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To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.
The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.
Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.
The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.
Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.
Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.
Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.
The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.
The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.
Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?
  • a)
    Yes, the endorsers are liable for unfair trade practices under the new law.
  • b)
    No, Sneha cannot be held liable.
  • c)
    Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.
  • d)
    Both (A) and (C).
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
To address the new set of challenges faced by consumers in the digita...
It is the duty of the endorsers to verify the veracity of the claims made in the advertisement. If the claim made in the advertisement is not fulfilled then the endorsers are personally liable.
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To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer?
Question Description
To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer?.
Solutions for To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer?, a detailed solution for To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice To address the new set of challenges faced by consumers in the digital age, the Consumer Protection Bill, 2019 was passed by Parliament on 6th August 2019 and received the President’s assent on 9th August 2019 replacing Consumer Protection Act, 1986 that did not cover ecommerce transactions.The definition of 'consumer' is widened to include any person who buys goods, through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.Revised pecuniary limits have been fixed. District forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000, the State Commission - between INR 10,000,000 and INR 100,000,000, and the National Commission – more than INR 100,000,000.The consumer now has flexibility to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer, unlike the current practice of filing it at the place of purchase or where the seller has its registered office address. Enabling provisions introduced for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.Establishment of a regulatory authority - Central Consumer Protection Authority (CCPA), with wide powers of enforcement, including an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into consumer law violations. It has wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 individual.Product liability now includes the product manufacturer, service provider and seller, for any claim for compensation. Product seller includes a person involved in placing the product for a commercial purpose and would include e-commerce platforms as well. There are increased liability risks for manufacturers as compared to service providers and sellers, considering that manufacturers will be liable even where he proves that he was not negligent or fraudulent in making the express warranty of a product.Unfair Trade Practices now also include sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2 years for the same. Fine for subsequent offence may extend to INR 5,000,000 and imprisonment up to 5 years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product/service for upto 1 year.The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on consumer courts, who already have numerous cases pending before them.Q. Sneha was a celebrity and she endorsed glowerYY cream. In the advertisement she claimed that the cream makes your face glow. Hira purchases the cream and applies it regularly, however his face does not glow. Can Sneha be held liable under the new law?a)Yes, the endorsers are liable for unfair trade practices under the new law.b)No, Sneha cannot be held liable.c)Yes, Sneha can be held liable only if she signed an endorsement contract with the company and not if she did it for free.d)Both (A) and (C).Correct answer is option 'A'. 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