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July 17, 2020

Consumer Protection Act, 2019 to partially come into force on July 20, 2020

The Central Government has notified that some provisions of the Consumer Protection Act, 2019 will come into force into July 20, 2020. Some of the salient features of this Act are:

  1. Mediation – The Act mentions that the District Commissions may explore the possibility of settlement through mediation before adjudicating a complaint. However, some categories of complaints (such as cases of medical negligence, fraud, fabrication of documents, forgery, impersonation, coercion, etc.) have been exempted from the scope of this provision.
  2. Liability of Endorsers – An endorser found guilty of false and misleading advertisements can be levied with a penalty of up to INR 10 lakhs.
  3. Product Liability – The Act introduces the concept of ‘product liability’ which means that it is the responsibility of a product manufacturer or product seller to compensate for any harm caused to a consumer by a defective product manufactured or sold or by deficiency in services relating thereto.
  4. Expansion of definition of ‘Deficiency’ – The expanded definition of deficiency now includes – (i) any act of negligence or omission or commission by such person which causes loss or injury to the consumer, and (ii) deliberate withholding of relevant information by such person to the consumer.

The Gazette notification can be accessed at – http://egazette.nic.in/WriteReadData/2020/220546.pdf

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