Establishment and Powers of CCPA**

Establishment of CCPA (Section 10)

The Consumer Protection Act, 2019, brought about a significant institutional change by providing for the establishment of a central regulatory authority dedicated to protecting and enforcing consumer rights as a class. This body is the **Central Consumer Protection Authority (CCPA)**.

As per **Section 10(1)** of the Consumer Protection Act, 2019, the Central Government shall, by notification, establish a Central Consumer Protection Authority to be known as the Central Authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class.

Purpose: To promote, protect and enforce consumer rights

The primary purpose and mandate of the CCPA, as clearly stated in Section 10(1), is to **promote, protect and enforce the rights of consumers as a class**. This is a crucial distinction from the consumer dispute redressal agencies (District, State, National Commissions) which primarily deal with individual consumer disputes. The CCPA is designed to take action on issues that affect a large number of consumers or the public interest, rather than just a single complainant.

The CCPA is a **regulatory body**, vested with executive powers to intervene, investigate, and take enforcement action against violations of consumer rights and unfair trade practices. Its establishment addresses a long-felt need for a dedicated central authority with proactive powers, unlike the previous regime where enforcement was largely dependent on individual consumer complaints before the quasi-judicial forums.

Key Areas of Focus for CCPA:

Violation of rights of consumers.
Unfair trade practices.
False or misleading advertisements.

The CCPA is intended to be a deterrent against businesses engaging in practices that harm consumers collectively.

Composition of CCPA (Section 10(2)):

The Central Authority shall consist of a **Chief Commissioner** and such number of other Commissioners as may be prescribed, to be appointed by the Central Government. The qualifications, method of recruitment, terms and conditions of service, etc., are prescribed by rules.

The establishment of the CCPA significantly strengthens the consumer protection framework in India by introducing a proactive regulatory mechanism alongside the existing reactive redressal system.

Powers and Functions of CCPA (Section 18)

**Section 18** of the Consumer Protection Act, 2019, elaborates on the general powers and functions of the Central Consumer Protection Authority (CCPA). These powers enable the CCPA to effectively carry out its mandate of promoting, protecting, and enforcing consumer rights as a class.

As per **Section 18(1)**, the Central Authority shall have the following powers and functions, namely:—

Inquiry into consumer complaints

The CCPA has the power to **inquire or cause to be inquired into violations of consumer rights or unfair trade practices suo motu or on a complaint received from any person** (Section 18(1)(a)). This means the CCPA does not have to wait for a direction from a court or government body; it can initiate investigations on its own if it has reason to believe that consumer rights are being violated on a large scale or unfair trade practices are prevalent. It can also act upon complaints received from individual consumers, consumer associations, or other stakeholders.

Unfair Trade Practices investigation

A key function of the CCPA is to conduct **investigations into violations of consumer rights and unfair trade practices** (Section 18(1)(a)). This is supported by the detailed investigation powers provided under Section 20 of the Act. The CCPA can investigate practices such as misleading advertisements, pyramid schemes, refusal to accept goods returned within a specified time, etc., when these affect or are likely to affect consumers as a class.

Issuance of directions to recall goods

As discussed earlier, the CCPA has the crucial power to issue directions for the **recall of goods or withdrawal of services which are dangerous, hazardous or unsafe** (Section 18(1)(a) read with Section 21(1)(a)). This is a preventive measure aimed at removing unsafe products from the market quickly to prevent harm to consumers.

Imposition of penalties for misleading advertisements

Combating misleading advertisements is a major focus. The CCPA has the power to issue directions and impose penalties on manufacturers, endorsers, and publishers of misleading advertisements (Section 18(1)(a) read with Section 21). This includes directing discontinuation or modification of ads and imposing significant monetary penalties (up to ₹50 Lakhs) and prohibition of endorsements (up to 3 years) as detailed in Section 21.

