Y.P BHAGAT, KUMAR KESHAV Commentary on THE CONSUMER PROTECTION ACT, 2019

The Consumer Protection Act, 2019 is a significant piece of legislation in India, aimed at strengthening the rights of consumers and providing them with better protection in the marketplace. It was enacted to replace the Consumer Protection Act, 1986, and to address emerging challenges in consumer rights, especially in the context of e-commerce, unfair trade practices, and the increasing complexity of consumer disputes.

Here’s a commentary on the key features and objectives of the Consumer Protection Act, 2019:

1. Consumer Protection Councils

The Act establishes a framework for creating Central Consumer Protection Authority (CCPA), which is empowered to investigate consumer complaints, file class action suits, and take proactive measures to prevent unfair trade practices and misleading advertisements. This central body aims to serve as a watchdog for consumer rights and interests.

2. Expansion of Consumer Rights

The new Act significantly expands consumer rights to include:

• Right to be protected against hazardous goods and services
• Right to be informed about the quality, quantity, potency, price, and standard of goods and services
• Right to seek redressal of grievances
• Right to consumer education

These rights are designed to ensure that consumers can make informed choices and seek compensation in cases of harm caused by faulty goods or services.

3. E-Commerce and Online Marketplaces

The Act addresses issues arising from the rapid growth of e-commerce by imposing responsibilities on online platforms. It mandates e-commerce companies to:

• Register with the government
• Provide clear and transparent information about the goods and services they offer
• Ensure fair trade practices by stopping misleading advertisements
• Facilitate easy grievance redressal mechanisms for consumers

This provision is crucial in the context of increasing online shopping, where consumers are often vulnerable to fraud or poor service.

4. Centralized and Efficient Dispute Resolution

The Act strengthens the consumer dispute resolution mechanism by setting up District Consumer Disputes Redressal Commissions, State Consumer Disputes Redressal Commissions, and the National Consumer Disputes Redressal Commission (NCDRC). It aims to speed up the resolution process and make it more accessible.

• Online dispute resolution (ODR) is also introduced to help consumers resolve grievances through digital platforms, which simplifies the process and increases accessibility.

5. Strict Penalties for Unfair Trade Practices

The Act imposes stricter penalties and punishments for engaging in unfair trade practices, such as deceptive advertising, fraudulent promotions, and selling defective or counterfeit products. Punishments may include fines and imprisonment for individuals or companies involved in such practices.

6. Product Liability

The Act introduces provisions related to product liability, which hold manufacturers, service providers, and sellers accountable for any defects in goods or services. If a product or service causes harm to a consumer, the manufacturer or seller is liable for compensation, further ensuring consumer protection.

7. Class Action Suits

Consumers now have the right to initiate class action lawsuits for collective redressal in cases where a large group of consumers is affected by a common issue, such as defective products, misleading advertisements, or hazardous services. This provision enhances the ability of consumers to seek justice in mass cases.

8. Increased Transparency

The Act requires that businesses and service providers be more transparent about their dealings with consumers. They must disclose crucial information such as the price, quality, and risks associated with the products or services they sell. This aims to protect consumers from exploitation and unintentional harm.

9. Strengthened Consumer Forums

The Act strengthens consumer forums and ensures that consumers have easy access to justice without cumbersome legal procedures. It also ensures that these forums are equipped to handle digital and online complaints, which are becoming more common.

10. Revised Definitions of 'Consumer' and 'Deficiency'

The Act updates definitions of a consumer and deficiency in services. It includes individuals who buy goods for commercial purposes (to some extent) and refines the idea of what constitutes deficiency in service to encompass a broader range of issues.