Central Consumer Protection Authority (CCPA)

Why in the News? 

Rapido has been fined ₹10 lakh by the Central Consumer Protection Authority (CCPA) for releasing deceptive ads and adopting unfair trade practices.

Rapido was running ad campaigns such as “Guaranteed Auto” and “Auto in 5 min or get Rs 50”, which failed to deliver promised benefits to consumers.

The CCPA instructed Rapido to provide compensation to impacted users and to stop running such advertisements without delay.

Key Points from the News: Central Consumer Protection Authority (CCPA)

• • Rapido has been fined ₹10 lakh for misleading advertisements and unfair trade practices.
  • Advertisements in Question:

• Guaranteed Auto:

• Auto in 5 min or get 50

• Duration of Violation: The advertisements were circulated in several regional languages across India for 548 days.
• Consumer Protection Orders:
• Rapido must stop such misleading ads immediately.
• Compensation of  RS 50 must be provided if the promised offer (Auto in 5 min or get Rs 50) is not fulfilled.
• Rapido’s Response: Despite several attempts, Rapido officials did not respond to calls and texts.

About CCPA (Central Consumer Protection Authority):

Establishment: Created under the Consumer Protection Act, 2019.

Objective: To protect the rights of consumers, prevent unfair trade practices, and ensure consumer welfare.

Jurisdiction: Nationwide regulatory authority.

Functions:

Regulates matters relating to violation of consumer rights.

• Investigates complaints of misleading advertisements, unfair trade practices, and violations of consumer rights.
• Can order recall of unsafe goods, withdrawal of misleading advertisements, and impose penalties.
• Has the power to file class-action suits on behalf of consumers.

Head: Chief Commissioner (currently Nidhi Khare, as per news).