With the digital age being ushered in and there being a supersonic boom in the way Indians shop online, the importance of protecting consumer rights has only increased. Keeping this at the foundation, the Parliament passed the landmark Consumer Protection Bill, 2019 which aims to provide timely and efficient redressal to consumer disputes. The Bill was passed on July 20th, 2020 and has replaced the Consumer Protection Act, 1986.
Here are 5 things you need to know about the Consumer Protection Act, 2019:
1. What is the new Act?
The Consumer Protection Act, 2019 came into force on 20th July, 2020. It replaced the more than three decade old Consumer Protection Act, 1986 to provide a timely administration and settlement of consumers’ disputes.
2. More power to Consumers
The new act empowers and protects consumers’ rights through various notified rules and provisions related to:
- Consumer Protection Councils
- Consumer Disputes Redressal Commissions
- Mediation
- Product Liability
- Rules on e-commerce & direct selling
- Penalty for adulterated & spurious goods
3. Rules for prevention of unfair trade practices by e-commerce platforms
- Every e-commerce entity to provide information about returns, refunds, grievance redressal mechanism, etc. including country of origin
- Acknowledge the receipt of customer complaint within 48 hours
- Redress the complaint within 1 month from the date of receipt
4. Central Consumer Protection Authority established
CCPA is empowered to:
- Conduct investigations into violations of consumer rights & institute complaints/ prosecutions
- Order recall of unsafe goods & services
- Order discontinuance of unfair trade practices & misleading advertisements
- Impose penalties on manufacturers/ endorsers/ publishers of misleading advertisements
5. Simplify dispute resolution process
- State and District Commissions can now review their own orders
- Empowerment of Consumer Commissions to enforce their orders
- Ease of approaching Consumer Commissions through e-filling of complaints and video conferencing for hearing
- Demand admissibility after 21 days of filing; appeals only on questions of law after second stage
Other provisions:
- Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services
- Punishment of manufacturer for sale of adulterant/ spurious goods, suspension of license upto two years in case of first conviction and cancellation of license for subsequent conviction
