Consumer Protection Act, 2019 Overview

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Questions and Answers

What is required for an individual to be appointed as an Additional Director-General?

  • An advanced degree in public administration
  • Experience in management and administrative roles
  • Experience in investigation and appropriate qualifications (correct)
  • A background in consumer rights law

Who has the authority to delegate powers during inquiries or investigations?

  • Central Authority
  • Director-General (correct)
  • District Collector
  • Regional Commissioner

What type of complaints can the District Collector investigate?

  • Individual fraud cases setup by private entities
  • General consumer feedback on product quality
  • Corporate disputes regarding trade practices
  • Complaints regarding violations of rights of consumers as a class (correct)

What form can complaints regarding consumer rights violations take?

<p>Either written or electronic mode (C)</p> Signup and view all the answers

To whom does the Director-General submit inquiries or investigation reports?

<p>The Central Authority (D)</p> Signup and view all the answers

What is the primary purpose of the Consumer Protection Act, 2019?

<p>To protect the interests of consumers and settle disputes. (A)</p> Signup and view all the answers

Which of the following is NOT a punishment specified under the Consumer Protection Act, 2019?

<p>Punishment for breach of contract. (B)</p> Signup and view all the answers

What is meant by 'vexatious search' as mentioned in the provisions of the Consumer Protection Act?

<p>A search intended to annoy or harass. (B)</p> Signup and view all the answers

Which authority is empowered to make regulations under the Consumer Protection Act, 2019?

<p>The Central Authority. (B)</p> Signup and view all the answers

What does the Act classify as a spurious good?

<p>Goods that are falsely branded or misrepresented. (C)</p> Signup and view all the answers

What provision does the Consumer Protection Act, 2019 include regarding the measures to prevent unfair trade practices?

<p>Includes measures for both e-commerce and direct selling. (C)</p> Signup and view all the answers

Which of the following powers does NOT fall under the purview of the Central Government as per the Act?

<p>Power to initiate criminal proceedings. (C)</p> Signup and view all the answers

What does the Act stipulate regarding the role of officials such as the Chief Commissioner?

<p>They are regarded as public servants. (A)</p> Signup and view all the answers

What action can the Central Authority take if it finds an advertisement to be misleading?

<p>Issue directions to discontinue or modify the advertisement (B)</p> Signup and view all the answers

What is the maximum penalty that can be imposed on a manufacturer for a first violation of misleading advertising?

<p>Ten lakh rupees (C)</p> Signup and view all the answers

Under what condition can an endorser avoid penalty for a misleading advertisement?

<p>If they have exercised due diligence to verify the claims (A)</p> Signup and view all the answers

What is the maximum duration for which an endorser can be prohibited from making endorsements after a second contravention?

<p>Three years (B)</p> Signup and view all the answers

What happens if a person publishes a misleading advertisement without knowledge of its misleading nature?

<p>They are automatically exempt from penalties (D)</p> Signup and view all the answers

What are the penalties for subsequent contraventions by an endorser?

<p>A three-year prohibition from endorsements (C)</p> Signup and view all the answers

What does the Central Authority consider when determining the penalty for misleading advertisements?

<p>The potential harm to consumers (C)</p> Signup and view all the answers

Which of the following is NOT a possible consequence for endorsers of misleading ads?

<p>A requirement to publish a correction in prominent media (D)</p> Signup and view all the answers

What is the minimum value of goods or services for the State Commission to entertain complaints?

<p>Rupees one crore (A)</p> Signup and view all the answers

Which of the following does the State Commission NOT have jurisdiction over?

<p>Complaints against unfair contracts over ten crore (C)</p> Signup and view all the answers

What determines the presiding member of a Bench in the State Commission?

<p>The President of the Commission (A)</p> Signup and view all the answers

What happens if the members of a Bench are equally divided on a point?

<p>The President hears the point or refers it to another member (B)</p> Signup and view all the answers

What is the upper limit of value for which the State Commission can entertain complaints against unfair contracts?

<p>Rupees ten crore (D)</p> Signup and view all the answers

Who decides on points when the members of a Bench differ in opinion?

<p>The majority opinion of the members (C)</p> Signup and view all the answers

How long does the President or other members have to give an opinion on referred points?

