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With reference to Consumer Protection Act 2019, consider the following statements:
  1. The act has defined who is a consumer and the rights of the consumer.
  2. The act provides for penalties to both celebrities and advertising agencies involved in misleading advertisements.
  3. The act establishes National Consumer Dispute Redressal Commission to look into disputes involving monetary value of more than Rs. 1 crore.
Which of the statements given above is/ are correct?
  • a)
    3 only
  • b)
    1 and 2 only
  • c)
    2 and 3 only
  • d)
    1, 2 and 3 only
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
With reference to Consumer Protection Act 2019, consider the following...
Statement 1: The act has defined who is a consumer and the rights of the consumer.

This statement is correct. The Consumer Protection Act, 2019 defines a consumer as any person who buys any goods or services for a consideration. It also includes any user of such goods or services who is made to pay for it or is a beneficiary of the goods or services, provided that such use is made with the approval of the buyer. The act also lists the rights of the consumers, which include the right to be protected against marketing of goods or services that are hazardous to life and property, the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, and the right to seek redressal against unfair trade practices or restrictive trade practices.

Statement 2: The act provides for penalties to both celebrities and advertising agencies involved in misleading advertisements.

This statement is correct. The Consumer Protection Act, 2019 holds both celebrities and advertising agencies accountable for misleading advertisements. Section 21 of the act states that a celebrity who endorses false or misleading advertisements can be penalized with imprisonment for up to two years and/or a fine of up to Rs. 10 lakh. The act also provides for penalties on advertising agencies involved in such advertisements, with fines ranging from Rs. 10 lakh to Rs. 50 lakh, depending on the nature of the offense. These penalties aim to deter celebrities and advertising agencies from promoting misleading advertisements, thereby protecting the interests of consumers.

Statement 3: The act establishes National Consumer Dispute Redressal Commission to look into disputes involving monetary value of more than Rs. 1 crore.

This statement is incorrect. The Consumer Protection Act, 2019 establishes the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce the rights of consumers. However, it does not establish the National Consumer Dispute Redressal Commission. The act provides for the establishment of the District Consumer Disputes Redressal Commission, the State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission to adjudicate consumer disputes at the district, state, and national levels respectively. The National Consumer Disputes Redressal Commission deals with disputes involving a monetary value of more than Rs. 1 crore, while the other commissions handle disputes of lower monetary values.

Therefore, the correct answer is option 'B' - 1 and 2 only.
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Community Answer
With reference to Consumer Protection Act 2019, consider the following...
B
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With reference to Consumer Protection Act 2019, consider the following statements: The act has defined who is a consumer and the rights of the consumer. The act provides for penalties to both celebrities and advertising agencies involved in misleading advertisements. The act establishes National Consumer Dispute Redressal Commission to look into disputes involving monetary value of more than Rs. 1 crore. Which of the statements given above is/ are correct?a)3 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?
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