Consumer Protection Act 2019: Safeguarding Consumer Rights and Interests

The outdated Consumer Protection Act of 1986 was replaced by the new version in 2019 which was signed On August 6, 2019 by the president. Consumer protection is the process of defending customers from unethical company practices. It describes the actions taken to safeguard customers from dishonest and unethical business practices by merchants, producers, service providers, etc., and to offer remedies if their legal rights as customers have been infringed.

To address issues related to consumer rights abuses, unfair business practices, deceptive advertising, and other circumstances that are harmful to consumers' rights, the Indian government passed the Consumer Protection Act, 2019 (CPA). Due to the advancement of technology and the significant rise in the purchase and sale of products and services online over the past several years, the Parliament intended the Act to include provisions for e-consumers.

In this article, candidates can learn about the topic “Consumer Protection Act 2019”, its objective, significance, and features. This forms a major part of the UPSC IAS exam and questions related to this are seen in Mains Paper II in the Indian Economy of the above-said examination. Testbook provides comprehensive notes for UPSC CSE COACHING including different competitive examinations.

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Consumer Protection Act, 2019

The 1986 Consumer Protection Act makes it quick and simple to resolve consumer complaints. It stands up for customers and encourages them to bring up problems with the quality of the products and services they receive. This law safeguards consumers' rights if producers and sellers engage in fraud. The main goals of this forum are to help both parties and stay away from drawn-out judicial battles.

The 2019 Consumer Protection Act aims to safeguard and advance consumers' interests through prompt and affordable resolution of their complaints. It encompasses the entirety of India. It is applicable to all business kinds, including e-commerce companies, whether they are manufacturers, traders, or businesses that sell goods or services. The Act grants specific rights to consumers in an effort to strengthen and defend their interests.

On July 30 and August 6, respectively, the Lok Sabha and Rajya Sabha approved the Consumer Protection Bill, 2019. Mr. Ram Vilas Paswan, the minister of consumer affairs, food, and public distribution, proposed this legislation in the parliament.

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Difference Between Consumer Protection Act, 1986 and 2019

Let us look in detail at the differentiation between the 2 versions the Act 

Basis of Differentiation	Consumer Protection Act 2019	Consumer Protection Act 1986
Definition	Section 2(28) provides an exclusive and comprehensive definition of the term. According to this definition, misleading advertisement means an advertisement that gives a false description or a false guarantee or misrepresentation or concealment of information	Section 2(1)(r) → Misleading advertisements can also be brought under this definition and can be treated as an unfair trade practice.
Elements Included	1. False Description  2. False guarantee  3. Misrepresentation 4. Deliberate concealment of important information	1. False statement  2. Misrepresentation
Powers to respective bodies	Section 21 empowers the Central Authority to issue directions and penalties against false or misleading advertisements.   A penalty of rupees 10 lakh is imposed on the advertiser. (Subsequent contravention – 50 lakh rupees); An endorser can be punished by prohibiting him from making any endorsement for the next twelve months(Subsequent contravention – 3 years) Unless such an endorsement was made with due diligence; A penalty of Rupees 10 Lakhs is imposed for publishing the advertisement unless such an act is done in the ordinary course.    2. Section 89 is a penal provision that deals with the punishment to be awarded to the manufacturer for misleading advertisement which is up to a term of 2 years and a fine of up to 10 lakh rupees. (Subsequent contravention: Imprisonment upto a term of 5 years and fine upto 50 lakh rupees)	Section 14 empowers the court to issue directions including discontinuation of such advertisements.
Regulator	Central Consumer Protection Authority	No separate Regulator
Pecuniary Jurisdiction	District -upto 1 Cr State- 1 Cr to 10 crore National - 10 Crore and above	District -upto 20 lakhs State- 20 lakhs to 1 crore National - 1 Crore and above

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Features of the Consumer Protection Act, 2019

Some of the features of the consumer Protection Act 2019 are discussed below

Establishment of the Central Consumer Protection Authority

• The statute contains a clause establishing the CCPA, which will defend, advance, and uphold consumer rights. Cases involving unfair business practices, deceptive advertising, and violations of consumer rights will be governed by the CCPA.
• The CCPA will have the authority to fine violators and issue orders requiring the recall of goods or services, the cessation of unfair business activities, and the refund of consumer costs.
• To inquire about and look into such transgressions, the Central Consumer Protection Authority will establish an investigation wing. The Director-General will be in charge of the CCPA.

