Here's Why You Need To Know About The New Consumer Protection Act

This manual can help you out with the know-how of the New Consumer Protection Act and guide you to file a complaint if required. 

How well aware are you of consumer rights? Do you know what to do in case you fall victim to a misleading advertisement? Are you clear with the procedure of filing a complaint in the Consumer Forum? The answer for most of us remains no. Most of us tend to remain ignorant about the various aspects of the Consumer Protection Act (CPA). Silver Talkies Know Your Rights Series presented ‘The New Consumer Protection Act’ on Friday by Prasanna Mysore, Independent Corporate Laws Consultant, Arbitrator and Mediator. Takeaways from the informative talk to help you get smart with consumer rights.

What is the new Consumer Protection Act?

The Consumer Protection Act 2019 replaced the three-decade-old Consumer Protection act 1986 on July 20, 2020. The 2019 Act has been introduced to establish a Central Consumer Protection Authority (CCPA) for safeguarding and enforcing the interests of the consumers, ensure timely and effective redressal of consumer disputes, protect the consumers from the nuisance of online trading and ensure that they are not misled by false advertising. The Act specifies that each consumer has the right to safety, the right to be informed, to be heard, to choose, to seek redressal and the right to consumer awareness.

How can the Act Help us?

1) It can protect us against hazardous goods and services

Every consumer has the right to be protected against goods and services which are hazardous to life and property. The manufacturer or seller of a defective product is compelled to compensate a consumer for the injuries caused by the defective product. However, product liability is subjected to certain conditions.

there is a manufacturing defect in the purchased product

• the design of the product is defective
• the product deviates from manufacturing specifications
• the product does not conform to the express warranty given by the manufacturer or
• the product does not contain adequate instructions or warning of correct usage to prevent harm

2) Protection against medical negligence

All kinds of medical negligence falls under the purview of consumer protection. Some instances when a doctor or a hospital would be liable to compensate a consumer for medical negligence include the following.

• If a doctor prescribes medicines for gastric problems instead of referring the patient to a cardiologist when a patient is found to have an abnormal ECG.
• When an unnecessary surgery is performed due to misdiagnosis or if conventional treatment was available for the diagnosed ailment.
• If the health condition of the patient worsens due to delay in diagnosis.
• If due care and caution were not taken by a physician when treating a patient.

3) Protection against misleading advertisements

Firstly, what’s a misleading ad?

An advertisement that falsely describes a product or service, gives a false guarantee that could be misleading for consumers, conveys a representation that would constitute an unfair trade practice or deliberately hides important information. Put ad example.

What can the consumer do?

A consumer may file a complaint against a manufacturer for any misleading advertisement which deceives and harms the interests of consumers. The endorsers for such misleading videos may also be penalised by the CCPA along with the trader, manufacturer, advertiser or publisher. They shall either modify the advertisement or discontinue it.

4) Protection against unfair e-commerce activities

All of us are avid shoppers of e-commerce entities like Amazon, Flipkart and more. The 2019 Act requires e-commerce to provide relevant information so that consumers can make an informed decision when purchasing a product. Any product or service from the e-tailer will be considered to be deficient if relevant information is withheld from the consumer. As a result, a consumer can file a complaint against the e-tailer.

Did you know:

Under the new Act, e-commerce entities must appoint a grievance officer whose name, contact details, and designation should be available on the online platform.

5) You can also file a complaint for the following unfair trade practices

• A bill or cash memo or receipt is not issued for the products purchased
• Seller refuses to take back defective goods, or discontinue defective services purchased, or to provide a refund within the period stipulated in the bill or receipt. If a period is not mentioned in the bill, then within 30 days.
• A manufacturer or service provider falsely represents himself or herself as a consumer and posts reviews on products or services rendered to mislead potential consumers.

6) A complaint can be filed in case of unfair contract such as

• In a trade contract, you are required to provide an excessive security deposit for the performance of the contract.
• If you are required to pay a penalty which is not proportionate to the loss occurred due to breach of contract.
• If the trader can unilaterally terminate a contract without reasonable cause.
• A trader imposes any charge, obligation or condition which puts you at a disadvantage.

How to file a complaint?

You can file a complaint at the relevant Consumer Dispute Redressal Commission to get compensated. Here are some little known facts.

• You can now file complaints electronically and have them heard by video-conferencing.
• You can file the complaint in the commission in your city of residence. This is helpful as earlier, consumers had to file complaints at the place where the transaction took place, generally, the place where the manufacturer or service provider is situated.
• Once a complaint is filed, you need to wait only for a maximum of 3 weeks (21 days) for the complaint to be admitted.

The disputes can also be settled through mediation. The Commission can direct both parties to settle the dispute based on the consent of both parties.

Keep this manual handy whenever you face difficulty and utilize your consumer rights well.