What is the Consumer Protection Act, 2019?
The Consumer Protection Act, 2019 is a law in India that was enacted to protect the interests of consumers. It replaced the older Act of 1986.
- Main Goal: To provide a simpler and faster mechanism for resolving consumer grievances and to protect consumers from unfair trade practices and defective goods or services.
- Relevance to Banking: Banking services are explicitly covered under this Act. A bank customer is a consumer of the bank’s services.
Key Features and New Concepts in the 2019 Act
The new Act introduced several important features that you must know.
1. Broader Definition of a ‘Consumer’
- The definition of a consumer now explicitly includes transactions done through e-commerce or teleshopping. This is a major update from the old Act.
- Example: If you use a banking app to transfer money and there is an error, you are a consumer and can file a complaint under this Act.
2. The Six Consumer Rights
The Act formally defines the six key rights of a consumer:
- Right to Safety: Protection from goods and services that are hazardous to life and property.
- Right to be Informed: The right to know the quality, quantity, purity, price, and standard of goods or services.
- Right to Choose: The right to have access to a variety of goods and services at competitive prices.
- Right to be Heard: The right to have consumer interests heard in appropriate forums.
- Right to Seek Redressal: The right to seek resolution against unfair trade practices.
- Right to Consumer Education: The right to acquire the knowledge and skills to be an informed consumer.
3. Establishment of a New Regulator: CCPA
- The Act established the Central Consumer Protection Authority (CCPA).
- Role of CCPA: It acts as a powerful regulator with the authority to investigate, recall unsafe goods, and impose penalties for misleading advertisements. Think of it as a watchdog for consumer rights.
4. Concept of ‘Product Liability’
- This is a new and important concept. It means a manufacturer or seller of a product is responsible for compensating a consumer for any harm caused by a defective product or deficient service.
- Example: If a newly purchased electronic item explodes and causes injury, the manufacturer can be held liable under this clause.
Grievance Redressal Machinery
The Act sets up a three-tier system of consumer courts (or commissions) to handle complaints. A key change in the 2019 Act is that a complaint can be filed where the complainant resides or works, making it much easier for consumers.
The three levels are based on the value of the goods or services involved (Pecuniary Jurisdiction):
Commission Level | Pecuniary Jurisdiction (Value of goods/services) | Headed By |
District Commission | Up to ₹50 lakh | A District Judge |
State Commission | Above ₹50 lakh and up to ₹2 crore | A High Court Judge |
National Commission | Above ₹2 crore | A Supreme Court Judge |
Summary
The Consumer Protection Act, 2019 is a modern and more powerful law than its predecessor. It widens the definition of a consumer to include online transactions, establishes a strong regulator (CCPA), and introduces the concept of product liability. For bank customers, it provides a three-tier, accessible, and effective system for resolving complaints about any deficiency in banking services, with clear financial limits for each level of the consumer commission.
Quick Revision Points
- Act Name: Consumer Protection Act, 2019 (replaced the 1986 Act).
- Key Inclusion: E-commerce transactions are now covered.
- New Regulator: Central Consumer Protection Authority (CCPA) was established.
- New Concept: Product Liability makes manufacturers responsible for defects.
- Filing a Complaint: A consumer can now file a complaint where they reside or work.
- Three-Tier System:
- District Commission: Up to ₹50 lakh.
- State Commission: ₹50 lakh to ₹2 crore.
- National Commission: Above ₹2 crore.
- Banking: Banking is a ‘service’ under this Act, and a bank customer is a ‘consumer’.