Central Consumer Protection Authority (CCPA) and Regulation of E-Commerce

One of the most significant structural changes the Consumer Protection Act, 2019 introduced is the creation of the Central Consumer Protection Authority (CCPA) — a dedicated regulatory body with no direct equivalent under the 1986 Act. Its purpose is to protect, promote, and enforce the rights of consumers as a class, stepping in even where no individual complainant has come forward, which the older, one-complaint-at-a-time redressal-forum system was never designed to do.

The CCPA is headed by a Chief Commissioner, and carries out its investigative work through an Investigation Wing headed by a Director-General. It has both a head office and regional offices, letting it act across the country rather than only where a complaint happens to be filed.

The CCPA's powers are wide-ranging. It can inquire into or investigate violations of consumer rights or unfair trade practices — either suo motu (on its own initiative), on a complaint received, or on a reference made by the Central or a State Government. Where it finds a violation, it can order the recall of goods or the withdrawal of services that are dangerous, hazardous, or unsafe; direct a refund of the price paid by affected consumers; and direct the discontinuation of the unfair trade practice or the false or misleading advertisement in question.

The CCPA also has specific power over misleading advertisements: it can impose a penalty on the manufacturer or the endorser of a false or misleading advertisement, and — importantly — it can prohibit that endorser from making any endorsement of the same product or service for a period (up to one year for a first contravention, extendable up to three years for a subsequent one). This directly addresses the problem of celebrity or influencer endorsements of exaggerated or unverified product claims, a gap the 1986 Act had no real tool to address. …