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Protection of consumers under the Consumer Protection Act,2019

Protection of consumers under the Consumer Protection Act,2019

Protection of consumers under the Consumer Protection Act,2019

Protection of consumers under the Consumer Protection Act,2019

Consumer protection is a crucial aspect of any economy, ensuring that buyers of goods and services are treated fairly and honestly. In India, the Consumer Protection Act, 2019, serves as the primary legal framework to safeguard consumer interests. This Act replaced the Consumer Protection Act of 1986, modernizing the law to address the challenges of e-commerce, unfair trade practices, and false advertising. It provides a comprehensive mechanism for the redressal of consumer grievances and promotes consumer rights through various provisions and authorities.

Consumer Rights under the Act

The Consumer Protection Act, 2019, enshrines six fundamental rights of consumers:

  1. Right to Safety: Consumers have the right to be protected against the marketing of goods and services that are hazardous to life and property.

  2. Right to Information: Consumers must be informed about the quality, quantity, potency, purity, standard, and price of goods or services.

  3. Right to Choose: Consumers should have access to a variety of goods and services at competitive prices.

  4. Right to be Heard: The interests of consumers should receive due consideration at appropriate forums.

  5. Right to Redressal: Consumers are entitled to fair settlement of genuine grievances.

  6. Right to Consumer Education: The Act aims to educate consumers about their rights and responsibilities.

Key Features of the Consumer Protection Act, 2019

  1. Central Consumer Protection Authority (CCPA): Established under the 2019 Act, the CCPA is empowered to regulate matters relating to violations of consumer rights, unfair trade practices, and false or misleading advertisements. It can initiate class action suits and conduct investigations.

  2. Simplified Dispute Resolution Mechanism: The Act introduces e-filing of complaints and hearings through video conferencing, which makes access to justice easier and faster for consumers. Complaints can be filed at the place of residence or work of the complainant, simplifying the process.

  3. Product Liability: For the first time, the Act recognizes the concept of product liability, making manufacturers, service providers, and sellers responsible for any harm caused due to defective products or services.

  4. Penalties for Misleading Advertisements: Celebrities endorsing misleading advertisements can be held liable. The CCPA has the authority to impose fines and prohibit endorsements.

  5. Jurisdiction and Pecuniary Limits:

    1. District Commission: Claims up to ₹50 lakhs

    2. State Commission: ₹50 lakhs to ₹2 crores

    3. National Commission: Above ₹2 crores

    4. This clear demarcation streamlines the litigation process and prevents overburdening of higher forums.

Consumer Disputes Redressal Commissions

The Act provides for a three-tier consumer grievance redressal mechanism:

  1. District Consumer Disputes Redressal Commission

  2. State Consumer Disputes Redressal Commission

  3. National Consumer Disputes Redressal Commission

These quasi-judicial bodies are empowered to adjudicate disputes, pass binding orders, award compensation, and issue corrective directions.

Protection against Unfair Trade Practices

The Act defines and prohibits a wide range of unfair trade practices, such as:

  1. False representation of goods or services

  2. Misleading advertisements

  3. Hoarding and black marketing

  4. Non-issuance of proper bills or receipts

The CCPA and consumer courts are authorized to take action against such malpractices, protecting consumer interests.

Role of the IT Act and E-Commerce Rules

The Consumer Protection (E-Commerce) Rules, 2020, framed under the Act, impose specific obligations on online platforms, such as:

  1. Mandatory information disclosure (product origin, seller details, return policy)

  2. Grievance redressal mechanisms

  3. Prohibition of cancellation charges if not specified upfront

  4. These rules enhance transparency and accountability in digital transactions.

Landmark Judgments

  1. M/s Daimler Chrysler India Pvt. Ltd. v. Controls & Switchgear Company Ltd [2024 INSC 496]: The Supreme Court held the manufacturer liable for misrepresenting the safety features of a car. The company was directed to refund ₹36 lakhs for deficiency in service and unfair trade practice.

  2. Kozyflex Mattresses Pvt. Ltd. v. SBI General Insurance Co. Ltd. [2024 INSC 234]: The Court ruled that a company qualifies as a 'person' under Section 2(1)(m), enabling corporate consumers to file complaints.

  3. Omkar Realtors v. Kushalraj Land Developers [2024 INSC 629]: The Supreme Court confirmed that even real estate firms could be 'consumers' if the purchase was not intended for commercial resale.

The Consumer Protection Act, 2019, is a progressive piece of legislation that strengthens the consumer rights framework in India. By addressing modern challenges like e-commerce, online fraud, and misleading advertisements, it empowers consumers to seek effective redressal. The inclusion of authorities like the CCPA and updated legal definitions ensure timely justice and greater accountability. For a growing digital economy like India’s, such protections are vital for maintaining trust and transparency in the marketplace. Continued awareness and enforcement of these laws will further safeguard consumer interests and uphold justice.

Any opinion published here should not be considered a legal advice. Please talk to a lawyer for an appropriate legal advice.

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