Consumer protection act 2019 Empowering consumer Ensuring Justice
Introduction :
Consumer is the king of the market. Due to modernization there is the many aspects which is changed from ancient time to present time in the society. Society is the web of relationship where the individual are connected to each other by sharing common purpose and interest just like that consumers is the one of them when they buy goods and services from the seller they become consumer in the other hand who sales his goods and services they are calles producer of the market.
Consumer and market they are interconnected to each other without consumer market is like surviving without oxygen, bird without wings and sea without water.
Today the definition of market is totally changed it just not a place where the consumer busy goods or services it's now a platform where consumer can not need to move any place now there is evolution of digitalization where the digital platform available to the consumer and they enjoy all the services in sitting their homes without wasting any time.But there is always two sides of coin where if there is advantageous there is always disadvantage.
Same here due to increasing of globalisation and this era has changed the scenario in the Indian market. Various kinds of products and services are coming into being so are new ways of duping the Consumers. A Consumer is the soul and the spine of the market. Due to consumers, businesses exist. So it need To protect the rights and guard the welfare of consumers, the Consumer Protection Act, 1986 was enacted and brought into force.
Since the dynamics of the market were changing due to globalization where is lots of practice such as. Exploitation of consumers often occurs through various unfair or deceptive business practices, including:
1. False Advertising: Misleading claims about a product's features, benefits, or performance.
2. Price Gouging: Raising prices of goods or services to excessively high levels, especially during emergencies.
3. Hidden Fees: Not disclosing additional costs or charges until after the purchase is made.
4. Bait and Switch: Advertising a product at a low price to attract customers, then pushing them towards a more expensive item.
5. Predatory Lending: Offering loans with unfair terms that trap borrowers in a cycle of debt.
6. Counterfeit Goods: Selling fake products as genuine, often at reduced prices.
7. Phishing Scams: Deceiving consumers into revealing personal information through fake websites or emails.
These practices can harm consumers financially, erode trust in businesses, and undermine the integrity of markets. there was a need to enact a new law that was more efficient to protect the consumer’s rights in every way possible. This induced legislature to make a new law which was known as Consumer Protection Act, 2019 (COPRA). Consumer Protection Act 2019 (COPRA) replaced the Consumer Protection Act 1986 and got approval from the Honourable President on 9th August in the year 2019. This act emphasizes bolstering the rights of the consumer. The COPRA 2019 incorporates VIII chapters and 107 sections. It extends to Jammu and Kashmir. The main object of the Act is to protect the interest of the consumers and to work for the welfare of the consumers.In the Consumer Protection Act of 2019, "goods" and "services" are defined to ensure comprehensive coverage of consumer transactions and to protect consumer interests effectively.
Goods-
Goods are defined as:
- Any kind of movable property, other than actionable claims and money.
- This includes products, commodities, and other tangible items that can be bought, sold, or traded.
- Example: Electronics, clothing, food items, and vehicles.
Services-
Services are defined as:
- Any kind of service made available to potential users.
- This includes a wide range of activities provided in return for consideration (payment).
- The Act explicitly includes but is not limited to banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging, housing construction, entertainment, amusement, and the purveying of news or other information.
- Example: Banking, telecommunications, insurance, transportation, medical services, and education.
Key Points
-Inclusion of Digital and E-commerce Transactions: The Act covers services and goods offered through both traditional and digital platforms, recognizing the growing significance of e-commerce.
- Product Liability: The definitions ensure that manufacturers, sellers, and service providers are accountable for the quality and safety of goods and services.
- Consumer Rights and Redressal: The Act ensures consumers have the right to be informed, choose, and seek redressal for issues related to goods and services.
By defining goods and services broadly, the Consumer Protection Act of 2019 aims to protect consumers from unfair practices across a wide range of industries and transactions.
Who is a Consumer:
1. Buyer of Goods: Any person who buys any goods for consideration, which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. This includes any user of such goods when such use is made with the approval of the buyer.
2. Recipient of Services: Any person who hires or avails of any services for consideration, which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. This also includes any beneficiary of such services when such services are availed with the approval of the person who hired the service.
