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Consumer Act 1

The Consumer Protection Act, 2019 aims to provide stronger protection for consumers. It supersedes the earlier 1986 act and covers all goods and services. Key features include expanded definitions of unfair contracts and trade practices; increased monetary jurisdiction for consumer commissions; provisions for mediation; penalties for misleading advertisements; and the establishment of a Central Consumer Protection Authority with investigation powers.

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45 views18 pages

Consumer Act 1

The Consumer Protection Act, 2019 aims to provide stronger protection for consumers. It supersedes the earlier 1986 act and covers all goods and services. Key features include expanded definitions of unfair contracts and trade practices; increased monetary jurisdiction for consumer commissions; provisions for mediation; penalties for misleading advertisements; and the establishment of a Central Consumer Protection Authority with investigation powers.

Uploaded by

Arun Kumar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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THE CONSUMER

PROTECTION ACT,2019-1
BY
PROF.SUJIR PRABHAKAR
DEFINITION
• This is an act of Parliament came in to effect from 20th July,2020.
• This act supersedes the earlier act of 1986.
• This act contains 107 sections and extends to whole of India.
• The act attempts complete protection from malpractices of
manufacturers, producers, suppliers, wholesalers, retailers and providers
of various services.
• This also covers celebrities who indulge in misleading advertisements or
endorsements of certain products.
• This act is designed to make available inexpensive and speedier justice to
the consumers.
DEFINITION
• The act provides for establishment of Central Consumer Protection
Authority(CCPA) with wide powers of enforcement.
• The remedy to the consumers is provided under three tier quasi-
judicial mechanism comprising of District commission, state
commission and National commission.
SALIENT FEATURES OF THE ACT:-
1. Act applier to all goods and services unless specifically exempted by
the Central Government.
2. It covers all sectors- private, public and co-operative
SALIENT FEATURES
3. The provision of the act is purely compensatory in nature.
4. The following six rights of consumers are protected-a) right to safety b)
right to be informed c) right to choose d) right to be heard e) right to
seek redressal and f) right to consumer awareness.
5. The act envisages establishment of Consumer Protection Councils at
the center, state and district level with a main objective to promote and
protect rights of the consumers by rendering advice.
6. To provide a simple, speedy and inexpensive redressal of consumer
grievances by providing three tier quasi-judicial system.
7.Engagement of advocates is not mandatory to file complaints
IMPORTANT FEATURES
1. WIDE COVERAGE OF TRANSACTION:-
• Sale of goods and services through off line, on-line, teleshopping,
direct selling and multi level marketing.
2. ENHANCED PECUNIARY JURISDICTION OF THE COMMISSIONS:-
• The monetary ceiling on the value of goods or services is enhanced
for the three tier quasi-judicial commissions.
• District commission – cases up to Rs 1 crore
• State commission – cases above Rs 1 crore but less than Rs 10 crores
• National commission – cases above Rs 10 crores.
IMPORTANT FEATURES
3.ESTABLISHMENT OF CENTRAL CONSUMER PROTECTION AUTHORITY:-
• CCPA will have an investigative wing headed by a director general which is
empowered to conduct investigation.
• CCPA is mandated to take Suo-moto actions, is empowered to recall
products, order reimbursement of price of goods or services, cancel licenses
and file class action suits if complaints are more than one individual.
4. PRODUCT LIABILITY AND PENAL CONSEQUENCES:-
• Section: 2(35) allows a person to make a claim of product liability against the
manufacturers, sellers or service providers for such defective products and
services.
IMPORTANT FEATURES
• Product liability means the responsibility of a product manufacturers,
product seller related to the product to compensate for any harm
caused to a consumer by such defective products or deficiency in
service products.
• Product manufacturer is held liable if product contains manufacturing
defects or design defect or deviation from manufacturing
specification or does not confirm to the express warranty or fail to
contain instructions of correct usage.
• Product seller who sells the products
IMPORTANT FEATURES
• Product service provider is held liable if the service provided is faulty or
imperfect or deficient or inadequate in quality. There is an act of
omission or commission or negligence or consciously withholding any
information which may cause harm
6. NEW GROUNDS TO FILE COMPLAINT:-
• The earlier act of 1986 covered 6 major grounds to file complaints.
• This act has introduced one more major grounds for filing complaint-
unfair contract.
• This clause gives consumers to challenge contracts which are unfair,
unilateral and unreasonable.
IMPORTANT FEATURES
Some of the unfair contracts are in the nature:-
a) demanding excessive security deposit for performance of a contract
b) imposing penalty disproportionate to the loss to breach of contract by
consumers.
c) Refusing to accept early payment of debt or imposing penalty for early
payment with an intention to terminate the contract.
d) Permitting one party to assign the contract to the detriment of the other
party who is a consumer without his consent.
e) Imposing on the consumer any unreasonable charge, obligation or
conditions that puts the consumer in a disadvantage position.
IMPORTANT FEATURES

