The Indian legislature has enacted the new Consumer Protection Act, 2019, which replaces the decade-old Consumer Protection Act. The new legislation contains structural and procedural reforms to the previous law, intending to eradicate the shortcomings of the 1986 Act.<\/p>\n
In order to have a vibrant economy, consumers’ rights must be protected. The Consumer Protection Act of 1986 addressed customers’ concerns and safeguarded their interests. It was a commendable step at the time, and it was modified from time to time. However, the country’s three-decade-old law has not kept up with the current market and digital technological advancement.<\/p>\n
With the enactment of the Consumer Protection Act, 2019, a new era in Indian consumer rights has started. Now, consumers are more powerful than before. The Consumer Protection Act of 2019 is notable for establishing a Central Consumer Protection Authority, which serves as a regulatory authority to “promote, protect, and enforce consumer rights as a class.” The recent Act also includes provisions for penalties for unfair trade practices and deceptive ads and a slew of other modifications, such as safeguarding E-commerce, to keep consumer rights current with market developments.<\/p>\n
According to Section 2(7) of the 2019 Act, a consumer is “any person who buys products or receives services for a consideration” and includes “any user,” except “any person who has received such services or goods for resale or commercial use.” According to the definition’s explanation, “buys any goods” and “hires or avails any services” incorporate all online transactions done via electronic means, as well as direct selling, e-shopping, and multi-level marketing. Online transactions are a unique aspect of this Act, which was established in response to the rising e-commerce industry and technological advancements.<\/p>\n
Unfair trade practice is defined under Section 2(47) of the Consumer Protection Act of 2019. This concept covers a wide spectrum of unscrupulous or misleading practices used to promote the purchase, sale, or usage of any products or services. This involves making deceptive assertions about products and services, making false promises, providing warranties that aren’t based on adequate testing, and generally deceiving people.<\/p>\n
The concept of an unfair contract was also included in the 2019 Act. Section 2(46) defines an “unfair contract” as any contract between a consumer and a manufacturer, service provider, or trader whose conditions result in a substantial change in the Consumer\u2019s rights under the Act.<\/p>\n
Under the Act, consumers have six primary rights, which are listed as follows:<\/p>\n
The establishment of the Central Consumer Protection Authority under Chapter III is one of the significant aspects of the 2019 Act. The Authority was established to advocate, preserve, and enforce consumer rights as a group. The authority has the jurisdiction to issue safety notifications, product recalls, prohibit unfair and restrictive trade practices, refund purchase prices, and impose fines for deceptive and misleading advertising. The authorities may conduct Suo Motu proceedings under Section 18 to inquire about or investigate violations of consumer rights or unfair trade practices. In addition, the authority has the power to file consumer complaints and intervene in any proceedings before the Consumer Commission.<\/p>\n
New Act encompasses the issue relating to Misleading Advertisements. The repealed Act does not address the issue of misleading and fraudulent advertising. Misleading advertising is defined in Section 2(28) of the Act as any advertisement that provides a false description of a product or service, provides a false guarantee, conveys express representation constituting unfair trade practice, or intentionally withholds essential information about the product.<\/p>\n
Anyone who publishes false and misleading ads is subject to imprisonment or a penalty of up to ten lakh rupees under Section 21(4) of the Act. In addition, Section 21 (3) of the CCPA specifies that the endorser of any such misleading and fraudulent ads might be barred from endorsing any other goods or services for a year. The publisher of any deceptive ads is also responsible for neutralizing the impact of the advertisements.<\/p>\n
The High Court passed an interim order restraining Zydus from telecasting its advertisement comparing Complan to Horlicks on the grounds that the same was misleading and disparaging.[2]<\/sup><\/a><\/p>\n One of the notable and crucial moves incorporated in the 2019 Act is product liability. Chapter 10 deals with product liability. If a complainant is aggrieved as a result of a defective product or service, he may file a product liability claim against the manufacturer, service provider, or seller.<\/p>\n A product manufacturer will be held accountable under Section 84 of the Act if the product has a manufacturing issue, is defective in design, does not meet the manufacturing requirements, does not comply with the implied guarantee, and does not provide necessary instructions for proper product use.<\/p>\n In a product liability case, Section 85 of the Act addresses the service provider’s responsibility. To be liable under this section, the service provided must be deficient, faulty, inadequate, or imperfect, or negligence withholding any information that would be responsible for the injuries caused, as well as a lack of adequate warnings and instructions, and compliance with an express warranty or contractual terms.<\/p>\n <\/p>\nThe concept if Product Liability<\/strong><\/h2>\n
Jurisdiction<\/strong>[3]<\/sup><\/strong><\/a><\/h2>\n