26-Jul-2022: Central Consumer Protection Authority completes two years of glorious establishment

The Central Consumer Protection Authority (CCPA) has initiated country-wide campaign to prevent sale of spurious and counterfeit goods that violate Quality Control Orders (QCOs) published by the Central Government and raise awareness and consciousness among consumers to purchase goods that conform to BIS Standards, informed Ms. Nidhi Khare, Chief Commissioner CCPA here today.

CCPA completed its two years of glorious establishment on July 24, 2022. While addressing media persons, Ms. Khare said that CCPA so far has issued 129 notices, 71 for misleading, 49 for unfair trade practice, and 9 for violation of consumer rights. The first Safety Notice was issued with regard to Helmets, Pressure Cookers and Cooking gas cylinders and the second Safety Notice was issued with regard to household goods including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG etc.

CCPA has also issued Safety Notices to alert consumers against buying household goods which do not have valid ISI mark, like electric immersion water heater, sewing machine, aluminum foil for food packaging etc. Violation of compulsory standards for such goods endangers public safety putting consumers at the risk of suffering severe harm or injury. In furtherance of the campaign, CCPA has taken Suo-moto cognizance against e-commerce entities found to be selling Pressure Cookers in violation of the Domestic Pressure Cooker (Quality Control) Order, 2020 issued by the Central Government under Section 16 (1) of the BIS Act, 2016 on 21st January 2020.

The power of CCPA to take Class action is a unique feature that was not present in the previous Consumer Protection Act, of 1986. Before the 2019 Act, there was no mechanism to deal with issues of unfair trade practices and misleading advertisements which impacted consumers as a class. As a result, such practices continued unrestrained, without any accountability. The establishment of the Central Consumer Protection Authority (CCPA), with powers to pass orders of discontinuation of practices that are unfair and prejudicial to consumers’ interests and impose penalties in case of false or misleading advertisements is another means of relief to the consumers apart from approaching the commissions. CCPA through class action protects the right of the consumers even the sleeping consumers who are unaware of their rights.

The break of a pandemic in 2020 gave birth to the fear in the hearts of the consumers which was exploited by many companies through misleading advertisements on which the CCPA Suo moto took cognizance and issued notices to such defaulting companies. Covid-19 has also brought in a drastic shift of the consumers to the online marketplace. In the wake of consumer sensitivity around the Covid-19 pandemic, stringent action against various companies for misleading advertisements has been taken whereby 15 companies withdrew their advertisements and 3 companies made corrective advertisements.

CCPA has ordered discontinuation of advertisements of Sensodyne products which make the claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste” within seven days and “clinically proven relief, works in 60 seconds” where CCPA directed payment of a penalty of ₹10 lakh and the penalty has been paid. Also, advertisements which show endorsements by foreign dentists have been ordered to be discontinued as per the earlier order passed by CCPA.

Further, CCPA has directed the discontinuation of ‘Sure Vision’ advertisement and imposed a penalty of Rs 10 Lakh over false and misleading claim which has been paid by Sure Vision. The order was passed against Sure Vision India regarding misleading advertisements for its product "Sure Vision" which claims that " Sure Vision improves eyesight naturally; Eliminates eye strains; Exercise the culinary muscles; World's best unisex correction apparatus". The company was not able to substantiate its claims related to the efficacy of the product made out in the advertisement. And the penalty of Rs. 10,00,000 was also imposed on the Naaptol regarding ‘Magnetic Knee Support’, ‘Acupressure Yoga Slippers/Acupressure massage slippers’, and ‘Gold jewelry of Rs. 200’ for making false claims regarding their product without any scientific credibility/reports. 

To protect the consumers on E-commerce websites the CCPA issued an advisory to all the E-commerce market places to disclose the details of the seller and complete details of the product being sold on such websites. The CCPA is also working to develop a framework to check fake reviews on E-Commerce websites. For this, a Committee involving all the stakeholders has been constituted. In his regard, the CCPA has imposed a penalty of Rs. 1,00,000 on Paytm Mall which is paid, for listing pressure cookers on its platform despite the product do not conform to compulsory BIS standards.

Central Consumer Protection Authority has issued notice to Ola and Uber on violation of consumer rights and unfair trade practices. In addition, the issues raised were lack of proper consumer grievance redressal mechanism, deficiency in service, unreasonable levy of cancellation charges and fairness of algorithm used to charge fares among major issues raised by CCPA. Further, Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 were also issued. The guidelines seek to ensure that consumers are not being fooled with unsubstantiated claims, exaggerated promises, misinformation, and false claims.

Compulsory payment of the Service Charge is one of the major issues faced by the consumers on which the CCPA has issued Guidelines on Service Charge making it to be paid voluntarily/optional by the consumer. The CCPA also keeps its focus on the health of the consumers in this regard an Advisory to e-commerce entities is issued by the authority for stopping the sale of Ayurvedic, Siddha, and Unani drugs without a valid prescription of a registered Ayurveda, Siddha, or Unani practitioner. Advisory on the wireless jammers is also a stone turned in the way of consumer protection the e-commerce platforms are hereby advised to refrain from selling or facilitating the sale of any kind of wireless jammers.

The CCPA in lieu of the Honourable Prime Minister Narender Modi Ji’s LiFE movement (Lifestyle for Environment) in India i.e. reduce, reuse and recycle of the products, observed that countries like the USA, the U.K., and Unions like European Union have enforced the reformative law on the Right to Repair for protecting the rights of consumers and making a fair play in the market, the need was felt in India as well. All types of reuse require repair, and even the sustainable life of the products depends on it.

In addition to becoming e-waste, devices that cannot be repaired or fall under planned obsolescence, or creating a product with an artificially limited useful life, drive consumers to acquire new products because they cannot be repaired to be reused. Therefore, limiting product repair forces the buyer to consciously choose a new model of that product. As a result, the authority is working towards bringing in the framework on Right to Repair so as to reduce e-waste. The "Right to Repair" concept is based on the idea that a product must be completely owned by the person who owns it in order for them to be able to repair and improve it as they see fit. Additionally, the components of products should be made available to third-party repairers.

The CCPA does not aim at curbing innovation or putting restrictions on the companies but works towards building such an ecosystem that promotes the business as well as protection of the consumer’s rights. CCPA has taken active steps in modernizing the legal framework on consumer protection to keep pace with the changes in markets to ensure fair, equitable, and consistent outcomes for consumers

On its anniversary CCPA celebrates another year of glorious success in the protection and promotion of consumer rights as a class in this ever-changing marketplace. With the emergence of global supply chains, rise in international trade and the rapid development of e-commerce, new options and opportunities became available to consumers. Consequently, this also made consumers susceptible to new forms of unfair trade and unethical business practices. Misleading advertisements, telemarketing, multi-level marketing, direct selling and e-commerce posed new challenges to consumer protection and required appropriate and swift executive interventions to prevent consumer detriment.

14-Jul-2022: CCPA issues Advisory to e-commerce platforms on sale of Ayurvedic, Siddha and Unani drugs

The Central Consumer Protection Authority (CCPA) has issued an Advisory to e-commerce entities concerning the sale of Ayurvedic, Siddha and Unani drugs containing ingredients listed in Schedule E (1) of the Drugs and Cosmetics Rules, 1945. E-commerce platforms have been advised that the sale or facilitating the sale of such drugs shall be done only after a valid prescription of a registered Ayurveda, Siddha or Unani practitioner respectively is uploaded by the user on the platform. Consuming such drugs without medical supervision can lead to severe health complications.

As per Rule 161(2) of the Drugs and Cosmetics Rules, 1945, the container of a medicine for internal use for the treatment of human ailments shall, if it is made up of a substance specified in Schedule E (1), be labelled conspicuously with the words “Caution: To be taken under medical supervision” both in English and Hindi language.

