Meta, Amazon, Flipkart fined as govt cracks down on illegal walkie-talkie sales on e-commerce platforms

India's consumer protection authority has taken decisive action against major e-commerce platforms, including Meta Platforms, Amazon, and Flipkart, for their involvement in the unauthorized sale of walkie-talkies. This crackdown highlights significant concerns regarding public safety and national security due to the sale of unauthorized radio devices operating on sensitive frequency bands. On January 16, the Central Consumer Protection Authority (CCPA) reported identifying over 16,900 non-compliant listings of Personal Mobile Radios (PMRs) being sold without the necessary approvals and disclosures. As a result, the regulatory body imposed fines of Rs 10 lakh each on Amazon Seller Services, Flipkart Internet, and Meta Platforms, which oversees Facebook Marketplace. Additionally, smaller penalties were levied on platforms such as Meesho and JioMart. The action follows a suo motu investigation by the CCPA, which unveiled what it termed as the “large-scale illegal listing and sale” of walkie-talkies that operate on restricted frequencies, crucial for services such as police and emergency response. Many devices discovered were functioning within the ultra-high frequency (UHF) range of 400–470 MHz, a spectrum that requires licensing in India, yet were misleadingly advertised as “license-free.” The CCPA emphasized that numerous listings violated the Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020, by not providing essential information to consumers, including operating frequencies and required licenses. Under current Indian regulations, only walkie-talkies that operate strictly within the 446.0–446.2 MHz band are exempt from licensing, and even these need prior Equipment Type Approval (ETA) certification before sale or import. The authority issued notices to 13 platforms, including Amazon, Flipkart, Meesho, and Meta, with final orders affecting eight entities. Amazon was found to host 467 non-compliant walkie-talkie listings, while Flipkart facilitated the sale of over 100,000 units, many of which were operating outside the license-exempt band. On Facebook Marketplace, hundreds of listings were flagged, resulting in the removal of over 700 products following the CCPA's intervention. Some companies defended themselves by claiming they were merely intermediaries for third-party sellers. However, the CCPA dismissed this argument, stating that platforms must conduct due diligence when allowing the sale of regulated products. The authority has mandated all platforms to ensure that walkie-talkies and similar devices are not listed without appropriate government approvals and to undertake regular compliance audits. Ongoing proceedings against several other companies are still in progress.