CCPA issues showcause notices to companies for misleading ads during pandemic

The Consumer Affairs Ministry on Friday said that the Central Consumer Protection Authority (CCPA) has suo-moto issued show cause notices to companies across sectors in a bid to check misleading advertisements.

These companies are in sectors including water purifiers, paints, floor cleaners, apparel, disinfectants and furniture among others. The ministry said this was a part of proactive actions taken by the CCPA towards the protection of consumer interests.

“The action of CCPA will certainly deter unscrupulous traders from launching misleading advertisements to exploit the sentiments of the consumers for cheap commercial profits,” the official statement said. Notices have also been sent to cab aggregators for resorting to unfair trade practice with regard to refunding excess fare charged.

Consumer grievances

“On analysis of the consumer grievances received in the National Consumer Helpline, the CCPA has recently taken up the matter of failed/cancelled transactions while using internet-banking services by the consumers like IMPS, UPI etc where money has not been refunded to the consumer or where the timeline for settlement of such claims has not been adhered to, with, the Reserve Bank of India,” the statement added.

CCPA has also taken up consumer grievances regarding delays in receiving insurance claim amounts with the Insurance Regulatory and Development Authority (IRDAI).

“The CCPA has asked IRDAI, to look into the delay in getting the claim amount by the consumers and take up the consumer grievances with the insurance companies to adhere to the timelines stipulated in the IRDAI Protection of Policyholders’ interest Regulations, 2017,” the official statement said.

The CCPA focuses on protecting and enforcing consumer rights, and regulates matters relating to the violation of rights of consumers, unfair trade practices, and false or misleading advertisements which are prejudicial to the interests of the public and consumers.

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