The Consumer Protection Act, 2019

Aug 13, 2019 | by Avantis RegTech Legal Research Team

The Ministry of Law and Justice on August 09, 2019, has published the Consumer Protection Act, 2019, to protect the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers' disputes and for matters connected therewith or incidental thereto.

The Silent features of the Consumer Protection Act, 2019:

Ø  Central Consumer Protection Authority: The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers. Further, to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class.

Penalties for misleading advertisement: The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement. In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.

Ø  State Consumer Protection Councils: The objects of every State Council will be to render advice on promotion and protection of consumer rights within the State. It have jurisdiction to entertain complaints where the value of the goods or services does not exceed ten crore rupees

Ø  District Consumer Protection Council: The objects of every District Council will be to render advice on promotion and protection of consumer rights within the District. It have jurisdiction to entertain complaints where the value of the goods or services does not exceed one crore rupees.

Ø  National Consumer Disputes Redressal Commission: The objects of every National Commission will be to render advice on promotion and protection of consumer rights within the District. It have jurisdiction to entertain complaints where the value of the goods or services exceeds ten crore rupees.

Ø  Limitation period: The District Commission, the State Commission or the National Commission shall entertain the complaint if it is filed within two years from the date on which the cause of action has arisen. But if the complainant satisfies the District Commission, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period, the Commissions may be entertained after the expiry of specified period by recording its reasons for condoning such delay.

Ø  Introduction of new term called “product liability”. Product liability means the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto.

[NO. 35 OF 2019]


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