Central Consumer Protection Authority (Syllabus: GS Paper 2 – Governance)
Context: The Central Consumer Protection Authority (CCPA) recently announced an investigation into 20 IAS coaching institutes, accusing them of making misleading claims in their advertisements and engaging in unfair trade practices; as a result, four of these institutions have recently been fined ₹1 lakh each.
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.
- Powers of the Authority: Section 21 of the Act defines the powers given to the CCPA to crack down on false or misleading advertisements.
o CCPA may issue directions, may also impose a penalty up to Rs 10 lakh, with imprisonment up to two years, which may go up to Rs 50 lakh, with imprisonment up to five years.
o May 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.
o The ban may extend up to three years in every subsequent violation of the Act.
