Consumer Protection Act : An overview with FAQ

 

Consumer Protection Act

The Consumer Protection Act, 2019 is an act of the Parliament of India that aims to provide for the protection of the interests of consumers and for the establishment of authorities for the timely and effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto.

The act replaces the Consumer Protection Act, of 1986 and introduces several new features such as:

The establishment of a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers and to regulate matters relating to violation of consumer rights, unfair trade practices and false or misleading advertisements.

The establishment of Consumer Disputes Redressal Commissions (CDRCs) at the district, state and national levels to adjudicate consumer complaints. The CDRCs have the power to order compensation, refund, replacement, discontinuation of unfair trade practices, recall of defective goods, etc.

The provision of mediation as an alternative dispute resolution mechanism to settle consumer disputes amicably.

The expansion of the scope of consumer rights includes the right to be informed, the right to choose, the right to be heard, the right to seek redressal, the right to consumer education and the right to a fair contract.

The inclusion of e-commerce transactions and online services within the ambit of the act. The act also mandates that e-commerce platforms and sellers should provide information such as return, refund, exchange, warranty, delivery, shipment, etc. to consumers and should not engage in unfair trade practices or mislead consumers.

The act also prescribes penalties for non-compliance with its provisions, such as imprisonment, fine or both for manufacturers or service providers who cause injury or death to consumers due to defective products or services; fine up to Rs. 10 lakhs for false or misleading advertisements; fine up to Rs. 50 lakhs and imprisonment up to five years for repeat offenders; etc

     FAQs on the Consumer Protection Act 

Q: When was the Consumer Protection Act enacted and what are its main features?

A: The Consumer Protection Act was enacted in 2019 and came into force in 2020. It replaced the previous act of 1986 and introduced several new features such as:

The inclusion of e-commerce, direct selling, multi-level marketing and teleshopping transactions within the scope of the act.

The establishment of a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers and to regulate matters relating to violation of consumer rights, unfair trade practices and false or misleading advertisements.

The establishment of Consumer Disputes Redressal Commissions (CDRCs) at the district, state and national levels to adjudicate consumer complaints and provide mediation as an alternative dispute resolution mechanism.

The expansion of the scope of consumer rights includes the right to be informed, the right to choose, the right to be heard, the right to seek redressal, the right to consumer education and the right to a fair contract.

The provision of strict norms for product liability and misleading advertisements and penalties for non-compliance with the provisions of the act.

Q: Who is a consumer under the act?

A: A consumer is a person who buys any goods or services for a consideration, which has been paid or promised or partly paid and partly promised, or under any system of deferred payment. It also includes the user with approval of such goods or beneficiary of services. The expression “buys any goods” and ‘hires or avails any services” includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing.

Q: Who is not a consumer under the act?

A: A person who obtains goods or services free of charge, who obtains goods for resale or for any commercial purpose, who avails services for any commercial purpose, who avails services under a contract of service is not a consumer under the act. Commercial purpose does not include the use by a person of goods bought and used by him exclusively to earn his livelihood using self-employment.

Q: What are goods under the act?

A: Goods means every kind of movable property and includes food as defined in clause (j) of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006.

Q: What are services under the act?

A: Services means service of any description which is made available to potential users and includes, but is not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information. It does not include the rendering of any service free of charge or under a contract of personal service.

Q: What are consumer rights under the act?

A: Consumer rights are guaranteed under the act and include:

Right to safety: The right to be protected against the marketing of goods and services which are hazardous to life and property.

Right to be informed: The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services as the case may be to protect the consumer against unfair trade practices.

Right, to choose The right to be assured, wherever possible, access to a variety of goods and services at competitive prices.

Right to be heard: The right to be heard and to be assured that consumers’ interests will receive due consideration at appropriate forums.

Right, to seek redressal: The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.

Right to consumer education: The right to consumer education.

Q: What are consumer dispute redressal agencies under the act?

 A: Consumer dispute redressal agencies are quasi-judicial bodies established under the act to provide simple, speedy and inexpensive redressal to the grievances of consumers. They are:

District Consumer Disputes Redressal Commission (DCDRC): It has jurisdiction to entertain complaints where the value of goods or services paid does not exceed Rs. 1 crore.

State Consumer Disputes Redressal Commission (SCDRC): It has jurisdiction to entertain appeals against the orders of DCDRC and complaints where the value of goods or services paid exceeds Rs. 1 crore but does not exceed Rs. 10 crore.

 National Consumer Disputes Redressal Commission (NCDRC): It has jurisdiction to entertain appeals against the orders of SCDRC and complaints where the value of goods or services paid exceeds Rs. 10 crores.