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Recently, India reached a goal of $3.7 trillion in economy with the largest consumer base comprising 1.4 billion people. This shows how important consumers are for a successful economy, and why they need protection from unfair practices.
But who is a consumer? According to sections 2(7)(i) and 2(7)(ii) of the Consumer Protection Act 2019 (CPA 2019), a consumer is a person who buys any good for themselves or anyone and hires or avails a service for themselves or anyone for certain payment respectively. This implies that everyone is a consumer from buying groceries to new machinery. However, consumers can be subject to multiple poor and bad practices for which the CPA, 2019 was brought into action on August 9th, 2019.
Key Objectives of CPA 2019
Overall, CPA 2019 intended to protect the consumers which remains the most important point of the Act, however, there exist three underlying key objectives which are:
i. Establishment of principal authority: CPA 2019 establishes the Central Consumer Protection Authority (CCPA) which functions to promote, protect, and enforce the rights of the consumers.
ii. Investigations: It gives the power of investigation to the authorities to conduct investigations upon the something bad happening related to this act
iii. Unfair Trade Practices(UTPs): The act addresses the issue of unfair trade practices such as misleading advertisements, unfair methods of sale, or recall of faulty goods, etc.
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Consumer Rights under the Act
CPA 2019 promises certain rights in the favour of the consumers to protect them from fraudulent acts and safeguard their interests. Six consumer rights are mentioned under section 2(9) of the CPA 2019:
i. Protected: This right protects the consumers from the marketing of goods, services, or products that are hazardous to life and property.
ii. Informed: You have the right to know what you're getting when you buy something. This means being told about the quality, amount, strength, purity, level, and cost of the goods, products, or services you're buying. This is to stop companies from taking advantage of you and selling you stuff that's not what it seems..
iii. Assurance: People should have easy access to all sorts of stuff they need or want, and the prices should be fair. This way, sellers can't treat buyers unfairly.
iv. Being Heard: The right to be heard about the consumer’s interest by an appropriate forum is guaranteed under the section.
v. Redressal: Consumer rights include tackling unfair or restrictive trade practices and protecting consumers from being taken advantage of.
vi. Awareness: Every consumer has the right to consumer awareness.
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Role of the Central Consumer Protection Authority (CCPA)
CCPA is the most important body established under section 10 of the CPA 2019 as a similar kind of body was absent in the previous legislation relating to consumer protection i.e. Consumer Protection Authority 1986.
The authority renders multiple functions and powers that are mentioned under section 18 of the CPA 2019 which are as follows:
The Watchdog: CCPA’s primary aim is to promote, protect, and enforce the consumers’ rights and to prevent violation of consumer rights.
Malicious Acts: To prevent UTPs and ensure no false or misleading advertisement contravenes the provision of the act.
Investigation: The power to inquire or investigate is bestowed to Central Consumer Protection Authority in case of apparent violation of consumer rights or UTPs either on suo motu (taking action on something on one's own initiative, without anyone needing to ask for it) or complaints or directions from the central government.
Miscellaneous: Tasks like spreading awareness, encouraging non-governmental organisations (NGOs), or issuing safety notices, etc are to be carried out by CCPA.
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Filing a Consumer Complaint: Process and Requirements
Filing a consumer complaint under the Consumer Protection Act, 2019 involves several steps and adheres to specific requirements. These are:
1. Identify the Issue:
- Ensure the complaint pertains to issues like unfair trade practices, defective goods, or deficient services.
2. Prepare Documentation:
- Collect all relevant documents such as purchase receipts, warranty cards, and correspondence with the seller or service provider.
3 Draft the Complaint:
- Include the complainant's name, address, and details of the opposing party.
- Clearly describe the nature of the dispute.
- Specify the relief sought (refund, replacement, repair, or compensation).
4. Determine the Appropriate Forum:
- District Consumer: Disputes Redressal Commission: For claims up to ₹1 crore.
- State Consumer: Disputes Redressal Commission: For claims exceeding ₹1 crore but up to ₹10 crores.
- National Consumer: Disputes Redressal Commission: For claims exceeding ₹10 crores.
5. Submit the Complaint:
- File the complaint in writing.
