New Features of the Consumer Protection Act, 2019

In news 

Recently, the National Consumer Day 2020 was observed with the theme “New Features of the Consumer Protection Act, 2019” 

Key highlights

• The Department of Consumer Affairs, Ministry of Consumer Affairs Food and Public Distribution virtually celebrated the National Consumer Day 2020 with the theme “New Features of the Consumer Protection Act, 2019” in association with the Centre for Consumer Studies, Indian Institute of Public Administration in New Delhi
• In his inaugural address Union Minister of Consumer Affairs, Food and Public Distribution appealed to all the consumers to be vocal for local to prefer indigenous products and services as appealed by our Prime Minister. 
• The Minister emphasized the need for greater commitment towards quality and standards and Atma Nirbhar Bharat.
• The Minister said that the inauguration of Second phase of office cum laboratory building at National Test House at Mumbai is a step-in direction as it provides for development of testing facilities of air conditioner, refrigerators, toys and batteries used in e-vehicles. 
• Emphasizing the need for ‘vocal for local’, the Minister observed that local products should be encouraged which can be done by the consumers only
• The Minister observed that next year, India should be celebrating the year of quality in standard and productivity
• The Minister concluded the speech by saying ‘JagoaurJageraho’ meaning consumers should be aware of their rights and they should remain aware and be vigilant while purchasing goods and services.

Key features of the Consumer Protection Act 2019:

• It defines a consumer as a person who buys any good or avails a service for a consideration. 
• It does not include a person who obtains a good for resale or a good or service for commercial purpose. 
• It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.
• As per the act, the central government will set up a Central Consumer Protection Authority (CCPA) with an investigating wing to promote, protect and enforce the rights of consumers.
  • The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement. 
  • In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.
• Consumer rights defined: it includes right to 
  • be protected against marketing of goods and services which are hazardous to life and property
  • be informed of the quality, quantity, potency, purity, standard and price of goods or services
  • be assured of access to a variety of goods or services at competitive prices; and 
  • seek redressal against unfair or restrictive trade practices.

• Consumer Dispute Redressal Commission (CDRC) 

• • The District Consumer Dispute Redressal Commission (CDRC) will entertain complaints where value of goods and services does not exceed Rs one crore. 
  • The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore. 
  • Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC