Central Consumer Protection Authority
The Central Consumer Protection Authority (CCPA) is a statutory regulatory body established by the Government of India under Section 10 of the Consumer Protection Act, 2019, operational since 20 July 2020, with the primary mandate to protect, promote, and enforce consumer rights as a class.[1] Headquartered in New Delhi under the Department of Consumer Affairs, it focuses on systemic violations including unfair trade practices, misleading advertisements, and endorsements that deceive the public, distinguishing it from individual grievance redressal forums by emphasizing class-wide protections and preventive measures.[1] The CCPA's powers encompass inquiring into and investigating alleged violations through its Director General's office, directing product recalls, refunds, or discontinuation of goods and services, and imposing penalties—such as up to ₹10 lakh for subsequent misleading ad offenses or ₹50 lakh where profit is involved.[1] It can also issue safety notices, recommend legislative guidelines to curb unfair practices like dark patterns in digital interfaces, and file class-action suits on behalf of affected consumers, while advising the central government on policy to enhance consumer welfare and awareness.[1] These functions enable proactive regulation, particularly in e-commerce and advertising sectors prone to opacity and deception.[1] Notable enforcement includes facilitating ₹1,454 crore in refunds to consumers from online travel platforms for COVID-19-related cancellations and delisting over 13,000 unsafe car seat belt alarm stoppers from e-commerce sites in 2023-24.[2] The authority issued 99 notices across industries, imposed penalties totaling ₹30.5 lakh (with ₹29.5 lakh recovered), including ₹10 lakh on BYJU's IAS for misleading claims, and notified guidelines against manipulative online practices.[2] While these actions demonstrate initial efficacy in accountability, challenges persist, such as limited resources, low public awareness, and judicial appeals delaying outcomes, alongside critiques of potential overreach in quasi-adjudicatory roles requiring judicial oversight to prevent arbitrary decisions.[2][3]Legal Foundation and Establishment
Historical Background
The Consumer Protection Act, 1986, marked the foundational modern legislation for safeguarding consumer rights in India, establishing a three-tier quasi-judicial redressal system—district, state, and national commissions—to address individual grievances related to defective goods, deficient services, and unfair practices, while emphasizing speedy and inexpensive resolution without stringent procedural formalities.[4] However, this framework primarily reactive and complaint-driven, lacked a centralized regulatory authority capable of proactively tackling systemic issues such as widespread misleading advertisements, unfair trade practices, or violations impacting consumers collectively, particularly amid post-liberalization economic growth, rising e-commerce, and direct-selling models that amplified risks of consumer exploitation.[5] Recognizing these deficiencies, the Government of India introduced the Consumer Protection Bill, 2018, in the Lok Sabha on January 5, 2018, aiming to overhaul the 1986 Act by incorporating provisions for a dedicated Central Consumer Protection Authority (CCPA) to regulate matters relating to consumer rights violations, investigate contraventions, and issue safety notices or guidelines on emerging concerns like product liability and endorsement disclosures.[6] The Bill was passed by the Lok Sabha on December 20, 2018, and by the Rajya Sabha on August 6, 2019, following deliberations on enhancing enforcement amid criticisms of the prior law's inadequacy in handling class-action suits and digital marketplace abuses.[7] It received presidential assent on August 9, 2019, thereby enacting the Consumer Protection Act, 2019, which explicitly mandated the CCPA's creation under Section 10 to promote, protect, and enforce consumer interests as a class, shifting from a purely adjudicatory to a regulatory paradigm.[8] The Act entered into force on July 20, 2020, with the CCPA formally established with effect from July 24, 2020, headquartered under the Department of Consumer Affairs and initially led by the Secretary of the department as interim chief commissioner, marking a pivotal evolution in India's consumer protection regime toward preventive oversight and penal deterrence for endorsers, manufacturers, and sellers engaging in deceptive practices.[9][1] This development addressed long-standing calls for stronger institutional mechanisms, building on incremental amendments to the 1986 Act—such as those in 2002 and 2011 that raised pecuniary limits and introduced mediation—but ultimately replacing it to align with contemporary market dynamics including online transactions and consumer awareness campaigns.[10]Objectives and Mandate
The Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019, which came into force on July 20, 2020, with operational commencement on July 24, 2020, to regulate violations of consumer rights, unfair trade practices, and misleading advertisements affecting consumers as a class.[11][9] Its core objective is to protect, promote, and enforce consumer rights collectively, while preventing infringements under the Act, thereby addressing systemic issues in market practices that harm public interest.[11][12] Under Section 10(2) of the Act, the CCPA's mandate includes preventing unfair trade practices—defined as those exploiting consumer vulnerabilities or misleading through deceptive representations—and ensuring no entity engages in unethical business conduct that contravenes the law.[12] It is further tasked with curbing false or misleading advertisements for goods and services, including those that omit material information or exaggerate benefits, by prohibiting their publication and directing corrective measures.[11] This extends to endorsing guidelines on advertising standards, such as those issued in June 2022 for transparency in claims, to safeguard against practices prejudicial to consumer welfare.[13] The Authority's functions encompass inquiring into and investigating violations, either suo motu or on complaints, and issuing directions for product recalls, refunds, or cessation of harmful practices; it may also impose penalties up to ₹10 lakh for first offenses and ₹50 lakh for repeats in misleading advertising cases.[1] Additionally, the CCPA advises the central government on policy, frames guidelines to prevent unfair practices, and issues safety notices for hazardous goods or services, as seen in alerts on unsafe products like certain pressure cookers in 2023.[2] This mandate prioritizes collective consumer protection over individual disputes, distinguishing it from consumer commissions, and emphasizes proactive regulation in e-commerce and direct selling sectors.[9]Organizational Composition
Structure and Leadership
The Central Consumer Protection Authority (CCPA) is headed by a Chief Commissioner, appointed by the Central Government, who oversees its overall operations, policy direction, and enforcement of consumer protection mandates.[1] The authority's composition includes the Chief Commissioner and such number of Commissioners as determined by the Central Government, typically specializing in areas such as goods and services to address domain-specific violations.[11] This hierarchical setup ensures coordinated regulation of unfair trade practices, misleading advertisements, and consumer rights infringements under the Consumer Protection Act, 2019.[1] As of October 2025, Smt. Nidhi Khare serves as the Chief Commissioner, providing leadership in investigations, guideline issuance, and inter-agency coordination.[14] Supporting the Chief Commissioner is at least one Commissioner, with Shri Anupam Mishra currently holding the position and assisting in advisory and regulatory functions.[14] Appointments to these roles emphasize expertise in consumer affairs, legal enforcement, or related administrative experience, enabling the CCPA to function independently while reporting to the Department of Consumer Affairs.[11] The CCPA's operational backbone includes a dedicated investigation wing, headed by a Director General responsible for inquiring into alleged violations, gathering evidence, and recommending actions such as penalties or product recalls.[1] Shri Pramod Kumar Tiwari currently occupies the Director General role, supported by an Assistant Director General for investigations, Dr. Alok Kumar Srivastava, who manages field-level probes and compliance monitoring.[14] This wing operates with quasi-judicial powers, allowing direct intervention in cases prejudicial to public interest, distinct from the advisory Central Consumer Protection Council.[11] The structure promotes efficiency by integrating leadership oversight with specialized investigative capabilities, though its effectiveness depends on adequate staffing and resource allocation as outlined in annual reports.[15]Operational Framework
The Central Consumer Protection Authority (CCPA) operates under Sections 10 to 27 of the Consumer Protection Act, 2019, which establish its administrative setup, inquiry mechanisms, and enforcement protocols, effective from July 20, 2020.[16][17] These provisions are supplemented by the Central Consumer Protection Authority (Allocation and Transaction of Business) Regulations, 2020, which delineate the distribution of responsibilities among the Chief Commissioner, other Commissioners, and subordinate officers, including the formation of committees for specialized functions.[18] Internally, the CCPA functions through a hierarchical structure led by a Chief Commissioner appointed by the Central Government on recommendations from a selection committee, supported by up to five Commissioners and an Investigation Wing headed by a Director-General.[16] Business transactions occur via formal meetings convened by the Chief Commissioner, requiring a quorum of the Chief Commissioner or one Commissioner and two members of the Investigation Wing, with decisions made by majority vote; urgent matters may be handled through circulation to ensure timely operations.[18] Allocation of duties allows the Chief Commissioner to assign specific inquiries or administrative tasks to individual Commissioners or panels, facilitating efficient handling of nationwide consumer issues. Enforcement begins with suo motu action, complaints from consumers or trade associations, or referrals from state authorities, triggering a preliminary inquiry under Section 21 to assess prima facie evidence of violations such as unfair trade practices or misleading advertisements.