Features of the new Consumer Protection Act, 2019

Features of New Consumer Protection Act, 2019

• Establishment of Consumer Disputes Redressal Commissions – New Act has the provision of the establishment of the Consumer Disputes Redressal Commissions (CDRCs) at the national, state and district levels to entertain complaints related to overcharging or deceptive charging, unfair or restrictive trade practices, sale of hazardous goods and services which may be hazardous to life, sale of defective goods or services.

• Consumer Re-Defined – New Act has widened the definition of ‘consumer’. The definition now includes any person who buys any goods, whether through offline or online mode/transactions, electronic means or by teleshopping or direct selling or multi-level marketing. 

• Ease of Filing Complaint – New Act provides flexibility to the consumer to file complaint with the jurisdictional consumer forum located at the place of residence or work of the consumer. 

• Electronic Filing – New Act contains enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.

• Enhanced Liability – New Act has introduced the concept of product liability and brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation. 

• Revisional Power of District Commission – Under the New Act, District Commission shall have the power to review any of the order passed by it if there is an error apparent on the face of the record, either of its own motion or on an application made by any of the parties within thirty days of such order.

• Appeal only after deposit of 50% amount – New Act provides that no appeal by a person, who is required to pay any amount in terms of an order of the District Commission, shall be entertained by the State Commission unless the appellant has deposited fifty per cent of the amount/compensation.

• Establishment of the Central Consumer Protection Authority (CCPA) – New Act provides for establishment of Central Consumer Protection Authority (CCPA) which will protect, promote and enforce the rights of consumers. The CCPA will regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights. 

• Power of CCPA to impose Penalty – The CCPA will have the right to impose a penalty on the violators and passing orders to recall goods or withdraw services, discontinuation of the unfair trade practices and reimbursement of the price paid by the consumers.

• Enhanced Pecuniary Jurisdiction – New Act has enhanced the pecuniary jurisdiction. District Commission – Cases value upto 1 Crore State Commission – Cases Value above 1 Crore to 10 Crores National Commission – Cases having value motre than 10 Crores.

• Alternate Dispute Resolution mechanism – New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker.