India's top consumer protection body has imposed a significant penalty on Reliance's e-commerce platform, JioMart, for engaging in unfair trade practices related to the sale of wireless communication devices. The Central Consumer Protection Authority (CCPA) found the company guilty of listing uncertified walkie-talkies, which could potentially disrupt essential services and raise national security concerns.
The CCPA Order and Penalty Details
In a decisive move on 21 November 2025, the CCPA held JioMart accountable for misleading advertisements and unfair trade practices. The authority directed the e-commerce giant to pay a penalty of ₹100,000 and mandated that the company ensure no product requiring statutory approval is listed without full legal compliance. JioMart has been given 15 days to submit a compliance report to the regulator.
This action marks a first-of-its-kind penalty against a major e-commerce portal in India for such violations. The case originated from a preliminary inquiry in May 2025, when the CCPA issued notices to several online marketplaces, including Amazon, Flipkart, Meesho, OLX, and IndiaMart, concerning the illegal sale of wireless devices operating in restricted frequency bands.
Investigation Findings and National Security Risks
During its months-long investigation, the authority discovered that JioMart had listed various walkie-talkie models without disclosing critical information to consumers. The platform failed to provide details on operating frequency, licensing requirements, or proof of Equipment Type Approval (ETA) from the Department of Telecommunications' Wireless Planning and Coordination Wing.
The investigation revealed that the sold devices were operating in restricted bands of 400–470 MHz, far outside the licence-exempt 446.0–446.2 MHz band permitted under the 2018 rules. These restricted frequencies are reserved for emergency services like police, ambulance communication, defence services, and aviation. Any interference with these airwaves can disrupt essential services and potentially raise serious national security concerns.
An investigation report submitted in August found that uncertified devices remained accessible on JioMart even after the company claimed to have removed them. The Director General (Investigation) recorded non-cooperation from the company, including failure to appear before authorities and provide necessary certification records.
Legal Implications and Industry Impact
The CCPA firmly rejected JioMart's defence that it functioned merely as a passive marketplace intermediary, stating that the platform exercises significant control over product visibility and earns revenue from sales, thereby bearing responsibility for preventing unlawful listings. The authority noted that the company acted only after regulatory intervention and had concealed essential information from consumers.
Ashim Sanyal, Chief Operating Officer of consumer rights group Consumer VOICE, emphasized that the order sends a clear message that large e-commerce platforms cannot hide behind the "intermediary" label when unsafe or uncertified products are sold on their sites. He stated that consumers rely entirely on online listings for technical and safety information, and any concealment of licensing requirements creates both legal and security risks.
Legal experts view this case as a turning point in how regulators assess e-commerce responsibility. Manish K. Shubhay, partner at The Precept-Law Offices, explained that courts and regulators are increasingly examining the degree of control a platform has over its marketplace, especially for products involving licensing, safety, or national security considerations.
This ruling comes amid significant growth in India's e-commerce industry, valued at $125 billion in 2024 and projected to reach $345 billion by 2030, according to the India Brand Equity Foundation. The sector has emerged as a key investment driver, attracting $3.1 billion across 79 deals in 2024–25, accounting for 31% of total startup funding.
