The Consumer Protection Act, 2019, introduced significant reforms to strengthen consumer rights in India. It replaced the older Consumer Protection Act, 1986, to address emerging challenges in consumer markets, especially in e-commerce. Here are the key new rights and provisions under the 2019 Act:
1. Establishment of the Central Consumer Protection Authority (CCPA)
- A new regulatory authority, CCPA, was created to protect consumer rights, prevent unfair trade practices, and ensure consumer awareness.
- The CCPA has the power to:
- Investigate violations of consumer rights.
- Initiate class-action suits.
- Recall unsafe goods and services.
- Impose penalties on false or misleading advertisements.
2. E-commerce and Online Consumer Protection
- Special provisions for e-commerce platforms, requiring them to:
- Display detailed product descriptions, including price, terms of sale, return, refund, and warranty policies.
- Provide transparency in transactions.
- Address grievances promptly through internal complaint mechanisms.
- Liabilities have been expanded to include product sellers and manufacturers for defective goods/services.
3. Consumer Grievance Redressal Mechanism
- The jurisdiction for filing complaints has been simplified:
- Complaints can now be filed at the place of the consumer’s residence.
- Consumers can file complaints online through the e-Daakhil Portal.
- Pecuniary jurisdiction of consumer commissions has been enhanced:
- District Commission: Up to ₹1 crore.
- State Commission: ₹1 crore – ₹10 crore.
- National Commission: Above ₹10 crore.
4. Product Liability
- Introduced the concept of product liability, holding manufacturers, sellers, and service providers accountable for harm caused by defective goods or deficient services.
- Claims can be made for:
- Manufacturing defects.
- Design defects.
- Insufficient instructions or warnings.
- Deviation from warranty terms.
5. Prevention of Misleading Advertisements
- Stricter penalties for misleading advertisements:
- Endorsers (like celebrities) can be held liable if advertisements are found deceptive.
- Fines up to ₹10 lakh for false claims, with repeat offenses inviting imprisonment.
6. Mediation as an Alternative Dispute Resolution Mechanism
- A new mediation process was introduced:
- Reduces litigation time.
- Allows voluntary settlement of disputes through a dedicated mediation cell attached to consumer commissions.
7. Rights of Consumers under the Act
The Act codifies consumer rights as:
- Right to Safety: Protection against hazardous goods/services.
- Right to Information: Access to complete and accurate information about products/services.
- Right to Choose: Access to a variety of goods/services at competitive prices.
- Right to Be Heard: Fair consideration of grievances.
- Right to Seek Redressal: Legal remedies for unfair trade practices.
- Right to Consumer Awareness: Awareness and education about rights and responsibilities.
8. Penalties for Non-Compliance
- Manufacturers or service providers failing to comply with safety standards can face fines and imprisonment.
- Introduction of class-action suits for collective consumer grievances.
The Consumer Protection Act, 2019, thus empowers consumers in a rapidly changing marketplace, particularly addressing the challenges posed by digital transactions and e-commerce platforms.
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