Who is Not a Consumer:
1. Commercial Purpose Buyers: Any person who buys goods or hires services for resale or for any commercial purpose. This does not include goods bought or services availed for self-employment.
2. Free Services: Any person who receives services free of charge or under a contract of personal service is not considered a consumer.
Clarifications:
- Commercial Purpose Exclusion: The act specifically excludes those who purchase goods or services for commercial purposes from being considered consumers. However, individuals who purchase goods or services for self-employment to earn their livelihood are considered consumers.
- Personal Use: A person who buys goods or avails of services for personal use, and not for resale or commercial use, is considered a consumer.
By distinguishing who is considered a consumer, the Act aims to protect individuals who are at a potential disadvantage in the market, ensuring that their rights are upheld and they have recourse in cases of exploitation or unfair practices.
The Consumer Protection Act of 2019 in India aims to protect the interests of consumers and ensure fair trade practices. Its primary objectives are:
1. Establishment of Consumer Protection Authority: To create a central authority to regulate matters relating to consumer rights, preventing unfair trade practices, and ensuring the protection and enforcement of consumer rights.
2. Simplifying Dispute Resolution: To provide simpler, quicker, and more accessible means for consumers to address their grievances through consumer commissions at district, state, and national levels.
3. Prevention of Unfair Trade Practices: To prevent unfair trade practices and ensure that consumers are not misled by false advertisements and unfair business practices.
4. Consumer Rights: To safeguard and promote various consumer rights such as the right to be informed, the right to choose, the right to be heard, the right to seek redressal, and the right to consumer education.
5. Product Liability: To establish product liability and hold manufacturers, service providers, and sellers accountable for any harm caused by defective products or services.
6. E-commerce Regulation: To include regulations for e-commerce and online transactions, ensuring consumers are protected in the growing digital marketplace.
7. Mediation: To introduce mediation as an alternate dispute resolution mechanism, making it easier and less time-consuming for consumers to settle disputes amicably.
Overall, the Act aims to enhance consumer protection, increase transparency in business practices, and provide effective and efficient consumer grievance redressal mechanisms.
Features of consumer protection act 2019
1. Consumer Rights: Defines and protects six key consumer rights: Right to Safety, Right to be Informed, Right to Choose, Right to be Heard, Right to Redress, and Right to Consumer Education.
2. Consumer Protection Councils: Establishes Consumer Protection Councils at the national, state, and district levels to promote and protect consumer rights.
3. Central Consumer Protection Authority (CCPA): Sets up the CCPA to regulate matters relating to violations of consumer rights, unfair trade practices, and false or misleading advertisements.
4. Consumer Disputes Redressal Commission: Creates a three-tier structure of National, State, and District Consumer Disputes Redressal Commissions to resolve consumer disputes.
5. Simplified Dispute Resolution Process: Provides a simplified process for filing consumer complaints and ensures speedy resolution.
6. Product Liability: Introduces the concept of product liability to hold manufacturers, service providers, and sellers accountable for any harm caused by defective products or services.
7. Unfair Trade Practices: Broadens the scope of unfair trade practices and includes e-commerce and direct selling.
8. E-filing of Complaints: Allows consumers to file complaints electronically and also enables hearing of cases through video-conferencing.
9. Penalty for Misleading Advertisements: Imposes penalties on manufacturers and service providers for false or misleading advertisements.
10. Mediation: Provides an alternative dispute resolution mechanism through mediation, making the resolution process more amicable and less time-consuming.
11. Strict Liability: Ensures strict liability in cases where harm is caused by defective products or services, regardless of negligence or fault.
12. Enhanced Compensation: Facilitates enhanced compensation for consumers in case of loss or injury due to negligence or unfair trade practices.
These features collectively aim to safeguard consumer interests, promote fair business practices, and ensure effective grievance redressal.
There are 6 right are given by the law to consumers. Consumer rights are fundamental protections that ensure consumers are treated fairly in the marketplace. Here are some key consumer rights along with examples:
1. Right to Safety:
- Consumers have the right to be protected against goods and services that are hazardous to health or life.
