Each person purchases different goods and services in their everyday life. Anything they purchase needs to Pay for itself and get fulfilment from its utilization and use. But now and again they don’t feel happy with the item they buy. This might be a record of low quality of the item, cheating by the retailer, lower nature of constants, deceiving promoting, etc.
The digital era has guided and immensely filled in this new period of online business and acquired its degree new assumptions and wants of the shoppers. It has now become effectively available, with more extensive decisions to the customers, and gives viable techniques for business.
Because such a transformation is achieved by digitalization, the consumer protection act, of 1986 had a few difficulties and confronted numerous mishaps which required quick consideration. Be that as it may, the public authority achieved an extraordinary change and presented the Buyer Security Act, 2019 which came into force on 20 July 2020. This previous sanctioning had been reconsidered once in a while to get it congruity with changes achieved by globalization, financial progression, digitalization of items and administrations, and so on be that as it may, its execution was far to accomplish its ideal goal of financial regulation which looked to give security of the interests of the customers. While then again the new Buyer Insurance Act, 2019 will fortify and upgrade the extent of assurance given to the purchasers by redoing the promoting claims, supports, disciplines, prison terms, organization of the debates, and different variables.
The Consumer Protection Act
Consumer Protection Act is a law that protects consumers from unfair, harmful methods by businesses and sellers of goods and services. First Consumers Protection Act came in 1986 and the parliament of India elected it. It also gives consumers the right to Safety, Choice. Also, the Consumers Protection Act imposes duties and liabilities on producers. It gives hope for the bits of help of helpless consumers. This Consumers Protection Act came as a “Panacea” for consumers all over the country. The Consumers Protection Act makes a system name “three-tier” it is set up at the State, District, and National levels. The Consumer Protection Act was replaced by the Government as The Consumers Protection Act 2019.
Features of The Consumer Protection Act 2019
The Consumer Protection Act 2019 has some features that are:
- The Consumer Protection Act defines a consumer as a person who buys goods and services with careful thought.
- Consumer Protection Act does not allow goods and services for commercial purposes.
- Consumers Protection Act covers transactions with all modes online, and offline through electronic, also multi-level marketing.
- For Consumer Protection Act central Government made set up it was CCPA (Central Consumer Protection Authority).
- It protects and enforces the right of consumers CCPA impose a penalty for those who supply goods up to 10 lacks and two-year imprisonment for any false advertisement.
- For subsequent offense fine extend to Rs 50 lakh and imprisonment for five years.
Rights of The Consumers
In The Consumer Protection Act 2019, Consumers have some rights that are:
- Consumers have the right to know all the information related to the goods and services, like goods and services quality, quantity, how much pure, and also the prices should inform the consumer.
- Sometimes consumers’ right to protect goods and services can be dangerous to their life and property. Rights to protect from hazardous goods and services.
- The consumer has the right to be protected from unfair trade practices.
- They have the right to access a variety of goods and services.
- Consumers should have the right remedy or compensation for any losses or suffering.
- Right to give consumers proper education.
- Also, the consumer has the right to need a clean and healthy environment.
The Consumers Protection Act 2019 Authority
- The central government establish an authority to protect consumer goods and services, which is CCPA (Central Consumer Protection Authority) as a regulatory authority.
- CCPA protects consumer rights and regulated some cases that are related to unfair trade practices.
- CCAP gives power to consumers.
- Consumers can take Suo-Moto action, recall the product and cancel licenses.
- CCAP has the right to investigate consumer law violations.
Product of Goods and Services Liability
The huge expansion to the 2019 demonstration is the arrangement for item obligation by which the makers or specialist co-ops have been made dependable to repay the purchaser for any mischief, injury, or misfortune experienced because of damaged items, or lack of help. This additionally incorporates web-based business inside its ambit and even they can’t get away from the fury of the go-about as now the item responsibility has been stretched out to the specialist co-ops and not simply restricted to the producers.
- The defeat of some Design.
- Responsible for all the compensation for injuries and damages.
- Services of the product provided faulty.
Issues with Consumer Protection Act, 1986
- Remove all the imperfections from the goods;
- Substitution of the goods;
- Discount of the prices which are paid;
- Give compensation to the consumer for all the losses or injuries;
- Withdrawal of the hazardous goods from being made available for purchase; or Giving satisfactory expenses to parties.
- Evacuation of deformities or lacks in the administrations;
- Discontinuance of unjustifiable exchange rehearses or prohibitive exchange practices or course not to rehash them.
Consumer Protection Act 2019 Amendment
- In chapter one section 2 sub-clauses(4),(13),(14),(16),(40)
- In chapter two sections 3 to 9 both are inclusive
- In chapter four sections 28 to 73 both are inclusive. Except for some sub-clauses (iv) of clause (a) of sub-section(1) of section 58.
