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Economy and Finance

Economy and Finance

Central Consumer Protection Authority (CCPA)

21 Jan 2024 Zinkpot 436
  1. The Central Consumer Protection Authority (CCPA) is a regulatory body established by the Government of India under the Consumer Protection Act, 2019. The primary purpose of the CCPA is to promote, protect, and enforce the rights of consumers in India. 
  2. The Consumer Protection Act of 2019, which came into effect on July 20, 2020, replaced the earlier Consumer Protection Act of 1986 and introduced several new provisions for the safeguarding of consumer interests.
  3. Key features and responsibilities of the Central Consumer Protection Authority include:
    • Enforcement of Consumer Rights: The CCPA is tasked with ensuring that consumer rights are protected and respected by businesses and service providers. This includes the right to be informed, the right to choose, the right to be heard, and the right to seek redressal.
    • Investigation and Action: The authority has the power to investigate violations of consumer rights and take appropriate actions against unfair trade practices, misleading advertisements, and other offenses affecting consumers.
    • Product Recalls: The CCPA has the authority to order product recalls if it determines that a product is unsafe or poses a risk to consumers.
    • Initiation of Class Action Suits: The CCPA can initiate class action suits on behalf of consumers who have suffered similar injuries or have common grievances.
    • Mediation and Settlement: The authority may facilitate the resolution of disputes between consumers and businesses through mediation and settlement mechanisms.
    • Imposition of Penalties: The CCPA can impose penalties on businesses found guilty of unfair trade practices, false advertising, or other violations of consumer rights.
    • Promotion of Consumer Awareness: The authority works towards promoting consumer awareness and education to empower individuals to make informed choices.
    • Coordination with Consumer Commissions: The CCPA coordinates with State Consumer Protection Authorities and the National Consumer Disputes Redressal Commission (NCDRC) to ensure effective enforcement of consumer protection laws.
  4. The structure of the CCPA consists of the following members, appointed by the central government:
    • Chief Commissioner: The head of the CCPA, responsible for overseeing the overall functioning of the authority.
    • Two Commissioners: Two additional members appointed by the central government to assist the Chief Commissioner in the discharge of their duties.
  5. The establishment of the Central Consumer Protection Authority is part of the broader efforts by the Indian government to strengthen consumer protection mechanisms and enhance the overall welfare of consumers in the country.
     

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