For any clarification or further information, please contact: The firm, Clasis Law is a full service Indian law firm that is international in vision, scope, experience and capability. This Act is first of its kind which imposes liability on the endorser also. It is defined under section 2(34) of the Act as the responsibility of the “Product manufacturer” or “Product Seller” or “Product Service Provider” to compensate for any harm or injury caused to the consumer by any defective product sold or manufactured or any deficiency in service. [ii] UNCTAD, World Consumer Protection Map, (July 7, 2017), [iv] Statistics on consumer protection available at http://ncdrc.nic.in/stats.html (Last Visited – April 4, 2020), [viii] Order dated 31/10/2015 in case no. Changes in India’s Consumer Protection Act 2019. to receive all of the latest news from the world of Law. E-commerce has been included in the CP Act. In this regard, The CP Act has also broadened the definition of “Consumer” to include a person who “buys any goods” and “hires or avails any services” through offline or online transactions, such as electronic means or by teleshopping or direct selling or multi-level marketing. However as per of NCDRC there at present more than 488009 [iv] cases pending collectively in all consumer forums. Due to the paucity of laws to protect consumers online the economic interest of consumers was being adversely affected. 53/2013 by the  District Forum, Delhi, [ix] Editorial “Case against Maggi: Supreme Court refuses Nestle’s plea” The Economic Times, December 12, 2015, [x] Government of India “9th Report of standing Committee on Food, Consumer Affairs And public Distribution” ( Ministry of, Consumer Affairs, Food And public Distribution), pg. The Consumer Protection Act, 2019 (‘New Act’) received the assent of the President of India and was published in the official gazette on 9th August 2019. Appointment of former CJI to Rajya Sabha: A Critical Analysis, US Supreme Court: Composition, Appointment, Condition of Services and Impeachment. The party aggrieved by the orders of the Central Authority can make an appeal against such order under section 24  in the National Commission within 30 days from the date of receipt of such order. Also, it will alleviate the burden on Consumer forums and assist them in disposing of pending cases effectively. On July 20, 2020, new consumer protection act, 2019 came into effect by replacing the old one i.e. The object of Central, State and District Consumer Protection Councilshas been changed from promoting and protecting the rights of consumers to rendering advice on promoting and protecting the rights of consumers. The Consumer Dispute Redressal Commissions by the virtue of section 37, 49, and 59 of the Act can refer any matter to mediation at any stage on the concurrence of both the parties if there exists an element of the settlement. It was passed by Lok Sabha on 30 July 2019 and later passed in Rajya Sabha on 6 August 2019. The 2019 Consumer Protection Act brings about fundamental changes to the existing 1986 legislation. A product liability action may be brought against a product manufacturer or a product service provider for any harm caused to a consumer on account of a defective product. The Indian Parliament passed the Bill on 6 th August 2019 and the Consumer Protection Act 2019 (New Act) received the assent of the President of India and was published in the official gazette on 9 August 2019. The Consumer Protection Act, 2019 is introduced to overcome the challenges in enforcing the rights of consumers, which have been imposed by the new market. It’ll replace the Consumer Protection Bill, 1986. The Consumer Protection act , 2019 was introduced in the Lok Sabha on 8 July 2019 by the Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan. By Sehar Rauf . With this motive, the Consumer Protection Act, 2019 (“new Act”) has been enforced with effect from 20.07.2020. Apart from the inclusion of online purchases the act has also made … Most of the important sections have been notified with effect from July 20, 2020 marking the beginning of the New Act and making it largely operative and applicable … Easy payment mechanisms make it convenient for the consumer to access … This will allow the consumer to file claims against e-commerce platforms who merely acts as a selling platform. This Consumer Protection Act 2019 is socio-economic legislation which aims to protect and promote the interests of consumers and establishing authorities for expeditious administration and settlement of consumer disputes. Therefore, the Consumer Protection Act, 2019 ('the Act') has been passed which is an attempt to update the old act by replicating the same. LAWYER MONTHLY - Lawyer Monthly is a Legal News Publication featuring the Latest Deals, Appointments