On July 20th the Consumer Protection Act, 2019 comes into force in India after notification by the Indian government. The Act replaced the Consumer Protection Act, 1986.
At the heart of the Act is to protect and enforce the rights of consumers by endowing authorities with greater power to enforce regulations for timely and effective administration and settlement of consumers’ disputes. The Act also seeks to hold manufacturers accountable for the quality of products they manufactured or sold. It contains provisions relating to e-commerce websites, complaint redressal, Consumer Protection Authority for advertisements, among others. Stricter penalties and/or imprisonment have also been added to most of the provisions in the Act.
The new Act is significant progress in India as it not only provides greater protection for consumers but also creates greater accountability for manufacturers, distributors, and advertisers – further enforcing the pillars of regulatory compliance in India.
The production and sale of sub-standard products in India that are unsafe, an issue which many companies have raised over the years, would also be addressed by the introduction of the new Act. From the global perspective, the new Act would help in raising the standard of goods produced in India, further adding to the appeal of the Indian market to foreign companies and investors.
Several Provisions under the CCPA, 2019:
Redressal Mechanism:
- Creation of the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce the rights of consumers.
- Consumers can now lodge a complaint in the city he/she resides
- No fee for filing cases of up to Rs 5 lakh
- Consumers do not require a lawyer to represent their cases
Manufacturers/Producers/Sellers:
- Consumers can take manufacturers, sellers, or distributors to court for selling defective and adulterated products or services, or when consumers are injured as a result of using such products.
- Misleading advertisement is punishable by up to 10 lakh rupees and imprisonment for up to two years.
E-Commerce:
- Mandatory acknowledgment of consumer complaint receipt within forty-eight hours and the complaint must be redressed within one month.
- Mandatory listing of “country of origin” for products sold
Click on for the official government notifications on the Act: Link