Purpose of CPA 2019:
Consumer Protection Act 2019 is an Act that provides for better protection of the interests of consumers and for that purpose makes provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and matters connected therewith.
Preamble:
Effective from 20 July 2020, the Consumer Protection Act, of 2019 replaces the more than three decades old Consumer Protection Act, of 1986. The new Consumer Protection Act 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail terms for adulteration and misleading ads by firms. Among other things, the law includes setting up a Central Consumer Protection Authority (CCPA) to promote, protect, and prevent unfair trade practices and enforce the rights of consumers as a class. The CCPA will be empowered to conduct investigations into violations of consumer rights and institute complaints/prosecution, order recalls of unsafe goods and services, order discontinuance of unfair trade practices and misleading advertisements, and impose penalties on manufacturers/endorsers/publishers of misleading advertisements. The rules for the prevention of unfair trade practices by e-commerce platforms will also be covered under this Act. There is also a provision for a class action lawsuit to ensure that the rights of consumers are not infringed upon. The authority will have the power to impose a penalty on a manufacturer or an endorser of up to 10 lakh rupees and imprisonment for up to two years for a false or misleading advertisement.
The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.
New provisions under the Consumer Protection Act 2019
- Establishment of the Central Consumer Protection Authority (CCPA)
- Strict Norms for Misleading Advertisement
- Strict Norms for Product Liability
- Changes in the Pecuniary Jurisdiction
- Greater ease of dispute resolution
- Inclusion of E- e-commerce, Direct selling
- Addition in the clause of “Unfair Trade Practice”
- NEW ADDITIONS TO CERTAIN DEFINITIONS
Other Aspects: Mediation Process, Product Liability, Unfair Contracts, Data Protection, and “telecommunication services which were newly included Consumer Protection Act 2019 as they were not provided in the Consumer Protection Act 2006. E-commerce has been specifically mentioned and is defined as buying and selling of goods/services/digital products, online. Further, the Central government is empowered to take appropriate measures (framing of rules, regulations, guidelines, etc.,) to prevent unfair trade practices in e-commerce and direct selling. The CPA 2019 (New Act) redefines “Consumer” and includes the definition of “food” as defined under the Food and Standards Act, 2006[5]. This has replaced the definition of “goods” under the 1986 Act. This would help in bringing the number of food delivery platforms to come under the ambit of consumer protection.
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