Important features of New Consumer Protection Act.. Adv. ROHiT ERANDE. ©
What's there in New Consumer Protection Act ? .*
Adv. ROHiT ERANDE. ©
The New, Consumer Protection Act, 2019 (CPA) has been put into effect from 20th July, 2020, barring few sections. The old Consumer Protection Act, 1986 has been now repealed.
Let's see the salient features of this Act, :
We all are aware that the CPA is a social legislation and its main aim and object reads as under
"An Act to provide for the better protection of the Interest of Consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith".
A) Inclusion of Online goods /services ordered :
The Definition of Consumer has been changed to include a consumer who buys / procures goods/services, either offline or online through electronic means or by telephoning or multi-level marketing. The new rules have been framed to deal with complaints relating to e-commerce business activities.
B) *Jurisdictional Changes* :
i) The Pecuniary Jurisdiction of District, State and National Forums have been increased and the Doctors are scared of this amendment.
Now Jurisdiction of District Forum has been increased from 20 lakhs upto Rs.1 Crore. The State forum Jurisdiction has been increased to Rs.10 Crores and above Rs.10 Crore, all the disputes shall be dealt directly by National Forum.
*Please Don't succumb to Fake news on Social Media* :
In these days, people easily believe upon anything and everything that is circulated on Social media and Hon. Supreme Court has also expressed its concern over spread of fake news, that caused lives of migrant workers.
i) Pecuniary Jurisdiction :
*The point here is increase in Pecuniary Jurisdiction does not mean that Opponent will be liable to pay that much compensation.* There are some misleading messages have become viral on Social media. Previously also any claims above Rs. 1 crore without any limits were filed in National Commission.
Please always remember that increasing or changing the pecuniary Jurisdiction is the common thing under Law. In Civil matters also the jurisdiction is changed from time to time.
Merely filling of a complaint does not mean that the Compliant will always be decided in favour of the Complainant. Therefore do not get panic and think for higher premium insurance policies. The Courts do not award the compensation as prayed for, they have to follow certain criteria.
In majority, all the complaints will be filed in District Forum. There were many cases where just to confirm jurisdiction on Higher Forum, the complaints were filed with inflated claims and same were dismissed too.
ii) Territorial Jurisdiction :
The Law is clear since beginning that any compliant, subject to pecuniary jurisdiction, can be filed where the Complainant or the Opponent ordinary resides or carries on business or where the cause of action has arisen partly or in whole. This provision may be of little concern for Opponents.
C) Appeal and Review :
i) If you want to file an Appeal, first deposit 50% of the amount awarded :
In Civil Courts also, if the aggrieved party wants to file an appeal, he/she has to deposit certain amount so that trial court judgment /order can be stayed. Likewise, this new provision has been introduced. Under this new provision, if the aggrieved party wants to approach higher forum, then the 50% of the amount awarded by the forum has to be deposited in higher forum, then only Appeal can be filed. This provision is applicable right upto filing of an appeal against order of National Commission in Hon. Apex Court
ii)The time limit to file appeal has been increased from 30 days to 45 days, with power to condon delay.
iii) The Second Appeal to National Commission can be filed only if there is substantial question of Law involved. Power of revision of State and National Commission has been retained. But most importantly, power to 'review' has been conferred to District, State and National Commission. The law of "review" has been settled in civil matters. Only when there is an error appearant on the face of record, review petitions are entertained. Review means recalling the order passed by the same judge !.
D) *Qualification of Judges /Members* :
The New Act provides that Central Government to prescribe for qualification, term of appointment, method of requirement etc. In earlier Act, there was direct mention of qualification of members of the Forum. E) False and Misleading advertisement :
This section has not been put into effect (Sec.89). This section provides that whoever makes such false/misleading advertisement shall be liable for fine which may extend to Rs.10 lakhs and imprisonment that may extend to 2 years, for the first offence and for subsequent offences, the fine may increase to Rs.50 lakhs and the imprisonment may extend to 5 years. Let's hope this Section shall come into effect soon.
F) *Unfair Trade Practice* : This Definition Sec.2(47) is wide enough to include unfair methods and unfair or deceptive practice. e.g. Falsely representing that the services are of a particular standard, quality or grade or Non issuance of receipt of money received amounts to unfair trade practice.
Terms of contract to be declared as Null and Void :- (Sec.49& 59 )
This is very important provision and it tantamount with the powers of civil court. The State and National Commissions have power to declare such terms of contract as null and void which are unfair to Consumer.
G) *Product Liability* : By this provision, if any harm is caused to the Consumer by any defective product, compensation can be claimed by the Consumer, subject to certain exceptions. Chapter VI deals with this topic extensively.
H) Steps towards e-filing - The provisions for e-filing of complaints /appeals have been made. The State Govt. has to make rules in this regard.
I) The Mediation or Alternate Disputes redressal mechanism is introduced. In simple words it allows you to amicably settle the dispute. Most important, it is never compulsory to settle the matter in mediation. It's completely optional to either of the party. Mediation Rules also have been enacted separately.
J) The New Act provides for the establishment of an executive agency to be known as the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers; make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products, etc. This fills an institutional void in the regulatory regime extant.
K) Execution of orders :
The Act provides that orders passed by all the forums can be executed as if it were a Decree of a Civil Court in a suit, as per provisions of Order 21 of CPC. The person who fails to comply with the orders is liable to be punished with fine and/or imprisonment.
*Always remember that one cannot stop any one from approaching the Court, it is the constitutional right available to the citizen. However burden lies on the Complainant him/her to prove his/her case.*
Thanks and Regards,
Adv. Rohit Erande.
