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Focus: GS-III Indian Economy

Why in news?

The Consumer Protection Act,2019 comes in to force from 20th July 2020.

This new Act will empower consumers and help them in protecting their rights through its various notified Rules and provisions like Consumer Protection Councils, Consumer Disputes Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale of products containing adulterant / spurious goods.

More about the Consumer Protection Act

  • Consumer Protection Act, 2019 is a law to protect the interests of the consumers. It has ways and means to solve the consumer grievances speedily.
  • 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.
  • The act envisions a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights as a class and regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights.
  • The CCPA will have the right to impose a penalty on the violators and passing orders to recall goods or withdraw services, discontinuation of the unfair trade practices and reimbursement of the price paid by the consumers.
  • The act has the provision of the establishment of the Consumer Disputes Redressal Commissions (CDRCs) at the national, state and district levels.
  • The act also seeks to bring in e-commerce under their jurisdiction and hold celebrities accountable for false and misleading advertisements of products that they endorse.
  • The new act also introduces the concept of product liability and brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation.
  • The Act provides for punishment by a competent court for manufacture or sale of adulterant/spurious goods.

Who is a Consumer?

According to the act: A person is called a consumer who avails the services and buys any good for self-use (though both online and offline transactions. Worth to mention that if a person buys any good and avail any service for resale or commercial purpose, is not considered a consumer.

March 2024