Ke wr Consumer Protection Act, 2019: Meaning and Key Features Passed hy the Lok Sabha on Jul 30, intraduced in the ic Distribution, Mr. h 06, 2019, This bill Affairs, Pood and Pub The Consumer Proteetion Bill, 2019 2019, and Rajya Sabha passed on At nent by the Minister of Consuny Filas Paswan. In this article, we have explained the meaning and features of The Consumer Protection Act, 2019. jon Act, 2019? a law to protect the interests of the consumers. ‘ge number of pending consumer complaints cans to solve the sand m across the country, It has way: ly. in consumer cour consumer grievances spec What is the aim of the Consumer Protection“Act? ‘The basic aim of the Consumer Protection Act, 2019 to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes] _What is the Definition of the consumer? ‘As per the act; a person is called a consumer who avails the services and buys any 2ood for self-usg) Worth to mention that if'a person buys any good and avail any service for resale or commercial purpose, is not considered a consumer. This definition covers all types of transactions i.e. online and offline. - online and offline. — hae saies of the Consumer Protection Act, 2019 “Establishment of the Central Consumez Protection Authority (CCPA): The act has the provision of the Establishment of the CCPA which will protect, promote and enforce the rights of consumers.)The CCPA will regulate cases related ade practices, misleading advertisements, and violation of consumer to unfair rights7, Thé CCPA will have the right to impose a penalty on the violators and passing ‘orders to recall goods or withdraw services, discontinuation of the unfair trade practices and reimbursement of the price paid by the consumers.The Central Consumer Protection Authority will have an investigation wing to enquire and investigate such violations, The COPA will he headed by the Director Gene sumers; {provides 6 rights (o the er pout the quantity, quality, purit y. price, and + pote i. To have information andard of goods or services ardous goods and services ror restrictive trade practices, es al competitive prices ng idvertisement: (CCPA) will have the power to r up to 2-year imprisonment for mi Dhan Warsha Yantra). ié. To be protected trom ha. To be protected from un Mi iv. To have a variety of goods or serv (3) Prohibition and penalty fora ay “The Central Consumer Protection Authority the endorser or manufactur alse advertisement (Like Lax Impose fines ¢ adi Werth fo mention that repeated offense, may attract a fine of Rs 50 lakh and “imprisonment of up to 5 years. 4. Consumer Disputes Redressal Commission: the provision of the establishment of the Consumer Disputes Redressal ‘ict levels, The act ha: Commissions (CDRCs) at the national, state and dis' —e The CDRCs will entertain complaints related to; _ 5.oxSrcharging or deceptive charging " Unifair or restrictive trade practices _Sale of hazardous goods and services which may be hazardous to life. Sale of defective goods or services Jurisdiction under the Consumer Protection Act, 2019. The act has defined the criteria of Consumer Disputes Redressal Commission (CDRGs){The National CDRC will hear complaints worth more than Rs. 10 more than Rs | es} The jate CDRC will hear complaints when the value crorébut less than Rs 10 crore{ While the District CQRC will entertain complaints cror when the value of goods of servieeis up to Rs | cror mer Protection Act, 2019. This topic So these were key features of the new Con is very important for various exams like UPSC, State PSC, and Banking, etc. To read more such articles click on the link given below;Protection Authority; what is I: Govt to establish Central Cans: Explain in er of Consumer Affairg, Food and Public Distribution Central Consumer Protection Authority after the Minister d functioning of a Last week, Union Mi as Paswan announced tha ablished by the first w kof April. This w ‘es about the role a Ram V1 (CCPA) will be es ions with industry representa held consul proposed CCT ner Protection Authority? ction 10(1) of The Consumer Protection is the Central Con Explained: W The authority is being constituted under ed The Consumer Protection Act, 1986, and seeks to Act, 2019. The Act repla widen its scope in addressing consumer concerns. The new Act recognises offences such as providing false information regarding the quality or quantity of a good or service, and misleading advertisements It also specifies action to be taken if goods and services are found “dangerous, hazardous or unsafe”. The CCPA, introduced in the new Act, aims to protect the rights of the consumer by cracking down on unfair trade practices, and false and misleading advertisements that are detrimental to the interests of the public and consumers. The CCPA will have the powers to inquire or investigate into matters relating to