New Consumer Protection Act Comes Into Force; Know What Are Consumer Rights, Offences & Penalties On Violation

The provisions of the extensive act pertains also to what constitute an offence and what are the related penalties for manufacturing, distributing and selling of any spurious or adulterated product.

(Photo by NOAH SEELAM / AFP)

New Delhi: The Consumer Protection Act of 2019 comes into force on Monday , July 20, providing district, state and national mediums for consumers’ grievance redressal . The new law will ensure that if any person manufactures for sale or stores or sells or distributes or imports any spurious goods shall be punished with imprisonment for a term which may extend to seven years and with fine which may extend to five lakh rupees, if such act causes injury resulting in grievous hurt to the consumer. It ensures that complainant can report her or his grievance at a district or state consumer commission from the location where the complainant resides rather than from where the service of the product was bought. The notification specifies objectives and functioning of Central Consumer Protection Council, State Consumer Protection Councils and District Council. It provides for establishment of Central Consumer Protection Authority, establishment of District Consumer Disputes Redressal Commission and establishment of State Consumer Disputes Redressal Commission. What is the Consumer Protection Act? Consumer Protection Act, 2019 is an Act of the Parliament of India. It repeals and replaces the Consumer Protection Act, 1986. The Bill for this was introduced in the Lok Sabha on 8 July 2019 by the Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan. It was passed by Lok Sabha on 30 July 2019 and later passed in Rajya Sabha on 6 August 2019 The bill received assent from President Ram Nath Kovind on 9 August, and was notified in The Gazette of India on the same date. What are consumer rights under the Act? As per the Act, consumer rights include the following:

• The right to be protected against the marketing of goods, products or services which are hazardous to life and property
• The right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices;
• The right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices
• The right to be heard and to be assured that consumer's interests will receive due consideration at appropriate fora
• The right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers
• The right to consumer awareness

What constitutes an offence and who can be penalized? The provisions of the extensive act pertains also to what constitute an offence and what are the related penalties for manufacturing, distributing and selling of any spurious or adulterated product.

• Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees.
• Whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any product containing an adulterant shall be punished, if such act:

(a) 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; (b) 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; (c) 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 (d) 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.

• Whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any spurious goods shall be punished, if such act—

(a) 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; (b) 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; (c) results in the death of a consumer, with imprisonment for a term which shallnot be less than seven years, but may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees.

• The Director General or any other officer, who knows that there are no reasonable grounds for so doing, and yet searches, or causes to be searched any premises; or seizes any record, register or other document or article, shall, for every such offence, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees or with both