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.