([Link]
bannerid=188&zoneid=106&OXLCA=1&sig=bb42d2b12c57ab9e72a710409f97bde9bbd4d0205413ea8dbb9197c656c38250&dest=https%3A%2F%2Fbyjusex
test-series-ias%2Fall-mock-tests%2F8f5c3320-9338-11ee-bbe1-
27240a104165%3Futm_source%3Dbyjus_website%26utm_medium%3Dbanners%26utm_campaign%3Donline-test-series-ias)
Consumer Protection Act, 2019 - A Brief Overview
The Consumer Protection Act, 2019 is an important topic for the UPSC exam. This is a part of the polity and governance segments in the UPSC
syllabus. In this article, we give you a brief description of the details of the newly-passed Act, salient provisions of the Act, its importance and
associated concerns, for the IAS exam ([Link]
Consumer Protection Act, 2019:- Download PDF Here
Looking for study material to ace the upcoming UPSC CSE?? Refer to the links below and start your IAS exam preparation now:
UPSC Previous Year Question Papers ([Link]
Topic-Wise GS 2 Questions for UPSC Mains ([Link]
Social Justice Questions for UPSC Mains ([Link]
Polity Questions for UPSC Mains ([Link]
Indian Society Questions for UPSC Mains GS 1 ([Link]
Public Organisations Questions for UPSC Mains GS 4 ([Link]
gs-4/)
Consumer Protection Act, 2019
The new Consumer Protection Act was passed by Parliament in 2019. It came into force in July 2020 and replaced the Consumer Protection Act,
1986.
Read about the important acts in India ([Link] from the linked article.
Given below is a gist of the Consumer Protection Act, 2019:
Enactme August 9, 2019
nt Date:
Act Year: 2019
Short The Consumer Protection Act, 2019
Title:
Long An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and
Title: effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto
Ministry: Ministry of Consumer Affairs, Food and Public Distribution
Departm Department of Consumer Affairs
ent:
Need for the new act:
products, dissatisfactory services, and unfair trade practices.
The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective
administration and settlement of consumers’ disputes.
Rights of the consumers:
Consumers have the right to information on various aspects of goods and services. This could be information about the quantity, quality,
purity, potency, price, and standard of goods or services.
To be protected from hazardous goods and services. Right to protection against goods and services that can be dangerous to life and
property.
To be protected from unfair or restrictive trade practices.
Consumers have the right to access a variety of goods and services at competitive prices.
Consumers should have the right to redressal.
Also, read about the National Consumer Disputes Redressal Commission (NCDRC) ([Link]
disputes-redressal-commission/) in the linked article.
Refer to the links below for IAS exam preparation:
Gist of Yojana Dec 2017 Issue: Consumer Awareness ([Link] Alternate Dispute Resolution ([Link]
ias-prep/upsc-exam-preparation-gist-of-yojana-dec-2017-issue-consumer- prep/alternative-dispute-resolution/)
awareness/)
Important Supreme Court Judgements ([Link] How a Bill is Passed in India – Types & Stages of a Bill
prep/important-supreme-court-judgments-upsc/) ([Link]
indian-parliament/)
Amendments in Indian Constitution ([Link] Important Articles in Constitution of India
prep/amendments-in-indian-constitution-for-upsc/) ([Link]
constitution-india/)
Salient Provisions of the Consumer Protection Act 2019
New definition of consumer:
The new Act has widened the definition of ‘consumer’.
Definition of consumer:
As per the Act, a person is called a consumer who avails the services and buys any good for self-use. Worth to mention that if a person buys
any good or avails any service for resale or commercial purposes, he/she is not considered a consumer. This definition covers all types of
transactions i.e. offline and online through teleshopping, direct selling or multi-level marketing.
Central Consumer Protection Authority:
The Act proposes the establishment of the Central Consumer Protection Authority (CCPA) as a regulatory authority.
