Consumer Watchdog Fines Walkie-Talkie Seller One Lakh Rupees Over Hidden License Rules

The Central Consumer Protection Authority has fined a walkie-talkie seller one lakh rupees for misleading advertisements that hid essential regulatory details.

The Crackdown

This penalty is part of a broader crackdown against unfair trade practices and misleading ads in the online sale of personal mobile radios. The authority has spotted over 16,970 non-compliant product listings across various e-commerce websites and sent notices to 13 different entities. Led by chief commissioner Nidhi Khare and commissioner Anupam Mishra, the authority noted that the penalized seller failed to state device operating frequencies, required licenses, and regulatory approvals. Such hidden details could trick buyers into thinking the radios can be used legally without proper permissions.

Seller Defense And Rules

During the hearings, the seller stated that it held a valid Dealer Possessing Licence and proper Equipment Type Approval certifications for the products. The company also argued that its website only provided information and generated leads rather than completing direct online sales. However, the authority ruled that having regulatory approvals does not excuse sellers from sharing clear information beforehand. It also emphasized that website promotions fall under the Consumer Protection Act of 2019 even without direct sales. Under 2018 rules, walkie-talkies using the 446.0 to 446.2 MHz band may be exempt from licensing under specific conditions, but devices outside this range face strict regulatory requirements.

Penalties And Court Actions

The authority has now passed final orders against 12 entities, collecting a total of 58 lakh rupees in fines for misleading ads. Five of these entities received fines of 10 lakh rupees each, while seven others were fined one lakh rupees each. Some companies have challenged these orders in judicial forums and consumer dispute redressal commissions, with one firm ordered to deposit its penalty amount.

Context

Regulatory bodies like the Central Consumer Protection Authority monitor online market platforms to protect buyers from deceptive commercial practices. Clear product disclosures help consumers avoid buying restricted items that might violate national telecommunications and wireless laws.