Meta Platforms Inc. has contested a Central Consumer Protection Authority (CCPA) order in the Delhi High Court that imposed a Rs 10 lakh penalty on the company for unauthorized walkie-talkie listings on Facebook Marketplace. The senior counsel for Meta argued that Facebook functions as a ‘notice board’ and not an e-commerce platform like Amazon or Flipkart, hence CCPA lacks jurisdiction over it.
Meta’s petition, scheduled for a hearing on March 25, questions the CCPA’s jurisdiction and why the matter cannot be addressed by the National Consumer Disputes Redressal Commission. Meta’s representative highlighted that Facebook Marketplace is a service for personal transactions among individuals, explicitly prohibiting business listings.
The CCPA’s order accused Meta of breaching consumer protection laws and IT regulations by allowing walkie-talkie listings without necessary disclosures. Meta clarified that Facebook Marketplace does not facilitate commercial sales, charging no commissions, and serving solely as a platform for personal exchanges.
The legal dispute raises questions about the regulatory oversight of online platforms and the distinction between e-commerce entities and social media networks. The outcome of this case could influence the interpretation of intermediary liability and consumer protection regulations in the tech industry.
Source: Tech-Economic Times