CCPA slaps Rs 10 lakh fine on Xboom for selling anti-drone, jammer devices without approvals

The Central Consumer Protection Authority has imposed a penalty on Xboom for unauthorized advertising of anti-drone systems. The company failed to disclose essential licensing information related to its drone products. An inquiry revealed instance...

iStock
New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Bengaluru-based e-commerce firm Xboom for illegally listing and advertising anti-drone systems, drone jammers and GPS jammers on its platform without the requisite regulatory clearances.

In an order issued recently, the CCPA directed Xboom (www.xboom.in) to stop listing, hosting, advertising, promoting or offering these products for sale unless accompanied by proper regulatory approvals and statutory disclosures. The company has been given 15 days from the date of the order to submit a compliance report.

The CCPA's investigation, initiated suo motu, found that Xboom had listed six products under an "AntiDrone" category on its website, each carrying detailed technical specifications and marketing claims about their jamming and disruption capabilities.


The listings offered only an "Enquire on WhatsApp" mode of engagement, but carried no disclosure about licensing requirements, the restricted nature of the equipment, or the penal consequences of unauthorised possession or use.

The authority said this conduct prima facie violated provisions of the Consumer Protection Act, 2019, the Consumer Protection (E-Commerce) Rules, 2020, the Indian Telegraph Act, 1885, and the Telecommunications Act, 2023, among other applicable laws.

The CCPA also noted that Xboom failed to explain why restricted products were made publicly searchable at all, even under a claimed enquiry-based model, without any visible disclosure of licensing restrictions on the listings themselves. Finding the company's response prima facie unsatisfactory, the authority invoked Section 19 of the Act to order a detailed investigation, holding that a prima facie case of unfair trade practice and consumer rights violation existed.
ADVERTISEMENT

Significantly, the CCPA found Xboom's claim of operating on a strictly enquiry-based model to be inconsistent with the platform's own functioning -- certain drone products were available with an "Add to Cart" option, allowing purchase without any apparent pre-screening or end-user verification. This, the authority said, raised questions on how the company ensured sales only to authorised buyers.

The CCPA further observed that even after being served a showcause notice, Xboom did not revise the specifications or descriptions of other drone-related listings on its platform.

These listings, it said, continue to lack disclosures on licences, certifications, approvals or other statutory requirements -- undermining consumers' ability to make informed purchasing decisions.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › News › India › CCPA slaps Rs 10 lakh fine on Xboom for selling anti-drone, jammer devices without approvals
Text Size:AAA
Success
This article has been saved

*

+