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

A newspaper article says the Central Consumer Protection Council investigates misleading advertisements and penalises offenders. A company secretary corrects it. Which body is established to regulate matters relating to unfair trade practices and false or misleading advertisements, as distinct from the advisory Central Council?

The Central Consumer Protection Authority, consisting of a Chief Commissioner and other Commissioners, regulates unfair trade practices and false or misleading advertisements. The Central Council is merely advisory, rendering advice on promotion and protection of consumers' rights, and does not investigate or penalise.

  1. AThe District Consumer Protection Council
  2. BThe State Consumer Protection Council
  3. CThe Central Consumer Protection Authority headed by a Chief CommissionerCorrect
  4. DThe Central Consumer Protection Council itself

Explanation

The Central Authority is established to regulate violation of consumer rights, unfair trade practices and false or misleading advertisements prejudicial to the public, and consists of a Chief Commissioner and other Commissioners. The Central Council is only advisory, so the article confuses the two.

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