Central Consumer Protection Authority

Recently, the government announced to establish a Central Consumer Protection Authority (CCPA)by the first week of April, 2020.

The authority is being constituted under Section 10(1) of The Consumer Protection Act,2019. The Act replaced The Consumer Protection Act, 1986, and seeks to widen its scope in addressing consumer concerns.
The CCPAaims to protect the rights of the consumer by cracking down on unfair trade practices, and false and misleading advertisements that are detrimental to the interests of the public and consumers.
The new Act recognizes offences such as providing false information regarding the quality or quantity of a good or service, and misleading advertisements.
It also specifies action to be taken if goods and services are found “dangerous, hazardous or unsafe”.

The proposed authority will be a lean body with 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 headquartered in the National Capital Region of Delhi but the central government may set up regional offices in other parts of the country.
The CCPA will have an Investigation Wing,headed by a Director General. District Collectors.

The CCPA will have following powers to inquire or investigate into matters relating to violations of consumer rights or unfair trade practices suomotu, or on a complaint received, or on a direction from the central government.

Power to Recall the Goods

Under Section 20 of the Consumer Protection Act, the proposed authority will have powers to recall goods or withdrawal of services that are “dangerous, hazardous or unsafe; pass an order for refund the prices of goods or services so recalled to purchasers of such goods or services; and discontinuation of practices which are unfair and prejudicial to consumer’s interest”.

Power to Issue Directions

Section 21 of the new Act defines the powers given to the CCPA to crack down on false or misleading advertisements.
If the CCPA is satisfied after investigation that any advertisement is false or misleading and is harmful to the interest of any consumer, the CCPA may issue directions to the trader, manufacturer, endorser, advertiser, or publisher to discontinue such an advertisement, or modify it in a manner specified by the authority, within a given time.
Further, it can file complaints of violation of consumer rights or unfair trade practices before the Consumer Disputes Redressal Commission at district, state and national level.
It will issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services.

Power to Impose Penalties

It may also impose a penalty up to Rs 10 lakh, with imprisonment up to two years, on the manufacturer or endorser of false and misleading advertisements.
The penalty may go up to Rs 50 lakh, with imprisonment up to five years, for every subsequent offence committed by the same manufacturer or endorser.
CCPA may ban the endorser of a false or misleading advertisement from making endorsement of any products or services in the future, for a period that may extend to one year. The ban may extend up to three years in every subsequent violation of the Act.
For manufacture, selling, storage, distribution, or import of adulterated products, the penalties are:
If injury is not caused to a consumer, fine up to Rs 1 lakh with imprisonment up to six months
If injury is caused, fine up to Rs 3 lakh with imprisonment up to one year
If grievous hurt is caused, fine up to Rs 5 lakh with imprisonment up to 7 years
In case of death, fine of Rs 10 lakh or more with a minimum imprisonment of 7 years, extendable to imprisonment for life.

Power to Search and Seizure Power

While conducting an investigation after preliminary inquiry, CCPA’s Investigation Wing will have the powers to enter any premise and search for any document or article, and to seize these.
For search and seizure, the CCPA will have similar powers given under the provisions of the Code of Criminal Procedure, 1973.

Protecting the interest of consumers is paramount for the government and the establishment of a central authority and initiating action as a class comes as an additional mode of relief which can be exercised along with individual consumers filing complaints to address their grievances.