Consumer Protection Act 2019
Consumer Protection Act 2019
New Law Related to Consumer Protection in India
Introduction
The Consumer Protection Act, 2019 which replaces the Consumer Protection Act, 1986 comes into force on July 20, 2020. The Bill which sought to give consumers more control over the quality of goods and services being provided to them by corporations was signed into law by Honorable president Ram Nath Kovind on August 9 last year. The Scopes of the Act has been broadened by the introduction of various provisions including e-commerce within its purview.
The Act aims at protecting and strengthening the rights of the consumers by establishing authorities, imposing strict liabilities and penalties on products manufacturers, electronic service providers, misleading advertisers, and by providing additional settlement of consumer disputes through mediation.
The Consumer Protection Act, 2019
The new Consumer Protection Act, 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail term for adulteration and misleading ads by firms. As per the new Act, the District Forum has been renamed the District Commission and can now hear cases with a value of up to Rs 1 crore. The earlier limit was Rs 20 lakh.
In comparison, the State Commission can now hear cases up to Rs 10 crore, while the National Consumer Disputes Redressal Commission can hear cases with a value higher than Rs 10 crore, keeping with the inflation in the country.
According to the latest Act, claim for product liability can be made against manufacturer; service provider, and seller, compensation can be obtained by providing one of the several specified conditions in the Bill.
New Consumer Protection Act Establishes the Central Consumer Protection Authority
(CCPA) to promote, protect, and enforce the rights of consumers as a class.
Central Consumer Protection Authority (CCPA) may:
- Issue safety notices;
- Pass orders to recall goods, prevent unfair practices, and reimburse purchase price paid; and
- Impose penalties for false and misleading advertisements.
Key highlights of the Act
- Insertion of ‘Product liability’ provision to deter manufacturers and service providers from delivering defective products or deficient services;
- E-commerce included within the ambit of Consumer Protection Act;
- Establishment of the Central Consumer Protection Authority (CCPA);
- Simplified dispute resolution process with a substantial increase in pecuniary jurisdiction of Consumer Protection Commissions;
- Introduction of new additional grounds to file complaints and imposition of higher penalties to keep in check misleading advertisements and adulteration of products.
How is the 2019 Act different from previous Act
Central Protection Councils
Latest Act of Consumer Protection makes CPCs advisory bodies for promotion and protection of consumer rights and it establishes CPCs at the District, States and National level.
Composition of Commission
According to the previous Act, District Headed by current or former District Judge and two members and State headed by a current or former High court Judge and at least two members and on National level, the commission headed by a current or former Supreme court Judge and at least four members.
But in the new Act, District, State and National level commission headed by a President and at least four members for each.
Unfair trade practices
Previous Act includes six types of unfair trade practices like representation, misleading advertisements. But The New Act adds three types of other practices to this list: first, failure to issue a bill or receipt; second, refusal to accept a good return within 30 days; third, disclosure of personal information given in confidence, unless required by law or in the public interest.
Appointments
No provision for the selection committee is given in the latest Act as given in the previous Act. All the appointments held by the Central Government through Notification.
Penalties
If a person does not comply with orders of the commissions, according to previous Act, he may face imprisonment between one month and three years or a minimum fine of Rs 2000 which can be extended upon Rs10,000 or both, But in New Act, this fine will not less than Rs25,000 and extended up to one lakh or both.
Conclusion
Consumer Protection Act, 2019 has made several changes to the Act of 1986. CPA, 2019 has ease and fastens the process of various types of disputes resolution of consumers by increasing jurisdiction of the commission, attaching mediation cells, increasing the members of the commission, and increasing the level of punishments. The Act is a very positive step towards reformation and development of consumer laws in India.
By: Sudhanshu
(Final Year Law student at MD University)
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