Laxman The consumer protection act, 2019

The Consumer Protection Act, 2019, was enacted to replace the Consumer Protection Act, 1986, with the aim of addressing emerging consumer concerns, especially in the era of digital transactions and e-commerce. The Act strengthens consumer rights, establishes a more efficient dispute resolution mechanism, and provides for strict penalties against unfair trade practices.

Objectives of the Act

1. To protect consumer rights and prevent unfair trade practices.

2. To establish a robust grievance redressal mechanism.

3. To regulate e-commerce and product liability more effectively.

4. To empower consumers with rights and remedies against misleading advertisements and defective goods/services.

Key Features of the Consumer Protection Act, 2019

1. Consumer Rights

The Act recognizes six fundamental consumer rights:

• Right to safety.

• Right to be informed.

• Right to choose.

• Right to be heard.

• Right to seek redressal.

• Right to consumer education.

2. Establishment of the Central Consumer Protection Authority (CCPA)

• The Act introduces the CCPA, a regulatory authority tasked with preventing unfair trade practices, protecting consumer rights, and imposing penalties on violators.

• The CCPA has the power to investigate complaints, recall hazardous products, and impose fines on misleading advertisements.

3. E-Commerce Regulations

• The Act includes provisions for regulating e-commerce platforms and online transactions.

• E-commerce entities must disclose seller details, refund policies, and grievance redressal mechanisms.

• Online marketplaces are liable for misleading advertisements and unfair trade practices.

4. Product Liability

• The Act introduces product liability provisions, making manufacturers, service providers, and sellers responsible for defective products and services.

• Consumers can claim compensation for harm caused due to defective or hazardous products.

5. Consumer Dispute Redressal Commissions

The Act provides a three-tier dispute resolution mechanism:

• District Commission (up to ₹1 crore claims).

• State Commission (₹1 crore to ₹10 crore claims).

• National Commission (above ₹10 crore claims).

• Appeals can be made at higher levels, ensuring accessibility and fairness in consumer justice.

6. Penalties for Misleading Advertisements and Unfair Trade Practices

• The Act imposes fines and penalties on businesses for misleading advertisements.

• Endorsers (celebrities, influencers) promoting false claims can be held liable.

• Strict action can be taken against businesses engaging in fraudulent or deceptive practices.

Challenges in Implementation

1. Awareness among Consumers: Many consumers remain unaware of their rights and the available grievance redressal mechanisms.

2. Delayed Resolution of Cases: Despite the three-tier dispute resolution system, case backlogs can delay justice.

3. E-commerce Monitoring: Regulating online transactions and ensuring compliance among foreign e-commerce platforms is challenging.

4. False Consumer Complaints: Some cases involve fraudulent complaints, leading to misuse of the Act.