Government should act on FMCG firms using ‘misleading’ ads
Context:
The Supreme Court emphasized the need for the Centre to take action against FMCG companies employing misleading advertisements, particularly those targeting vulnerable consumers like families with babies and schoolchildren.
Relevance:
GS-02 (Government policies and interventions)
Highlights:
- Concerns were raised regarding the health implications of misleading advertisements, with specific mention of reports alleging higher sugar content in Nestle’s baby food products sold in India and other countries.
- The court widened the scope of the case by including the Ministries of Consumer Affairs and Information and Broadcasting as parties, in addition to the AYUSH Ministry already represented.
Fast-moving consumer goods (FMCG):
- These are packaged goods that are consumed or sold at regular and small intervals which constitutes 50% of household and personal care products.
- Healthcare accounts for 31-32%.
- Food and beverage accounts for the remaining 18-19%.
- FMCG is the fourth largest sector in the Indian economy which provides employment to around 3 million people accounting for approximately 5% of the total factory Employment in India.
- It is an important contributor to India’s GDP growth.
Central Consumer Protection Authority (CCPA) :
- The Central Consumer Protection Authority (CCPA) was established w.e.f. 24th July 2020 under Section 10 of the Consumer Protection Act, 2019 under the Ministry of Consumer Affairs, Food & Public Distribution.
- Objective: To promote, protect and enforce the rights of consumers as a class.
- It is empowered to conduct investigations into violations of consumer rights and institute complaints/prosecution, order recalls of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, and impose penalties on manufacturers/endorsers/publishers of misleading advertisements.
- It also acts to prevent unfair trade practices and ensure that no person engages in unfair trade practices.
- Composition:
- Chief Commissioner as head.
- Two other commissioners as members — one of whom will deal with matters relating to goods while the other will look into cases relating to services.
Consumer Protection Act,2019:
- The Consumer Protection Act, 1986 was replaced by the new the Consumer Protection Act, 2019 with an intention to widen its scope in addressing consumer concerns.
- The Act came into force in July 2020.
- It aims to empower consumers to help them in protecting their rights through various notified rules and provisions.
- The new Act administers offences such as providing false information regarding the quality or quantity of a good or service, and misleading advertisements.
- It also specifies action to be taken if goods and services are found “dangerous, hazardous or unsafe”.
