Central Consumer Protection Authority established with effect from today; Centre notifies

The Central Government, on July 23, 2020, notified the establishment of a Central Consumer Protection Authority with effect from July 24, 2020. It will be known as the Central Authority, which will regulate the matters relating to the violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and will also promote, protect and enforce the rights of consumers as a class. The provisions related to the Central Authority are envisaged under Chapter III of the Consumer Protection Act, 2019.

Now, let’s discuss some of the features of the Central Authority.

Composition

The following appointments shall be made by the Central Government:-

a) A Chief Commissioner, and

b) such number of other Commissioners as may be prescribed

Qualification and Recruitment

The Central Government may, by notification, make rules to provide for the qualifications for appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of the service of the Chief Commissioner and Commissioners of the Central Authority.

Experts, Professionals and other Employees

· The Central Government shall provide the Central Authority such number of officers and other employees as it considers necessary for the efficient performance of its functions under this Act.

· The Central Authority may engage such number of experts and professionals of integrity and ability, who have special knowledge and experience in the areas of consumer rights and welfare, consumer policy, law, medicine, food safety, health, engineering, product safety, commerce, economics, public affairs or administration, as it deems necessary to assist it in the discharge of its functions under this Act.

· The salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the Central Authority appointed under this Act shall be decided by the Central government..

Headquarter

The headquarters of the Central Authority shall be at New Delhi.

Powers and Functions of Central Authority

(1) The Central Authority shall—

a) protect, promote and enforce the rights of consumers as a class, and prevent violation of consumers rights under this Act;

b) prevent unfair trade practices and ensure that no person engages himself in unfair trade practices;

c) ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder;

d) ensure that no person takes part in the publication of any advertisement which is false or misleading.

2. The Central Authority may also exercise any of the following, if need be:-

a) inquire or cause an inquiry or investigation to be made into violations of consumer rights or unfair trade practices, either suo motu or on a complaint received or on the directions from the Central Government;

b) file complaints before the District Commission, the State Commission or the National Commission, as the case may be, under this Act;

c) intervene in any proceedings before the District Commission or the State Commission or the National Commission, as the case may be, in respect of any allegation of violation of consumer rights or unfair trade practices;

d) 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;

e) recommend adoption of international covenants and best international practices on consumer rights to ensure effective enforcement of consumer rights;

f) undertake and promote research in the field of consumer rights;

g) spread and promote awareness on consumer rights;

h) encourage non-Governmental organisations and other institutions working in the field of consumer rights to co-operate and work with consumer protection agencies;

i) mandate the use of unique and universal goods identifiers in such goods, as may be necessary, to prevent unfair trade practices and to protect consumers' interest;

j) issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services;

k) advise the Ministries and Departments of the Central and State Governments on consumer welfare measures;

l) issue necessary guidelines to prevent unfair trade practices and protect consumers' interest.

The notification dated 23.07.2020, reads as below:

“S.O.2422(E).—In exercise of the powers conferred by section 10 of the Consumer Protection Act, 2019 (35 of 2019)and with effect from the 24thday of July, 2020, the Central Government

hereby establishes the Central Consumer Protection Authority as a body corporate by the said name having perpetual succession and a common seal, with power, subject to the provisions of the Act and the rules and regulations made thereunder, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.

2. The Central Authority shall have its headquarter at New Delhi.”