Consumer Protection Act to be implemented from July 20; here's how you can act against errant sellers

The Consumer Protection Act (CPA), which was passed by the Parliament in 2019, is all set to come into effect from July 20. The new law is aimed at protecting consumers against errant manufacturers, distributors, and sellers. It also empowers the district and state consumer courts to take better action against malpractices regarding transactions in which the consumer is directly or indirectly affected.

Now, consumers can get an increased amount as compensation from errant sellers, while the punishment for the latter instances has also been made more stringent. The compensation amount is higher to the point that the consumer even can receive up to Rs. 1 lakh in case they are sold an adulterated or spurious product. The seller may also be sentenced to up to six months of jail.

And this is only in the case where the consumer has not been damaged by the product. In case they are directly or indirectly harmed by the product sold, the consumer can even receive up to Rs 5 lakh as compensation, and the jail term for the seller could extend up to seven years. If the consumer dies, the compensation could range up to Rs. 10 lakh and the seller could be sentenced to a life imprisonment term.

Here's all you need to know about the Consumer Protection Act:

The bill was introduced in the Parliament by Union Minister of Consumer Affairs, Food, and Public Distribution, Ram Vilas Paswan, on July 8, 2019. The Bill replaces the Consumer Protection Act, 1986.

 Six consumer rights have been defined in the Bill, including the right to (i) be protected against marketing of goods and services which are hazardous to life and property; (ii) be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) be assured of access to a variety of goods or services at competitive prices; and (iv) seek redressal against unfair or restrictive trade practices.

The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect, and enforce the rights of consumers.  It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.  The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.

The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.  In case of a subsequent offense, the fine may extend to Rs 50 lakh and imprisonment of up to five years.

There will also be Consumer Disputes Redressal Commissions (CDRCs), that will be set up at the district, state, and national levels.  A consumer can file a complaint with CDRCs in relation to (i) unfair or restrictive trade practices; (ii) defective goods or services; (iii) overcharging or deceptive charging; and (iv) the offering of goods or services for sale which may be hazardous to life and safety.

The District CDRC will entertain complaints where the value of goods and services does not exceed Rs one crore.  The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore.  Complaints with the value of goods and services over Rs 10 crore will be entertained by the National CDRC.

There will be additional guidelines from the central government to help seek redressals or compensations for faulty experiences of transactions from errant sellers, manufacturers, and distributors.