Central Consumer Protection Authority (CCPA)
The Central Consumer Protection Authority (CCPA) is a regulatory body established
under the Consumer Protection Act, 2019, to protect, promote, and enforce consumer
rights in India. It acts as a watchdog against unfair trade practices, misleading
advertisements, and violations of consumer rights.
1. Establishment
Established by: Central Government under Section 10 of the Consumer Protection
Act, 2019.
Effective from: July 24, 2020.
Headquarters: New Delhi.
Jurisdiction: All of India.
2. Composition
The CCPA is led by a Chief Commissioner, with two additional Commissioners
overseeing:
1. Goods (for product-related issues).
2. Services (for service-related issues).
Other officers and experts assist the authority in enforcement.
3. Powers & Functions
A. Consumer Rights Protection
Protects consumers from unfair trade practices, misleading ads, and defective
goods/services.
Ensures that businesses follow ethical and legal practices.
B. Regulating Misleading Advertisements
Takes action against false/misleading advertisements that misrepresent products.
Can impose penalties on advertisers, manufacturers, and endorsers
(celebrities/influencers).
Can ban advertisements that deceive consumers.
C. Product Recall & Refund Orders
Has the power to order product recalls if goods are hazardous or defective.
Can direct companies to refund money to consumers affected by unsafe products.
D. Inquiry & Investigation
Can launch suo-motu investigations or act on consumer complaints.
Can search premises, seize documents, and issue summons.
Works with the Director General (Investigation) to conduct probes.
E. Imposing Penalties
Can fine manufacturers, advertisers, and endorsers for misleading ads.
Can impose up to ₹50 lakh penalty for repeated offenses.
Can ban endorsers (celebrities/influencers) from future ads for up to 3 years.
F. Consumer Awareness & Education
Promotes consumer rights education through campaigns like "Jago Grahak Jago".
Organizes workshops, training programs, and advertisements to educate
consumers.
4. Key Cases & Actions Taken by CCPA
Penalty on Amazon, Flipkart, Snapdeal for selling substandard pressure cookers.
Action against Patanjali for misleading health claims in advertisements.
Warnings to Celebrities & Influencers for endorsing misleading products.
5. Significance of CCPA
Strengthens consumer rights enforcement at the national level.
Ensures fair trade practices and holds businesses accountable.
Helps consumers get justice faster, reducing court cases.
Increases corporate responsibility in advertising and product quality.