CONSUMER PROTECTION ACT,2019

SUBMITTED

BY:- SURUCHI KUMARI

BBA.LLB (2022-27)

ALLIANCE SCHOOL OF LAW

BENGALURU

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The New Consumer Protection Act of 2019: Your Defense
Against Scammers!

ABSTRACT
This title highlights the Consumer Protection Act, 2019, as well as how it
shields consumers from unethical firms. Also, it implies that the act is a better
version of the earlier one, making it more useful and effective in the present
market. The word "unscrupulous" implies that some companies may act
dishonestly or unfairly, hence the act is necessary to protect customers from
their conduct. The title of the Consumer Protection Act of 2019 is intended to
catch people's attention and make that point clear. It is a strong tool for
safeguarding consumers' rights.

INTRODUCTION
To protect consumers' interests and provide them with access to a trusted
procedure for addressing grievances and issues, Indian legislators established
the Consumer Protection Act, 2019. Aiming to modernise and enhance India's
consumer protection framework, the act replaced the previous Consumer
Protection Act, 1986. This research paper's goal is to evaluate the Consumer
Protection Act's provisions.

The Consumer Protection Act of 2019 is a comprehensive law intended to

protect the interests of Indian consumers. The Consumer Protection Act of 1986
was replaced by this law, which has a number of important modifications aimed
at enhancing consumer protection.

RESEARCH OBJECTIVE
1. To be aware of the different components of empowerment.

2. To understand what customer empowerment is and what it means.

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3. To look at the cases that were filed and won.

4. To provide suggestions for enhancing consumer protection.

RESEARCH QUESTION

Does the 2019 New Consumer Protection Act help to protect consumers'
interests from unfair business practises?

Below are a few of the key provisions of the Consumer

Protection Act of 2019:
The Central Consumer Protection Authority (CCPA) is established by the
statute as a regulatory body with the power to investigate complaints, bring
class actions, and sanction companies that violate consumers' rights.

The requirements of the act now apply to direct selling companies and e-
commerce platforms, and they are now accountable for the sale of counterfeit
goods, dishonest advertising, and unfair business practises.

The act introduces the idea of "product responsibility," which holds producers,
suppliers, and sellers responsible for any harm consumers may experience as a
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result of inferior goods or services.The statute strongly emphasises mediation
as a quick and affordable way to resolve consumer complaints, together with.

5 Section 34(1) of the Consumer Protection Act, 2019

6 Section 47(1)(a)(i) of the Consumer Protection Act, 2019

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Outline of the powers granted under the Consumer
Protection Act
A number of au2thorities created by the Act are solely responsible for
defending consumer rights. It has established Consumer Protection Councils
under Section 3 even at the Central, State, and District levels. These councils
are solely in charge of advising the Central Government, State Government, and

7 Section 2(28) of the Consumer Protection Act, 2019

8 Section 24 of the Consumer Protection Act, 2019

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District Authorities on how to effectively advance and defend consumer rights
at various levels.

In accordance with Section 10 of the Act, a Central Consumer Protection

Authority has been created to oversee matters relating to consumer rights
viol3ations, unfair business practises, and misleading or false advertising that is
detrimental to the interests of the public and consumers, as well as to promote,
safeguard, and uphold the rights of consumers as a whole.

The Act also establishes a District Consumer Disputes Redressal Commission

(or District Commission) under Section 28. Any item sold, delivered, or agreed
to be sold, delivered, or any service supplied, agreed to be provided, may be the
subject of a complaint from a dissatisfied customer.

OBTAIN CONSUMER PROTECTION RIGHT NOW

Those Who May Request Redress The 2019 Consumer Protection Act

(a)To whom such products are sold, delivered, or agreed to be sold,

delivered, or provided, or to whom such service is provided, or to

whom such service is agreed to be provided; or

(b) who assert that such goods or services have been the subject of

unfair trade practises;

(c) Any reputable consumer organisation, whether or not the

Consumer is a member of the organisation;

(d) One or more consumers, with the authorization of the District

Commission, acting on behalf of or in the best interests of all

consumers who share the same interest.

