(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may make provisions for—. (vi) imposing on the consumer any unreasonable charge, obligation or condition which puts such consumer to disadvantage; (47) “unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely:—, (i) making any statement, whether orally or in writing or by visible representation including by means of electronic record, which—. (3) The District Council shall meet as and when necessary but not less than two meetings shall be held every year. 20. (a) the costs for adjournment to be imposed by the District Commission under the second proviso to sub-section (7) of section 38; (b) the costs for adjournment to be imposed by the State Commission or the National Commission, as the case may be, under the second proviso to section 52; (c) the maintenance of any other information by the consumer mediation cell under sub-section (4) of section 74; (d) the manner of submission of quarterly report by consumer mediation cell to the District Commission, the State Commission or the National Commission under sub-section (5) of section 74; (e) the qualifications and experience required for empanelment as mediator, the procedure for empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the terms and conditions for empanelment, the code of conduct for empanelled mediators, the grounds on which, and the manner in which, empanelled mediators shall be removed or empanelment shall be cancelled and the other matters relating thereto under sub-section (2) of section 75; (f) the conditions for re-empanelment of mediators for another term under sub-section (3) of section 75; (g) the other facts to be disclosed by mediators under clause (c) of section 77; (h) the time within which, and the manner in which, mediation may be conducted under sub-section (3) of section 79; and. (4) Every order made by the District Commission under sub-section (1) shall be signed by the President and the member who conducted the proceeding: Provided that where the order is made as per majority opinion under sub-section (3), such order shall also be signed by the other member. (3) The mention of particular matters in sub-section (2) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 with regard to the effect of repeal. The objective behind the new Act was to overcome the shortcoming of the old law and to cope with the technological advancements. Given below are essential MCQs on the Consumer Protection Act to analyse your understanding of the topic. (2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (1), if the complainant satisfies the District Commission, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period: Provided that no such complaint shall be entertained unless the District Commission or the State Commission or the National Commission, as the case may be, records its reasons for condoning such delay. (5) Every consumer mediation cell shall submit a quarterly report to the District Commission, State Commission or the National Commission to which it is attached, in the manner specified by regulations. (4) For the purposes of sub-sections (2) and (3), the District Commission may, by order, require an electronic service provider to provide such information, documents or records, as may be specified in that order. 91. Duty of mediator to disclose certain facts. (iii) puts or causes to be put his own mark on any goods made by any other person; (25) “mediation” means the process by which a mediator mediates the consumer disputes; (26) “mediator” means a mediator referred to in section 75; (27) “member” includes the President and a member of the National Commission or a State Commission or a District Commission, as the case may be; (28) “misleading advertisement” in relation to any product or service, means an advertisement, which—, (i) falsely describes such product or service; or, (ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or, (iii) conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or. products or goods or services, have been or are, ordinarily sold or provided, and, for of the amount before filing appeal under second proviso to section 41; (l) the number of members of the State Commission under sub-section (3) of section 42; (m) the salaries and allowances payable to, and other terms and conditions of service of, the President and members of the State Commission under section 44; (n) the salaries and allowances payable to, and other terms and conditions of service of, the officers and other employees of the State Commission under sub-section (3) of section 46; (o) the form in which the State Commission shall furnish information to the State Government under sub-section (5) of section 70; (p) the persons in the consumer mediation cell under sub-section (3) of section 74; (q) any other matter which is to be, or may be prescribed, or in respect of which provisions are to be, or may be, made by rules. (3) The Central Authority may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and ability, who have special knowledge and experience in the areas of consumer rights and welfare, consumer policy, law, medicine, food safety, health, engineering, product safety, commerce, economics, public affairs or administration, as it deems necessary to assist it in the discharge f its functions under this Act. 49. (iv) any loss of consortium or services or other loss resulting from a harm referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii), but shall not include any harm caused to a product itself or any damage to the property on account of breach of warranty conditions or any commercial or economic loss, including any direct, incidental or consequential loss relating thereto; (23) “injury” means any harm whatever illegally caused to any person, in body, mind or property; (24) “manufacturer” means a person who—, (ii) assembles any goods or parts thereof made by others; or. (c) require any person to produce any record, register or other document or article. (a) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model; (b) falsely represents that the services are of a particular standard, quality or