Central Consumer Protection Authority Celebrates Two-Year Anniversary

The Central Consumer Protection Authority (CCPA) has launched a nationwide campaign to prevent the sale of spurious and counterfeit goods that violate the Central Government's Quality Control Orders (QCOs) and raise consumer awareness and consciousness to purchase goods that conform to BIS Standards, according to Nidhi Khare, Chief Commissioner CCPA, here today.

On July 24, 2022, the CCPA celebrated its two-year anniversary. Khare told reporters that the CCPA has issued 129 notices so far, 71 for misleading, 49 for unfair trade practices, and 9 for violations of consumer rights. The first Safety Notice addressed Helmets, Pressure Cookers, and Cooking Gas Cylinders, while the second addressed household goods such as electric immersion water heaters, sewing machines, microwave ovens, and domestic gas stoves with LPG, and so on.

The CCPA has also issued Safety Notices to warn consumers against purchasing household goods that lack a valid ISI mark, such as an electric immersion water heater, sewing machine, aluminum foil for food packaging, and so on. Violation of mandatory standards for such goods endangers public safety, putting consumers in danger of serious harm or injury. In support of the campaign, the CCPA has taken suo-moto action 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 on 21st January 2020 under Section 16 (1) of the BIS Act, 2016.

The ability of the CCPA to bring a class action lawsuit is a unique feature that did not exist in the previous Consumer Protection Act of 1986. Prior to the 2019 Act, there was no mechanism in place to address issues of unfair trade practices and misleading advertisements that affected consumers as a group.

As a result, such practises continued unabated and without consequence. Aside from approaching the commissions, consumers can seek relief through the establishment of the Central Consumer Protection Authority (CCPA), which has the authority to issue orders for the discontinuance of practises that are unfair and detrimental to consumers' interests and to impose penalties in cases of false or misleading advertisements. The CCPA, through class actions, protects the rights of consumers, including those who are sleeping and are unaware of their rights.

The outbreak of a pandemic in 2020 sowed fear in the hearts of consumers, which many companies exploited through misleading advertisements, for which the CCPA suo moto took cognizance and issued notices to such defaulting companies. Covid-19 has also resulted in a significant shift of consumers to the online marketplace. Following consumer sensitivity surrounding the Covid-19 pandemic, stringent action was taken against various companies for misleading advertisements, with 15 companies withdrawing their advertisements and 3 companies making corrective advertisements.

The CCPA has ordered the removal of advertisements for Sensodyne products that 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," and the penalty has been paid. In addition, advertisements featuring endorsements from foreign dentists have been ordered to cease and desist, in accordance with an earlier order issued by the CCPA.

To protect consumers on E-commerce websites, the CCPA issued an advisory to all E-commerce marketplaces requiring them to disclose the seller's details as well as the complete details of the product being sold on such websites. The CCPA is also working to create a framework for detecting fake reviews on E-Commerce websites. A committee comprised of all stakeholders has been formed to this end.

In this regard, the CCPA imposed an Rs. 1,00,000 penalty on Paytm Mall, which was paid, for listing pressure cookers on its platform despite the fact that the product did not meet mandatory BIS standards.

The CCPA celebrates another year of glorious success in the protection and promotion of consumer rights as a class in this ever-changing marketplace on its anniversary. Consumers now have more options and opportunities thanks to the emergence of global supply chains, an increase in international trade, and the rapid development of e-commerce.

As a result, consumers became vulnerable to new forms of unfair trade and unethical business practises. Misleading advertisements, telemarketing, multi-level marketing, direct selling, and e-commerce presented new challenges to consumer protection, necessitating appropriate and timely executive intervention to avoid consumer harm.