Consumer Protection Act, 2019 (COPRA) – Features and Provisions

The concept of protecting consumer rights was first introduced in 1986 with the ordinance Consumer Protection Act, 1986. The act was created to safeguard the consumers from dissatisfactory services and goods.

But for safeguarding the consumer interest in the modern era, the Act was upgraded in 2019. Thus, the consumer Protection Act, 2019 replaced the three decade old Consumer Protection Act, 1986.

The Consumer Protection Act is aimed at providing customer redressal in an easy and quick manner. We will go through the benefits and important provision of the Consumer Protection Act, 2019 in this article.

But let us understand about the Consumer Protection Act, 1986 first.

Consumer Protection Act, 1986

The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to redressal of consumer grievances. It was the first time the term consumer is introduced and gave additional rights to the individual.

But the act has limitation to whom the act will be applied. The Act does not cover every consumer with in the literal meaning of the term. Thus, the protection is meant for the person who fits in the definition of ‘consumer’ given by the Act.

Definition: Consumer

Definition: Consumer

According to the Consumer Protection Act, 1986 ‘Consumer‘ is any person who is

Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose

or

[hires or avails of] any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who 1[hires or avails of] the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payments, when such services are availed of with the approval of the first-mentioned person.

Features

• The Act has provided machinery whereby consumers can file their complaints which will be entertained by the Consumer Forums with special powers so that action can be taken against erring suppliers and the possible compensation may be awarded to the consumer for the hardships he has undergone.
• The act introduced the concept of Consumer Forums with special powers to support consumers in getting resolution.
• The forum will help the consumer from getting redressal of erring suppliers of any goods and services.
• Thus, the possible compensation will be awarded to consumer for the hardships he has undergone.
• No court fee is required to be paid to these forums, and there is no need to engage a lawyer to present the case.

Consumer Protection Act, 2019

As said earlier, the Consumer Protection Act, 1986 had several limitations. Moreover, with more and more startups and new service providers evolving, the need for a new and upgraded act was needed.

Thus, to overcome these hurdles and provide the consumer protection against straying products and services, the Indian Parliament has passed The Consumer Protection Act, 2019.

The new Act proposes a slew of measures and tightens the existing rules to further safeguard consumer rights.

Features

• Coverage of the Scheme is extended to “All goods and services including banking, insurance, transport, processing, electricity, physicians, etc. in private, public and cooperative sector, and all banking services”.
• The consumer can go for a redressal two years from the cause of action.
• The Act included both online and offline transactions done for redressal.
• There is the introduction of a central regulator (Central Consumer Protection Authority – CCPA), strict penalties for misleading advertisements and guidelines for e-commerce and electronic service providers.
• Thus, the CCPA is the authority who investigates the complaint and provides suitable compensation for the consumers.
• The Act has provision for establishment of Consumer Disputes Redressal Commissions (CDRC) which supports the consumers on getting better resolution for the issue in hand.

Benefits

• The new act covers the transactions done in online mode including E- Commerce, telemarketing, digital services and all the sectors where there is a transaction of goods or services.
• It provides protection for consumers against Unfair trade practices.
• The complaint can be made through online to the CCPA and CCPA can directly investigate the matter without third party interference.
• The act made the resolution process easy for the consumers. Also, with the simpler process, it made the time for resolution shorter.

Levels of Redressal Machinery under COPRA Act

There is a three level of redressal machinery for getting resolution through COPRA Act, 2019

1. District Commission – Empowered to settle claims up to Rs.1 Crore.
2. State Commission – Empowered to settle claim exceeds Rs. 1 crore, but does not exceed Rs.10 crore, and also to settle appeals against District forum.
3. National Commission – Empowered to settle claim exceeds Rs.10 crores and also to settle appeals against State Commission.

For any discrepancies, The Supreme Court to settle appeals against National commission within 30 days from the date of the order.

Conclusion

The Consumer Protection Act, 2019 is aimed at providing quick and easy resolution for the consumers. The act made the redressal more easily accessible for the public.

Moreover, inclusion of all the services and goods where the there is a seller and buyer made it more versatile. With such strict regulation the quality of the services will improve indirectly as well as gives power over to the consumers.