It may be mentioned that the Ministry of Ayush issued a public notice on 01.02.2016 informing stakeholders that the aforementioned drugs are required to be taken under Medical Supervision and purchasing the same online should be avoided without medical consultation.

Under Section 18 of the Consumer Protection Act, 2019, CCPA is empowered to protect, promote and enforce the rights of consumers as a class, and prevent violation of consumers’ rights. Further, CCPA is empowered to prevent unfair trade practices and ensure that no person engages himself in unfair trade practices.

CCPA consistently monitors the issues affecting consumer welfare. Recently, CCPA issued guidelines to prevent unfair trade practices and protection of consumer interests with regard to the levy of service charges in hotels and restaurants. CCPA has also issued guidelines for the prevention of Misleading Advertisements and Endorsements for Misleading Advertisements to protect consumers against such advertisements.

To safeguard consumer rights while shopping online, CCPA has issued an Advisory to all marketplace e-commerce entities to ensure that details of sellers as mandated under sub-rule (5) of rule 6 of the Consumer Protection (E-commerce) Rules, 2020 including name and contact number of the grievance officer are provided in a clear and accessible manner, displayed prominently to users on the platform.

CCPA has also issued Safety Notices under Section 18(2)(j) of the Act to alert and caution consumers against buying goods which do not hold a valid ISI Mark and violate compulsory BIS standards. While the first Safety Notice was issued with regard to Helmets, Pressure Cookers and Cooking gas cylinders, the second Safety Notice was issued with regard to household goods including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG etc.

1-Jan-2021: Central Consumer Protection Authority continues to work towards the protection of the interest and rights consumers

After its establishment, the Central Consumer Protection Authority has been taking proactive action for the protection of the interest and rights of the consumers. One of the functions of the CCPA envisaged in the Act is to review the matters relating to, and the factors inhibiting enjoyment of, consumer rights, including safeguards provided for the protection of consumers under any other law for the time being in force and recommend appropriate remedial measures for their effective implementation.

Observing that several advertisements are being issued during the COVID-19 pandemic to mislead and misguide the consumers relating to several consumer goods/products, the CCPA has, Suo-moto, issued show cause notices to companies in the sectors like water purifier, paints, floor cleaner, apparel, disinfectant, furniture etc. The action of CCPA will certainly deter the unscrupulous traders from launching misleading advertisements to exploit the sentiments of the consumers for cheap commercial profits. Notice has also been issued to Cab Aggregators for resorting to unfair trade practice with regard to refund of excess fare charged.

The CCPA will continue to work towards the protection of the interest and rights of the consumers. On analysis of the consumer grievances received in the National Consumer Helpline, the CCPA has recently taken up the matter of failed/cancelled transactions while using inter-banking services by the consumers like IMPS, UPI etc. where money has not been refunded to the consumer or where the timeline for settlement of such claims has not been adhered to, with the sector regulator, the Reserve Bank of India with a view to protect the rights of the consumers.

The CCPA has also asked the Insurance Regulator, the IRDAI, to look into the delay in getting the claim amount by the consumers and take up the consumer grievances with the Insurance Companies to adhere to the time lines stipulated in the IRDAI Protection of Policyholders' interest Regulations, 2017.

The Central Consumer Protection Authority has been established w.e.f.24th July, 2020 under section 10 of the Consumer Protection Act, 2019 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 public and consumers and to promote, protect and enforce the rights of consumers as a class. It can conduct investigations into violation of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements.

