CONSUMER RIGHTS
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National Consumer Rights Day in India marks the coming into force of the Consumer Protection Act, 1986, which received the President’s assent on 24 December 1986. In recognition of this milestone, 24 December is observed every year as National Consumer Day.
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This historic law was enacted to protect the rights of consumers, establish an effective system for resolving complaints related to goods and services, and guarantee fair practices and access to justice in the marketplace.
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The Consumer Protection Act, 2019 superseded the Consumer Protection Act, 1986. It identifies offences such as the supply of incorrect or deceptive information about the quality or quantity of goods or services and the publication of misleading advertisements. The Act also lays down measures to be taken when goods or services are found to be unsafe, hazardous, or harmful.
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Section 2(28) of the Consumer Protection Act, 2019 explains a “misleading advertisement” as one relating to any product or service that:
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(i) presents an untrue or incorrect description of the product or service; or
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(ii) offers a false assurance or is likely to deceive consumers regarding the nature, composition, quantity, or quality of the product or service; or
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(iii) communicates an implied claim which, if expressly stated by the manufacturer, seller, or service provider, would amount to an unfair trade practice; or
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(iv) intentionally withholds material information.
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Section 21 of the Act outlines the enforcement powers of the Central Consumer Protection Authority (CCPA) against deceptive advertising. If, after inquiry, the CCPA concludes that an advertisement is false or misleading and prejudicial to consumer interests or violates consumer rights, it may direct the trader, manufacturer, advertiser, publisher, or endorser to withdraw or suitably alter the advertisement within a specified timeframe.
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The CCPA is empowered to levy a fine of up to ₹10 lakh and impose imprisonment up to two years on manufacturers or endorsers responsible for misleading advertisements. For repeated violations, the penalty may increase to ₹50 lakh, along with imprisonment up to five years. Additionally, the authority can prohibit endorsers from promoting any goods or services for up to one year, which may extend to three years for subsequent breaches of the Act.
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In November last year, the Union government issued fresh norms to curb deceptive advertising by coaching institutes, barring exaggerated or false assurances such as “100% selection” or “guaranteed employment”. These rules were framed by the Central Consumer Protection Authority (CCPA) following a surge in complaints received through the National Consumer Helpline.
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As per the new framework, coaching institutions are barred from making misleading statements about the nature and length of courses, qualifications of faculty, fee details and refund terms, success rates and rankings in examinations, as well as promises of assured jobs or salary hikes.
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The guidelines clarify that the term “coaching” covers educational assistance, academic guidance, structured study programmes and tuition, while excluding counselling services, sports training, and creative or artistic pursuits.
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Coaching centres are not permitted to use the names, images, or endorsements of successful candidates unless explicit written permission is obtained after their selection. They are also required to clearly display disclaimers and fully disclose key course-related information in their advertisements.
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The Central Consumer Protection Authority (CCPA) functions as India’s highest consumer regulatory body. It was constituted under Section 10(1) of the Consumer Protection Act, 2019 and started functioning on 24 July 2020.
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The Authority is responsible for overseeing violations of consumer rights, addressing unfair trade practices, and taking action against false or deceptive advertisements that harm the collective interests of consumers and the wider public.
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Powers and Functions of the CCPA include:
(i) Safeguarding, advancing, and enforcing consumer rights as a collective and preventing their infringement under the Act;
(ii) Curbing unfair trade practices and ensuring that individuals or entities do not indulge in such practices;
(iii) Preventing the circulation of misleading or false advertisements for goods or services that violate the Act or related rules and regulations;
(iv) Ensuring accountability of all parties involved in publishing deceptive advertisements;
(v) Initiating complaints before Consumer Commissions and examining issues connected to the protection of consumer rights;
(vi) Advising on the adoption of international agreements and standards relating to consumer protection;
(vii) Encouraging consumer awareness and supporting research in the area of consumer rights;
(viii) Providing guidance to Central and State governments and their departments on policies and measures aimed at consumer welfare.
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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
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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)
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