New Consumer Protection Rules, 2020, Notified for Dispute Redressal and General Provisions

The Central Government, through the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs), issued two significant notifications on July 15, 2020, bringing into effect the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020, and the Consumer Protection (General) Rules, 2020. Both sets of rules came into force on July 20, 2020. These rules were promulgated in exercise of the powers conferred by sub-sections of section 101 of the Consumer Protection Act, 2019 (35 of 2019). The Redressal Commissions Rules specifically supersede the Consumer Protection Rules, 1987, marking a comprehensive update to the procedural framework for consumer dispute resolution in India.

The Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020, establish detailed procedures for the functioning of the District, State, and National Commissions. Key provisions include definitions for terms such as 'appellant', 'authorised agent', and 'Consumer Welfare Fund', alongside outlining the working days and office hours for the National Commission. The rules prescribe a meticulous manner for the authentication of goods for analysis and testing, requiring complainants to provide samples in sealed containers, which are then forwarded to a recognised laboratory. The laboratory is mandated to submit its report within forty-five days, or an extended period granted by the National Commission. A structured fee schedule for filing complaints before the District, State, and National Commissions was introduced, with fees varying based on the value of goods or services. These fees are to be credited to the respective State or Central Consumer Welfare Funds. The rules also detail the procedure for handling complaints and appeals, including provisions for ex-parte decisions, adjournments, and specific timelines for disposal, aiming for resolution within three months for cases not requiring analysis and five months for those that do. Appeals before the National Commission require a deposit and adherence to specific filing procedures, including the submission of a memorandum and an affidavit for condonation of delay. The National Commission's composition was specified to include a President and not less than four and not more than eleven members, with at least one woman member. Furthermore, State Commissions are now required to furnish quarterly performance reports to the Central Government.

The Consumer Protection (General) Rules, 2020, define 'public utility service' to include transport, postal, telecommunication, power, water, fuel, natural gas, insurance, and major port or dock services, classifying them as establishments for the Act's purposes. The rules also specify certain activities exempt from being considered unfair trade practices, such as lotteries allowed under the Lotteries (Regulation) Act, 1998, and games of chance or skill not prohibited under the Public Gambling Act, 1867, where success substantially depends on skill rather than chance. A significant provision mandates the manner of issuing invoices, bills, cash memos, or receipts for goods sold or services rendered. The legislation provided: “Every invoice, bill, cash memo or receipt for goods sold or services rendered, issued by a seller shall have the following minimum particulars, namely: The name and address of the seller; a consecutive serial number... the total price in single figure, along with the breakup price showing all the compulsory and voluntary charges, such as delivery charges, postage and handling charges, conveyance charges and the applicable tax.” This aims to enhance transparency in consumer transactions, requiring detailed information on all charges. Electronic invoices are exempt from the physical signature requirement, but the serial number on any invoice cannot be altered.

These rules were enacted to provide the necessary operational framework for the Consumer Protection Act, 2019, which replaced the earlier 1986 Act. The legislative intent was to strengthen consumer rights and streamline the dispute redressal mechanism, addressing the limitations and procedural gaps present in the previous statutory framework. By superseding the 1987 rules, the government sought to align the procedural aspects with the modern provisions of the 2019 Act, which introduced new concepts like product liability and e-commerce regulations. The rules aim to ensure quicker and more effective resolution of consumer grievances by setting clear timelines for complaint and appeal disposal, thereby enhancing the efficiency of the consumer commissions. The detailed requirements for invoices and the clarification on unfair trade practices are intended to foster greater transparency and fairness in the marketplace, protecting consumers from deceptive practices and ensuring they receive clear information regarding their purchases. The establishment of specific procedures for testing goods and the reporting requirements for State Commissions are designed to improve accountability and the overall functioning of the consumer protection ecosystem.

Keywords: Consumer Protection Act, 2019, Consumer Protection Rules, 2020, Consumer Disputes Redressal Commissions, General Rules, Central Government, Ministry of Consumer Affairs, India, Consumer Rights, Invoice Rules, Unfair Trade Practice

Geo Tags: India, Delhi District: Not Applicable