Central Consumer Protection Authority issues notices to e-commerce entities

Why is in news? Central Consumer Protection Authority issues notices to e-commerce entities for selling toys that violate compulsory BIS Standards

The Central Consumer Protection Authority (CCPA) issued notices to e-commerce entities, Amazon, Flipkart and Snapdeal for sale of toys in violation to standards directed for compulsory use by the Central Government.

CCPA has sought response from the e-commerce entities within 7 days from issuance of notice, failing which necessary action may be initiated against them under the provisions of the Consumer Protection Act, 2019.

CCPA has also written to Director General, Bureau of Indian Standards (BIS) to take immediate cognizance of the matter and take necessary action.

CCPA has expanded the country-wide campaign to prevent sale of spurious and counterfeit goods that violate Quality Control Orders (QCOs) published by the Central Government to include consumer durables such as electric immersion water heaters, electric iron, domestic gas stove, microwave oven, sewing machines etc.

In this regard, CCPA has written to District Collectors across India to investigate unfair trade practices and violation of consumer rights concerning manufacture or sale of such goods and submit Action Taken Report to CCPA.

Under Section 2(10) the Consumer Protection Act, 2019, "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression "defective" shall be construed accordingly. Thus, toys which do not conform to the compulsory standards are liable to held ‘defective’ under the Act.

The Consumer Protection (E-commerce) Rules, 2020 stipulate that no e-commerce entity shall adopt any unfair trade practice, whether the in course of business on its platform or otherwise.

Further, Section 17 of the BIS Act, 2016 prohibits any person to manufacture, import, distribute, sell, hire, lease, store or exhibit for sale any such goods or article for which direction (QCO) of compulsory use of Standard Mark has been published by the Central Government under Section 16(1).

Further, Section 29 (3) and (4), stipulate the penalty for contravention of Section 17 and designate it as a cognizable offence.

Central Consumer Protection Authority:

Central Consumer Protection Authority is a regulatory authority set up under Section 10(1) of the Consumer Protection Act, 2019.

It aims to protect the rights of the consumer by cracking down on unfair trade practices, and false and misleading advertisements that are detrimental to the interests of the public and consumers.

Headquarter: New Delhi

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.

Objectives:

To promote, protect and enforce the rights of consumers as a class.

To conduct investigations into violation of consumer rights and institute complaints/prosecution.

To order the recall of unsafe goods and services, discontinuation of unfair trade practices and misleading advertisements.

To impose penalties on manufacturers/endorsers/publishers of misleading advertisements.