Meta moves Delhi HC against CCPA’s Rs 10 lakh fine, says Facebook Marketplace is not an e-commerce platform

On March 18, Meta Platforms took legal action against the Delhi High Court regarding a penalty of Rs 10 lakh imposed by a consumer protection authority. The fine was related to alleged unauthorized listings of walkie-talkies on Facebook Marketplace. Meta contends that this platform does not operate as an e-commerce service. This legal dispute stems from a January ruling by India’s Central Consumer Protection Authority (CCPA), which stated that Meta had breached consumer protection and IT regulations by permitting the listing of regulated devices without the necessary disclosures. Senior advocate Mukul Rohatgi, representing Meta, emphasized in court that Facebook Marketplace merely serves as a 'notice board' and does not facilitate commercial transactions. Rohatgi articulated, 'We are not providing a virtual Khan Market. This is a notice board meant only for Facebook users. We do not engage in commercial sales or charge any fees.' He reiterated that the platform operates without any financial transactions or mechanisms to buy or sell. Justice Purushaindra Kumar Kaurav raised questions about the validity of the plea, urging Meta to clarify why the CCPA’s order might be outside its jurisdiction. The court also inquired whether the case should be escalated to the National Consumer Disputes Redressal Commission, and it has scheduled further proceedings for March 25. In its petition, Meta asserted that Facebook Marketplace is intended as a free service for individuals looking to buy or exchange goods personally, not for businesses, and does not impose any commission fees. The company argued that the CCPA misclassified the platform as an e-commerce intermediary, warning that such interpretations could impose e-commerce regulations on nearly all digital platforms, including online forums and classified ads, thus burdening average users. The CCPA's January 1 order mandated that Meta prevent the listing of products requiring statutory approvals, like walkie-talkies, without compliance and to carry out regular self-audits of listings. The authority had proactively addressed what it termed widespread illegal listings of walkie-talkies across various platforms, identifying over 16,000 non-compliant listings and sending notices to multiple e-commerce entities, including Amazon and Flipkart.