Consumer Protection Act 2019 - Boss Points

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Consumer Protection Act 2019

An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers' disputes and for matters connected therewith or incidental thereto.                              

Sec.	Topic	Boss Points
1	Short title, extent, commencement and application	v  Whole of India v  This Act shall apply to all goods and services v  09Th August 2019
2	Definitions	v  "Advertisement" means any audio or visual publicity, representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents v  "Appropriate laboratory" means a laboratory or an organization— (i) recognized by the Central Government; or (ii) recognised by a State Government, subject to such guidelines as may be issued by the Central Government in this behalf; or (iii) established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect v  "Central Authority" means the Central Consumer Protection Authority established under section 10 v  "Complainant" means— (i) a consumer; or (ii) any voluntary consumer association registered under any law for the time being in force; or (iii) the Central Government or any State Government; or (iv) the Central Authority; or (v) one or more consumers, where there are numerous consumers having the same interest; or (vi) in case of death of a consumer, his legal heir or legal representative; or (vii) in case of a consumer being a minor, his parent or legal guardian; v  "Consumer" means any person who— (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commerccial purpose. v  Explanation.—For the purposes of this clause,— (a) the expression "commercial purpose" does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment; (b) the expressions "buys any goods" and "hires or avails any services" includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing; (8) "consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint; v  Six Consumer Rights – (i) the right to be protected against the marketing of goods, products or services which are hazardous to life and property; (ii) the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, so as to protect the consumer against unfair trade practices; (iii) the right to be assured,access to a variety of goods, products or services at competitive prices; (iv) the right to be heard and to be assured that consumer's interests will receive due consideration; (v) the right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and (vi) the right to consumer awareness; v  "Defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained v  Deficiency in case of services v  "Endorsement", in relation to an advertisement, means— (i) any message, verbal statement, demonstration; or (ii) depiction of the name, signature, likeness or other identifiable personal characteristics of an individual; or (iii) depiction of the name or seal of any institution or organization v  "express warranty" means any material statement, affirmation of fact, promise or description relating to a product or service warranting that it conforms to such material statement, affirmation, promise or description and includes any sample or model of a product warranting that the whole of such product conforms to such sample or model v  Goods includes Food v  Mental Agony or emotional distress also included in harm v  Injury" means any harm whatever illegally caused to any person, in body, mind or property v  Manufacturer means a person who— (i) makes any goods or parts thereof; or (ii) assembles any goods or parts thereof made by others; or (iii) puts or causes to be put his own mark on any goods made by any other person v  "Product liability" means the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto v  A seller of immovable property is not included in the definition of product seller unless such person is engaged in the sale of constructed house or in the construction of homes or flats v  "Restrictive trade practice" means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions v  "Spurious goods" means such goods which are falsely claimed to be genuine v  "Unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method
3	Central Consumer Protection Council	v  The Central Government shall establish Central Consumer Protection Council to be known as the Central Council. v  The Central Council is advisory council with Minister of Consumer Affairs as Chairperson along with members
4	Meetings of Central Council	v  The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year
5	Objects of Central Council	v  The objects of the Central Council shall be to render advice on promotion and protection of the consumers' rights under this Act
6	State Consumer Protection Councils	v  Every State Government shall establish a State Consumer Protection Council for such State to be known as the State Council v  The Central Council is advisory council with Minister of Consumer Affairs at state level as Chairperson along with members v  other official or non-official members, not exceeding ten,  may be nominated by the Central Government v  The State Council shall meet as and when necessary but not less than two meetings shall be held every year
7	Objects of State Council	v  The objects of every State Council shall be to render advice on promotion and protection of consumer rights under this Act within the State
8	District Consumer Protection Council	v  The State Government shall establish for every District a District Consumer Protection Council to be known as the District Council. v  The District Council shall be an advisory council Headed by the Collector of the district v   The District Council shall meet as and when necessary but not less than two meetings shall be held every year.
