Co mp a ra ti ve Pu b li c La w

“BRIEF OVERVIEW & COMPARATIVE ANALYSIS OF THE

CONSUMER PROTECTION ACTS, 1986 & 2019”

Submitted by:

Ms. Riddhi Vadodaria

Submitted to:

SVKM’s NMIMS Kirit P. Mehta School of Law (KPMSOL)

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TABLE OF CONTENTS

Sr. No. Title Page Nos.

1. ACKNOWLEDGEMENT 3-4
ABSTRACT
2. CHAPTER 2: RESEARCH METHODOLOGY 5-6
2.1 Research Objectives
2.2 Research Questions
2.3 Research Methodology
2.4 Mode of Citation: Bluebook, 20th Edition
3. CHAPTER 3: INTRODUCTION 7-10

4. CHAPTER 4: CONSUMER PROTECTION IN INDIA 11-15

5. CHAPTER 5: THE NEW ERA IN CONSUMERISM 16

6. CHAPTER 6: A BRIEF COMPARATIVE ANALYSIS 17-19

BETWEEN THE 1986 ACT VIS-À-VIS THE 2019 ACT
7. RECOMMENDATIONS & SUGGESTIONS 20-22

8. CONCLUSION 23

9. REFERENCES/BIBLIOGRAPHY 24

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Acknowledgement

I would like to express my sincere thanks to my Comparative Public Law (CPL) Professor,
our Respected Dean Dr. Alok Misra , the NMIMS-SOL, the faculties of the NMIMS E -
Resources & E -Library, who gave me this golden chance to do this wonderful Research
Paper on the Topic “BRIEF OVERVIEW & COMPARATIVE ANALYSIS OF THE
CONSUMER PROTECTION ACTS, 1986 & 2019 ” as and towards the part fulfillment of
ICA in the Subject ‘ Comparative Public Law ’, and which has not only assisted me in doing
a lot of Research, but, I also came became aware of many new things, I am immense fully
thankful to all of them.

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ABSTRACT

The fast -paced commercialization and globalization affects all spheres of life especially
when it includes the moolah and merchandise. Consumerism 1 (as it is renowned -ly known
as) has dominated the Indian markets since ancient times. Issues relating the consumer
affects whole lot of the entire population since everyone is connected in some way or the
other for goods and services. Today the consumers have become self -aware of their rights
unlike the traditional consumers which considered receipt of deceptive or defective goods
as an unfavorable planetary position in their horoscope! U nlike the saying “Consumer is
the King” he is exploited leaving to him financial losses which is highly paradoxical. In the
present research paper, we shall try to put forth the new aegis of the newly introduced Act
of 2019 contains therein a more holistic and stringent rules to protect the interests of the
consumers. Further, a brief overview & history of the laws governing the consumer
protection in India. A brief outlook of the prevalent inequalities in consumerism and
corporate ship resulting in the nee d for repositioning of the social security and welfare
codes, revamping the consumer laws to achieve environmental, social, and good governance
objectives. Subsequently, a brief overview of the history & evolution of the consumer
protection laws in India i s done, further the pressing need for the revamping of the consumer
laws, broadening the outlook, protecting consumers in the 21 s t century. The revamping of
the consumer led to the introduction of the Consumer Protection Act, 2019, next, a tabular
comparative analysis of the differences between the Old Act vis -à-vis the newly introduced
Act is done. Lastly, suggestions and recommendations to combat new challenges, increased
regulatory measures needed, which may resultantly lead towards the proper introducti on &
the implementation of the new act governing the consumers.

Key Words: economic growth, business practices, corporates, consumer protection,

consumer laws, exploitation, misleading advertisements , professional misconduct &
negligence, technological development, globalisation, increased competitiveness,
sustainable & responsible business, comparative analysis, etc.

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“Co n su m eri sm ” i s th e c o n cep t wh i ch seek s th e p ro tec tio n an d p ro m o tio n o f th e co n su m er’ s in te res t.
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RESEARCH METHODOLOGY:

2.1: Research Objectives:

1. A brief overview of the prevalent inequalities in consumerism & corporate ship,

pressing the need for the repositioning of the social security & welfare codes,
resultantly revamping the consumer protection in India.
2. A brief overview of the evolution & the laws governing the Consu mer Protection in
India.
3. A brief overview of the newly introduced 2019 Act protecting the consumer rights, a
comparative analysis of the 1986 Act vis -à-vis the 2019 Act.
4. Suggestions and Recommendations at the at the Individual, Organizational, National
and International Level/s for ensuring the overall protection of the consumer rights
& interests.