and Expert Insights from Legal Professionals around the Globe. The preamble of the Act provides for “Timely” and “Effective” settlement of Consumer disputes. Consumers had complained of getting products which are counterfeit, lacks desired quality, late delivery etc. This showcase that the actual position is far away from the desired objective. With a view to enhance consumer rights in a digital economy, expand the scope of grievances consumers can complain against and ease the process of filing complaints, the government has introduced the Consumer Protection Act, 2019. The core values of the firm include a high degree of legal expertise, commitment to excellence, efficiency, integrity, focus and client care, all of which guide each member of the firm, be it the partners, associates or staff of Clasis Law in their business dealings on a daily basis. The endorser of false or misleading advertising may be prohibited from endorsing any product for a period up to 1 year. Discuss. The Consumer Protection Act, 2019, was passed by the Lok Sabha on July 30 last year and Rajya Sabha on August 6, and it had received the President's assent on August 9, 2019. Consumer Protection Act, 2019: Strengthening Changes. The supreme court in Bijoy Sinha Roy v. Biswanath Das and Ors [v] has held that to achieve the objectives of the Consumer Protection Act there is need for devising a mechanism for speedy trial and to adopt an Alternative Dispute Resolution Mechanism. On 20th July 2020, the Central Government notified the Consumer Protection Act, 2019, (“CPA, 2019”) which had … but CPA 1986 had become archaic and outdated to cover these emerging complexities in the market. The Consumer Protection Act, 2019 (“New Act”) heralds the beginning of a new era of consumer rights in India that are in sync with new-age consumer expectations.It carries forward the rich legacy of The Consumer Protection Act, 1986 (“Act”) that was considered path-breaking at the time of its enactment, but which was unable to meet the challenges of a rapidly … Where the value of the goods or services paid as consideration, exceeds rupees one crore, but does not exceed rupees ten crore. Amongst the various powers held by the Central Authority, the most relevant ones are;-. Briefly discuss the applicability of the Doctrine of Severability under Article 13(1) of the Constitution of India. 8 major changes here as follows 1) #ecommerce - The New Act has... #consumerprotectionact. Classifying these activities as unfair trade practices will certainly act as a bulwark and protect consumers from exploitation and will deter the sellers from undertaking such undesirable activities in the avarice of reaping profit. Following are the key highlights of the CP Act;-. Any purchase by these channels is amenable to the provisions of the Act and a complaint in re the same can be filed if the grounds provided in the Act exists. CPA, 2019 has incorporated the concept of Product liability. What Documents Do You Need for Your Personal Injury Claim? The Act has repealed the Consumer Protection Act, 1986 a 33 years old consumer protection legislation.  CPA 2019 has overcome this by covering buying of goods, hiring or availing of any services via any electronic mode, teleshopping, direct selling or even multi-level marketing, thus widening the definition of consumer under section 2(7) of the Act as anyone who buys goods or hires services by these means is a consumer under the Act. Lawyer Monthly is a news website and monthly legal publication with content that is entirely defined by the significant legal news from around the world. If the mediation fails, the Commission shall then proceed to hear the matter. This Act is implemented to whole India including Jammu & Kashmir. The first and foremost change is the evolution of the definition of “consumer”. This Digitisation has provided simpler access, a large variety of choice, convenient payment mechanisms, improved services and shopping as per convenience. The basic aim of the act is to save the rights of consumers by establishing authorities for timely … File Complaints or intervene in any proceedings before District or State or National Commission; After a preliminary inquiry, the Central Authority will further have a right to refer the matter for investigation or refer the same to some other competent Regulator established under any other law for the time being in force; Recall of goods, withdrawal of services which are dangerous or unsafe, reimbursement of prices of goods or services etc. This site uses Akismet to reduce spam. The CP Act is certainly progressive in nature and has been drafted keeping in mind the radical changes in the consumer base and consumer platforms. Telecom Services. Lookalike Logos: Chanel Loses Trademark Dispute with Huawei, The Legal Profession: The Importance of Industry in Driving Towards Equality, div#side-jobs-widget br {display: none;}div#side-jobs-widget strong{display:Block;}.slj-job.slj-job-sidebar{margin:0 0 25px;}. The key changes brought in by the Consumer Protection Act 2019 are:- Covering E-Commerce Transactions Purchasing through online platforms is in vogue and has been legally recognized by The Information Technology Act, 2000. In Nikhil Jain v. Emami Ltd[viii]  where the advertisement of a fairness cream “Fair and Handsome” manufactured by the respondent which was endorsed by renowned celebrity Shah Rukh Khan claiming that the cream will make men fair in 3 weeks was held to be misleading by the consumer forum. Your email address will not be published. Consequently, non-issuance of bill or receipt for goods sold and services provided to the consumer or any refusal to withdraw deficient services, refusal to take back any defective product and returning the consideration paid for such goods or services, disclosing any personal information of the consumer to any person other than consumer himself, making any false statement regarding the product by electronic means will amount to unfair trade practice and is a ground for filing a complaint. Also, the Act has provided a massive relief as the complaint can now be filed even at the place of residence of the complainant under section 34(1)(d) of the Act. The new law, notified on Aug. 9, repeals the three-decade old Consumer Protection Act, 1986. As can be witnessed from the insertion of more than 70 new sections in the Act in comparison to the previous one, pervasive changes have been brought about. Similarly, in the case against Nestle in 2015 it was alleged that the respondent company’s claim that its product Maggi does not contain MSG was allegedly false[ix]. The CP Act shall include “Product Liability” in order to discourage the manufacturers and service providers from delivering defective or deficient services. So what’s new in the Consumer Protection Act, 2019? The Consumer Protection Act, 2019 - Overview 26 August 2019 The new legal regime on consumer protection overhauls the 1986 law to address issues arising from unique trade forms used in this era of digitization and e-commerce. As part of the Consumer Protection Act, 2019, the Ministry of Consumer Affairs will compile a code of conduct for advertisers and agencies, a move designed to curb unfair practices and misleading claims. If a consumer has suffered any harm or injury attributed to a defective product or deficient service, he can file a complaint about product liability action against the product manufacturer or product service provider or product seller, as the case may be. The new bill was passed by the president on Aug 06, 2019. Can Parliament amend Part III of Constitution of India relating to Fundamental Rights? However, due to the spurt of digitization, there have been certain challenges which required immediate attention and keeping in mind the same, the Indian Government seeks to bring into effect the new Consumer Protection Act, 2019 (“CP Act”). First and foremost, while there have been judicial pronouncements bringing the purchases made through online methods under the ambit of consumers. With the in-depth expertise and know-how of the partners, together with highly trained teams, the firm is able to provide clients with bespoke solutions and exceptional service. The CP Act would repeal the old Consumer Protection Act, 1986 with the aim to provide timely and effective administration and settlement of consumer’s disputes. Misleading advertisements represent the quality, quantity, character or substance etc. District, State and National Commission.  For assessing this value the amount actually paid by the consumer as consideration will be taken into account and not the price of such goods or services. This Video discusses 8 major changes in the consumer protection,2019. It has introduced a myriad of provisions in this regard and is expected to benefit consumers in numerous ways. The CP Act widens the scope of protection of a consumer. The Act provides that if any complaint is filed in any consumer forum, such complaint shall either be admitted or rejected within 21 days from the date of filing of a complaint, however, if such complaint is neither accepted nor rejected within this specified time, it will be deemed to have been admitted. The central Authority can also initiate an investigation Suo Motto or on the directions of Central Government as well. But it also envisages a Central Consumer Protection Authority and vests too much power and control in this authority without … It is important to note that a product manufacturer shall be liable even if he proves that he was not negligent or did not act fraudulently in making the express warranty of a product. In order to bring the telecom services under the 2019 Act, “telecom” has … There is however intense need to curb these advertisements to meet the objectives of the Consumer Protection Act.  