Concerning the challenges faced by consumers in the DIGITAL WORLD The Indian Parliament passed the landmark CONSUMER PROTECTION BILL ON 6TH AUGUST,2019.
Although, it was introduced in reputed LOK SABHA of Indian Parliament BY MINISTERS of consumer affairs, food & public Distribution , Mr. RAM VILAS PASWAN ON 8TH JULY,2019 and came into force on 24th July, 2019 and received the President’s assent on 9th august, 2019.
In fact, this Consumer Protection Bill,2019 was introduced by replacing
Consumer Protection Act ,1986
Indeed, It work for proper and effective settlement and administration of rising disputes of the consumers.Generally, It makes regulation of matters related to unfair trade practices , consumer rights and misleading advertisement which tends to manipulate innocent and uncultivated people.
WHO IS CONSUMER?
It is stated that that consumer is anyone 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. The Act seeks to widen the scope of this definition. Thus, a consumer will now mean any person who “buys any goods” and “hires any services” which shall include both online and offline transactions through electronic means, teleshopping, direct selling or multi-level marketing
Hence , you are a consumer only when you bought any goods or hired any services and promise to pay consideration whether it is in cash in hand or instalments basis in case of buying the goods and availing services withe the permission only .
Consequently, you are consumer of good or services.
The concept of “product liability” has been newly introduced and is defined as the responsibility of a product manufacturer or product seller of any product or service to compensate for any harm caused to a consumer due to defective product manufactured, sold or deficiency in services relating thereto.
Any harm or injury caused to consumer if the goods or services tend to be defective or shoddy then as per the
CONSUMER PROTECTION ACT ,2019(CPA)
the manufacturer or service provider has to give compensation for the injury incurred or harm occurred
Rights of the consumer
⦁ be protected against the marketing of goods, products or services which are hazardous to life and property;
⦁ be informed about the quality, quantity, potency, purity, standard and price of goods, products or services;
⦁ be assured, wherever possible, access to a variety of goods, products or services at competitive prices;
⦁ be heard and to be assured that consumers’ interests will receive due consideration at appropriate fora;
⦁ (v) seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and
⦁ consumer awareness.
Introduction of “e-commerce” and “electronic service provider”
The Act has inserted the definition of “e-commerce” which means buying or selling of goods or services including digital products over digital or electronic network As per Section 94 of the Act unfair trade practices must be prevented in direct selling and protection of interest and rights of consumer must be dealt.
This Act also introduced notion of “electronic service provider”who access technologies to enable a product seller to indulge in advertising or selling goods or availing services to a consumer online. Besides,an electronic service provider is now included under the definition of a product seller . Under in Section 86 of the Act online auction sites and marketplaces can be held in product liability.Although this act protect rights of e-costumers by enabling them to go for websites in case of infringement
CENTRAL CONSUMER PROTECTION AUTHORITY
Section 10 of CPA 2019 give the existence of CCPA for promotion,protection and enforcement of consumers rights.
MAIN AIM OF ESTABLISHMENT OF CCPA Is to fill regulatory regime.CCPA regulates for causing withdrawal of services, imposing penalties, recalling goods, provide refunding and tends to 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 mentioned acknowledgement for establishment of an investigation wing and it would be headed by the director general who shall be appointed by the central government for conducting investigations with regards of the order of the CCPA. Infact, the Act also provides electronic mode for filing of complaint with concern of unfair trade practices or false or misleading advertisements to the district collector.
STRICT PENALTIES FOR FALSE & 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” Basically the act provide law suit for the rights not get infringed . As per this act manufacturer or endorser would be liable for the penalty up to Rs.10 lakh in case they are grabbed in case of false or misleading advertisement . Although false advertising has deceptive descriptions which is far in reach of the exact product .Hence innocent and uncultivated consumers become victim of the evil web of service provider or manufacturer.
Although many times advertisement bestows false claims and lacking information which the product is deficient of . This would result in many paranoiding culmination
CONSUMER DISPUTE REDRESSAL COMMISSION
As per this act, a Consumer Dispute Redressal Commission (CDRC), there should be set up at the district, state and national level (Commissions). The CDRC work to resolve complaints for unfair and restrictive trade practices, overcharging goods which are a hazardous for life security.
JURISDICTION OF CDRC
The pecuniary jurisdiction of the Commissions has been introduced in contrast to 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 INR1 crore .
DISTRICT CONSUMER DISPUTE REDRESSAL FORUM
-has pecuniary jurisdiction for the amount not
exceed 20 lakhs .
STATE CONSUMER DISPUTE REDRESSAL COMMISSION
- has pecuniary jurisdiction for the amount which
exceeds 20 lakh but not 1 crore
Works for recording and passing orders of consumer
dispute pending in state commission .
Mediation is newly introduced to alternate dispute resolution mechanism, without approaching the Commissions,it would be resolved either wholly or partly.
When the mediation is solved wholly or successful, the agreement shall be congregated into writing . Where the consumer dispute is settled partly, it will be recorded that the issues which have been settled, and hearing of the remaining issues involved in the dispute. If mediation is not successful, the respective commission will receipt the settlement report within 7 days & pass a suitable order and dispose the matter with accordance
S no. Consumer Protection Act,1986 Consumer Protection Act,2019
- No separate regulator CCPA exists
- No provisions for meditation Meditation came into existence
- No provisions for product liability Product liability came into existence.consumer can claim for damages
- On the site of defendant office ,complaint can file in consumer court . Complaint will work or resides if it is filed in consumer courts
Direct: Up to INR 2 million
State : INR 2 million to INR 10 million
National: INR 10 million Jurisdiction
District: Up to INR 10million
State: INR 10million to INR 100 million
National: above INR 100 million
This Act is amalgamation of variety of redoing in sanction of the consumers. CPA,2019 furnishes consumer with elucidate rights and resolve disputes by resolution process at swift. “Aggregator” purview Online marketplaces and online auction sites, and therefore responsible with respect to the goods and services being sold and provided by them. With the establishment of authorities at district, state and national level ,there were also consumer disputes redressal forum which assist consumer in many ways .Although Consumer Protection Act give rise to the liability of the product manufacturers along with the product service providers and product sellers for the inconvenience suffered and for the infringement or violation of the rights of the consumer due to deceptive defects or deficiency in the goods and services provided to them .