Module -5: Consumer

Protection Act [COPRA]

Background - Definition of (1) Consumer; (2) Consumer Dispute; (3)
Complaint; Deficiency; (5) Service – Consumer Protection Council –
Consumer Redressal Agencies – District Forum – State Commission and
National Commission.

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Functions of Consumer Protection Councils

Raising awareness

Policy formulation

Redressal of Grievances

Monitoring and enforcement

Research and advocacy

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Highlights of Consumer Electronic service provider
Protection Act 2019
Endorsement

Misleading advertisement

Product liability

Unfair Trade practice

Mediation

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Compiled by Prof. Veenu Joy
 The government
The government will notify
will notify the Consumer
the Consumer Protection (E-commerce)
Protection (E-commerce) Rules, 2020 2020
Rules, underunder
the Act
thewhose
Act whose
provisions
provisions are given
are given below.below.

•
• E-commerce
E-commerce entities
entities are required
are required to provide
to provide information
information to consumers,
to consumers, relating
relating to return,
to return, refund,
refund, exchange,
exchange,
warranty warrantydelivery
and guarantee, and guarantee, deliverymodes
and shipment, and shipment, modes
of payment, of payment,
grievance grievance
redressal redressal
mechanism, payment
mechanism,
methods, security payment
of payment methods,
methods,security of payment
charge-back methods,
options charge-back
and country options
of origin. andare
These country of
necessary
origin.These
for enabling are necessary
the consumer for enabling
to make an informed the decision
consumerattothemake an informed
pre-purchase decision at the pre-
stage.
purchase stage.
• These platforms will have to acknowledge the receipt of any consumer complaint within 48 hours and redress
These platforms
the• complaint willmonth
within one have tofrom
acknowledge
the date of the receiptThey
receipt. of any consumer
will also havecomplaint
to appoint within 48
a grievance officer for
hours
consumer and redress
grievance the complaint within one month from the date of receipt. They will also have to
redressal.
appoint a grievance officer for consumer grievance redressal.
• Sellers cannot refuse to take back goods or withdraw services or refuse refunds, if such goods or services are
• Sellers
defective, cannot refuse
deficient, to take
delivered late,back
or if goods
they do ornot
withdraw
meet theservices or refuse
description refunds,
on the if such goods or
platform.
services are defective, deficient, delivered late, or if they do not meet the description on the platform.
• The rules also prohibit the e-commerce companies from manipulating the price of the goods or services to gain
• The rulesprofit
unreasonable also prohibit
through the e-commerce
unjustified pricescompanies from manipulating the price of the goods or services to
gain unreasonable profit through unjustified prices

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Product Liability & Penal Consequences:

A manufacturer or product service provider or product seller will be held responsible to

compensate for injury or damage caused by defective product or deficiency in services
Basis for product liability action:

• Manufacturing defect.
• Design defect.
• Deviation from manufacturing specifications.
• Not conforming to express warranty.
• Failing to contain adequate instructions for correct use.
• Service provided-faulty, imperfect or deficient.

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Alternate Dispute Resolution Mechanism of Mediation:

A complaint will be referred by a Consumer Commission for mediation, wherever scope

for early settlement exists and parties agree for it.
The mediation will be held in the Mediation Cells which will be established under the
aegis of the Consumer Commissions.
There will be no appeal against settlement through mediation.

The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making
the process of dispute adjudication simpler and quicker. This will help with the speedier
resolution of disputes and reduce pressure on consumer courts, who already have
numerous cases pending before them

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Penalties for Misleading Advertisement:

The CCPA may impose a penalty of up to INR 1,000,000 (Indian Rupees One Million) on a manufacturer or an
endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up
to 2 (two) years for the same. In case of a subsequent offence, the fine may extend to INR 5,000,000 (Indian
Rupees Five Million) and imprisonment of up to 5 (five) years. The CCPA can also prohibit the endorser of a
misleading advertisement from endorsing that particular product or service for a period of up to 1 (one) year.
For every subsequent offence, the period of prohibition may extend to 3 (three) years.

- The New Act fixes liability on endorsers considering that there have been numerous instances in the recent
past where consumers have fallen prey to unfair trade practices under the influence of celebrities acting as
brand ambassadors. In such cases, it becomes important for the endorser to take the onus and exercise due
diligence to verify the veracity of the claims made in the advertisement to refute liability claims.

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 For further information on consumer protection act 2019,
kindly refer:

https://www.slideshare.net/DrVikasKhakare/consumer-protection-act-2019

Compiled by Dr. Veenu Joy