9	Objects of District Council	v  The objects of every District Council shall be to render advice on promotion and protection of consumer rights under this Act within the district
10	Establishment of Central Consumer Protection Authority	v  The Central Government shall establish a Central Consumer Protection Authority to be known as the Central Authority 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. v  The Central Authority shall consist of a Chief Commissioner and such number of other Commissioners v  The headquarters of the Central Authority shall be at such place in the National Capital Region of Delhi
11	Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners	v  As per CG Instructions
12	Vacancy, etc., not to invalidate proceedings of Central Authority	-
13	Appointment of officers, experts, professionals and other employees of Central Authority	-
14	Procedure of Central Authority	v  The Chief Commissioner shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Central Authority
15	Investigation Wing	v  The Central Authority shall have an Investigation Wing headed by a Director General for the purpose of conducting inquiry or investigation under this Act as may be directed by the Central Authority
16	Power of District Collector	v  The District Collector on a complaint or on a reference made to him by the Central Authority or the Commissioner of a regional office, inquire into or investigate complaints regarding violation of rights of consumers or on matters relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, within his jurisdiction and submit his report to the Central Authority or to the Commissioner of a regional office, as the case may be
17	Complaints to authorities	v  Complaints can be made to any authority
18	Powers and functions of Central Authority	v  Protect, promote and enforce the rights of consumers as a class, and prevent violation of consumers rights v  Prevent unfair trade practice v  Ensure that no false or misleading advertisement is made v  Ensure that no person takes part in the publication of any advertisement which is false or misleading. v  Inquire or cause an inquiry or investigation to be made into violations of consumer rights or unfair trade practices, either suo motu or on a complaint received or on the directions from the Central Government; v  File complaints before the District Commission, the State Commission or the National Commission, v  Intervene in any proceedings before the District Commission or the State Commission or the National Commission, v  Recommend adoption of international covenants and best international practices on consumer rights to ensure effective enforcement of consumer rights; v  Undertake and promote research in the field of consumer rights; v  Spread and promote awareness on consumer rights;
19	Power of Central Authority to refer matter for investigation or to other Regulator	-
20	Power of Central Authority to recall goods, etc	v  Yes if Goods deemed Dangerous, Hazardous, Unsafe etc
21	Power of Central Authority to issue directions and penalties against false or misleading advertisements	v  Where the Central Authority is satisfied after investigation that any advertisement is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser or publisher, as the case may be, to discontinue such advertisement or to modify the same in such manner and within such time as may be specified in that order. v  May impose penalty which may extend to ten lakh rupees: v  For every subsequent contravention may extend to fifty lakh rupees. v  May prohibit the endorser of a false or misleading advertisement from making endorsement of any product or service for a period which may extend to one year v  For every subsequent contravention, prohibit such endorser from making endorsement in respect of any product or service for a period which may extend to three years. v  No endorser shall be liable to a penalty  if he has exercised due diligence to verify the veracity of the claims made in the advertisement regarding the product or service being endorsed by him.
22	Search and seizure	v  Yes can be done. v  Every document, record or article seized shall be returned to the person, from whom they were seized or who produced the same, within a period of twenty days of the date of such seizure or production.
23	Designation of any statutory authority or body to function as Central Authority	-
24	Appeal	v  Appeal against CA can be made to National Commission within 30 Days
25	Grants by Central Government	-
26	Accounts and audit	v  The accounts of the Central Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government which shall cause the same to be laid before each House of Parliament
27	Furnishing of annual reports, etc	v  Once every year – annual report to be laid before both house of parliament
28	Establishment of District Consumer Disputes Redressal Commission	v  By State Government in each district v  A President and Not less than two members in consultation with CG
29	Qualifications, etc., of President and members of District Commission	v  As per CG Instructions v  A person shall not be qualified for appointment as President, unless he is, or has been , or is qualified to be a District Judge v  Minimum 35 Years of age and a bachelor v  At least one member or the President of the District Commission shall be a woman
30	Salaries, allowances and other terms and conditions of service of President and members of District Commission	-
31	Transitional provision	-
32	Vacancy in office of member of District Commission	-
33	Officers and other employees of District Commission	-
34	Jurisdiction of District Commission	v  If Value of Goods and Services not exceeds Rs. 1 Crore. (Now revised to 50 Lakhs) v  Residential Jurisdiction of Buyer or seller
35	Manner in which complaint shall be made	v  Can be filled Electronically v  E- Daakhil introduced
36	Proceedings before District Commission	v  Every proceeding before the District Commission shall be conducted by the President of that Commission and atleast one member sitting together v  The admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint was filed
37	Reference to mediation	v  At the first hearing of the complaint after its admission, or at any later stage, if it appears to the District Commission that there exists elements of a settlement which may be acceptable to the parties it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation in accordance with the provisions of Chapter V. v  Where the parties agree for settlement by mediation and give their consent in writing, the District Commission shall, within five days of receipt of such consent, refer the Manner in which complaint shall be made.
