Central Consumer Protection Authority (CCPA): Functions, Powers, Role, Action Against Misleading Advertisements

Central Consumer Protection Authority (CCPA), formed under the Consumer Protection Act, 2019, safeguards consumer rights, regulates misleading ads, and ensures product quality. It issued Coaching Guidelines 2024, fined institutes for false claims, and promotes transparency, awareness, and quick redressal.

Central Consumer Protection Authority (CCPA): Functions, Powers, Role, Action Against Misleading Advertisements

Central Consumer Protection Authority (CCPA) is a very important body in India. It was formed to make sure that the rights of consumers are protected. It also stops companies and service providers from cheating people through unfair trade practices or false advertisements. The authority came into effect on 24 July 2020 under the Consumer Protection Act, 2019. The authority is led by a Chief Commissioner, Smt. Nidhi Khare holds this position. Since then, it has taken many strict steps against misleading claims in different sectors, including coaching centers. 

What is Central Consumer Protection Authority?

Central Consumer Protection Authority is a government body created under the Consumer Protection Act, 2019. Its main job is to protect, promote, and enforce the rights of consumers as a class. It makes sure that no business or individual misleads the public through unfair practices.

CCPA Full Form

CCPA full form is Central Consumer Protection Authority. It works under the Ministry of Consumer Affairs, Food, and Public Distribution. This tells us that the Central Consumer Protection Authority, under which ministry falls, is the Ministry of Consumer Affairs.

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Objectives of CCPA Under Consumer Protection Act 2019

Consumer Protection Act 2019 clearly mentions the objectives of CCPA. Each of these objectives is designed to safeguard consumers in a simple but effective way.

  • Protect the Right of Consumers: Central Consumer Protection Authority safeguards the rights of consumers from being misled by false promises, defective products, or unsafe services. It ensures that consumers can demand safety, quality, and honesty in the market.
  • Promote Consumer Awareness: CCPA promotes consumer awareness throughout India. Many people are still unaware of their rights, so CCPA runs campaigns and programs to educate the public. This helps people make better decisions when they buy goods or services.
  • Ensure Quality of Products: CCPA ensures that all products and services sold to consumers meet proper standards of quality. By setting safety rules and checking violations, the CCPA makes sure that people are not exposed to harmful goods or dishonest services.
  • Quick Solution of Complaint: CCPA makes sure that any grievance or complaint filed by a consumer is resolved quickly. Speedy redressal of complaints reduces the burden on courts and ensures that consumers receive justice without delay.
  • Central Authority: CCPA acts as a central authority that protects consumers as a group. This means that instead of dealing only with individual cases, the CCPA also works to prevent widespread harm caused to large groups of consumers at the same time.

Powers of Central Consumer Protection Authority

Powers of Central Consumer Protection Authority are defined under the law. These powers allow the authority to stop violations, investigate cases, and issue strict directions when needed.

Powers of Central Consumer Protection Authority
POWERS OF CENTRAL CONSUMER PROTECTION AUTHORITY Description
Power to Investigate CCPA can start inquiries and full investigations into violations of consumer rights, misleading advertisements, or unfair trade practices.
Power to File Cases It can file complaints before Consumer Commissions to ensure proper legal action is taken against wrongdoers.
Power to Issue Safety Notices The authority has the power to alert and inform consumers about hazardous or unsafe goods and services in the market.
Power to Order Recall and Refund If a product is unsafe or defective, CCPA can order businesses to recall the product and refund the consumers’ money.
Power to Stop Unfair Practices CCPA can direct companies to immediately stop unfair trade practices that harm consumers.
Power to Regulate Advertisements It can stop or modify misleading advertisements and impose penalties on companies or endorsers responsible for them.

What is the Role of the Central Consumer Protection Authority CCPA?

Role of the Central Consumer Protection Authority (CCPA) goes beyond just punishing offenders. It also includes prevention, awareness, and policy development to protect consumers in a better way.

Role of Central Consumer Protection Authority
ROLE OF CCPA Explanation
Consumer Protection The CCPA ensures that every consumer in India is given fair treatment by businesses. It protects consumers against fraud, defective goods, and cheating.
Enforcement of Law The authority ensures that the provisions of the Consumer Protection Act 2019 are followed strictly by all businesses and service providers.
Promotion of Awareness CCPA organizes programs, campaigns, and notices to educate consumers about their rights and the precautions they must take.
Policy Recommendations The authority advises central and state governments on new measures and welfare programs for consumers.
Research and Development It supports research studies on consumer behavior, unfair practices, and legal mechanisms to strengthen protection.

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CCPA Action Against Misleading Advertisement

One of the major duties of the CCPA is to deal with misleading advertisements. False ads influence consumers to make wrong choices. To prevent this, the CCPA has strict powers to take action.

