Lawyer Monthly Magazine - February 2020 Edition

With the new age of digitization in India, there has been a sudden growth in the e-commerce business. Easy payment mechanisms make it convenient for the consumer to access a variety of choices at a click of a button. However, due to the spurt of digitization, there have been certain challenges which required immediate attention and keeping in mind the same, the Indian Government seeks to bring into effect the new Consumer Protection Act, 2019 (“CP Act”). The CP Act would repeal the old Consumer Protection Act, 1986 with the aim to provide timely and effective administration and settlement of consumer’s disputes. Following are the key highlights of the CP Act: THE CHANGES MADE TO INDIA’S CONSUMER PROTECTION ACT 2019 Regulatory Update of the Month By Clasis Law 18 WWW.LAWYER-MONTHLY.COM | FEB 2020 E-Commerce: • E-commerce has been included in the CP Act. In this regard, The CP Act has also broadened the definition of “Consumer” to include a person who “buys any goods” and “hires or avails any services” through offline or online transactions, such as electronic means or by teleshopping or direct selling or multi-level marketing. Rights of a Consumer: • The rights of a Consumer have been defined under the CP Act and also include: a) Protection against the marketing of goods, products or services which are hazardous to life and property; b) Protection against unfair trade practices by being informed about the quality, quantity, potency, purity, standard and price of goods, products or services; c) Access to a variety of goods, products or services at competitive prices; d) Consumer’s interests will receive due consideration at the appropriate fora; e) To seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers. Product Liability: • The CP Act shall include “Product Liability” in order to discourage the manufacturers and service providers from delivering defective or deficient services. A product liability action may be brought against a product manufacturer or a product service provider for any harm caused to a consumer on account of a defective product. • It is important to note that a product manufacturer shall be liable even if he proves that he was not negligent or did not act fraudulently inmaking the express warranty of a product. Central Agency for regulating the laws on Consumer Protection: • A Central Consumer Protection Authority (“Central Authority”) shall be established to regulate matters relating to the violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the public interest and the consumers. • Central Authority shall have an “Investigation Wing” for the purpose of conducting inquiry or investigation.