Human beings buy diverse goods and services to satisfy their daily needs. They spend money on what they wish to acquire, expecting to be satisfied with its usage and consumption. However, satisfaction is not truly guaranteed with buying items, as dissatisfaction may arise due to multiple grounds such as low product quality, exorbitant prices, less quantity, false advertising, and similar other reasons. Putting such reasons together, the Consumer Protection Act passed by the Central Government in India in 1986 was the first major policy to protect and promote consumer rights. The very development empowered consumers and buoyed their confidence that their rights would be protected during purchases and transactions with the sellers.
The Indian consumer market witnessed a dreadful change due to 4G, and a rapid rise in e-commerce. The Consumer Protection Act of 1986, as the first stage of legislation devoted to consumer protection, was fast becoming outdated with the presence of so many new technological advancements in this regard, notably due to the rise of “online shopping” or “teleshopping.” This has rendered its provisions ineffective in addressing challenges such as product recalls, unfair contracts, and deceptive advertisements. Consequently, new legislation became necessary to tackle these issues and uphold consumer rights.
Addressing these issues, the Consumer Protection Act of 2019 was introduced. This updated legislation aligns with advancements in the digital landscape, ensuring consumers are shielded from deceptive advertising and risks linked to online shopping.It now seeks to shift responsibility from not only the manufacturers and retailers but also the advertisers to protect the consumer from dangling in fraudulent schemes. The goal of the Act is purportedly to fast-track the average time taken to clear cases in consumer courts and to deliver swifter justice to consumers. For Online Sole Proprietorship Registration contact us at Super Ca.
Need for Consumer Protection
Consumer protection is essential to safeguard individuals from harm, financial losses, and unethical practices. The Consumer Protection Act was introduced for the following purposes:
- To guarantee the physical safety of consumers.
- To safeguard consumers’ economic interests.
- To provide consumers with access to accurate and reliable information.
- To ensure products meet quality standards and establish mechanisms for addressing grievances.
- To promote the social responsibility of producers and traders in delivering goods of appropriate quality and quantity at reasonable prices.
- To raise awareness about consumer rights and unethical business practices that can harm consumers.
- To ensure consumer satisfaction.
- To uphold the principle of social justice.
- To follow the principle of trusteeship.
- To support the survival and growth of businesses.
Drawbacks of the Consumer Protection Act, 1986
The Consumer Protection Act of 1986 faced several challenges that impeded the effective enforcement of consumer rights. Key drawbacks included:
Delays in Case Resolution:
Despite the prescribed timeline for case disposal under Section 13(3A) of the Act, delays were common due to case backlogs and frequent adjournments. This made the process time-consuming and costly for consumers.
Vacancies in Consumer Forums:
A significant number of positions, including those of members and presidents in various consumer forums, remained vacant, with over 400 posts unfilled. This contributed to prolonged case resolution.
Unqualified Appointments:
Members of consumer forums were often appointed without the necessary qualifications or training, resulting in an unprofessional and inefficient system with procedural delays.
Lack of Suo-Moto Powers
President of the forums did not have the power to take suo-moto cognizance of cases concerning a large number of people, such as misleading advertisements or online frauds. This blocked the Act from reacting to instances that endanger the interests of the wider community at large
Consumer Protection Act, 2019
The Consumer Protection Act, 2019, is designed to safeguard the interests of consumers. It ensures protection against defective products, unsatisfactory services, and unfair trade practices. The primary objective of the Act is to uphold consumer rights by creating authorities for efficient and timely resolution of consumer disputes.
Consumer Rights Under the Act:
Consumer Rights Under the Act
The Consumer Protection Act, 2019 outlines six consumer rights under Section 2(9). These rights include:
1. Protection from the sale of goods and services that pose a risk to life and property.
2. Safeguards against unfair trade practices, ensuring consumers are well-informed about the quality, quantity, potency, purity, standards, and prices of goods and services.
3. The right to access a wide range of goods and services at competitive prices.
4. To seek redressal at respective forums against unfair & restrictive trade practices.
5. To receive adequate compensation or consideration from respective consumer forums in case they have been wronged by the seller.
