The Central Consumer Protection Authority (CCPA) has fined M/s Hogar Technologies and Innovations LLP a penalty of INR 1 lakh for failing to disclose essential regulatory information, such as operating frequencies and licensing requirements, in advertisements and product listings of walkie-talkies. This is part of the CCPA's ongoing enforcement actions against misleading advertisements related to walkie-talkies across various online platforms.
The Central Consumer Protection Authority (CCPA) has imposed a penalty of INR 1 lakh on M/s Hogar Technologies and Innovations LLP for inadequate disclosure of regulatory requirements in the advertisements and product listings of walkie-talkies. The order was passed by the CCPA, headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, under the Consumer Protection Act, 2019.
This action forms part of the CCPA’s ongoing enforcement measures against misleading advertisements and unfair trade practices relating to the listing, advertisement, and sale of walkie-talkies (Personal Mobile Radios) across online platforms and websites.
In its latest order, the CCPA examined advertisements and product listings of various walkie-talkie models displayed on the website of M/s Hogar Technologies and Innovations LLP. The Authority observed that the listings did not clearly disclose the operating frequencies of the devices, applicable licensing requirements, and regulatory approvals. Such omissions could mislead consumers into believing that the devices could be legally operated without obtaining the requisite regulatory authorizations.
Use of Low Power and Very Low Power Short Range Radio Frequency Devices (Exemption from Licensing Requirement) Rules, 2018, specify that personal mobile radios operating within the prescribed frequency range are exempt from the requirement of obtaining a license, subject to applicable conditions. Other wireless radio frequency devices operating outside the exempted frequency range are subject to the relevant regulatory requirements.
During the proceedings, the company submitted that it possessed a valid Dealer Possessing Licence (DPL) and that the devices were covered by applicable Equipment Type Approval (ETA) certifications. It also contended that its website was primarily intended for informational and lead-generation purposes and did not facilitate direct online transactions.
After examining the company’s submissions, investigation findings, and material available on record, the CCPA observed that possession of regulatory approvals does not absolve an advertiser of its obligation to provide accurate, complete, and material information to consumers at the pre-purchase stage. Website-based product promotions are also subject to consumer protection requirements.
The CCPA further observed that the absence of an online payment gateway or shopping cart facility does not exclude promotional representations made through a website from the ambit of misleading advertisements under the Consumer Protection Act, 2019. Advertisements and product listings must provide adequate information regarding applicable regulatory requirements, irrespective of the mode through which the products are ultimately sold.
The Authority noted that omission of material information concerning operating frequencies and licensing requirements was likely to mislead consumers about the conditions under which the advertised devices could lawfully be operated. Such omissions could expose consumers to potential legal and financial consequences and undermine their ability to make informed purchasing decisions.
Source:
Press Information Bureau
