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General Studies 3 >> Economy

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CENTRAL CONSUMER PROTECTION AUTHORITY(CCPA)

CENTRAL CONSUMER PROTECTION AUTHORITY(CCPA)

 
 
1. Context
HIGHLIGHTING the lack of proper functioning of State Consumer Protection Council (SCPCs) in the northeastern states, a Parliamentary Standing Committee has asked the Centre to see that the mandates of the Consumer Protection Act, 2019 are fulfilled in each state in the region so that the consumers feel assured of their rights and have a sense of belonging with the rest of the country
 
2. The Consumer Protection Act, 2019-Key Highlights
The Consumer Protection Act of 2019 introduces several key highlights aimed at safeguarding consumer rights and interests:
  • This Act provides for the establishment of the CCPA to promote, protect, and enforce consumer rights. The CCPA has the authority to investigate, recall unsafe goods, order discontinuation of unfair trade practices, and impose penalties for misleading advertisements affecting consumers
  • The Act enumerates the rights of consumers, including the right to be informed, right to choose, right to be heard, right to seek redressal, and the right to consumer education
  •  It prohibits unfair trade practices such as false advertising, misleading information, deceptive packaging, and selling goods/services that pose a danger to consumers' lives and safety
  • The Act introduces the concept of product liability, holding manufacturers, sellers, and service providers accountable for any harm caused by defective products or deficient services
  • The Act establishes Consumer Disputes Redressal Commissions at the district, state, and national levels to expedite the resolution of consumer disputes. These commissions provide simple, speedy, and cost-effective dispute resolution mechanisms
  • It includes provisions specifically addressing consumer rights and liabilities related to e-commerce transactions and direct selling, ensuring adequate protection for consumers engaged in online purchases and transactions
  • The Act emphasizes the importance of consumer awareness and education through outreach programs, campaigns, and educational initiatives to empower consumers with knowledge about their rights and responsibilities
  • The penalties for misleading advertisements, unfair trade practices, and violations of consumer rights have been increased, along with provisions for compensating consumers for any loss or injury suffered due to a defective product or deficient service
3.What is State Consumer Protection Council?
The State Consumer Protection Council (SCPC) is a pivotal body established under the Consumer Protection Act, 1986, and continued under the Consumer Protection Act, 2019, in India. This council operates at the state level and works towards safeguarding consumer rights and promoting their interests within the respective state.

Here's a breakdown of the SCPC's key functions:

Composition:

  • Each SCPC is headed by the Minister-in-charge of Consumer Affairs in the state government.
  • It includes other official and non-official members representing various interests, such as:
    • Members of the state Legislative Assembly
    • Representatives from consumer organizations
    • Representatives from farmers, manufacturers, traders, and industrialists
    • Experts in consumer affairs and law

Responsibilities:

  • The SCPC organizes awareness campaigns to educate consumers about their rights and responsibilities. It also disseminates information about consumer laws and redressal mechanisms.
  • The SCPC receives and investigates consumer complaints against unfair trade practices, defective goods and services, and misleading advertisements. It can recommend action against businesses violating consumer rights.
  • The SCPC advises the state government on matters related to consumer protection. This includes proposing new laws, policies, and initiatives to strengthen consumer rights within the state.
  • The SCPC monitors the market for unfair trade practices and emerging consumer issues. It may conduct research and studies to identify and address emerging consumer concerns.
  • The SCPC coordinates with the Central Consumer Protection Authority (CCPA) and other consumer protection agencies to ensure effective enforcement of consumer rights across the country
4. What is the Central Consumer Protection Authority?
 
The Central Consumer Protection Authority (CCPA) is a significant regulatory body established under the Consumer Protection Act, 2019, in India. This authority is designed to protect, promote, and enforce consumer rights more effectively.

The Central Consumer Protection Authority (CCPA) is a quasi-judicial regulatory body established under the Consumer Protection Act, 2019, in India. It plays a pivotal role in promoting, protecting, and enforcing consumer rights at the national level.

Functions:

The CCPA is empowered with a wide range of functions to safeguard consumer interests, including:

  • It can investigate unfair trade practices, misleading advertisements, and violations of consumer rights. Additionally, it has the authority to prosecute entities found guilty of such offenses.
  • The CCPA can order the recall of unsafe or defective products from the market. It can also direct businesses to issue refunds or replacements for defective products or services.
  • The CCPA can impose significant penalties on businesses found indulging in unfair trade practices, misleading advertisements, or violating consumer rights.
  • It can file class-action suits on behalf of groups of consumers affected by the same unfair practice.
  • The CCPA can issue guidelines and standards for product safety and service quality.
  • It can undertake initiatives to raise awareness about consumer rights and educate consumers about redressal mechanisms.
  • The CCPA collaborates with State Consumer Protection Councils (SCPCs) to ensure effective consumer protection across the country.

Structure:

The CCPA is headed by a Chief Commissioner and three other Commissioners, all appointed by the Central Government. It also has a team of supporting staff that assists in carrying out its various functions.

5.Way forward
The Committee, therefore, desire that the Central Government should see that the mandates of Section 6(3) and 8 of the Consumer Protection Act, 2019 are fulfilled in each of the states of the North East so that consumers in the region feel assured of their rights and have a sense of belonging with the rest of the country,” the committee said in its report on “Initiatives in the North East in the Field of Consumer Rights Protection”
 
 
For Prelims: Current events of national and international importance
For Mains: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation
 
Previous Year Questions
1. Which of the following statements about the 'Consumer Protection Act 2019' is not true? (UGC NET 2020)
A.It has widened the definition of consumer
B.It provides for E-filing of complaints
C.It establishes Central Consumer Protection Authority
D.It ignores mediation as an alternate disputes resolution mechanism
Answer (D)
Source: Indanexpress
 

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