CONSUMER PROTECTION ACT, 2019

INTRODUCTION:

With the changing times and new developments gushing at a very fast pace, the new
Consumer Protection Act, 2019 is a plausible attempt by the legislature and the law makers to
keep at par with the new developments (especially technological developments) going around
the world and incorporate the needful which ensures smooth and efficient functioning of the
law and redressal processes.

The new act takes a wholistic approach by giving the necessary rights to the government
authorities to search and seizure in case of violation of consumer rights (Section 22). At the
same time, to ensure that not excess power is given to the officials, condemns any search or
seizure which is done without any reasonable grounds and punishes such acts with
imprisonment or fine or both (section 93). This ensures that balance is maintained within the
society and no misuse of power is done.

DEVELOPMENTS:

Widening the scope of the term ‘consumer’: The new act, under the explanation clause of
section 2(7) explicitly mentions that it includes offline or online transactions through
electronic means or by teleshopping or direct selling or multi-level marketing. This is one of
the instances which highlights the adaptability of the technological developments by the law-
makers.

Establishment of Consumer Protection Authority/Councils: The new act provides for such an
establishment at Central, State, and District levels to regulate matters relating to violation of
rights of consumers, unfair trade practices and false or misleading advertisements which are
prejudicial to the interests of public and consumers and to promote, protect and enforce the
rights of consumers as a class. It has also been given a power of taking suo moto actions
(section 18) in interest of the society.

Increasing the monetary jurisdictional limits: District- Up to 1 crore (section 34); State- Up to
10 crores (section 47); National- Exceeding 10 crores (section 58). This was a substantial
increase from 20 lacs, 1 crore, and exceeding 1 crore respectively.
Stricter penalties: The new act imposes much more strict penalties than the 1986 act in order
to ensure compliance. Chapter VII of the act provides for offences and penalties. If
adulterated or spurious goods result into death of the consumer, a minimum fine of 10 lakh
rupees is imposed on the defaulter along with minimum sentence of 7 years.

Accelerates the process of redressal and saves cost: Several attempts have been made under
the new act in order to fasten the whole process of redressal.

- Mediation: A new chapter is added under the new act with reference to mediation
(Chapter V). It gives rights to all the commissions to refer a matter to mediation
(section 37). This reduces the burden of cases under a commission, finds a amicable
way of settlement, saves costs of proceedings under the commission, and reduces the
time for settlement of the issue.
- Transmission of documents through electronic means: The new act shows great
adaptability in terms of using technology as a means for accelerating and making the
process of redressal much more efficient. It provides for e-filing of complaints
(section 17), payment of fee {section 35(2)} service of notice (section 65).
- Video Conferencing: The new act provides for a modern mechanism under which
proceedings can even continue electronically. The power is mentioned under section
38 of the act for the District Commission, and same is applicable for the State and
National Commissions. By using this mechanism for resolving disputes the consumer
commissions were able to function efficiently even at the time of global pandemic.
- Jurisdictional freedom: Apart from increasing the pecuniary jurisdiction for all the
commissions, the new act also provides for widening the scope of jurisdictions under
which a consumer can file a case. The right to file a complaint within the jurisdiction
of complainant’s residence is added for all, the district (section 34), the state (section
47) and the national (section 58) commissions.
- Power to review: A scope of correction is given to the district (section 40), the state
(section 50) and the national (section 60) commissions either on suo moto basis or on
application by any of the parties under section. If any error is detected at this stage,
then it would substantially save the cost and time of any or both of the parties as
lacking this stage the parties would directly approach for a appeal against the
judgment of the lower court.

CONCLUSION:
By introducing a reformative, developmental and enhanced law, the process of consumer
dispute redressal is made much more efficient. This can be viewed from the fact that the
disposal rate of cases under the national commission is 84%, 87% under state commissions,
and 90% under district commissions. These statistics show that the law is not only well made
but also practical and enforceable.