The objective of the article is to help understand the need and demand for a
new Consumer Protection Act with added provisions to help effectively execute
the laws. Furthermore, this law helps safeguard the position of the consumers
and lays down how he can preserve his rights. This act has also helped provide
for safe trade for the consumers protecting them from unfair contracts and
deceiving advertisement.
The article seeks to help understand how the new Consumers' Protection Act of
2019 was a necessity. The article details out the provisions of the Act in order
to understand the position of the consumer in today's digital era. Additionally,
the concept of E-commerce has also been introduced to increase the ambit of the
Act.
Introduction
Today's Digital Age has introduced another aspect of trade and computerized
marking, just as another arrangement for consumers' satisfaction. Digitisation
has given simple access, an enormous range of decision, helpful installment
mechanisms, improved administrations and shopping according to accommodation.
Remembering this and to address the new arrangement of difficulties beheld by
customers in the computerized age, the Indian Parliament, on 6 August 2019,
passed the milestone Consumer Protection Bill, 2019 which plans to give the
ideal and successful organization and settlement of customer debates. The New
Act will come into power on such date as the Central Government may so tell. The
New Act looks to supplant the more than thirty years old Consumer Protection
Act, 1986 (Act).
Mr Ram Vilas Paswan, the minister of consumer affairs, public distribution and
food was the one who had proposed the consumer protection bill 2019. This bill
was passed as an amendment to succeed the 1986 Consumer Protection Act. The
objective behind the adoption of this act was to ensure effective and productive
regulation and to help settle consumer conflicts in relevant matters. The role
of the act can be understood by the preface if the act where it clearly speaks
how the 2019 Amendment Act has defined the Consumer Protection Act as "an act to
provide for the protection of the interests of consumers and for the said
purpose, to establish authorities for timely and effective administration and
settlement of consumers' disputes and for matter connected therewith or
incidental thereto"[1].
The reason why the government passed a new act instead of amending the old one
was to help in offering better security in comparison to the previous approaches
as in today's time the ECommerce sector is growing very rapidly and so different
ways are emerging in matters related to the distribution of products and
services as in teleshopping, multi-level marketing, online shopping and even
direct selling.
Consumer Defined as per the New Act
The idea of 'purchaser' has been summed up to include people occupied with
physical or online buys through electronic methods or teleshopping or direct
deals or multi-level marketing. A customer is characterized as an individual who
purchases any product or service as per his need or desire. It doesn't include
any person who acquires a good for business purposes such as for resale of an
item or service.
This incorporates purchaser's overall structures, including offline, and on the
web, through electronic media, mail teleshopping, staggered showcasing, or
direct deals. According to the demonstration; an individual is known as a buyer
when he purchases the product or service for his own use and not to engage in
any future commercial activity. It does exclude anybody getting the merchandise
or benefiting from services without their consideration.
'
Telecom has been added to the explanation of the term 'services' in
order to bring the telecom service providers within the purview of the 2019 Act.
But astonishingly, such addition has not been worded as 'telecommunication
service' as defined under the Telecom Regulatory Authority of India Act, which
then would have included internet, cellular, and data services as well.
Consumer Protection Act 2019 in a Glance
Where to previous act had no provision with regards to unfair contract the new
act defines them and hence results in a significant change in the rights
guaranteed of the consumers. The law talks about six contractual terms that may
be regarded as unfair.[2] The provision for the Central Protection Councils (CPCs)
as an advisory body in order to facilitate the protection of consumer rights and
their promotion.
These Central Protection Councils (CPCs) are established on the district state
and national levels. Where the 1986 act sought for no provision for E-Commerce
but seeing today's time we cannot question the relevance and need for a
provision.
The new act not only defines it but also prescribed guidelines to enable the
central government to lay down rules in order to help prevent unfair trade
practices in the dimension of direct selling and e-commerce. Another significant
fact about this 2019 act is the incorporation of mediation cells that are
attached to the commissions as a resource for those who wish to seek alternative
dispute resolution as an option. Apart from this the act also mentions about
product liability the claim can be made against the manufacturer seller or the
service provider as the case seems demanding for compensation by proving any of
the several conditions specified in the Act.
Apart from the previous provisions, the new act adds three new types of
guidelines to increase the ambit of unfair trade practices the added provisions
specifically talk about the failure to provide for a bill or receipt, the seller
refusing to take back a good returned within a period of 1 month and disclosure
of personal details of a consumer that was provided unless the details were
shared in public interest or was required by law. These provisions have helped
in increasing the ambit of the consumer protection act not to miss out the 2019
act has provided for a CCPA to be able to focus on the grievances of the
consumer where the previous act had no such provisions. Below I have discussed
the three important aspects of the new 2019 Act.