practices suo motu, or on a complaint violations of consumer rights or unfair trade received, or on a direction from the central government. Sources said the Ministry of Consumer A fairs, Food and Public Distribution is in the process of finalising the rules relating to the composition and functioning of the CCPA, and these are expected to be notified by April. What can the possible structure of CCPA be? Sources said the proposed authority will be a lean body with a Chief Commissioner vo other commissioners as members — one of whom will deal as head, and only ty with matters relating to goods while the other will look into cases relating to services. It will be headquartered in the National Capital Region of Delhi but the Set up regional offices in other parts of the country. central government mayDirector At will be headed by The CCPA will fon Wing General. District Collectors too, will have the power to investi «© or misleading, have an Investize © complaints of violations of consumer rights, unfair trade practices, and 1 advertisements, What kind of goods, and food i “dangerous, bh HS oF This is not specified in the notification of the Act. Regarding food, an official s: the CCPA will ensure that all standards on packaged food items set by regulators and Standards Authority of India (FSSAI) are being, such as the Food Safe followed. What will the CCPA do if any goods or services are found not meeting these standards? Under Section 20 of The Consumer Protection Act, the proposed authority will hdrawal of services that are “dangerous, have powers to recall goods or wi hazardous or unsafe; pass an order for refund the prices of goods or services so recalled to purchasers of such goods or services; and discontinuation of practices which are unfair and prejudicial to consumer's interest”. For manufacture, selling, storage, distribution, or import of adulterated products, the penalties are: * If injury is not caused to a consumer, fine up to Rs 1 lakh with imprisonment up to six months; “If injury is caused, fine up to Rs 3 lakh with imprisonment up to one year; * If grievous hurt is caused, fine up to Rs 5 lakh with imprisonment up to 7 years; * In case of death, fine of Rs 10 lakh or more with a minimum imprisonment of 7 years, extendable to imprisonment for life.ny advertisements’? s given to the CCPA to er if the CCPA is id is 1 it deal with false or m How wil down on Section 21 of the new Act defines the pow provision ding advertisements, According to the false or mis ied aficr investigation that any advertisement is harmful to the interest of any consumer, or is in contravention of consumer rights, false or misleading, the CCPA may issue directions to the trader, manufacturer, endorser, advertiser, or publisher to discontinue such an advertisement, or modify it ina manner specified by the authority, within a given time. a penalty up to Rs 10 lakh, with imprisonment up The authority may also impose to two years, on the manufacturer or endorser of false and misleading advertisements. The penalty may go up to Rs 50 lakh, with imprisonment up to five years, for every subsequent offence committed by the same manufacturer or endorser. CCPA may ban the endorser of a false or misleading advertisement from making endorsement of any products or services in the future, for a period that may extend to one year. The ban may extend up to three years in every subsequent violation of the Act. What other powers will the CCPA have? While conducting an investigation after preliminary inquiry, officers of the CCPA’s Investigation Wing will have the powers to enter any premise and search for any document or article, and to seize these. For search and seizure, the CCPA will have similar powers given under the provisions of The Code of Criminal Procedure, 1973. The CCPA can file complaints of violation of consumer rights or unfair trade practices before the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission. It will issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services.see eines Apencies --- Consum on and National C wail Agencies: District mmnission 1e Co \_ District Forum Section 10(1) of the Act deals with the composit Important aspects of this Act involve: Se “ , © _Théfe is a President with the qualification of a District judge. \ Se Apart from the President, there are two other members, one being a woman. © These members are to_be chosen based on three grounds(They must be at least_35_years of age(they must have a degree from a recognized university) [land they must have ‘at_least_10_years of experience in law, economics, Commerce and so on] —— The above appointments have certain disqualifications: conduct Ret sentenced to imprisonment which breaches moral cording to the State Government 2 Atinsolvent © A person of an unsound mind according to a competent court