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Questions and Answers

What is the name of the Act that aims to protect consumer interests?

The Consumer Protection Act, 2019

When was this Act enacted?

August 9, 2019

What year was the Consumer Protection Act first enacted?

1986

Which of the following is NOT an object of the Central Consumer Protection Council?

<p>Regulate matters related to violations of consumer rights</p> Signup and view all the answers

Where is the Central Consumer Protection Authority headquartered?

<p>New Delhi</p> Signup and view all the answers

The Central Authority is responsible for promoting, protecting, and enforcing the rights of consumers.

<p>True</p> Signup and view all the answers

The Consumer Protection Act, 2019 applies to the entire country of India.

<p>False</p> Signup and view all the answers

What does the term 'advertisement' refer to in the context of the Consumer Protection Act, 2019?

<p>Any form of audio or visual publicity, representation, endorsement or pronouncement</p> Signup and view all the answers

What is the meaning of the term 'appropriate laboratory' as defined within the Act?

<p>A laboratory or an organisation recognized by either the Central Government, a State Government, or established by law for analyzing or testing goods.</p> Signup and view all the answers

What is the term used for a consumer who buys goods for personal use and not for resale or commercial purposes?

<p>consumer</p> Signup and view all the answers

What is the definition of a complaint as given in the Consumer Protection Act?

<p>An allegation in writing made by a consumer or an association or government entity seeking relief due to unfair contract, faulty goods, unfair trade practices, or price violations.</p> Signup and view all the answers

What is NOT included in the definition of 'consumer rights' as defined in the Act?

<p>The right to be assured access to a variety of products and services at the lowest possible prices</p> Signup and view all the answers

What is the definition of 'defect' as described in the Consumer Protection Act?

<p>Any fault, imperfection, or shortcoming in the quality, quantity, potency, purity, or standard of a product that exists due to a legal requirement, contractual obligation, or a claim made by the trader.</p> Signup and view all the answers

What is the definition of 'deficiency' within the context of the Consumer Protection Act, 2019?

<p>Any fault, imperfection, shortcoming, or inadequacy in the quality, nature, and manner of performance of a service that is required by law, contract, or obligation.</p> Signup and view all the answers

Which of the following is NOT considered a 'product manufacturer' under the Consumer Protection Act, 2019?

<p>A person who only sells a product manufactured by another</p> Signup and view all the answers

What is the definition of 'product liability' under the Consumer Protection Act, 2019?

<p>The responsibility of a manufacturer or seller of a product to compensate for harm caused to a consumer due to defects in the product, its manufacture, or its service.</p> Signup and view all the answers

What is a 'product liability action' as defined in the Consumer Protection Act?

<p>A complaint filed by a person before the District Commission, State Commission, or National Commission seeking to claim compensation for harm caused by a defective product.</p> Signup and view all the answers

What is the term used to describe any material statement, affirmation, or promise regarding a product or service that guarantees conformity to specified standards?

<p>express warranty</p> Signup and view all the answers

What is the term 'direct selling' in the context of the Consumer Protection Act, 2019?

<p>Marketing, distribution, and sale of goods or services through a network of sellers, outside of a traditional retail location.</p> Signup and view all the answers

What is the definition of the term 'director-general' as defined in this act?

<p>The Director-General is the head of the Investigation Wing of the Central Authority.</p> Signup and view all the answers

Which of the following is NOT considered a 'restrictive trade practice' under the Consumer Protection Act, 2019?

<p>Offering goods or services at the lowest possible prices</p> Signup and view all the answers

What is the meaning of the term 'service' as defined in this Act?

<p>Any description of service made available to potential users, including banking, insurance, transport, processing, energy supply, telecom, housing construction, entertainment, or information services, excluding personal services for free.</p> Signup and view all the answers

What is meant by the term 'product service provider' in accordance with the Consumer Protection Act, 2019?

<p>A person who provides any service in relation to a particular product.</p> Signup and view all the answers

What is 'misleading advertisement' defined as in the Consumer Protection Act?

<p>An advertisement falsely describing a product or service, giving a false guarantee, or conveying misleading or concealed information.</p> Signup and view all the answers

What is the definition of 'spurious goods' within the context of the Consumer Protection Act, 2019?

