New Consumer Protection Act gives more power to consumers: Rekha Mahajan
Stating the new law as “revolutionary” Secretary BJP J&K UT Rekha Mahajan said that Consumer Protection Act, 2019 which replaces the more than three decades old Consumer Protection Act, 1986 provides for setting up of the CCPA (Central Consumer Protection Authority) which will carry out inquiries and investigation in matters relating to consumer rights, unfair trade practices and misleading advertisement seeks to make corporates accountable for the quality of goods being sold or manufactured by them.
The new Act broadens the definition of consumer, by recognising those engaged in offline as well as online multi-level and telemarketing transaction. The Consumer Protection Act of 2019 is really consumer-friendly. In the past, the consumer had to file his complaint at the city where the company had an office, but now the consumer can file the case in his city. This is very helpful to the online shoppers who bought products from sellers in another city, and in case of any defect, they had to run to the sellers’ city to file a case. In the same way, the consumers of transport services, who had booked goods from outside their present city, or when booked goods while transferring to another city had to face a lot of harassment because they had to go to the transporter’s city to file a case.
This new Consumer Protection Act will bring smiles to the faces of the consumers as it would help them immensely. Now, a consumer can institute a complaint from where he resides or from where he works for gain. She pointed out that Under the earlier Act, complaints could be initiated only in the place where the transaction took place and the opposite party needs to deposit 50% of the amount ordered by the District Commission before filing an appeal before the State Commission, which would curb the practice of filing frivolous appeals. dispute
The significant note for customers under this Act is that there will be no fee for filing cases up to Rs 5 lakh. There are provisions for filing complaints electronically, credit of amount due to unidentifiable consumers to the Consumer Welfare Fund (CWF).
She added that under this Act, every e-commerce entity is required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, the security of payment methods, charge-back options, etc., including country of origin, which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage on its platform.
The new Consumer Protection Act 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail term for adulteration and misleading ads by firms. The bill, among other things, proposes setting up of a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers as a class. The CCPA would make interventions to prevent consumer detriment arising from unfair trade practices. The agency can also initiate class action, including enforcing recall, refund and return of products.
The Bill also envisages a simplified dispute resolution process which has provision for Mediation and e-filing of cases. The Consumer will be able to file cases in the nearest commission under the jurisdiction of which he resides. Consumers can file complaints from anywhere and they do not need to hire a lawyer to represent their cases. For mediation, there will be strict timeline fixed in the rules.
On misleading advertisements, there is provision for a jail term and fine for manufacturers. There is no provision for jail for celebrities but they could be banned for endorsing products if it is found to be misleading. For the first time there will be an exclusive law dealing with Product Liability. A manufacturer or product service provider or product seller will now be responsible to compensate for injury or damage caused by defective product or deficiency in services.
There is also a provision for class action lawsuit for ensuring that the rights of consumers are not infringed upon. The authority will have the power to impose a penalty on a manufacturer or an endorser of up to 10 lakh rupees and imprisonment for up to two years for a false or misleading advertisement.
Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services. The Bill also enables regulations to be notified on E-commerce and direct selling with a focus on the protection of interest of consumers.
