Answer By law4u team
The Central Consumer Protection Authority (CCPA) was established under the Consumer Protection Act, 2019, as a specialized regulatory body empowered to protect and promote consumer rights in India. The CCPA serves as a central enforcement agency that proactively addresses unfair trade practices, misleading advertisements, and violations relating to product safety and consumer rights. It functions to strengthen consumer protection through investigation, enforcement, and awareness, ensuring a fair marketplace for consumers.
Expanded Role And Powers Of CCPA
Regulation And Monitoring
CCPA monitors the marketplace for unfair trade practices, including false or misleading advertising, adulteration of products, and unfair contractual terms.
It keeps a watch on business practices to ensure compliance with consumer protection laws and standards.
It also issues alerts or warnings to consumers about unsafe or defective products and fraudulent schemes.
Investigation Authority
The CCPA can initiate suo-motu investigations or act upon consumer complaints.
It possesses powers to summon individuals, inspect premises, and collect evidence related to violations of consumer laws.
Investigations can extend to manufacturers, importers, distributors, and e-commerce platforms.
Enforcement and Punitive Actions
CCPA has the authority to order product recalls and withdraw harmful or unsafe goods from the market.
It can mandate corrective advertisements to counteract misleading or false promotional campaigns.
The authority can impose monetary penalties up to ₹10 lakh and imprisonment up to 2 years on offenders for violations such as false advertising or unfair trade practices.
Repeat offenders may face higher penalties and stricter sanctions.
Coordination With Other Agencies
CCPA collaborates with other regulatory bodies like the Food Safety and Standards Authority of India (FSSAI), Bureau of Indian Standards (BIS), and the Ministry of Consumer Affairs to ensure comprehensive consumer protection.
It also works with state consumer commissions, police, and cybercrime units to address violations effectively.
Consumer Awareness And Education
The authority conducts consumer awareness campaigns to educate the public about their rights and safe consumer practices.
It provides guidelines and updates on consumer protection laws through digital platforms and publications.
Handling Consumer Complaints
Consumers can file complaints directly with the CCPA through its official online portal or via written applications.
The CCPA investigates these complaints and takes necessary action, complementing consumer forums and courts.
Digital And E-Commerce Focus
The CCPA pays special attention to the fast-growing digital economy, addressing unfair practices on e-commerce platforms and online marketplaces.
It monitors compliance with regulations related to online sales, advertisements, and data privacy affecting consumers.
Steps For Consumers And Businesses
Consumers should report unfair trade practices, defective products, or misleading advertisements via the CCPA online complaint portal.
Businesses should ensure full compliance with consumer protection norms to avoid investigations and penalties.
Respond promptly and transparently to any inquiries or notices issued by CCPA.
Utilize CCPA’s consumer awareness materials to stay informed of rights and responsibilities.
Example
A cosmetics company advertises a skin cream claiming it cures all skin diseases, which is factually incorrect and misleading to consumers.
Steps CCPA takes:
Initiates a suo-motu investigation based on the advertisement.
Orders the company to immediately stop the misleading advertisement and remove all promotional content.
Imposes a penalty of ₹10 lakh on the company for violating consumer protection laws.
Directs the company to run corrective advertisements clarifying the product’s actual claims.
Coordinates with state authorities to monitor the company’s compliance and product safety.
Raises public awareness about verifying claims before purchase.
