Source: News on Air
Subject: Polity
Context: The Central Consumer Protection Authority (CCPA) has imposed an ₹11 lakh penalty on coaching institute for publishing misleading advertisements related to UPSC CSE results.
- The action was taken under the Consumer Protection Act, 2019, highlighting strict enforcement against deceptive coaching claims.
About Consumer Protection Act, 2019:
What is it?
- The Consumer Protection Act, 2019 is a comprehensive law enacted to protect consumer rights, curb unfair trade practices, and provide speedy grievance redressal in an increasingly digital and service-driven economy. It replaced the Consumer Protection Act, 1986.
Aim:
- To safeguard consumers from misleading advertisements, unfair trade practices, and defective goods/services.
- To establish strong enforcement mechanisms and ensure accountability of manufacturers, service providers, and advertisers.
Key features
- Central Consumer Protection Authority (CCPA): Empowers the government to investigate, penalise, and order discontinuation of misleading advertisements and unfair trade practices.
- Definition of misleading advertisement (Section 2(28)): Covers false claims, concealment of material facts, and exaggerated promises likely to mislead consumers.
- Product liability provisions: Fixes liability on manufacturers, service providers, and sellers for harm caused by defective goods or deficient services.
- Enhanced consumer rights: Explicitly recognises six consumer rights including the right to information, choice, redressal, and consumer awareness.
- E-commerce regulation: Brings online platforms and digital advertisements under the consumer protection framework.
- Simplified dispute redressal: Introduces e-filing of complaints, mediation cells, and clearer jurisdiction of consumer commissions.
Significance:
- Protects aspirants and parents from exploitative practices in high-stakes sectors like education and coaching.
- Promotes truthful advertising and transparency, especially in the digital space.
