Consumer Protection Act 2019
Consumer Protection Act 2019
Author : Mayank Raj
Introduction –
Jeff Bezos once said, “We see our customers as invited guests to a party and we are the hosts, it’s our Job every day to make every important aspect of the customer experience a little bit better.”
The digital age has showed an immensely a fresh new era of e-commerce and bring a new customer exceptions. The digital age has brought an easy access, increased choices and time saving modes of shopping for the customers.
On 06-08-2019 parliament passed the Consumer Protection Bill 2019 and replace the previous Consumer Protection Act 1986. On 09-08-2019, the president of India gives the assent to the Consumer Protection Act 2019 and it comes in the force by the notification of the Central Government.
The purpose of the Consumer Protection Act is to providing timely, effective administration and settlement of consumer disputes & related matters. The government brought new act instead of an amendment because to provide enhanced protection to the consumer into the booming of e-commerce industry and the modern method of providing goods and services.
Because of the spray of digitalization, the old Act had certain difficulties and required quick consideration. In any case, the opportunity has arrived where shoppers can observer and love the new Consumer Protection Act, 2019 (from now on alluded as 2019 Act) that has as of late supplanted the three-decade old Consumer Protection Act, 1986 in the future alluded as the 1986 Act. The recorded day was 6 August 2019 when the administration passed the milestone Consumer Protection Act, 2019.
The 1986 Act comprised some colossal lawful blemishes which the 2019 Act proposes to get comfortable. The 2019 Act proposes a huge number of measures and fixes the current principles present in 1985 Act to additionally upgrade customer government assistance. This article will cause the peruses to comprehend the key parts of the Consumer Protection, 2019, contrast and the 1986 Act.
The scope of the definition of Consumer is expends and it includes the involvement of the online consumer transactions and it covers the E-Commerce business in the act 2019.
Certain changes in Consumer Redressal forums brought by Consumer Protection Act 2019 –
1. E-Commerce & False Advertisement – In this the definition of “Consumer” is changed in the Consumer Protection Act 2019. It includes the consumer who purchases from e-commerce platform. Previously, it does not include the consumer who by products online and known it defined in the 2019. Also, there is separate provisions for celebrities who endorse goods & services and covered under the provisions of false and misleading advertisement. Mis-leading advertisement shall also mean deliberately hiding important information. The CCPA also discussed later also regulates false & misleading advertisement.
2. Enhancement of Pecuniary Jurisdiction – In this, there is revised in the Pecuniary limits have been fined under the new Consumer Protection Act 2019.
According to this, under the District Forum entered in the dispute of the consumer up to 1CR and previously it was up to 20 L in this.
The State Commission can enter in the dispute of the consumer upto 1 CR to 10 CR, earlier it was up to 20 L TO 1 CR
The National Commission can enter into the dispute of the consumer above the 10 CR, earlier it was up to above 1 CR.
3. E-filling of Complaints – The new Consumer Protection Act 2019 enacting the provision for consumer to file complaints electronically and hearing or examining through video conferencing. The new act provides flexibility to the consumer to file complaints the jurisdictional consumer forum located at the place of residence or work for the consumer. Although the current practice of filling the complaint at place of purchase of goods or registered place of office.
4. Establishment of Central Consumer Protection Authority – The establishment of CCPA with the wide power of enforcements in the new Consumer Protection Act 2019. The CCPA will have a investigating wing, that headed by Director General inquiry and investigating into consumer law violation. The CCPA has been granted wide power to take suo moto, recall products, order reimbursement of the price of the goods/services, cancel licenses and file class action units’ suit, if a consumer complaint affects more than individual.
5. Product Lability & Penal Consequences – The New Act has presented the idea of item obligation and brings inside its degree, the item maker, item specialist co-op and item merchant, for any case for pay. The term ‘item merchant’ is characterized to incorporate an individual who is associated with putting the item for a business reason and as such would incorporate online business stages too. The safeguard that internet business stages only go about as ‘stages’ or ‘aggregators’ won’t be acknowledged. There are expanded obligation hazards for makers when contrasted with item specialist co-ops and item dealers, taking into account that under the New Act, makers will be subject in item risk activity even where he demonstrates that he was not careless or deceitful in making the express guarantee of an item. Certain exemptions have been given under the New Act from risk claims, for example, that the item vender won’t be obligated where the item has been abused, adjusted or altered.
6. Unfair Trade Practice – This act also provides specific definition of unfair trade practice. In this it includes sharing personal that given by the costumer in the confidence such disclose of personal information only happen when provisions by other law.
7. Penalties for misleading advertisement – The CCPA may impose 10L penalties on a manufacture or a endorse or a false misleading advertisement. And sentence imprisonment of 2 years for the same. If the subsequent offence happened than the fine will be extended to 50 L and imprisonment upto 5 years. And the period of 1 year’s prohibition by the CCPA for endorsing that misleads the others. For every subsequent offence the period of prohibition extended up to 3 years.
8. Provision for Alternate Dispute Resolution –The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.
9. Appeals – The order of District Commission to State Commission it should done Within 45 Days (earlier 30 days), Fees shall be 50% of Pre-deposit (earlier 25,000 INR) and no appeal applicable if decision passed through mediation.
The order of State commission to National Commission it should done Within 30 Days, Fees shall be 50% of Pre-deposit (earlier 35,000 INR) & Ex-parte orders.
The order from National Commission to Supreme Court it should done Within 30 days, Fees shall be 50% of Pre-deposit (earlier 50,000 INR) & Ex-parte orders.
Challenges for the Future –
Central Consumer Protection Authority (CCPA) has been set up to advance, ensure and improve buyer rights. The settle will be in NCR and local workplaces will be chosen by the legislature. The authority will control the infringement of purchaser rights, unreasonable exchange rehearses, and misdirecting ads. To authorize and improve this power will be devoted undertaking for the administration and its suggestion will absolutely be significant for 2019 Act. While it is praiseworthy activity yet it is muddled concerning how this position will work and certain capacity identifying with examinations and requests. There is a cover between the elements of chief General while considering the analytical wing and search and seizure capacities. CCPA is engaged to arrange review of merchandise, repay cost and issue bearings and punish makers or endorsers. Strikingly, bid against such requests must be favoured before the public Commission. The conditions or the models under which National Commission will engage such cases is till indistinct. It is hazy whether the current cases will be moved because of progress in financial ward. Notwithstanding, there are hypotheses that solitary new cases will fall under the new ward.
Conclusion –
We can say that Consumer Protect Act, 2019, the way toward drafting was begun in 2010 is probably the sincerest advance taken by the focal government for upgrading purchaser rights and quick conveying of equity. The new Act addresses may perspectives, for example, Mediation and E-business which the world was uninformed in 1986. In this way, it was imperative to revise the demonstration when digitalization has changed the manner in which a purchaser direct online exchanges and method of shopping has moved from disconnected to on the web. Absolutely 2019 Act is a positive advance towards reconstruction, improvement and upgrading purchaser rights. Financial improvements are occurring each year and e can perspective new changes to 2019 go about also. Be that as it may, the genuine usage of 2019 Act will be found in coming occasions by examining how much alleviation it offers to the purchasers.[1]
[1] https://www.drishtiias.com/daily-updates/daily-news-analysis/consumer-protection-act-2019
https://www.prsindia.org/billtrack/consumer-protection-bill-2019
