Product Recall Provisions**

Power of CCPA to order product recall (Section 18(2)(m), Section 94)

The Consumer Protection Act, 2019, introduces a significant mechanism for protecting consumers from unsafe products: the power vested in the Central Consumer Protection Authority (CCPA) to order the **recall** of goods or withdrawal of services that are dangerous, hazardous, or unsafe.

Power of CCPA to Order Recall (Section 21(1)(a) and Section 18):

The power to direct product recall is primarily derived from **Section 21(1)(a)** of the Act, which lists the powers of the Central Authority (CCPA) after conducting an investigation. Section 21(1) states that where the Central Authority is satisfied after investigation that any advertisement is misleading and prejudicial to the interest of any consumer or is in contravention of the rights of consumers, or there is a violation of consumer rights or unfair trade practice or misleading advertisement, the Central Authority may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser or publisher, as the case may be.

Among the directions that the CCPA may issue under Section 21(1), **Section 21(1)(a)** specifically includes directions for the **recall of goods or withdrawal of services which are dangerous, hazardous or unsafe**.

This power is a key part of the CCPA's broader function, listed in **Section 18(1)(a)**, to **protect, promote and enforce the rights of consumers as a class, and prevent violation of consumer rights and unfair trade practices**. Taking action against unsafe goods and services, including directing their recall, directly supports this function.

Note: The prompt incorrectly refers to Section 94. Section 94 of the Act pertains to the power of the Central Government to make rules. The power to order product recall rests with the CCPA primarily under Section 21, supported by its functions outlined in Section 18.

Grounds for Recall:

The CCPA can order a recall if goods or services are found to be:

• **Dangerous:** Likely to cause physical injury or harm.
• **Hazardous:** Involving inherent risk or danger.
• **Unsafe:** Not meeting safety standards or posing risk during normal use.

This determination is made by the CCPA usually after conducting an inquiry or investigation under Section 19 or Section 20 of the Act, either based on complaints or suo motu.

The power of recall is a proactive measure that the CCPA can employ to remove unsafe products from the market, preventing potential harm to a large number of consumers as a class, rather than waiting for individual consumers to suffer harm and file complaints.

Procedure for Product Recall

Product recall can be initiated either voluntarily by the manufacturer/seller/service provider or mandated by an order from the Central Consumer Protection Authority (CCPA). The procedure varies depending on who initiates the recall.

Mandatory Recall by CCPA:

The procedure when the CCPA orders a recall involves the following steps:

• **Investigation:** The CCPA conducts an inquiry or investigation into potential violation of consumer rights or unfair trade practices concerning specific goods or services, often prompted by complaints, reports, or its own assessment of market conditions. This investigation aims to determine if the goods/services are indeed dangerous, hazardous, or unsafe.
• **Issuance of Direction (Section 21(1)(a)):** If, after investigation, the CCPA is satisfied that the goods or services are dangerous, hazardous, or unsafe, it issues a formal **direction or order** to the concerned manufacturer, seller, service provider, or other party responsible for placing the product/service in the market, directing them to recall the goods or withdraw the services.
• **Notification and Action Plan:** The direction usually includes requirements for the company to notify consumers about the recall, provide a plan for how the recall will be executed (e.g., how products will be collected, how refunds or replacements will be provided), and timelines for completing the process.
• **Monitoring:** The CCPA monitors the implementation of the recall order to ensure that the company complies with the directions and the unsafe products/services are effectively removed from the market.
• **Public Notice:** The CCPA may also issue a public notice to alert consumers about the unsafe goods/services and the recall order.

Voluntary Recall:

Ideally, manufacturers or service providers should initiate a recall voluntarily if they discover that their product/service is unsafe or defective in a manner that could cause harm, even if not mandated by the CCPA. While the Act doesn't lay down a detailed procedure for voluntary recall, industry best practices and related sector-specific regulations (like for automobiles, food, pharmaceuticals) often guide this process.

