Another blow to China, India makes 'country of origin' marking must on all consumer products, says the New Consumer Protection Act effective from July 20. Tough road for Chinese products as it can not be sold without 'Made in China' Marking.

The New Consumer Protection Act, which comes into effect from July 20, 2020, is likely to hit those selling Chinese products without mentioning the country of Origin. Considering the anger against Chine, it would be very difficult to pitch for 'Make in China' product even if it is cheaper. People would rather prefer to go for other products even if it costs more to their pocket.

The New Consumer Protection Act has further made life difficult for e-commerce companies. Now the e-commerce platforms have to acknowledge the receipt of any consumer complaint within forty-eight hours and redress it one month from the date of receipt under this Act. It also has provisions to curb 'unfair practices' normally done by e-commerce companies.

In another provision, the Act has introduced the concept of product liability. According to which the product manufacturer, product service provider and product seller will have to pay any claim or compensation.

In another relief to Consumers, the new act gives freedom to consumers to file complaints electronically and can claim jurisdiction over the place of his residence. The new concept has also introduced videoconferencing for hearing and deemed admissibility of complaints if the question of admissibility is not decided within the specified period of 21 days.

Announcing the enactment of the new Act, Consumer Affairs Minister Ram Vilas Paswan said the Consumer Protection Act, 2019 empowers consumers, simplifies consumer dispute adjudication process and introduces the concept of product liability.

The new Act would give consumers more control over the quality of goods and services being provided to them by corporations. The Bill was introduced in the Rajya Sabha on July 8, 2019, by the Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan. Later it was passed on July 30, 2019, by the Lok Sabha and later cleated by Rajya Sabha on August 6, 2019.

The Act would further empower consumers, help them in protecting their rights through its various notified Rules and provisions including Consumer Protection Councils, Consumer Disputes Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale of products containing adulterant, spurious goods said Ram Vilas Paswan through a video conference here on Monday.

He said the Act includes establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.  The CCPA would be empowered to conduct investigations into violations of consumer rights and institute complaints / prosecution.

The CCPA would have authority to recall unsafe goods and services. It can order the discontinuance of unfair trade practices and misleading advertisements. The CCPA would also impose penalties on manufacturers, endorsers, publishers of misleading advertisements.

The Minister said the rules for the prevention of unfair trade practice by e-commerce platforms will also be covered under this Act. The gazette notification for establishment of the Central Consumer Protection Authority and rules for the prevention of unfair trade practice in e-commerce is under publication.

As per the new Act, every e-commerce entity is required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal the mechanism, payment methods, the security of payment methods, charge-back options.

Besides, the product has to have  ‘country of origin’ marking which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage on its platform.  He said that e-commerce platforms have to acknowledge the receipt of any consumer complaint within forty-eight hours and redress the complaint within one month from the date of receipt under this Act.

The New Act has introduced the concept of product liability and brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation.

Minister said the new Act also simplified the consumer dispute adjudication process in the consumer commissions, which include, among others, empowerment of the State and District Commissions to review their own orders.

The new Act would enable a consumer to file complaints electronically and file complaints in consumer Commissions that have jurisdiction over the place of his residence, videoconferencing for hearing and deemed admissibility of complaints if the question of admissibility is not decided within the specified period of 21 days.

In the act there is also a provision for an Alternate Dispute Resolution mechanism of Mediation, This will simplify the adjudication process.  A complaint would be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and parties agree for it. Mediation would be held in the Mediation Cells to be established under the aegis of the Consumer Commissions.  There will be no appeal against settlement through mediation.

The Minister said as per the Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases up to Rs. 5 lakh. There are provisions for filing complaints electronically, credit of amount due to unidentifiable consumers to the Consumer Welfare Fund (CWF).  The State Commissions will furnish information to Central Government on a quarterly basis on vacancies, disposal, the pendency of cases and other matters. 

Under this new Act, besides general rules, there are Central Consumer Protection Council Rules, Consumer Disputes Redressal Commission Rules, Appointment of President & Members in State/District Commission Rules, Mediation Rules, Model Rules and E-Commerce Rules and Consumer Commission Procedure Regulations, Mediation Regulations and Administrative control over State Commission & District Commission Regulations.

The Council, which has a three-year tenure, will have Minister-in-charge of consumer affairs from two States from each region- North, South, East, West, and NER. There is also provision for having working groups from amongst the members for specific tasks.

While in the Consumer Protection Act, 1986 there was a single-point access to justice, the new Act included many amendments to provide protection to buyers not only from traditional sellers but also from the new e-commerce retailers/platforms.

Ends.

the writer is Vijay Thakur, Special Representative, the Statesman.