<p>Goods falsely claimed to be genuine.</p> Signup and view all the answers

Under the Consumer Protection Act, 2019, who is considered a 'trader' in relation to goods?

<p>Any person who sells or distributes goods, including the manufacturer.</p> Signup and view all the answers

Which of the following is NOT a characteristic of an 'unfair contract' as defined by the Consumer Protection Act, 2019?

<p>Including clauses that specify the price of the goods or services being sold</p> Signup and view all the answers

What is the definition of 'unfair trade practice' according to the Consumer Protection Act, 2019?

<p>A trade practice that uses unfair or deceptive methods to promote the sale, use, or supply of goods or services.</p> Signup and view all the answers

What is 'grievous hurt' defined as in the Consumer Protection Act, 2019?

<p>It has the same meaning as defined in Section 320 of the Indian Penal Code.</p> Signup and view all the answers

What is the meaning of 'vexatious search' under the Consumer Protection Act, 2019?

<p>Searching or seizing any premises or evidence without reasonable grounds.</p> Signup and view all the answers

What is the purpose of the 'consumer mediation cell' established under the Consumer Protection Act, 2019?

<p>To provide mediation services for consumer disputes.</p> Signup and view all the answers

What is the meaning of 'product liability action' in the context of the Consumer Protection Act, 2019?

<p>A complaint filed by a person seeking compensation for harm caused by a defective product or service.</p> Signup and view all the answers

A product manufacturer is always exempt from product liability if the product was misused, altered, or modified.

<p>True</p> Signup and view all the answers

Explain the term 'product seller' within the context of the Consumer Protection Act, 2019

<p>A person who sells, distributes, leases, installs, prepares, packages, or otherwise deals with a product for commercial purposes, including manufacturers who also engage in selling their products.</p> Signup and view all the answers

According to the Consumer Protection Act, 2019, when can a product manufacturer be liable for harm caused by a defective product?

<p>All of the above</p> Signup and view all the answers

What are the grounds for a product seller to be liable in a product liability action?

<p>When they have exercised substantial control over the designing, testing, manufacturing, packaging, or labeling of a product that caused harm, they have modified the product, or made a warranty independent of the manufacturer, leading to harm.</p> Signup and view all the answers

The Consumer Protection Act, 2019 places the burden of proof on the product manufacturer to demonstrate they were not negligent or fraudulent in making an express warranty.

<p>True</p> Signup and view all the answers

Under which circumstances might a product service provider be liable in a product liability action?

<p>If they provided faulty, deficient, or inadequate service, were negligent in the performance of the service, withheld information that caused harm, or didn't provide necessary warnings or instructions.</p> Signup and view all the answers

When can the Central Authority issue directions to a trader or manufacturer to discontinue or modify a misleading advertisement?

<p>When the Central Authority is satisfied that a misleading advertisement is harmful to consumers or violates consumer protection laws.</p> Signup and view all the answers

What is the maximum penalty a manufacturer can be subjected to for a misleading advertisement under the Consumer Protection Act, 2019?

<p>A fine of up to 10 lakh rupees for the first offense, and up to 50 lakh rupees for any subsequent offense.</p> Signup and view all the answers

What is the maximum penalty a person can face for publishing or being a party to the publication of misleading advertisement?

<p>A fine of up to 10 lakh rupees.</p> Signup and view all the answers

What are the potential actions the Central Authority may take after determining that an advertisement is misleading and harmful?

<p>They can issue directions to the advertiser, manufacturer, or endorser of the advertisement to discontinue it, modify it, suspend the advertiser from endorsing products or services, or impose a penalty.</p> Signup and view all the answers

The Central Authority may impose a penalty on a manufacturer or endorser of a misleading advertisement without giving them a chance to present their case.

<p>False</p> Signup and view all the answers

When might the Central Authority decide to recall products or services?

<p>When there is sufficient evidence to suggest that a product or service poses a danger to consumers or involves unfair trade practices.</p> Signup and view all the answers

What is the maximum penalty an individual might face for failing to comply with an order of the Central Authority?

<p>Imprisonment for up to 3 years or fine of up to 1 lakh rupees or both</p> Signup and view all the answers

According to the Consumer Protection Act, 2019, the District Commission, State Commission, or National Commission are all empowered to act as a Judicial Magistrate of first class for the purpose of trying offenses related to noncompliance with their orders.

