Consumer Protection –Changes Under 2019 Act

The globalization and industrialization has resulted into a huge market of goods and services and vast expansion of trade and businesses due to which of which a number of consumer goods have appeared in the market to fulfil the requirements of the consumers and many services have been made available to the consumers like insurance, transport, electricity, housing, entertainment, finance and banking.

Thus, a well organised sector of sellers and traders with improve expertise of markets has come into existence, thereby influencing the relationship between the traders and the consumers making the principle of consumer sovereignty almost inapplicable.

In order to protect the customers The Consumer Protection Bill, 1986 was enacted but it was not found sufficient in changing circumstances of market where e-commerce sites has gradually captured the market thus, in order, to provide for better safeguard of the interests of consumers and for the purpose, to make provision for the online complaint registration mechanism, consumer protection act, 2019 was introduced.

This article ,provide a insight on changes brought by the recent act i.e. consumer protection act.2019 –

Firstly it is important to define what is consumer-

Under section 2(7) of the consumer protection act, 2019 it has been defined as person who buys any goods or hires or avails any services for consideration for its personal use and not for commercial purpose. What is important here is that consumer protection act, 2019 also added the online and e-transaction market i.e. "buys any goods" and "hires or avails any services" includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing.

This definition will become important in case where complain has to be made and who can be complainant. Further, who can complain what activities of traders will amount to constitute a complaint is

Following person can make complain-

"Complainant" means—

·         A consumer; or

·         Any voluntary consumer association registered under any law for the time being in force

·         The Central Government or any State Government; or

·         The Central Authority; or

·         One or more consumers, where there are numerous consumers having the same interest; or

·         In case of death of a consumer, his legal heir or legal representative; or

·         In case of a consumer being a minor, his parent or legal guardian;

Under Section 2 (6) of New Act, Complaint is defined as any allegation in writing, made by a complainant for obtaining the relief provided under the act in case of unfair trade practices, defects in goods, deficiency in service, excess price of goods and services, selling of hazardous goods. Complainant can also claim product liability against the manufacturer or service provider.

The New Act introduces the provision for "Product Liability" under which manufacturer/ service provider is liable to compensate consumers in case of injury caused due to a manufacturing defect/ deficient service.

Regulatory Bodies/ Advisory Bodies/Authorities under the New Act:

In the New Act, Central Protection Councils are recognised as advisory bodies to protect and promote the Consumer Rights, which are established at District, State and Central level.

Further, the New Act establishes "Central Consumer Protection Authority (CCPA)".The establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.  The CCPA will be 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.

 Alternate Dispute Resolution mechanism of Mediation has been provided in the new Act.  This will simplify the adjudication process.  A complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and parties agree for it. Mediation will be held in the Mediation Cells to be established under the aegis of the Consumer Commissions.  There will be no appeal against settlement through mediation.

The District Commission, State Commission and National Commission are the authorities for final adjudication of the matter. If the complainant or opposite party failed to come to a settlement before the CCPA/Mediation Cells, then the complaint can be further dealt by District, State or National Commission.

Institution of Consumer Complaint:

The New Act introduces the "Online Filing" of Consumer Complaint.

 Complaint can be submitted in the form of Writing or through Online.

Registration of Online Complaint

• Aggrieved Party can register complaints on https://consumerhelpline.gov.in/ .
• Complaints can be registered by filling essentials details like name, email, contact number & password.
• Complainant will receive login credentials though which he can register a complaint by uploading required documents.
• There are different portals available for different sectors.
• A consumer can also register complaints through Mobile Apps namely the NCH app, Umang App or Consumer App.
• Post-registration of the complaint, complainant will be provided with a unique identification number through which he can determine the status of the complaint.
• Fees for the complaint can be submitted through online payment portal.

Step 4: (Contents of the Complaint): Complaint should contain the following information

• Name and complete details of complainant and opposite party.
• Date and time of purchase of goods/ availing of services.
• Necessary Facts of the case establishing the cause of action.
• Particulars of dispute: Defect in goods/ deficiency in service.
• Relief sought
• Copies of the documents supporting the contention of the complainant. (Invoice, Warranty receipt, etc)

Step 5 (Limitation for filing Complaint/Appeal): The Complaint before the District Commission needs to be filed within the 2 years from the date of dispute. Further, appeal before State Commission to be filed within 45 days from the date of order of District Commission. Further, appeal to the National Commission should be made within 30 days from the date of receipt of the order from the lower forum.

Step 6 (Court Fees): The Court fees have to be paid in the form of Demand Draft, in respect of the Registrar of respective Commissions. In respect of the National Commission, the appellant has to make the Demand Draft of Rupees 5,000/-.

Conclusion

The Consumer Protection Act, 2019 comes in to force from 20^th July 2020 this act will be more dynamic and powering his new Act will empower consumers and help them in protecting their rights through its various notified Rules and provisions like Consumer Protection Councils, Consumer Disputes Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale of products containing adulterant / spurious goods. online form of complaint, is welcoming step from the government. The online procedure can be considered as one of the welcoming and successful procedure, especially during the time of the pandemic. Further, the addition of alternative dispute resolution mechanism is the move towards the attainment of peaceful settlement between the parties, which will have greater impact on both the consumers and service providers in long term. The Dispute Resolution Mechanism can save the parties from long and tiresome procedure, by helping them to find the solution at the initial stage itself.