New Delhi, July 20: Consumer Protection Act, passed by the Parliament in 2019 came into effect from today. It will be replacing more than three decades old Consumer Protection Act, 1986.

The new Consumer Protection Act 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail term for adulteration and misleading ads by firms. Consumer Protection Act Comes Into Effect From July 20: All About The Law Aimed at Protecting Consumer Interests.

Here are the highlights of the new Bill

  1. On misleading ads, there is a provision for a jail term and fine for manufacturers. There is no provision for jail for celebrities but they could be banned for endorsing products if it is found to be misleading.

  2. Under this new law, a manufacturer or product service provider or product seller will now be responsible to compensate for injury or damage caused by defective product or deficiency in services.

  3. The Bill proposes setting up of a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers as a class. The CCPA would make interventions to prevent consumer detriment arising from unfair trade practices. The agency can also initiate class action, including enforcing recall, refund and return of products.

  4.  There will be an exclusive law dealing with Product Liability. There is also a provision for class action lawsuit for ensuring that the rights of consumers are not infringed upon. The authority will have the power to impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.

  5. The Bill also enables regulations to be notified on E-commerce and direct selling with a focus on the protection of interest of consumers.

  6. If the consumer dies, then the compensation amount would be increased to Rs 10 lakh, and the prison term may range from seven years to upto life imprisonment.

(The above story first appeared on LatestLY on Jul 20, 2020 03:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).