The Karnataka High Court has stepped in to pause a ₹10 lakh penalty slapped on Flipkart by the Central Consumer Protection Authority (CCPA), offering temporary relief to the e-commerce major in a dispute over the sale of walkie-talkies online.
The fine stemmed from allegations that Flipkart — along with Meta Platforms’ marketplace — allowed walkie-talkies to be sold without clearly disclosing key regulatory requirements. These included details on permitted frequency bands, licensing rules, and mandatory approvals, omissions the authority said could mislead buyers into assuming the devices were free for unrestricted use.
Justice B.M. Shyam Prasad, hearing Flipkart’s challenge to the order, stayed not only the payment of the penalty but also a separate directive that required the company to carry out periodic self-audits. The interim protection will remain in place until the next hearing.
Earlier this year, the consumer protection authority concluded that the lack of disclosures amounted to misleading conduct and unfair trade practices under the Consumer Protection Act, 2019, and imposed identical fines on both platforms.
Flipkart countered the move by arguing that its role was limited to providing an online marketplace, with compliance responsibilities resting on the individual sellers offering the products. The court was also told that the company had already taken down the listings in question.
After considering these submissions, the High Court granted interim relief and formally issued notice to the authorities involved. The case is scheduled to come up for further hearing on February 11.
For now, the penalty — and the compliance burden tied to it — remains on hold.
