The Consumer Protection Act, 2019: Preamble, Extent and Definitions | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS
Consumer Protection Act, 2019: Notes for Bankers
Author: Bank Theory
Preamble, Purpose and Extent
The Consumer Protection Act, 2019 was enacted to provide for the protection of the interests of consumers and for the establishment of authorities for timely and effective administration and settlement of consumer disputes.
- Preamble: Seeks to protect consumer rights through redressal mechanisms.
- Extent: Applicable to the whole of India except Jammu & Kashmir (now includes UTs).
Act not Overriding on Any Other Law
The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force.
Salient New Aspects of CPA 2019
- Establishment of Central Consumer Protection Authority (CCPA)
- Introduction of Product Liability
- Unfair contracts and penalties defined
- E-filing and Mediation Mechanism
- Enhanced pecuniary jurisdiction
Definitions
- Consumer: A person who buys any goods or avails any services for consideration
- Complaint: Allegation made in writing regarding unfair trade practice or defective goods
- Product Liability: Responsibility of manufacturer/seller for defective product
Various Fora and Councils
- District Commission
- State Commission
- National Commission
- Central/State/District Consumer Protection Councils
Central Consumer Protection Authority (CCPA)
CCPA is empowered to promote, protect and enforce the rights of consumers and can initiate class action suits, recall unsafe goods, and penalize misleading advertisements.
Consumer Disputes Redressal Commissions
- District Commission: Up to ₹50 lakhs
- State Commission: ₹50 lakhs to ₹2 crores
- National Commission: Above ₹2 crores
Jurisdictions of Commissions
Jurisdiction is based on the value of goods or services paid as consideration by the consumer.
Complaints to District and State Commissions
- Can be filed electronically
- May be made by consumer, representative, or recognized consumer association
Appeals Against Orders
- District to State Commission – 45 days
- State to National Commission – 30 days
- National to Supreme Court – 30 days
Other Aspects
- Penalty for misleading advertisements
- False or misleading representations are punishable
Mediation Process
Introduced to enable out-of-court settlement of disputes through designated Mediation Cells attached to Commissions.
Product Liability
Manufacturers and sellers are responsible for harm caused due to defective products, including compensation and penalties.
Unfair Contracts
Unfair terms in contracts that cause significant loss to consumers can be declared null and void.
Data Protection
Entities collecting consumer data must ensure protection of personal data and comply with privacy laws.
MCQs on Consumer Protection Act, 2019
1. What is the pecuniary jurisdiction of the District Commission under CPA 2019?
- A) Up to ₹20 lakhs
- B) Up to ₹50 lakhs ✔
- C) Up to ₹1 crore
- D) Up to ₹2 crores
2. Which authority can recall unsafe goods?
- A) State Commission
- B) District Commission
- C) Supreme Court
- D) CCPA ✔
3. What is introduced for alternative dispute resolution in CPA 2019?
- A) Arbitration
- B) Mediation ✔
- C) Conciliation
- D) Negotiation
4. Under CPA 2019, who is liable under product liability?
- A) Only Manufacturer
- B) Only Seller
- C) Only Advertiser
- D) Manufacturer, Seller, and Service Provider ✔
5. How long does a consumer have to appeal against the order of a District Commission?
- A) 30 days
- B) 60 days
- C) 45 days ✔
- D) 90 days
6. The Consumer Protection Act, 2019 repeals which previous Act?
- A) CPA 1986 ✔
- B) CPA 2002
- C) CPA 1999
- D) CPA 2012
7. Which of the following is NOT a consumer forum?
- A) District Commission
- B) Supreme Consumer Court ✔
- C) State Commission
- D) National Commission
8. CPA 2019 includes protection against which of the following?
- A) Unfair contracts ✔
- B) Industrial disputes
- C) Labour laws
- D) Company insolvency
9. Who heads the CCPA?
- A) Prime Minister
- B) Chief Justice of India
- C) Secretary of Consumer Affairs
- D) Chief Commissioner appointed by Central Government ✔
10. Which section of CPA 2019 allows for filing complaints electronically?
- A) Section 17
- B) Section 35 ✔
- C) Section 24
- D) Section 45
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