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Consumer Protection Act 2019 and 1986: Importance, Scope, Laws, Rights

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Consumer Protection Act 2019 and 1986

Consumer Protection Act 2019 intends to defend and advance customers’ inclinations by settling their grievances in an ideal and practical way.

It came into power on July 20, 2020. It covers the whole nation of India, except for the region of Jammu and Kashmir.

It applies to a wide range of undertakings, regardless of whether they are makers or merchants, and whether they sell labor and products, including web-based business organizations.

The Act gives purchasers explicit freedoms to engage them and shield their inclinations.

► Consumer Protection Act 2019

Consumer Protection Act 2019 replaced the consumer protection act 1986 to provide timely administration & settlement of consumer disputes.

The new Act empowers & Protect the rights of consumers through various notified rules & provisions related to;

  • Consumer Protection Councils
  • Consumer Disputes Redressal Commissions
  • Mediation
  • Product Liability
  • Rules on e-commerce and direct selling
  • Penalty for adulterant & spurious goods

◉ Central Consumer Protection Authority (CCPA)

Establishment of Central Consumer Protection Authority, also known as CCPA, to promote, protect & enforce the rights of consumers.

CCPA empowered to perform the following:

  • Conduct investigations into violations of consumer rights & institute complaints and prosecution.
  • Order recall of unsafe goods and services.
  • Order discontinuance of unfair trade practices & misleading advertisements
  • Impose penalties on manufacturers/endorsers/publishers of misleading advertisements

◉ Dispute Resolution & Redress

Product liability provision to deter manufacturers & service providers for delivering defective products or deficient services.

Alternate dispute resolution mechanism of mediation for early settlement of cases.

Simplified dispute resolution process:

  • State & District commissions can now review their own orders.
  • Empowerment the Consumer Commission to enforce their orders.
  • Ease of approaching Consumer Commissions through the electronic filing of complaints & Videoconferencing for hearing.
  • Deemed admissibility after 21 days of filing; Appeals only on the question of law after the second stage.

Provision of Rules for the prevention of unfair trade practices by e-commerce platforms.

  • Every e-commerce entity provides information relating to return, refund, grievance redressal mechanism, etc, including country of origin.
  • Acknowledge the receipt of any consumer complaint within 48 hours.
  • Redress the complaint within one month from the date of receipt.

Punishment of manufacturer of sale of adulterant/ spurious goods, suspension of license up to 2 years in case of first conviction & cancellation of license for a subsequent conviction.

Consumer protection alludes to defending purchasers from producers or vendors that take part in enemy of buyer exchange exercises.

◉ Difference Between Consumer Protection Act 1986 and 2019

Difference Between Consumer Protection Act 1986 and 2019

Prior Approach (Consumer Protection Act 1986)

The past methodology was of ‘proviso emptor’, which is a real sense means “let the purchaser be careful.”

Present Approach (Consumer Protection Act 2019)

In any case, by and by the methodology is of ‘admonition venditor’, which is a real sense means “let the dealer be careful.”

Manipulative and unjustifiable exchanging rehearses, like imperfect and perilous things, defilement, bogus and deceiving promoting, accumulating, and dark advertising, open shoppers to risks. Subsequently, successful buyer assurance against such demonstrations is required.

Need, Importance Of Consumer Protection Act 2019

The importance of the Consumer Protection Act can be understood from both Consumer and business points of view.

  • From Consumer’s Point Of View
  • From Business Point Of View

From Consumer’s Point Of View

1. Consumer Ignorance: Most buyers know nothing about their freedoms and cures, and subsequently, they are continually taken advantage of. Buyer assurance is needed to shield purchasers from such manipulative practices.

2. Far and wide Exploitation of Consumers: Consumers are mishandled on a colossal scale through an assortment of uncalled-for exchange practices, and shopper security is important to shield them.

3. Unorganized Consumers: Consumers in India are as yet sloppy, and there are not many purchaser associations that would advocate for them.

