In a Gazette Notification dated 15th July, 2020 the Ministry of Consumer Affairs, Food And Public Distribution (“Ministry”) has appointed 20th July, 2020 as the date on which the following provisions of the Consumer Protection Act, 2019 (“Act”) will gain force:
1. Product liability:
[Sections 82 to 87 (both inclusive)]
a. Applicability:
The provisions will apply to every claim for compensation under a product liability action by a complainant for any harm caused by a defective product that has been-
i. manufactured by a product manufacturer or
ii. serviced by a product service provider or
iii. sold by a product seller
2. Penalty Provisions:
[Section 90 and Section 91]
With the present Notification, the following provisions relating to penalty have become effective:
a. Section 90- Punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant:
Any person who manufactures for sale or stores or sells or distributes or imports any product containing an adulterant will be punished, if such act—
(i) does not result in any injury to the consumer- Imprisonment upto six months and with fine which may extend to Rs. 1 Lakh;
(ii) causing injury not amounting to grievous hurt to the consumer- with imprisonment upto one year and with fine which may extend to Rs.3 Lakhs;
(iii) causing injury resulting in grievous hurt to the consumer- with imprisonment utpo seven years and with fine which may extend to Rs.5 Lakhs; and
(iv) results in the death of a consumer- with imprisonment of minimum 7 years which may extend upto imprisonment for life and with fine of minimum Rs. 10 Lakhs.
b. Section 91- Punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods.
Whoever manufactures for sale or stores or sells or distributes or imports any spurious goods shall be punished, if such act—
(i) causes injury not amounting to grievous hurt to the consumer- imprisonment upto 1 year and with fine which may extend to Rs. 3 Lakhs;
(ii) causes injury resulting in grievous hurt to the consumer- imprisonment upto 7 years and with fine which may extend to Rs. 5 lakhs; (cognizable and non bailable offence)
(iii) results in the death of a consumer- with imprisonment for a minimum period of 7 years which may extend to imprisonment for life and with fine of minimum Rs.10 lakhs. (cognizable and non bailable offence)
Please note- Notwithstanding the penalties mentioned above, in case of first conviction, the court may suspend any licence issued to the person charged of such offence for a period up to two years, and in case of second or subsequent conviction, cancel the licence.
3. Provisions relating to Consumer Disputes Redressal Commission:
[Sections 28 to 73 (both inclusive); [Except sub-clause (iv) of clause (a) of sub-section (1) of section 58.]
The provisions deal with the establishment of and manner in which proceedings are to be carried out in the :
i. District Consumer Disputes Redressal Commission known as the District Commission, in each district of the State.
ii. State Consumer Disputes Redressal Commission, to be known as the State Commission, in the State
iii. National Consumer Disputes Redressal Commission, to be known as the National Commission
4. Mediation:
[Sections 74 to 81 (both inclusive)]
a. The provisions deal with the establishment of a consumer mediation cell which has to maintain-
(i) a list of empanelled mediators;
(ii) a list of cases handled by the cell;
(iii) record of proceeding; and
(iv) any other information as may be specified by regulation
b. The provisions lay the down the procedure of mediation and the procedure of settlement through mediation.
5. Other Provisions:
The following other provisions are also gaining force from 20th July, 2020:
i. Section 2 of the Act which provides the definitions
[Exceptions- The following sub clauses of section 2 are not gaining force through the present Notification:
Subclause (4) which defines “Central Authority”.
Subclause 13 which defines “direct selling”
Subclause 14 which defines “Director-General’
Subclause 16 which defines “e-commerce”
Subclause 40 which defines “Regulator”]
ii. Section 3 to Section 9 which deals with the “Consumer Protection Council”
iii. Sections 95, Section 98, Section 100 which deal with “Presidents, members, Chief Commissioner, Commissioner and certain officers to be public servants”
iv. Section 101 which deals with the Power of the Central Government to make rules.
[subject to specific exceptions]
Source: Ministry of Consumer Affairs, Food And Public Distribution