[17] If a case is substantiated, the CCPA directs the Director-General to conduct a full investigation, empowering officers to summon documents, examine witnesses under oath, and search premises with magistrate approval, akin to Code of Civil Procedure provisions.[16] The Investigation Wing submits a detailed report within timelines specified in the Central Consumer Protection Authority (Submission of Inquiry or Investigation by the Investigation Wing) Regulations, 2021, after which affected parties receive notice and an opportunity for hearing before final orders. Upon inquiry completion, the CCPA issues directions under Section 20, including cessation of unfair practices, product recalls with refunds, discontinuation of misleading ads, or penalties up to ₹10 lakh for first offenses and ₹50 lakh for repeats, with higher fines up to ₹50 crore for false ads by endorsers.[17] It may also file class-action complaints on behalf of consumers before District, State, or National Commissions and issue binding guidelines or safety notices to manufacturers and service providers.[16] Operations integrate awareness campaigns, research coordination, and advisory roles to the government, ensuring a proactive rather than purely reactive framework.[1]Powers and Regulatory Mechanisms
Investigative and Enforcement Powers
The Central Consumer Protection Authority (CCPA) possesses broad investigative powers under the Consumer Protection Act, 2019, primarily to probe violations of consumer rights, unfair trade practices, and misleading advertisements. Section 15 establishes an Investigation Wing headed by a Director-General, supported by Additional Directors-General and other officers with relevant expertise, tasked with conducting inquiries and investigations as directed by the CCPA.[17] Section 18 empowers the CCPA to initiate or direct such inquiries into suspected violations, while Section 19 allows for preliminary inquiries by the CCPA itself, followed by orders for formal investigations by the Director-General or, in certain cases, the District Collector.[17] These investigations proceed under Section 21, where the Director-General submits reports to the CCPA for review and action.[17] Investigative authority extends to robust search and seizure operations under Section 22, mirroring provisions of the Code of Criminal Procedure, 1973 (Section 100). The Director-General or authorized officers may enter premises, inspect documents and articles, seize evidence relevant to violations, and handle perishable goods, with seized items returnable within 20 days unless further proceedings are justified.[17] This framework enables the CCPA to gather empirical evidence of non-compliance, such as deceptive marketing materials or unsafe products, ensuring investigations are evidence-based rather than presumptive.[1] For enforcement, the CCPA issues binding directions under Section 20 to recall unsafe goods or services, reimburse affected consumers, discontinue unfair practices, or modify advertisements after providing an opportunity for hearing.[17] Section 21 specifically targets misleading advertisements, authorizing orders to halt publication, impose monetary penalties up to ₹10 lakh for first offenses (escalating to ₹50 lakh for repeats), and restrict false endorsers from advertising for up to one year (or three years for recidivism), with penalties up to ₹10 lakh on endorsers.[17] Non-compliance with these directions triggers Section 88 penalties, including imprisonment up to six months, fines up to ₹20 lakh, or both.[17] Additionally, Section 23 permits the CCPA to file complaints or class action suits before consumer commissions and initiate prosecutions, reinforcing enforcement through judicial channels.[17] These mechanisms prioritize remedial actions over punitive measures where feasible, aiming to restore consumer interests while deterring systemic violations.[1]Guidelines and Directives Issued
The Central Consumer Protection Authority (CCPA) has issued a series of guidelines under Section 18 of the Consumer Protection Act, 2019, targeting misleading advertisements, deceptive practices, and unfair trade behaviors to safeguard consumers from systemic exploitation in advertising and commerce. These directives specify prohibited practices, impose due diligence obligations on advertisers and platforms, and enable enforcement actions against violations prejudicial to public interest.[19] Issuances have accelerated since 2022, addressing evolving challenges like digital manipulation and unsubstantiated claims, with notifications published via the Department of Consumer Affairs. The Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, notified on June 10, 2022, establish criteria for advertisements to be non-misleading, requiring substantiation of claims through verifiable evidence such as empirical data or expert validation before dissemination. They mandate disclaimers for conditional offers, prohibit endorsements without personal use or due diligence by celebrities and influencers, and ban tactics like bait advertising or surrogate promotion of restricted goods.