- In chapter five sections 74 to 81 both are inclusive
- In chapter six sections 82 to 87 also both are inclusive
- In chapter seven sections 90 and 91 except sections 88,89,92&93
- In chapter eight sections 95,98,100 sections 101 except for some clauses (f) and clauses (zg), (zh), and (zi) of the sub-sections 2
- Sections 102,103,105, 106, 107 except sections 94,96,97,99,104
The National Consumer Disputes Redressal Commissions(NCDRC) will hear grievances where the debate esteem is worth more than Rs. 10 crores. The State Consumer Disputes Redressal Commissions will hear objections where the contested worth is more than Rs 1 crore but not as much as Rs 10 crore. While the Locale Buyer Questions Redressal Commissions will engage in protests when the worth of products or administration depends on Rs 1 crore.
Consumer Protection Act Demonstration and Direct Selling
One more change was connected with online business working as per the regulations set for direct selling. The rules make it obligatory for the e-organizations to uncover the dealer’s subtleties like their location, site, email, and so on, and data connected with discount, return, assurance and guarantee, conveyance, shipment, instalment choices, the wellbeing of instalment, complaint taking care of the instrument and so on. This step is fundamental as in the developing universe of online businesses damaged and lacking items and administrations are given and through this arrangement the organizations could be punished for something very similar.
“Under the new Demonstration, the web-based business will be represented like direct selling in India and online stages for selling labour and products, or conglomerating administrations will be expected to take responsibility for any infringement of customer privileges or embracing any out-of-line exchange rehearses,” Mehta said
Supreme Court Cases
- Rojer Mathew v. South Indian Bank LTD. (This Judgement came in November 2019) Judgement given by Ranjan Gogoi Chief justice of India Leave Granted.
- Association For Consumer Welfare And Aid v. Granite Properties Private Limited (2019) This case was dealt with by the Supreme Court of India. The Judgement of the Court delivered by DR. D.Y. Chandrachud, j. Civil appeal no 259 of 2019 The National consumer disputes redressal commission(NCDR). “ The consumer on whose behalf this complaint is instituted did not hire or avail the services of opposite party 1 and therefore they cannot be said to its consumers.“
- M/S. Texco Marketing Pvt. Ltd. v. TATA AIG General Insurance Company Ltd (2022)
- Ibrat Faizan v. Omaxe Buildhome Pvt.Ltd.(2022)
- Shankarlal Nandani v. South Indian Bank LTD.(2022)
- Texco Marketing Private Limited v. Tata Aig General Insurance Company Limited And Others. (2022)
- Sunil Kumar Maity v. State Bank of India and another(2022)
Different Features of the Consumer Protection Act 1986 and 2019
In consumer protection act there is some kind of differences we find between the consumer protection act 1986 and the consumer protection act 2019 that’s are:
In Consumer Protection Act 1986 there is no separate regulator but in Consumer Protection Act 2019 there is an authority formed that is CCPA(Central consumer protection act)
- Consumer Court:
In the consumer act, 1986 complaint was filed in the consumer court where the sellers or the defendant’s office is located but in Consumer Protection Act 201complaintsed filed the consumer court where the complaints are worked.
- Product Liability:
In Consumer Protection Act 1986 there is no such provision of product liability consumers can apply in civil court but not in consumer court. In Consumer Protection Act 2019 consumers have product liability they get their compensation for any kind of harm caused by the services.
- Mediation Cells:
In Consumer Protection Act 1986 there is no such legal provision for Mediation cells but in Consumer Protection Act 2019 court refer settlement through the mediation cells.
The Consumer Protection Act 2019 is a productive step that would bear natural products later on. The act incorporates inside itself a few new ideas which were the need of great importance and the prospect of executing a similar in a nation like India would give a palatable outcome. In the developing universe of digitalization steps like e-recording of cases, and procedures through video conferencing will change, create and upgrade customer freedoms by and large. However, one can’t deny and scrutinize the execution of down-to-earth earth use of the arrangements. For any law and regulation to find actual success, fundamental its execution ought to be done appropriately and productively. Hence, for the 2019 demonstration to become useful it needs to defeat its disadvantages and slack ought to be given to realize the help for the shoppers. Consumer Protection Act gives a law designed to ensure fair competition and free of truthful information in the market areas. The law is designed to prevent businesses that are engaged in fraud or UTP(Unfair Trade Practices). The Consumer Protection Act 2019, is a Constructive Step that would bear fruits in the Future.
- Consumer Protection Act 1987, https://www.which.co.uk/consumer-rights/regulation/consumer-protection-act-1987-a5xTL3w6L9OI
- THE CONSUMER PROTECTION ACT, 1986, https://legislative.gov.in/sites/default/files/A1986-68_0.pdf
- The Consumer Protection Act, 2019, https://consumeraffairs.nic.in/sites/default/files/CP%20Act%202019.pdf
- Draft Consumer Protection (Direct Selling) Rules, 2021, https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/Draft%20Consumer%20Protection%20%28Direct%20Selling%29%20Rules%2C%202021.pdf
- Rojer Mathew v. South Indian Bank Limited, (2020) 6 Supreme Court Cases
- Shipra Singh, Here’s how consumers will benefit under the new Consumer Protection Act, https://economictimes.indiatimes.com/wealth/spend/heres-how-consumers-will-benefit-under-the-new-consumer-protection-act/articleshow/70711304.cms?from=mdr
This article is written by Pranita Dhara, a student of Lloyd Law College.