Why ministries and regulators are turning to the CCPA on consumer grievances
The top consumer protection watchdog is increasingly finding itself at the centre of grievances spanning sectors it does not directly regulate, as government ministries, departments and sectoral regulators seek its help in resolving complaints that fall between regulatory jurisdictions.
India's Central Consumer Protection Authority (CCPA) is receiving an increasing number of consumer complaints from unexpected sources, such as government ministries and sectoral regulators. These complaints span a variety of issues, including refund of airfares, problems with blended petrol, non-delivery of housing projects, and unwanted calls.
The CCPA, which has jurisdiction over consumer protection, is finding itself in the middle of these disputes, as ministries and regulators seek its assistance in resolving grievances that fall outside their direct regulatory scope. The Department of Consumer Affairs is directing these complaints to the concerned authorities for resolution.
However, the CCPA has been hesitant to expedite these requests due to concerns over jurisdiction and the need to follow due process. One notable case involves the Securities and Exchange Board of India (Sebi) seeking the CCPA's help in addressing wallet-related issues involving securities-market intermediaries. While Sebi regulates stock brokers and other intermediaries, the consumer-protection aspects of these complaints may require CCPA intervention.
Experts suggest that while the CCPA's broad mandate allows it to examine consumer grievances even in sectors governed by specialized regulators, it generally follows the principle that specialized regulatory architectures take precedence over the general regulatory framework. If these mechanisms are insufficient, the CCPA can invoke its general consumer-protection framework.
The rise in pendency of consumer grievances on the Center's CPGRAMS portal further highlights the need for efficient grievance redressal.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
