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‘Achche Din’ For You As ‘Consumer Protection Act, 2019’ Comes Into Force

NEW DELHI: The Consumer Protection Act, 2019 came into force yesterday. Briefing the media about the new law through a video conference in New Delhi yesterday, Consumer Affairs Minister Ram Vilas Paswan said that this new Act will empower consumers and help them in protecting their rights through its various notified Rules and provisions.

He said the Act includes the establishment of the Central Consumer Protection Authority, CCPA to promote, protect and enforce the rights of consumers.

The CCPA will be empowered to conduct investigations into violations of consumer rights and institute complaints or prosecution, order a recall of unsafe goods and services, order discontinuance of unfair trade practices and misleading advertisements, impose penalties on manufacturers or endorsers or publishers of misleading advertisements.

Paswan said that the rules for the prevention of unfair trade practice by e-commerce platforms will also be covered under this Act. The gazette notification for establishment of the Central Consumer Protection Authority and rules for prevention of unfair trade practice in e-commerce are under publication.

Details:

The new Act provides for simplifying the consumer dispute adjudication process in the consumer commissions, which include, among others,  empowerment of the State and District Commissions to review their own orders, enabling a consumer to file complaints electronically and file complaints in consumer Commissions that have jurisdiction over the place of his residence, videoconferencing for hearing and deemed admissibility of complaints if the question of admissibility is not decided within the specified period of 21 days.

The Minister said an Alternate Dispute Resolution mechanism of Mediation has been provided in the new Act.  This will simplify the adjudication process.

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 to be established under the aegis of the Consumer Commissions.  There will be no appeal against settlement through mediation.

The Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases up to Rs. 5 lakh.

There are provisions for filing complaints electronically, credit of amount due to unidentifiable consumers to the Consumer Welfare Fund (CWF).  The State Commissions will furnish information to Central Government on a quarterly basis on vacancies, disposal, the pendency of cases and other matters.

The New Act also introduces the concept of product liability and brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation.

The Act provides for punishment by a competent court for manufacture or sale of adulterant/spurious goods.

The court may, in case of a first conviction, suspend any licence issued to the person for a period of up to two years, and in case of second or subsequent conviction, cancel the licence.

Under this new Act, besides general rules, there are Central Consumer Protection Council Rules, Consumer Disputes Redressal Commission Rules, Appointment of President & Members in State/District Commission Rules, Mediation Rules, Model Rules and E-Commerce Rules and Consumer Commission Procedure Regulations, Mediation Regulations and Administrative control over State Commission & District Commission Regulations.

Paswan said that the Central Consumer Protection Council Rules are provided for constitution of the Central Consumer Protection Council, an advisory body on consumer issues, headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from different fields.

The Council, which has a three-year tenure, will have Minister-in-charge of consumer affairs from two States from each region- North, South, East, West, and NER. There is also provision for having working groups from amongst the members for specific tasks.

In his concluding remarks, Shri Paswan said that in earlier Consumer Protection Act, 1986a single-point access to justice was given, which is also time-consuming.

The new act has been introduced after many amendments to provide protection to buyers not only from traditional sellers but also from the new e-commerce retailers/platforms. He said that this Act will prove a significant tool in protecting consumer rights in the country.



from League of India