6. To receive consumer education.
Consumer Protection Act 1986 v/s Consumer Protection Act 2019
| Aspect | Consumer Protection Act 1986 | Consumer Protection Act 2019 |
| Regulator | No specific regulator for consumer protection | Under this Act, a Central government protection authority is to be formed. |
| Jurisdiction | Restricted to the district of purchase | Broadened to enable consumers to lodge complaints from their own location, irrespective of where the seller is based. |
| Product Liability | Previously, consumers were unable to take legal action against sellers in consumer courts for product-related concerns. | Consumers can file lawsuits in consumer courts against sellers for product issues, pursuing compensation or damages. |
| E-commerce | No specific provisions for e-commerce | Expands consumer protection regulations to include e-commerce platforms and sellers. |
| Mediation Cells | No provisions for mediation | Introduces measures for mediation to settle disputes prior to taking formal legal steps. |
| Unfair Terms and Conditions | There were no provisions to annul unfair contracts. | Gives the State Commission and National Commission the authority to annul a contract if it is deemed unfair. |
| Composition of State Commission | State Commission consisted of a president and two additional members. | State Commission is made up of a president and four additional members to enhance its effectiveness. |
Responsibilities of Consumers
Consumers have certain duties and responsibilities to ensure a safe and informed shopping experience. These include:
- Being vigilant about the quality of products and opting for those that carry certification marks such as ISI, Agmark, or FPO to guarantee standards.
- Avoiding complete reliance on advertisements, especially misleading ones. Consumers should carefully examine products and, if available, review customer feedback before making a purchase.
- Taking responsibility to compare various products before selecting one, considering factors like quality, price, durability, and after-sales service. This helps in making the best choice within their budget.
- Securing proof of purchase, such as an invoice or bill, which can serve as evidence for warranty or guarantee claims.
- Being fully aware of their rights as consumers to ensure informed decisions and protection.
- Filing complaints for legitimate grievances when dissatisfied or when there has been a loss, particularly when seeking compensation.
- Using products and services responsibly, even during the warranty or guarantee period.
Filing of Complaints
CPA, 2019 safeguards consumer interests by establishing authorities to resolve grievances and settle consumer disputes. Such authorities are bound to ensure that consumer disputes are settled efficiently and expeditiously. Aggrieved customers are empowered to file a complaint according to the procedure laid down under the CPA, 2019.
Sec. 2 of CPA, 2019 defines a “complaint” as any representation made by a consumer for relief under this Act against unfair contracts, unfavourable trade practices, restrictive trade practices, defective goods, deficient services, and dangerous goods or services. It may also contain a written claim to hold the manufacturer, seller, or supplier of the product liable.
The complaint can be preferred by a single consumer, a group of consumers, any registered voluntary consumer association, the Central or State Government, or by the legal heirs or representatives of the consumer; in case the consumer is a minor, the complaint can be lodged by his/her parent or legal guardian.
Complaints are made either in writing or electronically before the District Collector, the Commissioner of his regional office, or the Central Authority. A complainant can approach the District Forum, State Commission, or National Commission if there is a violation of consumer rights. If the order of the Consumer Court is found unsatisfactory, an appeal to a higher court is always available to the complainant.
Conclusion
Consumer Protection Acts of 1986 & 2019 mark pivotal advancements in India’s consumer protection system. The 2019 Act aligns with the changing consumer landscape, tackling challenges brought about by e-commerce and modern trade practices.
It establishes a dedicated regulatory body, eliminates jurisdictional constraints, enhances consumer rights for addressing product-related grievances, raises monetary jurisdiction limits, extends protections to e-commerce transactions, and encourages mediation as a means of resolving disputes.
These updates collectively bolster consumer protection, allowing individuals more possibilities of utilizing their rights and finding justice in a complex marketplace. The 2019 Consumer Protection Act could easily be taken as a mark of India’s wish to offer a modern and sound framework of protection to its consumer base.