grade; (c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods; (d) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have; (e) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have; (f) makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; (g) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof: Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence; (h) makes to the public a representation in a form that purports to be—, (A) a warranty or guarantee of a product or of any goods or services; or. The District Commission shall have the power to review any of the order passed by it if there is an error apparent on the face of the record, either of its own motion or on an application made by any of the parties within thirty days of such order. (d) the Central Government, the Central Authority or the State Government, as the case may be: Provided that the complaint under this sub-section may be filed electronically in such manner as may be prescribed. (3) The headquarters of the Central Authority shall be at such place in the National Capital Region of Delhi, and it shall have regional and other offices in any other place in India as the Central Government may decide. (1) The Central Government shall provide the Central Authority such number of officers and other employees as it considers necessary for the efficient performance of its functions under this Act. This Act provides safety to consumers regarding defective products, dissatisfactory services, and … The Consumer Protection Act 68 of 2008 aims: to promote a fair, accessible and sustainable marketplace for consumer products and services and for that purpose to establish national norms and standards relating to consumer protection, to provide for improved standards of consumer information, 105. (1) The Central Authority shall prepare once in every year, in such form, manner and at such time as may be prescribed, an annual report giving full account of its activities during the previous year and such other reports and returns, as may be directed, and copies of such report and returns shall be forwarded to the Central Government. An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto. Copyright © TaxGuru. (i) complaints where the value of the goods or services paid as consideration exceeds rupees ten crore: (ii) complaints against unfair contracts, where the value of goods or services paid as consideration exceeds ten crore rupees; (iii) appeals against the orders of any State Commission; (iv) appeals against the orders of the Central Authority; and. 81. Replacement of mediator in certain cases. (2) The Chief Commissioner shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Central Authority: Provided that the Chief Commissioner may delegate such of his powers relating to administrative matters of the Central Authority, as he may think fit, to any Commissioner (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose. THE CONSUMER PROTECTION ACT, 2019 NO. 101. The District Collector (by whatever name called) may, on a complaint or on a reference made to him by the Central Authority or the Commissioner of a regional office, inquire into or investigate complaints regarding violation of rights of consumers as a class, on matters relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, within his jurisdiction and submit his report to the Central Authority or to the Commissioner of a regional office, as the case may be. (B) a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold; (a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged, in the transaction as a whole; (b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest, except such contest, lottery, game of chance or skill as may be prescribed; (c) withholding from the participants of any scheme offering gifts, prizes or other items free of charge on its closure, the information about final results of the scheme. (3) When an acknowledgment or any other receipt purporting to be signed by the opposite party or his agent or, as the case may be, by the complainant is received by the District Commission, the State Commission or the National Commission, as the case may be, or postal article containing the notice is received back by such District Commission, State Commission or the National Commission, with an endorsement purporting to have been made by a postal employee or by any person authorised by the courier service to the effect that the opposite party or his agent or complainant had refused to take delivery of the postal article containing the notice or had refused to accept the notice by any other means specified in sub-section (1) when tendered or transmitted to him, the District Commission or the State Commission or the National Commission, as the case may be, shall declare that the notice has been duly served on the opposite party or to the complainant, as the case may be: Provided that where the notice was properly addressed, pre-paid and duly sent by registered post acknowledgment due, a declaration referred to in this sub-section shall be made notwithstanding the fact that the acknowledgment has been lost or misplaced, or for any other reason, has not been received by the District Commission, the State Commission or the National Commission, as the case may be, within thirty days from the date of issue of notice. (f) any other matter which may be prescribed by the Central Government. (1) The Central Authority shall have an Investigation Wing headed by a Director- General for the purpose of conducting inquiry or investigation under this Act as may be directed by the Central Authority. 41. CONSUMER PROTECTION ACT 2019 • Consumer Protection Act was passed in 1986. of that amount in the manner as may be prescribed. (ii) ex parte on the basis of evidence brought to its notice by the complainant, where the opposite party omits or fails to take any action to represent his case within the time given by the Commission; (c) decide the complaint on merits if the complainant fails to appear on the date of hearing. (2) There shall be a monitoring cell to be constituted by the President of the National Commission to oversee the functioning of the State Commissions from the administrative point of view. The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister of Consumer Affairs, Food and Public Distribution, Mr. Ram Vilas Paswan on July 8, 2019. The 2019 Consumer Protection Act brings about fundamental changes to the existing 1986 legislation. (d) the complainant resides or personally works for gain. (2) Where the complaint relates to any goods, the District Commission shall,—. 