Consumer Protection Act India, Key Features and Benefits

The Consumer Protection Act of India is a transformative piece of legislation designed to enhance the rights and safety of consumers in a fast-evolving market environment. In August 2023, Consumer Protection Act (CPA) 2019 was enacted by replacing the older Consumer Protection Act 1986. The new Act addresses new-age challenges brought on by e-commerce, direct selling, and digital transactions. This act introduces a range of protections, including mechanisms for handling consumer grievances, ensuring transparency in online sales, and holding manufacturers and endorsers accountable through provisions on product liability and misleading advertisements. This article will cover every nooks and corners of Consumer Protection Act of India. Let’s dig deep inside.

What is Consumer Protection Act, 2019?

The Consumer Protection Act, 2019 marks a significant advancement in consumer rights within India, providing modern protections aligned with current market and technological trends. It adapts to the complex challenges of e-commerce, direct selling, and digital transactions that are now central to consumer behavior. Its goal is to enhance transparency, hold businesses accountable, and protect consumers from exploitation and unfair practices. This act replaced the decade old ‘Consumer Protection Act, 1986′.

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Who is a consumer?

A consumer is defined as an individual who purchases goods or utilizes services in exchange for payment. This term specifically excludes individuals who acquire goods for the purpose of reselling or use products and services for commercial or business purposes.

Consumer Protection Act, 1986

Consumer Protection Act, 1986 (COPRA) was enacted in the year 1986 to protect the interests of consumers in India. It was the first consumer law in India to protect consumers from unfair trade practices, defective goods, and unsatisfactory services. The important facts about 1986 Act are given below:

• COPRA, 1986 was made for consumer councils establishment and other related authorities for the settlement of consumer’s grievances and matters connected there with it.
• This act was passed in 1986, October and came to force on 24th December, 1986.
• COPRA 1986 was amended three times in 1991, 1993 and 2002 to make it more consumer friendly. Out of these Consumer Protection (Amendment) Act, 2002 was the most important
• Consumer Protection Act, 1986 was a single point of access to justice, which was very time consuming.
• It provided for a three-tier consumer dispute redressal machinery at National, State as well as District levels.

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What is Consumer Protection (Amendment) Act, 2002

• It came into force on March 15, 2003 coinciding with World Consumer Rights Day.
• it contains ample provisions for large public interest making it more effective and purposeful.
• Although, it amended Act of 1986 but it did not address modern consumer issues.

Major Provisions of Consumer Protection Act, 2019

1. Central Consumer Protection Authority (CCPA)

• The Act of Consumer Protection, 2019 establishes the Central Consumer Protection Authority (CCPA), an authority empowered by the central government to promote, protect, and enforce consumer rights.
• Regulatory Scope: Central Consumer Protection Authority (CCPA) addresses unfair trade practices, consumer rights violations, and misleading advertisements, ensuring accountability.
• Investigation Wing: The Central Consumer Protection Authority (CCPA)’s investigation unit, led by a Director-General, investigates consumer rights violations.
• Penalties for Misleading Advertisements: Central Consumer Protection Authority (CCPA) can impose fines on manufacturers or endorsers, up to ₹10 lakh, and up to 2 years imprisonment for misleading ads. For repeated offenses, fines increase to ₹50 lakh and imprisonment to 5 years.

2. Consumer Disputes Redressal Commissions (CDRCs)

• The Consumer Disputes Redressal Commission (CDRCs) are established at district, state, and national levels to resolve consumer grievances efficiently.
• Deemed Admissibility of Consumer Disputes Redressal Commission (CDRCs): Complaints are automatically accepted if not addressed within 21 days of filing.
• Filing Options in Consumer Disputes Redressal Commission (CDRCs): Consumers can file complaints through three methods:
  • Filing from their place of residence or work,
  • Online through e-filing, or
  • Through video conferencing for remote hearings.
• Types of Complaints: Consumer Disputes Redressal Commission (CDRCs) handle cases involving unfair trade practices, defective goods, overpricing, deceptive pricing, and sale of hazardous goods.
• Appeals Structure in Consumer Disputes Redressal Commission (CDRCs): Appeals progress from District CDRC to State CDRC, then to National CDRC, with the final appeal heard by the Supreme Court.
• Jurisdiction by Claim Value: District Consumer Disputes Redressal Commission (CDRCs) handle claims up to ₹1 crore, State CDRCs between ₹1 crore and ₹10 crore, and National CDRCs above ₹10 crore.

