Karnataka High Court stays ₹10 lakh penalty imposed on Flipkart by consumer protection authority

The Karnataka High Court recently stayed a penalty of ₹10 lakh imposed on Flipkart by the Central Consumer Protection Authority (CCPA) for permitting the sale of walkie-talkies on its platform without mandatory disclosures relating to licensing and regulatory compliance. [Flipkart Internet Private Limited v. Central Consumer Protection Authority]

Justice BM Shyam Prasad also put on hold a direction requiring the e-commerce platform to conduct periodic self-audits.

"In consideration thereof, the interim order is granted staying the direction of payment of penalty of Rs.10,00,000/- until the next date of hearing, and consequentially, the further direction to the petitioner for periodical self audit is also stayed for the present," the Court ordered on February 2.

In January 2026, the CCPA imposed a ₹10 lakh penalty each on Flipkart and Meta Platforms (Facebook Marketplace), holding that both platforms hosted and facilitated listings of walkie-talkies without informing consumers about critical legal requirements such as operating frequency range, the need for a wireless operating licence and Equipment Type Approval (ETA) certification. The Authority found that these omissions misled consumers into believing that the devices were lawful for unrestricted use.

Concluding that both platforms had engaged in misleading advertisements and unfair trade practices in violation of Sections 2(28), 2(47), 20 and 21 of the Consumer Protection Act, 2019, the CCPA imposed a ₹10 lakh penalty on both of them.

Flipkart then challenged the CCPA decision in a writ petition before the High Court. Senior Advocate GS Kannur, appearing for Flipkart, contended that CCPA could not have acted against the platform as its role was limited to that of an intermediary.

Under the applicable consumer protection framework, compliance obligations rest with the retailers listed on the platform and not with intermediaries facilitating online marketplaces, Kannur said.

The Court was also informed that Flipkart has already complied with directions to remove the concerned products from its website.

Taking note of these submissions, the Court granted an interim stay on the direction requiring Flipkart to pay the penalty of ₹10 lakh.

The Court directed Deputy Solicitor General Shanthi Bhushan H to accept notice on behalf of the respondents. The matter has been posted for further hearing on February 11.

Kannur was briefed by a team from JSA Advocates & Solicitors led by Senior Partner Dhiraj Nair.

[Read Order]