corporate law
The Central Consumer Protection Authority (CCPA) has implemented crucial steps to combat unfair trade practices in the e-commerce sector. Recently, the CCPA issued 24 notices to various e-commerce companies for engaging in conduct that contravenes consumer protection laws.
In tandem with its actions against unfair trade practices, the CCPA has distributed two Safety Notices. These notices alert consumers to the potential risks linked to purchasing household goods that do not meet the Bureau of Indian Standards (BIS) specifications. The product categories impacted include pressure cookers and helmets.
Established on July 24, 2020, under the Consumer Protection Act, 2019, the CCPA is tasked with overseeing consumer interests, particularly in relation to false or misleading advertisements that could adversely affect the public and consumers.
To strengthen consumer protection measures, the CCPA introduced the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, on June 9, 2022. The guidelines outline:
Acknowledging the damaging effects of misleading content on consumer choices, the Department of Consumer Affairs has set up a committee aimed at creating a framework to tackle fake and deceptive reviews in the e-commerce space.
As of December 2024, the CCPA had issued a total of 325 notices for violations of consumer rights, resulting in penalties amounting to Rs 1.19 crore. This indicates a significant increase in enforcement actions compared to the initial 24 notices.
Dark Patterns: On November 30th 2023, the CCPA released the "Guidelines for Prevention and Regulation of Dark Patterns 2023" aimed at addressing deceptive design practices in e-commerce.
Greenwashing: The "Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims, 2024" were adopted to promote transparency regarding environmental claims.
Coaching Sector: The "Guidelines for Prevention of Misleading Advertisements in the Coaching Sector 2024" effective from November 13th 2024, target false claims and unfair practices by coaching institutes.
The proactive initiatives undertaken by the CCPA illustrate its commitment to safeguarding consumer rights and ensuring compliance with established standards within the e-commerce industry. By addressing unfair trade practices, issuing safety notices and developing comprehensive guidelines, the CCPA strives to create a safer and more reliable consumer environment.