FAQs on Consumer Protection Act 2019

Overview: The Consumer Protection Act of 2019 is designed to safeguard consumers' rights and provide an efficient mechanism for addressing grievances related to overpricing, substandard services, defective products, misleading advertisements, and unfair business practices.

This Act replaces the Consumer Protection Act 1986 with an updated framework to simplify and accelerate the consumer grievance redressal process.

One key feature of the Act is the establishment of the Central Consumer Protection Authority (CCPA), which can take action against companies engaging in deceptive practices or violating consumer rights.

The Act empowers consumers to take action and seek redressal more effectively, ensuring their rights are better protected in today’s dynamic marketplace.

This blog will explore and address the most important Frequently Asked Questions (FAQs) related to the Consumer Protection Act 2019. The Act introduces new provisions that strengthen consumer rights, provide a more streamlined grievance redressal mechanism, and address modern consumer challenges like e-commerce, product liability, and misleading advertisements.

Through these FAQs, we aim to clarify key aspects of the Act, such as the roles of the Central Consumer Protection Authority (CCPA), the conditions under which consumers can file complaints, the liability of manufacturers and sellers, and the procedures involved in seeking compensation.

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Frequently Asked Questions (FAQs) of the Consumer Protection Act 1986

Here are some FAQs that everyone should know:

1. What is the Consumer Protection Act of 2019?

The Consumer Protection Act of 2019 replaces the earlier Consumer Protection Act of 1986. It aims to enhance consumer rights, provide a faster and more effective grievance redressal mechanism, and hold manufacturers, sellers, and endorsers accountable for false or misleading practices.

2. What are the major highlights of the new Act?

Key features include:

• The establishment of a Central Consumer Protection Authority (CCPA) to regulate matters related to consumer rights, unfair trade practices, and misleading advertisements.
• A Product Liability clause that holds manufacturers and service providers liable for harm caused by defective products or deficient services.
• Provision for an alternative dispute resolution mechanism through mediation.

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3. Who can file a complaint?

Any consumer, a registered voluntary consumer association, or the Central/State Government can file a complaint regarding defective goods, service deficiency, unfair trade practices, or misleading advertisements.

4. How can consumers file complaints under the new Act?

Complaints can be filed:

• In-person
• By an authorized agent
• Online through the E-Daakhil platform, which facilitates the online filing of consumer complaints.

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5. What is the CCPA, and what is its role?

The Central Consumer Protection Authority (CCPA) is a regulatory body created to protect, promote, and enforce consumer rights. It can investigate violations of consumer rights, issue guidelines, and take action against unfair practices.

6. What are the powers of the CCPA?

The CCPA has the authority to:

• Conduct investigations into violations of consumer rights.
• Initiate proceedings against violators.
• Issue orders to recall unsafe goods and refund the consumers.
• Impose penalties for false or misleading advertisements.

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7. What is "Product Liability"?

Product liability refers to the liability of manufacturers, sellers, or service providers to compensate consumers for harm caused by defective products or deficient services. It covers damages to property, personal injury, mental agony, or any other harm arising from using such products or services.

8. Who is liable for misleading advertisements?

Manufacturers, service providers, advertising agencies, and even endorsers (like celebrities) can be held liable for misleading advertisements if they fail to ensure the truthfulness of the claims made in the advertisements.

9. What are the consumer rights provided under the Act?

The Act guarantees six primary consumer rights:

• Right to safety
• Right to be informed
• Right to choose
• Right to be heard
• Right to seek redressal
• Right-to-consumer education

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10. What is e-commerce under the Act?

E-commerce refers to the buying or selling goods or services over digital or electronic networks. The Act mandates that e-commerce entities comply with consumer protection laws, ensuring transparency in product information, pricing, and refund policies.

11. What is the role of mediation under the Act?

Mediation is introduced as a means of resolving consumer disputes amicably and cost-effectively without needing a full trial.

12. What penalties are there for violating consumer protection laws?

The Act imposes significant penalties, including fines and imprisonment, for violations such as producing or selling unsafe goods, engaging in unfair trade practices, or issuing misleading advertisements.

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13. What is an Unfair Contract?

An unfair contract is an agreement between a manufacturer, trader, or service provider and a consumer where the terms significantly unreasonably alter the consumer’s rights. Examples include:

• Excessively high-security deposits from the consumer.
• Imposing disproportionate penalties for breach of contract.
• Refusing to accept early repayment of debt unless penalties are paid.
• Unilateral termination of contracts without cause.
• Assigning the contract without the consumer's consent.
• Imposing unreasonable obligations or charges that put the consumer at a disadvantage.

14. What is a Misleading Advertisement?

A misleading advertisement is an ad that:

• Falsely describes a product or service.
• Provides false guarantees or misleads consumers regarding the product’s nature, quality, or quantity.
• Contains representations that would constitute unfair trade practices.
• It omits important information to mislead consumers.

15. Who Can Be Held Liable for a Misleading Advertisement?

The parties that can be held liable for misleading advertisements include:

• Manufacturers.
• Advertising agencies.
• Celebrity endorsers.
• Publishers of the advertisement.

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16. What is E-Commerce?

Under the Consumer Protection Act of 2019, e-commerce refers to the buying and selling of goods and services, including digital products, through digital or electronic networks.

17. What is an E-Commerce Entity?

An e-commerce entity is any person or organization that operates a digital or electronic platform for selling goods or services. It does not include individual sellers offering their goods or services on a marketplace e-commerce platform.

18. What is the Central Consumer Protection Authority (CCPA)?

The CCPA is a regulatory body established under the Consumer Protection Act of 2019 to address violations of consumer rights, unfair trade practices, and misleading advertisements. Its main role is to protect and promote consumers' rights and ensure compliance with consumer protection laws.

