CCPA issues 325 notices for violation of consumer rights, misleading ads; imposes penalties of Rs 1.19 crore

The Department of Consumer Affairs, Government of India, is actively working to safeguard consumer rights and empower individuals through the enactment of progressive legislations. In an effort to modernize the legal framework in light of globalization, technological advancements, and the rise of e-commerce, the Consumer Protection Act, 1986, has been repealed and replaced by the Consumer Protection Act, 2019.

One of the key areas covered by the new Act is the regulation of unfair trade practices. As defined under Section 2(47), these include deceptive practices such as false advertising, misleading product claims, and disparaging competitors. These provisions are aimed at promoting accountability and fairness in the marketplace, ensuring consumer protection in a rapidly evolving economy.

The new Act establishes a three-tier quasi-judicial mechanism at the District, State, and Central levels, known as Consumer Commissions, to protect consumer rights and provide fast and effective resolution of disputes. These commissions are empowered to offer specific reliefs and award compensation where necessary, addressing issues like unfair trade practices.

The Consumer Protection Act, 2019 also emphasizes swift justice, with a stipulation that every complaint should be resolved expeditiously. According to Section 38(7), complaints should generally be disposed of within three months, unless they require product analysis or testing, in which case the timeframe is extended to five months.

In addition to the fast-track process, the Act states that adjournments in consumer cases should only be granted in exceptional circumstances, ensuring quick resolutions. This provision is designed to prevent delays in the judicial process and improve consumer access to timely justice.

Section 2(28) specifically addresses "misleading advertisements," defining them as those that either falsely describe products or services, make unverified claims, or conceal important information. The Consumer Protection (E-commerce) Rules, 2020 were also introduced under the Act to regulate e-commerce platforms, mandating transparency and setting out guidelines for customer grievance redressal.

To further enhance consumer protection, the Central Consumer Protection Authority (CCPA) was established on July 24, 2020. The CCPA plays a crucial role in preventing consumer harm caused by unfair trade practices and misleading advertisements. Since its formation, the CCPA has issued 325 notices for violations, levying penalties totaling Rs. 1.19 crore.

In 2022, the CCPA issued "Guidelines for Prevention of Misleading Advertisements and Endorsements," which establish conditions for advertisements to be deemed non-misleading. These guidelines require due diligence from advertisers and endorse accurate representation in advertisements, ensuring that endorsements are based on genuine experience and information.

To combat environmental misrepresentation, the CCPA introduced the "Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims" in October 2024, mandating transparency in environmental claims. Similarly, the "Guidelines for Prevention of Misleading Advertisements in the Coaching Sector" were implemented in November 2024, aiming to curb exaggerated success rates and false claims in coaching institutes.

The CCPA's "Guidelines for Prevention and Regulation of Dark Patterns," issued in November 2023, address deceptive practices in e-commerce, such as misleading user interfaces and tricks that manipulate consumers into making unintended purchases.

Moreover, the Bureau of Indian Standards (BIS) introduced a framework on "Online Consumer Reviews" in November 2022, which sets principles for collecting, moderating, and publishing reviews to combat fake and deceptive online reviews.

The Department of Consumer Affairs continues to raise awareness through its "Jago Grahak Jago" campaign, a nationwide multimedia initiative. The campaign uses traditional media such as All India Radio and Doordarshan, as well as social media, to inform consumers about their rights, unfair trade practices, and the mechanisms available to seek redress. Additionally, the government is releasing grants to States and Union Territories to promote consumer awareness at the local level.

These concerted efforts reflect the government's commitment to safeguarding consumer rights, ensuring fairness, and holding businesses accountable in an increasingly complex marketplace.