Misleading Advertisements IAS Coaching

Source: PIB
GS II: Governance

Overview

1. News in Brief
2. Issue of Misleading Advertisements IAS Coaching
3. Violation of rights of consumers
4. Central Consumer Protection Authority (CCPA)

Why in the News?

Central Consumer Protection Authority (CCPA) issued 20 notices to IAS coaching institutes for misleading advertisements and imposed penalties on 8 such institutes

News in Brief

• The Department of Consumer Affairs is continuously working for consumer protection and empowerment of consumers by the enactment of progressive legislation.
• To modernise the framework governing consumer protection in the new era of globalization, technologies, e-commerce markets etc Consumer Protection Act, of 1986 was repealed and the Consumer Protection Act 2019 was enacted.
• The CCPA has issued 20 notices to IAS coaching institutes for misleading advertisements and imposed penalties on 8 such IAS coaching institutes.

Issue of Misleading Advertisements IAS Coaching

Under the Consumer Protection Act, 2019, a misleading advertisement about any product or service is defined as an advertisement, in which

1. Falsely describes such product or service
2. Gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service
3. Conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice
4. Deliberately conceals important information

Violation of rights of consumers

• Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) has been established to regulate matters relating to the
  • Violation of rights of consumers
  • Unfair trade practices
  • False or misleading advertisements which are prejudicial to the interests of public and consumers as a class.
• The CCPA has notified the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on 9th June, 2022.
• These guidelines inter-alia provide for
  • Conditions for an advertisement to be non-misleading and valid
  • Certain stipulations in respect of bait advertisements and free claim advertisements
  • Duties of manufacturer, service provider, advertiser and advertising agency.
• The CCPA has issued “Guidelines for Prevention and Regulation of Dark Patterns, 2023” on 30th November, 2023 for the prevention and regulation of dark patterns listing 13 specified dark patterns.

Central Consumer Protection Authority (CCPA)

• Regulatory authority set up under Section 10(1) of the Consumer Protection Act, 2019.
• Powers
  • It can inquire either on receipt of a complaint or suo moto or as directed by the Central Government.
  • The commission can direct to a trader or manufacturer or endorser or advertiser or publisher for wrong or misleading or prejudicial to consumers, and in such case impose penalties up to Rs 10 lakhs payable in cash.
  • Prevent the endorser of advertisement which is wrong or misleading.
• Composition
  • Chief Commissioner
  • Two Commissioners (One commissioner each will represent goods and services)

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