Central Consumer Protection Authority (CCPA): Crackdown on Misleading Advertisements

Why in News ?

• The Central Consumer Protection Authority (CCPA) has taken a significant and strict action against misleading advertisements that deceive consumers. 
• The Authority imposed a penalty of ₹1 lakh each on Storia Foods & Beverages Pvt. Ltd. and Mrs. Bectors Food Specialities Ltd. (English Oven) for the misleading use of the term “100%” in the advertisement of their food products. 
• Both companies have also been directed to immediately remove such claims from their product packaging, websites, and all digital platforms. 
• The action was taken under the Consumer Protection Act, 2019 and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022. 

What Was the Misleading Advertisement ?

Storia Foods

• The company marketed its coconut water as “100% Natural Tender Coconut Water.” 
• However, investigations found that the product contained ingredients other than pure coconut water. 

English Oven

• The company advertised its bread as “100% Whole Wheat Atta Bread.” 
• Investigation revealed that the bread contained only 87% wheat flour, while the remaining portion consisted of other ingredients. 

What Did the CCPA Say ?

• The CCPA clarified that the term “100%” represents an exact and mathematical claim. 
• Companies cannot use it casually as a marketing slogan or promotional tagline. 
• If a product is advertised as 100% pure or 100% made from a particular ingredient, it must not contain even 1% of any other substance, such as water, additives, chemicals, or concentrates. 
• Any deviation from such a claim amounts to consumer deception and a misleading advertisement. 

Central Consumer Protection Authority (CCPA)

About CCPA

• The Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019. 
• The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986. 
• The Act was notified on 9 August 2019 and came into force on 20 July 2020. 
• Nodal Ministry: Ministry of Consumer Affairs, Food and Public Distribution. 

Composition

• The CCPA is headed by a Chief Commissioner. 
• It is assisted by two Commissioners : 
  • One Commissioner deals with matters related to Goods. 
  • The other Commissioner handles matters related to Services. 

Functions and Powers

• Protect, promote, and enforce the rights of consumers. 
• Prevent Unfair Trade Practices (UTPs). 
• Regulate and prohibit false and misleading advertisements. 
• Ensure that no person or entity publishes or endorses misleading advertisements. 
• Initiate class action proceedings in the interest of consumers. 
• Order : 
  • Recall of unsafe goods and services. 
  • Refunds to consumers. 
  • Cancellation of licenses where necessary. 
• Conduct inquiries and investigations through its Investigation Wing, headed by a Director General (DG). 
• Direct businesses to discontinue unfair trade practices. 
• Impose penalties and other punitive actions on violators. 
• Take necessary measures for consumer welfare and protection across the country.