15-Sep-2020: Consumer Welfare Fund

The Consumer Protection Act, 1986 had set in motion a consumer movement in the country. The Consumer Protection Act, 2019 which came into effect from 20th July 2020, and replaces the Consumer Protection Act of 1986 would give greater fillip to the ongoing consumer movement in the country. The Consumer Protection Act, 2019 provides for establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers as a class. The Act provides for  simplifying the consumer dispute adjudication process in the Consumer Commissions, which include, among others, empowerment of the State and District Commissions to review their own Orders, enabling a consumer to file complaints electronically and file complaints in Consumer Commissions that have jurisdiction over the place of his residence, video conferencing for hearing and deemed admissibility of complaints if the question of admissibility is not decided within the specified period of 21 days. To simplify the adjudication process, mediation, as an Alternate Dispute Resolution mechanism, has been provided in the new Act. The Act introduces the concept of product liability and brings within its scope the product manufacturer, the product service provider and the product seller, for any claim for compensation.

To protect the interests of the consumers, the Govt. has launched the “Jago Grahak Jago” campaign through electronic and print media for consumer awareness and joint awareness campaigns on consumer rights and responsibilities in key sectors – Health, Food, Financial Services and other Departments for greater consumer awareness. The Government has set up a National Consumer Helpline and to cater to the needs of consumers, regional languages, six Zonal Consumer Helplines have also been set up at Ahmedabad, Bengaluru, Kolkata, Jaipur, Guwahati & Patna.

The Consumers have been able to redress their grievances/ complaints against any defect in goods purchased or deficiencies in any services availed including any unfair/restrictive trade practices adopted, through specialized quasi-judicial agencies, now commonly known as ‘consumer commissions’, that have been established at the District level (District Consumer Disputes Redressal Commission), State level (State Consumer Disputes Redressal Commission) and National level (National Consumer Disputes Redressal Commission). These consumer commissions have been mandated by the law to render simple, inexpensive and speedy adjudication of consumer complaints.

The Consumer Welfare Fund was created in 1992 with the objective of providing financial assistance to promote and protect the welfare of the consumers, create consumer awareness and strengthen consumer movement in the country. Financial assistance is provided to Voluntary Consumer Organisations / Institutions for undertaking consumer advocacy / awareness and to State Government / Union Territories for setting up State Consumer Welfare Fund.

30-Jul-2020: Central Consumer Protection Authority established to promote, protect and enforce the rights of consumers

The Consumer Protection Act, 2019 has come into force from 20th July, 2020. As provided in section 10 of the Act, the Central Consumer Protection Authority (CCPA) has been established w.e.f. 24th July, 2020.

For operationalization of the CCPA, Additional Secretary in the Department of Consumer Affairs, Smt. Nidhi Khare has been assigned the charge of Chief Commissioner, Joint Secretary in the Department Shri Anupam Mishra as Commissioner, Director General, BIS Shri Pramod K Tiwari as Director General (Investigation) and Director General, National Test House, Shri Vineet Mathur  as Additional Director General (Investigation) in the Central Consumer Protection Authority w.e.f. 29th July, 2020 to exercise the powers and discharge the functions under the Act.

Meanwhile, the CCPA will start functioning in the premises of IIPA. The support staff is being arranged from the Centre for Consumer Studies of The Indian Institute of Public Administration (IIPA) and the National Consumer Helpline, which have been financially aided by the Department since 2007.

The objective of the Central Consumer Protection Authority (CCPA) is to promote, protect and enforce the rights of consumers as a class. It will be empowered to conduct investigations into violation of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements.

For giving effect to the provisions of the Act, the following rules have also been notified and made effective from 20th July, 2020:

1. The Consumer Protection (General) Rules, 2020
2. The Consumer Protection (Central Consumer Protection Council) Rules, 2020.
3. The Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020.
4. The Consumer Protection (Mediation) Rules, 2020.
5. The Consumer Protection (Salary, allowances and conditions of service of President and Members of the State Commission and District Commission) Model Rules, 2020.
6. The Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and members of the State Commission and District Commission) Rules, 2020.
7. The Consumer Protection (E-Commerce) Rules, 2020. [effective from 23 July, 2020].

