INTRODUCTION
The new Consumer Protection Act, 2019 came into force on 20th July, 2020 which will empower the consumers and help them to protect their rights through its various notified rules and provisions. The new Act will dispose of the works faster and in less time than the old Consumer Protection Act, 1986. The old Act used to take longer due to single-point access to justice.
The Consumer Protection Act, 2019 is a consumer protection law passed by the Government of India, which was passed by the Modi government in 2019 to protect the interests of the consumers of the country and to prevent fraud with them. This Act has become effective from 20th July 2020. This new Act has replaced the old Consumer Protection Act 1986.The first draft of this new law was prepared in 2014. Earlier this law was to come into force in January 2020 but after that it was further delayed due to Corona. In addition to the consumer court, the Central Consumer Protection Authority (CCPA) will also be constituted under the new law.
MAJOR PROVISION OF THE ACT
DEFINITION OF CONSUMER
A client could be a one that buys one thing or receives a service for his own use. It doesn’t embody an individual United Nations agency acquires a piece for sell or obtains a piece or service for an advertisement purpose. This includes every type of offline or on-line transactions done through electronic mode, teleshopping, multi-level promoting or direct purchase.
The following rights of customers are processed during this Act-
- Providing protection against promoting of products and services that square measure risky to life and property.
- To get info concerning the standard, quantity, purity, commonplace and price of products or services.
- To be assured of providing product and services at competitive costs.
- Seeking compensation within the event of unfair or restricted trade.
RULES ON E-COMMERCE AND UNFAIR TRADE PRACTICES
The Government will notify the Consumer Protection (E-Commerce) Rules, 2020 under this Act which are as follows-
- E-commerce entities are required to provide information to consumers regarding returns, refunds, exchanges, warranties, guarantees, delivery, shipment and mode of payment, grievance redressal mechanism, security of payment methods and place of origin.
- These platforms will have to listen to any consumer complaint within 48 hours and redress the complaint within one month of receiving the complaint and also appoint a Grievance Officer for the same.
- The Consumer Protection (E.Commerce) Rules, 2020 is mandatory, not advisory.
- These rules also prohibit e-commerce companies from manipulating the price of goods or services for the purpose of obtaining unfair advantage through unfair pricing.
PENALTY FOR MISLEADING ADVERTISEMENTS
The Central Consumer Protection Authority (CCPA) can impose a fine of up to Rs 10 lakh on a manufacturer or endorser for false or misleading advertisements. In case of repeat offence, this fine may extend to Rs 50 lakh. The manufacturer shall also be punishable with imprisonment of up to two years, which may extend to five years for each offense committed.
PRODUCT LIABILITY
Product responsibility means the responsibility of the manufacturer, service provider or seller of the product. It is its responsibility to compensate the consumer for any loss or damage caused by any defective goods or services. In order to claim compensation, the consumer has to prove at least one of the conditions relating to the defect or defect mentioned in the Bill.
CONSTITUTION OF CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)
The Central Government will constitute a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers. This authority will regulate matters related to violation of consumer rights, unfair trade and misleading advertisements. The CCPA will have an Investigation Wing headed by the Director General, which can investigate or investigate such violations.
CONSTITUTION OF CONSUMER DISPUTES COMMISSIONS (CDRCs)
Consumer Disputes Redressal Commissions (CDRCs) will be set up at the district, state and national level. A consumer can lodge a complaint with the Commission in respect of the following:
- Trade in an unfair and restricted manner.
- Defective goods or services.
- Overcharging or charging unfairly.
- Offering for sale goods or services that may be hazardous to life and safety.
Complaints against unfair contracts can only be filed with state and national CDRCs. A hearing will be held in the State CDRC against the order of the District CDRC. A hearing will be held in the National CDRC against the order of the State CDRC. The final appeal will be with the Supreme Court.
CONSUMER’S BENEFIT FROM THE ACT
- At present, consumers have only one option for redressal of complaints, which takes more time. The Bill provides for speedy justice through the Central Consumer Protection Authority (CCPA).
- Due to misleading advertisements, confusion prevails among the consumers and their health is adversely affected due to adulteration in the products. There is a provision of harsh punishment for misleading advertisement and adulteration so that such cases come down.
- With the provision for the responsibility of manufacturers and service providers to prevent defective products or services, consumers will not need to waste much time investigating.
- Ease and simplification of process to approach the consumer commission.
- There is a provision of rules for current consumer market issues- e-commerce and direct selling.
CONSUMERS RIGHTS
For every company on paper, the customer is king. Then why do so many customers get poor service (or goods)? Because sometimes (or mostly depending on the company), profit takes priority (among other factors) in serving customers.
That’s why we have the Consumer Protection Act. The Consumer Protection Act, 1986 seeks to promote and protect the interest of consumers against defects and defects in goods or services. It aims to secure the rights of the consumer against unfair or restrictive trade practices.
RIGHT TO PROTECTION
The right to protection means the right to be protected against the marketing of goods and services which are dangerous to life and property.The Act is applicable in sectors such as healthcare, pharmaceuticals and food processing, domains having a serious impact on the health or wellbeing of consumers. This right requires every product that could potentially be a threat to our lives after adequate and complete verification as well as verification.
RIGHTS TO INFORMATION
Right to Information means to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair practices practices.
A consumer should insist on obtaining all the information about the product or service before making a purchase, thereby ensuring that the consumer does not fall prey to high-pressure selling techniques.
RIGHT TO CHOOSE
The right to choose means being assured of access to a wide variety of goods and services at any competitive price. In the case of a monopoly, it means the right to guarantee satisfactory quality and service in reasonable quantities.
In other words, no seller can unfairly influence the choice of the customer, and if any seller does, it will be considered interference with the right to choose.
LOCUS STANDI
Being heard properly means that the interests of the consumer will get due consideration at the appropriate forums. Consumers also have the right to be represented in various forums established to consider the welfare of the consumer.
Consumers are empowered to raise their grievances and concerns against the products or even the companies to ensure that they are dealt with expeditiously keeping their interests in mind.
RIGHT TO REDRESS
Right to redress means the right to redress against unfair trade practices or dishonest exploitation of consumers. As well as ensuring the right to proper disposal of legitimate consumer complaints.
It compensates consumers against the unethical trade practice of the right seller. For example, if the quantity and quality of the product is not guaranteed by the seller, the buyer has the right to claim compensation.
At the district level, consumer courts like District Consumer Disputes Redressal Forum, State Consumer Disputes Redressal Commission and National Consumer Disputes Redressal Commission have been incorporated with the help of Consumer Protection Act, so that consumers can see the redressal.
RIGHT TO CONSUMER EDUCATION
Right to consumer education means right to acquire knowledge and skills to be an informed consumer throughout life.
This is to ensure that consumers understand and exercise all consumer rights. Consumer education can refer to formal education through college and school curriculum as well as consumer awareness campaigns run by both non-governmental and government agencies.
CONCLUSION
The shortcomings of the old rules have been removed with the introduction of a new Consumer Protection Act in place of the three decades old Consumer Protection Act, 1986. The major change that has taken place in the new law is that now a consumer can file a complaint from anywhere. Earlier, the consumer could file a complaint only where the seller provided his services. This step has been taken in view of increasing purchases from e-commerce. Because sellers can provide their services from any location. Apart from this, the law also allows the consumer to attend the hearing through video conferencing, which will save both money and time. With the implementation of this act, consumers will be able to get quick justice. At the same time, it will deal with the complaints of consumers with increased powers and jurisdiction.
Author’s Name- Nandu Dangi (NRI Vidhyadaini Institute of Sci. Mgmt. & Tech. Bhopal)
