Context:

• Recently the Central Consumer Protection Authority (CCPA) warned all stakeholders that stringent action would be taken for endorsements of illegal activities, including betting and gambling.

Key Highlights of the Advisory issued by CCPA On Online Gambling

• Prohibition of Unlawful Advertisement: The advisory, in accordance with the Consumer Protection Act, 2019, has emphasized the prohibition of advertising, promotion, and endorsement of unlawful activities that are prohibited under various laws.
• Prohibition of Advertisements related to Betting and Gambling: Betting and gambling are strictly prohibited under the Public Gambling Act, 1867, and are considered illegal in the majority of regions across the country.
  • Despite this, online betting platforms and apps persist in advertising betting and gambling directly, as well as under the guise of gaming
• Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022: The advisory highlighted that the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, categorically prohibit advertisements of products or services prohibited under any prevailing law.
• Rigorous Scrutiny:  CCPA cautioned that any advertisement or endorsement of activities that are prohibited by the law, including but not limited to betting or gambling, would be subject to rigorous scrutiny.
• Penalty for Violators: If any violation of the guidelines is found, stringent measures, as per the Consumer Protection Act, 2019, will be initiated against (those) involved, including manufacturers, advertisers, publishers, intermediaries, social media platforms, endorsers.

About Central Consumer Protection Authority:

• Nodal Ministry: The Ministry of Consumer Affairs.
• Composition
• • It will have a Chief Commissioner as head, and only two other commissioners as members one of whom will deal with matters relating to goods while the other will look into cases relating to services.
  • The CCPA will have an Investigation Wing that will be headed by a Director General.
  • District Collectors too, will have the power to investigate complaints of violations of consumer rights, unfair trade practices, and false or misleading advertisements.
• Regulatory Body: Central Consumer Protection Authority is a regulatory body set up under Section 10(1) of the Consumer Protection Act, 2019, to handle matters affecting rights of consumers.
  • CCPA targets individuals or entities that follow improper trade practices or display inappropriate or wrong advertisements affecting public interest. 

Powers of Central Consumer Protection Authority:

• Power to Order Inquiry: CCPA can order inquiry, either on receipt of complaint or suo-moto or as directed by the Central Government, in case of violations of rights of consumers or in notice of trade practices which is unfair.
  • Central Consumer Protection Authority can order an investigation by the District Collector or by Director General if there is prima facie evidence of violations of rights of consumers or unfair trade practices.
• Power to Call the Entity: If an entity is following unfair trade practices or making any false or inaccurate advertisement, CCPA can call upon the entity and can direct them to produce any document or record to substantiate their claims.
• Power to withdraw  Services or Products: CCPA can direct recalling of any dangerous, hazardous or unsafe goods or withdrawal of similar services, along with refunding the funds.
• Registering of Complaints with relevant authorities: CCPA can help consumers to register complaints before the National Commission, the State Commission, or the District Commission, formed as per the Act.
• Discontinuing of Advertisements: CCPA can direct a producer or endorser or advertiser to discontinue advertisements which are wrong or misleading or prejudicial to consumers.
• Preventing Endorser of a Misleading Product: Central Consumer Protection Authority can prevent the endorser of a misleading product from endorsing any product or service for a time period ranging upto one year, and three years in case of contravention.

News Source: The Hindu