2.2: Research Questions:

1. What are the reasons contributing to further widening India’s wealth -gap, economic
inequalities, wage disparities? Especially during the Covid -19 worldwide pandemic
situation.
2. What are the newly introduced 2019 Act, which have replaced the more than 3 -decade
old 1986 Act?
3. What is the overview of the new 2019 Act ? Its comparison of few standards and few
concepts.
4. How far has India reached in covering the issues in the mordern competitive
marketplace? Resultantly, comparative analysis of the 1986 Act vis -à-vis the 2019
Act has been done.
5. What are the recommendations and suggestions at the individual, organizational,
national, and international level for ensuring the overall protection of the consumer
rights & interests, but also, for leading India towards achieving the sustainable and
responsible businesses aiming towards the triple bottom line?

2.3: Research Methodology:

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Given the nature of research, the primary source/s of data collection has been the Secondary
data collection method via the Secondary research method and simultaneously, comparative
brief research between the Old Act vis -à-vis the New Act has been carried out, as brief
comparison/comparative analysis undisputedly being one of the most powerful tools used
in intellectual inquiry. The present topic has several aspects and to cover the same, various
sources and/or books, articles, webs ites, journals, on -line legal databases, laws, etc. has
have been analyzed. In discipline such as the consumer protection Act , firstly, an
identification of the inequalities persisting in consumerism & corporate ship, resulting in
the repositioning of the social security & welfare codes, leading to the revamping of the
consumer laws in India. Secondly, a brief overview of the evolution of the law/s governing
the consumer protection in India. Thirdly, broadening the outlook leading to the
introduction of a new era in consumerism, leading to the introduction of the 2019 Act.
Fourthly, key highlights and a comparative study of the current and the newly introduced
Act/s are must. Lastly, apart from the aforesaid , once these details have been consolidated
is a further study on ways, suggestions, and recommendations to improve in the overall
situation at the individual, organizational, national, and international level , for ensuring
the overall protection of the consu mer rights & interests, also, leading India towards
achieving the sustainable and responsible businesses aiming towards the triple bottom line .

Published full papers & abstracts containing important information in English only were
selected. Thesis, research, working papers, online newspaper articles, individual articles,
legal databases, etc. were considered were available.

2.4: Mode of citation:

Bluebook, 20 t h Edition shall be followed throughout the paper.

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INTRODUCTION:

The worldwide economic sentiments have regressed, facing severe backlash from the
overdependence on Chinese merchandise and fabrications, hence, maiming the global
economy. The late French American microbiologist turned humanist, René Jules Dubos,
illustriously vocalised that every civilisation creates its own diseases and epidemics, with
certain adherent societal problems and unrest. With the unceasing ninth month of the Covid -
19 pandemic, it is assured that with us will be the gravest form of the already deep -rooted
worldwide defiance: Inequality. The unprecedented Covid -19 pandemic has foregrounded
the socio-economic inequalities which has indeed trickled faster to the poor. The recent
global conversations turned on its axis towards hunger, poverty, and inequality, resulting
the world into a pull -back during times where it all subsisted at a great extent. During the
18 t h Nelson Mandela Annual Virtual Lecture 2020, António Guterres, Secretary -General of
the United Nations stated,

‘The COVID-19 pandemic has played an important role in highlighting growing

inequalities. It exposed the myth that everyone is in the same boat. While we are
all floating on the same sea, it’s clear that some are in super yachts, while others
are clinging to the drifting debris.’ 2

The prevalent inequalities in consumerism & corporate ship:

The fact that a virus can disrupt the way of life and business exposes the vulnerability to
external factors. The need of the hour are multinationals and corporates, throug h proper
contextualizing and evolving their roles, can become the saviors of world economy.
Companies are perpetrators of economic risk; environmental deputation and the unrest has
led to high degree of public mistrust in capitalism which has been exposed by the Covid -19
crisis. In times like these, business involvement in social welfare and development
especially in tackling inequality, inculcates good corporate governance culture, which is
critical to a company’s longevity and contributes majorly to a cou ntry’s progress. Social

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Th e 1 8 t h N el so n Man d ela An n u a l L ec tu re wa s d e liv ered b y Un it ed Nat io n s ( UN) S ecre tary - Gen er a l
An tó n io Gu ter re s o n Sa t ur da y 1 8 J u ly 2 0 2 0 a t 3 pm SA S T/9 a m E S T. O win g to th e Co v id - 1 9 p a n d em ic,
th e l ec tu re wa s, f o r th e f ir s t tim e , an o n lin e - o n l y ev en t, d el iv er ed at th e UN h ead q u arte rs in N ew Yo rk
Ci ty . h ttp s: // ww w.n el so n m an d el a.o r g / co n t e n t /p a g e/an n u a l - lec tu re - 2 0 2 0
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welfare and development have been a tradition in India, its evolution from philanthropists
and leaders like Mahatma Gandhi and his theory of trusteeship of wealth. With this, the
corporate sector must focus on achieving instead of o ne, a ‘triple bottom line’ - focusing on
people, profit, and the planet. The World Economic Forum released the ‘Davos Manifesto:
The Universal Purpose of a Company in the Fourth Industrial Revolution’ in the year 2020,
at their yearly meeting, in which, a mongst other things pointing towards stakeholder
capitalism , it also emphasized that the performance of a company must be measured not
only on the return to s takeholders, but also on how it achieves its environmental, social,
and good governance objectives for ensuring responsible businesses .

Repositing of the social security & welfare codes , resultantly revamping the consumer
laws in India:

Looking at the growing interdependence of t he world economies & taking into consideration
the increasingly spreading international character of the many business practices, it has
become inevitable to notice that the consumer rights protection and promotion has
inadvertently become high necessity. Consumers worldwide are demanding value for their
hard-earned money in the form of quality goods & best services. Modern technological
developments innovations have undoubtedly made great impact on the quality, accessibility,
availability & the safety of goods and services; however, the fact of life is that the
consumers are still the victims of unscrupulous and exploitative practices prevailing since
years. Consumer exploitation includes numerous forms like food adulteration , low quality
goods, spurious drugs, dubious hire pur chase plans, high prices, poor quality, deficient
services, deceptive & misleading advertisements, hazardous products, black marketing ,
hoarding of goods, formation of business cartels for increasing prices amidst the high
demand situation, etc. amidst the many others. Therefore, this research paper focusses
mainly on the consumer protection issues from the various aspects and perspectives amidst
the worldwide pandemic situation, and further, also puts forth some remedial or suggestive
measures and recommendations, which may prove to be helpful for the promotion & the
protection of the consumer rights.

The theory of responsible business was first embedded in the National Voluntary Guidelines
on Social, Environmental and Economic Responsibilities of Business (NVGs) released in
2011 beyond its shareholders to its stakeholders including but not restricted to the
employees, community including the consumers , and towards the environment. The Covid -

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19 pandemic has elevated the importance of social facto rs as a key determinant of
companies’ long-term success:

• Health and safety of all the stakeholders,

• Diversity,
• Anti-discrimination, race, caste, creed, gender inequalities ,
• Stock training,
• Protecting the overall interests of the consumers, etc.

The need of the hour is to inculcate consumer protection in the minds of every businessman
right from the planning stage. Especially, the current and emerging challenge faced by
humanity – the Covid-19 pandemic, the unruly climate change, ever -increasing resource
scarcity and large-scale growing inequalities – have taught us that an interdependent worl d
can only thrive if every being on the planet behaves responsibly and considers himself
accountable to one another.

Repositioning ‘Consumer is the king’:

Kautilya aka Chanakya often called India’s Machiavelli draftsman of the ‘Chanakya Neeti’
basically focused on the concept of self -awareness for the consumers and punishment for
black marketing or hoarding of goods. India no longer needs to be an Ashokan republic but
a Chanakya one in which offenders are severely held accountable for. In the i mmediate
aftermath of announcing the lockdown, the demand and consumption of FMCG products and
household products increased massively owing to panic buying amongst the consumers,
especially increased digitization of consumer shopping journey. Due to massiv e disruptions
in demand and supply targets, consumers were forced to buy vegetables and essentials at
unreasonably high price, amidst the extending lockdown and disruptions. Amidst the
widening inequalities, the consumers have no choice to but to procure e ssential goods at
double the market rate due to abrupt lockdowns and social distancing measures. The
consumer market is severely impacted & disrupted through four vectors:

• Supply disruptions,
• Global and domestic demand,
• Stress on banking and financial s ectors,
• Capital market parameters.

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Thus, resultantly, the inevitable need for the revamping of the consumer laws was finally
inculcated with the introduction of the recently & the newly introduced Consumer
Protection Act, 2019.

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CONSUMER PROTECTION IN INDIA:

A bird’s eye view of evolution of consumer protection in India:

In ancient India, all the sections of the society followed certain ‘Dharmas’ rather than
certain laws which could be guaranteed to all consumers. ‘Dharma’ was considered as
constant and everlasting, then all riches, vitality, life, and body are fickle, and fay as stated
in the ‘Chanakya Neeti’. Kautilya aka Chanakya often called India’s Machiavelli draftsman
of the ‘Chanakya Neeti’ basically focused on the concept of self -awareness for the
consumers and prevention, punishment for black marketing or hoarding of goods. The
principles of Dharma were basically derived from the ‘Vedas’ which formed primary sources
of law in India. The Manu Smriti, Kautilya’s Arthshastra in which consumer protection
occupies a prominent place in which the trade guilds were prohibited from taking recourse
to black marketing and unfair trade practices. It was during the Chandragupta’s reign in
which speculations and fraudulen t transactions bore severe punishments. Some years before
the 1960’s the consumer rights were practically non -existent. One of the outstanding
achievements of the British rule was modernization of the traditional consumer laws which
resulted in replacement of the conventional legal system of India. Due to the aforesaid, the
old law underwent considerable adaptations, replacements and even inception of certain
contemporary laws. Some of the laws during the British reign were the Indian Penal Code,
1860, the Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Drugs and Cosmetics
Act, 1940 (to name a few) which provided specific legal protection to the consumers. The
Sale of Goods Act remained an exclusive source of consumer protection in India for 55 l ong
years which remains an ‘Admirable piece of legislation’. 3 Citing certain imperfections in
the laws forced the makers to introduce a ‘cheap, simple and quick justice’ to Indian
consumers leading to the commencement of the Consumer Protection Act in th e year 1986.

Relevance of ancient thoughts in the present era:

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Dr . A . R aj en d ra Pr a sad , Hi sto r ica l evo lu t io n & co n su me r p ro te ct io n in I n d ia : A b i rd ’ s e ye v ie w, Jo u rn a l
o f Tex as Co n su m er L aw , h ttp : // ww w. jtex co n su m erla w.co m /V1 1 N3 / J C CL _ In d ia.p d f , la st ac ce s se d o n 2 2 -
11-2021.
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Right from the Chandragupta’s reign till the present period, the consumers are contemplated
of great importance. Unlike the aforesaid, the Courts today are in great dilemma. Which
comes first: the ignorant consumers or the manufacturers, retailers, or the law itself which
is insufficient to keep up with the emerging country ? One of the ancient scriptures which
puts up the consumer in a very important position is the Kautilya’s Arthshastra as discussed
above. The treaties comprise of a cohesive whole during the Mauryan period. The
Arthshastra should be assessed in its context as it contains many points of modern economi c
conditions.

The consumer protection in India is still in i ts infancy. The average Indian consumer who
was noted for his patience and tolerance has now emerged as a wounded lion ready to face
the legal system to attain justice. The things are changing - slowly but steadily - the
momentum has increased considerably a nd not far is the day where consumer will be the
King! Every citizen in the democracy has the power and the need to exercise his rights wit h
responsibility the consumer empowerment in India needs to go a long way. When we cross
the summer, the spring canno t be left behind, and the circle goes on and on! Is what the
modern world needs to understand that one act has equal repercussions, and the effect
follows on to the common man. He is a wise man who does not grieve for the things he has
not but rejoices for those which he has. Which advised against the mindless consumerism
and enlightened hedonism of our age.

The consumer protection in India is not only limited to the Consumer Protection Act 1986
& 2019, but it extends to a variety of laws. There are three aspects of consumer protection
in India:

• Physical protection of consumers.

• Protection of economic interests, right from manufacturers to consumers.
• Promotion of public interest by emphasizing on Sustainable development and CSR
practices.

Other laws governing the protection of the consumer/s:

The GOI has been vigilant against the dubbing interests of the consumer amidst the global
competitiveness scenario where all the traders, sellers, manufacturers, etc. are continuously
involved in damaging & dubbing the interest of the consumers. Apart from the CPA, 2019,
there are certain other existent laws governing the consumer protection in India:

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• The 1973 Code of the Criminal Procedure governing criminal liability if any against
the trader, seller, manufacturer, etc.
• The 1860 Indian Code of Penal procedure/s to act as a deterrent.
• The 1949 Act governing the Drug & Cosmetics empowers CG to regulate the overall
working of the said Act.
• The 1954 Act governing the prevention of Food Adulteration.
• The 1954 Act governing the Essential Commodities Act.
• The MRTP Act, 1969.
• The Act relating to the standard weights and measures.
• The 2002 Act governing the Competition in India.
• The Act relating to the Food Safety Standards.
• The 2009 Act relating to the Le gal Metrology.
• The CA, 2013 & its corresponding Rules.
• The Indian Constitution, etc.

It has become equally important for businessmen when the CSR (Corporate Social
Responsibility) (defined and covered under the CA, 2013 & its corresponding Rules theret o)
is at its peak of consumer protection. The need of the hour is to inculcate consumer
protection in the minds of every businessman right from the planning stage. Since times
immemorial, all consumers around the world have right to basic needs and dignifi ed living
including the 86 t h Amendment which included right to education as a fundamental right in
the year 2002. Apart from that, every consumer has the right to choose goods by way of
availability, access, and ability in accordance with the provisions of the MRTP Act of 1969.
A new competition law was also introduced to regularize and legalize the competition
amongst Indian retailers and manufacturers. Apart from the abovementioned, right to
information was also introduced in 2005 which provided the consu mers with right to
information about the quality, quantity potency, purity of the goods and services to protect
himself against abusive trade practices and introduced campaigns such as ‘JAAGO GRAHAK
JAAGO’ and introduction of national consumer helpline numbers. Along with the aforesaid
laws there was the need to introduce consumer education in the school curriculum and
universities and the IGNOU even devised a syllabus for distant education on consumer
protection. In the act was set up a quasi -judicial machinery at each district, state, and
national levels. Along with it, consumer courts are set up, and any individual can file a
written representation in the High Courts and the Supreme Court of India. Along with an
increase in choices raised the concern for safe and clean environment for all. The concept

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of sustainable development is promoted by the government thorough indirect measures. The
concept of ‘Carbon footprints’ has been a success in India which hel ps the businesses as
well as the consumers educate themselves regarding the amount of pollution a particular
business and the product is raising. The concept of sustainable consumption is a very
important one in the todays’ millennium world. Along with the goods, the need was to
protect the naïve consumers from services of the professionals who adopt unfair methods
and means. The Indian Medical Association v V.P.Santha , 4 the landmark judgement in which
the medical professionals were brought under the purvi ew of section 2(1) (o) of the CP Act,
1986. In Jacob Mathew v. State of Punjab 5 and other two doctors were also held liable for
medical negligence by the Supreme Court of India. On 17th February 2009, a civil appeal
was filed one Martin F. Dsouza v Mohd I shfaq 6 held that the Hippocratic Oath has become
just a mere formality and wholly commercialized, but the entire medical fraternity cannot
be held liable unlike the few. As sometimes, despite the best efforts the treatment of certain
patients fails which does not mean that every doctor, surgeon is always to be held liable
unless there is strong evidence to suggest the contrary. As in the end i t is truly said by
David Ogilvy that: “Consumer accountability derives quality and efficiency. ” Apart, the
world consumer rights day is celebrated every year on 15 March, was inspired by President
John F. Kennedy who was the first leader in the world to address the issue of consumer
rights in a special message on 15 March 1962. The recently passed bill seeks to replac e the
three-decade old Act of 1986 suggesting the setting -up of the Central Consumer Protection
Authority. The bill puts up great emphasis on the e -commerce sector envisioning a new ray
of hope for Indian consumers.

