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

Following an investigation, the Central Consumer Protection Authority finds sufficient evidence that a firm sold a dangerous electrical device. It proposes to order recall of the goods, reimbursement of prices to purchasers and discontinuation of unfair practices. Which statement is correct under the Act?

The Authority may order recall, reimbursement of prices to purchasers and discontinuation of unfair practices once satisfied by investigation that sufficient evidence exists. However, it must first give the person an opportunity of being heard. Dangerousness of goods does not remove that requirement.

  1. AIt may pass such order, but must first give the person an opportunity of being heardCorrect
  2. BIt may pass the order without hearing because the goods are dangerous
  3. CIt can only recommend recall to the Central Council
  4. DIt can order recall but has no power to direct reimbursement of prices

Explanation

Section 20 allows orders for recall or withdrawal of dangerous, hazardous or unsafe goods or services, reimbursement of prices to purchasers, and discontinuation of unfair practices. The proviso requires giving the person an opportunity of being heard before the order is passed, so skipping the hearing is wrong.

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