Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 3 lakh on an advertisement by an EdTech platform

Central Consumer Protection Authority has imposed a penalty of Rs 3 lakh on an advertisement by an EdTech platform, which was found to be “false and misleading” under Section 21 of the Consumer Protection Act.

Central Consumer Protection Authority

• CCPA is the regulatory body established under Section 10 of the Consumer ProtectionAct (CPA), 2019, it regulates matters related to consumer rights violations and unfair trade practices.
• The act empowers the CCPA to prevent false or misleading advertisements and ensure consumer rights are protected.
• It operates under the Ministry of Consumer Affairs, Food and Public Distribution.

Section 21 of CPA Act

• Section 21 of CPA, 2019 grants the CCPA the power to issue directions and penalties against false or misleading advertisements. It provides definition of Misleading Advertisement, Powers of the CCPA and Penalties (imprisonment of up to 2 years and a fine of up to Rs. 10 lakh).

Benefits to Consumers

• Informed Consumers: CCPA empowers informed consumer decisions by deterring deceptive marketing.
• Transparent Ads: CCPA interventions promote truthful advertising practices.
• Trustworthy Claims: CCPA discourages misleading claims, boosting consumer trust.
• Fair Competition: It ensures competition based on product merit, not deceptive claims.

Case Study

Reducing Pendency in Consumer Courts through Suspension of Vacations

• National Consumer Disputes Redressal Commission (NCDRC) and state consumer commissions have worked to clear the backlog of pending cases by suspending the traditional summer vacation practices.

Background

• Since the CCPA’s inception (July 2020), 415,104 cases have been filed, and 440,971cases have been disposed of, indicating a positive trend.
• However, 555,000 cases are pending before consumer commissions as of December 2022.

Addressing the Backlog

• In 2022, the NCDRC started suspending summer vacations for state consumer commissions.
• The NCDRC cited the provisions of the CCPA, which state that all commissions must follow the holiday schedule prescribed by the state government, and there is no provision for a summer vacation in any state office.

Impact and Outcomes

• In 2022, the NCDRC received 3,420 cases and resolved 4,138 cases, compared to 2,449 cases received and 2,011 cases resolved in 2021.
• In 2023, the NCDRC received 5,276 cases and resolved 6,422 cases, further reducing the backlog.
• As of May 2024, consumer commissions have resolved 70,576 cases, while 69,615 cases have been filed, indicating a positive trend in clearing the backlog.
• The introduction of e-courts has also contributed to the increased efficiency of the consumer dispute redressal process.

Duties and Responsibilities of Central Consumer Protection Authority

• Conscious and Informed Consumer: Central Consumer Protection Authority in India prevents deceptive marketing and enables consumers to make informed decisions about the product by making them aware.

• Transparent Advertising: Interventions of Central Consumer Protection Authority help in promoting truthful and transparent advertising practices to the consumers.
• Credible Claims: CCPA in India prevents and discourages deceptive claims, thereby increasing the confidence of consumers in that product.
• Fair Competition: Central Consumer Protection Authority in India ensures that any kind of competition in respect of a product is based on the actual merit of that product and not on the basis of misleading claims or advertisements.

National Consumer Disputes Redressal Commission

• National Consumer Disputes Redressal Commission (CCPA) has been established under the Indian Consumer Protection Act, 2019.
• Its objective is to protect, safeguard, promote and enforce the rights of consumers.
• CCPA takes action against unfair trade practices and misleading advertising to safeguard the interests of consumers.
• It is working through enforcement of progressive legislations to protect and empower the interests of consumers.

CCPA in India performs the following functions

1. To investigate violations of consumer rights and take action against unfair trade practices.
2. To file complaints before the Consumer Commission.
3. To review matters relating to consumer rights.
4. To recommend the discipline of international consumer rights.
5. To encourage research in the field of consumer rights.
6. To raise awareness about consumer rights.
7. To safeguard the interest of consumers.
8. To issue safety notices against dangerous or unsafe clothing or services.
9. To advise the ministries and departments of the Central and State Government on consumer welfare measures.
10. Preventing unfair trade practices.