Consumer Rights

Consumers in a particular society play an essential role in the economic system of the nation, and their consumption system affects the economy, therefore a country needs a law to protect the interests of the consumers, for this purpose Consumer Protection Act formulated in the year 1986. However, with the industrial revolution, development in the international trade and commerce and opening of various domains in business (eg. e-commerce), there was an urgent need for a new Act which would address new types of grievances of the consumers. The Consumer Protection act, 2019 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. The Act came into effect by 20 July 2020, while certain other provisions of the Act like establishing the Central Consumer Protection Authority came into effect from 24 July 2020. CHANGES BROUGHT UNDER THE NEW ACT ​KEY POINTS ​OLD ACT NEW ACT ​Pecuniary Jurisdiction District Forum: up to 20 lacsState Commission: from 20 lacs to 1 croreNational Commission: from 1 crore and above ​District forum: up to 50 lacsState Commission: from 50 lacs to 2 croresNational Commission: from 2 crore and above Basis to decide pecuniary jurisdiction In the case of Ambrish Kumar Shukla & Ors v. Ferrous Infrastructure Pvt. Ltd it was settled that for the purpose of determining the pecuniary jurisdiction of a consumer forum under 1986 Act, the consideration paid or agreed to be paid by the consumer at the time of purchasing the goods or hiring or availing of the services, as the case may be, plus the amount of the compensation, is to be considered. ​In the case of M/s Pyaridevi Chabiraj Steels Pvt. Ltd. v. National Insurance Company Ltd. & Ors. the NCDRC held that under the provisions for determining the pecuniary jurisdiction of the District Commission, State Commission or the NCDRC, the value of the goods or services paid as consideration alone has to be taken, and not the value of the goods or services purchased/taken Territorial Jurisdiction ​Where seller has his/her office ​Where complainant resides or works Appeal Within a period of 30 days from the date of order of District ForumProvided 50% of award amount or Rs 25000 to be deposited whichever is less Within a period of 45 days from the date of the order of District ForumProvided 50% of award amount to be awarded ​Unfair Trade Practices ​Section 2(1)(r) of CPA, 1986 provides six types of unfair trade practices ​Section 2(47) of CPA, 2019 adds 4 more types of unfair trade practices to the list Authority ​District consumer forumState consumer forumNational Consumer Dispute Redressal Commission District commissionState commissionNational Consumer Dispute Redressal Commission Composition of State Commission ​President and 2 other members ​President and 4 other members Appointment ​Selection Committee (comprising a judicial member and other officials) will recommend members on the Commissions ​No provision for Selection Committee. Central Government will appoint through notification. Penalties ​If a person does not comply with the orders of the Commissions, he/she may face imprisonment between 1 month and 3 years or fine betweenRs 2000 and Rs 10000 or both If a person does not comply with the orders of the Commissions, he/she may face imprisonment up to 3 years or a fine not less than Rs 25000, extendable to 1 lakh or both NEW PROVISIONS INCORPORATED UNDER CONSUMER PROTECTION ACT Ayush Khare Symbiosis Law School Nagpur