Walkie-talkies on Facebook Marketplace: Delhi High Court restrains CCPA from acting against Meta without hearing

The Delhi High Court on Wednesday asked the Central Consumer Protection Authority (CCPA) not to take any coercive action against Meta Platforms over unauthorised listing of walkie-talkies on Facebook Marketplace without granting the company a hearing.

Justice Purushaindra Kumar Kaurav said that Meta "should not be penalised on account of any vague or omnibus directions".  

"It would mean that before taking any coercive steps, the petitioner should be given due opportunity for a hearing," the Court said. 

The Court passed the order on a plea filed by Meta challenging a CCPA order which held that Facebook Marketplace violated several laws by listing walkie-talkies on the platform.

The January 1 order of the CCPA imposed a fine of ₹10 lakh on Facebook and directed the platform to enforce strict compliance rules on listings of specific products, including walkie-talkies, drones, GPS devices and other regulated items.

The CCPA also directed the platform to ensure that no product needing statutory approval or certification is listed, hosted, advertised or sold without full legal compliance and mandatory disclosures. In addition, Meta was directed to carry out periodic self-audits to detect and prevent violations and publish certificates of these audits publicly, the CCPA order said.

Meta then approached the High Court against the same.

Senior Advocate Arvind Datar appeared for Meta and told the Bench that the company had complied with the CCPA direction to stop platforming walkie-talkies.

However, he challenged the CCPA's wider directive requiring Facebook Marketplace to ensure that no product requiring statutory approval or certification is listed on the platform without the necessary approvals.

Datar also objected to the CCPA's reliance on the Information Technology Rules.

Counsel appearing for the CCPA argued that the directions are justified and that CCPA is empowered to issue the same.

After considering the case, the High Court ordered the CCPA to hear Meta before passing any coercive orders. It also said that the tech company can approach the National Consumer Disputes Redressal Commission (NCDRC) with its argument that the CCPA lacks jurisdiction over it.

In its petition, Meta had contended that the CCPA order imposes obligations on individual users and commercial entities alike, creating operational burdens that are “impracticable and onerous.”

“If the Impugned Order is allowed to continue, individual users...would be compelled to comply with obligations designed for commercial sellers...These users would be faced with compliance requirements that are impracticable and onerous and would inevitably result in their exclusion from the platform, undermining the very purpose and utility of the Marketplace,” argued the plea.

The petition further cautioned that the order’s broad scope and its misclassification of the company as an e-commerce entity could have lasting consequences, potentially influencing future regulatory action and harming its reputation and business operations in India with no adequate remedy.

It also highlighted the steps Meta has already taken, including removing non-compliant walkie-talkie listings, providing user data to authorities and implementing automated enforcement systems.