The Consumer Protection Act, 2019 came into force on 20 July 2020, replacing the previous Consumer Protection Act of 1986 in order to safeguard the rights and interests of consumers in India while addressing the evolving challenges of the digital era.
SIGNIFICANT CHANGE IN THE PROVISIONS OF THE CONSUMER PROTECTION ACT
The Consumer Protection Act of 2019 offers a comprehensive definition of consumers, extending protection to those purchasing goods or services for personal or commercial use. Moreover, it establishes the Central Consumer Protection Authority (CCPA) and Consumer Disputes Redressal Commissions (CDRCs) at various levels to ensure swift resolution of consumer disputes and enforcement of penalties for violations. Additionally, the Act introduces the concept of product liability, holding manufacturers and sellers accountable for defective products or deficient services. It also addresses issues related to e-commerce, unfair trade practices, and misleading advertisements, imposing penalties for such violations. Simplifying the complaint process through e-filing and video hearings, enhancing jurisdictional accessibility, and incorporating mediation mechanisms further contribute to a more effective and efficient consumer protection framework. Finally, stringent penalties for adulterated goods underscore the Act’s commitment to ensuring product safety and consumer well-being.
LANDMARK JUDGEMENTS SHAPING CONSUMER PROTECTION
- In the case of Amazon Seller Services Pvt. Ltd. vs. Amway India Enterprises Pvt. Ltd. (2020), the NCDRC ruled that e-commerce platforms like Amazon can be held liable as “sellers” under the Act, affirming that online marketplaces have a duty to ensure the authenticity and quality of products sold on their platforms.
- Maruti Suzuki India Ltd. vs. Tapan Kumar Das (2021): The Supreme Court in this case held that the manufacturer cannot transfer or dilute its liability to a dealer or distributor in cases of defects in the vehicle.
- Nestle India Ltd. vs. State of Maharashtra (2018): The Bombay High Court ruled that obtaining approval from the Food Safety and Standards Authority of India (FSSAI) does not absolve manufacturers of their liability under the Consumer Protection Act.
- Horlicks Limited & Anr. vs Zydus Wellness Products Limited, (High Court of Delhi, 12th May 2020): In this case, the Delhi High Court stated that the commercial belittling the products of Horlicks Ltd. was disparaging as it lacked substantial evidence regarding the product’s quality.
- Neena Aneja and others v. Jai Prakash Associates Ltd– (Supreme Court of India, 16th March 2021): The Supreme Court here ruled that cases initiated before the commencement of the Act of 2019 would continue before the respective fora established under the Act of 1986 and should not be transferred based on the new pecuniary limits.
- National Insurance Co. Ltd. v. Harsolia Motors & Ors (Supreme Court of India, 13th April, 2023): In this case, the Supreme Court of India held that the definition of a “consumer” under the Act of 1986 includes a commercial entity as long as the goods or services purchased are not linked to any profit-generating activity.
- Connaught Plaza Restaurants Ltd. (CPRL) v. Kapil Mitra (National Consumer Redressal Commission, 15 June 2016): In this case, the complainant accused McDonald’s franchisee, CPRL, of unfair trade practices related to a promotional scheme. The NCDRC acknowledged the scheme as unfair, reducing compensation and granting relief to affected customers.
