Central Consumer Protection Authority (CCPA)

Central Consumer Protection Authority (CCPA)

Subject – Governance

Context – CCPA cracks down on firms with misleading Covid ads.

Concept –

• The Consumer Protection Act, 2019 establishes the Central Consumer Protection Authority (CCPA) whose primary objective will be to promote, protect and enforce the rights of consumers.
• It will be empowered to conduct investigations into violation of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements.
• It will be headquartered in the National Capital Region of Delhibut the central government may set up regional offices in other parts of the country.
• The Act defines “misleading advertisement” in relation to any product or service, as “an advertisement, which—
  • (i) falsely describes such product or service; or
  • (ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or
  • (iii) conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or
  • (iv) deliberately conceals important information”.
• 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.
• Ministry of Consumer Affairs, Food and Public Distribution is yet to issue guidelines on misleading advertisements.