Context:

Recently, the Central Consumer Protection Authority (CCPA) imposed penalty on a popular IAS coaching institute for deceptive advertising about its students’ success in the civil services examination.

More on the News

• The CCPA found that the coaching institute deliberately withheld specific course information, thus creating a misleading impression about its success rates in civil services examination.
• The CCPA emphasized that complete course information is crucial for consumers to make informed choice while deciding the course and coaching institute/platform to enroll in. 
• This penalty is part of a broader crackdown by the CCPA on misleading advertisements and unfair trade practices in the coaching industry. 
• So far, the CCPA has issued 46 notices to various coaching institutes for misleading advertisements and unfair trade practice and has imposed penalties amounting to ₹74.60 lakh on 23 of them.

About CCPA

The Central Consumer Protection Authority (CCPA) is India’s apex consumer watchdog. It was established under Section 10(1) of the Consumer Protection Act, 2019, and became operational on 24th July 2020.

It has been tasked to regulate matters relating to violation of rights of consumers, unfair trade practices, and false or misleading advertisements which are prejudicial to the interests of consumers as class and public at large.

Powers and Functions of CCPA under Consumer Protection Act, 2019 are:

• Protect, promote, and enforce consumer rights under the Act.
• Prevent unfair trade practices and misleading advertisements.
• File complaints before the Consumer Commission on behalf of affected consumers.
• Impose penalties on manufacturers, service providers, and endorsers of false advertisements.
• Promote awareness about consumer rights and advise government bodies on consumer welfare measures.

About Consumer Protection Act, 2019

• The Consumer Protection Act, 2019, replaced the 1986 Act to address the evolving consumer landscape. 
• It introduces stricter provisions against misleading advertisements and unfair trade practices, providing a robust framework for consumer protection.

Key Features of the Act:

• Definition of Misleading Advertisements: Section 2(28) defines misleading advertisements as those that falsely describe products or services, provide false guarantees, or conceal important information.
• Powers of CCPA: Section 21 defines the powers given to the CCPA to crack down on false or misleading advertisements. If the CCPA is satisfied after investigation, it can order discontinuation or modification of misleading advertisements. 
• Further, it can also impose a penalty up to Rs 10 lakh, with imprisonment up to two years, on the manufacturer or endorser of false and misleading advertisements. The penalty may go up to Rs 50 lakh, with imprisonment up to five years, for every subsequent offence. 
• Consumer Rights: Section 2(9) provides for 6 essential consumer rights for every consumer in India. These are – 
• Right to Safety
• Right to be Informed
• Right to Choose
• Right to be Heard
• Right to Seek redressal
• Right to Consumer Education

National Consumer Rights Day

• National Consumer Rights Day is celebrated in India on 24th of December every year to raise awareness about consumer rights and responsibilities. 
• It marks the day when the Consumer Protection Act of 1986 received the presidential assent and was enacted. 
• Recently, the National Consumer Day 2024 was celebrated with the theme “Virtual Hearings & Digital Access to Consumer Justice”.
• World Consumer Rights Day is celebrated on the 15th of March every year to raise global awareness about consumer rights and needs.