Back to BlogsThe new Consumer Protection Act 2019 repealed the Consumer Protection Act, 1986 which was not adept to address all the consumer issues arising as the market scenario has changed a great deal, mainly due to advancements in technology and the rise of e-commerce.
Here are some major provisions of the Consumer Protection Act 2019 and how they impact you as consumers. Also know what remedies are available and how to seek redress.
What you should know
1. Definition of ‘Consumer’ expanded
The definition of consumer now includes ‘transaction made through electronic means, teleshopping, direct selling etc’. With online shopping, teleshopping and Multi-Level Marketing having penetrated deep into the Indian markets, including this class of buyers in the definition of consumers gives them rights under Consumer Protection Act.
Impact: The changing trends of shopping and consumer behaviour has been considered in the new Act. A consumer dispute arising in the online purchases can also be brought to consumer commissions.
2. What to do if you do not get a bill?
The Scope of Unfair Trade Practices has been expanded to include practices of a seller not issuing a bill. In such cases, a consumer can now file a case against the seller.
Impact: Many consumers could not assert their rights because they did not have proof of purchase (bills/receipts). With this amendment, the seller will be compelled to issue proper bills and also take responsibility for the goods sold.
3. What are the monetary thresholds in the consumer court?
District Commission shall have powers to entertain complaints where value of goods or service is not more than Rs. 50 lakhs which was earlier only up to Rs. 20 lakhs. Similarly, the State Commission can take cases for complaints from Rs. 50 lakhs to Rs. 2 crores which earlier was from Rs. 20 lakhs to Rs 1 crore.
Impact: Increasing the monetary jurisdiction of the District and State Commissions means that more consumers would now be able to pursue remedies easily. This will help consumers save time and resources as they can file cases at commissions closer to them.
4. What are Unfair Terms of Contract?
A contract may not be unfair entirely, but if it has terms that cause significant change in the rights of a consumer it would now be recognised as Unfair Contracts. The definition of unfair contract includes “any unreasonable, charge, obligation or condition which puts the consumer in a disadvantaged position.”
Impact: For instance, in the real estate sector, till now, contracts between a consumer and a builder shielded the builder in case he wanted to back out. But consumers had to pay penalty if they wanted to cancel a booking. This one-sided term would now come under Unfair Contracts.
5. Where can a case be filed?
A consumer can now file a case at the Forum where he/she resides or works instead of going to the Forum where the opposite party has an office. Consumers will get facility to file their complaint online including online payment of fees.
Impact: If a consumer lives in Ahmedabad but has purchased a defective gadget in Mumbai, he/she can now file a case in an Ahmedabad District Commission instead of having to go to Mumbai where the cause of action arose.
6.How is compliance with an order enforced?
Any person who does not comply with the order of the commission shall be penalised with imprisonment, which may be up to 3 years or shall have to pay fine up to Rs. 1 lakh. This will be in addition to the payment of the actual amount awarded.
Impact: With a penalty now being imposed, execution of the order is likely to be strictly adhered to.
7. Can a consumer claim damages for any harm caused by defective goods or product related deficient services?
With the introduction of a new chapter on ‘Product Liability’, you can claim for damages from the manufacturer if a product has caused personal injury, death or property damage. You can also claim damages if the product is dangerous or defective in design.
Impact: This provision makes the manufacturer or vendor of goods responsible for his products and also provides for compensation for injury caused by defective goods.