[20] These rules apply to all media, holding direct sellers accountable for third-party misrepresentations and empowering CCPA to order modifications or cessations.[21] On July 4, 2022, CCPA released Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants, declaring the mandatory imposition of service charges as an unfair practice. The directive instructs establishments to display menus without embedded service charges, allowing voluntary tipping post-service, and requires transparency to prevent coerced payments disguised as standard fees.[22] Violations trigger potential investigations and penalties under the Act.[23] The Guidelines for Prevention and Regulation of Dark Patterns, 2023, notified on November 30, 2023, identify and prohibit 13 specific deceptive user interface designs, such as false urgency, disguised ads, and subscription traps, which manipulate consumer choices on e-commerce and digital platforms. They compel platforms to conduct audits, ensure opt-out ease, and avoid practices like confirmshaming or nagging, with non-exhaustive scope for future additions by CCPA. Enforcement includes advisories, such as the June 5, 2025, directive for e-commerce self-audits to detect and report dark patterns.[24] Subsequent guidelines address sector-specific risks: The Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024, effective October 15, 2024, require environmental assertions—like "eco-friendly" or carbon-neutral labels—to be backed by lifecycle assessments, third-party certifications, or standardized metrics, prohibiting vague or unsubstantiated "green" marketing that misleads on sustainability impacts.[25] Similarly, the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024, issued November 13, 2024, ban guarantees of success rates, rankings, or refunds without evidence, mandate disclosure of failure data, and restrict use of terms like "India's No.1" absent verifiable benchmarks, targeting exploitative promises in education services.[26] In 2025, the Guidelines for the Prevention and Regulation of Illegal Listing and Sale of Radio Equipment including Walkie Talkies on E-Commerce Platforms, 2025, notified May 30, 2025, regulate unauthorized wireless device sales by requiring certification compliance, delisting non-compliant items, and consumer warnings against unlicensed equipment posing safety and interference risks.[27] These directives collectively emphasize evidence-based claims and platform accountability, with CCPA retaining authority to issue further rules or class-wide orders.[19]Key Activities and Enforcement Actions
Notable Cases and Interventions
The Central Consumer Protection Authority (CCPA) has conducted enforcement actions primarily against misleading advertisements, non-compliant product sales, and unfair trade practices on e-commerce platforms. In a case involving quality standards violations, the CCPA ordered Cloudtail India to halt the sale of domestic pressure cookers lacking mandatory Bureau of Indian Standards (BIS) certification, a directive upheld by the National Consumer Disputes Redressal Commission (NCDRC) after dismissing Cloudtail's appeal in 2023.[28] Addressing safety concerns in children's products, the CCPA intervened in 2023-2024 by directing e-commerce platforms to remove non-ISI marked toys from listings and issuing compliance notices to sellers, preventing the continued distribution of substandard items that posed risks to consumers.[2] In the education sector, the CCPA exercised suo motu powers in July 2024 to investigate a misleading advertisement by an edtech firm, probing unsubstantiated claims about course efficacy and outcomes to curb deceptive marketing targeting students.[29] The authority issued a show-cause notice to Amazon in 2024 for selling sweets labeled "Shri Ram Mandir Ayodhya Prasad," which misleadingly suggested temple endorsement, violating guidelines on false origin claims and prompting corrective labeling requirements.[30] On consumer refunds, the CCPA's 2020-2023 directives compelled travel agencies and airlines to reimburse approximately ₹1,454 crore to passengers for flight cancellations during COVID-19 lockdowns, enforcing mandatory refunds under the Consumer Protection Act without deductions for administrative fees.[31] Regarding high-profile misleading ads, the CCPA received multiple complaints against Patanjali Ayurved for unsubstantiated health claims in products like Coronil, forwarding them to relevant ministries for action while issuing broader 2022 guidelines; however, primary penalties stemmed from Supreme Court oversight rather than direct CCPA fines.[32][33]Recent Developments
