No matter how attractive or appealing something may look on paper, it is of no use whatsoever if it does not achieve its objective, and worse when it actually harms the very cause it is supposed to espouse. This is the case with the Consumer Protection Act 2019 which comes into effect from today, repealing the earlier enactment of 1986.

Let us look at the existing scenario. The District Consumer Forum which till now had a pecuniary limit of Rs 20 lakhs, are mostly located in premises which are too small, especially in urban areas where the filing of cases is more and there is a scarcity of adequate space. Consequently, files are spilling over even in corridors, and there is hardly any place for movement. The Forum is manned by just one or maximum two clerks, who find it difficult to cope with the existing work load of accepting complaints, scrutinising them, preparing and despatching notices, accepting of deposits and investing the money during the pendency of appeals, issuing certified copies of orders, etc.

Similarly, there is also a dearth of stenographers, and there is just one stenographer who has to sit on the dais during court hours to take dictation of daily proceedings of each case (known as the case roznama), and thereafter take dictation of judgments from the Presiding Officer as well as two members, Imagine the plight when there is just one steno between three persons. Consequently, judgments are invariably delayed, sometime by two to six months. Besides, when the steno proceeds on leave due to an illness or for some family occasion, the work of the forum comes to a grinding halt.

Read the full article at https://www.mxmindia.com/2020/07/why-the-new-consumer-protection-act-is-a-death-knell-of-consumer-rights/

The main features of The Consumer Protection Act, 2019 are as follows:-

1. District forum is renamed as District Commission

2. The Opposite Party needs to deposit 50% of the amount ordered by District Commission before filing appeal before State Commission, earlier the ceiling was of maximum of Rs. 25,000/-, which has been removed.

3. The limitation period for filing of appeal to State Commission is increased from 30 days to 45 days, while retaining power to condone the delay.

4. State Commission shall have a minimum of 1 President and 4 Members

5. The original pecuniary jurisdiction of District Commission shall be uptil Rs. 1 Crore, State Commission from 1 Cr – 10 Cr. And NCDRC to be more than Rs. 10 crore

6. Now complainant can also institute the complaint within the territorial jurisdiction of the Commission where the complainant resides or personally works for gain besides what was provided earlier

7. Section 49(2) and 59(2) of the new act gives power to the State Commission and NCDRC respectively to declare any terms of contract, which is unfair to any consumer, to be null and void.

8. A second appeal to NCDRC has been provided U/s 51(3) if there is a substantial question of law involved in the matter

9. Power of revision can still be exercised by NCDRC U/s 58(1)(b) and by State commission under 47(1)(b) of the Act.

10. Power of review has been conferred to District Commission, State Commission and NCDRC U/s 40, 50 and 60 of the Act respectively

11. NCDRC can hear appeals against the order of Central Authority by virtue of Section 58 of the Act

12. Period of limitation in filing of complaint remains 2 years with a provision for condonation of delay power U/s 69 of the Act

13. Section 70 provides for administrative control of State Commission over District Commission and that of NCDRC over State Commission. It inter alia provides for investigation into any allegations against the President and members of a State Commission / District Commission and submitting inquiry report to the State Government concerned along with copy endorsed to the Central Government for necessary action

14. Section 71 confers power of execution as provided Under Order XXI, The Code of Civil Procedure, 1908 with such limitation as provided in the section

15. Mediation is given statutory status by way of introduction of Section 74 in the new Act

16. A product liability action may be brought by a complainant against a product manufacturer or a product service provider or a product seller, as the case may be, for any harm caused to him on account of a defective product.

17. Chapter III of the Act provides for creation of Central Authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class

18. The Central Authority shall have an Investigation Wing headed by a Director General for the purpose of conducting inquiry or investigation under this Act as may be directed by the Central Authority

19. The Act of 2019 has come into effect w.e.f. 9.8.19 and old Act of 1986 stands repealed, subject to section 1(3) of the New Act.

20. Rules regarding appointment, conditions of service etc. of the Members are to be notified soon.

*The list is not exhaustive and the above is just a bird’s eye view only of the new Act. For more / exact details kindly refer to the notification dated 9.8.19 notifying the Act.

Consumer Protection Act, 2019 notification