ABSTRACT
Consumer Protection Act 2019 has been enacted and has been brought
to function on 20th July 2020 and has replaced the 1986 Act. The aim
of this Act is to protect the interest of consumer. The researcher has
begun with the introduction wherein he has explained in brief about the
enactment process of the Consumer Protection Act 2019 and why this
Act has been enacted. The researcher further has talked about the key
highlights of the Consumer Protection Act, 2019 wherein what all new
things has been added in the Act and which provision of the 1986 has
been amended. The researcher eventually has concluded by saying why
the 2019 Act was enacted wherein the researcher has said that it has
been enacted to provide a quicker and simpler access to the consumer
for the redressal of the consumer grievances.
INTRODUCTION
Consumer Protection Act was enacted to protect the interest of
consumer. Ram Vilas Paswan (Minister of Consumer Affairs, Food and
Public Distribution) proposed the Consumer Protection Bill, 2019 in the
parliament, and Lok Sabha and Rajya Sabha enacted the bill on 30th
July and 6th August respectively. The President of India gave his assent
on 9th August 2019 to the Consumer Protection Act, 2019. Consumer
Protection Act, 2019 after the enactment has replaced the Consumer
Protection Act, 1986. Consumer Protection Act, 1986 were having some
flaws and several procedural defects and to overcome these procedural
defects, Consumer Protection Act, 2019 was proposed and enacted by
the Parliament to tighten the current law of 1986 and introduce a series
of steps and in 2019 Act they envisaged a Central Consumer Protection
Authority. Power and control have been envisaged in this Central
authority without proposing adequate administrative safeguards.
KEY HIGHLIGHTS OF CONSUMER PROTECTION ACT, 2019
1) Ambit of the law
The ambit of the law has been increased to all modes of transactions
(online, teleshopping, etc.), housing construction, and telecom.
2) Definition of “Consumer”
The definition of the consumer has been widened in the 2019 Act. The
new Act has included E-Commerce in his definition which can be seen
the explanation as explanation (b) has been added to the definition of
the consumer which says
“The expressions “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;”
3) Central Consumer Protection Authority
The Central Consumer Protection Authority has been added in the 2019
Act. This authority has been established to protect, promote, and
enforce the rights of consumers as a class. Following duties have been
given to them under this Act:
i) Issuing guidance to the individual concerned.
ii) Pursuing and investigating infringements of consumer rights at the
required forum.
iii) Issuing safety notices to consumers against unsafe goods and
services.
iv) Issuing orders for a refund of the price charged, recall or removal of
dangerous products, and discontinuation of deceptive trade practices
as specified in the Bill.
v) imposing penalties.
4) Product liability
The term product liability has been added in the 2019 Act which says
that a claim for product liability can be made against service provider,
manufacturer, and seller. Compensation can be claimed, if one of the
several specified conditions mentioned in the Act has been proved. The
extent of their liability is collectively specified under Section 84 to 86 of
the 2019 Act.
Product liability has been defined under section 2 (34) of the 2019 Act
and product liability action has been defined under section 2 (35) of the
2019 Act. And the case can be filed under any of this commission like
District Commission or State Commission or National Commission
depending on the amount of compensation and the pecuniary limit set
on the said the commission.
5) Unfair Contracts
Provisions of unfair contracts has been added in the 2019 Act and it is
defined as contracts that cause significant change in consumer rights
and it lists six contract terms which may be held as unfair. This contract
covers contracts between traders/manufacturer and a consumer that
causes significant changes in the rights of the consumer and the 2019
Act recognizes this by way of imposing condition or unreasonable
obligation on the consumer which puts consumer to disadvantage,
imposing a penalty for breach which is disproportionate to loss caused,
reserving right to assignment without consent or unilateral termination
in the contract, etc.
6) Pecuniary Jurisdiction
The pecuniary jurisdiction of the commission has been increased in the
2019 Act. The District Commission pecuniary limit has been increased
from 20 lakhs to 1 crore, the State Commission pecuniary limit has
been increased from 20 lakhs and upto 1 crore to 1 crore to 10 crores,
the Central Commission pecuniary limit has been increased from above
1 crore to above 10 crores.
7) Composition of Commission
The composition of the commission has been changed. The District
Commission which was earlier headed by current or former District
Judge and two members will now be headed by a president and at least
two members. The State Commission which was earlier headed by a
current or former High Court Judge and at least two members will now
be headed by a president and at least four members. The Central
Commission which was earlier headed by a current or former Supreme
Court Judge and at least four members will now be headed by a
president and at least four members.
8) Appointment
In the 2019 Act, there are no provisions for selection committee and the
power of appointment has been given to Central Government which will
appoint the members through notifications.
9) Consumer Dispute Resolution Forum
Under the Consumer Dispute Resolution Forum all the three forums
will have playing the same role which was provided to them under the
old Act of 1986. In addition, the State and the Central Commission has
been given power to deal with matter and concerns related to unfair
contracts. Mediation has also been added as the method of solving
dispute in the 2019 Act.
10) Unfair Trade Practices
The definition of unfair trade practices has been broadened in the 2019
Act which also includes sharing of personal information given by the
consumer in confidence unless such disclosure is made in accordance
with the provisions of any other law. The 2019 Act empowers the
Consumer Commission and Central Authority to order the perpetrator
of such practice to discontinue it.
11) Penalties
Under the 2019 Act, the penalties have been increased which says that
if a person does not comply with orders of the Commissions, he may
face up to three years of imprisonment, or a fine not less than Rs 25,000
extendable to Rs one lakh, or both.
12) E-Commerce
This term has been added in the 2019 Act, which defines e-commerce,
direct selling, and electronic service provider. And the Central
Government has been given power that they may prescribe rules for
preventing unfair trade practices in e-commerce and direct selling.
CONCLUSION
To conclude we can see that the Consumer Protection Act 2019 has
been enacted by the Central Government for the protection and safety
of the consumer from the unfair trade practices and the Act has been
enacted to provide a quicker and simpler access to the consumer for the
redressal of the consumer grievances. Earlier the Act was able to provide
single point access to justice which was also time-consuming but now
the Act will be able to provide protection to buyers not only from
traditional sellers but also from the new e-commerce
retailers/platforms.