<p>Within one month (A)</p> Signup and view all the answers

Which complaint value range is eligible for the State Commission's consideration?

<p>One crore to ten crore (A)</p> Signup and view all the answers

What is one of the powers of the District Commission in terms of orders made?

<p>To review any order if there is an evident error on record. (D)</p> Signup and view all the answers

What must happen if the President and a member of the District Commission differ on any points?

<p>They must refer the disagreement to another member for resolution. (D)</p> Signup and view all the answers

What is required for a person to appeal against an order of the District Commission?

<p>The appeal must be filed within forty-five days from the date of the order. (B)</p> Signup and view all the answers

What happens if a person wishes to appeal past the forty-five day limit?

<p>The State Commission may consider the appeal if sufficient cause is shown. (D)</p> Signup and view all the answers

What must accompany an appeal by a person who is required to pay as per a District Commission order?

<p>A deposit of fifty percent of the amount due. (C)</p> Signup and view all the answers

How is an order made by the District Commission represented when a majority opinion is reached?

<p>It must be signed by the President and the member conducting the proceeding, plus the majority opinion member. (C)</p> Signup and view all the answers

What is the primary purpose of issuing corrective advertisement as stated?

<p>To neutralize the effects of misleading advertisements. (B)</p> Signup and view all the answers

In what situations can the State Commission review an appeal after the standard appeal period?

<p>If there is sufficient cause for not filing within the initial period. (D)</p> Signup and view all the answers

What powers does the National Commission have regarding unfair contracts?

<p>It can declare unfair contracts null and void. (A)</p> Signup and view all the answers

In what circumstances can the National Commission review its orders?

<p>If there is an error apparent on the face of the record. (C)</p> Signup and view all the answers

What can an aggrieved party do concerning ex parte orders made by the National Commission?

<p>They can apply to set aside the ex parte order. (C)</p> Signup and view all the answers

Under what condition may the National Commission transfer a complaint from one District Commission to another?

<p>In the interest of justice, on application or its own motion. (D)</p> Signup and view all the answers

Who takes over the duties of the President of the National Commission when that position is vacant?

<p>The senior-most member of the National Commission. (B)</p> Signup and view all the answers

What is the effect of vacancies or defects in appointment on the validity of orders by the commissions?

<p>Vacancies do not invalidate any acts or proceedings. (A)</p> Signup and view all the answers

What timeframe does a party have to apply for a review of an order by the National Commission?

<p>Within 30 days. (B)</p> Signup and view all the answers

Which member presides over the National Commission in the absence of the President?

<p>The senior-most member, unless a judicial member is present. (B)</p> Signup and view all the answers

Flashcards

Consumer Protection Act, 2019

An act to protect consumer interests, establish authorities for consumer disputes, and related matters.

Chapter VIII

Miscellaneous provisions of the Consumer Protection Act, 2019.

False advertisements

Misleading or untrue marketing claims.

Adulterated products

Products containing harmful or illegal ingredients.

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Spurious goods

Counterfeit or fake products.

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Central Authority

A governing body responsible for enforcing the law.

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Vexatious search

Unjustified investigation.

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Compounding of offences

Agreement to resolve an offence through a fine, not a full trial.

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Central Government's Power to Appoint Officials

The Central Government can appoint Director-General and other officials (Additional Director-General, Director, etc.) with investigation experience and specified qualifications.

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Director-General's General Control

All appointed officials (Additional Director-General, Director, etc.) report to and are supervised by the Director-General.

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Director-General's Power of Delegation

The Director-General can delegate their powers to other officials (Additional Director-General, etc.) during investigations.

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Reporting Procedure for Investigations

The findings of inquiries or investigations by the Director-General must be submitted to the Central Authority according to specified regulations (form, manner, and time).

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District Collector's Role in Consumer Complaints

A District Collector (or equivalent) can investigate complaints about consumer rights violations, unfair trade practices, and false ads within their jurisdiction and report to the appropriate authority.

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False/misleading advertisement

An advertisement that is not accurate or gives a false impression, harming consumers.

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Central Authority's power

The power of the Central Authority to act against false/misleading ads, including issuing directions, penalties, and prohibitions to endorsers and publishers.

