Central Consumer Protection Authority(CCPA)

 Central Consumer Protection Authority is being established by Section 10 of the

Consumer Protection Act, 2019.[1]
 The CCPA aims to protect the rights of the consumers by cracking down on unfair
trade practices, and false and misleading advertisements that are detrimental to the
interests of the public and consumers.
Contents
1 Functions of Central Authority
2 Powers of Central Authority
3 The Functioning Of The Authority
3.1 Some more Authorities
4 Appeal
5 Conclusion
6 Reference
6.1 Related
Functions of Central Authority
The functions of the Central Authority are as follows—
 To protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights under this Act;
 Prevent unfair trade practices and ensure that no person engages himself in unfair
trade practices;
 To ensure that no false or misleading advertising is made of any goods or services
which contravenes the provisions of this Act or the rules or regulations made
thereunder;
 To ensure that no person takes part in the publication of any advertisement this is false
or misleading.[2]
Powers of Central Authority
Powers of Central Authority are as follows:
 To inquire or to get an inquiry or investigation done into cases of violation of
consumer rights or for the cases of unfair trade practices. The authority can take this
action either on its own in the direction of the Central Government.
 To file complaints before all the three Commissions, depending upon the facts of the
case; to intervene in the proceedings before the Commissions if needed.
  Review the matters that relates to and affects the enjoyment of, consumer rights,
inclusive of the safeguards given for the protection of consumers under any other law
for the time being in force and to recommend reasonable remedial measures for the
proper implementation of the laws;
 To make sure effective implementation of consumer rights by recommending
adoption of international covenants and practices.
 Promote and undertake research in the field of consumer rights;
 Create and promote awareness on consumer rights;
 To encourage NGOs and other institutions that work in the field of consumer rights to
co-operate and work with consumer protection agencies;
 Make compulsory the use of unique and universal goods prevent unfair trade practices
and to protect consumers’ interest;
 To issue safety notices to warn consumers against dangerous or hazardous or unsafe
goods or services;
 To advise the Ministries and Departments of the Central and State Governments on
consumer welfare measures;
 issue necessary guidelines to prevent unfair trade practices and protect consumers’
interests.
The Functioning Of The Authority
 After receiving the complaint/information/direction or own its own can conduct or
cause to be conduct a preliminary inquiry in order to decide whether there exists a
prima facie case of consumer rights violation, unfair trade practice, or
false/misleading advertisement, that is against the interests of the society and public
and if satisfied, the authority can order an investigation to be conduct by the District
Collector or the Director-General.
 After the inquiry, if the Authority considers that matter should be deal with by a
Regulator that has been establish under other laws that are in force for the time being,
the same along with the report can be refer to such regulator.
 For conducting an investigation, the Authority, the Director-General, or the District
Collector are empower to call a person refer to under section 19(1) and can also direct
such person to present any document or record in his possession.[3]
Some more Authorities
 In case the Authority is satisfy with the evidence collect during the investigation that
there is a case of violation of rights if consumers/unfair trade practice or
false/misleading advertisement,
 the authority can pass the required orders, including:
  Order to recall goods or withdraw services that are dangerous, hazardous, or unsafe;
 Order reimbursement of the prices of goods or services to buyers of such goods or
services; and
 Order for doing away with such practices that are unfair and against the interests of
the consumers.
 For conducting an investigation the officers of the CCPA’s Investigation Wing have
the powers to enter any premise and search for any document or article, and to seize
these. For search and seizure, the CCPA has similar powers given under the provisions
of The Code of Criminal Procedure, 1973.
 However, the authority should provide an opportunity of being heard to the person
against whom an action is to be taken under this act.[4]
 Central Authority also has the power to issue directions or impose penalties in cases
of false and misleading advertisements
 under Section 21 of the Consumer Protection Act, 2019. The authority can impose a
penalty ranging from 1 Million to 5 Million depending on the facts of the case. An
action can also be taken against the endorsers for false and misleading advertisements.
[5] A fair opportunity of being heard should be provide to the person against whom an
action is to be take under Section 21.
Appeal
An appeal against the orders of the Central Consumer Protection Authority can be file by the
person within a period of 30 days from the date of such order in the National Consumer
Dispute Redressal Commission.[6]
Conclusion
The government by establishing a central authority has given an additional relief to the
consumers in form of initiating class actions along with the individual filing of complaints
By the consumers for their rights and interests. With this, the consumers can now have two
parallel proceedings, thus increasing their chance of getting redressal.

