Show cause notices issued to companies for misleading and misguiding advertisements during Covid-19 pandemic
Delhi, Jan 2
After its establishment, the Central Consumer Protection Authority has been taking proactive action for the protection of the interest and rights of the consumers. One of the functions of the CCPA envisaged in the Act is to 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.
Observing that several advertisements are being issued during the COVID-19 pandemic to mislead and misguide the consumers relating to several consumer goods/products, the CCPA has, suo-moto, issued show cause notices to companies in the sectors like water purifier, paints, floor cleaner, apparel, disinfectant, furniture etc. The action of CCPA will certainly deter the unscrupulous traders from launching misleading advertisements to exploit the sentiments of the consumers for cheap commercial profits.Notice has also been issued to Cab Aggregators for resorting to unfair trade practice with regard to refund of excess fare charged.
The CCPA will continue to work towards the protection of the interest and rights of the consumers. On analysis of the consumer grievances received in the National Consumer Helpline, the CCPA has recently taken up the matter of failed/cancelled transactions while using inter-banking services by the consumers like IMPS, UPI etc where money has not been refunded to the consumer or where the timeline for settlement of such claims has not been adhered to, with the sector regulator, the Reserve Bank of India with a view to protect the rights of the consumers.
The CCPA has also asked the Insurance Regulator, the IRDAI, to look into the delay in getting the claim amount by the consumers and take up the consumer grievances with the Insurance Companies to adhere to the time lines stipulated in the IRDAI Protection of Policyholders’ interest Regulations, 2017.
The Central Consumer Protection Authority has been established w.e.f.24th July, 2020 under section 10 of the Consumer Protection Act, 2019 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. It can conduct investigations into violation of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements.