CONSUMER PROTECTION

ACT 2019

DECEMBER 3, 2023
LAKSHMIPAT SINGHANIA SCHOOL
KANKROLI
 Class: XII
Subject: Business Studies

Consumer Protection Act, 2019

The new Consumer Protection Act was passed by Parliament in 2019. It came into
force in July 2020 and replaced the Consumer Protection Act, 1986.

Need for the new act:

• The Digital Age has ushered in a new era of commerce and digital branding, as well as a
new set of customer expectations. Digitisation has provided easy access, a large variety of
choices, convenient payment mechanisms, improved services and shopping as per
convenience. However, there are also associated challenges related to consumer protection.
• To help address the new set of challenges faced by consumers in the digital age, the Indian
Parliament passed the landmark Consumer Protection Bill, 2019 which aims to provide timely
and effective administration and settlement of consumer disputes.
 District National
Basis Commission State Commission Commission

A state commission
A district commission includes a
A national commission
includes a president president and at
includes a president
and two other least two other
Composition and four other
members, and one of members, and one
members one of whom
the members has to of the members
shall be a woman.
be a woman. has to be a
woman.

A working or retired A working or retired A working or retired

judge of the District judge of the High judge of the Supreme
Who can be
Court can be a Court can be a Court can be a
a President
president of the president of the president of the
District Commission. State Commission. National Commission.

After consulting
By taking the
with the Chief After consulting with
recommendation of
Justice of the High the Chief Justice of
the selection
Appointment Court, the state India, the central
committee, the state
of President government government appoints
government appoints
appoints the the president of the
the president of the
president of the National Commission.
District Commission.
State Commission.

One can file a

One can file a complaint of goods One can file a
complaint for goods and services worth complaint of goods
Jurisdiction
and services of ₹1 less than ₹10 and services worth
crore or less. crores and more more than ₹10 crores.
than ₹1 crore.

If the aggrieved party

If the aggrieved is not happy with the
party is not happy jurisdiction of the
If the aggrieved party with the jurisdiction national commission,
is not happy with the of the state then they can appeal
jurisdiction of the commission, then against its judgment in
Appeal district commission, they can appeal the Supreme Court
against then they can appeal against its within 30 days by
orders against its judgment judgment in the depositing 50% of the
in the State National fine money. However,
Commission within Commission within one can file the
45 days. 30 days by complaint only when
depositing 50% of the value of goods and
the fine money. services exceeds ₹10
crores.
Rights of a Consumer
Consumer Protection Act, 1986 has provided six rights to the consumers, which are
as follows:

1. Right to Safety: Consumer has the right to be protected against products, &
services which are hazardous to health & life (should use ISI marked electronic
device.
2. Right to be Informed: Consumer has right to have complete information about
the product before buying it.

3. Right to choose: Consumer has a right to choose any product out of the available
products as per his own decision making.

4. Right to be heard: Consumer has the right to file a complaint to be heard in case
of dissatisfaction with goods or services (use of grievance cell)
5. Right to Seek Redressal: Consumer has the right to get relief in case the product
or service falls short of his expectations or is dangerous. He may be provided with
replacement/removal of defect or compensation for any loss. Various redressal
forums are set up by the Govt. at National and State level.
6. Right to consumer education: Consumer has the right to acquire knowledge nd
to be well informed throughout life. He should be made aware of his rights and
reliefs available to him in case of the product or service falls short of his exceptions.
The Govt. of India has included consumer education in the school curriculum & is
making use of media to make consumers aware of their rights.
Responsibilities/Duties of a Consumer
Consumer Responsibilities:

1. Ask for a cash memo

• On purchase of goods or services. This would serve as a proof of the purchase
made.
2. Be aware
• About various goods and services available in the market so that an intelligent and
wise choice can be made.
3. Buy only standardized goods
• As they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO
mark on food products, Hallmark on jewelry etc.
4. Follow manufacturer‘s instructions
• Learn about the risks associated with products and services, and use the products
safely.
5. Read labels carefully
• So as to have information about prices, net weight, manufacturing and expiry dates,
etc.
6. Assert yourself
• To ensure that you get a fair deal.
7. Be honest in your dealings.
• Choose only from legal goods and services and discourage unscrupulous practices
like blackmarketing, hoarding etc.
8. File a complaint in an appropriate consumer forum
• In case of a shortcoming in the quality of goods purchased or services availed. Do
not fail to take an action even when the amount involved is small.
9. Form consumer societies
• Which would play an active part in educating consumers and safeguarding their
interests.
10. Respect the environment.
• Avoid waste, littering and contributing to pollution.
REMEDIES AVAILABLE TO CONSUMERS
• Remove defect in goods and deficiency in services.
• Replace defective goods with one with no defects
• Refund price paid
• Pay a reasonable amount of compensation for any loss or injury suffered.
• Pay punitive damages in appropriate circumstances.
• Discontinue unfair/restrictive trade practice
• Not to offer hazardous goods and services for sale
• Withdraw hazardous goods from sale
• Cease manufacturing hazardous goods
• Pay an amount to consumer welfare fund/ person (not less than 5%) to be utilized
in the prescribed manner
• Issue corrective advertisement to neutralize the effect of misleading ads.
• Pay adequate costs to parties.
CONSUMER AWARENESS
Some important consumer organization and NGO’s engaged in protecting consumer
interests are:

1. Consumer coordination council, Delhi.

2. Voluntary organization in Interest of Consumer Education, Delhi.
3. Mumbai Grahak Panchayat, Mumbai.
4. Consumer Association, Kolkata.
5. Consumer Unity and Trust Society Jaipur.

Role of Consumer organizations and NGO’s

1. Educating the general public about consumer rights by organizing training
programmes, seminars and workshops.
2. Publishing periodical & other publications to educate consumers.
3. Providing legal assistance to consumers by providing legal advice etc.
4. Producing films or cassettes on food adulteration, misuse of drugs etc.
5. Filing complaints in appropriate consumer courts on behalf of consumers.
6. Encouraging consumers to take on action against unfair trade practices.
7. Taking an initiative in filing cases in consumer courts on behalf of consumers.

Q1 What is the Consumer Protection Act in India?

In order to protect the consumers from exploitation and to save them from adulterated and
substandard goods and deficient services, the Consumer Protection Act came into force on
15th April 1986. It was replaced by the Consumer Protection Act 2019.

Q2 What are the main features of the Consumer Protection Act?

The new Act has widened the definition of ‘consumer’. The Act proposes the establishment
of the Central Consumer Protection Authority (CCPA) as a regulatory authority. The new Act
provides flexibility to the consumer to file complaints with the jurisdictional consumer forum
located at the place of residence or work of the consumer. The Act has introduced the concept
of product liability. The new Act provides for mediation as an Alternate Dispute Resolution
mechanism. For mediation, there will be a strict timeline fixed in the rules. The new Act has
armed the authorities to take action against unfair trade practices too. This Act is applicable
to all the products and services, until or unless any product or service is especially debarred
out of the scope of this Act by the Central Government.

Q3 What is the aim of the consumer protection act?

The basic aim of the Consumer Protection Act, 2019 to save the rights of the consumers by
establishing authorities for timely and effective administration and settlement of consumers’
disputes.