InvestorQ : What are the changes and penalties in the new consumer protection Act 2019?
Abigail Ghoshal made post

What are the changes and penalties in the new consumer protection Act 2019?

Ayushi Kampani answered.
11 months ago
The new consumer protection act has widened its scope in many aspects and is directed to cover as many consumer issues as possible to protect the consumer against company frauds. The act has brought the following changes:

1) Under the new act, consumers can now lodge a complaint from their place of work or residence, which in the earlier case was allowed only from the place where the actual incident took place.

2) The act includes certain rules for the establishment of the Central Consumer Protection Authority (CCPA) in order to protect the rights of consumers.

3) CCPA shall also be given power under the act to impose penalties on manufacturers, publishers, and endorsers of any misleading advertisements.

4) Rules for the prevention of unfair trade practices by e-commerce platforms shall also be covered under this Act. 

5) The new Act is formulated to induce the concept of product liability and covers the product manufacturer, product service provider, and seller for any claim compensation.

6)Changes in the dispute resolution process have also been introduced, including  following changes to pecuniary jurisdiction:

  • The pecuniary jurisdiction of District Commissions has increased from ₹20 lakh earlier to up to ₹1 crore.
  • The pecuniary jurisdiction of State Commissions increased from ₹1 crore to Rs 10 crore.
  • National Commission can hear cases above ₹10 crores, up from the earlier threshold of ₹1 crore.