INSIGHT UPSC QUIZ

GS Economy Miscellaneous
Q.

 Consider the following statements with reference to the provisions of ‘Consumer Protection Act, 2019’:

1. State governments are required to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.

2. Consumer Disputes Redressal Commissions (CDRCs) will also be set up at the district and state levels to address issues related to unfair trade practices. 

Which of the statement(s) given above is/are NOT correct?

Explanation:

ANSWER: (C) 

  • A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA. It was replaced by the Consumer Protection Act, 2019.

Statement 1 is not correct.

  • The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.  

Statement 2 is not correct.

Consumer Disputes Redressal Commission

  • Consumer Disputes Redressal Commissions (CDRCs) will be set up at the district, state, and national levels.  
  • A consumer can file a complaint with CDRCs in relation to: 
  • Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC.  Appeals from the State CDRC will be heard by the National CDRC.  Final appeal will lie before the Supreme Court.
  • unfair or restrictive trade practices; 
  • defective goods or services; 
  • overcharging or deceptive charging; and 
  • the offering of goods or services for sale which may be hazardous to life and safety.  

Jurisdiction of CDRCs

  • The District CDRC will entertain complaints where value of goods and services does not exceed Rs one crore.  
  • The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore.  
  • Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.

Product liability

  • Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service.  
  • To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency

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