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

Following a preliminary inquiry into a misleading claim by a financial product seller, the Central Authority concludes that the matter should be dealt with by a Regulator established under another law. What does the Consumer Protection Act, 2019 empower it to do?

It may refer the matter to the concerned Regulator established under the other law, along with its report. The Act does not require closing the matter, transferring it to the National Commission, or directing the Regulator to impose a penalty.

  1. AClose the matter, since it has no jurisdiction over such matters
  2. BRefer the matter to the concerned Regulator along with its reportCorrect
  3. CTransfer the matter to the National Commission for final decision
  4. DDirect the Regulator to impose penalty within thirty days

Explanation

Section 19(2) says that where, after preliminary inquiry, the Central Authority thinks the matter is to be dealt with by a Regulator under another law, it may refer the matter to that Regulator along with its report. It does not lose jurisdiction, and the Act gives no power to dictate penalty timelines or transfer such matters to the National Commission.

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