New Consumer Protection Act comes into force: Here's all you need to know!

The three decades old Consumer Protection Act, 1986 has been replaced by the newly enacted Consumer Protection Act, 2019 from Monday (20^th July 2020). The new Act aims to give a new form to the consumer dispute resolution and administration process with stricter penalties that includes jail term for misleading advertisement and adulteration. To protect and enforce the rights of consumers as a class, the new Consumer Protection Act proposes the establishment of a Central Consumer Protection Authority (CCPA). The CCPA will have the power to make interventions to prevent consumers from damages arising out from unfair trade practices. It will also have the power to initiate class-action cases enforcing refund, recall, and return of products. Including provisions for e-filing and mediation of cases, the new Act contemplates simplified dispute resolution procedures for consumers. Consumers can file complaints from anywhere and will be able to file cases in the commission nearest to them having jurisdiction to take the case. However, there will be a strict timeline fixed in the rules for mediation. Under the new Act, the manufacturers can also face jail terms and fines for misleading advertisements. Although, there is no provision for a prison term for celebrities endorsing the products, they can be banned from endorsing if findings of a case show that the advertisement was misleading. The authority will have the power to impose a penalty on a manufacturer or an endorser of up to 10 lakh and imprisonment of up to two years for misleading advertisement. Moreover, in case of injury or damage caused by defective products or deficiency in services to a consumer, a manufacturer or product seller will also be responsible for the same. There is also a provision for product liability to deter manufacturers and service providers from delivering defective products or deficient services. It also provides for enabling regulations to notify e-commerce and direct selling with a focus on the protection of interest of consumers.