The new Consumer Protection Act, 2019, which became effective from 20th July 2020 has been strategically designed to empower consumers while safeguarding their rights with its various regulations and stipulations. The act promises a swifter and less time-consuming process than its former version, the Consumer Protection Act, 1986 which provided only single-point access to justice and was thus, tedious.
The Central Consumer Protection Authority (CCPA)
The new Consumer Protection Act, 2019 forms the Central Consumer Protection Authority (CCPA) whose primary objective is to encourage, uphold and enforce consumer rights. It possesses the power to carry out investigations into violations of consumer rights and institute complaints or prosecution. Additionally, it can order the recall of unsafe goods and services, discontinuation of unfair trade practices and misleading advertisements, and impose penalties on manufacturers, endorsers, or publishers of deceptive advertisements.
Stipulations on E-Commerce and Unfair Trade Practices
Under the Consumer Protection Act, 2019, the government will introduce the Consumer Protection (E-commerce) Rules, 2020. These necessitate e-commerce entities to provide consumers with specific information such as return, refund, exchange, warranty, shipping, modes of payment, grievance redressal mechanism, payment security, charge-back options, and country of origin. This crucial information would enable consumers to make informed purchase decisions. Moreover, these platforms are obligated to acknowledge any consumer complaint within 48 hours and resolve it within one month from receipt. Furthermore, they must appoint a grievance officer for handling consumer complaints.
Implications for Sellers and Manufactures under the Act
The rules strictly mandate that sellers cannot refuse product returns or service withdrawal or withhold refunds if goods or services are defective, deficient, delivered late, or do not meet platform descriptions. The act also restricts e-commerce companies from unjust price manipulation for gaining unreasonable profits. Under the act, a manufacturer or product service provider or product seller can be legally held accountable to compensate for damage caused by faulty products or deficiency in services.
Punishment for Manufacture or Sale of Adulterated/Spurious Goods
In case of conviction for the manufacture or sale of adulterated/spurious goods, the court may suspend any licence issued to the person for up to two years. In case of a second or subsequent conviction, the licence may be permanently cancelled.
Alternate Dispute Resolution Mechanism of Mediation and Simplification Process
The Consumer Commission can refer a complaint for mediation if there is scope for an early settlement and both parties consent. Depending on the case, video-conferencing can be used for hearings. Further, consumer complaints will be deemed admissible if not decided within 21 days. The updated act also allows consumers to file complaints electronically and in consumer commissions located where they reside.
Additional Rules and Structure of the Central Consumer Protection Council (CCPC)
As per the Consumer Disputes Redressal Commission Rules, there is no fee for filing cases up to Rs. 5 lakh. Any amount due to unidentifiable consumers will be credited to the Consumer Welfare Fund (CWF). The Central Consumer Protection Council (CCPC), headed by the Union Minister of Consumer Affairs, Food and Public Distribution, will serve as an advisory body on consumer issues. It includes the Minister of State as Vice Chairperson and 34 other members from diverse fields, with a tenure of three years. The council will have a representative Minister-in-charge of consumer affairs from two States from each region- North, South, East, West, and North-East Region. This broad representation aims to give a comprehensive coverage to consumer issues across the country.
Last Modified: February 8, 2024