Consumer Protection Act Penalties for 2019

The Act's effective penalties serve to safeguard the rights of consumers who
approach these forums. For instance, if a manufacturer or service provider

9 Section 15 of the Consumer Protection Act, 2019

10 Section 17 of the Consumer Protection Act, 2019

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e4mploys a deceptive or misleading marketing advertisement to trick a
Customer, they risk two years in jail and a fine of 10 lakh.

If a consumer experiences severe harm as a result of adulteration, the

manufacturer of the product can also be punished with seven years in prison and
a fine that can reach 5 lakh.

These penalties are outlined in the Act in order to effectively deter producers or
manufacturers from employing dishonest practises to boost their revenues.

Advantages of the Consumer Protection Act for Consumers include:

The marketing of products and services that pose a risk to property and human
life is prohibited.

According to the statute, consumers are entitled to quick, easy, and affordable
remedies.

The freedom of the consumer to choose their own products is assured.

The public can access machinery for effective dispute resolution.

The preservation of certain rights is the responsibility of the authorities

established under the statute. such as the rights to safety, to freedom of choice,
to fair hearing, and to consumer e ducation.

The Act's sanctions aid in limiting arbitrary business practises in India. Also, it
promotes mutual trust in the purchase of goods and services in a market like
India.

There are provisions in the Act concerning product liability as well. The service
provider is required to reimburse the customer if the product is flawed.

Additionally, if the goods or services result in harm or damage to the consumer,

the producer or service provider is required to make up for it. This can be the
result of subpar service or a manufacturing flaw.

The Indian Parliament passed the Consumer Protection Act, 1986 (COPRA),
which went into effect in December of that same year. The Act was created to

11 Section 20 of the Consumer Protection Act, 2019

12 Section 10 of the Consumer Protection Act, 2019

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safeguard the interests of consumers and to create state agencies to handle any
issues that may come from them.

The Act specifies three different types of consumer courts that may be
established, and they are as follows:

District Consumer Dispute Resolution Forum (DCDRF) 1.

When the appellants' claimed compensation does not exceed 20 lakh rupees, the
DCDRF handles consumer disputes at the district level.

The SCDRC 2. (State Consumer Dispute Redress Commission)

Consumer disputes where the appellants' requested compensation exceeds Rs.

20 lakhs but is less than Rs. 1 crore are handled by the SCDRC, a state-level
organisation.

NCDRC stands for the National Consumer Dispute Resolution Commission.

The NCDRC is the highest court for consumer disputes where appellants
demand compensation of more than Rs. 1 million.

Jurisdiction:

The hierarchy of the courts serves as the foundation for the jurisdictions of the
courts.

Firstly, monetary jurisdiction

The District Consumer Dispute Redressal Forum is authorised to adjudicate

financial disputes involving up to Rs. 20 lakhs.

When a claim exceeds Rs. 20 lakh but falls under Rs. 1 crore, it falls under the
pecuniary jurisdiction of the State Consumer Dispute Redressal Commission.

When a claim exceeds one crore rupees, it falls under the pecuniary jurisdiction
of the Nation Consumer Dispute Redressal Commission.

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Geographical Jurisdiction:

Once monetary jurisdiction has been established, territorial jurisdiction must be

considered. In the court located within such local limits, a complaint may be
lodged if;

when the opposing party chooses to live or work within such municipal
boundaries.

where the action's cause is found.

You can utilise the same laws that apply to contract law to determine where the
cause of action originates.

jurisdictional boundaries when an internet purchase was made.

Online transactions effectively undermine geographical jurisdiction. Territorial

jurisdiction in this case is applicable in any of the various locations where the
cause of action arises, including the appellant's residence.

Third Appellate Court:

A consumer has the right to appeal a district forum judgement to the state
commission if they are not happy with it.

The consumer may appeal to the national commission if they are unhappy with
the state commission's judgement.

A consumer may file an appeal with the Supreme Court if they are dissatisfied
with the national commission's ruling.

Composition:

Each court's makeup is outlined in the Consumer Protection Act of 1986.

1.District Consumer Dispute Resolution Forum

Each district forum must include:

Its President shall be a person who is, or has been, or is qualified to be, a
District Judge; two other members, one of whom shall be a woman, shall be
persons of ability, integrity, and standing, and shall have sufficient knowledge
of, or experience with, problems relating to, commerce, accountancy, industry,
public affairs, or administration.