• Expanding definition of unfair trade practices:-


• Earlier act of 1986 covered six types of unfair trade practices. The
present act has added its coverage to another 3 unfair trade practices.
a) Failure or refusal to issue of bills or cash memos
b) Refusal to take back or withdraw defective goods or services.
Refusal to refund the consideration amount paid.
c) Disclosure of consumers’ personal information to any other
persons.
IMPORTANT FEATURES
7. MASSIVE PENALTIES FOR MISLEADING ADVERTISEMENTS:
• The CCPA is empowered to impose a penalty up to Rs 10 lakhs on a
manufacturer or an endorser for a false or misleading advertisements.
• The CCPA is also empowered to sentence them to imprisonment for up
to two years.
• In the case of offence recurring, the fine may extended up to Rs50 lakhs
and imprisonment up to 5 years.
• The CCPA is empowered to prohibit misleading advertisements for a
period up to one year. In the event of subsequent offence, prohibition
may be extended to 3 years.
IMPORTANT FEATURES
8. PROVISION OF ALTERNATE DISPUTE RESOLUTION:-
• Introduction of mediation as an alternative dispute resolution
mechanism making the process of adjudication simpler and quicker.
• Mediation cells are attached to district, state and national commissions.
• Matters are first referred to mediation cells if parties consent for
mediation.
9. INCLUSION OF HEALTH CARE IN THE DEFINITION OF SERVICES:-
• The Supreme court has in its judgement held that patients are
consumers as they avail medical services for payment.
TYPES OF COMPLAINANTS
1. A consumer
2. Any voluntary consumer association
3. The Central or any State Governments
4. The central authority
5. One or more consumers with the same interest
6. Legal heirs of a consumer
7. In the case of consumer being a minor, parents as natural guardian
8. A firm whether registered or not
TYPES OF COMPLAINANTS
9. A Hindu Undivided Family
10. A cooperative society
11. An association of persons
12. any corporation, company or a body of individuals whether
incorporated or not.
TYPES OF COMPLAINT
1. Unfair contract or unfair trade practices or a restrictive trade practices by the seller
or service provider.
2. Goods bought suffer from one more defects
3. Services availed suffer from deficiency
4. Collecting price in excess of the price exhibited
5. The goods that are hazardous to life and safety the use of which is not properly
informed.
CONSUMER:-
6. A buyer who buys the goods for a consideration for the purpose of consumption
either himself or his family.
7. A consumer who hires or avails of any service for a consideration.
CONSUMER
• Goods availed for the purpose of resale is treated as commercial
purpose which is not covered under this act.
DEFECTS IN GOODS:-
• Defects means any fault, imperfection or shortcoming in the quality,
quantity, potency, purity or standard- section:2(10)
DEFICIENCY IN SERVICE:-
• Deficiency means any fault, imperfection, short coming or
inadequacy in the quality, nature and manner of performance of
service.
DEFICIENCY IN SERVICE
• Any act of negligence or omission or commission by which loss or
injury is caused to the consumers.
• Deliberate withholding of relevant information to the consumers.
RESTRICTIVE TRADE PRACTICES:-
• Any trade practice which tends to manipulation of price or conditions
of delivery or to affect flow of supplies in the market relating to goods
or services.
• Delay beyond the period agreed by a trader to supply or providing the
services which resulted in price increase.
UNFAIR TRADE PRACTICE
• Means a trade practice, which for the promotion of sales, use or
supply of any goods or for the provision of any service, adopts any
unfair method or unfair or deceptive practice.
• Misreporting on standard, quality. Quantity. Grade, composition, style
or model.
• Falsely represent that the services are of particular standard, quality
or grade

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