Consumer Protection Act 2019 : Features, Significance, Rights and Provision

What is the Consumer Protection Act, 2019?

Consumer Protection Act, 2019 was established to protect consumers from the unfair practices conducted by the sellers and/or manufacturers. Steps were adopted to protect the interest of consumers from service providers, manufacturers, retailers, and other intermediaries. Protection of consumers, compensation, redressal, consumer rights, consumer education, etc. was covered under the Consumer Protection Act, 2019. Consumer Protection Act, 2019 was established to replace the Consumer Protection Act, 1986 due to various factors including the introduction of technology in the markets.

Consumer Protect Act, 2019 was needed to protect the customers and provide them with compensation, if any. The act was established by the Indian Legislature to deal with customers who are facing malpractices and getting exploited by the hands of sellers or manufacturers. Malpractices practiced by sellers and/or manufacturers include improper information, adulteration, misleading advertisements, etc. The safety of E-consumers was also considered under this act due to the increasing use of technology in the market.

Meaning of ‘Consumer’ as per Consumer Protection Act, 2019

Section 2(7) of the Consumer Protection Act, 2019 defines a consumer as an individual or a group of individuals who buy products/services for their end use and not for resale purposes. A consumer is someone who buys any product for personal use and/or hires or avails any service in exchange for some monetary consideration or any other consideration (in the case of a barter system) but not for resale purposes.

Features of the Consumer Protection Act, 2019

• This act is applicable to all goods and services.
• This act covers all the sectors like private sector, public sector, and cooperative sector.
• This act applies to consumers and customers, both. Customers are those who purchase goods and services, but may or may not use them. However, Consumers are those who are the end users of goods and services.
• A three-tier, including district, state, and national dispute redressal mechanism has been set up.
• This act laid down penalties against sellers, manufacturers, and intermediaries which include imprisonment, fines, etc.

Significance of Consumer Protection Act, 2019

The main concern of the Consumer Protection Act, 2019 is to protect consumers from the malpractices practiced by sellers or manufacturers. But the act has other significances as well. Some of them are as follows:

1. Consumer Rights: Setting up basic Consumer Rights for the protection of consumers against sellers and manufacturers. These rights include the Right to safety, the Right to be heard, the Right to seek redressal, the Right to choose, the Right to consumer education, and the Right to be informed.

2. Awareness towards Misleading Advertisements: Making customers beware of misleading advertisements, not completely relying on advertisements, and completely trusting advertisements.

3. Consumer Education: Consumer education through the conduction of seminars, so that they can stay aware of their rights and not get exploited from the hands of sellers, manufacturers, and intermediaries.

4. Setting up Authorities: Establishments of proper authorities to hear the side of customers formally and the hearing of the case, if necessary.

5. Penalties: Laying down penalties against sellers, manufacturers, and intermediaries which includes imprisonment, fines, etc.

Rights of the Consumers

1. Right to Safety: It is the right of consumers to be protected against goods and services that are hazardous to health or life. For example, serious accidents can be caused due to defects in vehicles. No one deserves to get harmed at the hands of those people who want only more profits.

2. Right to Information: Right to be Informed states that a consumer has the right to be informed about the quantity, quality, purity, price, and standard of goods and services. The basic aim of this right is to protect consumers from any abusive and unfair trade practices. The right says that a producer must supply all the relevant information to consumers at a suitable place. Because of the right to information, the legal framework of India states that it is compulsory for the manufacturers to provide the relevant information on the package and label of the product.

3. Right to Choose: Right to Choose states that a consumer has the right to choose the goods and services of their choice or liking. In simple terms, it means that the consumers are given an assurance of ability, availability, and access to different products and services at a competitive price. A competitive price here means a fair price. The retailers, manufacturers, or traders cannot force the consumers to purchase a specific brand only, the consumers can choose any brand they find suitable from their point of view.

4. Right to be Heard: Right to be Heard states that a consumer has the right to be heard or advocate his/her interest or represent himself/herself. In simple terms, if a consumer has been exploited by a business or has a complaint regarding a business, good, or service, then he/she has the right to be heard and assured that his/her interest would be taken into consideration. For the fulfilment of this right, it is essential for the companies to have a complaint cell, so they can attend to the complaints of customers. Besides, the Right to be Heard also includes the right to representation in the government and other bodies making policies related to consumer protection.

5. Right to Seek Redressal: Right to Seek Redressal states that a consumer has the right to seek redressal and get compensation against exploitation or any other unfair trade practices. In simple terms, this right aims at assuring justice for the consumer against exploitation. The compensation can be in the form of money, replacement of goods, or repair of defective goods according to the satisfaction of the consumer. For the accomplishment of this right, the government has set up various redressal forums at the state level and national levels.

6. Right to Consumer Education: It means the right to receive knowledge and skills to become an informed consumer. In this direction, consumer associations, educational institutions, and policymakers can play an important part. They are expected to impart information and knowledge about the relevant laws that are aimed at prevailing unfair trade practices, the ways and means which dishonest traders and producers may adopt to deceive the consumers, insistence on a bill or receipt at the time of purchase, and the procedures to be followed by consumers while making complaints.

Provisions of the Consumer Protection Act, 2019

1. Regulation Authority: Central Consumer Protection Authority (CCPA) has been established to promote, protect, and enforce the rights of consumers. It investigates and takes action against unfair trade practices, misleading advertisements, and violations of consumer rights.

2. Filing of Complaints: Consumer Protection Act, 2019 allows consumers to file complaints from anywhere in the world.

3. Mediation and Product Recall: The act introduces mediation as a method of dispute resolution, allowing consumers and businesses to resolve disputes without going through lengthy legal procedures. It also provides for the establishment of a product recall process for goods and services that are found to be unsafe.

4. Jurisdiction: The Consumer Protection Act, 2019 establishes various consumer protection councils to protect the interest of consumers from exploitation at the hands of service providers, manufacturers, retailers, and other intermediaries. Central Consumer Protection Council, State Consumer Protection Council, and District Consumer Protection Council have been set up under this act. Different level of courts has specific range unto and under which the consumer can seek hearing and compensation:

• District Consumer Protection Council handles cases of up to ₹1 Crore.
• State Consumer Protection Council handles cases between ₹1 Crore to ₹10 Crores.
• Central Consumer Protection Council handles cases of above ₹10 Crores.

5. Product Liability: Manufacturers, sellers, or service providers can be held responsible/liable for any harm caused to consumers due to defective products or services.

6. E-Commerce and Direct Selling: Specific provisions are included to regulate e-commerce and direct selling activities, ensuring transparency, accountability, and consumer protection.

7. Video Conferencing: The Consumer Protection Act, 2019 allows the consumer to seek hearing through video conferences, rather than being physically present at the hearing.