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

Meera, a consumer activist in Pune, asks a company secretary about the nature of the Central Consumer Protection Council. She wants to know whether it can pass binding orders against banks that mis-sell products. Which statement is correct under the Consumer Protection Act, 2019?

The Central Consumer Protection Council is an advisory council under the Consumer Protection Act, 2019. Its object is to render advice on promotion and protection of consumers' rights. It cannot pass binding orders, order recalls or hear appeals, so Meera's expectation is wrong.

  1. AIt is an advisory council that renders advice on promotion and protection of consumers' rights under the ActCorrect
  2. BIt is a quasi-judicial body that can pass binding orders against banks
  3. CIt is a regulator that can order recall of mis-sold products
  4. DIt is an appellate body hearing appeals from State Commissions

Explanation

The Act describes the Central Council as an advisory council. Its object is to render advice on promotion and protection of consumers' rights. It has no adjudicatory or enforcement powers, so binding orders against banks are outside its role.

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