The new Consumer Protection Act, 2019 came into force on 20th July 2020 and replaces the Consumer Protection Act, 1986. It will empower consumers and help them in protecting their rights through its various notified rules and provisions
Introduction
Customer is a person or group of people who buys goods or services for personal use either, they use it for business purposes or household it all depends upon the customer. The customer is one of the important parts of the development of the economy. Once Mahatma Gandhi said that a customer is the most important visitor and he is not dependent on us, we are dependent on him. He is doing us a favor by giving us an opportunity to do so, we are not doing him a favor by serving him.
Due to development in technology, there is diverse change which immensely grown in an era of e-commerce and brought many advantages to customers. E-commerce allows them to access their choices and save time. There are my Indian citizens who may buy products online; we can say that the digital era is increasing day by day. So it was felt that there is a need to replace the old consumer protection act to new act according to modern situations.
In mid August 2019, the Government passed the Consumer Protection Act, 2019. It is designed to help customers and it tries to overcome problems in providing basic rights to consumers. This act has replaced the three decade old Consumer Protection Act, 1986 which consists of the same huge legal flaws. In the 2019 act the government will try to settle that huge legal flaw.
Highlights of the Customer Protection Act, 2019.
1. Consumer
The definition of ‘consumer’ under the new 2019 Act has changed. In the old act it did not include the product which consumers bought online. In this act the government has expanded the definition of consumer, it includes online transaction, Teleshopping and multi level marketing. This drawback has benefited by the new act. This new act covers the descriptive part of an online transaction.
2. Relevant Authority
The new act proposes the establishment of a regulatory authority known as Central Consumer Protection Authority (CCPA), with wide power of enforcement[1]. The CCPA will have an investigation wing, headed by a Director General, which may conduct an inquiry or investigation into consumer law violations. The various powers have been granted to CCPA such as to take suo moto actions, recall products, order reimbursement of the price of the goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than one individual.
3. Pecuniary Jurisdiction
The changes in technology and shopping lifestyle have affected the consumer’s rights and put extra burden on national commission. The new act focuses on jurisdiction of consumer court. New act changed the pecuniary jurisdiction of consumer act.
In the new act, district and state courts have given more power now than before. Now, consumer court was allowed to handle cases for goods and services worth value 1 crore to 10 crore, and national court will handle cases in which value of goods or services is more than 10 crore.
4. Filing Complaints
The new act allows the customer to file a complaint at the place where he resides or at the place he/ she works. The complaint can also be filed electronically according to the new consumer act, 2019.
5. Appeal
The new consumer act, 2019 brings changes in appeal provision also. An appeal can be applied in superior court. By order of the District Commission to State Commission within 45 days, provided that no appeal applicable if decision passed through mediation.
If there is an appeal from state commission to national commission within 30 days and same time limit from the national commission to Supreme Court that means 30 days.
6. Product Liability
The concept of product liability has been introduced in new act, 2019. The manufacturer shall be liable for any kind of harm caused by their product which results in any injury or death of the consumer[2]. The earlier act includes any physical injury, but new act also includes mental agony and emotional distress.
7. Unfair Trading Practices
In the new act it was added that customer’s private data and such data should not be disclosed to any other person or organization without permission from the customer. This act also enlarged to include electronic advertising which is misleading, as well as refusing to take back or withdraw defective goods, or to withdraw or discontinue deficient services, and to refund the consideration within the period stipulated or in the absence of such stipulation, within a period of thirty days.
8. Mediation
This is the best improvement in the new consumer act, 2019. This act provides mediation for resolving disputes quickly, which makes solving disputes easier than before. This act also added that each state will have a mediation cell which helps in reducing the burden of consumer courts.
9. E-Commerce platforms
New consumer act state that e commerce will be governed by all laws has been enlarged to include electronic advertising which is misleading, as well as refusing to take back or withdraw defective goods, or to withdraw or discontinue deficient services, and to refund the consideration within the period stipulated or in the absence of such stipulation, within a period of thirty days[3].
10. Offences and Penalties
The Central Consumer Protection Authority will have the power to impose fines on the endorser or manufacturer up to 2-year imprisonment for misleading or false advertisement.
Further, repeated offenses, may attract a fine of Rs 50 lakh and imprisonment of up to 5 years. There is also a provision to prohibit the misleading advertiser from endorsing that particular product or service for a period of one year.
11. Practices
The 2019 Act adds three types of practices to the list, namely: failure to issue a bill or receipt; refusal to accept a good return within 30 days; and disclosure of personal information given in confidence, unless required by law or in the public interest. Contests/ lotteries may be notified as not falling under the ambit of unfair trade practices.
12. Rights of consumers
The act provides 6 rights to the consumers-
a) To have information about the quantity, quality, purity, potency, price, and standard of goods or services.
b) To be protected from hazardous goods and services.
c) To be protected from unfair or restrictive trade practices.)
d) To have a variety of goods or services at competitive prices
13. Other Rules and Regulations
- As per the Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases up to Rs. 5 lakh.
- The credit of the amount due to unidentifiable consumers will go to the Consumer Welfare Fund (CWF).
- State Commissions will furnish information to the Central Government on a quarterly basis on vacancies, disposal, the pendency of cases and other matters.
- Apart from these general rules, there are Central Consumer Protection Council Rules, provided for the constitution of the Central Consumer Protection Council (CCPC).
a) It will be an advisory body on consumer issues, headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from different fields.
b) It will have a three-year tenure and will have Minister-in-charge of consumer affairs from two States from each region- North, South, East, West, and North-East Region.
Conclusion
I would like to conclude that finally the government has taken consumers seriously. Consumer Protection Act, 2019 has incorporated by government to remove the flaws of the 1986 act and to make provisions in contravention with the present scenario of marketing and consumer demand. This new act provides the burden of the National Commission and makes it easy to make file complaints regarding infringement of consumer’s rights. The Consumer Protection Act, 2019 emphasis on protection of consumer’s rights. The 2019 Act marks a significant step in improving, expanding and strengthening consumer protection.
References:
1. http://egazette.nic.in/WriteReadData/2019/210422.pdf
2. http://legislative.gov.in/sites/default/files/A1986-68_0.pdf
3. http://egazette.nic.in/WriteReadData/2019/210422.pdf
About the author –
This article is written by Swasti Priya, 5th Year BA.LL.B student at Gautam Buddha University, Greater Noida
