Consumer Protection Act 1986 Along With Consumer Protection Act 2019: A Statutory Analysis

THE CONSUMER PROTECTION BILL, 1986

The Consumer Protection Bill 1986 seeks to provide better protection to the interests of the consumers and was enacted for the purpose of making provisions for the establishment of consumer councils and other authorities for the settlement of consumer disputes and for matters connected therewith. It seeks, inter-alia, to promote and protect the rights of the consumers such as-

• The right to be protected against the marketing of goods which are hazardous to life & property;
• The right to be informed about the quality, quantity, clarity, standard and price of goods to protect consumers against unfair trade practices;
• The right to be assured, wherever possible, access to an authority of goods at competitive prices;
• The right to be heard and to be assured the customer’s interest will receive due consideration at appropriate forums;
• The right to seek redressal against unfair trade practice or unscrupulous exploitation of consumers &;
• The right to consumer education.

To provide speedy & simple redressal to consumer disputes, quasi-judicial machinery has been set up at the district, state & central level. The quasi-judicial bodies observe the principles of natural justice & have been empowered to give reliefs of specific nature and to award, wherever appropriate, compensation to consumers.

OBJECTS OF THE ACT

The preamble to the Act indicates that the object of this Act is to make provisions for the establishment of the consumer councils & other authorities for the settlement of consumer disputes. The object is to achieve by the establishment, interalia of redressal agencies. Three such redressal agencies that were established under this Act are-

1. District Forum
2. State Commission
3. National Consumer Dispute Redressal Commission

It has to be kept in mind that the act was made for the betterment & protection of the consumers for the settlement of consumer disputes.

SCOPE OF THE ACT

The Consumer Protection Act, 1986 is a milestone in the history of socio-economic legislation and is directed towards achieving public benefit. In fact, the law meets long felt the necessity of protecting a common man from being cheated by fraud advertisements and other unfair practices. Various legislations & regulations permitted the state to intervene & protect the interest of the consumers which became a haven for unscrupulous people who cheat their way to earn money and exploit their consumers. The importance of this Act lies in promoting the welfare of society by enabling the consumer to participate directly in the market economy. It attempts to remove the help-less-ness of the consumer which they face against powerful businesses described as a network of rackets or a society in which the producers have secured power to rope the rest and the might of public bodies which are degenerating into store-house of inaction where papers do not move from one desk to another as a matter of duty and responsibility but for extraneous consideration leaving the common man helpless, bewildered and shocked.

CONSUMER PROTECTION ACT 2019

After various amendments over the years, in mid-August of 2019, the Consumer Protection Act 2019 was passed which enhances and protects the Consumer Rights. The digital age has almost ushered in a new era of commerce and digital branding.

The 2019 act continues to have Consumer Disputes Redressal Commissions at District, State & National level. Further, the jurisdiction of the Consumer Commission has also been expanded to allow complaints to be made where the complainant resides or personally works for gain or profit. This will somewhat lessen the burden on consumers. All in all, it is a positive step towards reformation and development of consumer laws. Now consumers can take a sigh of relief as the Consumer Protection Act 2019 has replaced the 3-decade old Consumer Protection Act, 1986. The exact definition of consumer rights is the right to be informed about the variety of goods or services such as its quality, quantity, potency, purity, and price along with the standard. As we know, being a consumer we have 7 rights that were granted to us. Each & every right has its own quality and importance but besides this, after the new amendment act, 5 new rights have been introduced-

• The right to file a complaint anywhere.
• The right to seek compensation under product liability.
• Right to protect consumers as a class.
• Right to seek a hearing using video conference.
• The right to know why the complaint was rejected.

Under the new Act, there is a provision for the Central Government to set up a Central Consumer Protection Authority to enforce, protect and promote the rights of consumers & it will empower it to investigate, refund, recall & impose penalties and so on. It will regulate all the matters related to violation of consumers' rights, unfair trade practice and fraud advertisements to misleads consumers.

SALIENT FEATURES OF THE ACT

Following are the salient features of the Act-

1. Establishing the Central Consumer Protection Authority as a relief to the consumers
2. A simplified Dispute Resolution mechanism
   1. Pecuniary jurisdiction enhanced to-
      District Commission-Up to Rs. 1 Crore
      State Commission- Between Rs. 1 Crore-10 Crore
      National Commission-Above Rs. 10 Crore
   2. Empower the Consumer commission to enforce their orders
   3. Deemed Admissibility after 21 days of filing
   4. Appeals only on the question of law after 2nd stage
   5. Ease of approaching Consumer commission.
3. Mediation – An ADR mechanism where the scope for early settlement exists.
4. Product Liability- Where a manufacturer or product seller is held responsible to compensate for any kind of injury or damage products or deficiency in services.

[The author, Upasana Borah is a 4th Year law student at NEF LAW COLLEGE, ASSAM affiliated to Gauhati University]