19. What is the Structure of the Central Consumer Protection Authority?

The CCPA comprises a chief commissioner and other commissioners appointed by the central government.

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20. Does the Central Authority Have an Investigation Wing?

Yes, the CCPA has an investigation wing led by a Director General to conduct inquiries or investigations into violations of consumer rights.

21. What Are the Powers of the Central Consumer Protection Authority?

The CCPA has the power to:

• Protect and enforce consumer rights.
• Prevent violations of consumer rights.
• Investigate and take action against unfair trade practices.
• Issue orders for the recall of unsafe products or the withdrawal of misleading advertisements.

22. Does the Central Authority Have Suo Motu Powers?

Yes, the CCPA can initiate investigations on its own (suo motu), based on complaints received, or upon direction from the Central Government.

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23. Can the Central Authority File Complaints?

The CCPA can file complaints before the District, State, or National Consumer Commissions.

24. Is There an Appeal Mechanism for CCPA Decisions?

Anyone aggrieved by the CCPA’s decisions can appeal to the National Consumer Disputes Redressal Commission (NCDRC) within 30 days of receiving the order.

25. When Can I Claim Compensation from a Seller?

A product seller, even if not the manufacturer, can be held liable for product liability in certain situations, including:

• Control Over Product Design/Manufacturing: If the seller had significant control over the design, testing, manufacturing, packaging, or labelling of the product that caused harm.
• Product Modification: If the seller altered or modified the product, this modification was an important factor in causing harm.
• Independent Warranty: If the seller provided an independent warranty (separate from the manufacturer’s) and the product failed to meet the warranty terms, leading to harm.
• Unknown Manufacturer: If the seller cannot identify the manufacturer or if the manufacturer cannot be served with a legal notice.
• Jurisdiction Issues: If the manufacturer is not subject to Indian laws or the court's orders cannot be enforced against them.
• Negligence in Handling: If the seller failed to inspect or assemble the product correctly or did not provide essential warnings from the manufacturer about potential dangers, leading to harm.

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26. What are the Defenses Available in a Product Liability Action?

In a product liability case, the seller can defend against the claims if:

• The product was misused, altered, or modified by the consumer.
• The danger was obvious or standard, or the consumer should have reasonably known about it.
• The product was purchased with sufficient warnings or instructions from the manufacturer.
• The product was sold as a component of an end product, and the manufacturer gave warnings, but the end product caused harm.
• The product was to be used under the supervision of an expert, and the manufacturer provided adequate warnings or instructions to that expert.
• The consumer was under the influence of alcohol or drugs while using the product, not prescribed by a medical practitioner.

27. What must you file a Complaint Before the Consumer Commission?

To file a complaint:

• In Writing: The complaint must be submitted in writing.
• Online or Offline: Complaints can be filed online at e-daakhil or submitted offline in person or via registered post.
• Copies: Three copies are required—one for the official record, one for the opposite party, and one for the complainant. More copies are needed if there are multiple opposite parties.

28. What is Mediation in Consumer Disputes?

Consumer disputes can be resolved through mediation:

• Referral by Commission: The District Commission may refer the case to mediation if they believe settlement is possible, with the parties’ consent.
• Voluntary Mediation: Both parties can agree to mediation at any stage of the complaint process.

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29. What is the Fees for Mediation?

There is no fee for mediation services.

30. Can Appeals be Filed After Mediation?

Once a dispute is resolved through mediation, no appeal can be made against the settlement.

31. What is the Representation in the Consumer Commission?

Consumers do not need an advocate to represent them. The Consumer Commissions are designed to be user-friendly and do not require complex legal procedures. Consumers can represent themselves or have a representative handle their case.

32. What are the Contents of a Consumer Complaint?

The complaint should include:

• The name, description, and address of the complainant.
• The name, description, and address of the opposite party.
• Details of the complaint, including when and where the issue arose.
• Any documents supporting the complaint.

33. What is the Time Limit for Filing a Complaint?

The complaint must be filed within two years from the issue, such as when a defect in goods or a deficiency in service was first detected.

34. What is the Court Fee Payment mode?

The court fee must be submitted along with the complaint through a crossed Demand Draft or Indian Postal Order in favour of the Registrar of the respective Commission.

35. What do Consumer Commissions provide for Relief?

Consumer Commissions can grant several types of relief, including:

1. Removal of defects from goods.
2. Replacement of defective goods.
3. Refund of the price paid.
4. Rectifying deficiencies in services.
5. Compensation for losses or injuries suffered.
6. Discontinuation of unfair trade practices.
7. Withdrawal of hazardous goods from sale.
8. Cease production of dangerous goods or services.
9. Compensation for a large number of affected consumers.
10. Issuance of corrective advertisements to counter misleading ones.
11. Providing costs to the involved parties.

36. What is the Timeline for satisfactory Appeals Against Consumer Commission Orders?

If a consumer is dissatisfied with the Commission’s decision, they can file an appeal:

• District Commission Orders: Appeal to the State Commission within 30 days.
• State Commission Orders: Appeal to the National Commission within 30 days.
• National Commission Orders: Appeal to the Supreme Court within 45 days.

Conclusion:

In conclusion, the Consumer Protection Act of 2019 is a comprehensive legal framework that empowers consumers by providing clear avenues for grievance redressal and holding manufacturers, sellers, and service providers accountable for their products and services.

By addressing modern consumer issues like e-commerce and product liability, the Act strengthens consumer rights and provides more effective tools for consumers to seek justice against unfair trade practices. This blog has covered the most crucial FAQs that clarify how the Act functions and its protections, equipping consumers with the knowledge they need to navigate their rights and assert them confidently in today’s marketplace.