The consumer protection Act was enacted with the object of affecting a more
equitable balance between the rights of consumers and businesses. This act aims
to create a fair and equitable marketplace, ensuring that consumers receive the
value they deserve for their hard-earned money. The Act has undergone numerous
amendments with the objective of further strengthening consumer rights in the
light of a new digital era. Therefore, the Act is an important tool in the
advancement of accountability, transparency, and fairness in the marketplace.
Who is a consumer?
According to section 2(7) of the Consumer Protection Act,2019 defines
'consumer’. A consumer is as any person who buys goods, hires or avails of any
services for a consideration which had been paid or promised or partly paid or
partly promised or under any system of deferred payment, when such use is made
with the approval of such person, but does not include a person who obtains such
goods for resale or for any commercial purpose or a person who avails of such
service for any commercial services.
Salient features of the 2019 Act
- Makes provisions for e-commerce included under this Act, to ensure consumer rights and prevent unfair trade practices.
- Makes express provision for e-filing.
- Adds the concept of product liability, which means manufacturers, service providers, and sellers are held liable for any damage caused by the product they supply.
- A mediation mechanism was introduced to ensure speedy resolution of consumer disputes.
- Rights of consumer.
- Enhanced penalties.
- Establishes a Central Authority to regulate violation of rights, unfair trade practices, etc., as well as to promote, protect, and enforce their rights with the help of an investigation wing.
Rights of consumer
Consumer rights are a set of protection and entitlements created to protect
consumers in the purchase of goods and services. Such guarantees serve to ensure
that trade is carried out under conditions of fairness, quality, safety and
transparency of the market. In most countries, the rights of the consumers are
protected by law and in many times with provisions for dispute resolution,
compensation and enforcement. Section 2(9) 0f the Act is defined the consumer
rights. They are;
- Right to consumer awareness
- Right to seek redressal against restrictive trade practices or unfair trade practices
- Right to be assured
- Right to be informed about the quality, quantity, potency, purity, standard, and price of the goods, services, or products
- Right to be protected against the marketing of goods, products, or services which are hazardous to life and property
E-commerce
Section 2(16) of the Consumer Protection Act, 2019 which provides the
'e-commerce’ which refers that buying or selling of goods or services including
digital products over digital or electronic network. This provides a clear legal
framework for e-commerce platforms and online transactions.
It prohibits unfair trade practices, such as false advertisements, misleading
offers of discounts, and deceptive descriptions of products. The Act allows
consumers to seek redress in cases involving delayed delivery, non-delivery, and
defects in the product. This includes an obligation on e-commerce entities that
they shall not allow any fraudulent practice by sellers on their platform.
The Act further imposes liability upon e-commerce intermediaries in situations
of consumer disputes to avoid such entities facilitating the sales of
counterfeit or sub-standard products. These reforms will provide a legal
framework to consumers, making the burgeoning e-commerce sector in India
trustworthy and reliable. In this regard, consumer interests shall remain
paramount in the ever-changing digital marketplace as ensured by the Consumer
Protection Act, 2019.
Product Liability
The Consumer Protection Act, 2019 has incorporated provisions on product
liability, so consumers are better safeguarded against defective products or
services. This is related to the liability of a manufacturer, seller, or service
provider who has caused injury to a person by his product. Such entities are
held liable for their products' safety, as well as their quality and
reliability.
The Act stipulates that compensation should be provided to a consumer when the
product leads to any damage, injury, or loss arising from defects in the
manufacture or design of the product or due to insufficient information while
using the product. Manufacturer and liability: Liability has been assigned to
the manufacturer if the said product has a defect leading to danger or risk to
the safety of a consumer or due to inadequate disclosure concerning the risk
involved, or if the product fails to conform to express warranties.
Also, the seller may be liable if the product is sold with false claims or if
there are known defects in it. The scope of liability also includes service
providers, which makes the law particularly broad and comprehensive in covering
the consumer against some bad quality service connected with the product. The
liability, under this law, is strictly imposed on manufacturers or sellers.
This allows the courts to hold the manufacturer or seller liable even in the
case where negligence is not proved. This enhances the legal recourse of
consumers towards the selling company and, consequently, holds the selling firms
to higher standards of quality and safety. This means that the Consumer
Protection Act, 2019, has greatly empowered consumers who have more avenues for
legal remedies in cases of defective products.
Mediation
The Consumer Protection Act, 2019 made 'mediation’ yet another alternative
dispute resolution method that would be used for effective redressal of consumer
grievances. Thereunder, mediation has been provided, which is faster,
cost-effective, and less litigating in nature to get an amicable solution to
consumer disputes without a long trial. It is possible to refer complaints filed
before the Consumer Commission to mediation with the mutual consent of the
parties.
That mediation is conducted by a qualified mediator at a Mediation Cell attached
to the Commission, and if successful, becomes binding on the parties. With this
addition, there is a guaranteed smoother resolution process and a far lesser
burden on consumer courts.
Section 74 empowers the state Government to establish a consumer mediation cell
to be attached to each of the District Commissions and State Commissions of the
state. The central Government also empowers government to establish a consumer
mediation cell to be attached to the National Commission and each of the
regional benches.
Every consumer mediation cell should submit a quarterly report to the District
Commission, State Commission or the National Commission. And also, every
consumer mediation cell shall have a list of impanelled mediators, a list of
cases handled by the cell, a record of proceedings and all other information as
may be specified by regulations.
Conclusion
The Consumer Protection Act, 2019 is a significant legislation that strengthens
consumer rights in India against the present background of a dynamic market
environment. It expands the ambit of protection through modern-day issues such
as issues regarding e-commerce, digital transactions, and misleading
advertisements.
The Act establishes the Central Consumer Protection Authority (CCPA), covering
violations, which would provide swift action for dealing with unfair trade
practices, product recalls, as well as penalizing false advertising.
Additionally, there's improvement in consumer access to justice through a much
streamlined three-tier consumer dispute redressal mechanism at district, state,
and national levels with quicker redressal of grievances.
The Act puts a liability on manufacturers, service providers, and advertisers to
ensure that people are protected from defective products and practices and not
taken undue advantage of. It aims to create a more assured marketplace by
empowering consumers with greater transparency and effective redressal avenues.
In that way, it upholds the principles of fairness, justice, and consumer
welfare in India.
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