CONSUMER PROTECTION ACT
Consumer Protection Act, 1986 Act 1986
➢ provided for a three-tier consumer dispute redressal machinery at the National (NCDRC), State ( State Commissions) and District levels ( District Fora)
SALIENT FEATURES OF Consumer Protection Act, 2019
- Consumer Protection Councils
- Central Consumer Protection Authority (CCPA)
- Simplified Dispute Resolution Process
- Mediation
- Product Liability
- Rules on e-commerce and direct selling
- Penalty for adulteration of products/spurious goods
CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)
- To provide relief to a class of consumers
- Empowered to –
➢ Conduct investigations into violations of consumer rights and institute Complaints / Prosecution
➢ Order recall of unsafe goods and services
➢ Order discontinuance of unfair trade practices and misleading advertisements
➢ Impose penalties on Manufacturers/Endorsers/Publishers of Misleading Advertisements
- Gazette Notification for establishment of CCPA under publication
SIMPLIFIED DISPUTE RESOLUTION PROCESS
- Deemed admissibility after 21 days of filing
- Empowerment of Consumer Commissions to enforce their orders
- State Commission & District Commission can now review their own orders
- Appeals only on question of law after second stage
- Ease of approaching Consumer Commissions
➢Filing from place of residence/work
➢E-filing
➢ Videoconferencing for hearing
MEDIATION
- An Alternate Dispute Resolution (ADR) mechanism
- Reference to mediation by Consumer Commissions wherever scope for early settlement exists and parties agree for it.
- Mediation Cells to be attached to Consumer Commissions
- Panel of mediators to be selected by selection committee consisting of the President and a member of Consumer Commission.
- Mediation to be held in consumer mediation cell
- No appeal against settlement through mediation
PRODUCT LIABILITY
- A manufacturer or product service provider or product seller to be responsible to compensate for injury or damage caused by defective product or deficiency in services
- Basis for product liability action –
➢ Manufacturing defect
➢ Design defect
➢ Deviation from manufacturing specifications
➢ Not conforming to express warranty
➢ Failing to contain adequate instructions for correct use
➢ Service provided-faulty, imperfect or deficient
BENEFITS TO CONSUMERS
- The CP Act 1986- single point of access to justice, which is time consuming. Additional swift executive remedies provided through CCPA
- Deterrent punishment to check misleading advertisements and adulteration of products
- Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services
- Ease of approaching Consumer Commissions and Simplification of adjudication process
- Scope for early disposal of cases through mediation
- Provision for rules for new age consumer issues: e-commerce & Direct selling
RULES & REGULATIONS
Rules
- General Rules
- Central Consumer Protection Council Rules
- Consumer Disputes Redressal Commissions Rules
- Appointment of President & Member in State/District Commission Rules
- Mediation Rules
- Model Rules for States
- E-Commerce Rules
Regulations
- Consumer Commission Procedure Regulations
- Mediation Regulations
- Administrative control over State Commission & District Commission Regulations
