Consumer Protection Act – 2019 replaces Consumer Protection Act – 1986

It empowers the consumers; help them to protect their rights through its provisions

• The Consumer Protection Act – 2019 comes in to force from 20 July by
  replacing the earlier Consumer Protection Act, 1986, gives more power to
  consumers
• Now, a consumer can institute a complaint from where he resides or from
  where he works for gain
• It also provides for establishment of the Central Consumer Protection Authority
  (CCPA)

Salient features of Consumer Protection Act – 2019

• The 2019 Act has been enacted for the purpose of providing timely and effective
  administration and settlement of consumer disputes and related matters
• It provides an enhanced protection to the consumers taking into consideration
  the booming e-commerce industry and the modern methods of providing goods
  and services such as online sales, tele-shopping, direct selling and multi-level
  marketing in addition to the traditional methods
• The 2019 Act expands the scope of the definition of Consumer so as to include
  the consumers involved in online transactions and it now squarely covers the
  E-commerce businesses within its ambit
• The 2019 Act has also widened the definition of Unfair Trade Practices as
  compared to the 1986 Act which now includes within its ambit online
  misleading advertisements
• The practice of not issuing bill or memo for the goods and services; failing to
  take back defective goods or deactivate defective services and refund the
  amount within the stipulated time mentioned in the bill or memo or within 30
  days in the absence of such stipulation
• Disclosing personal information of a consumer unless such disclosure is in
  accordance with law

Provision for ‘Unfair Contract’

• The 2019 Act has also introduced the concept of ‘unfair contract’ which
  includes those contracts, which favor the manufacturers or service providers
  and are against the interest of the consumers such as contracts requiring
  manifestly excessive security deposits to be given by a consumer for the
  performance of contractual obligations
• It imposes any penalty on the consumer for a breach of the contract, which is
  a. Wholly disproportionate to the loss occurred due to such breach to the other
  party to the contract
  b. Refusing to accept early repayment of debts on payment of applicable
  penalty
  c. Entitlement of a party to the contract to terminate such contract
  unilaterally, without reasonable cause
  d. Permitting or has the effect of permitting one party to assign the contract to
  the detriment of the other party who is a consumer, without his consent
  e. Imposing on the consumer any unreasonable charge, obligation or condition
  which puts such a consumer to any disadvantage
• Such unfair consumer contracts are now covered under the 2019 Act and a
  complaint in this regard can now be filed by a consumer
• This would help to keep a check on businesses including banks and
  E-commerce sites that take advantage of their dominance in the market and
  mandatorily require the helpless consumers to sign such unfair contracts and
  accept their standard terms before selling them goods or providing services

Six Consumer rights Defined

• Right to be protected against marketing goods and services that are hazardous
  to life and property
• Right to be informed about the quantity, quality, standard, purity and price of
  goods and services
• Right to be assured to access variety if goods at competitive prices
• Right to seek redressal against unfair trade practices
• Right to sue the celebrity for misleading endorsements
• Right to claim product liability action under the act on account of harm caused
  to consumers due to defective products

Pic courtesy : dnindia.com