All You Need to Know about the Consumer Protection Act (CPA), 2019

All You Need to Know about the Consumer Protection Act (CPA), 2019

(1.) Salient Features of the Consumer Protection Act, 2019

  • Consumer Protection Councils
  • Central Consumer Protection Authority (CCPA)
  • Simplified Dispute Resolution Process
  • Mediation
  • Product Liability
  • Rules on e commerce and direct selling
  • Penalty for adulteration of products/ spurious goods

(2.) Central Consumer Protection Authority (CCPA)

  • To provide relief to a class of consumers
  • Empowered to :
    • Conduct investigations into violations of consumer rights and institute Complaints/ Prosecution
    • Order recall of unsafe goods and services
    • Order discontinuance of unfair trade practices and misleading advertisements
    • Impose penalties on Manufacturers/ Endorsers/ Publishers of misleading advertisements
  • Gazette Notification for establishment of CCPA under publication

(3.) Simplified Dispute Resolution Process

  • Deemed admissibility after 21 days of filing
  • Empowerment of Consumer Commissions to enforce their orders
  • State Commission District Commission can now review their own orders
  • Appeals only on question of law after second stage
  • Ease of approaching Consumer Commissions
    • Filing from place of residence/work
    • E-filing
    • Videoconferencing for hearing

(4.) Mediation

  • An Alternate Dispute Resolution (ADR) mechanism
  • Reference to mediation by Consumer Commissions wherever scope for early settlement exists and parties agree for it
  • Mediation Cells to be attached to Consumer Commissions
  • Panel of mediators to be selected by selection committee consisting of the President and a member of Consumer Commission
  • Mediation to be held in consumer mediation cell
  • No appeal against settlement through mediation

(5.) Product Liability

  • A manufacturer or product service provider or product seller to be
    responsible to compensate for injury or damage caused by
    defective product or deficiency in services
  • Basis for product liability action
    • Manufacturing defect
    • Design defect
    • Deviation from manufacturing specifications
    • Not conforming to express warranty
    • Failing to contain adequate instructions for correct use
    • Service provided faulty, imperfect or deficient

(6.) Benefits to Consumers

  • The Consumer Protection Act, 1986 single point of access to justice, which is time consuming Additional swift executive remedies provided through CCPA
  • Deterrent punishment to check misleading advertisements and adulteration of products
  • Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services
  • Ease of approaching Consumer Commissions and Simplification of adjudication process
  • Scope for early disposal of cases through mediation
  • Provision for rules for new age consumer issues e commerce Direct selling

(7.) Rules and Regulations

(i.) Rules

  • General Rules
  • Central Consumer Protection Council Rules
  • Consumer Disputes Redressal Commissions Rules
  • Appointment of President & Member in State/District Commission Rules
  • Mediation Rules
  • Model Rules for States
  • E Commerce Rules

(ii.) Regulations

  • Consumer Commission Procedure Regulations
  • Mediation Regulations
  • Administrative control over State Commission & District Commission Regulations

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