor compliance lapse. It represents a serious violation that can endanger consumers and security."
Previous Actions and Ongoing Investigations
This enforcement action follows similar penalties against other platforms. Meesho received a ₹10 lakh fine on December 4 for unauthorized walkie-talkie listings. Earlier, the CCPA imposed penalties of ₹1 lakh each on several companies including Reliance JioMart and The MaskMan Toys.
Investigations into other e-commerce players continue actively. Platforms like Amazon, OLX, and IndiaMart are currently under scrutiny. These companies received CCPA notices on May 9 regarding walkie-talkie listings. Final orders in these cases remain pending.
Specific Findings Against Flipkart
The authority documented concerning details about Flipkart's operations. According to the order, Flipkart has sold 108,206 walkie-talkie units through 8,708 registered sellers. Even more troubling, the platform kept listings visible when products were marked "out of stock" or "unavailable." These listings remained accessible with ratings and reviews, potentially misleading consumers about product legality.
The CCPA held Flipkart liable as a marketplace e-commerce entity. It imposed the penalty for unfair trade practices and misleading omissions. The authority directed the company to submit a compliance report within fifteen days.
Broader Implications for E-commerce
These orders establish important precedents for online marketplaces. The regulator clearly states that platforms cannot shift responsibility entirely onto third-party sellers. This is particularly true for products governed by sector-specific laws like wireless communication devices.
"This case highlights a systemic failure of platform-level checks," Sanyal added. "Consumers assume products on major digital platforms meet legal and safety norms. When that trust breaks, strong regulatory action becomes necessary."
Beyond monetary penalties, the CCPA issued cease-and-desist directions to both platforms. They must immediately remove all non-compliant listings. The authority ordered them to ensure walkie-talkies are not listed unless sellers provide clear information about:
- Licensing requirements
- Permitted frequency bands
- ETA/WPC certification
The authority warned that repeat violations could invite stricter action under the Consumer Protection Act of 2019.
Industry Context and Future Outlook
India's e-commerce industry continues its rapid expansion. Valued at $125 billion in 2024, projections suggest growth to $345 billion by 2030. This represents a compounded annual growth rate of 15 percent according to India Brand Equity Foundation data.
The sector has attracted significant investment recently. In the 2024-25 period, e-commerce secured $3.1 billion across 79 deals. This accounted for 31 percent of total startup funding and marked a 128 percent increase from the previous year.
It remains uncertain whether Flipkart and Meta will challenge the penalties. They could approach the National Consumer Disputes Redressal Commission or courts. However, government officials note that in most earlier cases, companies have paid penalties without challenging CCPA findings.
The case originated from a preliminary inquiry conducted in May. That examination focused on walkie-talkie listings across several e-commerce platforms. Following the inquiry, CCPA issued notices to multiple marketplaces including Amazon, Flipkart, Meesho, OLX, and IndiaMart.
These enforcement actions signal increasing regulatory scrutiny of India's digital marketplace ecosystem. As the industry grows, authorities emphasize that platforms must prioritize consumer protection and regulatory compliance from the outset.
