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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