Rights of consumers

The rights of the consumer can be summarized below

• Right to Safety: A buyer has the right to request details about the product's quality and guarantee before making a purchase. They would purchase products with certifications like ISI or AGMARK in an ideal world.
• Right to Choose: Consumers should be able to select from a range of items at reasonable prices.
• Right to Knowledge -The purchasers' right to knowledge should be upheld to encourage responsible behavior and influence the purchasing decision. Consumers have a right to information about their rights so they can guard against being taken advantage of. Greater losses could arise from ignorance. According to the right to be heard, the client will receive sufficient attention to vent their problems in a suitable forum.
• Right to compensation- The law states that consumers have the right to seek compensation for unfair and cruel treatment or consumer exploitation.

Prohibition and penalty for a misleading advertisement

For deceptive or false advertising, the Central Consumer Protection Authority (CCPA) will have the authority to punish or imprison the endorser or manufacturer for up to two years (Like Laxmi Dhan Warsha Yantra case). It is important to note that repeat offenders risk a punishment of Rs. 50 lakh and a maximum 5-year sentence.

Consumer Disputes Redressal Commission

The act includes a provision for the national, state, and district levels to create Consumer Disputes Redressal Commissions (CDRCs). The CDRCs will consider grievances relating to;

• Excessive or misleading billing
• Deceptive or constrictive business practices
• Selling potentially life-threatening goods and services.
• Selling of faulty products or services

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Objectives of the Consumer Protection Act, 2019

The Act's main objectives are to protect consumer interests and establish a trustworthy, efficient process for handling customer complaints.

• Defend consumers from advertisements of goods that put people's lives and property in jeopardy. 
• To protect consumers from unfair business practices, provide information about the potency, amount, standard, purity, and pricing of the items. 
• Create Consumer Protection Councils to safeguard customers' rights and interests.
• Whenever possible, ensure that customers can purchase products at fair prices from a reputable vendor. 
• To protect consumers against any unethical company practices or exploitation and look for remedies in case of such an event.
• By selecting authorities for the prompt and adequate administration and resolution of consumer complaints, you can protect your customers. 
• List the sanctions for breaking the Act. 
• Pay attention to the consumer’s welfare concerns in the event of a problem or conflict, and make sure they are taken into consideration in the proper forums. 
• It is important to give consumer education so that people are informed of their rights 
• Deliver quick and efficient customer service through alternative dispute resolution techniques.

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Rights of Consumers under Consumers Protection Act, 2019

According to the 2019 Consumer Protection Act, consumers have six rights. Following Section 2(9) of the Act, consumers have the following rights: 

• The right of a customer to be shielded from the promotion of products and services that are risky and harmful to property and life. 
• The Right of a consumer to be shielded from unfair business activities by being informed about the standard, price, potency, purity, and other characteristics of the commodities, services, or products. 
• The consumer's right to affordable access to a wide range of products, services, and goods. 
• The right to complain against unfair and constrictive business practices in the appropriate forums. 
• The right to reasonable payment or another recompense from
• The right to fair compensation or consideration from the appropriate consumer forums if the merchant has harmed them. 
• The appropriate consumer education

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Unfair Trade Practices Under the Consumer Protection Act, 2019

According to Section 2(47) of the Consumer Protection Act of 2019, "unfair trade practices" are those that include: 

• Producing Fake goods or offering subpar services. 
• Not sending invoices or cash memos for the products bought or services provided. 
• Refusing to accept the products or services for return or withdrawal and 
• Refusing to reimburse the payment made for the goods or services. 

revealing the customer's private information.

Significance of the Consumer Protection Act, 2019

Significance of the Consumer Protection Act 2019 are discussed below

Empowering consumers

• The Consumer Protection Act of 2019 will give consumers more power and support them in asserting their rights thanks to its numerous rules and regulations. The new Act will assist in protecting consumer interests and rights. 
• Retail and online businesses that prioritize serving customers must have robust systems in place for consumer redress. 
• Additionally, the COPRA 2019 act would put pressure on consumer-driven businesses to take additional security precautions against deceptive business practices.

Inclusion of the e-commerce sector

• The new Consumer Protection Act of 2019 closes the vacuum caused by the previous Act's explicit exclusion of e-commerce transactions.
• The statute also permits limits on e-commerce and direct selling that are aimed at protecting the interests of consumers. Regulating e-commerce platforms would stop them from engaging in unethical business practices.

Time-bound redressal

• There are typically a large number of open cases involving consumer complaints in consumer courts across the country. By expediting the resolution procedure, the Customer Protection Act 2019 can help resolve consumer concerns more swiftly. 
• One of the act's primary characteristics is the deadlines under which matters must be resolved.