Consumer Disputes Redressal Mechanism under Consumer Protection Act

This article will deal with consumer disputes redressal machinery, 3 tier redressal system of
consumer protection and the consumer redressal mechanism or consumer redressal machinery
or, Redressal mechanism under consumer protection act 2019
When you have a grievance about any goods or services that you have availed then you can
approach the redressal mechanism that is the consumer forum for redressal of your issue. The
corporate entities need to know that any person or even government or non-government body
personally or through a lawyer can file a consumer complaint in case of any dispute regarding
goods or services availed from you. The corporate redressal system is a must.
E.g.- Calculation of interest on loans, defects in any food product or any other material
purchased, lesser quantity than mentioned in the purchased product etc.
With the rise in grievances of consumers and more awareness about the rights of the
consumers, the Redressal Mechanism of Consumer Protection Act, 1986 came into force.
Under the Redressal Mechanism of Consumer Protection Act, 1986 a quasi- judicial system
was established.
We will try to get an insight into how this system works:
THREE TIER CONSUMER GRIEVANCES MACHINERY UNDER THE CONSUMER
PROTECTION ACT!
The Act envisages a three- tier quasi-judicial machinery at the National, State and District
levels.

- National Consumer Disputes Redressal Commission National Commission.

(Exceeding 1 Crore)
- State Consumer Disputes Redressal Commissions State Commission. (> Rs.
20 Lakhs < Rs. 1 Crore)
- District Consumer Disputes Redressal Forums - District Forum. (< Rs. 20
Lakhs.)

(i) District Forum- A President and two other members make up the District Forum, one of
whom should be a woman. They are all appointed by the relevant state government. When the
value of the products or services in question, as well as the compensation sought, does not
exceed Rs.20 lakhs, a complaint can be filed with the appropriate District Forum. When the
District Forum receives the complaint, it is forwarded to the party that is the subject of the
complaint. If necessary, the goods or a sample of them must be sent to a laboratory for
testing. After evaluating the laboratory results and hearing the person against whom the
complaint is lodged, the District Forum will issue an order. If the aggrieved party is not
satisfied with the District Forum's decision, he may file an appeal with the State Commission
within 30 days of the decision.
(ii) State Commission- A President and at least two other members, one of whom should be
a woman, make up each State Commission. They are appointed by the relevant state
government. When the value of the products or services in question, as well as the
compensation sought, exceeds Rs.20 lakhs but does not exceed Rs.1 crore, a complaint can be
filed with the appropriate State Commission. Appeals against District Forum orders can also
be brought before the State Commission. When the State Commission receives a complaint, it
is forwarded to the person who is the subject of the complaint. If necessary, the goods or a
sample of them must be sent to a laboratory for testing. After evaluating the laboratory report
and hearing the person against whom the complaint is filed, the State Commission will issue
an order. If the aggrieved party is not satisfied with the State Commission's decision, he may
file an appeal with the National Commission within 30 days of the decision.
(iii) National Commision- A President and at least four additional members make up the
National Commission, one of whom should be a woman. The government of the United
States appoints them. When the value of the goods or services in question, as well as the
compensation sought, exceeds Rs.1 crore, a complaint can be filed with the National
Commission. Appeals against State Commission orders can also be made with the National
Commission. When the National Commission receives a complaint, it is forwarded to the
party that is the subject of the complaint. If necessary, the goods or a sample of them must be
sent to a laboratory for testing. After evaluating the tyre test report from the laboratory and
hearing the party against whom the complaint is lodged, the National Commission will issue
an order.
Procedure of filing a complaint:
There is a particular consumer redressal mechanism or consumer redressal machinery-
 The first step is to send a legal notice of the grievance to the Respondent.
 Any person can file the complaint on a plain paper after notarising the document.
  The complaint can also be filed through a post addressed to the particular consumer
redressal mechanism or consumer redressal machinery.
 The fee for filing a complaint can be submitted only by a demand draft.
 Four copies of the complaint have to be filed and if there are more than one
Respondent then one copy for each Respondent has to be filed.
 The complaint has to be filed within two years of the cause of action following the
consumer redressal mechanism or consumer redressal machinery. If the consumer is
not vigilant enough for more than two years then he/she is barred by the limitation
law.
The fee for filing consumer complaints have been kept minimal as the consumer has already
suffered loss and not to burden the consumer monetarily any further.