In June 2025, the Central Consumer Protection Authority issued an advisory directing all e-commerce platforms to conduct self-audits within three months to detect and eliminate dark patterns, such as forced actions, disguised ads, and subscription traps, building on its 2023 guidelines.[34][35] On October 3, 2025, the CCPA imposed a penalty of ₹5 lakh on Drishti IAS for misleading advertisements falsely claiming high success rates in the UPSC Civil Services Examination 2022 results, following an investigation into unsubstantiated claims.[36] In August 2025, the authority fined ride-hailing service Rapido ₹10 lakh for misleading promotional advertisements, amid a reported increase in consumer complaints from 575 to 1,224 between June 2024 and July 2025, as tracked by the National Consumer Helpline.[37] The CCPA also notified guidelines in 2024 for preventing misleading advertisements in the coaching sector, targeting false endorsements and exaggerated success claims, with enforcement actions continuing into 2025.[38] By October 2025, cumulative penalties imposed by the CCPA exceeded ₹11.9 million in 2024 alone for violations including unfair trade practices and false advertising across sectors like edtech and aviation, reflecting intensified enforcement.[39] In response to rising concerns over environmental claims, the CCPA issued guidelines in August 2025 for the prevention and regulation of greenwashing, prohibiting unsubstantiated assertions in advertisements about product sustainability.[40]Impacts and Effectiveness
Benefits to Consumers
The Central Consumer Protection Authority (CCPA) safeguards consumers by regulating unfair trade practices and misleading advertisements on a class-wide basis, enabling proactive interventions that prevent harm before individual grievances escalate. Through powers under the Consumer Protection Act, 2019, the CCPA issues guidelines and directives that mandate transparent disclosures, such as in celebrity endorsements and e-commerce practices, thereby equipping consumers with accurate information to make informed purchasing decisions.[11][41] Enforcement actions by the CCPA have yielded tangible financial recoveries, including the facilitation of ₹1,454 crore in refunds to consumers from online travel platforms for COVID-19-related cancellations between 2021 and 2023, averting widespread losses from non-refunded bookings.[2] In fiscal year 2023-24, the authority issued 99 notices for violations across sectors like e-commerce and coaching institutes, leading to penalties totaling ₹30.5 lakh, which deterred non-compliance and prompted corrective measures such as product recalls with reimbursements for 110 units of non-ISI marked toys and pressure cookers.[2] By December 2024, cumulative enforcement included 325 notices and ₹1.19 crore in penalties for consumer rights violations, enhancing market accountability and reducing deceptive practices.[42] Guidelines notified by the CCPA, such as those on prevention of dark patterns effective November 30, 2023, prohibit manipulative interface designs like false urgency traps and subscription snares, protecting consumers from coerced or uninformed transactions in digital marketplaces.[2] Directives against misleading discounts in e-commerce, exemplified by penalties for misrepresented GST-inclusive pricing, ensure genuine price benefits are passed to buyers, as seen in cases where advertised 27% discounts were adjusted to reflect actual 18.2% savings post-tax.[43] These measures collectively foster a safer consumption environment by addressing systemic issues, with actions like delisting 13,118 unsafe car seat belt alarm clips from platforms preventing potential safety risks to vehicle users.[2]Effects on Businesses and Economy
The Central Consumer Protection Authority (CCPA) has introduced regulatory obligations that elevate compliance costs for businesses, particularly in sectors reliant on digital marketing and e-commerce, through mandates addressing misleading advertisements, dark patterns, and unfair trade practices. Enterprises must invest in legal reviews, internal audits, and system overhauls to align with CCPA guidelines, such as those prohibiting deceptive user interface designs like hidden fees or forced consents, which have prompted actions like Flipkart's voluntary self-audit in 2025 to mitigate enforcement risks.[39] [44] These requirements disproportionately affect small and medium enterprises (SMEs) with limited resources, potentially straining cash flows amid broader economic pressures, though larger firms with dedicated compliance teams face comparatively lower relative burdens.[45] Enforcement under the CCPA has manifested in direct financial penalties, underscoring the tangible economic pressures on non-compliant businesses. In 2024, the authority issued 325 notices for violations of consumer rights and misleading ads, culminating in penalties totaling Rs 1.19 crore.[46] Specific instances include a Rs 10 lakh fine on Rapido in August 2025 for misleading advertisements and unfair practices, requiring reimbursements to affected customers, and a Rs 2 lakh penalty on FirstCry (Digital Age Retail Pvt Ltd) in September 2025 for deceptive price representations that concealed taxes.[47] [48] The CCPA also levied over Rs 11.9 million in penalties across various entities in 2024 for similar infractions, including show-cause notices to 11 companies—such as quick commerce platforms—in October 2025 for persistent dark pattern usage despite prior directives.[39] [44]| Company/Entity | Penalty Amount | Date | Reason |
|---|---|---|---|
| Rapido | Rs 10 lakh | August 2025 | Misleading ads and unfair trade practices[47] |
| FirstCry (Digital Age Retail Pvt Ltd) | Rs 2 lakh | September 2025 | Misleading price representation and unfair practices[48] |
| Various entities (aggregate) | Over Rs 11.9 million | 2024 | Consumer rights violations and false ads[39] |