The CCPA will protect, promote and enforce the rights of consumers and regulate cases related to unfair trade practices, misleading
advertisements, and violation of consumer rights.
CCPA would be given wide-ranging powers.
The CCPA will have the right to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel
licenses, impose penalties and file class-action suits.
The CCPA will have an investigation wing to conduct independent inquiry or investigation into consumer law violations.
To get the List of important Acts that Transformed India ([Link] for the upcoming UPSC exam
preparation, candidates can visit the linked article.
Consumer Disputes Redressal Commission:
The Act has the provision of the establishment of Consumer Disputes Redressal Commissions (CDRCs) at the national, state and district
levels to entertain consumer complaints.
As per the Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases up to Rs. 5 lakh.
E-Filing of Complaints:
The new Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or
work of the consumer. This is unlike the earlier condition where the consumer had to file a complaint at the place of purchase or where the
seller has its registered office address.
The new Act also contains enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties
through video-conferencing.
Consumers will also not need to hire a lawyer to represent their cases.
Product Liability & Penal Consequences:
The Act has introduced the concept of product liability.
A manufacturer or product service provider or product seller will now be responsible for compensating for injury or damage caused by
defective products or deficiency in services.
This provision brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation.
The term ‘product seller’ would also include e-commerce platforms.
Penalties for Misleading Advertisement:
The CCPA may impose a penalty on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence
them to imprisonment.
Provision for Alternate Dispute Resolution:
The new Act provides for mediation as an Alternate Dispute Resolution mechanism. For mediation, there will be a strict timeline fixed in the
rules.
As per the recently notified rules, a complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement
exists and parties agree to it. The mediation will be held in the Mediation Cells to be established under the aegis of the Consumer
Commissions. There will be no appeal against settlement through mediation.
Unfair Trade Practices:
The new Act has armed the authorities to take action against unfair trade practices too.
The Act introduces a broad definition of Unfair Trade Practices, which also includes the sharing of personal information given by the
consumer in confidence unless such disclosure is made in accordance with the provisions of any other law.
The Central Consumer Protection Council:
The Consumer Protection Act empowers the Central Government to establish a Central Consumer Protection Council. It will act as an
advisory body on consumer issues.
As per the notified Central Consumer Protection Council Rules, the Central Consumer Protection Council would be headed by the Union
Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from
different fields.
The Council, which has a three-year tenure, will have a Minister-in-charge of consumer affairs from two States from each region –
North, South, East, West, and NER. There is also a provision for having working groups from amongst the members for specific tasks.
Applicability:
This Act is applicable to all the products and services, until or unless any product or service is especially debarred out of the scope of this Act
by the Central Government.
Aspirants can read about different rights available to Indian citizens from the links given below:
Right to Equality ([Link] Right to Freedom ([Link]
articles-19-22/)
Right to Life (Article 21) ([Link] Right against Exploitation ([Link]
article-21/) against-exploitation-articles-23-24/)
Empowering consumers:
The new Act will empower consumers and help them in protecting their rights through its various rules and provisions. The new Act will help in
safeguarding consumer interests and rights.
Consumer-driven businesses such as retail, e-commerce would need to have robust policies dealing with consumer redressal in place.
The new Act will also push consumer-driven businesses to take extra precautions against unfair trade practices and unethical business
practices.
Inclusion of the e-commerce sector:
The earlier Act did not specifically include e-commerce transactions, and this lacuna has been addressed by the new Act.
E-commerce has been witnessing tremendous growth in recent times. The Indian e-commerce market is expected to grow to US$ 200
billion by 2026.
The Act also enables regulations to be notified on e-commerce and direct selling with a focus on the protection of interests of consumers.
This would involve rules for the prevention of unfair trade practices by e-commerce platforms.
As per the notified rules, every e-commerce entity is required to provide information relating to return, refund, exchange, warranty and
guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, the security of payment
methods, charge-back options, etc. including country of origin which are necessary for enabling the consumer to make an informed
decision at the pre-purchase stage on its platform.