Pune. ©
Adv. ROHiT ERANDE. ©
The New, Consumer Protection Act, 2019 (CPA) has been put into effect from 20th July, 2020, barring few sections. The old Consumer Protection Act, 1986 has been now repealed.
Let's see the salient features of this Act, :
We all are aware that the CPA is a social legislation and its main aim and object reads as under
"An Act to provide for the better protection of the Interest of Consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith".
A) Inclusion of Online goods /services ordered :
The Definition of Consumer has been changed to include a consumer who buys / procures goods/services, either offline or online through electronic means or by telephoning or multi-level marketing. The new rules have been framed to deal with complaints relating to e-commerce business activities.
B) *Jurisdictional Changes* :
i) The Pecuniary Jurisdiction of District, State and National Forums have been increased and the Doctors are scared of this amendment.
Now Jurisdiction of District Forum has been increased from 20 lakhs upto Rs.1 Crore. The State forum Jurisdiction has been increased to Rs.10 Crores and above Rs.10 Crore, all the disputes shall be dealt directly by National Forum.
*Please Don't succumb to Fake news on Social Media* :
In these days, people easily believe upon anything and everything that is circulated on Social media and Hon. Supreme Court has also expressed its concern over spread of fake news, that caused lives of migrant workers.
i) Pecuniary Jurisdiction :
*The point here is increase in Pecuniary Jurisdiction does not mean that Opponent will be liable to pay that much compensation.* There are some misleading messages have become viral on Social media. Previously also any claims above Rs. 1 crore without any limits were filed in National Commission.
Please always remember that increasing or changing the pecuniary Jurisdiction is the common thing under Law. In Civil matters also the jurisdiction is changed from time to time.
Merely filling of a complaint does not mean that the Compliant will always be decided in favour of the Complainant. Therefore do not get panic and think for higher premium insurance policies. The Courts do not award the compensation as prayed for, they have to follow certain criteria.
In majority, all the complaints will be filed in District Forum. There were many cases where just to confirm jurisdiction on Higher Forum, the complaints were filed with inflated claims and same were dismissed too.
ii) Territorial Jurisdiction :
The Law is clear since beginning that any compliant, subject to pecuniary jurisdiction, can be filed where the Complainant or the Opponent ordinary resides or carries on business or where the cause of action has arisen partly or in whole. This provision may be of little concern for Opponents.
C) Appeal and Review :
i) If you want to file an Appeal, first deposit 50% of the amount awarded :
In Civil Courts also, if the aggrieved party wants to file an appeal, he/she has to deposit certain amount so that trial court judgment /order can be stayed. Likewise, this new provision has been introduced. Under this new provision, if the aggrieved party wants to approach higher forum, then the 50% of the amount awarded by the forum has to be deposited in higher forum, then only Appeal can be filed. This provision is applicable right upto filing of an appeal against order of National Commission in Hon. Apex Court
ii)The time limit to file appeal has been increased from 30 days to 45 days, with power to condon delay.
iii) The Second Appeal to National Commission can be filed only if there is substantial question of Law involved. Power of revision of State and National Commission has been retained. But most importantly, power to 'review' has been conferred to District, State and National Commission. The law of "review" has been settled in civil matters. Only when there is an error appearant on the face of record, review petitions are entertained. Review means recalling the order passed by the same judge !.
D) *Qualification of Judges /Members* :
The New Act provides that Central Government to prescribe for qualification, term of appointment, method of requirement etc. In earlier Act, there was direct mention of qualification of members of the Forum. E) False and Misleading advertisement :
This section has not been put into effect (Sec.89). This section provides that whoever makes such false/misleading advertisement shall be liable for fine which may extend to Rs.10 lakhs and imprisonment that may extend to 2 years, for the first offence and for subsequent offences, the fine may increase to Rs.50 lakhs and the imprisonment may extend to 5 years. Let's hope this Section shall come into effect soon.
E) False and Misleading advertisement :
This section has not been put into effect (Sec.89). This section provides that whoever makes such false/misleading advertisement shall be liable for fine which may extend to Rs.10 lakhs and imprisonment that may extend to 2 years, for the first offence and for subsequent offences, the fine may increase to Rs.50 lakhs and the imprisonment may extend to 5 years. Let's hope this Section shall come into effect soon.
Terms of contract to be declared as Null and Void :- (Sec.49& 59 )
This is very important provision and it tantamount with the powers of civil court. The State and National Commissions have power to declare such terms of contract as null and void which are unfair to Consumer.
G) *Product Liability* : By this provision, if any harm is caused to the Consumer by any defective product, compensation can be claimed by the Consumer, subject to certain exceptions. Chapter VI deals with this topic extensively.
H) Steps towards e-filing - The provisions for e-filing of complaints /appeals have been made. The State Govt. has to make rules in this regard.
I) The Mediation or Alternate Disputes redressal mechanism is introduced. In simple words it allows you to amicably settle the dispute. Most important, it is never compulsory to settle the matter in mediation. It's completely optional to either of the party. Mediation Rules also have been enacted separately.
J) The New Act provides for the establishment of an executive agency to be known as the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers; make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products, etc. This fills an institutional void in the regulatory regime extant.
K) Execution of orders :
The Act provides that orders passed by all the forums can be executed as if it were a Decree of a Civil Court in a suit, as per provisions of Order 21 of CPC. The person who fails to comply with the orders is liable to be punished with fine and/or imprisonment.
*Always remember that one cannot stop any one from approaching the Court, it is the constitutional right available to the citizen. However burden lies on the Complainant him/her to prove his/her case.*
Thanks and Regards,
Adv. Rohit Erande.
Pune. ©
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