From Business Point Of View

The business utilizes societal resources: Every business uses cultural assets, and they must work for the general public’s wellbeing.

1. Long-term business interests: It is in the business’ well-being to keep its clients cheerful. Clients should be fulfilled to win the worldwide contest. Fulfilled buyers lead to rehash buys, which assists with growing the organization’s client base.

2. Government Intervention: If a firm participates in uncalled-for business rehearses, the public authority will make a move against it, hurting the organization’s standing.

3. Social Responsibility: A business has social obligations to an assortment of partners, including proprietors, representatives, the public authority, and clients. Accordingly, customers ought to have the option to buy great merchandise at reasonable evaluation.

4. Moral Justification: Any firm has an honest conviction to act to the greatest advantage of its clients and forestall abuse and unreasonable exchange practices like flawed and hazardous items, defilement, bogus and deluding promoting, hoardings, dark showcasing, etc.

► Scope Of Consumer Protection Act 2019

The extent of this act is wide and covers a wide scope of exercises. This act covers every one of the endeavors;

  • Both huge and limited scope endeavors.
  • Each of the three areas is covered, in particular private, public, and helpful.
  • It is material to internet business organizations too.
  • It is material to the entire of India.

Generally, products, administrations, and exchange rehearses are a piece of this demonstration, until explicitly excluded.

► Consumer Protection Laws in India

The legitimate system that offers security to customers incorporates;

◉ The Indian Contract Act, 1872:

The Indian Contract Act of 1872 specifies the prerequisites for the materialness of an agreement endorsed by the gatherings to the agreement, just as the cures accessible in case of a break of agreement.

◉ The Sale of Goods Act, 1930:

The Act gives purchasers different insurances and advantages regarding the arrangement made for the offer of merchandise.

◉ The Essential Commodities Act, 1955:

This Act forbids opportunists, hoarders, and dark advertisers from taking part in enemies of social conduct. It will probably keep up with command over the creation, supply, and circulation of basic wares.

◉ The Agricultural Produce (Grading and Marketing) Act, 1937:

The Act sets upgrade necessities for farming and domesticated animals items.

◉ Adulteration Act, 1954:

The Adulteration Act of 1954 was authorized to forestall the corruption of food items and to save their immaculateness to ensure general wellbeing.

◉ The Standards of Weights and Measures Act, 1976:

It shields clients from the act of under-weighting or under-estimation.

◉ The Trade Marks Act, 1999:

This Act disallows the utilization of misleading blemishes on items.

◉ The Competition Act, 2002:

Purchasers are secured by the Act if organizations participate in dishonest activities.

◉ The Bureau of Indian Standards Act, 1986:

The Bureau’s primary errands are to foster quality principles for merchandise and to affirm them utilizing the BIS affirmation technique.

Must Read :7 Essential Elements of Valid Contract

► Definition, Meaning of Consumer

A customer is characterized as somebody who purchases or gets purchaser labor and products against an installment. It incorporates any individual who benefits from such administrations, yet it bars any individual who uses such administrations for monetary profit.

Under the Consumer Protection Act 2019, a customer is an individual who purchases any merchandise or profits administrations for a thought, which has been paid or guaranteed, or somewhat paid and mostly guaranteed, or under any plan of conceded installment.

► Rights of Consumer

  • Right to Safety
  • Right to be Informed
  • Right to Choose
  • Right to Seek Redressal
  • Right to Consumer Education
  • Right to be Heard

✔ Right to Safety Consumer Protection Act 2019

Consumers reserve the option to be shielded against things and administrations that are unsafe to their wellbeing and prosperity. The customers are noble to get quality items, and they can likewise request quality affirmation from the merchant for the equivalent. For example, ISI, FPO, AGMARK, Hallmark, and so forth are quality imprints for modern things, food items, farming items, gold individually.

