CONSUMER PROTECTION ACT 2019 – NEW CONSUMER PROTECTION LAW KEY HIGHLIGHTS IN BRIEF

In the present technology driven age, the market is flooded with options to boost customer inflow through digital branding aiming to achieve higher and higher sales. Digitization has become a new global norm which has facilitated customers and corporates with convenience. Globalization has reached new levels furthering eradication of borders in terms of business.

Apropos to aforesaid, it equally important to reinvigorate such existing law which are contemporarily démodé. Consequently, the new Consumer Protection Law in India i.e. Consumer Protection Act, 2019 (Hereinafter to be referred as “Consumer Protection Act”) is in the spirit of such vision.

The Consumer Protection Act 2019 has been enacted with an aims provided as under:-

• a. “to provide for protection of the interests of consumers“;
• b. “to establish authorities for timely and effective administration and settlement of consumers’ disputes“.

With such letter and spirit, the Consumer Protection Act was passed by the Parliament of India on 6 August 2019 and published in the official gazette on 9 August 2019. The Consumer Protection Act 2019 has repealed and replaced the Consumer Protection Act 1986

SALIENT FEATURES OF CONSUMER PROTECTION ACT 2019

Key highlights of the Consumer Protection Act 2019 are as follows –

A. It has enhanced the scope of covering various Consumer in present age of digitization by expanding the definition of ‘consumer’ by including the aspect of E commerce transactions.

B. The new law through provisions of Consumer Protection Councils, Consumer Disputes Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale of products containing adulterant / spurious goods aims to protect the interest of the common people.

C. It aims at establishment of the Central Consumer Protection Authority (CCPA) who is empowered to investigate the violations of consumer rights and initiate appropriate complaints, direct recall of unsafe goods and services, to direct discontinuance of unfair trade practices and misleading advertisements, imposing penalties on manufacturers or endorsers or publishers of such misleading advertisements.

D. It also aims to admonish and eradicate unfair trade practice prevailing at e-commerce platforms. Under the new Consumer Protection Law, the e-commerce organisations are bound to disclose information related to return, refund, exchange, warranty and guarantee, country of origin, manufacturing etc. so that the Consumers can make a decision based on full set of facts.

E. The New Consumer Protection Act 2019 has also simplified the adjudication process wherein the State and District Commissions have been empowered to review their own orders, e-filing / online filing is in place and video conferencing facilities are also in place to match the pace of technology with law.

F. The New Consumer Protection Law has enhanced the Pecuniary Jurisdiction of the Consumer Commissions who shall entertain a dispute on basis of value of goods and services undertaken having limitation as following-

1. Upto One Crore Value – District Consumer Forum
2. More than One Crore but less than Ten Crore – State Commission
3. More than Ten Crore – National Commission

G. The New Consumer Protection Act 2019 comes with a new concept of product liability which covers the product manufacturer, product seller and product service providers. Now anyone who places a product for commercial purpose i.e. sale is covered under the definition of ‘product seller’ which also includes e-commerce platforms. Manufacturers are in a way bound with strict liability towards their manufactured products but the legislators have also made the provisions of exceptions in counterbalance on the grounds such as product misuse, altered or modified.

H. The New Consumer Protection Law has the provisions empowering Central Consumer Protection Authority with the power of imposing penalty of up to INR One Crore upon manufacturer or endorser of misleading or false advertisments. In case of further violation, it can be extended up to INR Five Crore.

I. Under the New Consumer Protection Act 2019, the Central Consumer Protection Authority has been empowered with penal provisions wherein it can sentence 2 years such aforesaid manufacturers or endorser for misleading or false advertisements. In case of further subsequent violation, it may be extended up to 5 years. It may also restrain such manufacturer or endorser for such advertisement.

CONCLUDING REMARKS

No matter how well a law is enacted, it depends on how the legislative intent is perceived and brought into effect by the acting authorities and judicial forums. Every law is tested with time and challenges. We are guided by principles enunciated by our freedom fighters wherein you might have heard these words – ‘…wiping out tears of the poorest of the poor…’

I expect that this new Consumer Protection Act will stand tall in its test and will do justice to the genuine plights of Consumers in India.

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