38	Procedure on admission of complaint	v  DC shall refer a copy to opposite party within 21 Days of admission v  Opposite party to reply within 30 Days, extension of 15 Days may be granted v  For analysis of defect may be sent to Lab. The lab must submit report within 45 Days v  Decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities. v  Has powers of civil court, Judicial Proceedings
39	Findings of District Commission	v  If complaint stands then commission may order Remove Defect, Replacement, Return, Compensation, Remove Defects, Discontinuation, cease manufacturing of hazardous goods etc v  May order to pay compensation at a large to all consumers. (Minimum 25 Percent of value of goods to each consumer)
40	Review by District Commission in certain cases	v  Yes can do
41	Appeal against order of District Commission	v  Appeal to state commission within 45 Days v  If penalty imposed. Appeal can be made after 50% of amount is deposited v  No appeal in case of settlement by Mediation
42	Establishment of State Consumer Disputes Redressal Commission	v  By State Government v  A President and atleast Four members in consultation with CG
43	Qualifications, etc., of President and members of State Commission	v  As per CG Notification v  A person shall not be qualified for appointment as President, unless he is, or has been, a Judge of the High Court; v  Forty years of age v  At least one member or the President of the State Commission shall be a woman v  Ten years experience
44	Salaries, allowances and other terms and conditions of service of President and members of State Commission	-
45	Transitional provision	-
46	Officers and employees of State Commission	-
47	Jurisdiction of State Commission	v  Upto 10 Crores (Now Revised to Rs. 2 Cr.)
48	Transfer of cases	v  The State Commission may, at any stage of the proceeding, transfer any complaint pending before a District Commission to another District Commission within the State if the interest of justice so requires.
49	Procedure applicable to State Commission	v  Same as DC v  The State Commission may also declare any terms of contract, which is unfair to any consumer to be null and void
50	Review by State Commission in certain cases	v  Yes can DO
51	Appeal to National Commission	v  To National Commission within 30 Days v  An appeal may lie to the National Commission under this section from an order passed ex parte by the State Commission v  Fifty percent amount to be deposited before appeal
52	Hearing of appeal	v  90 Days for disposal of appeal
53	Establishment of National Consumer Disputes Redressal Commission	v  By Central Government
54	Composition of National Commission	v  A president and Atleast four Memebers
55	Qualifications, etc., of President and members of National Commission	v  CG Will Decide v  Maximum term 5 Years v  Reappointment can be done v  Maximum age for President and Members is 70 and 67 Respectively
56	Transitional provision	-
57	Other officers and employees of National Commission	-
58	Jurisdiction of National Commission	v  Exceeds Rs. 10 Crores (Now amended to Rs. 2 Crores)
59	Procedure applicable to National Commission	v  Same as earlier v  The National Commission may also declare any terms of contract, which is unfair to any consumer to be null and void
60	Review by National Commission in certain cases	v  Yes can do
61	Power to set aside ex parte orders	v  Yes can do
62	Transfer of cases	v  Yes can Transfer cases from one SC to other
63	Vacancy in office of President of National Commission	v  Senior Most member will discharge duties
64	Vacancies or defects in appointment not to invalidate orders	v  No act or proceeding of the District Commission, the State Commission or the National Commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof
65	Service of notice, etc	v  By registered post acknowledgment due
66	Experts to assist National Commission or State Commission	v  Where the National Commission or the State Commission, as the case may be, on an application by a complainant or otherwise, is of the opinion that it involves the larger interest of consumers, it may direct any individual or organisation or expert to assist the National Commission or the State Commission, as the case may be.
67	Appeal against order of National Commission	v  To Supreme Court within 30 Days v  Fifty percent to be deposited before appeal
68	Finality of orders	v  If no appeal then orders of all commissions are final
69	Limitation period	v  The District Commission, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen
70	Administrative control	v  Monitoring of Commissions, Making rules, Uniform Procedure etc v  National Commission controls State and State commission controls District Commissions
71	Enforcement of orders of District Commission, State Commission and National Commission	v  Every order must be enforced  in the same manner as if it were a decree made by a Court
72	Penalty for noncompliance of order	v  Shall be punishable with imprisonment for a term which shall not be less than one month, may extend to three years, v  or with fine, which shall not be less than twenty-five thousand rupees, may extend to one lakh rupees, v  or with both.