- The consumer can submit it in any registered consumer association, or the Central or State Government.
6. Pay the Filing Fee:
- The fee varies based on the claim amount and must be paid at the time of filing the complaint.
7. Await Acknowledgment:
- The forum will acknowledge receipt of the complaint and initiate the process.
8. Participate in Proceedings:
- Be prepared to present evidence and participate in hearings as the forum requires.
9. Receive the Order:
- The commission will issue an order based on the evidence and arguments presented.
- Ensure compliance with the order issued by the commission.
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Consumer Dispute Redressal Commissions
The Consumer Protection Act, 2019 under chapter 3 of CPA 2019 establishes a three-tier structure for the redressal of consumer disputes:
1. District Consumer Disputes Redressal Commission: The first level of the process is all about handling complaints where the value of the stuff or services and the money being asked for as compensation don't go over 1 crore rupees. The commission can then decide to replace the broken stuff, give back the money that was paid, and even give extra money to make up for any losses the customer had.
2. State Consumer Disputes Redressal Commission: This commission deals with court cases where the amount of money involved is over 1 crore rupees but less than 10 crores. It also listens to complaints about the decisions made by the District Commission. The State Commission can give out the same kinds of help, and it also has the power to punish people who don't follow its orders.
3. National Consumer Disputes Redressal Commission: The National Commission deals with complaints exceeding ₹10 crores and hears appeals against the orders of the State Commission. It serves as the highest appellate body under the Act and can provide comprehensive relief to aggrieved consumers.
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Penalties for Unfair Trade Practices
The Consumer Protection Act, 2019 outlines strict penalties for engaging in unfair trade practices. These practices include false or misleading advertisements, selling harmful goods, and adopting unfair contract terms. Penalties include fines and imprisonment, depending on the severity of the violation.
1. False or Misleading Advertisements:
First Offense: Imprisonment up to 2 years or / and Fine up to ₹10 lakh.
Subsequent Offenses:
- Imprisonment up to 5 years.
- Fine up to ₹50 lakh.
Advertisers must ensure claims in ads are accurate and substantiated to avoid these penalties.
2. Sale of Hazardous Goods:
Initial Violation:
- Imprisonment up to 7 years.
- Fine as determined by the severity of the violation.
Repeated Violations:
- Imprisonment up to life imprisonment.
- Heavier fines.
Ensures manufacturers adhere to safety standards to protect consumer health and safety.
3. Unfair Contract Terms:
Contractual Penalties:
- Contracts with unfair terms may be declared void.
- Sellers may be required to amend terms and provide compensation.
Protects consumers from exploitative contractual obligations.
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4. Non-compliance with Consumer Commission Orders:
Initial Non-compliance: Imprisonment up to 3 years and / or Fine up to ₹1 lakh.
Continued Non-compliance: Further imprisonment and additional fines.
Make sure that decisions from consumer complaint boards are followed.
5 Deceptive Practices:
Initial Penalty: Fine up to ₹10 lakh.
Ongoing Deception: Higher fines and potential imprisonment are based on the frequency and impact of the deceptive practice.
Discourages businesses from engaging in practices that deceive consumers.
6 Non-disclosure of Information:
- First-time Penalty: Fine based on the impact of the non-disclosure.
- Repeated Non-disclosure: Heavier fines and possible imprisonment.
Encourages transparency in providing all relevant product or service information to consumers.
7. Penalty for Manufacturing Defective Goods:
- First-time Offense: Fine and potential product recalls.
- Subsequent Offenses: Increased fines and possible imprisonment.
- Ensures manufacturers maintain high-quality standards in production.
These penalties are designed to uphold consumer rights, ensuring businesses operate fairly and transparently.
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Recent Amendments and Updates
The Consumer Protection Act of 2019 has gotten a makeover, and it's all about making sure you, the consumer, have more rights and an easier time getting things fixed if something goes wrong. One big change is that manufacturers, sellers, and service providers can now be held responsible if their products or services are faulty and cause you harm. No more getting the runaround when something breaks!
