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Focus: GS-III Indian Economy

Why in news?

The Consumer Protection Act, 2019 has come into force in 2020, and as provided in the act – the Central Consumer Protection Authority (CCPA) has been established.

Central Consumer Protection Authority (CCPA)

  • Central Consumer Protection Authority is being constituted under the Consumer Protection Act, 2019 replacing the 1986 act seeking to widen its scope in addressing consumer concerns, hence CCPA is a Statutory Body.
  • The Consumer Protection Act, 2019 recognises offences such as providing false information regarding the quality or quantity of a good or service, and misleading advertisement.
  • It also specifies action to be taken if goods and services are found “dangerous, hazardous or unsafe”.
  • The CCPA aims to protect the rights of the consumer by cracking down on unfair trade practices, and false and misleading advertisements that are detrimental to the interests of the public and consumers.
  • The CCPA will have the powers to inquire or investigate into matters relating to violations of consumer rights or unfair trade practices suo motu, or on a complaint received, or on a direction from the central government.
  • The CCPA can 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. It will issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services.

What will the CCPA do if any goods or services are found not meeting the standards?

Under the act, CCPA will have powers to 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; and discontinuation of practices which are unfair and prejudicial to consumer’s interest”.

December 2023