Every year, India celebrates National Consumer Rights Day on 24 December. This date holds special significance because the Consumer Protection Act, 1986 received Presidential assent on the same day. Consequently, the country observes this day to commemorate the enactment of a landmark law that safeguards consumers against defective goods and unfair trade practices.

Learning from Home / Basics / Current Affairs

Building on earlier legislation, the Consumer Protection Act, 2019 came into force on 20 July 2020 with several progressive features. Most importantly, the Act established the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce consumer rights. In addition, the law strengthened Consumer Protection Councils, Consumer Disputes Redressal Commissions, mediation mechanisms, product liability provisions, and penalties for manufacturing or selling adulterated or spurious goods.

Moreover, the government introduced the new Act after multiple amendments to address emerging challenges. As a result, the law now protects consumers not only from traditional sellers but also from modern e-commerce platforms and online marketplaces.

Furthermore, the CCPA holds extensive powers. It can investigate violations of consumer rights, initiate complaints or prosecutions, order recalls of unsafe goods and services, discontinue unfair trade practices, and penalize manufacturers, endorsers, and publishers involved in misleading advertisements.

In addition, the Act clearly covers rules aimed at preventing unfair trade practices by e-commerce platforms. According to the law, every e-commerce entity must provide transparent information on returns, refunds, exchanges, warranties. Also delivery, shipment, payment methods, grievance redressal mechanisms, chargeback options, and the country of origin. This information enables consumers to make informed decisions at the pre-purchase stage.

Similarly, e-commerce platforms must acknowledge consumer complaints within 48 hours. Aand resolve them within one month from the date of receipt.

Another significant reform involves the introduction of product liability. The Act now makes product manufacturers, service providers, and sellers jointly accountable for compensation claims arising from defective products or deficient services.

Additionally, the law empowers State and District Consumer Commissions to review their own orders. It also allows consumers to file complaints electronically, submit cases in commissions having jurisdiction over their place of residence, participate in hearings through video conferencing, and benefit from deemed admissibility if the commission does not decide admissibility within 21 days.

To further streamline dispute resolution, the Act introduces mediation as an Alternate Dispute Resolution mechanism. This approach simplifies adjudication, and notably, no appeal lies against settlements reached through mediation.

Finally, the Act prescribes strict punishment for manufacturing or selling adulterated or spurious goods. In the case of a first conviction, the court may suspend the offender’s license for up to two years. In cases of second or subsequent convictions, the court may cancel the license altogether.