✔ Right to be Informed

Before buying an item, the buyer has the privilege to get total data about it, in regards to the quality, amount, fixings, immaculateness, cost, and so forth

✔ Right to Choose

Consumers reserve the option to pick any item from the accessible choices in light of their inclinations. Thus no merchant has the option to impact the customer into buying a specific item through the unsatisfactory method

✔ Right to Seek Redressal

If an item or administration neglects to measure up to the customer’s assumptions or is risky, the buyer has the option to look for redressal. The buyer might be qualified for a substitution or fix of the issue, just as repayment for any misfortunes.

✔ Right to Consumer Education

Consumers reserve the option to learn and be all around informed all through their lives. He ought to be educated regarding his privileges and cures if the merchandise or administration doesn’t live up to his assumptions. The Indian government has incorporated shopper instruction in-school educational programs and is utilizing the media to teach purchasers about their freedoms. For instance, endeavors like Jaago Grahak Jaago is one such measure to instruct the shoppers

✔ Right to be Heard

The shopper has the privilege to give his perspective concerning the item and administrations, just as he has the option to be heard in such cases. Consequently, the customer has a privilege to document an objection assuming he feels that his freedoms have been abused. Likewise, different purchaser cells have been opened up in India to give them the option to be heard.

► Responsibility of Consumer

Customers have the accompanying liabilities:

  • Be Aware /learned
  • Normalized items
  • Adhere to Instructions
  • Careful Purchasing
  • Advocate for Yourself
  • Genuineness / Honesty
  • Cash Memo / Proof of transaction
  • Customer Societies
  • Make a move at whatever point required
  • Abstain from Littering

◉ Be Aware / Learned

Be proficient with regards to the various things available so you can settle on an educated and informed choice.

◉ Normalized items Consumer Protection Act 2019

Purchase just normalized items to guarantee quality. Search for the ISI blemish on electrical merchandise, the FPO name on food items, and the Hallmark on gems, in addition to other things.

◉ Adhere to Instructions

Follow the item’s directions and find out with regards to the dangers connected with it, then, at that point, use it securely.

◉ Wary Purchasing Consumer Protection Act 2019

Carefully read names at data on costs, net weight, fabricating, lapse dates, etc.

◉ Advocate for Yourself

Assert yourself to ensure that you get a fair deal and fair cost of the item.

◉ Genuineness Consumer Protection Act 2019

Be honest in communications and purchase just legitimate labor and products, along these lines deterring purchasing from merchants who follow deceptive strategies like dark promoting and accumulating.

◉ Cash Memo Consumer Protection Act 2019

When buying items or administrations, demand a money reminder. This will fill in as evidence of the exchange.

◉ Customer Societies Consumer Protection Act 2019

Establish purchaser social orders that will effectively partake in shopper training and insurance.

◉ Make a move at whatever point required

In case of imperfection like things bought or benefits got, document an objection with a suitable buyer discussion. Regardless of whether the aggregate included is unobtrusive, don’t spare a moment to make a move.

◉ Abstain from Littering Consumer Protection Act 2019

Respect and worth the climate, and keep away from any action that would antagonistically influence it.

► Ways & Means of Consumer Protection Act 2019

  • Self-guideline by organizations
  • Business affiliations
  • Purchaser Awareness
  • Shoppers Organizations
  • Government

✔ Self-guideline by organizations

Businesses that esteem corporate social obligation complies with moral standards and practices while working with clients.

✔ Business affiliations

The FICCI and the CII have set up sets of principles for its individuals to follow while connecting with customers.

✔ Purchaser Awareness

An all-around informed buyer will actually want to take a stand in opposition to any untrustworthy business exercises.

✔ Shopper Organizations

Consumer associations assume an imperative part in illuminating buyers about their freedoms and ensuring them.

✔ Government Consumer Protection Act 2019

The public authority shields buyers’ inclinations by building up different purchaser assurance guidelines.