The e-commerce platforms will have to acknowledge the receipt of any consumer complaint within forty-eight hours and redress the
complaint within one month from the date of receipt under this Act. This will bring e-commerce companies under the ambit of a
structured consumer redressal mechanism.
E-commerce entities that do not comply will face penal action.
Time-bound redressal:
A large number of pending consumer complaints in consumer courts have been common across the country. The new Act by simplifying the
resolution process can help solve consumer grievances speedily.
A main feature of the Act is that under this, the cases are decided in a limited time period.
Responsible endorsement:
The new Act fixes liability on endorsers considering that there have been numerous instances in the recent past where consumers have fallen
prey to unfair trade practices under the influence of celebrities acting as brand ambassadors.
This will make all stakeholders – brands, agencies, celebrities, influencers and e-commerce players – a lot more responsible. The new Act
would force the endorser to take the onus and exercise due diligence to verify the veracity of the claims made in the advertisement to refute
liability claims.
Upholding consumer interests:
For the first time, there will be an exclusive law dealing with Product Liability.
Product liability provisions will deter manufacturers and service providers from delivering defective products or deficient services.
The new legislation empowers the National Consumers Dispute Redressal Committee as well as the State Commission to declare null and
void any terms of a contract while purchasing a product. This will go a long way in protecting consumers, who are often subject to contract
conditions that favour a seller or manufacturer.
Alternate dispute redressal mechanism:
The provision of Mediation will make the process of dispute adjudication simpler and quicker.
This will provide a better mechanism to dispose of consumer complaints in a speedy manner and will help in the disposal of a large number
of pending cases in consumer courts across the nation.
Simplified process for grievance redressal:
The new Act would ease the overall process of consumer grievance redressal and dispute resolution process. This will help reduce
inconvenience and harassment for the consumers.
The enhanced pecuniary jurisdiction and provisions providing statutory recognition to mediation processes, enabling filing of complaints
from any jurisdiction and for hearing parties through video-conferencing will increase accessibility to judicial forums and afford crucial
protection in times when international e-commerce giants are expanding their base.
Read more about the Consumer Confidence Index (CCI) ([Link] at the linked article.
Implementational challenges:
The existing vacancies at the district commission level would undermine the effective implementation of the new Act.
Lack of differentiated approach:
As per the proposed rules for the e-commerce businesses, companies are not allowed to “manipulate the price” of goods and services
offered on their platforms to gain unreasonable profit or discriminate between consumers of the same class or make any arbitrary
classification of consumers affecting their rights under the Act.
The clause on the manipulation of price by e-commerce companies appears irrelevant as sometimes, the e-commerce companies would
want to reduce the price to enhance sales volume. For a country with market size of around $25 billion, the guidelines should have taken a
deeper view of the e-commerce ecosystem, covering all prevailing business models between consumers, marketplaces and sellers.
Relevant Links:
Personal Data Protection Bill, 2019 ([Link]
Environmental Impact Assessment (EIA) – UPSC Notes ([Link]
Grievance Redressal in India – An Overview ([Link]
Frequently Asked Questions related to the Consumer Protection Act 2019
Q1 What is the Consumer Protection Act in India?
In order to protect consumers from exploitation and to save them from adulterated and substandard goods and deficient services, the
Consumer Protection Act came into force on 15th April 1986. It was replaced by the Consumer Protection Act 2019.
Q2 What are the main features of the Consumer Protection Act?
The new Act has widened the definition of ‘consumer’. The Act proposes the establishment of the Central Consumer Protection Authority
(CCPA) as a regulatory authority. The new Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum
located at the place of residence or work of the consumer. The Act has introduced the concept of product liability. The new Act provides for
mediation as an Alternate Dispute Resolution mechanism. For mediation, there will be a strict timeline fixed in the rules. The new Act has
armed the authorities to take action against unfair trade practices too. This Act is applicable to all the products and services, until or unless
any product or service is especially debarred out of the scope of this Act by the Central Government.
