Consumer Protection Act, 2019 comes into force from July 20: Centre

Jul 20, 2020, 18:51 IST

The Consumer Protection Act, 2019 also includes the establishment of the Central Consumer Protection Authority (CCPA) in order to protect, promote, and enforce the rights of the consumers.

Consumer Protection Act, 2019 comes into force
Consumer Protection Act, 2019 comes into force

The Consumer Protection Act, 2019 has come into force from July 20, 2020, as the Union Minister for Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan stated that the new law will empower the consumers.

The new law will protect the rights of the consumers through its notified rules and provisions like consumer disputes redressal commissions, consumer protection councils, product liability, mediation, and punishment for the manufacture or sale of products that contain adulterant goods.

The Union Minister also informed that the act includes the establishment of the Central Consumer Protection Authority (CCPA) in order to protect, promote, and enforce the rights of the consumers.

Consumer Protection Act, 2019: Key Highlights

•  The rules for the prevention of unfair trade practices by the e-commerce platforms will be covered under the Act.

•  Every e-commerce entity will be required to provide information regarding the refund, return, warranty and guarantee, exchange, delivery and shipment, grievance redressal mechanism, payment methods, modes of payment, the security of payment methods and chargeback options-including country of origin-which will be necessary for enabling the consumers to make an informed decision at the pre-purchase stage on its platform.

•  An alternate dispute mechanism of mediation has also been provided in the new Act in order to simplify the adjudication process. A Consumer commission will refer a complaint for mediation, wherever the scope for early settlement exists and parties agree for it.

•  The mediation will take in mediation cells which will be established under the consumer commissions. There will be no appeal against the settlement through mediation.

•  There will also be no fee for filing cases up to Rs. 5 lakhs as per the Consumer Disputes Redressal Commission Rules.

Objective of CCPA:

The Central Consumer Protection Authority (CCPA) will be empowered to conduct investigations into consumer rights violations and institute prosecutions or complaints. It can also order the discontinuance of misleading advertisements and unfair trade practices, order recalls of unsafe goods and services, can also impose penalties on the manufacturers or publishers or endorsers of misleading advertisements.

Benefits to the consumers

•  Deterrent punishment to check adulteration of products and misleading advertisements

•  Swift execution remedies which will be provided through the Central Consumer Protection Authority (CCPA).

•  The provision of product liability to deter the manufacturers and service providers from delivering the deficient services and defective products.

•  It will be easier to approach consumer commissions and there is also a simplification of the adjudication process.

•  With the law, there is a scope for the early disposal of cases through mediation.

•  There is also a provision for rules for the new age consumer issues: direct selling and e-commerce.

Consumer Protection Act, 2019: Background

Consumer Protection Act, 2019 repeals and replaces the Consumer Protection Act, 1986. The Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan first introduced the Consumer Protection Bill, 2019 in Lok Sabha on July 8, 2019. 

The Bill was passed in Lok Sabha on July 30, 2019, and then in Rajya Sabha on August 6, 2019. The bill received President Ram Nath Kovind's assent on August 9, 2019, and was also notified in the Gazette of India on the same date. 

Shailaja Tripathi is an educational content writer with 2 years of experience. She is a Masters in Political Science from Delhi University and also holds a Bachelors in Education. At jagranjosh.com, she creates content for school students and college audiences. You can reach her at shailaja.tripathi@jagrannewmedia.com
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