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Changes in Consumer protection Act

On July 20, 2020, new consumer protection act, 2019 came into effect by replacing the old one i.e. consumer protection act, 1986.  It has widened the meaning of consumer and provided more power & protection to the consumer.

The Government had also added some provision related to Consumer Disputes Redressal Forum, liability of manufacturing, selling etc. New rules regarding e-commerce platforms for prevention of unfair trade practices will be coming soon.

The consumer can file a case at his/her residence or where the transaction happened as in act of 1986 it was that case should be filed where the opposite party resided. The act also introduce the provision of product liability, Earlier, it was only that manufacture is liable for the defect in the product, but now the manufacture have to pay for defect in product along with loss suffered by the consumer.

According to Consumer Protection Act, 1986, the commission had an option whether to accept or reject the application of the consumer within 21 days period of receiving it but in Consumer Protection Act, 2019, if the commission didn’t reply within the period of 21 days it will be assumed to be acknowledge. The 2019 act has also provided the mechanism of Mediation under Alternate Dispute Resolution which will simplify the adjudication process.

A new independent body is established by the virtue of Consumer Protection Act, 2019 i.e. Central Consumer Protection Authority (CCPA) with the protection of rights of consumer. It will be headed by Union Minister of Consumer Affairs, Food and Public Distribution with Vice Chairperson to be the Minister of State and 34 members from different states. Some the function of CCPA is imposing penalties, issue safety notice against unsafe goods and services, conducting inquiry & investigation, etc.

District Commission:

The name of District Forum has been changed to District Commission. Earlier, the upper limit of pecuniary jurisdiction of the commission was Rs.20 lakh under Consumer Protection Act, 1986 which has been increased to Rs.1 crore by virtue of Consumer Protection Act, 2019.

State Commission:

According to Consumer Protection Act 1986, the pecuniary jurisdiction of state commission starting from Rs.20 lakh till Rs.1 Crore, now according to the latest act of 2019 its jurisdiction has been increased, ranging between Rs.1 Crore to Rs.10 Crore.

National Commission:

Pecuniary jurisdiction according to Consumer Protection Act, 1985 was from Rs.1 Crore, now according to Consumer Protection Act, 2019 it has been increased to Rs.10 Crore. 

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