Central Consumer Protection Authority
Why in News?
The Central Consumer Protection Authority (CCPA) is currently in the news due to its intensified regulatory crackdown on food brands using misleading "100%" marketing claims on their products.
Background & Establishment
- Statutory Body: It is an apex regulatory body established under Section 10(1) of the Consumer Protection Act, 2019.
- Launch Date: It was officially constituted in July 2020 to replace the outdated Consumer Protection Act of 1986.
- Nodal Ministry: It functions under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India.
Composition & Structure
- Leadership: Headed by a Chief Commissioner along with two other Commissioners (one handling goods and the other handling services).
- Investigation Wing: Features a dedicated enforcement arm headed by a Director-General to execute inquiries, searches, and seizures.
- Decentralized Support: District Collectors are also empowered to investigate local consumer rights violations and report back to the authority.
Functions & Powers
- Misleading Advertisements: Empowered to mandate the modification or complete withdrawal of false advertisements.
- Penalties: Can impose fines up to ₹10 lakh on manufacturers and endorsers for a first offense, which can scale up to ₹50 lakh and result in imprisonment for subsequent violations.
- Product Recalls & Refunds: Authorized to pass strict orders to recall dangerous, hazardous, or unsafe goods from the market and mandate full consumer refunds.
- Class Action Advocacy: Unlike traditional consumer courts that react to individual cases, the CCPA can initiate suo motu (self-directed) actions and class-action lawsuits to protect consumers as a collective class.
- Guideline Enforcement: Regularly issues binding frameworks to curb emerging deceptive practices like dark patterns on travel/shopping apps, surrogate advertising, and hidden service charges.
