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

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