Top consumer watchdog fines JioMart over risky walkie-talkie listings

Accordingly, the Central Consumer Protection Authority (CCPA imposed a penalty of ₹100,000 and directed JioMart to ensure that no walkie-talkies or any product requiring statutory approval is listed without full compliance with applicable laws. A compliance report has to be filed within 15 days.

The CCPA order of 21 November, reviewed by Mint, follows a months-long inquiry that began in May, when the regulator issued notices to several e-commerce platforms over illegal sales of wireless devices operating in restricted frequency bands - or radio frequencies that are reserved for emergency services like police, or ambulance communication, defence services, or aviation. Any interference with these airwaves can disrupt essential services, and also potentially raise national security concerns.

During its inquiry, the authority found that JioMart had listed walkie-talkie models without disclosing crucial information such as operating frequency, licensing requirements or proof of Equipment Type Approval (ETA) from the Wireless Planning and Coordination Wing of the Department of Telecommunications.

The ETA certifies that a wireless device uses only those radio frequencies that are legally permissible in India and follows the technical standards set by the government.

May mislead buyers

The omission by JioMart could mislead buyers into assuming the devices were legal for unrestricted use, violating consumer rights under the Consumer Protection Act, particularly the right to be informed about product standards and regulatory compliance, the officials cited earlier said on the condition of anonymity.

JioMart is an online marketplace of Reliance Retail Ltd, a part of billionaire Mukesh Ambani's Reliance Industries Ltd, that sells grocery and a wide array of general goods.

The case stems from a preliminary inquiry in May that examined listings of walkie-talkie devices on multiple e-commerce platforms. The consumer regulator had issued notices to major marketplaces, including Amazon, Flipkart, Meesho, OLX and IndiaMart, for allowing the illegal sale of walkie-talkies operating in licensed frequency bands without mandatory regulatory disclosures. Mint had reported this on 10 May, the same day India and Pakistan announced a ceasefire to short aerial war following the Pahalgam terror attack.

Citing the findings of the order, one of the officials said that JioMart argued that it functions as a marketplace intermediary and that compliance obligations lie with the sellers. The company said it delisted the products after receiving the notice on 7 May, adding that any links appearing later were cached versions still visible on search engines. It also maintained that its seller agreements require adherence to Indian law, and that no units were sold after 21 May.

Queries sent to Reliance Retail spokespersons, including Ravi Gandhi, president and chief regulatory officer, did not elicit a response.

Unclear course

Since there has been no response from JioMart, it is unclear whether the e-commerce company will pay the penalty and make course-corrections or challenge the order before the National Consumer Disputes Redressal Commission (NCDRC) or in a higher court.

However, an investigation report submitted in August found that uncertified devices remained accessible on the platform even after JioMart claimed to have removed them. The Director General (Investigation) recorded non-cooperation by the company, including failure to appear before the investigating authority and failure to provide frequency specifications or certification records. The products sold were found to operate in restricted bands such as 400–470 MHz, far outside the licence-exempt 446.0–446.2 MHz band permitted under the 2018 rules.

The investigation report, mentioned in the CCPA order, further found that JioMart misled consumers and facilitated the sale of devices that posed regulatory risks, pointing out that online buyers rely heavily on product descriptions, as they don't physically inspect the products. The DoT’s advisory on the sale of wireless equipment, which makes intermediaries responsible for ensuring legal compliance before listing such products, was also cited by the CCPA.

“The CCPA rejected JioMart’s argument that it was a passive intermediary. It clearly said that the platform exercises significant control over product visibility, earns revenue from sales and therefore has a duty to prevent unlawful listings and the company acted only after regulatory intervention and had concealed essential information from consumers," said the second official.

Ashim Sanyal, chief operating officer of consumer rights group Consumer VOICE, said 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. “Consumers rely fully on online listings for technical and safety information, and any concealment of licensing requirements—especially for wireless devices—creates both legal and security risks," said Sanyal.

“Platforms earn commissions and control visibility. They cannot distance themselves from responsibility. The CCPA’s action rightly underscores that compliance has to be verified before products are listed, not after harm is done," Sanyal added.

Turning point

Legal experts say the case marks a turning point in how regulators assess the responsibility of e-commerce platforms, especially in categories linked to safety and licensing.

“Courts and regulators are increasingly looking at the degree of control a platform has over the marketplace. When a product category involves licensing, safety or national security considerations, platforms have a higher duty of due diligence," said Manish K. Shubhay, partner at The Precept-Law Offices.

“The CCPA order shows that failure to verify licensing or certifications before listing can be construed as an unfair trade practice," Shubhay said.

India’s e-commerce industry, valued at $125 billion in 2024, is projected to grow to $345 billion by 2030, reflecting a compounded annual growth rate of 15%, as per India Brand Equity Foundation (IBEF), a commerce ministry body.

The sector has also emerged as a key driver of investments. In 2024–25, e-commerce attracted $3.1 billion across 79 deals, accounting for 31% of total startup funding. This marked a 128% jump from 2023, when it recorded $1.4 billion across 59 deals, said IBEF.

The CCPA has taken action against several e-commerce platforms over the years. In August 2022, the authority imposed a penalty of ₹100,000 on Amazon India for selling substandard pressure cookers that did not meet mandatory quality control norms, and ordered the recall of the products. Around the same period, in September 2022, Flipkart was also directed to pay a ₹100,000 penalty for allowing the sale of similar non-compliant pressure cookers and was asked to reimburse the affected consumers.