HOW THE NEW CONSUMER PROTECTION ACT 2019, ENHANCES THE CONSUMER RIGHTS IN INDIA Bhavni Sahai Legal Article Sat, Dec 28, 2019, at ,09:14 PM The Consumer Protection Act, 2019 seeks to strengthen the rights of consumers through the Consumer Protection Bill, 2019 which was introduced in Lok Sabha by the Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan on July 8, 2019. The Indian Parliament, on 6 August 2019, passed this Bill which aims to provide the timely and effective administration and settlement of consumer disputes. The Consumer Protection Act, 2019 received the assent of the President and was published in the official gazette on 9 August 2019. The New Act seeks to replace the more than three decades old Consumer Protection Act, 1986. This prior legislation had been amended from time-to-time to bring it in accordance with changes brought about by economic liberalisation, globalisation of markets and digitalisation of products and services. The 2019 Act, has substantially enhanced the scope of protection afforded to consumers, by bringing within its purview advertising claims, endorsements and product liability, all of which play a fundamental role in altering consumer behavior and retail trends in the 21st century. SALIENT FEATURES OF 2019 Act: Broadening the definition of “consumer” by covering e-commerce transactions :The definition of “consumer” has been expanded to include persons who engage in offline or online transactions through electronic means or by tele-shopping or direct selling or multi-level marketing. The definition now provides consumers with a remedy in case of multi-level marketing. Thus, the seller at each level of multi-level marketing can be exposed to liability under CPA 2019 and not restricted to only the manufacturer of the product but all entities involved at various stages of production and marketing. Enhancement of Pecuniary Jurisdiction: Revised pecuniary limits have been fixed under the New Act. Accordingly, the district forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000 (Indian Rupees Ten Million). The State Commission can entertain disputes where such value exceeds INR 10,000,000 (Indian Rupees Ten Million) but does not exceed INR 100,000,000 (Indian Rupees One Hundred Million), and the National Commission can exercise jurisdiction where such value exceeds INR 100,000,000 (INR One Hundred Million). E-Filing of Complaints: The New Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. This is unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. The New Act also contains enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing. This is aimed to provide procedural ease and reduce inconvenience and harassment for the consumers. Establishment of Central Consumer Protection Authority: The New Act proposes the establishment of a regulatory authority known as the Central Consumer Protection Authority (CCPA), with wide powers of enforcement. The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. Product Liability: There was no separate legislation governing ‘product liability’ in India, though it was addressed under CPA 1986, if parties were included within the ambit of ‘consumer’. Insertion of “Product Liability” as a separate chapter in CPA 2019 and a new ground for filing a complaint has been one of the most significant additions to the act. Section 2(35) of CPA 2019 allows a person to make a claim of product liability against such manufacturer, seller or service provider for such defective products. Product liability means the responsibility of a product manufacturer or product seller, of any product or service, related to the product to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating to the product. Unfair Trade Practices: The New Act introduces a specific broad definition of Unfair Trade Practices, which also includes sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law. Penalties for Misleading Advertisement: The CCPA may impose a penalty of up to INR 1,000,000 (Indian Rupees One Million) on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 (two) years for the same. In case of a subsequent offence, the fine may extend to INR 5,000,000 (Indian Rupees Five Million) and imprisonment of up to 5 (five) years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to 1 (one) year. For every subsequent offence, the period of prohibition may extend to 3 (three) years. Provision for Alternate Dispute Resolution: The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them. So, according to 1986 act there were only 6 consumer rights: Right to Safety Right to be Informed Right to Choose Right to be Heard Right to Seek redressal Right to Consumer Education But, now in addition to the existing rights, there are five new consumer rights: Right to file a complaint from anywhere Right to seek compensation under product liability Right to protect consumers as a class Right to seek a hearing using video conferencing Right to know why a complaint was rejected