Consumer Protection Act

Consumer Protection Act, 2019 Comes into Force from 20 July 2020

Consumer Protection Act, 2019 Comes into Force from 20 July 2020

  • The Consumer Protection Act,2019 has come in to force with effect from 20 July 2020.
  • The new Consumer Protection Act 2019 replaces more than three decades old Consumer Protection Act, 1986.
  • It seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail term for adulteration and misleading ads by firms.
  • In Consumer Protection Act, 1986, a single point access to justice was given, which was time consuming.
  • The new act has been introduced after many amendments to provide protection to buyers not only from traditional sellers but also from the new e-commerce retailers/platforms.

Salient Features of Consumer Protection Act 2019 

  • Establishment of Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.
  • Establishment of Consumer Protection Councils
  • Simplified Dispute Resolution Process
    • Empowerment of Consumer Commissions to enforce their orders
    • State Commission & District Commission can now review their own orders
    • Deemed admissibility of complaints if the question of admissibility is not decided within the specified period of 21 days of filing.
    • Ease of approaching Consumer Commissions
      • Filing from place of residence/work
      • E-filing
      • Videoconferencing for hearing
      • No fee for filing cases upto Rs. 5 lakh
  • Alternate Dispute Resolution mechanism of Mediation
  • Introduction to the concept of 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
  • Rules on e-commerce and direct selling
  • Penalty for adulteration of products/spurious goods
  • Establishment of Central Consumer Protection Council, as an advisory body on consumer issues, headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from different fields. The Council, which has a three-year tenure, will have Minister-in-charge of consumer affairs from two States from each region- North, South, East, West, and NER.

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