In an increasingly complex marketplace, the Consumer Protection Act becomes essential, addressing issues such as product safety, accurate information, and fair redress for consumers, safeguarding their interests in an ever-evolving consumer landscape.
Introduction
Consumer rights and protection have always been at the forefront of discussions in any thriving economy. In a world where industrialization and international trade have exponentially expanded our access to a wide array of products and services, the need to protect consumers has become more crucial than ever. The Consumer Protection Act of 1986, introduced in India, was a significant step toward safeguarding the rights and interests of consumers. Over time, it underwent significant changes, culminating in the Consumer Protection Act of 2019. In this article, we’ll explore the key provisions of these acts and discuss the steps consumers can take to file a complaint.
Table of Contents
The Consumer Protection Act 1986
The Consumer Protection Act 1986, a landmark legislation, was implemented with the primary goal of promoting and protecting consumer rights. It identified six essential rights that every consumer should be entitled to:
- The right to be protected against products that pose hazards to life and property.
- The right to be informed about the quality, quantity, potency, standard, and price of goods, protecting consumers against unfair trade practices.
- The right to access goods at competitive prices.
- The right to be heard and to have consumer interests considered in relevant forums.
- The right to seek redress against unfair trade practices and exploitation.
- The right to consumer education.
Consumer Protection Act 2019
The Consumer Protection Act, 2019 replaced the 1986 act and was published in the Official Gazette on 9th August 2019 after receiving presidential assent. It came into force in July 2020. This act is a result of a parliamentary initiative led by the late Mr. Ram Vilas Paswan, the Minister of Consumer Affairs, Food, and Public Distribution. Its primary objective is to address consumer grievances and ensure timely redressal.
This act introduced significant changes to address the evolving consumer landscape.
Key Highlights of the Consumer Protection Act 2019
Expanded Scope: One of the notable features of the 2019 Act is its broader scope in addressing consumer concerns. It recognizes offenses such as providing false information about the quality or quantity of goods or services and misleading advertising. Additionally, it outlines actions to be taken if goods and services are found to be “dangerous, hazardous, or unsafe.”
Definition of a Consumer: The Act defines a consumer as a person who purchases goods or avails of services for personal use, excluding those who obtain goods for resale or commercial purposes. It covers transactions through various means, including offline and online channels, electronic platforms, teleshopping, multi-level marketing, and direct selling.
Provisions of the consumer Protection Act 2019
Central Consumer Protection Authority (CCPA): The Act establishes the CCPA, responsible for protecting consumer rights. The CCPA has the authority to investigate violations of consumer rights and unfair trade practices, even on its own initiative or in response to complaints. It can impose penalties, order the recall of goods, and seek reimbursement for consumers.
Rights of Consumers: The Act grants consumers six fundamental rights, including the right to safety, information, choice, being heard, seeking redressal, and consumer awareness.
Prohibition and Penalty for Misleading Advertisement: The Central Consumer Protection Authority (CCPA) have the power to impose fines on the endorser or manufacturer up to 2-year imprisonment for misleading or false advertisement. Repeated offense may attract a fine of Rs 50 lakh and imprisonment of up to 5 years.
Consumer Disputes Redressal Commission: The Act introduces Consumer Disputes Redressal Commissions (CDRCs) at the national, state, and district levels. These commissions handle complaints related to overcharging, unfair trade practices, sale of hazardous goods, and defective goods or services.
Jurisdiction: Depending on the value of the complaint, different CDRCs have jurisdiction. The National CDRC hears cases exceeding Rs. 10 crores, the State CDRC for cases between Rs. 1 crore and Rs. 10 crores, and the District CDRC for cases up to Rs. 1 crore.
Product Liability: The Act outlines the concept of product liability, making manufacturers, service providers, and sellers liable for harm or injury caused by defective goods or deficient services. Consumers must establish the conditions for defect or deficiency to claim compensation.
Major Differences Between The Two Acts
Here are the key differences between the two acts:
Online Transactions: Unlike the 1986 Act, the 2019 Act incorporates provisions for online transactions and teleshopping. It covers goods or services acquired through online transactions, electronic means, teleshopping, direct selling, and multi-level marketing.
Central Consumer Protection Authority: The 1986 Act did not have a provision for the Central Consumer Protection Authority, while the 2019 Act established this authority to regulate issues related to consumer rights violations, unfair trade practices, false or misleading advertisements, and to protect and promote consumers’ rights as a class.
How to File complaint under this act?
- File the complaint within two years of purchasing the product or service.
- Clearly state the problem, which could involve product exchange, replacement, or compensation for mental or physical distress.
- Keep all relevant receipts and bills attached to the complaint letter.
- Send the complaint to the consumer forum via email, registered post, fax, or hand-delivery, ensuring acknowledgment is received.
- The complaint can be submitted in any preferred language.
- Hiring a lawyer is not mandatory.
Conclusion
The evolution of consumer protection laws in India reflects the changing dynamics of consumerism in the modern era. While the Consumer Protection Act of 1986 laid the foundation for safeguarding consumer rights, the 2019 version has adapted to the digital age and aims to provide consumers with greater protection. Knowing your rights as a consumer and the steps to file a complaint is crucial in ensuring a fair and just marketplace for all.
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