New Consumer Protection Act, with extra enamel and masking e-commerce, comes into pressure

Vibha Sharma

Tribune News Service

New Delhi, July 20

The Consumer Protection Act, 2019, empowering shoppers and in search of to revamp the method of administration and settlement of client disputes with strict penalties, together with jail time period for adulteration and deceptive ads by companies and punishment for manufacture or sale of merchandise containing adulterant or spurious items, got here into pressure from right this moment.

It proposes establishing of a Central Consumer Protection Authority (CCPA) to advertise, defend and implement the rights of shoppers as a category. The CCPA would make interventions to stop client detriment arising from unfair commerce practices. The company may provoke class motion, together with imposing recall, refund and return of merchandise.

The guidelines additionally specify the duties and liabilities of e-commerce entities (Market place and Inventory Model) and sellers on market place e-commerce entities.


• The CP Act 1986 — single level of entry to justice, which is time consuming. Additional swift govt cures offered by way of CCPA

• Deterrent punishment to test deceptive ads and adulteration of merchandise

• Product legal responsibility provision to discourage producers and repair suppliers from delivering faulty merchandise or poor companies

• Ease of approaching Consumer Commissions and simplification of adjudication course of

• Scope for early disposal of instances by way of mediation

• Provision for guidelines for brand new age client points: e-commerce & direct promoting

Every e-commerce entity is required to offer particulars about it on its platform. “It shall acknowledge the receipt of any consumer complaint within forty-eight hours and redresses the complaint within one month from the date of receipt.”

They are additionally required to offer info referring to return, refund, trade, guarantee and assure, supply and cargo, modes of cost, grievance redressal mechanism, cost strategies, safety of cost strategies, charge-back choices, and so forth.

“A seller on a marketplace will provide all relevant details about the goods and services offered for sale, including country of origin, which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage,” it says.

Salient options of the Act embody institution of the CCPA, empowered to conduct investigations into violations of client rights and institute complaints and prosecution, order recall of unsafe items and companies, order discontinuance of unfair commerce practices and deceptive ads, impose penalties on producers/endorsers/publishers of deceptive ads.

The new Act gives for simplifying the patron dispute adjudication course of within the client commissions, which embody, amongst others, empowerment of the State and District Commissions to evaluation their very own orders, enabling a client to file complaints electronically and file complaints in client commissions which have jurisdiction over the place of his residence, videoconferencing for listening to and deemed admissibility of complaints if the query of admissibility isn’t determined throughout the specified interval of 21 days.

Mediation as an Alternate Dispute Resolution mechanism has been offered within the new Act. This will simplify the adjudication course of. A criticism will probably be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and events agree for it. Mediation will probably be held within the Mediation Cells to be established below the aegis of the Consumer Commissions. There will probably be no attraction towards settlement by way of mediation.

The New Act introduces the idea of product legal responsibility and brings inside its scope, the product producer, product service supplier and product vendor, for any declare for compensation.

The Act gives for punishment by a reliable courtroom for manufacture or sale of adulterant/spurious items. The courtroom might, in case of first conviction, droop any licence issued to the particular person for a interval of as much as two years, and in case of second or subsequent conviction, cancel the licence.

The Central Consumer Protection Council Rules: It gives for structure of the Central Consumer Protection Council, an advisory physique on client points, headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 different members from totally different fields. The Council, which has a three-year tenure, could have Minister-in-charge of client affairs from two States from every region- North, South, East, West, and NER. There can be provision for having working teams from amongst the members for particular duties.

It gives for the eligibility standards for appointment of President and Members of the State Commission and the District Commission. For appointment as President of State Commission, an individual must be or ought to have been a High Court choose. For appointment of member in State Commission, an individual ought to have 10 years’ expertise as presiding officer of a district courtroom or of any tribunal at equal degree or mixed service as such in district courtroom and tribunal or twenty years’ expertise in client affairs, legislation, public affairs, administration, economics, and so forth. The minimal age for appointment as a member will probably be 40 years.

For appointment as president within the District Commission, an individual must be or ought to have been or must be certified to be, a District Judge. For appointment as a member in District Commission, the particular person shouldn’t be lower than thirty-five years of age, have a bachelor’s diploma from a recognised University and haven’t lower than fifteen years’ expertise in client affairs, legislation, public affairs, administration, economics, commerce, trade, finance, and so forth.

Appointment of president and members will probably be on the suggestions of the Selection Committee consisting of Chief Justice of the High Court or his nominee, Consumer Secretary and nominee of the Chief Secretary. The time period of workplace of president and member can be 4 years or as much as the age of sixty-five years, whichever is earlier.

As per these Rules there will probably be no charge for submitting instances as much as Rs 5 lakh. There are provisions for submitting complaints electronically, credit score of quantity as a consequence of unidentifiable shoppers to Consumer Welfare Fund (CWF). The State Commissions will furnish info to Central Government on a quarterly foundation on vacancies, disposal & pendency of instances & different issues.

Each of the Consumer Commissions could have a Mediation Cellv headed by president. These Model Rules are to be adopted by the State Governments.

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