CCPA Fines Xboom ₹10 Lakh for Anti-Drone and Jammer Ads Without Licence Disclosures

Consumer regulator treats enquiry-based product listings as advertisements

The Central Consumer Protection Authority imposed a ₹10 lakh penalty on Xboom Utilities over online advertisements for anti-drone systems, drone jammers and related restricted equipment that did not adequately disclose licensing and regulatory limitations.

The CCPA initiated suo motu proceedings after finding several products listed on the company's website. It concluded that equipment capable of interfering with licensed communications cannot be presented like an ordinary unrestricted commercial product where statutory permissions govern sale, possession or use.

Enquiry model did not remove advertising obligations

Xboom argued that its website was enquiry-based rather than an open retail marketplace and that its intended customers were authorised institutional users such as government or defence agencies. The Authority rejected the contention that this prevented the listings from amounting to advertisements because the products were publicly represented in a manner capable of attracting customers.

The CCPA found violations relating to consumer rights, misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019. It was also not satisfied that documents relating to third-party supply arrangements established regulatory compliance.

Final outcome

Xboom was fined ₹10 lakh and directed not to list, advertise, promote or offer anti-drone systems, jammers or similar restricted equipment unless applicable approvals and licensing restrictions are prominently disclosed. Access must also be limited to authorised users wherever the law requires it. A compliance report must be filed within 15 days.

Authority: CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra

For Xboom: Amrita Sharma and Mahima Sadawat

Source: https://www.barandbench.com/news/litigation/ccpa-imposes-10-lakh-fine-on-xboom-for-ads-of-anti-drone-systems-without-licence-disclosures