• UGI USER
  • Jun 14, 2024
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CCPA FINES EDTECH FIRM ₹3 LAKH FOR FALSE ADVERTISEMENTS

Why in the news?

  • The Central Consumer Protection Authority (CCPA) imposed a ₹3 lakh penalty on EduTap Learning Solutions for publishing false and misleading advertisements.
  • The ad falsely claimed 144 selections in the RBI Grade B exam 2023.
  • Action taken under Section 21, empowering CCPA to issue directives and impose penalties for false advertisements.
source:mawphor

About the Central Consumer Protection Authority (CCPA):

  • Established: 24th July 2020 under the Consumer Protection Act, 2019.
  • Objective: Promote, protect, and enforce consumer rights.
  • Composition: Chief Commissioner and two commissioners (goods and services).
  • Powers: Investigate violations, recall unsafe goods/services, stop unfair practices, penalize misleading ads.
  • Nodal Ministry: Ministry of Consumer Affairs, Food & Public Distribution.
What is the Consumer Protection Act, 2019?

  • The Consumer Protection Act, 2019 replaced the 1986 Act.
  • Effective from July 20, 2020.
  • Introduces enhanced consumer rights.
  • Establishes the Central Consumer Protection Authority (CCPA) to enforce consumer rights.

About Section 21: Powers of Central Authority:

  • Issue Directions: CCPA can order discontinuation or modification of false/misleading ads.
  • Penalties: Imposes fines up to ₹10 lakh; subsequent violations up to ₹50 lakh.