removed from a government job or a government controlled corporate Sor \“‘jov Person with such financial interest that will create a prejudic: n of the Di District Forum in_his functions as a member. The Secretary dealing in consumer affairs in the State as a Member. ¢ absence of the President, the Chief Justice of the High Court may nominate a I Aine judge of the High Court in his place.Every member of the 4 Forum niced to have the follow’ eben fi or 65 years, whi lier <_SResippointment is possible through the Selection fecommendat \_-2-RGiignation can be done with a letter addressed to the State Government \_2 FHEState Government decides the salary structure of the The value of goods and services and compen: lakh rupees. : ion should not exceed 20_ urisdiction in terms of place can be determined a a) Theplace of residence or carrying out of the business of the opposite party, ayn pany or each party \ Bb atfice where the cause of action wholly or partly arises. Holly or partly arises. incceersss with Section 14 of the Act, the District Forum has the power to grant damages. This can be in the form of compensation, removing defects, or deficiencies ontinuing unfair trade practice, withdrawal o} hazardous good for sale and so on (CBection 13 of the Act pertains to the procedure for the admission of a consumer complaint) Procedure for the complaint against an allegedly defective good which the Forum should implement is as follows: a) Within 21 days of filing the complaint, the opposite party should receive a copy to explain his version) The version should be submitted in 30 days, witha maximum extension of 15 day3.) b) When the opposite party either disputes and denies or fails to take action to represent his case, clause (c) or (g) must be followed@)-The complainant may have to pa Sample testing at the said laboratory ©) Dus tee will be given to the laboratory and the report with the appropriate ‘marks will be forwarded to the opposite party. y a fee in order to carry out the process of pone or the Parties disputes the findings of the laboratory, the party's objections ‘should be submitted in writing. Bin panies will be given a reasonable opportunity to be heard by the District Forum. (WE the complainant fails to appear on the dateof the hearing, the Forum may either dismiss the complaint or act on its discretion. ] fit sii (The Consumer Disputes Redressal Commission, better known as State Commission is the second stage of courts from the bottom of the hierarchy. It is the court that deals with the appeals against the grassroots level consumer protection agencies, )The sections 16, 17, 18 and 19 of the Consumer Protection Act, 1986 deal with this Commission. \s- Apart from the President, there are two other members, one being a woman. ° fe number of members in the State Commission cannot be less than 2 o-Pli¢se members are tobe chosen based on three grounds.(They must be at least 35_years of age, they must have a bachelor’s degree from a recognized university and they must have at_least_10 years of experience in law, economics, and commerce and so on.) © Not more than fifty per cent of the members should have a judicial background. o~The State Government determines the remuneration of the members. ain can choose the size of the Commission as one or more ecisions are of the majority, with the President intervening in case of an equal division in opinion2 Ve appointments have certain disqualifications The ab \ A convict sentenced to imprisonment which breaches moral conduct according to the State Government \¢_-AM undischarged insolvent . o-* person of an unsound mind as declared by a competent court © One removed from a government job or a government controlled corporate job AX person with such financial interest that will create a prejudice in his functions as a member. Section 16 1(A) of the Act prescribes that every appointment mentioned above will be made by a committee with is composed of o The President of the State Commission as the Chairman o The Secretary of the Law Department of the State as a Member co The Secretary dealing in consumer affairg in the State as a Member. Every member of the District Forum need to have the following qualifications: © The term is five years or 67 years, whichever is earlier co Reappointment is possible through the Selection Committee's recommendation Resignation can be done with a letter addressed to the State Government Section 17(1) of the Consumer Protection Act, 1986 defined the jurisdiction of the State Commission, explained below : ea ue of goods and services and compensation should be at least 20 lakhs but not exceed 1 crore rupees. \ _2 Appeals against the orders of District Forum are settled here \ orders of Distr: \_2-If the District Forum has seemingly acted beyond its power or has failed in its duty, then the National Commission can call for records. 