and personal services.
All goods and services except free and personal services. It also includes all modes of transactions[eg-online, teleshopping etc.]
No Provision
It provides scope for holding the manufacturer, service provider and seller liable. It also enables the consumer to obtain compensation
No Provision
Established the CCPA, which has the power to investigate, recall, and impose penalties on manufacturers, distributors, and sellers for misleading advertisements and unfair trade practices.
No Provision
Mediation cells will be attached to
commissions at the three levels – district, state and national.
No Provisions
It empowers the central government to prescribe rules to prevent unfair trade practices in e-commerce and direct selling.
No Provision
Establishes Central Consumer Protection Authority[CCPA] to protect and enforce the
rights of the consumers.
State: Rs 20 Lakh to Rs. 1 Crore.
National: Above Rs. 1 Crore
(The pecuniary value was calculated on the total value of the goods/services.)
District: Up to Rs. 1 Crore
State: Rs. 1 Crore to Rs. 10 Crore
National: Above Rs. 10 Crore
(The pecuniary value will be calculated on the actual value paid for the goods/services)
1. Seek justice:
2. Penalise adulteration
3. Ensure product liability
4. Timely disposal of cases: The Act provides scope for mediation. It will enable easy disposal of cases and reduce hassle for the consumers.
5. Increased ambit of protection: It covers the new emerging sectors such as E-commerce within its ambit.
6. Flexibility to consumers
7. Fixed time period:
1. The Act does not include ‘healthcare ’ as one of the services.
2. As per the Act, CCPA would be the central regulator for consumer issues. But other sectoral regulators also exist such as TRAI in the telecom sector and IRDAI in the insurance sector. It may lead to overlapping jurisdiction between the regulators.
3. The consumer has a multiple number of options to register complaints such as consumer courts, councils, sector regulators etc. It may end up confusing the consumers.
4. The commissions lack the staff to handle the increasing workload. For instance, 362 posts of the consumer grievance redressal commissions are lying vacant in 596 districts. The new provision in the Act, such as 21-day deadline to admit complaints will further add to the workload.
5. The Act does not specify the minimum qualifications for the members and the President of the CDRC. It rather delegates this power to the Central Government. If the Commission are made to have only non-judicial members, it would lead to a violation of the Separation of Powers Doctrine. Prescribing these qualifications through Rules would also lead to an excessive delegation of legislative powers.
6. The 1986 Act established selection committees(chaired by a judicial member) to appoint the members of the commission. But the new Act leaves it to the Central government to decide on the method of appointment. This may hamper the independent functioning of these commissions.
7. A number of recommendations of the Parliamentary standing committee have remained unaddressed, such as the right to terminate a contract based on the poor quality of goods supplied/services rendered has not been included under the list of rights.
8. Inclusion of e-commerce within the ambit of the Act may impact the sector negatively. For example, it may lead to a reduction in FDI, may reduce India’s bargaining power in multilateral bodies etc as the Act will result in increased regulation of the sector.
9. Many consider holding the endorsers liable for unfair business practices as draconian because the endorsers cannot be held responsible for running the company.
Consumer Protection: Government Initiatives 1. National Consumer Helpline (NCH) : The toll-free NCH number is 1800-11-4000. It provides guidance to consumers regarding consumer grievances. 2. INGRAM: Integrated Grievance Redress Mechanism (INGRAM) portal helps in creating awareness among consumers about their rights and responsibilities. Consumers can also provide their grievances through it. 3. State Consumer Helplines: State Consumer Helplines have been set up by State Governments. It aims to encourage Alternate Disputes Redressal mechanisms at the State level. 4. Smart Consumer Application: The Government has launched a mobile application “Smart Consumer”to enable the consumer to scan the barcode of the product and get all the details of the product. 5. GAMA: The Government has launched a portal called “Grievances Against Misleading Advertisements (GAMA)”.It is a dedicated portal that helps consumers register their grievances against misleading advertisements. 6. Online Dispute Resolution: An Online Consumer Mediation Centre has been established at the National Law School of India University, Bengaluru. It aims to provide a state-of-the-art infrastructure to resolve consumer disputes both through physical as well as online mediation through its platform. 7. JaagoGrahakJaago: Jago Grahak Jago is a consumer awareness programme from the Ministry of Consumer Affairs, and Public Distribution, Government of India
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The Act proposes the establishment of the Central Consumer Protection Authority (CCPA) as a regulatory authority. The CCPA will protect, promote and enforce the rights of consumers and regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights.
The 2019 Act proposes a slew of measures and tightens the existing rules present in 1985 Act to further enhance consumer welfare. This article will make the readers understand the key aspects of the Consumer Protection, 2019, compare with the 1986 Act.
Product liability refers to the legal responsibility of manufacturers, sellers, or service providers for the harm caused by defective or faulty products. The Consumer Protection Act, 2019 has codified product liability for the first time in India, bringing it in line with global legal standards. This legislation aims to provide consumers with ...
The Consumer Protection Act 2019 brings about fundamental changes to the existing 1986 Act; however, it also envisages a Central Consumer Protection Authority and vests power and control in this authority without proposing adequate administrative safeguards.
The Consumer Protection Act, 2019 has come into effect from July 20, replacing the earlier Consumer Protection Act, 1986. The Consumer Protection Bill, 2019 got the President’s nod on August 2019. A consumer is defined as a person who buys any good or avails a service for a consideration.
Consumer Protection Act, 2019 and Consumer Protection (E-commerce) Rules, 2020, and literature study allow analysis of 290 online consumers answering research questions and attaining research objectives.
Consumer protection measures help to uphold the basic rights of consumers, such as the right to be informed, the right to choose, the right to safety, and the right to be heard. These rights are essential for building a fair and just society.
The Consumer Protection Act, 2019: Overview and Key Highlights. GnS Legal. India July 28 2020. Introduction. The Consumer Protection Act, 2019 (“New Act”) received the President’s...
Contents. 1 Background. 2 Salient features of the Consumer Protection Act, 2019. 3 Benefits to Consumer. 4. 5 Issues with the Act. Background. 1. In consumer movement in India as a ‘Social Force” was born out of the need to defend and advance consumer interests in the face of dishonest and unjust business practices, such as: Hoarding.
The Consumer Protection Act, 2019 establishes the Central Consumer Protection Authority (CCPA) whose primary objective will be to promote, protect and enforce the rights of consumers. It is empowered to: Conduct investigations into violations of consumer rights and institute complaints/prosecution. Order recall of unsafe goods and services.