CENTRAL CONSUMER PROTECTION AUTHORITY (Syllabus: GS Paper 3 – Economy)

Context: Central Consumer Protection Authority (CCPA) imposed Rs 3 lakh fine on IAS coaching institute for advertising "misleading claims guaranteeing success" in prelims and mains in UPSC Civil Service exam 2022.

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 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. 

o The CCPA will have the powers to inquire or investigate 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. Under Section 20 of the Consumer Protection Act, the proposed authority will have powers:

o To recall goods or withdrawal of services that are dangerous, hazardous or unsafe.

o Pass an order for refund the prices of goods or services so recalled to purchasers of such goods or services. 

o Discontinuation of practices which are unfair and prejudicial to consumer’s interest.