Delhi High Court Shields Meta from Immediate Action Over Facebook Marketplace Listings

The Delhi High Court instructed the Central Consumer Protection Authority not to take coercive measures against Meta over unauthorized Facebook Marketplace listings without giving it a fair chance to defend itself. Meta argued against a Rs 10 lakh fine and disputed CCPA's jurisdiction and order, claiming Facebook Marketplace was not an e-commerce platform.

The Delhi High Court has intervened in a case involving Meta Platforms Inc, advising the Central Consumer Protection Authority (CCPA) to refrain from taking coercive action against the company regarding unauthorized listings on Facebook Marketplace. The court emphasized the need for Meta to be granted an opportunity to present its case before any punitive measures are taken.

Justice Purushaindra Kumar Kaurav highlighted that the social media giant cannot be penalized based on vague directives. Meta's legal representation described the Rs 10 lakh penalty levied by the CCPA as unjust, arguing that Facebook Marketplace facilitates user-based transactions rather than operating as an e-commerce platform.

The court has allowed Meta to challenge the CCPA's jurisdiction in the National Consumer Disputes Redressal Commission (NCDRC), asserting that the CCPA's directives overstepped legal bounds. The case is seen as a significant examination of consumer protection laws applied to social media networks.