Legislation UpdatesNotifications

Central Consumer Protection Authority

Central Government establishes the Central Consumer Protection Authority as a body corporate by the said name having perpetual succession and a common seal, with power, subject to the provisions of the Act and the rules and regulations made thereunder, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.

The said Authority has been established with effect from 24-07-2020 and has been constituted under Section 10(1) of the Consumer Protection Act, 2019

NOTIFICATION

Also Read:

Consumer Protection Act, 2019 comes into force


Ministry of Consumer Affairs, Food and Distribution

[Notification dt. 23-07-2020]

Hot Off The PressNews

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

While briefing the media about the Consumer Protection Act, 2019 the Union Minister for Consumer Affairs, Food & Public Distribution Shri Ram Vilas Paswan said that 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.

The Act includes establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.  The CCPA will be empowered to conduct investigations into violations of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuance of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements.Shri Paswan further said that the rules for 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 prevention of unfair trade practice in e-commerce are under publication.

Under this 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 mechanism, payment methods, security of payment methods, charge-back options, etc. including country of origin 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. He further added that the New Act 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 new Act provides for simplifying 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, enabling 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.

An Alternate Dispute Resolution mechanism of Mediation has been provided in the new Act.  This will simplify the adjudication process.  A complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and parties agree for it. Mediation will 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.

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

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. The court may, in case of first conviction, suspend any licence issued to the person for a period of up to two years, and in case of second or subsequent conviction, cancel the licence.

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 Central Consumer Protection Council Rules are provided for constitution of the Central Consumer Protection Council, an advisory body on consumer issues, headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from different fields. 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.

Click here for presentation on salient features of CPA 2019

Also Read:

Substantial portion of Consumer Protection Act, 2019 along with related Rules to come into force on 20th July, 2020


[Source: PIB]

Legislation UpdatesNotificationsRules & Regulations

The Central Government has appointed 20 July 2020, as the date on which certain provisions of the Consumer Protection Act, 2019 shall come into force. The Central Government has exercised the powers conferred by Section 1(3) of the Consumer Protection Act, 2019.

Following is a list of provisions that will come into force on 20 July 2020:   

Chapter

Title

Sections

I

Preliminary ? Definitions

Section 2

[except clauses (4), (13), (16), (40)]

II

Consumer Protection Councils

Sections 3 to 9

[both inclusive]

IV

Consumer Disputes Redressal Commission

Sections 28 to 73

[both inclusive; except sub-clause (iv) of clause (a) of sub-section (1) of 58]

V

Mediation

Sections 74 to 81

[both inclusive]

VI

Product Liability

Sections 82 to 87

[both inclusive]

VII

Offences & Penalties

Sections 90 and 91

VIII

Miscellaneous

Sections 95, 98, 100 to 103 and 105 to 107

[except clauses (f) to (m) and clauses (zg), (zh), (zi) of sub-section (2) of Section 101]

The Centre has also notified certain rules that will come into force on 20 July 2020. Following is the list:

  • Consumer Protection (Central Consumer Protection Council) Rules, 2020
  • Consumer Protection (Salary, allowances and conditions of service of President and Members of the State Commission and District Commission) Model Rules, 2020
  • Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and members of the State Commission and District Commission) Rules, 2020
  • Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020
  • Consumer Protection (Mediation) Rules, 2020

Notification


Ministry of Consumer Affairs, Food and Public Distribution 

[Notification dt. 15-07-2020]