Legal Wing: Central Consumer Protection Authority

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Legal wing

Central Consumer Protection Authority

The government is all set to establish a Central Consumer Protection


Authority.
What? The authority is being constituted under Section 10(1) of The Consumer
Protection Act, 2019.
Aim: 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
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.

Powers and Functions: Inquire or investigate into matters relating to


violations of consumer rights or unfair trade practices suo motu, or on a complaint
received, or on a direction from the central government.

Recall goods or withdrawal of services that are “dangerous, hazardous


or unsafe.
Pass an order to refund the prices of goods or services so recalled to
purchasers of such goods or services; discontinuation of practices which are unfair
and prejudicial to consumer’s interest”.
Impose a penalty of 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.

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.

Complaints of violation of consumer rights or unfair trade practices can be


filed before the District Consumer Disputes Redressal Commission, State Consumer
Disputes Redressal Commission, and the National Consumer Disputes Redressal
Commission.

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