-Jaya Narwani(Class of 2021, IBS Hyderabad)
Amazon, Flipkart, eBay and the list goes on increasing. Each day, a new E-commerce website takes birth to ease the world consumer base. While sitting in the comfort of your sofa, you choose your favourites and with a click, it’s yours. In 1986, no one had the slightest idea that technology and commerce would be so interlinked. That they’ll almost become synonymous.
With the advent of globalisation and the technological advancements achieved over the course of three decades, we have reached a point where even the education is being over taken by what we call the Artificial intelligence. And with these changes, the one sector that was impacted the most was the sector that includes you and me and a million other consumers like us.
The Consumer Protection Act, 2019 is a move to protect us, the tech savvy generation that has resorted to becoming a couch potato in the dimension of a sliced chip.
Reasons for Implementation of 2019 Act
Consumer Protection Act of 1986 was implemented with a purpose of safeguarding the rights of a consumer in the country, which has been amended multiple times owing to the contemporary changes in consumer behaviour. The objective behind the implementation of the 2019 act, which completely repeals the provisions of the previous act, is to come at par with the E-consumerism which is prevalent in the country in the present circumstances. The 2019 act seeks to establish certain new definitions and modified provisions that are instrumental in the present-day drifting capitalist economy.
Consumer Protection Act, 2019 changes the provisions with 180-degree view keeping the heart and soul of 1986 act still intact. Introduction of central regulator, bringing E commerce under surveillance, increasing pecuniary jurisdiction, imposing of penalty for misleading advertisements not only on the advertiser but also upon the endorser are some of changes of the Act.
Key changes made by the 2019 Act
| CONSUMER PROTECTION ACT, 1968 | CONSUMER PROTECTION ACT, 2019 |
| This act did not establish any central authority. | Central Consumer Protection Authority (CCPA) to be set up. |
| No provision for product liability. | Claims for product liability can be made against service provider, manufacturer and seller. |
| Pecuniary Jurisdiction: District- Up to Rs 20 lakh State- Rs 20 lakh-Rs 1 crore National- Above Rs 1 crore | Pecuniary Jurisdiction: District- Up to Rs 1 crore State- 1 crore- 10 crore National- Above Rs 10 crore |
| Commission will be set up on recommendation made by Judicial members and other officials. | Central government will appoint the commission via notification. |
| The act is completely silent on E-commerce. | Covers all the consumer related aspects of E- commerce: 1) failure to issue bill, refusal to accept goods return within 30 days; disclosure of personal information provided in confidence; misleading advertisements. have been added to definition of unfair trade practices. 2) The definition of E- commerce has been extensively provided under the new Act. |
| Complaint could be filed where seller’s office is located. | Complaint can be filed from place of residence or where consumer works for gain. |
| No provision for alternate dispute resolution. | Provides for resolution via mediation. |
Analysis
The Consumer protection Act, 2019 encourages both the traditional and E consumers to raise their concerns and grievances with regards to any fallacy or any issue concerning the goods or services rendered to them. However, what forms a critical question at this juncture is how far can the state of Jammu and Kashmir be deprived of consumerism which maybe answered by the legislatures in the coming days. All in all, the 2019 act seems like a complete code in itself that covers all the areas which until now formed a lacuna with regards to consumer protection in the country. With time the result of 2019 act will be shown as the act is brought into action, which, prima facie appears to be more customer oriented than the 1986 act and also includes current trends of E-commerce.
With reference to over hundreds of cases that were put before the forums for decisions, it was pertinent that a new law was needed to codify and channelize the e-commerce sector. Mere rules from RBI, coming up time to time, were just not enough to protect the flooding virtual market. This Act of 2019 is a definite show stopper that will turn heads, in both admiration and deterrence.
Conclusion:
To quote Mahatma Gandhi “A consumer is the most important visitor of our premises. He is not dependent on us; we are dependent on him” It is true that the consumer drives the market and not vice versa. And if the new Consumer Protection Act is to be looked at from the point of view of a virtual marketing induced customer, it wouldn’t be wrong to crown it as the king, for it protects all your personal information to your interest that may get affected by misleading advertisements. The new statute is a welcome move from a regime that was relying on precedents rather than some real substantial legislation.
Jaya Narwani
Club Prayaas
Priyank supekar
This can create great level of awareness between the consumers. And awareness about what powers they can impose if the time comes.
aashima aggarwal
The topic which should be noticed by everyone
Prayaas_IBS
Thank You 🙂