• The Central Consumer Protection Authority (CCPA) has slapped a notice on electric two-wheeler manufacturer Ola, as it initiates a class action after over 10,000 complaints related to quality and after-sales service remained unaddressed, according to reports.

• The National Consumer Helpline (NCH) has been getting complaints against Ola Electric for the last one year, which were escalated to higher levels at the company for redressal.

• As per the CCPA, the major grounds for issuing show cause notice are alleged violation of consumer rights, deficiencies in services, misleading claims, and unfair trade practices.

• On October 7, the CCPA issued the show cause notice against Ola Electric and gave 15 days for the company to respond.

Central Consumer Protection Authority (CCPA)

• The Consumer Protection Act, 2019 was notified on August 9, 2019 and came into force on July 20, 2020. 

• It replaced the Consumer Protection Act, 1986.

• Under the provisions of the Act, the Central Consumer Protection Authority (CCPA) was established in July 2020. 

CCPA is empowered to:

a) Protect, promote and enforce the rights of consumers as a class, and prevent violation of consumers rights under this Act.

b) Prevent unfair trade practices and ensure that no person engages himself in unfair trade practices.

c) Ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder.

d) Ensure that no person takes part in the publication of any advertisement which is false or misleading.

• The CCPA can make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products. 

• The CCPA has an investigation wing, headed by a director-general, which may conduct inquiry or investigation into consumer law violations. 

• The CCPA has been granted wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than one individual.

• The power of CCPA to take class action is a unique feature of the new Act. Earlier, there was no mechanism to deal with issues of unfair trade practices and misleading advertisements which impacted consumers as a class. As a result, such practices continued unrestrained without any accountability. 

• The CCPA has powers to pass orders of discontinuation of practices that are unfair and prejudicial to consumers’ interests and impose penalties in case of false or misleading advertisements.

National Consumer Helpline

• The Department of Consumer Affairs has revamped the National Consumer Helpline (NCH), which has emerged as a single point of access to consumers across the country for grievance redressal at the pre-litigation stage.

• It recognises the need of consumers for a helpline to deal with a multitude of problems arising in their day-to-day dealings with business and service providers. 

• National Consumer Helpline provides advice, information and guidance to empower consumers and persuade businesses to reorient their policy and management systems to address consumer concerns and grievances adopting global standards.

• It is available to all consumers of the country wherein consumers can register their grievances from all over the country in 17 languages through a toll-free number 1915.

• These grievances can be registered on the Integrated Grievance Redressal Mechanism (INGRAM), an omnichannel IT-enabled central portal, through various channels — WhatsApp, SMS, mail, NCH app, web portal, and Umang app as per their convenience.

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