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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Consumer Protection

Aarav Foods Ltd. runs a TV advertisement that the Central Authority suspects is false and misleading. A consumer in Pune sends a complaint to the Authority. Which step is the Central Authority empowered to take first under the Act?

The Central Authority may first conduct a preliminary inquiry to check whether a prima facie case of a violation, unfair trade practice or misleading advertisement exists. It can do this on a complaint, on Government directions or on its own motion, and only then orders an investigation.

  1. AConduct a preliminary inquiry to see whether a prima facie case existsCorrect
  2. BDirectly impose a penalty without any inquiry
  3. CRefer the complaint to the Central Consumer Protection Council for decision
  4. DWait for the Central Government to direct an inquiry in writing

Explanation

Section 19(1) allows the Central Authority, on receiving information or a complaint, directions from the Central Government, or on its own motion, to conduct a preliminary inquiry into whether a prima facie case exists. Only if satisfied does it cause an investigation. It does not need Government direction, since it may act on a complaint or suo motu. The Council is only advisory.

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