The Consumer Protection Act, 2019 (the Act) received the President's assent on 9 August 2019 which has replaced the Consumer Protection Act, 1986. The  Consumer Protection Act, 2019 came into force on 20th July 2020 and it empower consumers and help them in protecting their rights through its various notified rules and provisions.

The new act is less time consuming compared to the older Consumer Protection Act, 1986 in which single-point access to justice was given making it a time-consuming exercise.

DEFINITIONS

 "advertisement" means any audio or visual publicity , representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents.

"complainant" means—

• a consumer.
• any voluntary consumer association.
• C.G,S.G, Central authority.
• one or more consumers having same interest.
• in case of death of a consumer, his legal heir or legal representative.
• in case of a consumer being a minor, his parent or legal guardian.

"complaint" means any allegation in writing

• an unfair contract or unfair trade practice or a restrictive trade practice
• the goods, services suffer from one or more defects;
• the goods, services which are hazardous to life and safety when used, are being offered for sale to the public.
• a claim for product liability action.

"consumer" is defined as a person who "buys any goods" and "hires or avails of any service" for consideration but does not include a person who obtains goods for resale or goods or service for any commercial purpose.

"consumer rights" includes,—

(i)Right to be protected.
(ii) the right to be informed 
(iii) the right to be assured
 (iv) the right to be heard 
(v) the right to seek redressal.
(vi) the right to consumer awareness.

"e-commerce“
 means buying or selling of goods or services including digital products over digital or electronic network.

"misleading advertisement falsely describes such product or service; or gives a false guarantee. conveys an express or implied representation which would constitute an unfair trade practice,deliberately conceals important information.

"product liability" 
means the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by
 such defective product manufactured or sold or by deficiency in services relating thereto.

"restrictive trade practice" means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions.

 "unfair trade practice“
 (i) making any statement, which—
(a) falsely represents that the goods,services are of a particular standard, quality, quantity, grade, composition, style or model;
(b) falsely represents that the services are of a particular standard, quality or grade;
(c) falsely represents old goods as new goods;
(d) represents that the goods or services have sponsorship, approval.
(e) represents that the seller or the supplier has a sponsorship or approval
(f) misleading representation concerning the need for, or the usefulness of, any goods or services;
(g) gives to the public any warranty or guarantee of the performance

CONSUMER PROTECTION COUNCILS ( 3-9)

Central Consumer Protection Council. 3-5.
Advisory council, 1 meeting every year
to render advice on promotion and protection of the consumers‘.

State Consumer Protection Councils.6-7
Advisory council, 2 meeting every year

District Consumer Protection Council.8-9.
Advisory council, 2 meeting every year

Central Consumer Protection Authority

The Act introduces the establishment of a Central Consumer Protection Authority (CCPA) by the central government. The CCPA is a regulatory authority and shall be empowered to impose penalties, recall goods, cause withdrawal of services, provide refunds and investigate into matters. It shall also be responsible for protecting the rights of consumers as a class and shall further ensure that no person engages in unfair trade practices and that no misleading advertisements are made . The Act provides for establishing an investigation wing which shall be headed by the director general who shall be appointed by the central government for conducting investigations as per the order of the CCPA. Further, the Act also introduces electronic mode for filing complaint for unfair trade practices or false or misleading advertisements to the district collector, the commissioner of the regional office or the CCPA .

Strict penalties for false and misleading advertisements

The Act has defined the term" misleading advertisement" in relation to any product or service as, "an advertisement which falsely describes the product or service which gives a false guarantee and is likely to mislead the consumer as to the nature substance, quantity or quality of such product or service and conveys an express or implied representation which, if made by the manufacturer or seller or service provider, would constitute an unfair trade practice and shall also include information which is concealed deliberately" . The penalties for false and misleading advertisements are discussed under offences and penalties.

An appeal to an order passed by the CCPA on this issue can be filed under the National Commission within a period of 30 days from the date of receipt of such order .

Consumer Dispute Redressal Commission

The Act provides for setting up of a Consumer Dispute Redressal Commission (CDRC), which shall be set up at the district, state and national level (Commissions). The CDRC is empowered to resolve complaints with respect to unfair and restrictive trade practices, defective goods and services, overcharging and goods which are a hazardous to life and safety.

Jurisdiction of the CDRC
The pecuniary jurisdiction of the Commissions has been enhanced in comparison with the Consumer Protection Act, 1986. The district commission now has the jurisdiction to entertain complaints where the value of the goods or services paid as consideration (Consideration) does not exceed INR 1 crore.

The state commission shall have the jurisdiction to entertain complaints where the Consideration exceeds INR1 crore but does not exceed INR10 crores  and the national commission shall have the jurisdiction to entertain complaints where the Consideration paid exceeds INR10 crores . The jurisdiction in which the complaint is to be filed is now based on the value of the goods or services paid unlike in the earlier Act, where it was on value of the goods or services and the compensation, if any, claimed.

Further, the Act has inserted a crucial aspect with respect to the jurisdiction of the district commission, i.e., Section 34(2)(d). This section categorically states that the complaint can now also be instituted in a district commission within the local limits of whose jurisdiction the complainant resides or personally works for gain, apart from filing in the jurisdiction where the other side actually or voluntarily resides, or carries on business, or has a branch office or personally works for gain.

Mediation

The Act has introduced a new chapter on mediation as an alternate dispute resolution mechanism, in order to resolve the consumer dispute faster without having to approach the Commissions. The dispute can be resolved either in whole or in parts.

Thus, in the event, the mediation is successful, the terms of such agreement shall be reduced into writing accordingly. Where the consumer dispute is settled only in part, the Commission, shall record the settlement of the issues which have been settled, and shall continue to hear the remaining issues involved in the dispute. In the event the mediation is not successful, the respective commission shall within seven days of the receipt of the settlement report, pass a suitable order and dispose the matter accordingly .

Product liability

A key concept on "product liability" has been introduced by the Act wherein a product liability action may be brought by a complainant against a product manufacturer, product service provider or product seller, for any harm caused to the complainant on account of a defective product. The Act provides a breakup of the liabilities of the product manufacturer, product service provider and product seller and also circumstances under which they are not liable.

Offences and penalties

The Act has introduced a separate set of penalties with respect to misleading advertisements, ranging from INR10 lakhs with an imprisonment for up to two years to INR50 lakhs) with an imprisonment for up to five years . Any failure to comply with the directions of the CCPA for recall of goods, withdrawal of services shall attract an imprisonment for a term which may extend to six months or with a fine which may extend to INR20 lakhs .

Conclusion

The Act is a welcome change in favor of the consumers. It provides them with clearly defined rights and dispute resolution process which may enable them to resolve their grievances on a fast-track basis. Online marketplaces and online auction sites, which have all throughout been included under the purview of an "aggregator", have also been included under the purview of this Act which will place more responsibility on them with respect to the goods and services being sold and provided by them. Apart from establishing authorities at district, state and national level for consumer disputes redressal, the Act also seeks to hold the product manufacturers liable along with the product service providers and product sellers where the rights of the consumer have been infringed due to defects or deficiency in the goods and services provided.