The Consumer Protection Act, 2019, protects consumers by establishing a redressal system and providing for penalties for unfair trade practices and misleading advertisements. Consumers can file complaints at District, State, or National Commissions, while the Act defines offenses like selling adulterated or hazardous goods, which can result in significant fines and imprisonment. Punishments vary depending on the severity, with penalties including fines up to ₹10 lakhs and jail terms up to life for certain offenses.
How the Act is Used
- Consumer Redressal: The Act provides a three-tier quasi-judicial machinery for addressing consumer grievances:
- District Consumer Disputes Redressal Commission: For claims up to ₹50 Lakhs.
- State Consumer Disputes Redressal Commission: For claims between ₹50 Lakhs and ₹2 Crores.
- National Consumer Disputes Redressal Commission: For claims above ₹2 Crores.
- Filing a Complaint: Consumers can file complaints with these forums, and no court fee is required.
- Central Consumer Protection Authority (CCPA): This authority, established by the 2019 Act, handles complaints related to consumer rights violations, misleading advertisements, and unfair trade practices.
Punishments under the Act
- Misleading Advertisements: A fine of up to ₹10 Lakhs and imprisonment for up to two years for the first offense. Increased penalties, including potential imprisonment for up to three years and fines, for repeat offenses.
- Adulterated or Hazardous Goods: For products causing injury not considered extremely serious, imprisonment for up to one year and fines up to ₹3 Lakhs are possible. For injuries considered serious, imprisonment can be up to seven years and fines up to ₹5 Lakhs. In cases where the adulterated product results in a consumer's death, the punishment can range from a seven-year imprisonment to life imprisonment, with fines of at least ₹10 Lakhs.
- Non-Compliance with Orders: Failure to comply with the orders of any consumer forum can result in imprisonment and fines.
- Unfair Trade Practices: Depending on the severity, these can also attract penalties including fines and imprisonment.
Punishments and Penalties under the Act
The Consumer Protection Act of 2019 introduced stricter provisions and higher penalties compared to the 1986 law. The Act outlines various penalties for different parties.
- Misleading advertisements: Can result in fines up to ₹10 lakh and imprisonment up to two years, with higher penalties for repeat offenses.
- Product liability: Holds manufacturers, sellers, or service providers responsible for compensating consumers if a defective product or deficient service causes harm.
- Penalties for adulterated goods: Vary based on the injury caused, ranging from imprisonment and fines for no injury to life imprisonment and substantial fines in cases of death.