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2. State Consumer Dispute Resolution Mechanism:

Each State Commission will be made up of:

a person selected by the State Government who is currently or has previously

served as a High Court Judge and who will serve as its President:

With the caveat that no appointment made pursuant to this provision may be
made without first consulting the Chief Justice of the High Court;

Two additional members, one of whom must be a woman, who must be people
of ability, integrity, and standing and who have sufficient knowledge of,
experience with, or demonstrated capacity in dealing with issues relating to
economics, law, commerce, accountancy, industry, public affairs, or
administration:

With the caveat that each appointment made in accordance with this clause must
be approved by the State Government following the advice of a selection
committee made up of the people listed below:

(i)The Chairman of the State Commission

(ii)The Secretary of the State's Department of Law

(iii)The Secretary in charge of the State's Department responsible for

consumer affairs.

3.National Consumer Dispute Redressal Forum.

The members of the National Commission are:

A person who is currently serving as or has served as a Supreme Court Judge, to

be chosen by the Central Government, who will serve as its President:

With the caveat that no appointment under this paragraph may be made without
first consulting India's Chief Justice;

Four more5 members, one of whom must be a woman, must be people of

competence, honesty, and standing who have sufficient understanding of or

14 Section 2(9) of the Consumer Protection Act, 2019

15 Section 2(16) of the Consumer Protection Act, 2019

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experience dealing with issues connected to economics, law, commerce,
accounting, industry, public affairs, or administration.

With the caveat that any appointments made pursuant to this section must be
approved by the Central Government upon the advice of a selection committee
made up of the following individuals:

A Supreme Court judge shall be proposed for appointment by the Chief Justice
of India.

Members include the Secretary of the Department of Legal Affairs and the
Secretary of the Department in charge of consumer affairs in the Indian
government.

Powers and Activities

Section 4 of the statute lists the commission's duties and authorities. The
following are the functions listed in Section 4(1).

1. Functions:

serving as a ministers' advisor on basic consumer problems.

developing and putting into effect consumer protection policies

Investigate the complaint of a dissatisfied customer over the sale of goods or the
provision of services to ascertain whether the complaining customer was truly
dissatisfied.

to conduct an independent investigation.

Encourage the growth of groups created to safeguard consumers

gather, examine, and publish data on any industry or business.

Promote consumer rights awareness

Dispute resolution between customers and suppliers

carry out the duties as the minister may occasionally specify.

2. Beliefs:

https://www.mondaq.com/india/dodd-frank-consumer-protection-act/993392/consumer-protectionact-
2019-promising-transparency-and-choices-to-consumers

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The consumer commission has the authority to take whatever action that it
determines is required for it to fulfil and carry out its duties. It is free to engage
in any activity in this regard, either alone or in collaboration with another
person or body, that it deems advantageous or expedient for carrying out its
duties or to be ancillary to their appropriate performance.

2019 Consumer Protection Act's effectiveness

In terms of its scope and coverage, the Consumer Protection Act, 2019,
represents a major upgrade over the last statute. The creation of the CCPA and
CDRCs has streamlined the consumer dispute resolution procedure and offers
quick settlement of complaints. Consumer protection from harm brought on by
dangerous products and dishonest business activities is made possible by the
act's provisions on product responsibility and consumer rights.

Yet, how well the law is put into practise will determine how effective it is.
Effective enforcement of the law is required to make sure that businesses abide
by the rules and that consumers are aware of their rights. The delay in
establishing the CCPA and the CDRCs has hindered the handling of consumer
complaints, which has raised some worries.

Consumer organisations' function

The interests of consumers are protected and their rights are promoted through
consumer organisations. They assist in educating customers about their rights
and in giving them the knowledge and assistance they need to register
complaints. Consumer advocacy groups work with legislators to improve the
legislation and regulations to better protect consumers.

Conclusion

The 2019 Consumer Protection Act is a significant piece of legislation that

works to safeguard consumers' interests and give them access to a reliable
process for resolving complaints and grievances. Consumers' protection from
dishonest businesses is improved by the act's provisions on product liability,
consumer rights, and the creation of the CCPA and CDRCs. Yet how wel l the
law is put into practise and upheld will determine how effective it is. Consumer
advocacy groups are essential for defending consumers' rights and advancing
their.

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