In this Digitilise world everyone facing new era of business, commerce, branding, advertisation process. With this advancement of commerce sector, the expectation of consumer rises. Digitisation gives ample of choices, convenient payment mechanism, improved services and shopping as per convenience. No doubt, new initiatives have always pros and cons. This growing path of technology and digitisation in commerce sector also brought in challenges related to consumer protection. With the advancement of buying and selling process, the government instead of bringing an amendment in the consumer protection act 1986, enacted a new act altogether so as to provide enhanced protection to the consumers taking into consideration the booming of e-commerce industry and the modern methods of providing goods and services such as online sales, Tele-shopping, direct selling and multiple level of marketing in addition to the traditional methods.
The parliament, on 06 August 2019, passed the landmark consumer protection bill, 2019. Which aims to provide the timely and effective administration and settlement of consumer dispute. It received assent of president and published in official gazette on 09 august, 2019. Now it gets enforceability in all over India on 20 July 2020.
Also Read- Highlights of the Consumer Protection Act, 2019
Certain key changes in new CPA, 2019:-
- Addition of various new definition u/s-2 ;- Added the definition of advertisement, central authority, consumer rights, design, direct selling, director-general, district commission, e-commerce, electronic service provider, endorsement, establishment, express warranty, harm, injury, manufacturer, mediation, mediator, misleading advertisement, product, product liability, product liability action, product manufacturer, product seller, product service provider, regulator, unfair contract.
- Addition under previous definitions;- who is complainant, what is complaint, who can be consumer, deficiency, alter the definition of goods, who is person, expand the penorma of trade practices.
- Covers all e-commerce transactions;- the new act widened the scope of consumer. It includes all buyers of goods and services, whether through online or offline or electronic means or teleshopping, or direct selling or multiple level marketing which was not specified under cpa 1986. Also Read- Legal Notice Before Consumer Complaint
- Establishment of central consumer protection authority (CCPA);- CPA, 2019 provides the establishment of regulatory authority known as CCPA. It has its own investigating wing, headed by director-general, which conduct inquiry or investigation into consumer law violation either suo motu or on a complaint received or on the direction from central govt.
CCPA has been granted wide power to recall goods, order re-imbursement of the price of goods/services, issue directions and penalities which extend to 10 lakh against flase or misleading representation and for subsequent contravention it extend to 50 lakh.
Aggrieved person may file appeal to national commission against any order passed by CCPA within 30 days of the order passed. Also Read- Execution of Consumer Court’s Order
- Alter The Nomenclature Of District Forum;- District Forum given under CPA,1986 which will be known as district consumer dispute redressal commission. We call also say it district commission and section 28 to 41 gives detailed provision of district commission with its jurisdiction and procedural aspect.
- Enhancing Pecuniary Jurisdiction;- Any complaint upto 1crore can be filed in District commission whereas as per old CPA its pecuniary jurisdiction was only upto 20 lakhs. State commission can handle complaint for above 1crore upto 10 crore instead of 20 lakh to 1 crore as per CPA, 1986. If we go to national commission then pecuniary jurisdiction extended above 10 crore instead of above 1 crore.
- Enhancing Territorial Jurisdiction For Filing Complaints;- The New Act provides flexibity to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. In previous CPA, 1986 the practice of filing is at the place of purchase or where the seller has its registered office address. Now new act also facilitate consumer to file complaints even electronically and for hearing and/or examining parties through video conferencing. This is procedural ease and reduce the inconvenience and harassment for the consumers. Also Read- Challenge Consumer Court Order in State Commission Punjab Haryana
- Reviewing Power For Its Own Order;- District commission u/s-40, state commission u/s-50 and national commission u/s-60 shall have the power to review any of the order passed by it, if there is an error shows on the face of record, either of its own motion(suo motu) or on application made by parties within 30 days which was not given in earlier Act.
- Execution Of Order;- As per New Act, 2019 the enforcement of order of District commission, State commission, and National commission is in the same manners as if it were decree made by court in civil suit before it and provisions of O-21 of schedule-1 of CPA shall be applicable. Whereas in CPA, 1986 section-25 provides its own execution process of order.
- Add The Concept Of ADR;- The New Act provides for mediation as an ADR mechanism, making the process of dispute adjudication simpler & quiker. This will help with the speedier resolution of dispute and reduce pressure on consumer courts. Legislature makes it as a mandatory process of procedure. i.e. after filing of complaint and in first hearing after its admission, or at any later stage, if it appears to commission any element of settlement which may be accepted by parties, then court may direct the parties to given their consent for settlement by mediation in writing within 5 days, and within 5 days of receipt of such consent the matter refer to Mediation. Also Read- What Happens When Consumer Court Orders Are Not Complied?
- Product Liability;- New Act provides separate chapter-6 for product liability. Product liability covers its scope all product manufacturer, product service provider, and product seller for compensation.
The term product seller is defined to include a person who is involved in placing the product for commercial purpose and as such would include e-commerce platform as well. The defence taken by e-commerce platforms merely act as ‘platforms’ or ‘aggregators’ will not be accepted. There are increased liability risks for manufacturers as compared to product service providers and product sellers, considering that under new act, manufacturers will be liable in product liability action even where he proves that he was not negligent or fraudulent in making express warranty of a product. Certain exceptions have been provided under the new act from liability claims, such as, that the product seller will not be liable where the product has been misused, altered and modified.
- Unfair Trade Practices;- The New Act enhancing the ambit of unfair trade practices and giving broader elaboration, which now also include non-issuing bill or cash memo or receipt of goods or service, refusing to refund the price and refuse to accept the return of goods sold within 30 days return policy, disclosure to other person any personal information. Also Read- District Consumer Disputes Redressal Forum Sas Nagar Mohali
- Rights Of Consumer;- Section-2(9) of CPA 2019 define consumer rights which includes;-
- Right to be protected against the marketing of goods, products or services which are hazardous to life and property.
- Right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices.
- Right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices.
- Right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate fora.
- Right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers.
- Right to consumer awareness.
- Enhancement Of Penalities;- a) punishment for non-compliance of direction of central authority shall be extended upto 6 months or with fine upto 20 lakhs or with both.
- B) punishment for false and misleading advertisement which may be extended upto 2 years with fine upto 10 lakh and for every subsequent offence, imprisonment extend upto 5 years with fine extend upto 50 lakh.
- C) punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant.
- D) punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods.
Also Read- Consumer Protection Act Faq
CONCLUSION
CPA, 2019 has made several changes to the erstwhile CPA, 1986. The changes made in CPA, 2019 seem to further empower the consumers by leveraging responsibilities not only on their counterparts, i.e. Sellers, manufacturers, service providers, but also the endorsers of such products. CPA, 2019 has also attempted to ease and fasten the process of consumer dispute resolution by increase pecuniary jurisdiction of commissions, attaching mediation cells, increasing the members of commission, imposing higher penalities etc.
Also Read- CONSUMER COMPLAINT CHANDIGARH PANCHKULA MOHALI
For case specific advice, please contact best/top/expert Consumer Lawyers Advocates in Chandigarh Panchkula Mohali Zirakpur Derabassi Kharar Baltana Mullanpur etc.
This post is written by Ramandeep Kaur, an associate with LegalSeva.
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