- Example: A consumer purchases a toy for their child that has small parts that could pose a choking hazard. The right to safety ensures that the toy should have clear warnings or should not be sold if it does not meet safety standards.
2. Right to Information:
- Consumers have the right to receive accurate and truthful information about products and services, including ingredients, usage instructions, pricing, etc.
- Example: Food products must have clear labeling indicating ingredients, nutritional information, allergens, and expiry dates, enabling consumers to make informed choices.
3. Right to Choose:
- Consumers have the right to choose from a variety of products and services at competitive prices.
- Example: In a competitive market, consumers have the freedom to choose between different brands of smartphones based on features, prices, and reviews.
4. Right to Redressal:
- Consumers have the right to seek redressal against unfair trade practices or exploitation.
- Example: If a consumer purchases a defective product, they have the right to return it for a refund or replacement as per the seller’s return policy and consumer protection laws.
5. Right to Consumer Education:
- Consumers have the right to be educated about their rights and responsibilities as consumers.
- Example: Government and consumer organizations conduct workshops or campaigns to educate consumers about recognizing deceptive advertising practices or understanding product warranties.
6. Right to be Heard:
- Consumers have the right to voice their complaints and concerns about products and services and have them addressed promptly.
- Example: Companies often have customer service departments where consumers can call or email to report issues with products or services and expect a resolution.
These rights collectively empower consumers to make informed decisions, protect them from exploitation, and ensure fair treatment in the marketplace.
CONSUMER REDRESSAL FORUM UNDER CONSUMER PROTECTION ACT 2019
Under the Consumer Protection Act 2019, consumer redressal forums play a crucial role in addressing grievances. Here's an overview of the different levels of consumer forums and their distinctions:
Levels of Consumer Redressal Forums:
1. District Consumer Disputes Redressal Commission (DCDRC):
- Jurisdiction: Handles complaints involving claims up to Rs. 1 crore.
- Composition: Headed by a District Judge and has two other members.
- Appeals: Appeals against its orders can be made to the State Commission.
2. State Consumer Disputes Redressal Commission (SCDRC):
- Jurisdiction: Deals with cases where the claim exceeds Rs. 1 crore but does not exceed Rs. 10 crore.
- Composition: Headed by a retired High Court Judge and has two other members.
- Appeals: Appeals against its orders can be made to the National Commission.
3. National Consumer Disputes Redressal Commission (NCDRC):
- Jurisdiction: Handles cases where the claim exceeds Rs. 10 crore.
- Composition: Headed by a sitting or retired Supreme Court Judge and has four other members.
- Appeals: Appeals against its orders can be made to the Supreme Court of India.
These forums provide a hierarchical structure to ensure effective resolution of consumer disputes at different levels, based on the magnitude of claims involved.
Under the Consumer Protection Act of 2019, Consumer Protection Councils (CPCs) are established at three levels: Central, State, and District. Here are the key differences between them:
Central Consumer Protection Council:(section 3)
1. Composition: Chaired by the Minister in charge of consumer affairs at the national level.Also known: Central council
2. Scope: Deals with issues of national importance concerning consumer protection policies and programs.
3. Advisory Role: Provides advice to the Central Government on matters related to consumer protection.
4. Coordination: Coordinates activities of State and District Councils for effective implementation of consumer protection measures at all levels.
5. Awareness Campaigns: Organizes national-level awareness campaigns and programs.
6 Procedure for meeting of central council (section 4)When necessary but at least one meeting in every year
7: Object (section 5)Render advice on promotion and protection of the consumer rights
State Consumer Protection Council:
1. Composition: Chaired by the Minister in charge of consumer affairs at the state level.
Also known: State council
2. Scope: Addresses state-specific consumer issues and policies.
3. Advisory Role: Advises the State Government on local consumer protection matters.
4. Monitoring: Monitors the implementation of consumer protection laws and redressal mechanisms within the state.
5. Awareness Programs: Conducts awareness programs and initiatives tailored to the needs of the state's consumers.
6. Procedure for meeting of state council : Two meetings in year
7. Object (section 7)Render advice on promotion and protection of the consumer rights
District Consumer Protection Council:(section 8)
1. Composition: Chaired by the District Collector or District Magistrates
Also known district council
2. Scope: Focuses on consumer issues within the district jurisdiction.
3. Local Grievance Redressal: Facilitates grievance redressal at the district level.
4. Awareness Activities: Organizes local awareness campaigns and workshops.
5. Implementation: Implements consumer protection laws and ensures effective functioning of consumer fora and mechanisms at the grassroots level.