<p>True</p> Signup and view all the answers

What are the grounds for an appeal against an order issued by a District Commission?

<p>On grounds of facts or law.</p> Signup and view all the answers

The text mentions the 'National Capital Region of Delhi.' Where is this region located?

<p>It is a region surrounding New Delhi, India.</p> Signup and view all the answers

What is the purpose of the 'Investigation Wing' established under the Consumer Protection Act, 2019?

<p>It conducts inquiries or investigations related to consumer protection matters.</p> Signup and view all the answers

The Central Authority can only conduct inquiries or investigations into consumer protection matters 'suo motu' (on its own initiative).

<p>False</p> Signup and view all the answers

Who can file a complaint to the Central Authority regarding violations of consumer rights, unfair trade practices, or misleading advertisements?

<p>All of the above</p> Signup and view all the answers

What is the role of the District Collector as outlined in the Consumer Protection Act, 2019?

<p>They have the authority to investigate complaints related to violations of consumer rights.</p> Signup and view all the answers

What are the primary responsibilities of the Central Authority with respect to consumer protection?

<p>They have to protect consumer rights, prevent unfair trade practices, and ensure that misleading advertisements are not used.</p> Signup and view all the answers

Under what circumstances might the Central Authority refer a matter to a regulator established under a different law?

<p>All of the above</p> Signup and view all the answers

The Central Authority can summon a person regarding an investigation or inquiry into consumer protection matters and require them to produce documents.

<p>True</p> Signup and view all the answers

What are the various roles and powers of the Central Authority under the Consumer Protection Act, 2019?

<p>They can investigate complaints, file complaints with other Commissions, intervene in legal proceedings, review consumer rights issues, promote research and awareness, encourage cooperation with other organizations, mandate unique identifiers for goods, issue safety notices, and provide advice to government ministries.</p> Signup and view all the answers

What is the maximum penalty for failing to comply with a direction from the Central Authority regarding a misleading advertisement?

<p>Imprisonment up to 6 months, a fine of up to 20 lakh rupees, or both.</p> Signup and view all the answers

The Consumer Protection Act, 2019 places the burden of proof on the consumer to demonstrate that a product or service is defective.

<p>False</p> Signup and view all the answers

What is the purpose of the State Consumer Protection Council as defined in the Act?

<p>To provide advice and support to the State Government in promoting and protecting consumer rights.</p> Signup and view all the answers

What is the primary function of the National Commission?

<p>To handle appeals from State Commissions when the case involves a substantial question of law.</p> Signup and view all the answers

How is the process of mediation facilitated under the Consumer Protection Act, 2019?

<p>Disputes may be referred for mediation, by either the District, State, or National Commissions, at any stage of the proceedings.</p> Signup and view all the answers

The Consumer Protection Act, 2019 provides for the National Commission to have administrative control over all State Commissions.

<p>True</p> Signup and view all the answers

What are the primary functions of the State Commission in relation to consumer protection?

<p>To hear complaints, review orders of the District Commission, ensure compliance with consumer rights, and address disputes related to unfair trade practices.</p> Signup and view all the answers

What is the main purpose of the 'consumer mediation cell' as established under the Consumer Protection Act, 2019?

<p>To provide mediation services as a means of dispute resolution between consumers and traders.</p> Signup and view all the answers

How does the Central Government play a role in ensuring the effective implementation of the Consumer Protection Act, 2019?

<p>By issuing directions on policy matters, making rules to implement the Act, and providing administrative control over State Commissions.</p> Signup and view all the answers

What is the primary purpose of the 'District Consumer Disputes Redressal Commission' established under the Consumer Protection Act, 2019?

<p>To resolve consumer disputes within the district.</p> Signup and view all the answers

What is the role of the 'State Consumer Disputes Redressal Commission' as established under the Consumer Protection Act, 2019?

<p>To handle appeals from District Commissions and ensure consistent adherence to consumer protection laws within the state.</p> Signup and view all the answers

What is the role of the 'National Consumer Disputes Redressal Commission' established under the Consumer Protection Act, 2019?

