Consumer Protection Bill 2019

On July 30

th 2019, the Lok Sabha passed the Consumer Protection Bill 2019. This bill seeks to simplify many of the rules associated with consumer protection. It is aimed at ensuring timely and effective administration and settlement of consumer disputes. The entire process of redressing consumer grievances is sought to be simplified. This bill will replace the Consumer Protection Act, 1986.

Central Consumer Protection Authority (CCPA)

CCPA will be a national level regulator to tackle consumer rights violation, unfair trade practices and false or misleading advertisements. CCPA will have an investigation wing headed by a Director-General vested with powers of search and seizure. The District Collector will be empowered to report to the CCPA regarding mass consumer complaints in his jurisdiction. The powers of the CCPA include:

Promote, protect and enforce consumer rights
Empowered to investigate, recall, refund and impose penalties–recall unsafe goods and services
Regulate matters related to consumer rights violation, unfair trade practices including misleading advertisements
Provides for a class-action lawsuit
Empowered to levy penalty of up to 10 lakhs on manufacturer or endorser for misleading advertisement
Can order the discontinuation of Unfair Trade Practices and misleading advertisements
Can conduct investigations into consumer rights violations and institute complaints and prosecution
Empowered to direct discontinuation of practices that are unfair and prejudicial to consumer interests
CCPA can file complaints to the Consumer Dispute Redressal Forum
Issuing direction to concerned manufacturers/endorsers/advertisers/traders to discontinue a false or misleading advertisement or modify it.
Imposing penalties
Issuing safety notices to consumers regarding unsafe goods and services

Salient Features of Consumer Protection Bill 2019

Product liability provision serves as a deterrent to manufacturers and service providers from delivering defective products or deficient services. Product liability will encompass:

Manufacturing defect
Design defect
Non-conformance to warranty
Deviation from manufacturing specifications
Imperfect or deficient services
Not providing adequate usage instructions

Simplified Dispute Resolution

Consumer commission empowered to enforce orders
Ease of approaching consumer commission and filing for consumers–through e-filing and videoconferences
Ease of approaching
Appeals only on the question of law after the second stage
Consumer Disputes Redressal Commissions (CDRC) will be set up at the district, state and national The pecuniary jurisdiction has been enhanced:
- District Commission up to 1 crore
- State Commission from 1 crore to Rs.10 crores
- National Commission Above 10 crores

Consumer Rights

A consumer is anyone who buys good or avails service for consideration. Those who buy goods for resale or goods or services for commercial purpose do not come under the purview of a consumer. Transactions that come within the gamut are offline, online, teleshopping, direct sales or multi-level marketing.
Rights of the consumer as defined in the Consumer Protection Bill 2019
To be protected against the marketing of any goods and services that are hazardous to life and property
To be informed of the details of products like quality, quantity, potency, purity, standard and price of goods and services
To be assured of clear access to a variety of goods and services at competitive prices
To seek redressal against unfair or restrictive trade practices

Mediation

Alternate Dispute Resolution (ADR) mechanism is set in place
Mediation Cells are to be attached to Consumer Forum
Scope of early settlement through mediation
No appeal against any settlement through mediation

Penalties under the Consumer Protection Bill 2019

The penalty of Rs.10 lakh is levied on celebrities endorsing misleading advertisements. This is for the first

offence and also includes a one-year ban on any endorsement. The penalty is Rs.50 lakhs for the second offence with a ban of 3 years on endorsements. However, there are few exceptions when an endorser will not be held liable for such a penalty. The penalty is up to Rs.10 lakhs for manufacturers and companies along with up to 2 years jail term. On subsequent offences, the penalty is raised to Rs.50 lakhs and the jail term to nearly 5 years. Penalty for adulteration can be a life-term jail sentence. The Consumer Protection Bill 2019 seeks to plug the gap in the advertising industry which is monitored by the Advertising Standards Council of India (ASCI). This bill seeks to bring about far-reaching changes in the protection of consumer rights and provides a framework for redressal and litigation settlement.

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Frequently Asked Questions

Common questions about Consumer Protection Bill 2019: Enhancing Consumer Rights.

The Consumer Protection Bill 2019 is a legislation passed by the Lok Sabha on July 30th, 2019, aimed at simplifying the rules associated with consumer protection and ensuring timely and effective administration and settlement of consumer disputes. It seeks to replace the existing Consumer Protection Act of 1986.

The Central Consumer Protection Authority (CCPA) is a national-level regulator established under the Consumer Protection Bill 2019. Its primary roles include promoting and protecting consumer rights, investigating and recalling unsafe goods and services, regulating matters related to consumer rights violations and unfair trade practices, and imposing penalties on manufacturers or endorsers for misleading advertisements.

The Consumer Protection Bill 2019 introduces a product liability provision that holds manufacturers and service providers accountable for delivering defective products or deficient services. This provision covers manufacturing defects, design defects, non-conformance to warranties, deviations from manufacturing specifications, imperfect or deficient services, and inadequate usage instructions.

The Consumer Protection Bill 2019 empowers consumer commissions to enforce orders more effectively. It also facilitates ease of approaching consumer commissions and filing complaints through e-filing and videoconferences. Additionally, the bill introduces an Alternate Dispute Resolution (ADR) mechanism through mediation cells attached to Consumer Forums.

Under the Consumer Protection Bill 2019, the pecuniary jurisdictions of the CDRCs are as follows: District Commission up to ₹1 crore, State Commission from ₹1 crore to ₹10 crores, and National Commission for claims above ₹10 crores.

The Consumer Protection Bill 2019 defines the following rights for consumers: protection against hazardous goods and services, access to information about products and services, assurance of access to a variety of goods and services at competitive prices, and the right to seek redressal against unfair or restrictive trade practices.

The Consumer Protection Bill 2019 imposes penalties on celebrities endorsing misleading advertisements, with a fine of ₹10 lakh and a one-year endorsement ban for the first offense, and ₹50 lakh and a three-year ban for subsequent offenses. Manufacturers and companies can face penalties of up to ₹10 lakh and up to two years of imprisonment for the first offense, and ₹50 lakh and up to five years of imprisonment for subsequent offenses.

The Central Consumer Protection Authority (CCPA) has the power to issue directions to manufacturers, endorsers, advertisers, and traders to discontinue or modify false or misleading advertisements. The CCPA can also impose penalties and direct the discontinuation of unfair trade practices that are prejudicial to consumer interests.

The Consumer Protection Bill 2019 covers transactions conducted offline, online, through teleshopping, direct sales, or multi-level marketing. It applies to any consumer who buys goods or avails services for consideration, excluding those who purchase for resale or commercial purposes.

Under the Consumer Protection Bill 2019, a consumer is defined as anyone who buys goods or avails services for consideration, excluding those who buy goods for resale or goods or services for commercial purposes.