New Consumer Protection Act comes into force

SansadTV Bureau
Representative Image: Consumer Protection Act

Representative Image: Consumer Protection Act

The Consumer Protection Act (CPA), which was passed by the Parliament in 2019, is all set to come into effect from July 20. The new law is aimed at protecting consumers against errant manufacturers, distributors, and sellers.

It also empowers the district and state consumer courts to take better action against malpractices regarding transactions in which the consumer is directly or indirectly affected.

Now, consumers can get an increased amount as compensation from errant sellers, while the punishment for the latter instances has also been made more stringent.

The compensation amount is higher to the point that the consumer even can receive up to Rs. 1 lakh in case they are sold an adulterated or spurious product. The seller may also be sentenced to up to six months of jail.

And this is only in the case where the consumer has not been damaged by the product. In case they are directly or indirectly harmed by the product sold, the consumer can even receive up to Rs 5 lakh as compensation, and the jail term for the seller could extend up to seven years. If the consumer dies, the compensation could range up to Rs. 10 lakh and the seller could be sentenced to a life imprisonment term.