Several provisions of India’s new Consumer Protection Act, 2019 came into force on July 20, 2020

by | Jul 28, 2020

Several provisions of India’s new Consumer Protection Act, 2019 came into force on July 20, 2020. The remaining provisions came into effect on July 24, 2020.

These mainly deal with:

  • liability of endorsers;
  • unfair trade practices in e-commerce; and
  • establishment of the Central Consumer Protection Authority.

Penalties for false or misleading advertisements will now be levied against the endorsers of products. Moreover, endorsers will be banned from endorsing any products or services for a period extending up to one (1) year for the first and up to three (3) years for every subsequent contravention.

The Consumer Protection (E-Commerce) Rules, 2020 have also been notified, which stipulate the obligations of e-commerce entities (both marketplace and inventory based entities) and sellers on e-commerce marketplaces. This includes provisions on:

  • setting up a grievance redressal mechanism;
  • disclosure of information regarding the goods and services being sold; an
  • prohibition of unfair trade practices (such as falsely representing itself as a consumer and posting reviews).

As e-commerce has become an even bigger business in the Covid era, let us hope that e-commerce companies adhere to the new rules and act in a consumer-friendly manner.

More News

US Fiscally Transparent LLC qualifies as a US Tax Resident

The Indian tax authorities have denied treaty benefits to fiscally transparent entities such as foreign partnership firms and limited liability corporations (LLCs) on the ground that such entities are not liable to tax in their home country and do not qualify as tax...

read more

ITR World Tax 2025 Rankings

We are pleased to share that we have been ranked by ITR World Tax in the practice areas of General Corporate Tax, Indirect Tax and Transfer Pricing. Akil Hirani, Managing Partner and Head of Transactions, and Ravi S. Raghavan, Partner - Tax and Private Client Group,...

read more

SEBI’s new proposal on FPI disclosures

The Securities and Exchange Board of India (“SEBI”) has released a consultation paper proposing to modify the disclosure requirements for large foreign portfolio investors (“FPIs”).  In August 2023, by its circular SEBI/HO/AFD/AFD-PoD-2/CIR/P/2023/148, SEBI...

read more

Akil Hirani interviewed by The Legal 500

Original source: Legal500.com Akil Hirani, Managing Partner and Head of Transactions, outlines the philosophy of the firm and explains how the firm is adapting to client needs. What do you see as the main points that differentiate Majmudar & Partners from your...

read more

Karnataka Gig Worker Law

The Karnataka government has recently issued the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024 (Bill) and has invited objections/ suggestions from stakeholders.  The provisions of the Bill will apply to all platform aggregators in...

read more