Lately, the Central Consumer Protection Authority (CCPA) has gotten a serious boost in power. Now, it can look into and take action against any shady business practices, misleading ads, or violations of consumer rights. The introduction of e-commerce regulations is another significant update, addressing the growing consumer concerns in online transactions.
The changes have set up consumer mediation cells to help resolve disputes outside of court, easing the load on consumer courts and speeding up settlements.
These updates reflect the government's commitment to creating a more strong and consumer-friendly legal framework, aligning with international best practices and addressing contemporary consumer issues effectively.
Conclusion
The Consumer Protection Act, 2019 significantly strengthens consumer rights and ensures fair trade practices in India. By defining clear objectives, the Act empowers consumers with rights to be informed, assured, heard, and redressed.
The Central Consumer Protection Authority (CCPA) and Consumer Dispute Redressal Commissions were set up to make sure that people who have complaints about products or services they bought can get help quickly and easily. There are strict penalties for businesses that don't treat their customers fairly, and there have been new changes to the rules, like e-commerce regulations and consumer mediation cells, that help protect consumers even more.
These measures collectively promote a fair, transparent, and consumer-friendly marketplace, reflecting the Act’s commitment to safeguarding consumer interests in India’s growing economy.
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FAQs
1. What's the deal with the new e-commerce rules under the Consumer Protection Act, 2019?
The Act now covers e-commerce platforms big time. It mandates transparency in terms of seller details, country of origin, and even the return and refund processes. E-tailers can't just sell anything and everything; they need to ensure the authenticity and safety of their products. Plus, consumer grievances must be addressed promptly, which is a big win for online shoppers!
2. How has the definition of 'consumer' changed in the 2019 Act?
The definition is broader now. It includes not just buyers but also those who buy for resale or commercial purposes, provided it's for earning their livelihood by means of self-employment. It also covers consumers using electronic and tele-shopping platforms. So, if you're buying stuff online, you're definitely covered under this Act.
3. What's new with the Central Consumer Protection Authority (CCPA)?
The CCPA is a game-changer. It can take suo moto action, conduct investigations, and file class-action suits on behalf of consumers. This authority can recall unsafe goods, order reimbursements, and even impose penalties on false advertising. Basically, it's there to crack down on unfair trade practices and protect your rights in a more powerful way.
4. How does the Act handle misleading advertisements now?
Misleading advertisements are a big no-no. Celebrities endorsing products can be held accountable if the claims are false or misleading. The CCPA can slap fines or even ban the endorsement of products. So, next time you see your favorite star pitching a miracle product, remember they could be in hot water if it doesn't live up to the hype.
5. What's the significance of product liability under this Act?
Product liability is a major highlight. Manufacturers, service providers, and sellers can all be held accountable if a product causes harm due to manufacturing defects, design flaws, or insufficient instructions. This means you can claim compensation not just from the seller but also from the producer or even the service provider associated with the product.
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6. Are there any new provisions for unfair trade practices?
Yes, there are specific provisions now. Unfair trade practices include misleading advertisements, false representation of goods or services, and unfair contract terms. The Act also addresses the issue of 'black marketing' and 'hoarding'. So, if you feel cheated, there's a strong legal framework to back you up.
7. How has the dispute resolution process been improved?
The Act introduces mediation as an alternative dispute resolution mechanism. This can save a lot of time and money compared to traditional litigation. Also, the pecuniary jurisdiction of consumer courts has been revised, allowing more cases to be filed at the district level. Plus, hearings through video conferencing are allowed, making the process more consumer-friendly.
8. What are the penalties for not complying with the new regulations?
Penalties can be pretty hefty. Manufacturers or service providers found guilty of providing defective goods or services can be fined and may face imprisonment. For false advertisements, fines can go up to ₹10 lakhs and repeat offenders might even face jail time. The Act aims to ensure that consumer rights are not just protected but enforced rigorously.
References
Written by Chandra Kant Singh
Aspiring lawyer with a passion for justice and a strong foundation in organisation, communication, and problem-solving skills. Currently pursuing a B.A.LL.B. (Hons.) degree at RMLNLU, where I am actively involved in moot court and NegMed competitions. Eager to leverage my skills and academic background to contribute to a dynamic legal environment and make a positive impact on society.
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Further Reading
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