Central Consumer Protection Authority

About Central Consumer Protection Authority (CCPA):

• The Consumer Protection Act, 2019 was notified on August 9, 2019 and came into force on July 20, 2020. 
• It replaced the Consumer Protection Act, 1986.
• Under the provisions of the Act, the CCPA was established in July 2020. 
• CCPA aims to protect the rights of consumers by cracking down on unfair trade practices and false and misleading advertisements that are detrimental to the interests of the public and consumers.
• Nodal Ministry: Ministry of Consumer Affairs, Food & Public Distribution.
• CCPA is empowered to:
  • Protect, promote, and enforce the rights of consumers as a class, and prevent violation of consumers rights under this Act.
  • Prevent unfair trade practices and ensure that no person engages himself in unfair trade practices.
  • Ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder.
  • Ensure that no person takes part in the publication of any advertisement which is false or misleading.
• Composition:
  • It will have a Chief Commissioner as head, and only two other commissioners as members — one of whom will deal with matters relating to goods while the other will look into cases relating to services.
• Powers:
  • The CCPA can make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action, including enforcing recall, refund and return of products. 
  • The CCPA has an investigation wing, headed by a director-general, which may conduct inquiry or investigation into consumer law violations. 
  • The CCPA has been granted wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses, and file class action suits, if a consumer complaint affects more than one individual.
  • The CCPA has powers to pass orders of discontinuation of practices that are unfair and prejudicial to consumers’ interests and impose penalties in cases of false or misleading advertisements.

Q1: What Is Consumerism?

Consumerism is the idea that increasing the consumption of goods and services purchased in the market is always a desirable goal, and that a person's well-being and happiness depend fundamentally on obtaining consumer goods and material possessions.

Source: Ola Electric receives show-cause notice from Central Consumer Protection Authority