Consumer Protection Act, 2019 came into effect on 20th July, 2020. Along with modification in the old act, a new mediations cell and Central Consumer Protection Authority will be established to protect, promote and enforce the rights of consumers. Being a conscientious citizen, do you know about your consumer rights? Check it out below.
Crux of the Matter
What Is The Consumer Protection Act? The Consumer Protection Act was first enacted in 1986 with an aim to protect consumers’ interests and to keep a tab on unfair trade practices by establishing the consumer council. In 2019 the government decided to change the 3-decade old consumer act, as the consumer-seller relation and mode of transactions have changed a lot. The Consumer Protection Bill was introduced and passed in 2019 and it was presented by Union Minister of Consumer Affairs Ram Vilas Paswan. The new Act came into effect on 20th July 2020. Consumer Rights
Right To Safety – Before buying, a consumer has the right to check the quality and guarantee of goods or services.
Right To Choose – Consumers have the right to choose from a variety of goods or services at a competitive price.
Right To Be Informed – Buyers have the right to seek all necessary details of the product, enabling them to make a rational buying decision.
Right To Consumer Education – Consumer has the right to acquire knowledge and skills to be an informed consumer.
Right To Be Heard – Consumers have the right to express their grievances at a suitable forum.
Right To Seek Compensation – Consumers have the right to seek redressal against unfair and inhumane practices.
What’s New In The 2019 Act? The definition of the consumer has been changed and now it includes any person buying goods and services, via online or offline transactions, electronic means, teleshopping, direct selling, or multi-level marketing. Moreover, now consumers can easily approach consumer commission. In case of any dispute, consumers can file complaints online and hearing of cases will also be done through video conferencing. For speedy resolution of the matter, Mediation Cells will be set up. Consumers can now file a complaint from a place of residence/work along with the place of purchase.
Other Changes Under the new Act, a Central Consumer Protection Authority (CCPA) will be established. It aims to protect, promote, and enforce the rights of consumers. CCPA will regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights. Moreover, it will have the right to impose a penalty on the violators and to pass orders to recall goods or withdraw services, discontinuation of the unfair trade practices, and reimbursement of the price paid by the consumers. CCPA will also have an investigation wing, which will be headed by CCPA Director-General.
Consumer Disputes Redressal Commissions The act has the provision for the establishment of Consumer Disputes Redressal Commissions (CDRCs) at national, state, and district levels. CDRCs will look into the matters of overcharging or deceptive charging, unfair or restrictive trade practices, unfair or restrictive trade practices, and sale of defective goods or services. CDRCs will have a divided Jurisdiction: – District CDRC will hear complaints when the value of goods or services is up to ₹1 crore, – State CDRC to hear complaints when the value is between ₹1 – 10 crores, and – National CDRC to hear complaints worth more than ₹10 crores.
Tighter Norms For E-commerce E-commerce entities will now be required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, the security of payment methods, charge-back options, country of origin, etc. E-Commerces will have to acknowledge the receipt of any consumer complaint within 48 hours and redress the complaint within 1 month from the date of receipt under this Act.
What Is The New Product Liability? New Act introduces the concept of product liability. It is the legal liability a manufacturer or trader has for producing or selling a faulty product. Product manufacturers, product service providers, and product sellers are now under purview for any claim for compensation. The basis for the product liability will be gauged from manufacturing defect, deviation from manufacturing specifications, failing to contain adequate instructions for correct use, design flaws, not complying to express warranty, and faulty, imperfect, or deficient service.
Misleading Advertisements CCPA will have the power to impose fines on the endorser or manufacturer and impose up to 2-year imprisonment for misleading or false advertisement. Manufacturers, service providers will face fines and/or jail terms for making misleading claims in advertisements. Celebrities have also come under the Act’s purview. Celebrities endorsing misleading ads can be fined up to ₹10 lakh. Repeated offense, may attract a fine of ₹50 lakh and imprisonment of up to 5 years and bar a celebrity from endorsing advertisements for up to a year, extending to 3 years.
Curiopedia
The Consumer Guidance Society of India (CGSI) is a Non-Profit consumer organization established in India in 1966 to protect and educate the Indian consumer. CGSI was the first consumer organization to be established in India.
KEEMAT is India’s first monthly consumer magazine. CGSI distributes KEEMAT to all its members. KEEMAT is also available as a free download to the public from the dedicated CGSI website www.cgsiindia.org.
The Gazette of India is a public journal and an authorised legal document of the Government of India, published weekly by the Department of Publication, Ministry of Housing, and Urban Affairs. As a public journal, the Gazette prints official notices from the government.
Curated Coverage
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