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TMI BlogThe Consumer Protection Act, 2019 (Replacing the 1986 Act)X X X X Extracts X X X X X X X X Extracts X X X X ..... The Consumer Protection Act, 2019 (Replacing the 1986 Act) X X X X Extracts X X X X X X X X Extracts X X X X ..... e and protect consumer rights in India. It has the authority to conduct investigations, initiate complaints, and take action against unfair trade practices, misleading advertisements, and defects in products or services. * The CCPA is empowered to: * File class action suits. * Impose penalties for misleading advertisements. * Issue recalls of unsafe goods and services. 2. Consumer Disputes Redressal Commissions (CDRCs): * The Act establishes three-tier Consumer Disputes Redressal Commissions at the district, state, and national levels to provide a faster and more efficient mechanism for consumer disputes. * District Commission: Deals with complaints involving claims up to ₹1 crore. * State Commission: Handles complaints ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between ₹1 crore and ₹10 crore. * National Commission: Deals with complaints above ₹10 crore. * The new Act also allows direct filing of complaints with the National Commission if the matter involves a significant issue of national importance. 3. E-Commerce and Online Platforms: * The 2019 Act provides specific provisions to regulate e-commerce platforms and online sellers, ensuring greater accountability in digital transactions. * Key features: * E-commerce platforms must disclose the seller's details, including their business name, contact details, and country of origin. * E-commerce entities must establish a grievance redressal mechanism within a specified period (within 1 month) to resolve consumer disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. * Liability of e-commerce platforms is now defined if the seller fails to deliver the goods or services. 4. Product Liability: * Product liability is introduced under the Act to hold manufacturers, service providers, and sellers accountable for defective products and services. * Consumers can seek compensation for injury, death, or damage caused by defective products or substandard services. * It also addresses defective goods, deficient services, and faulty or unsafe products that harm consumers. 5. Unfair Trade Practices: * The Act expands the scope of unfair trade practices by including misleading advertisements, fake reviews, and deceptive marketing. * It prohibits false advertising or misleading claims about products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and services. The CCPA can take action against misleading ads and impose penalties. * Consumers can file complaints against businesses indulging in unfair trade practices, and the redressal mechanisms are empowered to impose stricter penalties. 6. Consumer Rights: * The Act explicitly recognizes six consumer rights: * Right to be protected against unsafe goods and services. * Right to be informed about the quality, quantity, and price of goods and services. * Right to be heard and to be assured that consumer interests will receive due consideration. * Right to seek redressal against unfair trade practices and exploitation. * Right to consumer education. * Right to representation. 7. Alternate Dispute Resolution (ADR): * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Act encourages Alternate Dispute Resolution (ADR) mechanisms like mediation and conciliation to settle disputes without the need for long, expensive litigation. * A Consumer Mediation Cell has been introduced in the Consumer Commissions at the national, state, and district levels to help resolve disputes in an amicable manner. 8. Consumer Protection in Case of Unfair Contracts: * The Act strengthens consumer rights by making unfair contracts enforceable. It allows the Consumer Commission to intervene in cases where there are unfair contract terms, such as hidden charges or terms that disproportionately benefit the seller. 9. Compensation for Loss or Injury: * Consumers can claim compensation for loss or injury caused by defects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or deficiencies in products and services. The compensation is based on the harm suffered by the consumer. * The Act also defines the procedure for filing claims for compensation and the extent of liability of the manufacturer or service provider. 10. Penalties and Punishments for Misleading Advertisements: * The Act introduces provisions to deal with misleading advertisements. If an advertiser is found guilty of misleading or false advertising, they can be penalized. * Penalties: Fine up to ₹10 lakh for the first offense and ₹50 lakh for subsequent offenses. The publisher of the misleading ad could also be penalized. 11. Simplified Process for Consumer Complaints: * The Act simplifies the process for filing complaints. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Consumers can now file complaints electronically via online platforms or mobile apps. * Time-bound resolutions: The Consumer Commissions must resolve disputes within a specified time frame (up to 6 months for the district level, 90 days for the state and national level). 12. National Consumer Helpline (NCH): * The National Consumer Helpline is an initiative to provide consumers with a platform for quick and efficient grievance redressal. The helpline also assists consumers in filing complaints. Key Differences Between the 1986 Act and the 2019 Act:- Aspect Consumer Protection Act, 1986 Consumer Protection Act, 2019 Jurisdiction Separate forums at district, state, and national levels. Same structure but allows direct complaints ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the National Commission in certain cases. E-commerce No provision for e-commerce. Specific provisions for regulating e-commerce platforms and online sellers. Product Liability Not included. Introduces product liability, holding manufacturers and service providers accountable for defects. Mediation No provision for mediation. Encourages alternate dispute resolution through mediation and conciliation. Consumer Protection Authority No such authority. Creation of the Central Consumer Protection Authority (CCPA) with powers to take action against unfair trade practices. Consumer Rights Limited recognition of consumer rights. Explicit recognition of six consumer rights under the Act. Penalties for Misleading Ads Not explicitly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defined. Clear penalties for misleading advertisements, with specific fines. Conclusion: The Consumer Protection Act, 2019, is a comprehensive and progressive update to the 1986 Act, addressing the challenges posed by modern consumer markets, especially with the growth of e-commerce and digital transactions. The new Act enhances consumer protection, ensures quicker resolution of disputes, and provides more powerful remedies against unfair trade practices, defective products, and misleading advertising. Key features like product liability, the creation of the CCPA, regulation of e-commerce platforms, and the introduction of mediation for dispute resolution reflect the evolving nature of consumer rights and the need for a consumer-friendl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y environment in India.
The 2019 Act empowers consumers, protects their rights more effectively, and promotes transparency and fairness in business transactions. X X X X Extracts X X X X X X X X Extracts X X X X
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