Issuance of guidelines and advisories

The CCPA plays a proactive role in guiding consumers and businesses. Its functions include:

Issuing **safety notices** to alert consumers about dangerous goods or services (Section 18(1)(g)).
Issuing **guidelines** to prevent unfair trade practices and protect consumer interests (Section 18(1)(j)). These guidelines, such as those for prevention of unfair practices in e-commerce or against dark patterns, provide clarity to businesses on expected standards of conduct.
Promoting awareness about consumer rights through media and other means (Section 18(1)(b)).

These guidelines and advisories contribute to creating a fairer marketplace and empowering consumers through information.

Other Powers and Functions (Illustrative):

Filing complaints before the National Commission (Section 18(1)(f)).
Recommending to the Central Government the execution of international treaties or agreements relating to consumer rights (Section 18(1)(k)).
Promoting research in the field of consumer rights (Section 18(1)(l)).
Making regulations (with the approval of the Central Government) for the functioning of the Central Authority (Section 18(2)).

The comprehensive set of powers and functions enables the CCPA to act as a robust regulator, proactively addressing systemic issues affecting consumer rights and ensuring market fairness.

Investigation Powers of CCPA

To effectively perform its functions of inquiring into violations and preventing unfair practices, the Central Consumer Protection Authority (CCPA) is vested with significant investigation powers. These powers are detailed in **Section 20** and **Section 22** of the Consumer Protection Act, 2019.

Power to Investigate (Section 20):

As per **Section 20(1)**, where the Central Authority (CCPA) is satisfied on the basis of a complaint received or suo motu that there exists a prima facie case of violation of consumer rights or unfair trade practice or false or misleading advertisement, as the case may be, which is prejudicial to the public interest or interests of consumers as a class, it may direct a **Director General** appointed under the Act or a **District Collector** to cause an investigation to be made.

Process of Investigation:

**Prima Facie Case:** The CCPA first assesses if there is enough initial evidence to suggest a violation or unfair practice affecting consumers generally.
**Direction to Investigate:** If a prima facie case exists, the CCPA directs its investigation arm (Director General) or a District Collector to conduct the investigation.
**Scope of Investigation:** The investigation involves gathering evidence, examining records, questioning persons, and collecting other relevant information to ascertain the facts and establish the violation.
**Report Submission:** The investigating authority submits a report of its findings to the CCPA.

Powers during Investigation (Section 22):

For the purpose of conducting an investigation under Section 20, the Director General or the District Collector, as the case may be, has wide-ranging powers, including powers of a Civil Court:

**Summoning and Enforcing Attendance:** The power to summon and enforce the attendance of any person and examine him on oath.
**Requiring Discovery and Production of Documents:** The power to require the discovery and production of any document or other material object which may be useful for the investigation.
**Receiving Evidence on Affidavits:** The power to receive evidence on affidavits.
**Issuing Commissions for Examination:** The power to issue commissions for the examination of witnesses or documents.
**Any Other Matter:** Any other matter as may be prescribed.

These powers ensure that the investigating authority can compel cooperation from businesses and individuals to gather necessary evidence for the investigation.

Power of Search and Seizure (Section 22(2) & 22(3)):

Section 22 also grants powers of search and seizure:

If the Director General or the District Collector has reason to believe that any person has contravened any provisions of the Act or rules made thereunder, they may require such person to furnish any information or document.
If they are satisfied that failure to furnish information or document would be detrimental to the interests of consumers, they may, with the **prior permission of the Chief Commissioner** of the CCPA, carry out search and seizure operations.
They can enter any premise, search for, and seize any document, record, or article that may provide evidence of contravention.

These search and seizure powers are significant tools for collecting evidence, especially when a business might not cooperate voluntarily.

The investigation powers enable the CCPA to effectively gather information and evidence to determine if violations of consumer rights or unfair trade practices have occurred or are occurring on a scale that warrants action to protect consumers as a class. Based on the investigation findings, the CCPA can then exercise its powers under Section 21 (like issuing directions or imposing penalties) or file complaints with the consumer forums or Magistrate.