PENALTIES(SECTION 27)
Each and every order made by District Court is enforceable as enforced by Civil Court, if
there is a non-compliance of the order, the concerned person will be charged with any one or
all of the following penalties:

- Imprisonment for a term which shall not less than one month but which may
extend to three years
- Fine which shall not be less than from Rs. 2,000 but which may extend to Rs.
10,000, or
- With both.

Benefits of redressal though consumer redressal mechanism or consumer redressal

machinery(Forum):
 The disputes are adjudicated faster under this system hence the case is not pending for
years as in civil courts.
 Less cumbersome process: The process of filing the complaint is simple.
 The complainant can themselves file the complaint and there is no need to be
represented by an advocate.
 The complaint can also be made through post.
 Low cost

Grievance Redressal Mechanism

Grievance Redressal Mechanism is a very complex and important topic from the examination
perspective. Any prospective Civil Servant should be well-versed in the subject of grievance
redressal mechanism.
 1. A government's grievance redressal mechanism is a crucial cog in the wheel.
2. The government and its administration will never be accountable or effective unless
they have an effective grievance redressal mechanism/process.
3. Citizens elect the government and hold it accountable in a democracy.
4. Food shortages, overloaded public transportation, late trains, and other public
concerns against the government could be among them.
Consumer Awareness
The Redressal Methods In Consumer awareness is the act of collecting enough information
about the offerings they consume and using their consumer rights to protect themselves
against market exploitation.
Government intervention is required in the process or the redressal methods in consumer
awareness since it is a question of public welfare.
This procedure entails successfully educating a customer about their rights and obligations
for the sole purpose of ensuring their safety and protection from market abuse. The emphasis
is on making information and recourse alternatives readily available.

Importance of Consumer Awareness

Below listed are a few points that state the importance of redressal methods in consumer
awareness. The Redressal Methods In Consumer awareness:
1. Allows a consumer to achieve maximum satisfaction at the best price.
2. Protects consumers in a marketplace from all sorts of exploitation that the producers
and sellers might indulge in.
3. Protects a consumer from consuming large quantities of harmful products.
4. Motivates a consumer to save and not splurge.
5. Helps consumers solve problems regarding their purchases as they grow more aware
of redressal mechanisms.
6. Enables a society to grow healthily.

Flipkart Internet Pvt. Ltd. v. NCDRC

In Flipkart Internet Pvt. Ltd. v. NCDRC, 2021(4) SCC 394, the Supreme Court of India
addressed the issue of whether an e-commerce intermediary like Flipkart is liable for the
actions of sellers on its platform, particularly regarding intellectual property (IP)
infringement. The court held that intermediaries are not liable for the content or products
listed by third-party sellers unless they have actual knowledge of the infringement and fail to
take appropriate action.
Facts of the Case:
 The case involved a complaint alleging that Flipkart was facilitating the sale of
counterfeit products on its platform, violating the intellectual property rights of the
complainant.
 Flipkart argued that it is an intermediary and not liable for the actions of its sellers,
citing Section 79 of the Information Technology Act, 2000. This section provides
"safe harbor" protection to intermediaries, meaning they are not liable for the conduct
of third-party users unless they have actual knowledge of the infringing activity and
fail to take action.
Key Legal Issue:
 Whether an e-commerce intermediary like Flipkart is liable for the actions of sellers
on its platform, particularly in cases of IP infringement.
Supreme Court's Decision:
 The Supreme Court held that intermediaries like Flipkart are not liable for the actions
of sellers on their platform unless they have actual knowledge of the infringement and
fail to take reasonable action.
 The court clarified that intermediaries are not required to proactively monitor and
remove all infringing content from their platforms.
 However, if an intermediary becomes aware of infringing content and fails to take
down the material within a reasonable time frame, it can be held liable.
 The court also emphasized that intermediaries have a duty to cooperate with law
enforcement agencies and to cooperate in any legal proceedings relating to IP
infringement.
Significance of the Case:
 The judgment established a clear precedent regarding the liability of e-commerce
intermediaries for the actions of their sellers.
 It clarified the scope of "safe harbor" protection under Section 79 of the IT Act, 2000.
 The decision provides guidance to e-commerce platforms and other intermediaries on
their responsibilities in combating IP infringement and other illegal activities.
In essence, the court recognized that e-commerce intermediaries are not insurers of the
content listed on their platforms, but they have a responsibility to respond appropriately when
they become aware of infringement and to cooperate with law enforcement and legal
authorities.