6. Procedure for meeting .Two meeting in every year
7. Object-Render advice on promotion and protection of the consumer rights
These councils operate in a hierarchical manner, with the Central Council providing overarching guidance and coordination, the State Councils addressing state-specific issues, and the District Councils focusing on local consumer grievances and awareness. Together, they form a comprehensive network aimed at protecting consumer rights across different levels of governance in india
There are many changes which differentiate consumer protection act 2019 from the consumer protection act 1986
The Consumer Protection Act of 1986 and the Consumer Protection Act of 2019 in India have several key differences that reflect the changing dynamics of consumer rights and the marketplace. Here are the major differences in points:
1. Establishment of Central Consumer Protection Authority (CCPA):
- 1986: No provision for a central authority to enforce consumer rights.
- 2019: Introduced the CCPA to address consumer complaints, conduct investigations, and take actions against unfair trade practices.
2. Consumer Dispute Redressal Commissions:
- 1986: Three-tier redressal system: District Forum, State Commission, and National Commission.
- 2019: Retains the three-tier system but renames them as District Commission, State Commission, and National Commission with revised jurisdiction limits.
3. Jurisdictional Changes:
- 1986: District Forum up to Rs 20 lakh, State Commission from Rs 20 lakh to Rs 1 crore, and National Commission above Rs 1 crore.
- 2019: District Commission up to Rs 1 crore, State Commission from Rs 1 crore to Rs 10 crore, and National Commission above Rs 10 crore.
4. E-Filing of Complaints:
- 1986: Complaints had to be filed physically.
- 2019: Introduced the facility for electronic filing of complaints and video conferencing for hearings.
5. Product Liability:
- 1986: No specific provisions for product liability.
- 2019: Includes specific provisions for product liability, making manufacturers, service providers, and sellers liable for any harm caused by defective products or deficient services.
6. Unfair Trade Practices:
- 1986: Limited definition of unfair trade practices.
- 2019: Expanded definition to include the sharing of personal information without consent, and more comprehensive provisions on misleading advertisements and endorsements.
7. Penalties for Misleading Advertisements:
- 1986: Penalties were not as stringent.
- 2019: Stricter penalties, including fines up to Rs 1 million and imprisonment for up to 2 years for first-time offenders, and harsher penalties for repeat offenders.
8. Mediation:
- 1986: No provision for mediation.
- 2019: Introduced mediation as an alternative dispute resolution mechanism to facilitate quicker resolution of disputes.
9. E-Commerce Regulations:
- 1986: No specific provisions for e-commerce.
- 2019: Specific regulations for e-commerce platforms, including requirements to display hu seller information, return and refund policies, and grievance redressal mechanisms.
10. Consumer Rights:
Under the Consumer Protection Act, consumers have several rights and responsibilities. Here are the responsibilities of consumers under the Consumer Protection Act summarized in points:
1. Awareness and Information:
- Consumers should be aware of their rights under the Consumer Protection Act.
- They should gather information about the goods or services they intend to purchase, including their quality, quantity, price, and terms of sale.
2. Exercising Caution:
- Consumers should exercise reasonable care to avoid misleading advertisements and false claims made by sellers.
- They should avoid purchasing goods or services from sellers who do not provide adequate information or who engage in unfair trade practices.
3. Exercising Rights:
- Consumers should assert their rights when they are dissatisfied with goods or services purchased.
- They should file complaints with the appropriate consumer dispute redressal forums or authorities in case of unfair trade practices or deficiency in services.