3. Mediation

• This act introduces Mediation Cells within Consumer Commissions for quick, voluntary settlement of disputes, where a panel of mediators appointed by the commission assists in dispute resolution.
• Finality of Mediation: Once a case is settled in mediation, it cannot be appealed.

E-commerce Platforms

• The Act of Consumer Protection, 2019 requires e-commerce platforms to establish consumer redressal mechanisms.
• Country of Origin: As per the Consumer Protection Act, 2019, Goods listed on e-commerce platforms must disclose the country of origin to aid informed consumer decisions.
• Complaint Acknowledgment: E-commerce platforms must acknowledge complaints within 48 hours and respond promptly.

4. Product Liability

• Product Liability provisions in CPA, 2019 hold manufacturers, service providers, or sellers accountable for defective products or services that cause harm.
• Types of Defects Covered under Consumer Protection Act, 2019:
  • Manufacturing defects,
  • Design flaws,
  • Non-conformance to manufacturing specifications,
  • Breach of warranty,
  • Lack of clear usage instructions, and
  • Faulty or inadequate service.

This act offers enhanced protections and establishes robust frameworks for consumer safety, fair trade practices, and accessible grievance redressal in today’s diverse marketplace.

Key Features of Consumer Protection Act, 2019

The Consumer Protection Act, 2019 is designed to empower consumers by safeguarding their rights through various rules and provisions. This updated law includes several key elements to support consumer rights:

• Enhanced Consumer Rights: The act strengthens existing rights to safety, information, and redressal, while adding specific protections for e-commerce transactions. It requires transparency in product details, fair pricing, and secure purchase processes, supporting informed decision-making for consumers.
• Central Consumer Protection Authority (CCPA): The CCPA was established to oversee and enforce consumer rights across the country. It holds the power to investigate complaints, act against misleading advertisements, and initiate product recalls as needed to protect public interest.
• Product Liability Provisions: For the first time, the act holds manufacturers, sellers, and service providers accountable for harm caused by defective products, misleading advertisements, or poor-quality services, enabling consumers to claim compensation for damages.
• Simplified Complaint Process via e-Daakhil: The e-Daakhil portal offers a streamlined online platform for consumers to file complaints, improving access to justice and expediting dispute resolution across district, state, and national levels.
• Prevention of Unfair Trade Practices: The act empowers the CCPA to impose penalties on misleading advertisements and deceptive marketing practices, with strict fines to ensure fair practices across industries.

Rights defined in the Consumer Protection Act, 2019

This act defined 6 consumer rights that are given below:

• Right to be protected against the marketing of goods, services or products, that are hazardous to life and property
• Right to be informed regarding the potency, purity, quality, quantity, standard and price of goods, services or products
• Right to be assured
• Right to be heard
• Right to seek redressal against restrictive trade practices or unfair trade practice
• Right to consumer awareness

Consumer Protection Act, 2019 Conclusion

In conclusion, the Consumer Protection Act, 2019 stands as a comprehensive and forward-looking reform that strengthens consumer rights and safeguards against unfair practices. By addressing contemporary issues like digital transactions, e-commerce, and misleading advertisements, it provides consumers with a powerful framework to seek redressal and ensures accountability from businesses. Overall, this act enhances consumer empowerment and promotes responsible business practices, making it a cornerstone of consumer rights in India’s dynamic economy.

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