Consumer protection act

The Consumer Protection Act,1986 is a product of pre-globalisation. It does not cover e-

commerce or online shopping. Since, the trade and commerce have been developing like
addition to digital payment, online shopping, advertisement, better services etc. We
required a developed and new act that could cover all the loopholes of the act passed in
1986. Therefore, on 6 august 2019 a revised version of the 1986 act was passed which
helped in removing or correcting certain loopholes that where there in the previous one.
The increasing digitalisation has opened doors for consumers but also at the same time this
development has made them vulnerable because of all the unethical and illicit trade
practices, digital scams, etc. Here comes the role of the consumer education and the
consumer protection act. The act protects the consumers from this exploitation and gives
them a sense of security that what they chose is right and gives them quality product at fair
prices.
Certain loopholes in the CPA,1986 that were removed by the CPA,2019
1. Misleading advertisements: In our country advertisements have an important role in
the sale of the goods and services. Therefore, the companies often pay huge amount
to the celebrities for endorsing their products. These celebs without the real
knowledge of the ingredients and effects of the product endorse them. People often
get attracted towards the product or the service based on the faith and the
reputation of the celebs. Later the celebs deny that they were not aware of the
quality of the product and escape their liability.
In order to keep the consumer safe from this kind of exploitation, The New Act has
set up the Consumer Protection Authority which will take actions against the
misleading advertisements because of whom many consumers are being exploited.
The Act empowers the said authority to ensure that no person takes part in the
publication of any advertisement which is false or misleading.
2. Consumer dispute redressal
Jurisdiction of district court: before it entertained complaints where the value of
goods or services didn’t exceed 5 lakhs. the new act entertains up to 1 crore rupees.
Jurisdiction in state commission: Before it was from 5 lakhs up to 20 lakhs. according
to new provision it is from 1 crore up to 10 crores.
Jurisdiction of national court: Before it was exceeding 20 lakhs and according to the
new provision it is exceeding 10 crores.
3. Computing pecuniary jurisdiction: The New Act has changed the method of
computing the monetary jurisdiction as it takes into account the actual consideration
paid for the goods not the real value of the goods unlike the earlier Act in which the
consideration was taken of the whole value of goods or services.
4. Appeals: Unlike the previous Act which gave time period of thirty days to appeal
against the order of district forum to appeal in state commission. Now, the time
period for appealing against the order of district forum is extended to forty-five days.
5. The New Act has changed the method of computing the monetary jurisdiction as it
takes into account the actual consideration paid for the goods not the real value of
 the goods unlike the earlier Act in which the consideration was taken of the whole
value of goods or services. It’s a positive that has been made because there are
various transactions made for specific good or transactions like a real estate
purchase where the purchaser might have made payment of some percentage of the
total value in terms of the construction agreement. The current act enables favours
both the consumer and seller in this regard.
6. Now, because of the new Act the State commission in the interest of justice may
transfer the case from one district commission to another at any stage of
proceedings (sec. 48 of the Consumer Protection Act 2019).
Also, the National commission has the power (in interest of justice) at any time of
proceedings, can transfer the case from one district commission to another, one
State commission to another (sec. 62 of the Consumer Protection Act 2019).
7. The Act introduces liability on the manufacturer, seller and product service provider
for any harm caused due to a defective product manufactured/sold or deficiency in
services, including deliberate withholding of information and any act of negligence. It
is a key aspect introduced in the New Act that would benefit the consumers. Under
the provisions of this Product liability chapter VI of the New Act, if a consumer after
buying a product and using it suffers any damage because of using it the
manufacturer or the seller or service provider will be held liable.
This is the different from the previous act as it didn’t include any provisions relating
to the damaged caused to the consumer because of the product that he has bought
for seeking compensation for the loss or injury was only remedy to go to the civil
courts, of which the process is very long.
For example, a person buys a microwave oven from an appliance store but the oven
was not working well while baking something it burst out and the consumer suffered
injury as a result of this the seller will be held liable in this case.
The New Act has introduced the concept of product liability and brings the new
concept where the consumer can claim compensation for the damages he has
suffered because of a product or service from product seller or manufacturer. The
term 'product seller' is defined to include a person who is involved in placing the
product for a commercial purpose and as such would include e-commerce platforms
as well. The defence that e-commerce platforms merely act as 'platforms' or
'aggregators' will not be accepted. There is increased risk for product seller or
manufacture or service provider as the new Act says that even if it’s proved that the
seller or manufacturer was not fraudulent or negligent, even then he will be held
liable under penal provisions. This is one thing which is negative or we can say it’s a
con of the new Act as the people can often misuse this power for their unjust
benefit. However, Certain exceptions have been provided under the New Act from
liability claims, such as, that the product seller will not be liable where the product
has been misused, altered or modified.
 Citations
https://blog.lawskills.in/2019/08/14/differences-between-consumer-protection-act-1986-
and-consumer-protection-act-2019/
https://factly.in/explainer-what-is-new-about-the-consumer-protection-act-2019/
https://www.mondaq.com/india/dodd-frank-consumer-protection-act/838108/consumer-
protection-act-2019-key-highlights

Written by :- Bhavya Pahuja

Phone: 9310075910
Email: bhavupahuja@gmail.com
College : Jamia Hamdard University