Central Consumer Protection Authority (CCPA) Advisory on Endorsing Illegal Betting
- March 7, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Central Consumer Protection Authority (CCPA) Advisory on Endorsing Illegal Betting
Subject: Polity
Section: Legislation in news
Advisory to Celebrities and Social Media Influencers:
- CCPA has asked celebrities and social media influencers to refrain from endorsing or promoting illegal betting and gambling activities.
- Stringent action will be taken against those found promoting such activities.
Concern Over Betting Platforms’ Use of Celebrities:
- The advisory notes that betting platforms are employing celebrities and influencers to endorse and promote betting activities.
Legal Implications for Promotion:
- Engaging in promoting or advertising online gambling and betting, being illegal in most states, makes one equally liable for participating in illegal activities.
- Celebrities and influencers are advised to refrain from endorsing and promoting illegal betting and gambling activities.
Past Advisories by Information & Broadcasting Ministry:
- The Information & Broadcasting Ministry has issued advisories in the past cautioning publishers and digital platforms against carrying ads promoting betting or gambling.
Prohibition of Betting and Gambling:
- Betting and gambling are prohibited under the Public Gaming Act 1867 and are considered illegal in most regions of India.
- Advertisement or promotion of online betting platforms and apps promotes an activity predominantly banned.
Persistence of Online Betting Platforms:
- Despite legal prohibitions, online betting platforms and apps continue to advertise betting and gambling, sometimes under the guise of gaming.
Financial and Socio-economic Implications:
- Endorsements of such activities have significant financial and socio-economic implications, especially for the youth.
Guidelines for Prevention of Misleading Advertisements:
- The CCPA mentions the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
- These guidelines categorically prohibit advertisements of products or services prohibited under any prevailing law.
Stringent Measures for Violations:
- Any violation of the guidelines will lead to stringent measures as per the Consumer Protection Act, 2019.
- Measures will be initiated against manufacturers, advertisers, publishers, intermediaries, social media platforms, endorsers, and other relevant stakeholders involved in promoting illegal betting and gambling.
Central Consumer Protection Authority (CCPA):
Establishment:
- Established in 2020 based on the provisions of the Consumer Protection Act, 2019.
- Nodal Ministry: The Ministry of Consumer Affairs.
Composition:
- The CCPA is headed by a Chief Commissioner.
- It consists of two other Commissioners as members:
- One Commissioner deals with matters relating to goods.
- The other Commissioner handles cases related to services.
- Additionally, the CCPA has an Investigation Wing headed by a Director General.
Powers and Responsibilities:
- Objective: The primary objective is to promote, protect, and enforce the rights of consumers as a class.
- Empowered:
- Conduct Investigations: Into violations of consumer rights and institute complaints/prosecutions.
- Order Recall: Of unsafe goods and services from the market.
- Discontinue Unfair Practices: Such as misleading advertisements and unfair trade practices.
- Impose Penalties: On manufacturers, endorsers, publishers, or entities involved in misleading advertisements.
District Collectors’ Powers:
- District Collectors also have the power to investigate complaints of:
- Violations of consumer rights.
- Unfair trade practices.
- False or misleading advertisements.
Objective:
- The main objective of the CCPA is to promote, protect, and enforce the rights of consumers as a class.
Enforcement Actions:
- The CCPA is empowered to:
- Conduct investigations into violations of consumer rights.
- Institute complaints or prosecutions against offenders.
- Order the recall of unsafe goods and services.
- Discontinue unfair trade practices and misleading advertisements.
- Impose penalties on manufacturers, endorsers, publishers, or entities involved in misleading advertisements.
Consumer Protection Focus:
- The primary focus of the CCPA is on ensuring consumer protection and upholding their rights.
- It aims to create a fair and transparent marketplace for consumers.
Regulatory Body:
- The CCPA acts as a regulatory body overseeing consumer protection laws and regulations.
- It plays a vital role in enforcing consumer rights and ensuring compliance by businesses.
- By enforcing consumer rights, ensuring market integrity, and fostering consumer awareness, the CCPA contributes significantly to a fair and transparent consumer environment in India.