New consumer protection Act comes into force

3 min read

News: The Consumer Protection Act,2019 has come into force replacing the old Consumer Protection Act, 1986.

Facts:

  • Aim: To protect the rights of consumers by establishing authorities for timely and effective administration and settlement of consumers dispute.

Key Features of the Act:

  • Central Consumer Protection Authority(CCPA): It has been set up to promote, protect and enforce the rights of the consumer by inquiring into violations of consumer rights, investigating and launching prosecution at the appropriate forum among others.
  • Consumer Disputes Redressal Commission(CDRCs): They will be set up at the district, state and national levels.  
  • Alternate Dispute Resolution Mechanism of Mediation: A complaint will be referred by a Consumer Commission for mediation wherever scope for early settlement exists and parties agree for it.
  • Product liability: A manufacturer or product service provider or product seller will be held responsible to compensate for injury or damage caused by defective product or deficiency in services.
  • Rules on E-commerce and Unfair Trade Practices: Consumer Protection (E-commerce) Rules,2020 will be notified under the Act where E-commerce entities are required to provide information to consumers relating to return, refund, exchange, warranty and guarantee, delivery and shipment and country of origin among others.
    • Redressal: E-commerce entities have to acknowledge the receipt of consumer complaint within 48 hours and redress the complaint within one month from the date of receipt.They will also have to appoint a grievance officer for consumer grievance redressal.