The Consumer Protection Act, 2019

Objective

• 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 thereto.

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 Fora)

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 / Prosecution
  • Order recall of unsafe goods and services
  • Order discontinuance of unfair trade practices and misleading advertisements
  • Impose penalties on Manufacturers/Endorsers/Publishers of MisleadingAdvertisements
• 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 defect
  • Design defect
  • Deviation from manufacturing specifications
  • Not conforming to express warranty
  • Failing 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

Rules

• 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