The Consumer Protection Act, 2019, which replaced the Consumer Protection Act of 1986, strengthened consumer rights and introduced several new provisions to address modern marketplace challenges, including e-commerce and misleading advertisements. Here are the key new rights and protections provided to consumers under this Act:
1. Right to Protection Against Unfair Trade Practices
- The Act broadens the definition of unfair trade practices, including misleading advertisements, false product information, and failure to issue a bill or receipt.
- Celebrity endorsements are now regulated, holding endorsers accountable for misleading advertisements.
2. Right to Establishment of the Central Consumer Protection Authority (CCPA)
- The CCPA has been introduced to investigate violations of consumer rights, initiate class-action lawsuits, and impose penalties on misleading advertisements.
- It has the power to recall defective goods, cancel licenses, and impose penalties on manufacturers, sellers, and service providers.
3. Right to Protection from Unfair Contracts
- The Act introduces the concept of unfair contracts, which are one-sided contracts that disadvantage consumers, such as imposing excessive security deposits, unilateral termination, or unreasonable penalties.
- Consumers can now challenge such unfair contracts in consumer courts.
4. Right to E-Commerce Protection
- The law extends to online transactions, ensuring that e-commerce platforms disclose complete product information, refund policies, and grievance redressal mechanisms.
- It mandates that e-commerce platforms must not engage in unfair trade practices, such as manipulating consumer reviews or imposing hidden charges.
5. Right to Alternative Dispute Resolution (Mediation)
- A Mediation Mechanism is introduced to allow consumers to resolve disputes quickly and cost-effectively without going to court.
- This reduces the burden on consumer courts and speeds up conflict resolution.
6. Right to Seek Compensation for Defective Products (Product Liability)
- The Act introduces product liability, making manufacturers, service providers, and sellers liable for harm caused by defective goods or services.
- Consumers can claim compensation for injury, property damage, or even psychological harm caused by defective products.
7. Right to Expedited Consumer Dispute Resolution
- Consumer dispute redressal commissions at District, State, and National levels have revised pecuniary jurisdiction:
- District Commission: Up to ₹1 crore (earlier ₹20 lakhs)
- State Commission: ₹1 crore to ₹10 crore (earlier ₹1 crore)
- National Commission: Above ₹10 crore
- Consumers can file complaints electronically and from their place of residence, making access to justice easier.
8. Right to Protection Against False and Misleading Advertisements
- Strict action can be taken against false and misleading advertisements, including penalties up to ₹50 lakh and imprisonment up to 5 years for manufacturers and endorsers.
9. Right to File Complaints from Anywhere
- Unlike the previous Act, which required filing complaints at the seller’s location, consumers can now file complaints from their place of residence or online.
10. Right to Class-Action Suits
- Consumers can file complaints as a group, enhancing protection against fraudulent business practices.
These enhanced rights under the Consumer Protection Act, 2019, provide better safeguards and empower consumers against modern marketplace malpractices, particularly in the digital and e-commerce space.
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