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Source– This post “Central Consumer Protection Authority ” is based on the article “Consumer body issues notices to IAS coaching centres for ‘misleading’ ads” published in “The Indian Express” on 24th October 2023.
Why in the News?
The Central Consumer Protection Authority (CCPA) has sent notices to 20 IAS coaching institutes across the country for issuing “misleading” advertisements.
What is Central Consumer Protection Authority?
| What is it? | Central Consumer Protection Authority is a regulatory authority set up under Section 10(1) of the Consumer Protection Act, 2019 |
| Mandate | Keep a check on matters affecting rights of consumers. Protect the consumer’s interest, from individuals or entities who follow improper trade practices or display inappropriate or wrong advertisements. |
| Composition | Central Consumer Protection Authority shall consist of following members appointed by Central Government 1. Chief Commissioner 2. Two Commissioners- One commissioner will represent goods, the other will represent services. |
| Important Powers | 1. Inquire on the violation of customer rights either by suo-moto, on complaint or when referred by central govt. 2. The commission can direct to discontinue advertisements which are wrong or misleading to consumers, and impose penalties upto Rs 10 lakhs payable in cash. |
What is Consumer Protection Act, 2019?
| What is it? | Consumer Protection Act, 2019 replaces the Consumer Protection Act, 1986. |
| Objective | It focuses on giving more powers to the customer by strengthening trade transparency. |
| Consumer Rights under this act | 1. Protection against marketing of goods and services which are hazardous to life and property. 2. Right to be informed on the quality, quantity, potency, purity, standard and price of goods and services. 3. Assurance of access to a variety of goods or services at competitive prices. 4. Redressal against unfair and restrictive trade practices. 5. Right to receive adequate compensation or consideration from respective consumer forums. 6. Right to receive consumer education |
| Important provisions of Consumer Protection Act, 2019 | 1. The Act establishes consumer protection councils to protect the rights of the consumers at both the national and state levels. 2. The Consumer Protection Act has made it mandatory for every e-commerce entity to display the country of origin. 3. Consumer Disputes Redressal Commission: CDRCs will be set up at the district, state, and national levels. 4. Product Liability: A manufacturer or product seller will be held responsible to compensate for injury or damage caused by defective product or deficiency in services 5. Punishment for Manufacture or Sale of defected or adulterated Goods– In case of the first conviction, a competent court may suspend any licence issued to the person for a period of up to two years and in case of second or subsequent conviction, may cancel the licence permanently. |
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