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

Aarav Foods Ltd. runs an advertisement that a consumer group says is false and misleading. Without waiting for any complaint or government direction, the Central Authority wishes to start an inquiry. Is it permitted to do so under the Consumer Protection Act, 2019?

Yes. The Central Authority may inquire or cause an inquiry or investigation on its own motion, on a complaint received, or on directions from the Central Government. It does not need a consumer complaint or an order from any Commission before starting.

  1. ANo, it can act only on a complaint from a consumer
  2. BNo, it can act only on directions from the Central Government
  3. CYes, it may inquire or cause an inquiry suo motu, or on a complaint or Central Government directionCorrect
  4. DYes, but only after the District Commission orders it

Explanation

Section 18(2)(a) allows the Central Authority to inquire or cause an inquiry or investigation into violations of consumer rights or unfair trade practices suo motu, on a complaint received, or on directions from the Central Government. So no complaint or order is needed. Restricting it to complaints or directions alone is wrong.

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