• UGI USER
  • Nov 07, 2023
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Consumer Protection Act, 2019

Q. In India Low consumer awareness is a cause for concern, discuss. Also, examine how the Consumer Protection Act 2019 protects their interests along with legal loopholes in it.

Structure of Answer

Introduction

  • Mention Low consumer awareness in India is a significant concern to address this issue, the Consumer Protection Act (CPA) of 2019 was brought in.

Body

  • Mention provisions of Consumer Protection Act, 2019 helping Protectconsumers Interests, with examples
  • Mention Legal loopholes in the Consumer Protection Act of 2019

Conclusion

  • Mention To ensure effectiveness of Consumer Protection Act 2019, consumer education and streamlined implementation is crucial.

Low consumer awareness in India is a significant concern that impacts consumer well-being, economic efficiency, and market integrity. To address this issue, the Consumer Protection Act (CPA) of 2019 replaced the outdated Consumer Protection Act of 1986, aiming to empower consumers, enhance their protection, and provide efficient mechanisms for grievance redressal.

Consumer Protection Act, 2019: Protecting consumers Interests

  • Enhanced Consumer Rights: The CPA 2019 reinforces consumer rights like information, choice, redress, education, and voice. It broadens the “consumer” definition to encompass online transactions.
  • Promotes Alternative Dispute Resolution (ADR): CPA encourages the use of ADR mechanisms, such as mediation and conciliation, e-filing of complaints to resolve consumer disputes, providing a faster and more cost-effective resolution for consumers.
  • Product Liability: The Act implements product liability, holding manufacturers and service providers accountable for harm caused by defective products. Johnson & Johnson compensated victims due to faulty hip implants.
  • E-commerce Regulations: E-commerce companies are required to provide detailed information about products and services, including the origin of goods. Act mandated platforms such as Amazon and Flipkart to provide details regarding the source or origin of goods, ensuring that consumers can make well-informed decisions.

Legal loopholes in the Consumer Protection Act of 2019

  • Overlapping jurisdiction: The CPA has overlapping jurisdiction with other laws, such as the Food Safety and Standards Act, 2006, and the Drugs and Cosmetics Act, 1940. This can lead to confusion and delays in resolving consumer complaints.
  • Inadequate E-commerce Regulation: The Act doesn’t comprehensively address e-commerce challenges. Some e-commerce platforms may avoid liability, claiming they are intermediaries.
  • Transfer of Existing Cases: The Act doesn’t specify whether existing cases will be transferred due to the change in pecuniary jurisdiction. Clarity is required on whether this jurisdictional change will affect ongoing cases, or if it applies only to fresh cases.
  • Appeal Mechanism: appeals against CCPA orders can only be filed before the National Commission raises questions about the criteria and circumstances under which the National Commission will entertain such cases.
  • Regulation of Unorganized Sectors: The Act primarily targets organized sectors, leaving consumers in unorganized sectors with limited protection.

The Consumer Protection Act, 2019, is a significant step toward strengthening consumer rights in India. To ensure its effectiveness, consumer education and streamlined implementation are crucial for empowering consumers.