CCPA Action Against Misleading Advertisement
CCPA ACTION AGAINST MISLEADING ADVERTISEMENT Details
Identification of False Ads CCPA carefully reviews claims made in advertisements to check if they are untrue, exaggerated, or misleading.
Penalties and Fines When ads are found to be misleading, the CCPA imposes financial penalties on the companies responsible for them.
Directions to Modify or Stop The authority orders companies to either withdraw the false advertisement or make necessary corrections immediately.
Responsibility of Endorsers Celebrities, influencers, and endorsers promoting false claims are held equally responsible and penalized under the Act.

CCPA Coaching Guidelines 2024

CCPA realized that many coaching institutes were misusing advertisements to attract students. To stop this, it issued the CCPA Coaching Guidelines 2024. These rules apply to all coaching centers across India and protect students and parents from being misled.

CCPA Coaching Guidelines 2024
CCPA COACHING GUIDELINES 2024 Details
Ban on False Success Claims Coaching centers are not allowed to claim fake numbers of student selections or exaggerated results.
Use of Student Information Coaching centers cannot use students’ photos, names, or testimonials without their written permission, and only after genuine success.
Transparency in Information Complete details about course duration, faculty qualification, fees, and refund policies must be clearly disclosed to students.
No False Urgency Coaching institutes cannot create fake scarcity by saying that seats are limited or demand is very high.
Accountability of Endorsers Any endorser promoting a coaching institute must verify the accuracy of claims before advertising them.

Recent CCPA Action Against Coaching Advertisement

Central Consumer Protection Authority has taken some actions against the coaching centers in recent years. A strong example is the penalty against one of the reputed Delhi-based institutes in October 2025. The institute has claimed that more than 216 students have cleared the UPSC exam because of its courses. But the investigation showed that most of these students only joined a free interview guidance program and did not take the main courses. This was considered a false and misleading advertisement. For this, the CCPA has imposed a fine of ₹5 lakh on the institute.

This was not the first time. In September 2024, the same institute was fined ₹3 lakh for similar false claims. In 2024, the CCPA also acted against 45 coaching centers across India, imposing penalties worth more than ₹54 lakh. These steps prove that the CCPA action against coaching advertisement is strong and effective in protecting the students.

Importance of CCPA for Consumers in India

Central Consumer Protection Authority plays a very important role in ensuring fairness, transparency, and safety in the Indian marketplace. Its actions directly affect people in their daily lives and protect them from unfair trade practices.

Importance of CCPA for Consumers in India
IMPORTANCE OF CCPA Explanation
Protection Against Fraud and Cheating The CCPA gives strong protection to consumers against fraud, cheating, and the sale of harmful goods. Without such a regulator, many companies and businesses could continue to mislead people without any fear of punishment. This safeguard helps consumers make purchases with confidence.
Ensuring Safety and Quality The authority makes sure that goods and services being sold in the market are safe and of the right quality. This reduces the risk of people receiving defective or harmful products. It also builds a culture where businesses are expected to maintain high standards.
Promoting Transparency By holding businesses accountable for false and misleading advertisements, the CCPA ensures that companies are honest in their claims. This promotes transparency and creates a healthier business environment where people can rely on the information given to them.
Increasing Consumer Awareness Through guidelines, notices, and public awareness campaigns, the CCPA educates consumers about their rights and responsibilities. Awareness helps people make better decisions while purchasing and prevents them from falling into traps set by dishonest sellers.
Building Consumer Confidence The authority provides quick action against violations, which gives people confidence that they will be supported if they are wronged. Knowing that there is a strong body like the CCPA encourages consumers to come forward and report unfair practices without hesitation.

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Challenges and Criticism of CCPA

Even though CCPA has achieved many successes, CCPA also faces some challenges and criticisms.

Challenges and Criticism of CCPA
Challenges and Criticism Explanation
Delay in Cases Consumer disputes can still take time to settle, even though the Act aims for speedy redressal.
Burden on Consumers Consumers often need to provide proof of defect or unfair practice, which can be difficult and expensive.
Exclusion of Healthcare The decision to exclude healthcare services from the scope of the Act has been criticized by many experts.
Federal Concerns Too much control of the central government over appointments in consumer bodies raises concerns about federal balance.
Lack of Awareness A large number of consumers in rural and semi-urban areas are still not aware of their rights under the Act.

Central Consumer Protection Authority is a powerful body that was created under the Consumer Protection Act, 2019. It plays an important role in protecting, promoting, and enforcing consumer rights. The authority has special powers to investigate, penalize, and stop unfair trade practices. Its recent guidelines, especially the CCPA Coaching Guidelines 2024, have made education advertisements more transparent. The strong CCPA action against misleading advertisement shows its determination to protect people from false claims. While challenges remain, the importance of CCPA in India is clear. It is a strong protector for consumers in a fast-changing market.

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Frequently Asked Questions

Central Consumer Protection Authority under which ministry?

The CCPA works under the Ministry of Consumer Affairs, Food and Public Distribution.

Central Consumer Protection Authority (CCPA): Functions, Powers, Role, Action Against Misleading Advertisements

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UDAAN PRELIMS WALLAH
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Designed as per recent trends of Prelims questions
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