Rights of consumers
The act defines six rights of a consumer; these rights include the proper to:
- be secured from the selling of life and property-threatening goods,
products or services; • To be notified, of nature, quantity, efficacy,
consistency, value, and price of products, products or services, to guard
the customer against unfair trading practices;
- To be assured exposure to a spread of commodities, products or services
at fair rates whenever possible;
- To be recognized and to be assured that the concerns of consumers would
be provided due consideration at sufficient forum;
- And pursue relief from unfair commercial practices or unreasonable
trading policies or the unscrupulous exploitation of consumers; and
- To consumer awareness
Central Consumer Protection Authority
The duties of the central consumer protection authority includes:
- investigating and tracking violations of consumer rights at the required
forum;
- allotting orders for recall or removal of dangerous products and ensure
refund of the price charged and termination of dishonest trade practices as
specified in the Bill;
- issuing supervision to the individual concerned;
- the imposition of fines and penalties, and lastly
- giving out of safety notices to consumers against hazardous goods and
unsafe services.
Customer Disputes Redressal Commission (CDRCs)
The New Act engages the separate governments to set up a National a State and a
District Commission for the Redressal of Consumer Disputes. The function of
these commissions framed under the New Act is comparable to that of the
commissions set up under the Old Act. They have the position to deal with
worries from clients about specific items or administrations.
The New Act additionally allows the SCDRC (state level) and the NCDRC (national
level), a position to think about complaints regarding unfair contracts.
A shopper can record an objection with CDRCs corresponding to:
unjust or prohibitive exchange rehearses;
faulty products or administrations;
overpriced product or tricky charging;
the contribution of products or administrations available to be
purchased which might be unsafe to life and wellbeing.
In any case, the monetary position, for example, the money related estimation of
the complaints which can be sought after has been impressively extended for
every one of these commissions to limit the weight on the State and National
Commissions by permitting clients to move towards the District Commission for
complaints worth up to Rupees One Crore.
Comparative Analysis of the 2019 and the 1986 Consumer Protection Act
The 2019 Act specifically aims to protect consumers while purchasing products
and services through a digital medium. Tt aims to bring online purchasing within
the ambit of the consumer. Section 21(2) of the 2019 act makes it clear that
even after receiving a notice from the consumer the commission may impose a fine
of 55 lacs if there are endorsements of products with false information about
the respective product[3].
The act has made the endorsers liable for fraudulent activities as in putting
out deceptive ads in order to help incorporate sales online. The New Act is very
consumer-friendly in the form that it keeps in mind the privacy and safety of
the consumers, as the act considers disclosure of personal information shared by
the consumer during a transaction as an offence.
The provision of product liability clarifies that from now the manufacturer will
compensate not only for the damaged goods but also for any loss incurred by the
consumer concerned due to the defective product. This Act also proposed the
establishment of the Central Authority for Consumer Protection (CCPA), this body
is to act as an independent regulator, they are not to resolve issues or respond
to consumer grievances.
The body is to take regulatory measures to help resolve or remove the practice
of unfair trading going on. The 2019 Act gives the privilege of judicial review,
which will require Consumer Commissions to rethink their choices, in this way
diminishing the coerce forced by picked petitions to amend clear irregularities
before the record. In sharp differentiation to the 1986 Act, it is presently
essential to make advances from the State Commission to the National
Commission regardless of whether they raise genuine legitimate issues. The
National Commission's difficulties to the Supreme Court must be made against
charges that emerge inside the National Commission. Likewise, to reinforce the
trap on the early accommodation of offers, the time period for favoured requests
has additionally now been provided firmer. Complaints against an unjustifiable
agreement can be logged with just the State and National Appeals from a District
Consumer Dispute Redressal Commission will be heard by the State CDRC. Requests
from the State Consumer Dispute Redressal Commission will be heard by the
National Consumer Dispute Redressal Commission. The last allure will lie under
the watchful eye of the Supreme Court.
Conclusion
Generally speaking, the new Act conceives the digitization period and has
likewise fused arrangements to represent the corresponding. It will be
intriguing to perceive how different arrangements develop. For instance, how all
around arranged the discussions are with regards to implementing different buyer
rights or making an exacting move against unreasonable exchange rehearses. The
current pendency of cases at the State and National commission is now of
concern. While upgrading of financial purview may assist with facilitating
pressure on the National Forum, be that as it may, it may not be the finished
answer.
The legislature must make extra designation towards filling opening and
improving the foundation and so forth for the successful execution of the
different arrangements and rapid assistance or remedies to be provided in case
of grievances. This is even more demands thinking about the extension of degree
and ambit of the new Act. In order to revolutionize the law identifying with the
consumers' protection and to extend the extent of the current law and make it
more successful and deliberate, the Consumer Protection Act 2019 has superseded
the old Consumer Protection Act, 1986.
The coming up of the Act was truly necessary as the arrangements under the old
Act, which is presently 33 years old, have gotten clearly outdated and needed
additions and rectifications. The customers' inclination is currently more
inclined towards purchasing items online achieving the extraordinary changes in
the customary meaning of the market. With the appearance of E-trade, the
customers and brand proprietors are attempting to defend their enthusiasm for
this new world which is vulnerable to far and a wide dispersion of fake and
encroaching items seeking shelter under the secrecy of online exchanges.
End-Notes:
- http://egazette.nic.in/WriteReadData/2019/210422.pdf
- https://www.mondaq.com/india/dodd-frank-consumer-protection-act/838356/consumer-protection-bill-2019
- https://mumbaimirror.indiatimes.com/coronavirus/news/chew-on-this-trains-may-dump-thalis-frommenu/articleshow/77057557.cms
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