CCPA issues show cause notices to firms for misleading ads during COVID-19 pandemic

The Central Consumer Protection Authority (CCPA) on January 1, 2021, issued show cause notices to firms for misleading and misguiding advertisements during the COVID-19 pandemic.

The show cause notices have been issued to companies in the sectors like water purifier, paints, floor cleaner, apparel, disinfectant, furniture etc, after observing that several advertisements being run during the COVID-19 pandemic are misleading and misguiding the consumers, the Ministry of Consumer Affairs, Food & Public Distribution said in its statement.

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"The action of the 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 ministry said.

The CCPA has sought the RBI's intervention on banks delaying refund in case of failed transactions with a view to protect the rights of the consumers. Also, insurance regulator IRDAI has been asked to look into the delay in getting the claim amount by 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 RBI, with a view to protect the rights of the consumers," the statement said.

Established on July 24, 2020, under section 10 of the Consumer Protection Act, 2019, the CCPA aims 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.

The government body can also probe into violation of consumer rights and institute complaints, 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.