District Commission under section 34(1) of the Act can now entertain cases where the value of goods and services does not exceed 1 crore rupees. The new Act has been made, giving specific attention to the advent of the internet, online transactions, and the e-commerce model of transactions. The Commissions can, at any stage of the proceedings, direct the parties to have their matter settled by mediation, where it appears that there exists a possibility of resolution of the dispute through mediation. Recently the Consumer Protection Bill, 2019 was passed by both houses of Parliament. However, the successful effectiveness and speediness of the functions under the new CP Act will only be seen over the course of time. The Act has also eased the filing of the complaint by providing for e-filing of complaints this will make the filing process more convenient and consumer-friendly for this purpose government has also launched a mobile app known as  “ Consumer App” where a consumer can file his complaint which will be disposed of in the maximum 60 days. 23, 2016, Your email address will not be published. But the CPA, 1986 did not specifically have any provisions to cover online transactions. there has not been any substantial control on these advertisements. Central Authority shall have an “Investigation Wing” for the purpose of conducting inquiry or investigation. Protection against the marketing of goods, products or services which are hazardous to life and property; Protection against unfair trade practices by being informed about the quality, quantity, potency, purity, standard and price of goods, products or services; Access to a variety of goods, products or services at competitive prices; Consumer’s interests will receive due consideration at the appropriate fora; To seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers. [UPJS 2016] Â. In cases where the consumer is … How to File a Consumer Complaint in India, Exceptions to The Right To Information | RTI Exceptions I By Rajul Jain, A Long Failure and the Need to Revamp Space Laws and Conventions. IN A SNAPSHOT Given the exponential growth in the consumer market, digitization, and the unanticipated change in the modus of receiving and consuming goods and services, a revamp of the consumer protection laws was inarguably inescapable. For the purpose of the investigation, the Central Authority will have an “Investigation Wing” headed by Director-General. “Misleading Advertisement” has been defined to include situations wherein the seller describes their products and services falsely, or gives a false guarantee regarding the nature of the product or services, or conceals important information, or partakes in unfair trade practice.1 The Central Authority will provide a fast track alternative so that justice reaches the consumer immediately as earlier the only remedy was to approach Consumer Forums. Where the matter has been settled by mediation, the District, State or National Commission shall duly record such settlement in its order. State Commission under section 47(1) where the value of goods and services exceeds 1 crore rupees but does not exceed rupees 10 crores. The errant businesses will be penalized with up to 6 months in jail or a fine of up to Rs 1 lakh if the consumers do not suffer any injuries. If after investigation the Central Authority is satisfied on the basis of the evidence that the alleged acts have been prima facie committed it can pass appropriate orders under section 20 and 21 of the Act which inter alia includes an order to recall of goods, reimbursement of price, discontinuation of practice, or discontinuance of such advertisement etc. Later on, all Act is changed and made COPRA (Consumer Protection Act) 2019. These advertisements are often endorsed by celebrities having a profound impact on consumer’s economic behaviour. of a product or service falsely so as to influence the consumer’s decision.  In India despite various regulatory bodies like ASCI, TRAI, IRDA etc. A Central Consumer Protection Authority (“. But how is the new act different from the 1986 act? This Section will explain the key features of the new Act. In Loreal v. Brandworld & Anr [vii] shopclues.com raised the plea that it was merely an intermediary and serves as a platform between the buyer and the selling company, This Provision will render such objections untenable at the outset. Consumer Protection Act, 2019 The Consumer Protection Act, 2019 (Hereinafter called the new act) is basically a call for the digital friendly consumers and highly digitalized population.

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