Central Consumer Protection Authority

The Central Consumer Protection Authority (CCPA) is a statutory authority that protects consumers against practices affecting consumers as a class. Established under the Consumer Protection Act, 2019, it regulates violations of consumer rights, unfair trade practices, and false or misleading advertisements that prejudice consumers or the public.

Statutory basis and composition

Section 10 of the Consumer Protection Act, 2019 provides for the establishment of the CCPA by the Central Government.

• The Authority consists of a Chief Commissioner and such number of other Commissioners as may be prescribed, all appointed by the Central Government.
• The Central Government makes rules governing their qualifications, recruitment, appointment procedure, tenure and service conditions.
• An Investigation Wing, headed by a Director-General, conducts inquiries or investigations as directed by the Authority.

Mandate and initiation of action

The CCPA's central mandate is to protect, promote and enforce consumer rights as a class. Its jurisdiction extends to goods and services, including practices in online commerce.

• It seeks to prevent unfair trade practices and ensure that false or misleading advertisements do not contravene the Act or rules and regulations made under it.
• Under Section 18, it may inquire into violations on its own motion, on a complaint, or on directions from the Central Government.
• Where a preliminary inquiry reveals a prima facie case, it may direct investigation by the Director-General or the District Collector.
• It may file complaints before Consumer Disputes Redressal Commissions and intervene in proceedings concerning consumer-rights violations or unfair trade practices.

Corrective and enforcement powers

The CCPA combines investigation with corrective directions and penalties. Its role differs from that of Consumer Disputes Redressal Commissions, which adjudicate consumer disputes and grant remedies.

• Under Section 20, after investigation and an opportunity of hearing, it may order recall of dangerous, hazardous or unsafe goods, withdrawal of such services, reimbursement of their prices, and discontinuance of unfair practices.
• Under Section 21, it may direct that a false or misleading advertisement be discontinued or modified.
• It may impose penalties on manufacturers or endorsers for false or misleading advertisements, subject to statutory safeguards.
• It may prohibit an endorser from endorsing any product or service for a specified period, subject to the limits prescribed by the Act.