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CS Professional · Banking and Insurance - Laws and Practice · Consumer Protection

A bank's customer alleges that a lender's advertisement for a gold loan scheme is false and misleading and affects many borrowers across several States. Under the Consumer Protection Act, 2019, which body is established to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements prejudicial to the public and consumers?

The Central Consumer Protection Authority is the body set up under the Act to regulate violations of consumer rights, unfair trade practices and false or misleading advertisements, and to enforce consumer rights as a class. The Central Council is merely advisory and has no such regulatory role.

  1. ACentral Consumer Protection Council
  2. BCentral Consumer Protection AuthorityCorrect
  3. CState Consumer Protection Council
  4. DDistrict Commission

Explanation

Section 10 establishes the Central Consumer Protection Authority to regulate violation of consumer rights, unfair trade practices and false or misleading advertisements, and to protect consumers as a class. The Central Council is only an advisory body under Section 3, so it does not regulate such matters.

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