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INTRODUCTION

The Consumer Protection Act of 1986 was replaced by the Consumer Protection Act of 2019, following its introduction in the Lok Sabha by Mr. Ram Vilas Paswan, the Minister of Food and Public Distribution and Consumer Affairs. This bill was presented on July 8, 2019. The primary objective of the Consumer Protection Act, 2019 is to safeguard and advance the interests of consumers by offering them an affordable and expeditious means to address their grievances. The Act is applicable throughout India and covers all types of businesses, including traders, manufacturers, and e-commerce firms, regardless of whether they are involved in the supply of goods or provision of services. 

Consumer protection is a vital aspect of any thriving economy, ensuring fair and transparent transactions between businesses and consumers. Recognizing the need to address emerging challenges in the marketplace, the Indian government enacted the Consumer Protection Act, 2019. This comprehensive legislation aims to safeguard the interests and rights of consumers, while also adapting to the evolving landscape of the digital economy.

ANALYSING THROUGH DIFFERENT LENSES 

A POSITIVE OUTLOOK:

1. Strengthening Consumer Rights as compared to Act of 1986

The Consumer Protection Act, 2019 reinforces and expands upon the fundamental rights of consumers. It recognizes six basic rights: the right to be protected against hazardous goods and services, the right to information, the right to choose, the right to be heard, the right to seek redressal, and the right to consumer education. By enshrining these rights in law, the act empowers consumers to make informed decisions, voice their grievances, and seek appropriate remedies.

2. Increased Power of Consumer Courts

The proposed amendments to the Consumer Protection Act include a provision stating that the judgments of consumer courts, such as the district, state, and national levels, will be enforced as decrees of civil courts. To ensure adherence to the orders issued by these consumer courts, an amendment has been proposed. This amendment suggests that individuals failing to comply with the orders of the district forum, state commission, or national commission may be subject to a fine of either Rs500 or 1.5% of the penalty amount. This amendment facilitated the speedy disposal of cases.

3. E-Commerce and Consumer Protection

With the rise of e-commerce, the Consumer Protection Act, 2019 seeks to address the unique challenges faced by online consumers. It introduces provisions that hold e-commerce platforms accountable for counterfeit products, unfair trade practices, and non-compliance with consumer rights. The act mandates the disclosure of important information such as seller details, return policies, and terms of service, thereby enhancing transparency and trust in online transactions.

4. Product Liability and Consumer Safety

The new legislation places emphasis on product liability, making manufacturers and sellers responsible for defective goods and services. It introduces the concept of product liability action, which enables consumers to seek compensation for harm caused by defective products. This provision ensures that consumers are protected from substandard products and encourages businesses to maintain high-quality standards.

5. Alternate Dispute Resolution Mechanism

Recognizing the need for expeditious and cost-effective resolution of consumer disputes, the Consumer Protection Act, 2019 promotes the use of alternative dispute resolution mechanisms. It establishes Consumer Dispute Redressal Commissions at the district, state, and national levels, offering consumers a quicker and more accessible route for grievance redressal. Mediation, arbitration, and negotiation are encouraged to resolve disputes amicably, reducing the burden on the formal judicial system.

6. Simplifying Consumer Complaint Redressal

The new legislation simplifies the process of filing consumer complaints. Consumers now have the option to file complaints electronically, making it more convenient and accessible. Additionally, the act enables consumers to file complaints at their place of residence or work, saving them from the hassle of traveling to the seller's location. These measures aim to streamline the redressal process and ensure greater consumer participation.

7. Consumer Education and Awareness

The Consumer Protection Act, 2019 recognizes the importance of consumer education and awareness in empowering consumers. It mandates the promotion of consumer rights through campaigns, workshops, and educational programs. By imparting knowledge about consumer rights and responsibilities, the act encourages informed decision-making and fosters a culture of consumer empowerment.

8. Increased Pecuniary Jurisdiction

Consumer Dispute Redressal Commissions will be established at the district, state, and national levels, each with specific pecuniary jurisdiction. The district-level commission will handle cases involving amounts up to Rs one crore, while the state-level commission will address cases ranging from Rs one crore to Rs 10 crore. For cases exceeding Rs 10 crore, the national-level commission will have the jurisdiction. When it comes to unfair contracts, complaints with a value of up to Rs 10 crore will be heard by the state commissions, whereas the national commissions will handle complaints exceeding that threshold. Additionally, these commissions possess the authority to declare unfair terms within such contracts as null and void.

9. Strengthening Penalties and Deterrence

To discourage unfair trade practices and protect consumers from exploitation, the Consumer Protection Act, 2019 significantly enhances penalties for violations. It introduces stringent provisions, such as penalties for misleading advertisements, adulteration, and spurious goods. Repeat offenders face higher fines and even imprisonment, creating a strong deterrent against unscrupulous practices.

THE UNDERLINED NEGATIVES

1. Lack of clarity of minimum qualification

The Consumer Protection Act 2019 specifies that the Commissions will be led by a 'President' and will consist of other members. However, it delegates to the central government the authority to determine the qualifications of the President and members. Notably, act does not explicitly state that the President or members must possess a minimum level of judicial qualifications. This differs from the existing Consumer Protection Act of 1986, which stipulates that the District Commission should be headed by an individual qualified to be a district judge. Similarly, the State and National Commissions are headed by individuals qualified to be High Court or Supreme Court judges, respectively. The 1986 Act also outlines the minimum qualifications required for members.

2. No Strict Separation of Powers

The Consumer Protection Act, 2019 allows the central government to determine the procedure for appointing members to the Commissions. The act does not mandate the involvement of the higher judiciary in the selection process. Some concerns may arise regarding the potential impact on the independent functioning of the Commissions if the executive is granted the authority to appoint members.

REMARKS 

The Consumer Protection Act, 2019 is a significant milestone in India's consumer protection landscape, addressing the challenges posed by the digital economy while strengthening consumer rights and safeguards. By establishing regulatory authorities, ensuring product liability, promoting alternate dispute resolution, and simplifying complaint redressal, the act endeavours to create a fair and transparent marketplace. However, effective implementation, widespread awareness, and active consumer participation are crucial to harness the full potential of this legislation. The Consumer Protection Act, 2019 marks a progressive step forward in empowering consumers and ensuring their well-being in the dynamic and ever-evolving marketplace of the digital age.

REFERENCES

https://prsindia.org/billtrack/the-consumer-protection-bill-2018 

https://www.moneylife.in/article/amendments-to-the-consumer-protection-act-a-step-in-the-right-direction/22717.html 

https://www.geeksforgeeks.org/consumer-protection-act-1986-v-s-consumer-protection-act-2019/ 

https://citizenmatters.in/faq-consumer-protection-amendment-act-14404