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Indian EconomyMedium

Which of the following was introduced for the first time by the Consumer Protection Act, 2019?

  1. A.The three-tier redressal machinery
  2. B.Product liability of the manufacturer and the seller
  3. C.The right to be heard
  4. D.Consumer Protection Councils

Correct answer

B. Product liability of the manufacturer and the seller

Explanation

The correct answer is B, product liability. The Act of 2019 devotes a separate chapter to it, making a manufacturer, a product seller or a product service provider liable to pay compensation for harm caused by a defective product or a deficient service, whether the defect lies in manufacture, design, the deviation from specifications, a warranty or inadequate instructions and warnings. Option A is wrong because the three tiers of district, state and national bodies already existed under the Act of 1986, the change being in their names and in how their pecuniary limits are fixed. Option C is wrong because the right to be heard is one of the six consumer rights recognised from the beginning. Option D is wrong because Consumer Protection Councils at the central, state and district levels also existed under the earlier Act as advisory bodies.

Read the full article: Consumer Protection and Competition Law: Notes and PYQs

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Q1.Indian EconomyAsked in: SSC MTS · 12 Oct 2021, Shift 3Medium

As per the Consumer Protection Act, 1986 a complaint can be filed in the District Consumer Disputes Redressal Forum if the value of the claim is up to:

  1. A.Rs. 5 lakh
  2. B.Rs. 15 lakh
  3. C.Rs. 20 lakh
  4. D.Rs. 10 lakh
Show answer
Correct answer: C. Rs. 20 lakh

The Consumer Protection Act, 1986 created a three-tier machinery and fixed a money limit for each tier: the district forum could hear a complaint where the value of the goods or services and the compensation claimed did not exceed twenty lakh rupees, the state commission took claims above that limit…

Q2.Indian EconomyAsked in: Delhi · 15 Nov, 2023, Shift 3Medium

Which of the following is NOT an element of the Competition Act 2002?

  1. A.Prohibition of anti-competitive agreements
  2. B.Regulation of combination
  3. C.Abuse of dominant position
  4. D.Prohibition of trade
Show answer
Correct answer: D. Prohibition of trade

The Competition Act, 2002 rests on three pillars, and freedom of trade is the very thing it protects, so no provision of it prohibits trade; on the contrary, the Act opens by stating that it seeks to ensure freedom of trade carried on by other participants in markets in India.

Q3.Indian EconomyEasy

Which Act governs consumer protection in India at present?

  1. A.The Consumer Protection Act, 1986
  2. B.The Consumer Protection Act, 2019
  3. C.The Monopolies and Restrictive Trade Practices Act, 1969
  4. D.The Essential Commodities Act, 1955
Show answer
Correct answer: B. The Consumer Protection Act, 2019

The new Act widened the definition of a consumer to cover online, teleshopping and multi-level marketing purchases, created the Central Consumer Protection Authority, introduced product liability and rules for electronic commerce, allowed mediation and e-filing, and renamed the three redressal bodies as Commissions.