The National Consumer Disputes Redressal Commission has also notified the following Regulations effective from 24th July, 2020:

1. The Consumer Protection (Consumer Commission Procedure) Regulations, 2020.
2. The Consumer Protection (Administrative Control over the State Commission and the District Commission) Regulations, 2020.
3. The Consumer Protection (Mediation) Regulations, 2020.

20-Jul-2020: Consumer Protection Act, 2019 comes into force from today

The Consumer Protection Act,2019 comes in to force from today i.e. 20th July 2020. While briefing the media about the Consumer Protection Act, 2019 through video conference here today, the Union Minister for Consumer Affairs, Food & Public Distribution Shri Ram Vilas Paswan said that this new Act will empower consumers and help them in protecting their rights through its various notified Rules and provisions like Consumer Protection Councils, Consumer Disputes Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale of products containing adulterant / spurious goods.

He said that the Act includes establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.  The CCPA will be empowered to conduct investigations into violations of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuance of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements. Shri Paswan further said that the rules for prevention of unfair trade practice by e-commerce platforms will also be covered under this Act. The gazette notification for establishment of the Central Consumer Protection Authority and rules for prevention of unfair trade practice in e-commerce are under publication.

Shri Paswan further said under this act every e-commerce entity is required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, security of payment methods, charge-back options, etc. including country of origin which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage on its platform.  He said that e-commerce platforms have to acknowledge the receipt of any consumer complaint within forty-eight hours and redress the complaint within one month from the date of receipt under this Act. He further added that the New Act introduces the concept of product liability and brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation.

Shri Paswan further informed that the new Act provides for simplifying the consumer dispute adjudication process in the consumer commissions, which include, among others,  empowerment of the State and District Commissions to review their own orders, enabling a consumer to file complaints electronically and file complaints in consumer Commissions that have jurisdiction over the place of his residence, videoconferencing for hearing and deemed admissibility of complaints if the question of admissibility is not decided within the specified period of 21 days.

The Minister said an Alternate Dispute Resolution mechanism of Mediation has been provided in the new Act.  This will simplify the adjudication process.  A complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and parties agree for it. Mediation will be held in the Mediation Cells to be established under the aegis of the Consumer Commissions.  There will be no appeal against settlement through mediation.

He said, as per the Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases upto Rs. 5 lakh. There are provisions for filing complaints electronically, credit of amount due to unidentifiable consumers to Consumer Welfare Fund (CWF).  The State Commissions will furnish information to Central Government on a quarterly basis on vacancies, disposal, pendency of cases and other matters.

Shri Paswan further informed that the New Act also introduces the concept of product liability and brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation. The Act provides for punishment by a competent court for manufacture or sale of adulterant/spurious goods. The court may, in case of first conviction, suspend any licence issued to the person for a period of up to two years, and in case of second or subsequent conviction, cancel the licence.

Under this new Act, besides general rules, there are Central Consumer Protection Council Rules, Consumer Disputes Redressal Commission Rules, Appointment of President & Members in State/District Commission Rules, Mediation Rules, Model Rules and E-Commerce Rules and Consumer Commission Procedure Regulations, Mediation Regulations and Administrative control over State Commission & District Commission Regulations.

Shri Paswan said that the Central Consumer Protection Council Rules are provided for constitution of the Central Consumer Protection Council, an advisory body on consumer issues, headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from different fields. The Council, which has a three-year tenure, will have Minister-in-charge of consumer affairs from two States from each region- North, South, East, West, and NER. There is also provision for having working groups from amongst the members for specific tasks.

In his concluding remarks, Shri Paswan said that in earlier Consumer Protection Act, 1986a single point access to justice was given, which is also time consuming. The new act has been introduced after many amendments to provide protection to buyers not only from traditional sellers but also from the new e-commerce retailers/platforms. He said that this Act will prove a significant tool in protecting consumer rights in the country.