Central Consumer Protection Authority

Why in the News?

• The action has been initiated based on a representation made by the Confederation of All India Traders (CAIT) alleging that Amazon is engaging in deceptive trade practices involving the sale of sweets under the guise of 'Shri Ram Mandir Ayodhya Prasad'.
• It may be mentioned that under the Consumer Protection (e-commerce) Rules, 2020 no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise Further, 'Misleading advertisement' as defined under the Consumer Protection Act, 2019.

About Central Consumer Protection Authority

• As provided in the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) has been established w.e.f. 24th July, 2020.
• Objective: To promote, protect and enforce the rights of consumers as a class.
• 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.
• It will be empowered:
  • To conduct investigations into violation of consumer rights and institute complaints / prosecution,
  • Order recall of unsafe goods and services,
  • Order discontinuation of unfair trade practices and misleading advertisements,
  • Impose penalties on manufacturers/endorsers/publishers of misleading advertisements.
• Nodal Ministry: Ministry of Consumer Affairs, Food & Public Distribution.

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: Central Consumer Protection Authority issues notice to Amazon