CS Professional · Banking and Insurance - Laws and Practice · Consumer Protection
Ravi, a company secretary, is asked to distinguish the Central Consumer Protection Council from the Central Consumer Protection Authority. A customer of an insurer complains about a misleading advertisement. Which statement is correct?
The Central Council only advises on promotion and protection of consumers' rights, whereas the Central Authority regulates violations of consumer rights, unfair trade practices and false or misleading advertisements. Both are set up by the Central Government, and only the Authority has a Chief Commissioner.
- AThe Central Council regulates false or misleading advertisements and is headed by a Chief Commissioner
- BThe Central Authority is an advisory council chaired by the Minister-in-charge of Consumer Affairs
- CBoth bodies are established by the State Government and meet twice a year
- DThe Central Council is advisory, while the Central Authority regulates matters relating to false or misleading advertisements and unfair trade practicesCorrect
Explanation
The Central Council under Section 3 is advisory, with the Minister as Chairperson. The Central Authority under Section 10 regulates violation of consumer rights, unfair trade practices and false or misleading advertisements, and has a Chief Commissioner. Both are established by the Central Government, so the other options are wrong.
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