• **Notification by manufacturer/service provider:** Upon discovering a significant safety issue or defect, the manufacturer/service provider initiates a voluntary recall. This involves stopping further sale/distribution and developing a plan for recovery or rectification of affected products/services already in the market.
• **Public Communication:** The company publicly announces the recall through advertisements, press releases, direct communication to affected customers, etc., explaining the risk, identifying the affected products/services, and providing instructions on what consumers should do.
• **Intimation to CCPA:** It is prudent and often required by rules or guidelines for the company to **intimate the CCPA** (and other relevant sectoral regulators like FSSAI, Automotive Research Association of India - ARAI, etc.) about the voluntary recall being undertaken. This allows the CCPA to be aware of the issue and monitor the effectiveness of the voluntary action. While the Act doesn't have a specific standalone section mandating intimation for *all* voluntary recalls, the spirit of the law and industry practice suggest this as a necessary step, and the CCPA can always investigate if the voluntary action is insufficient.
• **Execution and Monitoring:** The company executes the recall plan (e.g., collecting products, repairing, replacing, refunding) and monitors the progress. The CCPA might also monitor the voluntary recall process.

Whether mandatory or voluntary, the aim of a product recall is to protect consumers from unsafe products or services that have already entered the market, preventing injuries, illnesses, or property damage.

Liability of Manufacturer for non-recall

Failure to comply with a mandatory product recall order issued by the Central Consumer Protection Authority (CCPA) is a serious matter under the Consumer Protection Act, 2019, and can lead to significant consequences for the defaulting party, particularly the manufacturer.

Consequences of Non-Compliance with CCPA Recall Order:

While there is no single, dedicated section in the Act titled "Penalty for non-recall" akin to Section 72 for non-compliance with Consumer Commission orders, the failure to comply with a lawful direction of the CCPA, such as a recall order under Section 21(1)(a), can attract liability through various legal avenues:

• **Continued Violation of Consumer Rights/Unfair Trade Practice:** By failing to recall dangerous, hazardous, or unsafe goods as directed, the manufacturer (or other responsible party) continues to violate the consumer's right to safety and potentially engages in an unfair trade practice by allowing unsafe products to remain in circulation.
• **Action by CCPA (Section 21 & 18):** The CCPA can take further action against the defaulting party. This might involve issuing more stringent directions under Section 21(1)(e) to ensure consumer interest is protected. The CCPA can also file a complaint with the appropriate Consumer Commission (District, State, or National) under Section 18(1)(f) seeking specific orders like:
  • Directing the manufacturer to issue refunds or provide replacements to all affected consumers.
  • Directing the manufacturer to pay compensation to consumers who have already suffered harm.
  • Directing the manufacturer to take specific steps for safe disposal of the recalled products.
  If the manufacturer fails to comply with such an order passed by the Consumer Commission, they would then become liable for the severe penalties prescribed under **Section 72** for non-compliance with Commission orders (imprisonment from one month to three years, and/or fine from ₹25,000 to ₹1 Lakh).
• **Penalties for Misleading Advertisements (Section 21 & 89):** If the failure to recall is linked to previous misleading advertisements about the product's safety, the manufacturer/endorser could face penalties under Section 21 (monetary fines up to ₹50 Lakhs and prohibition on endorsement) and potentially criminal prosecution under **Section 89** (imprisonment up to two years and fine up to ₹10 Lakhs).
• **Criminal Liability for Product Tampering (Section 88):** If the product's unsafety is due to tampering, and the manufacturer fails to recall despite knowledge, potentially allowing tampered products that cause injury or death to remain in circulation, they could face severe criminal penalties under **Section 88** (imprisonment ranging from up to two years to life imprisonment, and fines ranging from ₹25,000 to ₹25 Lakhs or more, depending on the harm caused). While Section 88 is about tampering itself, failure to recall a known tampered product exacerbates the offence.
• **General Legal Consequences:** Failure to comply with a lawful direction of a statutory authority like the CCPA can also have other legal ramifications under general administrative law principles or potentially attract other penal provisions depending on the specific nature of the non-compliance and the harm caused.

In summary, a manufacturer's failure to comply with a CCPA recall order, while not having a single, simple penalty listed in one section, can lead to a combination of severe consequences, including further directions from CCPA, potential civil action through Consumer Commissions attracting Section 72 penalties for non-compliance of Commission orders, and potential criminal liabilities under sections related to product tampering or misleading safety claims, depending on the specifics of the case.