Consumer Protection Act, 2019 came into force on July 20 with the government notifying rules for its implementation. 

Consumer Protection Act, 2019 replaces the Consumer Protection Act, 1986. The new Act proposes a plethora of measures and mitigates the loopholes of the existing rules to further safeguard consumer rights. 

The new Act will empower consumers and help them in protecting their rights through various provisions like Consumer Protection Councils, Consumer Disputes Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale of products containing adulterants or spurious goods.

Salient features of the new Act

1) Central regulator: Establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers which was absent in the earlier Act. 

CCPA will be empowered to:

• Conduct investigations into violations of consumer rights and institute complaints/prosecution.

• Order recall of unsafe goods and services.

• Order discontinuance of unfair trade practices and misleading advertisements.

• Impose penalties on manufacturers/endorsers/publishers of misleading advertisements.

2) Product liability: A manufacturer or product service provider or product seller to be responsible to compensate for injury or damage caused by defective product or deficiency in services.

Basis for product liability action: 

• 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.

3) Pecuniary Jurisdiction: 

• The pecuniary limit for the District Commission has been increased to up to Rs. 1 crore from Rs 20 lakh.

• For the State Commission, it has been increased to up to Rs 10 crore from Rs 1 crore. 

• For the National Commission, the pecuniary jurisdiction has been increased to over Rs 10 crore as against Rs 1 crore in the 1986 Act.

• Jurisdiction will be determined on the basis of the value of goods or services paid as consideration as against the 1986 Act wherein, it was determined as per the value of goods and services as well as compensation claimed.

4) E-commerce: The rules for prevention of unfair trade practice by e-commerce platforms will also be covered under this Act.

• E-commerce has been brought under the purview of direct-selling and should comply with all such rules.

• Online sellers have to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, security of payment methods, charge-back options, etc including country of origin which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage on its platform.

• 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.

5) Simplified adjudication process: The new Act provides for simplifying the consumer dispute adjudication process.

• Deemed admissibility after 21 days of filing.

• Empowerment of Consumer Commissions to enforce their orders.

• State Commissions and District Commissions can now review their own orders.

• Appeals only on questions of law after the second stage.

• Ease of approaching Consumer Commissions include filing from place of residence/work, e-filing, videoconferencing for hearing.

6) Mediation: This will simplify the adjudication process.

• Alternate Dispute Resolution mechanism.

• Reference to mediation by Consumer Commissions wherever scope for early settlement exists and parties agree for it.

• Mediation Cells to be attached to Consumer Commissions.

• Panel of mediators to be selected by a selection committee consisting of the President and a member of Consumer Commission.

• Mediation to be held in consumer mediation cell.

• No appeal against settlement through mediation

Under the new Act, besides general rules, there are Central Consumer Protection Council Rules, Consumer Disputes Redressal Commission Rules, Appointment of President & Members in State/District Commission Rules, Mediation Rules, Model Rules and E-Commerce Rules and Consumer Commission Procedure Regulations, Mediation Regulations and Administrative control over State Commission & District Commission Regulations.

Manorama Yearbook app is now available on Google Play Store and iOS App Store