Responsible endorsement

• The Consumer Protection Act of 2019 establishes responsibility for brand endorsers in light of the countless situations in recent memory where consumers were the victims of deceptive business activities while being influenced by celebrities acting as brand ambassadors. 
• All parties involved, including businesses, agencies, public figures, influencers, and e-commerce players, will be held more accountable overall as a result of this. The proposed Consumer Protection Act would require that the endorser take responsibility and exercise reasonable diligence to confirm the veracity of the information contained in the advertisement to defend against liability claims.

Upholding consumer interests

• For the first time, product liability will be governed by distinct laws. 

A product liability provision will deter producers and service providers from providing inferior products or services. 

• Under the new legislation, the National Consumers Dispute Redressal Committee and the State Commission have the power to void any provisions established in a contract formed while purchasing products. This will significantly improve the protection of customers, who are regularly exposed to legal provisions that favor a vendor or manufacturer.

Alternate dispute redressal mechanism

• The Consumer Protection Act of 2019's inclusion of mediation would expedite and hasten the resolution of disputes. 

• This will provide a more efficient way to promptly address consumer concerns and will help to settle numerous open cases in consumer courts around the nation.
• Simplified process for grievance redressal

• The Consumer Protection Act of 2019 will streamline the process of addressing ordinary consumer complaints and disputes. As a result, customers will encounter less irritation and abuse. 

• At a time when international e-commerce behemoths are expanding their customer bases, the expanded pecuniary jurisdiction, clauses recognizing mediation as a legal process, provisions allowing complaints to be filed from any country, and provisions allowing parties to be heard via video conference will increase access to judicial forums and offer crucial protection.

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Questions to Ace Your Exams

Q1.What is the Consumer Protection Act 2019?

To reinforce consumer protection laws, particularly in the present globalization period with online platforms, e-commerce marketplaces, and the like, the Consumer Protection Act 2019 was designed to replace the Consumer Protection Act 1986. It promotes consumer protection for both offline and online purchases. 
CPA 2019 introduces new provisions, including e-commerce and direct selling, the Central Consumer Protection Authority, strict advertising and product liability norms, and improved dispute resolution.
The Central Consumer Protection Authority (CCPA) was formed under the terms of the Consumer Protection Act of 2019 to monitor concerns connected to deceptive or misleading marketing that risks the general public's and consumers' collective interests.

Q2.Who is a Consumer under the Consumer Protection Act 2019?

Under the Consumer Protection Act 2019, a consumer is "The user of such items or the beneficiary of such services is considered to purchase products or services for a consideration that has been paid or promised, or partially paid and partially promised, or under any system of deferred payment."
Here are some instances of who the CPA considers to be a consumer:
A person who purchases a new automobile from a car dealer.
A person who places a dining order.
A homeowner who employs a plumber to repair a plumbing issue in their house.
An individual who enrolls in a new smartphone plan.
A person who purchases a product from a retail shop online.

Q3.Is the Consumer Protection Act 2019 in force?

The Consumer Protection Act of 2019 (CPA) is operational, indeed. On July 20, 2020, it went into force, further bolstering consumer protection in India. In addition to introducing e-commerce restrictions and empowering consumer commissioners, the CPA also broadens the concept of "consumer" and creates the Central Consumer Protection Authority (CCPA). These steps are intended to guarantee safe goods and services, advance fair trade principles, and give customers access to the legal system.

Q4.What are the main features of the Consumer Protection Act?
The following are the Consumer Protection Act's main goals:

Consumer Protection: The main goal is to shield customers from dangerous products, subpar services, and unethical business practices.
Encouraging Consumer Rights: The Act places a strong emphasis on six consumer rights, which are the rights to information, safety, choice, representation, redress, and education.
Customer Redressal: To offer a quick, easy, and low-cost method of settling customer complaints.
Regulating Trade Practices: The goal of this is to stop unfair and restrictive trade practices.

Conclusion

The updated Consumer Protection Act of 2019 provides consumers with a wide range of advantages and rights to safeguard them against unfair business practices, false or misleading advertising, etc. The Act gives customers the option to use mediation and other alternative dispute resolution processes so that the parties can choose a quick and efficient resolution of their issues. The Act's inclusion of e-complaints and e-consumers shows that certain members of the legislature were forward-thinking. Additionally, the Act added new concepts like "product responsibility" and "unfair contracts," broadening the extent of protection for consumers' rights and enabling them to complain when those rights have been infringed. 

The addition of the clauses in this, thus, fills in the gaps in the Consumer Protection Act of 1986. The importance of the Act's passage cannot be overstated, as it altered the scope of the nation's consumer rights protection laws.

We hope all your doubts regarding the topic “Consumer Protection Act 2019" are addressed after going through this article. Testbook provides comprehensive notes for UPSC including different competitive examinations. It has always assured the quality of its product like content pages, live tests, GK and current affairs, mocks, and so on. Ace your preparation with the Testbook App! 

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