Objective
- An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and
- settlement of consumers’ disputes and for matters connected therewith or incidental there to.
CONSUMER PROTECTION ACT
- CP Act 1986
- provided for a three−tier consumer dispute redressal machinery at the National (NCDRC), State ( State Commissions) and District levels ( District Forum)
SALIENT FEATURES OF CP ACT 2019
- Consumer Protection Councils
- Central Consumer Protection Authority (CCPA)
- Simplified Dispute Resolution Process
- Mediation
- Product Liability
- Rules on e−commerce and direct selling
- Penalty for adulteration of products/spurious goods
CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)
- To provide relief to a class of consumers
- Empowered to :−
- Conduct investigations into violations of consumer rights and institute Complaints / ProsecutionOrder recall of unsafe goods and servicesOrder discontinuance of unfair trade practices and misleading advertisements
- Impose penalties on Manufacturers/Endorsers/Publishers of Misleading Advertisements.
- Gazette Notification for establishment of CCPA under publication
SIMPLIFIED DISPUTE RESOLUTION PROCESS
- Deemed admissibility after 21 days of filing
- Empowerment of Consumer Commissions to enforce their orders
- State Commission & District Commission can now review their own orders.
- Appeals only on question of law after second stage
- Ease of approaching Consumer Commissions
- Filing from place of residence/work
- E−filing
- Videoconferencing for hearing
MEDIATION
- An Alternate Dispute Resolution (ADR) mechanism
- Reference to mediation by Consumer Commissions wherever scope for early settlement exists and parties agree for it.
- Mediation Cells to be attached to Consumer Commissions
- Panel of mediators to be selected by selection committee consisting of the President and a member of Consumer Commission.
- Mediation to be held in consumer mediation cell
- No appeal against settlement through mediation
PRODUCT LIABILITY
- A manufacturer or product service provider or product seller to be responsible to compensate for injury or damage caused by defective product or deficiency in services
- Basis for product liability action :−
- Manufacturing defectDesign defectDeviation from manufacturing specificationsNot conforming to express warrantyFailing to contain adequate instructions for correct use
- Service provided−faulty, imperfect or deficient
BENEFITS TO CONSUMERS
- The CP Act 1986− single point of access to justice, which is time consuming. Additional swift executive remedies provided through
CCPA
- Deterrent punishment to check misleading advertisements and adulteration of products
- Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services
- Ease of approaching Consumer Commissions and Simplification of adjudication process
- Scope for early disposal of cases through mediation
- Provision for rules for new age consumer issues: E−commerce & Direct selling
RULES & REGULATIONS
- General Rules
- Central Consumer Protection Council Rules
- Consumer Disputes Redressal Commissions Rules
- Appointment of President & Member in State/District Commission Rules
- Mediation Rules
- Model Rules for States
- E−Commerce Rules Regulations
- Consumer Commission Procedure Regulations
- Mediation Regulations
- Administrative control over State Commission & District Commission
- Regulations
