CS Professional · Banking and Insurance - Laws and Practice · Consumer Protection
Reliant Bank Ltd. in Mumbai ran an advertisement describing a savings scheme in terms that customers found false and misleading. Which body under the Consumer Protection Act, 2019 is specifically charged with ensuring that no false or misleading advertisement is made, and has the power to act against it?
The Central Consumer Protection Authority is the body charged with ensuring that no false or misleading advertisement is made. The Central Council is merely advisory and has no enforcement role, so it is not the right body for this situation.
- ACentral Consumer Protection Council
- BCentral Consumer Protection AuthorityCorrect
- CState Consumer Protection Council
- DBanking Ombudsman acting under the Act
Explanation
Section 10 establishes the Central Authority to regulate false or misleading advertisements, and section 18(1)(c) makes it responsible for ensuring none is made. The Central Council under section 3 is only an advisory council, so it cannot take enforcement action.
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