Consumer Protection Act, 2019


Sadda Haq Ethhe Rakh!!

You are a Consumer!! Yes! It’s an assertive statement! If you are reading this article, you are a consumer. You bought a smart-phone or a laptop or whatever device for reading the article. Moreover, you spent for an internet connection. Also, you are charging those devices via electricity. This makes you a part of the society and a consumer of the public market.

Human beings are not self -reliant for all their needs. They rely on each other which becomes the foundation of society and the concept of the market: The area where commercial dealings i.e. buying and selling is carried out. Now being a part of the society, as one is aware of their fundamental rights, you should also be aware of the rights you are entitled to in the market.

The Consumers can cheer that the three-decade-old Consumer Protection Act, 1986 has been replaced by “The Consumer Protection Act 2019” with various new consumer friendly amendments. But first let us understand who a consumer is according to the new Consumer Protection Act, 2019

In mid August 2019 Hon’ble President gave his assent to the bill and the “The consumer protection Act, 2019” legislation came in effect. Remarkably, the 2019 Act repeals the old 1986 Consumer Protection Act. The 1986 Act had been amended from time-to-time so as to bring it in accordance with changing time. However, the objective of being “Socio-economic legislation to provide protection for consumers” was far from being practically feasible.     


NEW ADDITIONS 

I. The new Act has brought fundamental changes to the existing 1986 Act. The definition of a ” Consumer” now includes those who buy online goods. The endorsement done by various celebrities mow comes under the ambit of the 2019 Act. There are strict provisions for false or misleading endorsements. Additional responsibilities have been laid on manufacturers, endorsers and service providers.

II.  Notably, the definition of goods now includes “Food” as defined in the FSSAI (Food Safety and Standards) under the Ministry of Health and Family Welfare.

III.  A significant addition is an inclusion of “Telecom” in the definition of “Services’’ to bring telecom services under the ambit of the 2019 Act.

IV.  A new provision of “Product Liability” has been introduced where the manufacturer or the service provider has to reimburse for any form of harm caused by defective goods or services. Even the goods and services provided via the e-commerce medium come under the provision.

V.  “Unfair Trade Practices” now include electronic as well. This now makes sure that if any personal data which is private or privileged and gathered in course of transaction gets disclosed, it will attract penal action.


CONSUMER COURTS

I.   The Consumer Redressal Commission (also called Consumer Courts) now have increased pecuniary jurisdiction. Meaning, the ability of the court to take cognizance of the case based on the actual value. The District Court can now take up cases up to 1 crore.

II.   Another important change is that the money spent on buying the goods or services until that time will now be calculated by the previous parameter of the total value of the purchased goods and services. For example, if someone has bought a product on a discount, then the discounted price will be the determiner of the case and not the M.R.P.

III. Coming as a great relief for the consumers, an agitated consumer can now file the case from anywhere in the country as in the earlier Act the complainant had to file a case in the area where the service provider was present. This amendment has been made keeping in mind with the explosion of e-commerce.

IV.  The Act also proposes to establish a central regulator, Central Protection Authority (CCPA) to tackle issues relating to consumer rights, unfair trade practices, misleading advertisements, and impose penalties for selling fake or faulty products. In short, the Regulatory body will not address the consumer complaints directly. but the moves of CCPA will be directed towards the manufacturers or sellers.

Table: Difference between the old and new Consumer Protection Act.                                                                            

Consumer Protection Provisions Act, 1986


No separate regulator

 




REGULATOR

 

Consumer Protection Act,2019



Central Protection Authority (CCPA)

Complaint filing in the area of the seller

 

CONSUMER COURT

 

Complaint can be filed where the complainant resides or works.

No provision. The consumer had to approach a district court

 

PRODUCT LIABILITY

Harm contain by a product or serviceperson who is consuming can obtain compensation.

District: upto 10 lakh

State: 20 lakh to 1 Cr

National : above 1 Cr

PECUNIARY JURISDICTION

District : upto 1 Cr

State: 1Cr to 10 Cr

National : above 10 Cr

 

No provision

 

E-COMMERCE

 

All rules of direct selling extend to e-commerce

 

No Provision

 

MEDIATION CELLS

 

Court can refer settlement through mediation



































CONCLUSION

One can really say that the amendment of the Consumer Protection Act was the need of the hour. Many consumers were helpless when it came to the grievances regarding e-commerce. As now e-commerce has come on the radar of laws, the onus of ensuring that no counterfeit products are sold on these platforms will lie upon the companies. This fitting move will ensure that no fake products are circulated via these platforms. With the 2019 Act introducing the power of judicial review, the Consumer commissions would now be able to undo the errors which have been committed.

The new consumer Act has proposed a slew of measures which tighten the existing rules to provide relief to the aggrieved customers. In all, the revolutionary Consumer Protection Act, 2019 is a constructive and practical step towards consumer laws in a dynamically changing society. But, the real test of the amended Act of 2019 would lie in its implementation.

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By- Rutveek Jawalekar, student of 2nd year from Government Law College, Mumbai and currently pursuing LLB.

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