<p>To resolve consumer disputes at the national level, handle appeals from State Commissions, and oversee the performance of all state Commissions.</p> Signup and view all the answers

Study Notes

Consumer Protection Act, 2019

  • Act Number: 35 of 2019
  • Effective Date: On such date as the Central Government may, by notification, appoint
  • Applies to: All goods and services, unless otherwise specified by notification of the Central Government
  • Objective: Protect consumer interests and provide for effective administration and settlement of disputes
  • Main Features: Provides for the establishment of authorities for the settlement of consumer disputes, enhances the pecuniary jurisdiction of redressal agencies, and increases the minimum number of members in State Consumer Disputes Redressal Commissions. Also, allows consumers to file complaints electronically.

Chapter I: Preliminary

  • Short Title: Consumer Protection Act, 2019
  • Extent: Whole of India (except Jammu and Kashmir)
  • Commencement: On such date as the Central Government may specify by notification
  • Different dates: Different date may be appointed for the commencement of different provisions of the Act for different States and for different provisions

Chapter II: Consumer Protection Councils

  • Central Consumer Protection Council (CCPC): Advisory council
  • Membership: Central Minister (Chairperson), and other official and non-official members
  • Meetings: At least one meeting per year
  • Objects: Advise on promotion and protection of consumer rights
  • State Consumer Protection Councils (State Councils):
    • Constitute in each state, similar to the Central Council
    • Consists of a State Minister (Chairperson), other official/non official members, and those nominated by Central Government (Maximum 10)
    • Meet at least twice a year

Chapter III: Central Consumer Protection Authority

  • Establishment by Central Government: An executive authority called "Central Authority" to promote, protect, and enforce consumer rights, and to intervene in preventing consumer detriment.
  • Authority Members: A Chief Commissioner and other Commissioners, appointed by the Central Government.
  • Headquarters: National Capital Region (NCR) of Delhi, and may have zonal or regional offices
  • Functions: Investigating consumer complaints, enforcing consumer rights, and promoting consumer protection. Also includes powers to order recall, return, or refund of unsafe or defective products, and to issue directions and penalties concerning false/misleading advertisements.

Chapter IV: Consumer Disputes Redressal Commission

  • District Commissions:
    • Established by State Government in each district
    • Headed by a District Collector as Chairperson, and additional official/non-official members
  • State Commissions:
    • Established by State Government in each state.
    • Headed by a designated State Minister, and additional official/non-official members, up to 10
  • National Commission:
    • Established by central government and has a headquarter in a region
    • Headed by national Minister

Chapter V: Mediation

  • (Omitted from the current version of the act)

Chapter VI: Product Liability

  • Application: Claims for compensation arising from defective products
  • Manufacturers' liability: For defects in manufacture, design, deviation from specifications, failure to comply with warranty, inadequacies in instructions/warnings or related usage
  • Service providers' liability: For faulty services or negligent omissions/actions/failures to provide proper service information or warnings.
  • Sellers' liability: For defective products they sell, if they exercised substantial control over the design, testing, manufacturing, packaging or labelling.

Chapter VII: Offences and Penalties

  • Penalties for violations: Imprisonment and/or fines for violations of consumer rights and for false/misleading advertisements, as well as for manufacturing, distributing, selling, and importing adulterated or spurious products.

Chapter VIII: Miscellaneous

  • Unfair trade practices: Measures to prevent unfair trade practices in e-commerce (specifically outlined), direct selling, etc.
  • Officers are public servants: Presidents, members of the Commissions, and specified officers are considered public servants under this act
  • Compounding of offences: Penalties for offenses may be compounded, on payment of a fixed sum (with court’s approval).

Other Important Concepts

  • Consumer Rights: Protection against hazardous goods and services, information about product/service quality/price, and access to diverse goods/services at competitive prices
  • Consumer Disputes: Disputes arising from a failure to uphold consumer rights or from unfair trade practices
  • Consumer Protection Councils: Councils with advisory roles, advise and work to promote and protect consumer interests
  • Consumer Protection Authority (Central): Regulates issues related to consumer rights, unfair trade practices, and misleading advertising
  • Consumer Protection Agencies: Enforce a variety of consumer protective laws
  • Consumer Disputes Redressal Agencies: Resolve consumer disputes

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