21. The objects of every State Council shall be to render advice on promotion and protection of consumer rights under this Act within the State. (a) the Minister-in-charge of Consumer Affairs in the State Government who shall be the Chairperson; (b) such number of other official or non-official members representing such interests as may be prescribed; (c) such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the Central Authority may, for any of the purposes aforesaid,—. The Consumer Protection Act 2019 will be more holistic and stringent after rules are framed to protect the interest of the consumers, Union Minister for Consumer Affairs, Food and Public distribution, Ram Vilas Paswan said at a press conference today. (3) Notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence. In this Act, unless the context otherwise requires,—. Objective- It will empower consumers and help them in protecting their rights through its various notified Rules and provisions. (a) “adulterant” means any material including extraneous matter which is employed or used for making a product unsafe; (b) “grievous hurt” shall have the same meaning as assigned to it in section 320 of the Indian Penal Code. Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners. (1) The National Commission shall have the authority to lay down such adequate standards in consultation with the Central Government from time to time, for better protection of the interests of consumers and for that purpose, shall have administrative control over all the State Commissions in the following matters, namely:—. Power of Central Authority to make regulations. (1) A product manufacturer shall be liable in a product liability action, if—, (a) the product contains a manufacturing defect; or, (b) the product is defective in design; or, (c) there is a deviation from manufacturing specifications; or, (d) the product does not conform to the express warranty; or. (1) The Central Authority shall regulate the procedure for transaction of its business and allocation of its business amongst the Chief Commissioner and Commissioners as may be specified by regulations. The answers are also given for your reference. (2) A complaint shall be instituted in a District Commission within the local limits of whose jurisdiction,—, (a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, ordinarily resides or carries on business or has a branch office or personally works for gain; or, (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case the permission of the District Commission is given; or, (c) the cause of action, wholly or in part, arises; or, (d) the complainant resides or personally works for gain. (3) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the District Commission shall be such as may be prescribed. Liability of product service provider. (i) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; (ii) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent for buying, hiring or availing of other goods or services; (42) “service” means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; (43) “spurious goods” means such goods which are falsely claimed to be genuine; (44) “State Commission” means a State Consumer Disputes Redressal Commission established under sub-section (1) of section 42; (45) “trader”, in relation to any goods, means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof; (46) “unfair contract” means a contract between a manufacturer or trader or service provider on one hand, and a consumer on the other, having such terms which cause significant change in the rights of such consumer, including the following, namely:—, (i) requiring manifestly excessive security deposits to be given by a consumer for the performance of contractual obligations; or, (ii) imposing any penalty on the consumer, for the breach of contract thereof which is wholly disproportionate to the loss occurred due to such breach to the other party to the contract; or, (iii) refusing to accept early repayment of debts on payment of applicable penalty; or, (iv) entitling a party to the contract to terminate such contract unilaterally, without reasonable cause; or, (v) permitting or has the effect of permitting one party to assign the contract to the detriment of the other party who is a consumer, without his consent; or. 30. (2) Each District Commission shall consist of—. The new Act was enacted by the Government of India on 9 th August 2019. of the amount under the second proviso to section 67; (ze) the form in which the National Commission and the State Commission shall furnish information to the Central Government under sub-section (4) of section 70; (zf) the persons in the consumer mediation cell under sub-section (3) of section 74; (zg) the measures to be taken by the Central Government to prevent unfair trade practices in e-commerce, direct selling under section 94; (zh) the amount for compounding offences under sub-section (1) of section 96; (zi) the fund to which the penalty and amount collected shall be credited under section 97; and. Measures to prevent unfair trade practices in e-commerce, direct selling, etc. (2) The officers and other employees of the National Commission shall discharge their functions under the general superintendence of the President of the National Commission. THE CONSUMER PROTECTION ACT, 2019 NO. (10) “defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression “defective” shall be construed accordingly; (11) “deficiency” means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service and includes—, (i) any act of negligence or omission or commission by such person which causes loss or injury to the consumer; and. of that amount in the manner as may be prescribed: Provided also that no appeal shall lie from any order passed under sub-section (1) of section 81 by the District Commission pursuant to a settlement by mediation under section 80. 88. 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