Context:
Recently, the Central Consumer Protection Authority (CCPA) imposed a penalty of Rs. 3 lakh on an advertisement by an Edtech platform that was found to be “false and misleading” under Section 21 of the Consumer Protection Act.
Relevance:
GS II: Polity and Governance
About Central Consumer Protection Authority
- CCPA is a regulatory body established in 2020 based on the provisions of the Consumer Protection Act, 2019.
- CCPA works under the administrative control of the Ministry of Consumer Affairs.
Composition:
- It will have a Chief Commissioner as head, and only two other commissioners as members — one of whom will deal with matters relating to goods while the other will look into cases relating to services.
- The CCPA will have an Investigation Wing that will be headed by a Director General.
- District Collectors too, will have the power to investigate complaints of violations of consumer rights, unfair trade practices, and false or misleading advertisements.
Objective:
- To promote, protect and enforce the rights of consumers as a class.
- To conduct investigations into violation of consumer rights and institute complaints/prosecution.
- To order the recall of unsafe goods and services, discontinuation of unfair trade practices and misleading advertisements.
- To impose penalties on manufacturers/endorsers/publishers of misleading advertisements.
Powers and Functions:
- Inquire or investigate into matters relating to violations of consumer rights or unfair trade practices suo moto, or on a complaint received, or on a direction from the central government.
- Recall goods or withdrawal of services that are “dangerous, hazardous or unsafe.
- Pass an order for refund the prices of goods or services so recalled to purchasers of such goods or services; discontinuation of practices which are unfair and prejudicial to consumer’s interest”.
- Impose a penalty up to Rs 10 lakh, with imprisonment up to two years, on the manufacturer or endorser of false and misleading advertisements. The penalty may go up to Rs 50 lakh, with imprisonment up to five years, for every subsequent offence committed by the same manufacturer or endorser.
- Ban the endorser of a false or misleading advertisement from making endorsement of any products or services in the future, for a period that may extend to one year. The ban may extend up to three years in every subsequent violation of the Act.
- File complaints of violation of consumer rights or unfair trade practices before the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission.
-Source: The Hindu
