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28th February – Central Consumer Protection Authority

Union Ministry of Consumer Affairs has announced that a Central Consumer Protection Authority (CCPA) will be established by the first week of April.

Consumer Protection Act, 2019 –

  • The Act replaced The Consumer Protection Act, 1986, and seeks to widen its scope in addressing consumer concerns.
  • The new Act recognises offences such as providing false information regarding the quality or quantity of a good or service, and misleading advertisements.
  • It also specifies action to be taken if goods and services are found “dangerous, hazardous or unsafe”.

What is Central Consumer Protection Authority?

  • The authority is being constituted under Section 10(1) of The Consumer Protection Act, 2019.
  • The CCPA, introduced in the new Act, 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.

Structure of authority –

  • The proposed authority will be a lean body with 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.

Powers of CCPA –

  • Under Section 20 of The Consumer Protection Act, the proposed authority will have powers to recall goods or withdrawal of services that are “dangerous, hazardous or unsafe; pass an order for refund of 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”.
  • Section 21 of the new Act defines the powers given to the CCPA to crack down on false or misleading advertisements. The CCPA may issue directions to the trader, manufacturer, endorser, advertiser, or publisher to discontinue such an advertisement, or modify it in a manner specified by the authority, within a given time. The authority may also 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.
  • For search and seizure, the CCPA will have similar powers given under the provisions of The Code of Criminal Procedure, 1973.
  • 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.

SourceThe Indian Express

QUESTIONDiscuss the scope and mandate of Central Consumer Protection Authority established under the new Consumer Protection Act, 2019.

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