Consumer Watchdog Imposes Heavy Penalty on B2B Platform for Regulatory Violations
The Central Consumer Protection Authority (CCPA) has levied a substantial penalty of ₹10 lakh on Infocom Network Pvt. Ltd, the operator of TradeIndia.com, one of India's premier B2B marketplaces. This action comes in response to the platform's facilitation of walkie-talkie device sales without adhering to mandatory disclosures and regulatory standards. According to an order dated 10 February, a significant volume of these devices, predominantly manufactured in China, were sold through various sellers on TradeIndia.com, with no verifiable certification for legal sale in India.
Serious Consumer Safety and Compliance Concerns Raised
The CCPA highlighted that the availability of uncertified imported wireless devices on the platform poses grave risks to consumer safety and regulatory adherence. This case follows earlier penalties imposed on other major e-commerce entities, including Flipkart, Meta Platforms, Meesho, Reliance JioMart, Talk Pro, The MaskMan Toys, and Chimiya, for similar violations involving walkie-talkie sales lacking necessary clearances.
Platform Failed to Display Critical Regulatory Information
The order detailed that TradeIndia.com permitted listings, advertisements, and sales of regulated wireless communication devices without clearly presenting essential information such as licensing requirements, frequency range specifications, or Equipment Type Approval (ETA) certification from the Wireless Planning and Coordination (WPC) Wing of the Department of Telecommunications. Walkie-talkies are governed under key legislations including the Indian Telegraph Act, 1885, the Wireless Telegraphy Act, 1933, and the Use of Low Power and Very Low Power Short Range Radio Frequency Devices Rules, 2018. While some frequency bands are exempt from licensing, others mandate authorisation and ETA certification.
Listings on the platform were found lacking adequate details on operating frequency range or licensing status, thereby confusing consumers about whether devices were licence-exempt or required regulatory approval. This omission was deemed a misleading advertisement and unfair trade practice under Sections 2(28) and 2(47) of the Consumer Protection Act, 2019.
CCPA Rejects Platform's Intermediary Defense
In its final verdict, the CCPA emphasized that TradeIndia, despite positioning itself as a B2B marketplace, qualifies as an e-commerce entity under the Consumer Protection (E-commerce) Rules, 2020. As such, it is obligated to exercise due diligence in preventing the listing and sale of prohibited or regulated products. The authority dismissed the platform's claim of being a passive intermediary, ruling that digital marketplaces must proactively ensure compliance, particularly for products involving statutory licensing and spectrum regulations.
The continued presence of such listings, even after advisories were issued, was viewed as a failure to meet due diligence requirements under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Notably, many listings used alternative terms like "wireless communication devices" and "interphones" to circumvent detection, and screenshots from hearings showed active listings still lacking mandatory disclosures.
National Security Implications and Legal Risks
The CCPA further observed that the sale of non-compliant wireless devices could expose consumers to legal liabilities and potential national security threats. Buyers heavily depend on online descriptions and images, lacking physical access to verify regulatory compliance before purchase. Amit Singh, associate professor at the Special Centre for National Security Studies, Jawaharlal Nehru University, elaborated on the broader implications.
"Walkie-talkies operate on regulated spectrum bands, and unauthorised devices—especially those imported without proper certification—can pose both regulatory and security risks. If such equipment is manufactured abroad and sold without Equipment Type Approval, authorities have limited visibility over frequency compliance and technical standards," Singh explained. "In sensitive environments, misuse or interference with licensed spectrum can have operational implications. That is why regulatory enforcement in this segment is as much about security as it is about consumer safety."
Directives for Future Compliance
The CCPA has mandated TradeIndia to ensure strict adherence to statutory requirements and prevent any recurrence of such listings. It underscored that digital platforms cannot evade responsibility by shifting the burden solely to third-party sellers. Queries sent to Infocom Network Pvt. Ltd remained unanswered at the time of reporting, highlighting the ongoing scrutiny in this regulatory crackdown.
