Consumer protection act 2019

Consumer protection act was passed on 5th December 1986, it is one of the important act which provides the safeguard to the interest of consumers and mechanism for addressing the consumer grievances.This act protect the rights of consumers against unfair illigal trade practices.

However this act has been amended several times, first time it was amended in 1991 thereafter in 1993 and 2002, later on in 2019 another amendment was made to replace the consumer protection act 1986.In 2019 a bill was introduced in parliament by the minister of consumer affairs shree Ram Vilas Paswan which was notified on 9th August 2019 and come into effect from 20 July 2020. the consumer protection act 2019 is applicable to whole India including Jammu and Kashmir.

Meaning of consumer

consumer means any person who buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised but does not include a person who obtains the such good for resale or for any commercial purpose or

hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person but does not include a person who avails of such services for any commercial purposes.

The Consumer Protection Act, 2019, introduced several provisions to enhance consumer rights and protection in India. Some of the key provisions of the Act include:

1)Establishment of Central Consumer Protection Authority (CCPA): Central consumer protection authority is a regulatory body established under section 10(1) of the consumer protection act 2019 to regulate the matters related to unfair trade practices, misleading advertisements and violation of consumer rights.

Functions of CCPA

1)To investigate the violation of consumer rights, unfair trade practices, misleading advertisements.

2)To protect, prevent and enforce the rights of consumers against manufacturers, sellers and other service providers who engage in unfair trade practices that harm consumers.

3)To impose penalties on false or misleading advertisements and other unfair trade practices.

4)To advice the government authorities on consumer-related matters and policy issues.

5) The CCPA plays a role in promoting consumer awareness and education by providing the safeguard to the interest of consumers.

2)Consumer Rights: The Act assure the various rights of consumers including right to safety, right to information,right to heard,right to seek redressal, and the right to consumer education etc

3)Unfair Trade Practices: To protect the consumer interest against unfair and illigal trade practices and provides the mechanism for addressing the consumer grievances.

4)Misleading Advertisements: The Act addresses misleading advertisements and empowers the CCPA to take action against false or misleading advertisements.

5)Product Liability: It introduces provisions for product liability, making manufacturers, sellers, and service providers liable for defective goods or services.

6)E-commerce: In order to protect the interest of online consumers COPRA act introduced the new provisions related to E-Commerce This includes provisions for information disclosure, return of goods, and liability of e-commerce entities.

7)Consumer Dispute Redressal Commissions: The Act establishes Consumer Dispute Redressal Commissions at the district, state, and national levels to hear consumer complaints and provide speedy redressal.

Consumer dispute redressal agencies under consumer protection act

i) District Forum: A District Consumer Disputes Redressal Forum, is a District Forum,which is established under Consumer protection act. It quasi judicial body in India responsible for addressing consumer grievances and disputes.These forums are established at the district level.

A)Composition

The district forum shall consist of

a) A person who is, or has been, or is qualified to be a district judge who shall be it's present

b)Two other members, who have ability, integrity, experience in field of economics, law, commerce, accountancy, public affairs etc. One of whom shall be a woman

B) Jurisdiction:District forum deals with the complaint where the value of goods and services and compensation claimed does not exceed 50 lakh rupees(earlier less than 1 crore).

C)Appeal: The person may appeal against the order of district commission to the state commission within 45 days from the date of the order.

ii)State commission: In order to settlement of consumer disputes in state, the government established the state commission in respective states.

A)Composition

State commission consists of

a) A person who is, or has been a judge of high court appointed by state government, who shall be it's president.

b) Four other members, who have ability, integrity, experience in field of economics, law, commerce, accountancy, public affairs etc. One of whom shall be a woman.

B)Jurisdiction:State commission deals with the complaint where the value of goods and services and compensation claimed which exceed 50 lakh but does not exceeds 2 crore rupees (earlier limit 1crore to 10 crore).

C) Appeal: The person who is not satisfied against the order of state commission he can go for further appeal to national Commission within 30 days from the date of order. And And a revision petition has to filed within 90 days from the date of its receipt.

iii)National commission:The national Commission is highest and final level of consumer dispute redressal in India. It operates at the national level and is located in New Delhi.

A) Composition:

National commission consists of

a)A person who is or has been a judge of supreme court appointed by central government, who shall be it's president

b)Four other members, who have ability, integrity, experience in field of economics, law, commerce, accountancy, public affairs etc. One of whom shall be a woman.

B)Jurisdiction: National commission deals with the complaint where the value of goods and services and compensation claimed more than 2 crore rupees (earlier limit was 10 crore and above).

C) Appeal:A person may be appeal against order of national Commission to the supreme court within 30 days from date of the order.

Difference between consumer protection act 2019 and 1986

1)Scope

The 1986 Act primarily focused on regulating and addressing issues related to unfair trade practices and consumer disputes.

The 2019 Act expanded its scope to include e-commerce transactions, direct selling, product liability, and introduced stricter penalties for misleading advertisements and adulteration.

2)Consumer Commissions:

1986 Act: It had three-tier consumer dispute redressal commissions - District, State, and National commissions it does not have separate regulatory body.

2019 Act: The 2019 Act introduced the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce the rights of consumers, in addition to the existing commissions.

3)Product Liability:

The concept of product liability was not defined under 1986 act, consumer could approach civil court instead of consumer court.

2019 Act introduced provisions for product liability, making manufacturers and sellers liable for any harm caused to consumers due to defective products.

4)Mediation:

Consumer protection act 1986 did not emphasize alternative dispute resolution (ADR) mechanisms like mediation.

The 2019 Act encourages mediation and alternative dispute resolution to resolve consumer disputes quickly and efficiently.

5)pecuniary jurisdiction:

Under consumer protection act 1986 pecuniary jurisdiction limit for district forum up to 20 lakh, state commission 20 lakh to 1crore and national Commission above 1 crore.

Under new act of consumer protection 2019 limit for district forum is up to 50 lakh, state commission 50 lakh to 2 crore and national Commission more than 2 crore.

It’s important to note that the specifics of consumer protection laws can vary widely from country to country and even from one region or state to another within a country. These laws aim to create a fair and transparent marketplace where consumers can make informed choices and have recourse when they encounter problems with products or services.

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