Consumer Protection Act 2019 And Its Features
The consumer protection act 2019 is an important law that has been introduced by the consumer protection ministry. This law protects the consumers from various harmful practices and ensures that they are not exploited in any way. The consumer welfare department will take all necessary actions to ensure proper implementation of this bill at every level including enforcement and monitoring activities that need to be undertaken for successful completion of this legislation.
Consumer Protection Act, 1986
The consumer protection act 1986 was implemented in India on May 31, 1986. the act is applicable to all
companies and organizations selling goods or rendering any service within India as well as foreign
trading businesses that also dealt with consumer transactions. The act seeks to protect a consumer
using various laws such as unfair trade practices; misleading advertisements, etc.
The central consumer protection authority will have the power to take action on violations related to consumer protection. It also has powers of inspection, investigation, and enforcement of consumer protection laws.
Definition of ‘Consumer’ according to the new Consumer Protection Act, 2019 ‘Consumer’ is a person who avails the services and buys any good for self-use. However, a person
who buys goods or avail services for resale or commercial purposes will not be considered as a
‘consumer’. The definition is significant for both methods of transactions i.e. online and offline.
Aim of Consumer Protection Act, 2019 New Consumer Protection Act, 2019 targets giving the ideal and powerful organization and settlement
of consumer disputes with available resources to tackle the consumer complaints rapidly.
Features of Consumer Protection Act 2019: 1. All e-commerce transactions will be covered: The Consumer Protection Act, 2019 has widened the definition of 'consumer'. The definition presently includes any person who buys any goods, whether through offline or online transactions, teleshopping, electronic mode, teleshopping, direct selling, or staggered marketing. In Consumer Protection Act 1986, there was no consideration of e-commerce transactions.
Under this act:-
Enhancement of Pecuniary Jurisdiction, The district forum can now entertain those consumer grievances where the value of goods or services paid does not exceed INR 1crore. The State Commission can entertain disputes where such value is more than INR 1Crore and less than 10 crores. The National Commission can exercise ward where the value exceeds INR 10Crore.
2. New product liability provisions proposed: The provisions for products liability have been proposed under the Consumer Protection Act 2019. The defense that e-commerce platforms are merely the 'platforms' or 'aggregators' will presently not be accepted. Presently, the manufacturer or a service provider needs to compensate a consumer in case he/she undergoes a physical issue or a misfortune due to defective goods or unfortunate service. For instance, on the off chance that a mobile phone or any electronic appliance explodes due to a manufacturing defect and damages the consumer, then the manufacturer will be responsible and will pay the compensation to the consumer for the injury.
The main impact of this arrangement impacts e-commerce platforms. The item liability is presently extended to sellers and service providers alongside manufacturers. This means e-commerce sites can't exclude aggregators anymore. They will likewise be bearing the deficiency of injury, whenever caused to any consumer. 3. Establishment of Central Consumer Protection Authority: The New Act has proposed the establishment of regulatory authorities. It is the Central Consumer Protection Authority (CCPA), which controls wide powers of administration. Headed by a Director-General, the CCPA will have an investigation wing that might lead to requests or investigations into consumer regulation infringement. 4. Enact 6 rights of consumers: This act offers 6 rights to the consumers:
Be protected against the marketing of goods, items, or services that are risky to life and property;
Be informed with regards to the quality, amount, potency, virtue, standard, and price of goods, items, or services;
Be assured, wherever possible, access to a variety of goods, items, or services at competitive prices;
Be heard and to be assured that consumers' interests will receive due consideration at appropriate fora;
Seek redressal against unjustifiable trade practice or restrictive trade practices or deceitful exploitation of consumers;
Right to consumer education.
5. Prohibition and Penalties for misleading advertisements: The Central Consumer Protection Authority (CCPA) will have the power to impose fines on the manufacturers with up to 2 years of imprisonment for distributing misleading or false advertisements. For example Dhan Varsha Laxmi Mantra, or expensive Tabeej to protect from awful evils. For repeated offense, the manufacturer might attract imprisonment for upto 5 years and a fine of Rs 50 Lakhs.
The CCPA additionally restricts the endorser from endorsing a misleading advertisement of that specific item or service for 1 year. For every further offense, the period of forbiddance might extend to 3 years. 6. Establishment of Consumer Disputes Redressal Commission: This new act has enacted the arrangement of the establishment of the Consumer Disputes Redressal Commissions (CDRCs) at the National, State, and District levels. This panel has been formed to entertain grievances related to (I) Overcharging or deceptive charging (ii) Unfair or restrictive trade practices (iii) Sale of unsafe goods and services that might be dangerous to life (iv) Sale of defective goods or services. 7. Provision for Alternate Dispute Resolution: This New Act is quite convenient from the previous one, on account of the Alternate Dispute Resolution mechanism, which makes the process of dispute disintegration simpler and quicker. It enables quick resolution of disputes and reduces the burden on consumer courts that already have many cases pending before them. 8. E-Filing of Complaints: It is one of the most valuable benefits of the Consumer Protection Act 2019. It offers wide flexibility to the consumers. They can file objections with the nearby jurisdictional consumer discussion, be it close to residence or place of work. It is unlike the previous practice, where the documenting was made from the place of purchase or where the seller has its registered office address. The grumblings can likewise be lodged electronically. In fact, videoconferencing should be possible for hearing or examining parties. It expects to offer procedural ease and reduce inconvenience and harassment for the consumers.
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