Q3 What is the aim of the Consumer Protection Act?
The basic aim of the Consumer Protection Act, 2019 to save the rights of the consumers by establishing authorities for timely and effective
administration and settlement of consumers’ disputes.
Relevant Links
UPSC Mains General Studies Paper-II Strategy, Syllabus & Structure Topic-Wise General Studies Paper-2 Questions for UPSC Mains
([Link] ([Link]
mains/)
Previous Years Constitution Questions in UPSC Mains General Studies Previous Years Indian Polity Questions in UPSC Mains General Studies
Paper- 2 ([Link] Paper-2 ([Link]
upsc-mains-gs-2/) mains-gs-2/)
IAS General Studies Notes Links
G7 ([Link]
Npt (h
Summit summit/)
National Bird Of ([Link]
Sattriya Dance
India bird-of-india/)
Aiib ([Link] National Health Mission (h
Comments
Leave a Comment
Your Mobile number and Email id will not be published. Required fields are marked *
*
Mobile Number Send OTP
Type your message or doubt here...
Post My Comment
Join BYJU'S Learning Program
Name
Mobile Number
Submit
([Link]
bannerid=180&zoneid=107&OXLCA=1&sig=ccbf45c59d13a4397e36ebb6d0f70b684b6c4809b8bf31fe4f91078b36fed5b8&dest=https%3A%2F%2Fbyjusex
test-series-
ias%3FopenLogin%3Dy%26jsdelay%3Dfalse%26utm_campaign%3DbyjusIntegration%26utm_medium%3DTSWidget%26utm_source%3DIAS)
([Link]
bannerid=181&zoneid=381&OXLCA=1&sig=1b3ac0b3dce6204806db19d3d2786175df75c1d6ff76094c642e366effe69b8e&dest=https%3A%2F%2Fbyjusexa
year-papers%2Fupsc-
exams%3FopenLogin%3Dy%26jsdelay%3Dfalse%26utm_campaign%3DbyjusIntegration%26utm_medium%3DPYSP%26utm_source%3DIAS)
Daily Updates – 25/06/2024
UPSC Prelims 2024 Paper Analysis ([Link]
UPSC 2024 Prelims Answer Key ([Link]
Daily Free Current Affairs Notes ([Link]
Comprehensive News Analysis - 25 June 2024 ([Link]
The Hindu Video Analysis - 25 June 2024 ([Link]
PIB - 24 June 2024 ([Link]
Topic of the Day – Central Board of Film Certification (CBFC) ([Link]
This Day in History - June 25, 1975 - Emergency Declared ([Link]
UPSC Mains Answer Writing Practice ([Link]
Weekly Updates
Weekly GK and Current Affairs Quiz June 22 - June 28 ([Link]
2024/)
View more... ([Link]
June Archive – Daily Posts
June 2024
M T W T F
3 4 5 6
([Link] ([Link] ([Link] ([Link] (http
10 11 12 13
([Link] ([Link] ([Link] ([Link] (http
17 18 19 20
([Link] ([Link] ([Link] ([Link] (http
24 25 26 27
([Link] ([Link]
« May ([Link]
COURSES EXAMS
CBSE (/cbse/) CAT Exam (/cat/exam-info/)
ICSE (/icse/) CAT 2023 (/cat/cat-2023/)
CAT (/cat/) GATE Exam (/gate/gate-exam/)
IAS (/ias/) GATE 2024 (/gate/gate-2024/)
JEE (/jee/) IAS Exam (/ias-exam/)
NEET (/neet/) UPSC Exam (/free-ias-prep/upsc-exam/)
Commerce (/commerce/) UPSC Syllabus (/ias/upsc-syllabus/)
JEE Main (/jee/jee-main/) UPSC 2023 (/free-ias-prep/upsc-2023/)
NCERT (/ncert/) Bank Exam (/bank-exam/)
