The Consumer Protection Act, 2019 (CPA) of India establishes the Central Consumer Protection Authority (CCPA), an administrative body with the power to investigate and take action against violations of consumer rights, unfair trade practices, and false or misleading advertisements.
Establishment and Composition (Section 10)
- The Central Government established the CCPA, headquartered in the National Capital Region of Delhi, with regional offices in India.
- The CCPA is composed of a Chief Commissioner and several Commissioners appointed by the Central Government. Their qualifications, recruitment, and terms of service are determined by government-issued rules.
Powers and Functions (Section 18)
The CCPA’s mandate is to safeguard consumers as a class. It can inquire into complaints, initiate investigations, and file complaints before Consumer Disputes Redressal Commissions. The CCPA can also intervene in ongoing proceedings related to consumer rights violations.
The CCPA is responsible for:
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Protecting, promoting, and enforcing consumer rights: This includes taking suo moto actions or acting on complaints received from consumers or the government.
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Preventing unfair trade practices: The CCPA ensures businesses adhere to fair practices and do not engage in activities detrimental to consumers.
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Ensuring truthful advertising: The authority monitors and takes action against false or misleading advertisements that violate consumer rights.
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Investigating violations: The CCPA conducts investigations into consumer rights violations and unfair trade practices, either on its own or based on complaints or government directives.
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Filing complaints and intervening in proceedings: The CCPA can file complaints before Consumer Disputes Redressal Commissions and intervene in ongoing proceedings to protect consumer interests.
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Reviewing consumer protection measures: The authority assesses existing safeguards and recommends improvements for better consumer protection.
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Research and awareness: The CCPA conducts and promotes research on consumer rights and raises awareness among consumers.
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Issuing safety notices: It alerts consumers about dangerous or unsafe products and services.
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Advising the government: The CCPA guides government bodies on consumer welfare measures and policies.
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Guidelines: It issues guidelines to prevent unfair trade practices and safeguard consumer interests.
Additional Powers (Sections 19, 20, 21)
In addition to its investigative and enforcement powers, the CCPA has an important role in formulating consumer protection policies. It can review existing safeguards, recommend measures for implementation, and advise government bodies on consumer welfare initiatives. The CCPA also promotes research and awareness of consumer rights and issues safety notices to warn consumers about dangerous products or services.
- Preliminary inquiry: The CCPA can conduct preliminary inquiries to determine if a prima facie case of consumer rights violation or unfair trade practice exists.
- Referrals to regulators: If the matter falls under the jurisdiction of another regulator, the CCPA can refer it to the appropriate authority.
- Recall of goods and services: The CCPA can order the recall of dangerous or unsafe products and services, reimbursement of prices to consumers, and discontinuation of unfair practices.
- Action against false advertising: The authority can issue directions to stop or modify misleading advertisements, impose penalties on manufacturers and endorsers, and even prohibit endorsers from making further endorsements.
Appeals and Regulations (Sections 24, 104)
- Appeals: Decisions made by the CCPA can be appealed to the National Consumer Disputes Redressal Commission.
- Regulations: The CCPA can formulate regulations with the Central Government’s approval to effectively implement the provisions of the CPA.
As mentioned above, the CCPA’s decisions are subject to appeal to the National Consumer Disputes Redressal Commission, ensuring a system of checks and balances.
Resource: The Consumer Protection Act, 2019 (CPA).pdf (436.0 KB)