Establishment, Powers and Functions of the CCPA — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Under which section of the Consumer Protection Act, 2019 is the Central Consumer Protection Authority (CCPA) established?

   • Section 2
   • Section 10 (correct answer)
   • Section 69
   • Section 89

   Explanation. Section 10 empowers the Central Government to establish the CCPA by notification.

2. What is the key difference between the CCPA and the District/State/National Commissions?

   • There is no difference; they perform identical functions
   • The CCPA protects consumers as a class through regulatory action, while Commissions adjudicate individual complaints for compensation (correct answer)
   • The CCPA can only act after a Commission's decision
   • Commissions can act suo motu, but the CCPA cannot

   Explanation. The CCPA's mandate is regulatory/preventive protection of consumers as a class, distinct from the Commissions' role of adjudicating individual complaints.

3. On what basis can the CCPA initiate an inquiry or investigation?

   • Only on a written complaint filed by a consumer
   • Suo motu, on a complaint received, or on the direction of the Central Government (correct answer)
   • Only after a court order
   • Only once a year during an annual review

   Explanation. The CCPA can act suo motu (on its own initiative), on a complaint, or on the direction of the Central Government.

4. Who heads the CCPA's Investigation Wing?

   • A Director-General (correct answer)
   • The Chief Justice of India
   • A District Collector
   • The Union Home Minister

   Explanation. The Investigation Wing, with powers of search, seizure, and requiring production of documents, is headed by a Director-General.

5. What can the CCPA order where it is satisfied that goods are dangerous, hazardous, or unsafe?

   • Only a warning label be added
   • Recall of the goods and reimbursement of prices to purchasers (correct answer)
   • A one-time fine with no further action
   • Nothing; only a court can order a recall

   Explanation. The CCPA can order recall of dangerous/hazardous/unsafe goods and direct reimbursement of prices to purchasers.

6. What action can the CCPA take against a false or misleading advertisement?

   • Nothing; only individual consumers can sue the advertiser
   • Direct discontinuation or modification of the advertisement, and impose penalties on the manufacturer, endorser, or publisher (correct answer)
   • Only issue a private warning letter with no penalty
   • Shut down the entire company permanently

   Explanation. The CCPA can direct discontinuation/modification of a false or misleading advertisement and impose penalties on the manufacturer, endorser, or publisher.

7. What genuinely new power does the CCPA have regarding an endorser found responsible for a misleading advertisement?

   • It can imprison the endorser for life
   • It can prohibit the endorser from endorsing that product or service for a specified period (correct answer)
   • It can revoke the endorser's citizenship
   • It has no power over endorsers at all

   Explanation. The CCPA can prohibit an endorser found responsible for a misleading advertisement from endorsing that product/service for a specified period — a genuinely new feature under the 2019 Act.

8. Besides enforcement action in specific cases, which of the following is also a function of the CCPA?

   • Fixing the retail price of all consumer goods nationwide
   • Issuing safety notices and advising government ministries on consumer welfare measures (correct answer)
   • Appointing judges to the Supreme Court
   • Collecting income tax from traders

   Explanation. The CCPA can issue safety notices, advise government on consumer welfare, undertake research, and spread consumer-rights awareness.

9. A dangerous batch of a consumer product triggers both a CCPA recall order and individual complaints by specific injured consumers before Commissions. How should this be understood?

   • Only one remedy can proceed; the consumer must choose one exclusively
   • The two remedies are complementary — CCPA action protects the class, while individual complaints seek personal compensation (correct answer)
   • The CCPA action automatically cancels any individual complaint
   • Individual complaints are barred once the CCPA takes any action

   Explanation. CCPA action (class-wide, regulatory) and individual Commission complaints (personal compensation) operate as complementary remedies from the same facts, not as alternatives.

10. Why can the CCPA have regional offices in addition to its headquarters?

    • To allow it to act closer to where consumer harm actually arises, rather than functioning only out of one national office (correct answer)
    • Because the Constitution mandates one office per state regardless of need
    • To provide employment only, with no functional purpose
    • Because the National Commission required it to decentralise

    Explanation. Regional offices, where the Central Government considers necessary, let the CCPA operate closer to where consumer harm actually occurs.

11. Under Section 10(2) of the Consumer Protection Act, 2019, the Central Consumer Protection Authority consists of:

    • A Chairperson and two judges of the Supreme Court
    • A Chief Commissioner and such number of other Commissioners as may be prescribed (correct answer)
    • A President and two members, as in a District Commission
    • The Union Consumer Affairs Minister and Secretary only

    Explanation. Section 10(2) provides for a Chief Commissioner and other Commissioners as prescribed, appointed by the Central Government.

12. Where must the headquarters of the CCPA be located?

    • At a place in the National Capital Region of Delhi (correct answer)
    • Mumbai
    • Kolkata
    • Wherever the Chief Commissioner decides

    Explanation. Section 10(3) requires the headquarters in the National Capital Region of Delhi, with regional and other offices elsewhere as the Central Government decides.

13. Who heads the Investigation Wing of the CCPA under Section 15?

    • The Chief Commissioner
    • A Commissioner of Police
    • A Director-General (correct answer)
    • The Registrar of the National Commission

    Explanation. Section 15 gives the Authority an Investigation Wing headed by a Director-General.