7 mssron can cam Sor records:ion 17(2)): diction in terms of place can be determined as ( 1 a) The place of resi “cane ‘ F yy place of residence or carrying out of the business of the opposite party, \ 6 b 4 IO (The State Commission may transfer a complaint fo if from th any stage of the proceeding. The State Commission may ordinary place of the capital. ‘These are called Circuit Courts. ths MistritinBctmBeatidar AecthorSthl; Chanditsion observes the same procedure as rt each party K€ place where the cause of action wholly oF partly arises. ie District Forum at also outside of its against the decision of the National Commission. Also, the appellant must ided against him or Rs. 35000, Section 19 of the Act grants an appeal Commission within 30 days to the State have paid 50 per cent of the compensation deci whichever is less. dn al Commission jon, better known as National vucture_ of redressal_agencies, subordinate to the hat deals with the appeals against the State ner Protection Act, 1986 deal with this i. The National Consumer Disputes Redressal Commiss Commission is, the highest str Supreme Court) It is the court t Commission,/The sections of the Consum Section 20 of the Act deals with the composition ofthe National Commission. The important aspects of this Act involve: - L 2 hens President who is or was a judge of the Supreme Court, appointed Ay the Central Government -— — \ There must be 4 members at least, one being ———_— 5 These members are to be chosen based on three grounds. (They must be at ee from a recognized least 35 yonts of ae, they must have a bachelor's deg 2 universi i fd (they must have at [east T0_years of experience in law, economics) commerce and so on. — —_— a woman.o Not mor Fi \ we thi c1 an filly per cent of the members should have i judicial background, | == rhe Centra ven ral Government determines the remuneration af the members. o The President e: : a he este can choose the Bench of the Commission as one OF more 42 D&isions are ofthe major, wih the President imerse equal division in opinion, 7 ing. in case of an The si oppainmens have certain disqualification vvict sentenced to imprisonment which breaches mo 10 the Central Government oA com ral_conduct accordi An undischarged insolvent A person of an unsound mind as declared by a Central .d from a government job or a government cot ° | court ey One remove ntrolled corporate ~ job A person with such fina functions as a member. ncial interest that will create a prejudice in his Seetion 16 1(A) of the Act prescribes that every appointment mentioned above will be made by a committee with is composed of: «A judge of the Supreme Court nominated by Chief Justice of India as the Chairman The Secretary in Department of a Member Legal Affairs of the Government of India as © The Secretary of the department dealing in consumer affairs in the Government of India asa Member. ‘The term is five years or 70 years, whichever is earlier > Reappointment is possible through the Selection Committee’ recommendation Resignation can be done with a letter addressed to the Central GovernmentSection 21 of 21 of the Consumer * A « sstetiatt ati er Protection Act, 4986 defines the jurisdiction of the National Commission, ex} Acts} 986 del J ned below: o They, ~ | he value of goods and services and compensation should exceed | crore rupees © Appeals against the orders of State Commission are settled here semingly acted beyond its power or has failed fon can call for records. olf the State Commission ha: in its duty, then the National Commis ‘a transfer of a complaint from the State Commission at any stage of the proceeding in the interest of justic )‘This can be on the application of the complainant or its own motion, The National Commission may also outside of its ordinary place of the capital of India, New Delhi. These are called Circuit Benches. (The National Commission may receive Phe National Commission has the power to review any order made by itself when there seems to be an error on the record, as stated in Section 22. (section 19 of the Act grants an appeal against the decision of the National ‘Commission within 30 days-to-the Supreme Court. Also, the appellant must have paid 50 per cent of the compensation decided against him or Rs. 50000, whichever is less. ner Councils in the International Sphere: Const o Nigeria: Nigerian Consumer Protection Council (CPC) looks after Consumer Protection. The government has been given the duty to ensure these rights through education. Health is given immense importance and unsafe goods are curbed. Consumer Protection councils ensure speedy relief. Australia: The agencies to ensure Consumer Protection are Australian Competition and Consumer Commission or the individual State Consumer Affairs agencies. They ensure Consumer Rights.