73	Appeal against order passed under section 72	v  Yes Admissible v  Within 30 Days
74	Establishment of consumer mediation cell	v  State Govt to form for DC and SC v  CG to form for NC v  Every consumer mediation cell shall submit a quarterly report to the District Commission, State Commission or the National Commission to which it is attached
75	Empanelment of mediators	v  Panel of Mediators is valid for a period of five years v  Can be re- empanelled
76	Nomination of mediators from panel	-
77	Duty of mediator to disclose certain facts	-
78	Replacement of mediator in certain cases	-
79	Procedure for mediation	-
80	Settlement through mediation	v  Mediation achieved must be in writing v  Mediator to prepare a settlement report
81	Recording settlement and passing of order	v  The District Commission or the State Commission or the National Commission, as the case may be, shall, within seven days of the receipt of the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly
82	Application of Chapter	v  This Chapter shall apply to every claim for compensation under a product liability action by a complainant for any harm caused by a defective product manufactured by a product manufacturer or serviced by a product service provider or sold by a product seller
83	Product liability action	v  For any harm caused
84	Liability of product manufacturer	v  A product manufacturer shall be liable in a product liability action, if—  (a) the product contains a manufacturing defect; or (b) the product is defective in design; or        (c) there is a deviation from manufacturing specifications; or (d) the product does not conform to the express warranty; or        (e) the product fails to contain adequate instructions of correct usage to prevent any harm or any warning regarding     improper or incorrect usage.
85	Liability of product service provider	v  Equally Liable
86	Liability of product sellers	v  Equally Liable
87	Exceptions to product liability action	v  A product liability action cannot be brought against the product seller if, at the time of harm, the product was misused, altered, or modified v  Mis- Assembling, Wrong use, Was to be used under expert supervision v  If complainant was in alcoholic/Drug use v  Not liable for something which is obvious
88	Penalty for non compliance of direction of Central Authority	v  Imprisonment which may extend to six months or v  with fine which may extend to twenty lakh rupees, v  or with both
89	Punishment for false or misleading advertisement	v  Imprisonment which may extend to two years and with fine which may extend to ten lakh rupees; v  For every subsequent offence, imprisonment which may extend to five years and with fine which may extend to fifty lakh rupees
90	Punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant	v  If does not result in any injury to the consumer, with imprisonment for a term which may extend to six months and with fine which may extend to one lakh rupees; v  If causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees; v  Causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which may extend to seven years and with fine which may extend to five lakh rupees; and (cognizable and non-bailable) v  If results in the death of a consumer, with imprisonment for a term which shall not be less than seven years, but which may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees. (cognizable and non-bailable) v   The court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence. v  Explanation.—For the purposes of this section,— (a) "adulterant" means any material including extraneous matter which is employed or used for making a product unsafe; v  "grievous hurt" shall have the same meaning as assigned to it in section 320 of the Indian Penal Code
91	Punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods	v  Causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees; v  Causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which may extend to seven years and with fine which may extend to five lakh rupees; (cognizable and non-bailable) v  Results in the death of a consumer, with imprisonment for a term which shall not be less than seven years, but may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees. (cognizable and non-bailable) v  The court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence
92	Cognizance of offence by court	-
93	Vexatious search	v  If without reason done – imprisonment upto one year and fine upto 10 thousand or both
94	Measures to prevent unfair trade practices in e-commerce, direct selling, etc	-
95	Presidents, members, Chief Commissioner, Commissioner and certain officers to be public servants	v  All deemed to be public servants
96	Compounding of offences	v  Yes but sum shall not, in any case, exceed the maximum amount of the fine, which may be imposed under this Act for the offence so compounded v  For the purposes of this sub-section, any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence
97	Manner of crediting penalty.	-
98	Protection of action taken in good faith	-
99	Power to give directions by Central Government	-
100	Act not in derogation of any other law	-
101	Power of Central Government to make rules	-
102	Power of State Government to make rules	-
103	Power of National Commission to make regulations	v  Yes with approval of CG
104	Power of Central Authority to make regulations	v  Yes with approval of CG
105	Rules and regulations to be laid before each House of Parliament	-
106	Power to remove difficulties	-
107	Repeal and savings	v  CPA 1986 is repealed

 

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