CCPA (Syllabus: GS Paper 2 – Governance)

News-CRUX-10     25th October 2023        
output themes

Context: Consumer protection regulator CCPA said it is recently probing 20 IAS coaching centres for alleged misleading advertisements and unfair trade practices of using toppers and successful candidates' names and pictures to influence prospective aspirants.

Central Consumer Protection Authority (CCPA)

  • About: CCPA is a regulatory body established in 2020 based on the provisions of the Consumer Protection Act, 2019.
  • Establishment: In 2020
  • Control by; Ministry of Consumer Affairs.
  • Composition: Chief Commissioner as head, and only two other commissioners as members.
  • Objective: To promote, protect and enforce the rights of consumers as a class.

Functions of CCPA

  • When examining consumer rights violations, it investigates and takes appropriate measures, including issuing recall orders for unsafe products or service withdrawals with refunds.
  • It can instruct traders, manufacturers, endorsers, advertisers, or publishers to cease false or misleading advertising.
  • Penalties of up to Rs 10 lakh and a two-year imprisonment can be imposed on manufacturers or endorsers for false or misleading advertisements, with higher fines and longer imprisonment for subsequent offenses.
  • It issues safety alerts to warn consumers about unsafe goods and services.