The Central Consumer Protection Authority (CCPA) is a regulatory body established as an institution under Section 10(1) of the Consumer Protection Act, 2019 (CPA, 2019). It was created to promote, protect, and enforce the rights of consumers as a class. The CCPA was established in 2020 and came into force on July 24, 2020, as a key feature of the CPA, 2019, which replaced the earlier Consumer Protection Act, 1986. The need for the CCPA arose to address modern consumer issues like misleading advertisements and e-commerce, which were not adequately covered by the previous law.
The CCPA works by having the power to inquire or investigate matters relating to violations of consumer rights or unfair trade practices suo motu (on its own initiative), on a complaint, or on a direction from the Central Government. Its key mechanisms include the power to order the recall of unsafe goods or services and the discontinuation of unfair trade practices. Crucially, the CCPA can impose a penalty up to ₹10 lakh on manufacturers or endorsers for false or misleading advertisements. The Authority is headed by a Chief Commissioner and works under the administrative control of the Ministry of Consumer Affairs. It connects directly to the Consumer Disputes Redressal Commissions (CDRCs), which are set up at the district, state, and national levels, as the CCPA can engage in consumer advocacy and register complaints before them. The new framework, including the CCPA, incorporated additional concerns by treating misleading advertisements and providing wrong information regarding quality or quantity of goods as an offence.