CCPA Fines Hogar Technologies ₹1 Lakh for Misleading Walkie-Talkie Ads
The Central Consumer Protection Authority (CCPA) has imposed a fine of ₹1 lakh on M/s Hogar Technologies and Innovations LLP for failing to provide essential regulatory information in their advertisements and product listings for walkie-talkies. This action, overseen by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, stems from a violation of the Consumer Protection Act, 2019, as the listings were misleading to consumers regarding necessary operating frequencies and licensing requirements.
The CCPA’s decision is part of a broader initiative to combat misleading advertisements and unfair trade practices related to the sale of personal mobile radios, commonly known as walkie-talkies, on various online platforms. The Authority found that the company’s listings failed to disclose crucial details, leading consumers to believe they could operate the devices legally without the appropriate permissions.
According to the Use of Low Power and Very Low Power Short Range Radio Frequency Devices (Exemption from Licensing Requirement) Rules, 2018, certain personal mobile radios that operate within the parameters of 446.0–446.2 MHz do not require a license, provided all conditions are met. However, walkie-talkies using different frequencies face stringent regulations.
During the investigation, Hogar Technologies asserted that it held a valid Dealer Possessing Licence (DPL) and that its devices met the relevant Equipment Type Approval (ETA) certifications. The company argued that its website was mainly for promotional and informational purposes, not for direct sales. However, the CCPA clarified that even without e-commerce functionalities, all product promotions must comply with advertising standards outlined in the Consumer Protection Act, 2019.
The CCPA also acknowledged the potential for consumer deception due to the lack of clarity on operating frequencies and licensing requirements. Such oversights can lead to significant legal and financial risks for consumers, underlining the necessity for comprehensive disclosures at the point of sale.
This latest penalty is part of the CCPA’s ongoing scrutiny of approximately 16,970 misleading walkie-talkie listings identified during investigations of e-commerce platforms. The Authority has already issued penalties totaling ₹58 lakh against a total of 12 entities involved in similar practices. This includes ₹10 lakh fines against major e-commerce players like Amazon and Flipkart, along with smaller penalties against several others.
Companies that have disputed the CCPA’s decisions have taken their cases to various judicial bodies, including the High Court and the National Consumer Disputes Redressal Commission. As these reviews continue, the CCPA remains resolute in its mission to protect consumer rights and ensure transparency in advertising.
The CCPA emphasizes the critical need for businesses to transparently disclose operating frequencies, licensing requirements, and other important regulatory details in their advertisements. This initiative aims to empower consumers to make informed purchasing decisions, especially regarding products subject to regulatory oversight.
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