Consumer Protection Act, 2019
Notably, the 2019 Act, repeals the previous consumer protection legislation which had been in effect since 1986 (1986 Act).
Key Highlights of the New Act:
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Covers E-Commerce Transactions: The New Act has widened the definition of ‘consumer’.
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The definition now includes any person who buys any goods, whether through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.
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The earlier Act did not specifically include e-commerce transactions, and this lacuna has been addressed by the New Act.
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E-Filing of Complaints: The New Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. This is unlike the current practice of filing it at the place of purchase or where the seller has its registered office address.
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Rights of consumers: Six consumer rights have been defined in the Bill, including the right to: (i) be protected against marketing of goods and services which are hazardous to life and property; (ii) be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) be assured of access to a variety of goods or services at competitive prices; and (iv) seek redressal against unfair or restrictive trade practices.
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Central Consumer Protection Authority: The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. The CCPA will have an investigation wing, headed by a Director- General, which may conduct inquiry or investigation into such violations.
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Penalties for misleading advertisement
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Consumer Disputes Redressal Commission- Consumer Disputes Redressal Commissions (CDRC) will be set up at the district, state, and national levels.
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Product liability: Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service. To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Bill