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

Several customers of Sundaram Finance Co. complain of an unfair practice affecting a whole class of borrowers. The Central Consumer Protection Authority wants to look into it without waiting for any complaint. Under the Act, what is its position?

The Authority may inquire or investigate on its own motion, on a complaint received, or on directions of the Central Government. It does not need a consumer complaint, a State Government direction or a reference from a Commission before starting an investigation.

  1. AIt may inquire or investigate suo motu, on a complaint, or on Central Government directionsCorrect
  2. BIt may inquire only after a written complaint is received from a consumer
  3. CIt may inquire only when the State Government directs it
  4. DIt may inquire only after the District Commission refers the matter

Explanation

Section 18(2)(a) allows the Central Authority to cause an inquiry or investigation into violations of consumer rights or unfair trade practices suo motu, on a complaint, or on directions from the Central Government. The other options add conditions the Act does not impose.

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