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Penalty for false ads

Financial punishment for creating and publishing false or misleading ads.

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Endorser's penalty

Punishment for endorsers of false/misleading ads, potentially prohibition of endorsement for a period.

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Publisher's penalty

Penalty for publishing false ads, financial punishment.

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Due diligence by endorser

Endorser's responsibility to verify accuracy of claims made in ads for avoiding penalties.

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Ordinary course disclaimer

Defense a person publishing ads can use if they were unaware or if they didn't know the ads were false/misleading, published in regular business.

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Previous knowledge exception

If the publisher knew of an order to change or stop an advertisement, the 'ordinary course of business' defense won't apply.

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Misleading Advertisement

An advertisement that contains false or deceptive information, which can mislead consumers into making a purchase or taking action based on inaccurate information.

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Corrective Advertisement

An advertisement issued by the responsible party to correct the misleading information from a previous advertisement and neutralize its effects.

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District Commission

A body responsible for resolving consumer disputes and enforcing the provisions of the Consumer Protection Act, 2019.

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Order of the District Commission

The decision or ruling made by the District Commission regarding a consumer dispute.

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Review by District Commission

The District Commission can review its own order for any apparent errors in the record, upon its own initiative or based on an application by a party.

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Appeal Against District Commission's Order

A person dissatisfied with the District Commission's order can submit an appeal to the State Commission for a higher level of review.

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State Commission

A body responsible for reviewing appeals against orders made by the District Commission.

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Deposit Required for Appeal

If an individual wants to appeal a District Commission order where they need to pay an amount, they are obligated to deposit 50% of the amount before their appeal can be considered.

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State Commission Jurisdiction

The State Commission handles consumer complaints exceeding ₹1 crore but not exceeding ₹10 crore, unfair contracts up to ₹10 crore, and appeals from District Commissions.

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Central Government's Role

The Central Government can set different value thresholds for complaints the State Commission considers.

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State Commission Benches

The State Commission can have multiple Benches, each headed by the senior-most member, to handle cases efficiently.

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Differing Opinions in a Bench

If a State Commission Bench's members disagree, the majority rules. In a tie, they refer the case to the President for a decision.

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President's Decision

The President of the State Commission can either personally decide disputed points or refer them to other members for a decision.

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State Commission: Review and Orders

The State Commission can review cases from District Commissions and make orders if the District Commission made mistakes.

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Value Threshold for Complaints

The State Commission has a specific monetary limit (₹1 crore to ₹10 crore) for the types of complaints it can handle.

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Unfair Contracts

The State Commission handles complaints regarding unfair contracts, even if the value is below ₹10 crore.

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National Commission's Powers

The National Commission can handle complaints similar to those dealt with by lower authorities (District, State Commissions) and declare unfair contract terms void.

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National Commission's Review

The National Commission can review its own orders if there's an error in the record, either on its own or at the request of parties within 30 days.

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Ex Parte Orders Review

If the National Commission makes a decision without hearing one side, the affected party can ask for the decision to be overturned.

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Transferring Cases

The National Commission can move a case between different commissions (District, State) to ensure fair and efficient resolution.

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Vacancy in National Commission President

If the National Commission President is absent or unable to work, the senior-most member (or a retired High Court judge) takes over.

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Vacancies Don't Invalidate Orders

Even if there are vacancies or problems with the appointment of members, decisions made by the Commissions are still legally valid.

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National Commission's Role

The National Commission acts like a supreme court for consumer disputes, enforcing consumer rights and ensuring fair business practices.

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Study Notes

Consumer Protection Act, 2019

  • Short Title: The Consumer Protection Act, 2019
  • Extent: Applies to all of India except Jammu and Kashmir
  • Commencement: Effective on a date notified by the Central Government. Different dates may be set for different parts of the Act and different states.
  • Application: Applies to all goods and services (unless otherwise specified)

Chapter I: Preliminary

  • Definitions: Defines key terms like "advertisement," "appropriate laboratory," "branch office," "complainant," "complaint," "consumer," "defect," "deficiency," "design," "direct selling," "consumer dispute," "consumer rights," and others. Detailed definitions are provided for each.

