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The Consumer Protection Bill, 2019
August 13 , 2019
1847 days
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- The Consumer Protection Bill, 2019 was passed by both Houses of Parliament. It replaces the Consumer Protection Act, 1986.
Who’s a Consumer?
- A consumer is defined as a person who buys any good or avails a service for a consideration.
- It does not include a person who obtains a good for “resale” or a good or service for commercial purpose.
- It covers transactions through all modes - offline, online through electronic means, teleshopping, multi-level marketing or direct selling.
Rights of Consumers
- 6 Consumer’s rights have been defined in the Bill including the right to
- Be protected against marketing of goods and services which are hazardous to life and property
- Be informed of the quality, quantity, potency, purity, standard and price of goods or services
- Be assured of access to a variety of goods or services at competitive prices
- Seek redressal against unfair or restrictive trade practices.
Central Consumer Protection Authority
- A Central Consumer Protection Authority will be set up to promote, protect and enforce the rights of consumers.
- It will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.
- It may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.
- It can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year.
Consumer Disputes Redressal Commission (CDRC)
- CDRC will be set up at the district, state, and national levels.
- Appeals at district level redressal commission can be escalated till national level.
- Final appeal will lie before the Supreme Court.
- Complaints can be made in relation to
- Unfair or restrictive trade practices
- Defective goods or services
- Overcharging or deceptive charging
- Offering of goods or services for sale which may be hazardous to life and safety.
Jurisdiction
- The District CDRC will entertain complaints where value of goods and services does not exceed Rs.1 crore.
- State CDRC will do from 1 crore to 10 crores
- National CDRC will deal with complaints of over 10 crores value.
Product liability
- Product liability means the liability of a product manufacturer / service provider / seller to compensate a consumer for any harm or injury caused by a defective good or deficient service.
- To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Bill.
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