Central Consumer Protection Authority established

Subject: Government bodies

Context:

The government has established the Central Consumer Protection Authority to promote, protect and enforce the rights of consumers.

Concept:

• The authority is being constituted under Section 10(1) of The Consumer Protection Act, 2019.
• 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.
• 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.

Powers and Functions:

• Inquire or investigate into matters relating to violations of consumer rights or unfair trade practices suomotu, 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.