Central Consumer Protection Authority (CCPA)

Latest News 

• Action Against Restaurants: The CCPA took suo moto cognizance against five Delhi restaurants for imposing mandatory service charges despite a Delhi High Court ruling prohibiting such practices.

  • Objective: Protect consumers from unfair charges and ensure compliance with consumer rights laws.

  • Legal Basis: Service charges cannot be forced under any name, as per the Consumer Protection Act, 2019.

About CCPA

• Establishment: Constituted under Section 10 of the Consumer Protection Act, 2019, replacing the 1986 Act.

• Enforcement Date: Came into force on July 20, 2020.

• Nodal Ministry: Ministry of Consumer Affairs, Food & Public Distribution.

• Headquarters: New Delhi.

Key Functions & Powers

1. Consumer Rights Enforcement:

   • Protect consumers against unfair trade practices (e.g., false advertising, hidden charges).

   • Initiate class-action suits for recalls, refunds, or license cancellations.

2. Regulatory Actions:

   • Investigate complaints through its Investigation Wing (headed by a Director-General).

   • Issue orders to discontinue unfair practices and impose penalties (up to ₹10 lakh for false ads).

3. Awareness & Education:

   • Promote consumer awareness about rights and remedies.

Composition

• Chief Commissioner: Heads the CCPA.

• Two Commissioners:

  • Goods Commissioner: Addresses issues related to products.

  • Services Commissioner: Handles complaints about services.

Significance of CCPA

• Proactive Role: Takes suo moto action (without waiting for complaints) to address systemic issues.

• Legal Muscle: Powers to penalize businesses, ensuring accountability (e.g., fines, license cancellations).

• Consumer Empowerment: Simplifies grievance redressal and strengthens trust in markets.

Recent Actions

• False Advertising Crackdown: Penalized brands like Baba Ramdev’s Patanjali for misleading claims.

• E-commerce Guidelines: Issued directives to prevent dark patterns (deceptive online practices).

Key Takeaways

• The CCPA is a powerful watchdog ensuring fair practices in India’s consumer market.

• Recent actions against service charges highlight its proactive enforcement of consumer rights.

• Consumers can report grievances via NCH (1915) or the Consumer Commission portal.

FAQs

1. What is suo moto cognizance?

   • The CCPA can initiate action independently without a formal complaint.

2. Can consumers report issues directly to CCPA?

   • Yes, via the National Consumer Helpline (NCH) or online portals.

3. What penalties apply for false advertisements?

   • Up to ₹10 lakh for first-time offenders; repeat offenders may face higher fines or bans.