Chapter II: Consumer Protection Councils

  • Central Consumer Protection Council: An advisory council established by the Central Government.
  • Meetings: The council holds meetings at least once a year, as prescribed.
  • Objects: To advise on the promotion and protection of consumer rights.
  • State Consumer Protection Councils: Advisory councils established by each State Government.
  • Objects: to advise on the promotion and protection of consumer rights in their respective states.
  • District Consumer Protection Councils: Advisory councils established by State Governments for each district.
  • Objects: to advise on the promotion and protection of consumer rights in their district.

Chapter III: Central Consumer Protection Authority

  • Establishment: The Central Government establishes the Central Consumer Protection Authority (Central Authority).
  • Qualifications/Recruitment: Rules governing qualifications, recruitment procedures, terms of office, salaries, allowances, and other conditions of service for the Chief Commissioner and Commissioners are established.
  • Vacancies/Invalid Proceedings: Vacancies or defects in the constitution or appointment of the authority do not invalidate its proceedings.
  • Officers/Employees: The Central Authority hires officers, experts, and employees as needed.

Chapter IV: Consumer Disputes Redressal Commission

  • District Consumer Disputes Redressal Commission (District Commission): Established by State Governments for each district

  • President/Members: Qualifications, appointment procedures, terms, and conditions of service for the President and members are outlined.

  • Salaries/Allowances: State Governments establish rules for salaries, allowances, and other terms and conditions of service for the President and members of these District Commissions.

  • State Consumer Disputes Redressal Commission (State Commission): Established by the State Governments.

  • President/Members Qualifications, appointment procedures, terms, and conditions of service are outlined for the President and members of the State Commission.

  • Salaries/Allowances: State Governments establish rules for salaries and allowances for the president and members.

  • National Consumer Disputes Redressal Commission (National Commission): Established by the Central Government.

  • President/Members: Qualifications, appointment, terms and conditions are outlined for the President and members of the National Commission

  • Procedure of Commissions: Rules for all actions from admission to execution of order are prescribed for all three levels to ensure proper proceedings.

  • Jurisdiction: The jurisdiction of each level of commission (district, state, national) is defined based on the value of goods/services

Chapter V: Mediation

  • Establishment of Consumer Mediation cells: At District, State, and National levels
  • Panel of Mediators: Qualified mediators are appointed to mediate disputes
  • Procedure for Mediation: Mediation timelines and procedures are clearly outlined
  • Settlement: Agreements reached through mediation are transcribed to be legally binding

Chapter VI: Product Liability

  • Application: Explains when this chapter applies—complaints regarding defective goods
  • Liability of Manufacturers: Manufacturers are responsible for harm caused by flaws in design, manufacture, or if the product doesn't meet its advertised or legally required specifications.
  • Liability of Service Providers: Defines circumstances where service providers are liable for harm.
  • Liability of Sellers: Sellers are also liable in certain cases where they've exerted substantial control over manufacture, modified the product or if the manufacturer is unknown to the purchaser.
  • Exceptions to Product Liability Action: Provides exceptions to liability in specific scenarios

Chapter VII: Offences and Penalties

  • Penalties for Non-Compliance: Specifies punishments for failing to comply with directions by the Central Authority.
  • False/Misleading Advertising Penalties: Punishments for causing false/misleading advertisements are defined, with escalating penalties for repeat offenses
  • Adulterant Products Penalties: Penalties for manufacturing, storing, selling, or importing products containing adulterants
  • Spurious Products Penalties: Penalties are defined for manufacturing, storing, selling, or importing spurious products.

Chapter VIII: Miscellaneous

  • Measures to Prevent Unfair Trade Practices: This gives the Central Government the power to take action to stop unfair trade practices.
  • Public Servants: Clarifies which officers and officials are considered public servants under the Act.
  • Compounding of Offences: Some offenses can be resolved with monetary payments
  • Protection for Good Faith Actions: Protects those acting in good faith, under the Act, from legal persecution.
  • Rules/Regulations: The Central Government, and in certain cases, state governments have the power to establish regulations.
  • Other Measures: Powers and responsibilities of the Central Government and others are elaborated for dealing with potential irregularities and enforcing the Act.

Chapters IX-XII: Further Chapters

  • The remaining chapters (likely IX to XII) are not detailed, and the information provided above is the extent of the summary contained within the document provided.

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