A Central Consumer Protection Authority (CCPA) was established under the Act of 2019 to handle cases involving consumer rights violations, misleading or false ads, unfair trade practices, and consumer rights enforcement. The members of the CCPA shall be appointed by the central government.
Penalties for a misleading advertisement:
One of the numerous issues dealt with by the Act of 2019 is misleading and fraudulent advertising. The repealed Act does not address the issue of deceptive and false advertising. According to Section 2(28) of the Act, a false description of a product or service in any advertisement that coveys unfair practice is misleading under the scheme of the Act.
Section 21 (3) of the CCPA specifies that the endorser of any such misleading and fraudulent ads might be barred from endorsing any other products or services for a year. Section 21 (4) of the Act punishes anyone who publishes false and misleading ads by imposing a jail sentence or a fine of up to 10 lakh rupees. The publisher of any deceptive advertisements is also liable for the effect of such advertisements to be neutralized.
One of the notable and crucial moves contained in the 2019 Act is product liability. This notion is dealt with in detail in a separate chapter of the Act. If a complaint is harmed as a result of a defective product or service, he can file a product liability lawsuit against the manufacturer, service provider, or seller. A product manufacturer will be held accountable under Section 84 of the Act if the product has a manufacturing fault, is defective in design, does not follow manufacturing requirements, does not comply with an implied guarantee, and does not include adequate instructions for proper product use.
In a product liability action, Section 85 of the Act discusses the service provider’s liability. To be liable under this section, the service provided must be deficient, faulty, inadequate, or imperfect, as well as an act or negligence withholding any information that is responsible for the harm caused, as well as a lack of adequate warnings and instructions, as well as conformance to express warranty or contractual terms.
If a product seller exercises substantial control over the product’s manufacturing, testing, design, labeling, or packaging, the seller will be responsible in a product liability case. There was a significant alteration or modification that resulted in the injury. The product seller provided an explicit guarantee that differed from the manufacturer’s warranty. The product vendor failed to maintain, assemble, or check the product with reasonable care.