JEE Advanced (/jee-advanced/) Government Exams (/govt-exams/)
UPSC Prelims 2022 Question Paper (/free-ias-prep/upsc-prelims-2022-question-papers-pdf/) Education News (/news/)
UPSC Prelims 2022 Answer Key (/free-ias-prep/upsc-prelims-answer-key-2022/)
CLASSES
IAS Coaching (/ias-coaching/)
CBSE Sample Papers (/cbse/cbse-sample-papers/) Kids Learning (/kids-learning/)
CBSE Question Papers (/cbse-study-material/cbse-previous-year-question-paper/) Class 1st - 3rd (/disney-byjus-early-learn/)
Class 4th - 5th (/class-4-5/)
Class 6th - 10th (/class-6-10/)
Class 11th - 12th (/class-11-12/)
BYJU'S Tuition Centre (/btc/)
EXAM PREPARATION COMPANY
Free CAT Prep (/free-cat-prep/) About Us (/about-us/)
Free IAS Prep (/free-ias-prep/) Contact Us (/contact-us/)
Maths (/maths/) Contact our Financial Partners ([Link]
partners/)
Physics (/physics/)
Investors (/our-investors/)
Chemistry (/chemistry/)
Compliance (/compliance/)
Biology (/biology/)
Careers (/careers-at-byjus/)
JEE 2024 (/jee/jee-2024/)
BYJU'S in Media (/press/)
JEE Advanced 2023 Question Paper with Answers (/jee/jee-advanced-2023-question-paper/)
Social Initiative - Education for All (/educationforall/)
JEE Main Mock Test (/jee/jee-main-mock-test/)
RESOURCES
BYJU'S Give (/give/)
CAT College Predictor (/free-cat-prep/cat-college-predictor/)
Worksheets (/worksheets/)
BYJU'S Answer (/question-answer/)
DSSL (/about-dssl/)
Home Tuition (/home-tuition/)
All Products ([Link]
Calculators (/calculators/)
Formulas (/formulas/)
FREE TEXTBOOK SOLUTIONS STATE BOARDS
(/textbook-solutions/) Maharashtra (/msbshse/)
NCERT Solutions (/ncert-solutions/)
Gujarat (/gseb/)
NCERT Exemplar (/ncert-exemplar/)
Tamil Nadu (/tn-board/)
NCERT Solutions for Class 6 (/ncert-solutions-class-6/)
Karnataka (/kseeb/)
NCERT Solutions for Class 7 (/ncert-solutions-class-7/)
Kerala (/kbpe/)
NCERT Solutions for Class 8 (/ncert-solutions-class-8/)
Andhra Pradesh (/ap-board/)
NCERT Solutions for Class 9 (/ncert-solutions-class-9/)
Telangana (/telangana-board/)
NCERT Solutions for Class 10 (/ncert-solutions-class-10/)
Uttar Pradesh (/upmsp/)
NCERT Solutions for Class 11 (/ncert-solutions-class-11/)
Bihar (/bihar-board/)
NCERT Solutions for Class 11 English (/ncert-solutions-class-11-english/)
Rajasthan (/rajasthan-board/)
NCERT Solutions for Class 12 English (/ncert-solutions-class-12-english/)
Madhya Pradesh (/mp-board/)
NCERT Solutions for Class 12 (/ncert-solutions-class-12/)
West Bengal (/west-bengal-board/)
RD Sharma Solutions (/rd-sharma-solutions/)
RD Sharma Class 10 Solutions (/rd-sharma-class-10-solutions/)
ICSE Selina Solutions (/icse/selina-solutions/)
FOLLOW US
([Link] ([Link]
Disclaimer (/disclaimer/) Privacy Policy (/tnc_app/#privacydesc) Terms of Services (/tnc_app/#tncdesc) Sitemap (/[Link])
© 2024, BYJU'S. All rights reserved.
