Central Consumer Protection Authority (Syllabus: GS Paper 2 – Governance)

News-CRUX-10     16th November 2023        
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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.