NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a ₹10 crore fine on Infocom Network Pvt. Ltd, the operator of TradeIndia.com, one of India’s largest B2B platforms, for hosting and facilitating the sale of radios without mandatory disclosure and compliance.
As per order dated February 10, a large number of radios were sold through various dealers on TradeIndia.com. The devices were largely manufactured in China and no information was found on the platform to establish a valid certification for sale in India. India’s consumer watchdog also noted that the availability of uncertified imported wireless devices has raised serious concerns about consumer safety and compliance.
The Mint has seen a copy of the order.
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Earlier, Flipkart, Meta Platforms, Meesho, Reliance JioMart, Talk Pro (Iconet Services Pvt. Ltd), The MaskMan Toys and Chimiya were penalized for selling walkie-talkies without required regulatory clearances.
The order stated that the platform allows listings, advertisements, and sales of regulated wireless communications devices without clearly displaying licensing requirements, frequency range specifications, or Equipment Type Approval (ETA) certification from the Department of Telecommunications’ Wireless Planning and Coordination (WPC) division.
The CCPA found that radios are regulated under the Indian Telegraph Act, 1885, the Wireless Telegraphy Act, 1933 and the Use of Low Power and Very Low Radio Frequency Short Range Equipment Rules, 2018. While some frequency bands are exempt from licensing, others require mandatory authorization and ETA certification.
The listing on TradeIndia.com, the order said, did not provide sufficient detail regarding the operating frequency range or the status of licenses, making it difficult for consumers to determine whether the devices were license-exempt or required regulatory approval.
“The provision of such material information amounted to false advertising and unfair trade practices under Section 2(28) and Section 2(47) of the Consumer Protection Act 2019,” he said.
Inquiries sent to Infocom Network Pvt. Ltd remained unanswered till press time.
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In handing down the final verdict, the CCPA said: “In light of the nature of the breaches detailed in the preceding paragraphs, it is necessary that the opposing party be ordered to pay a fine of ₹10,00,000 for indulging in false advertising and unfair business practices.”
Significantly, the CCPA ruled that TradeIndia, despite claiming to operate as a B2B marketplace, qualifies as an electronic commerce entity under the Consumer Protection (e-commerce) Rules 2020 and is required to exercise due diligence in preventing the listing and sale of prohibited or regulated products.
The CCPA rejected the platform’s argument that it only acted as a passive intermediary. It ruled that intermediaries hosting structured digital marketplaces must take proactive steps to ensure compliance, particularly where products involve statutory licensing and spectrum regulation. The continued availability of such lists, even after notice, was considered a failure to exercise due diligence under the Information Technology (Guidelines for Intermediaries and Digital Media Code of Conduct) Rules 2021.
The order noted that many filings described the products under alternative terms, such as “wireless communication devices” and “interphone,” even after the notice was issued. Screenshots examined during the hearing showed that the listings continue to be active without mandatory disclosure of licensing requirements, frequency bands and ETA/WPC certifications.
The CCPA also noted that the sale of non-compliant wireless devices can expose consumers to legal risks and potential national security impacts, noting that buyers rely heavily on online descriptions and images and lack physical access to verify compliance prior to purchase.
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An expert on national security issues said the issue goes beyond consumer protection.
“Transmitters operate in regulated spectrum bands, and unauthorized equipment – especially those imported without proper certification – can pose regulatory and security risks. If such equipment is manufactured abroad and sold without equipment type approval, authorities have limited insight into frequency compliance and technical standards,” said Amit Singh, associate professor at the Special Center for National Security Studies, Jawaharlal Nehru University.
“In sensitive environments, misuse or interference with licensed spectrum can have operational consequences. This is why regulatory enforcement in this segment is as much about security as it is about consumer safety,” Singh said.
The CCPA directed TradeIndia to ensure strict compliance with legal requirements and prevent repetition of such records, stressing that digital platforms cannot escape responsibility by shifting the burden solely to third-party sellers.