4. Retaining Proof of Purchase:
- Consumers should retain bills, receipts, warranties, and any other documents related to the purchase of goods or services.
- These documents serve as proof of transaction and are necessary for seeking redressal under the Act.
5. Timely Action:
- Consumers should take timely action to seek redressal for grievances related to defective goods or deficient services.
- Delay in lodging complaints may affect their chances of obtaining relief.
6. Non-exploitation:
- Consumers should not misuse their rights to gain undue advantage over sellers or service providers.
- They should act responsibly and ethically in their dealings with sellers and service providers.
7. Cooperation with Authorities:
- Consumers should cooperate with consumer protection authorities during investigations or proceedings related to their complaints.
- They should provide accurate information and documentation to support their claims.
8. Spreading Awareness:
- Consumers should encourage awareness about consumer rights and responsibilities among family members, friends, and the community.
- This helps in promoting a fair marketplace and protecting the interests of all consumers.
These responsibilities empower consumers to make informed decisions, safeguard their rights, and contribute to a fair and competitive marketplace under the Consumer Protection Act.
Under the Consumer Protection Act (CPA) of 2019 in India, several offenses are specified along with corresponding penalties. Here are some key offenses and their sections:
Offenses and Penalties under CPA 2019:
1. Misleading Advertisement (Section 21):
- Offense: Publishing misleading advertisements.
- Penalty: Fine up to Rs. 10 lakh for the first offense; up to Rs. 50 lakh for subsequent offenses.
2. Unfair Contract (Section 21):
- Offense: Including unfair terms in a consumer contract.
- Penalty: Fine up to Rs. 10 lakh for the first offense; up to Rs. 50 lakh for subsequent offenses.
3. Sale of Counterfeit Goods (Section 91):
- Offense: Selling goods that are counterfeit or spurious.
- Penalty: Imprisonment up to 7 years and fine up to Rs. 50 lakh.
4. Spurious Goods and Services (Section 94):
- Offense: Selling goods or services that are hazardous to life and safety.
- Penalty: Imprisonment up to 7 years and fine up to Rs. 50 lakh.
5. Failure to Comply with Orders (Section 80):
- Offense: Failure to comply with the orders of the Consumer Dispute Redressal Commission.
- Penalty: Fine which may extend to Rs. 10,000 for the first offense and up to Rs. 50,000 for subsequent offenses.
6. Non-Compliance with Product Safety Standards (Section 94):
- Offense: Failure to comply with product safety standards.
- Penalty: Fine up to Rs. 10 lakh for the first offense; up to Rs. 50 lakh for subsequent offenses.
7. Overcharging or Hoarding (Section 21):
- Offense: Charging excessive prices or hoarding goods.
- Penalty: Fine up to Rs. 10 lakh for the first offense; up to Rs. 50 lakh for subsequent offenses.
8. Failure to Furnish Information (Section 31):
- Offense: Failure to furnish information required by the Central Consumer Protection Authority (CCPA).
- Penalty: Fine up to Rs. 10 lakh.
9. Product Liability (Section 84):
- Offense: Non-compliance with product liability provisions.
- Penalty: Compensation to affected consumers as determined by the CCPA.
These sections outline the offenses and penalties under the CPA 2019, aimed at protecting consumer rights and ensuring fair trade practices in India.
Conclusion:
The Consumer Protection Act solely prioritizes that there should not be any hamper or damage to the rights of the customers. While interpreting, it is interpreted in such a way that the rights of the customers are protected against the unfair trade practices in the market. Consumers should always be aware of their rights. In some cases, Supreme Court asked the Commission to be liberal while interpreting the law and take a pragmatic view of the consumer’s rights. It’s good that the Consumer Protection Act, 2019 was enacted considering all the current scenarios but still there is a need foor proper implementation of the act. Still, many consumers in our country don’t know much about their legal rights and have an opinion that the court work is time taking as a result of which they are hesitant to file the case. So the Government of India should try to educate the consumers of their legal rights and should also simplify the case filing mechanism.
Author,
Rukhsar Khan
BA. LL.B.
City Academy Law College, Lucknow