Correct Option
The correct option is 2 only.
Explanation
The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986 to address modern challenges in the marketplace, particularly those arising from digitization and e-commerce. It aims to provide timely and effective administration and settlement of consumer disputes.
Statement-wise Analysis
- Statement 1 is Incorrect. The 2019 Act did not abolish mediation; rather, it explicitly introduced an Alternate Dispute Resolution (ADR) mechanism. The Act provides for the establishment of mediation cells attached to Consumer Commissions at the District, State, and National levels to facilitate early settlement of disputes without rigorous litigation.
- Statement 2 is Correct. The Act introduced the concept of Product Liability. This provision holds a product manufacturer, product service provider, or product seller responsible for any harm caused to a consumer by a defective product or deficiency in service. It allows consumers to claim compensation for harm caused by such defects.
- Statement 3 is Incorrect. The definition of a "consumer" under the 2019 Act was expanded to explicitly include those who buy goods or avail services through online modes, electronic means, teleshopping, direct selling, or multi-level marketing. Consequently, e-commerce transactions fall strictly within the ambit of the Act.
Key Takeaway
The Consumer Protection Act, 2019 introduced statutory provisions for Product Liability, Mediation as an ADR mechanism, and the inclusion of E-commerce transactions, significantly widening the scope of consumer rights compared to the 1986 Act.