UGC NET
UPSC
The Consumer Protection Act, 2019 replaced the old Consumer Protection Act, 1986. It comes into effect from July 20, 2019
The Consumer Protection Act, 2019
Consumer Protection Act, 2019 is a law to protect the interests of the consumers. This act was inevitable to resolve a large number of pending consumer complaints in consumer courts across the country. It has ways and means to solve the consumer grievances speedily.
Highlights of the legislation:Definition of consumer
A consumer is defined as “a person who buys any good or avails a service for a consideration”
It does not include a person who obtains a good for resale or a good or service for commercial purpose.
This definition covers all types of transactions i.e. online and offline
The act provides 6 rights to the consumers
- Right to Safety
- Right to be Informed
- Right to Choose
- Right to be heard
- Right to seek Redressal
- Right to Consumer Education
Establishment of the Central Consumer Protection Authority (CCPA)
It will regulate matters related to
- Violation of consumer rights
- Unfair trade practices
- Misleading advertisements
The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.
The Central Consumer Protection Authority (CCPA) will have the power to impose fines on the endorser or manufacturer up to 2-year imprisonment for misleading or false advertisement.
For repeated offense, may attract a fine of Rs 50 lakh and imprisonment of up to 5 years
Consumer Disputes Redressal Commission(CDRC)
CDRCs will be set up at the district, state, and national levels. A consumer can file a complaint with CDRCs in relation to:
- Unfair or restrictive trade practices
- Defective goods or services
- Overcharging or deceptive charging
- Sale of hazardous goods and services which may be hazardous to life
Complaints against an unfair contract can be filed only at the State and National levels
- Appeals:
Appeals from a District CDRC will be heard by the State CDRC. Appeals from the State CDRC will be heard by the National CDRC.
Final appeal will lie before the Supreme Court
Jurisdiction of CDRCs:
- The District CDRC will entertain complaints where value of goods and services does not exceed Rs. one crore.
- The State CDRC will entertain complaints when the value is more than Rs. one crore but does not exceed Rs. 10 crore.
- Complaints with value of goods and services over Rs. 10 crore will be entertained by the National CDRC.
Mediation:
The act provides for reference to mediation by Consumer Commissions wherever scope for early settlement exists and parties agree for it.
- No appeal against settlement through mediation
- Panel of mediators to be selected by a selection committee consisting of the President and a member of Consumer Commission
Impact of Consumer Protection Act, 2019 on e-commerce platforms:
The government will notify the Consumer Protection (E-commerce) Rules, 2020. The Consumer Protection (E-commerce) Rules, 2020 are mandatory and are not advisories.
- These platforms will have to acknowledge the receipt of any consumer complaint within 48 hours and redress the complaint within one month from the date of receipt. They will also have to appoint a grievance officer for consumer grievance redressal
- Sellers cannot refuse to take back goods or withdraw services or refuse refunds, if such goods or services are defective, deficient, delivered late, or if they do not meet the description on the platform.
- The rules also prohibit the e-commerce companies from manipulating the price of the goods or services to gain unreasonable profit through unjustified prices.
Product Liability:
A manufacturer or product service provider or product seller will be held responsible to compensate for injury or damage caused by defective product or deficiency in services like
- Manufacturing defect
- Design defect
- Deviation from manufacturing specifications
- Not conforming to express warranty
- Failing to contain adequate instructions for correct use
- Service provided-faulty, imperfect or deficient
In case of the first conviction, a competent court may suspend any licence issued to the person for a period of up to two years and in case of second or subsequent conviction, may cancel the licence permanently
Other important provisions
- 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)
Sample Questions
With reference to Consumer Protection Act, 2019 regarding e-commerce companies, consider following statements
1. It prohibits the e-commerce companies from manipulating the price of the goods or services to gain unreasonable profit through unjustified prices.
2. Under this act, e-commerce platforms have to acknowledge the receipt of any consumer complaint within 72 hours and redress the complaint within one month from the date of receipt.
(A) 1 Only
(B) 2 Only
(C) Both
(D) None
Explanation
The e-commerce platforms have to acknowledge the receipt of any consumer complaint within 48 hours and redress the complaint within one month from the date of receipt under this Act.
It prohibits the e-commerce companies from manipulating the price of the goods or services to gain unreasonable profit through unjustified prices.
Hence Statement (1) is correct and Statement (2) is incorrect