Protecting consumers in the 21 s t Century: Broadening the outlook

“Consumption is the sole end and purpose of all production; and

the interest of the producer ought to be attended to, only so far as

it may be necessary for promoting that of the consumer .” 7

In the recent past, Justice A.M . Khanwilkar 8 stated forth that ‘Consumer is the king’, which
underscores the consumer trust and confidence, which are the hallmarks of a robust

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Ad am Sm i th
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mechanism protecting the consumers. There are other legislations & legal frameworks
which protect the consumers in India apa rt from the consumer protection act. To combat
new challenges, increased regulatory measures were needed, which resultantly led to the
introduction and the implementation of the new act governing the consumers.

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THE NEW ERA IN CONSUMERISM

Consumerism has become like a new religion complete with its preachers and punishment
to anyone with the temerity, which is a depressingly medieval outlook on economic life as
in the end it is held that consumerism thrives majorly on emotio nal voids. Even today,
though the situation has improved to great extent gullible consumers are continued to be
exploited by offering ‘Flat 50% off’ ‘Buy one get one’ etc.! If the Indian states are reduced
to such a condition, then the retailers and the m anufacturers who comprise of majority
percent of the population don’t deserve to be defended by soldiers who are willing to lay
lives for their country. Why fight and defend a government and people who don’t care for
them? The need is to revitalize the PDS (Public Distribution System) as well as punishment
and fines for the black marketers, adulterers, hoarders. As seen from the above written
context and data, it can be felt that a strong blow of the consumer movement is the need of
the hour. India no longe r needs to be an Ashokan republic but a Chanakya one in which
offenders are severely held accountable for. At the end is a small advice: A consumer should
think twice before buying any goods especially luxury goods, as it is well established by
Lucy Siegel, Journalist and Author, that ‘fashion is never free. Someone, somewhere is
paying.’

Revamping of the 3-decades old Consumer Protection Act:

The development of a country is determined by certain parameters, amidst which the

economic well -being of any country proves to be the most crucial parameter. With the swift
expansion in the business sector in the past decade, which resulted in the seller, traders
having an upper hand over the consumers, proved to be sort of side -effect of the increased
commercialization amidst the industrialization. All these factors pressed the increased need
for the revamping of the consumer protection laws in India. The newly introduced and
facilitated Consumer Protection Act, 2019 9, replaced post the revamping of the more tha n
3-decade old Consumer Protection Act, 1986. It is projected that soon, nearly more than
half of the total population shall prefer shopping online, pressing to the inevitable need for

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Th e Co n su m er Pr o t ect io n Act , 2 0 1 9 wh ich h a s c o m e in to fo rce w.e .f. Ju l y 2 0 2 0 , aft er th e in tro d u ctio n &
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Re sp e cted Pr e sid en t o f I n d ia M r . Ram Na th Ko v i n d .
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the implementation and proper functioning of the newly introduced Consu mer Protection
Act, 2019. 10 The 2020 World Consumer Rights Day, celebrated the theme of “Sustainable
Consumer” 11, indicating towards global sustainable consumption coupled with responsible
businesses. Besides the legislations at the national level, there e xists certain principles &
standards at the international level which include the UN Guidelines, the UNCTAD Manual,
amongst others. However, after coursing through plethora of issues in the consumer law sin
India, there are certain perennial and contempora ry questions, that remain unanswered.

Key highlights of the newly introduced provisions in the new 2019 Act for the
protection of the consumer’s rights:

• The then existing definition of the term “Consumer” provided limited scope, whereas
the new Act has b roadened its scope.
• The new Act also covers online transactions, which was indispensable amidst the
changing global preferences, mordern technological advancements, and the increased
competition across countries.
• Introduction of the central regulatory Authority i.e., the CCPA which is responsible
for the developing, implementing & regulating the laws, regulations & procedures
relating to protecting the consumers from the defective products, deficiency in
services, misleading advertisements, etc.
• The Pecuniary Jurisdiction has been increased and improved, giving the lower courts
more jurisdictional power.
• The newly introduced certain terms like, Product Liability, broadened the definition
of unfair trade practices, false and/or misleading advertisements.
• The alternate ways of out -of-court settlement like Mediation has been introduced
under the new Act.

10
Th e Co n su m er Pr o te ct io n B il l, 2019, S tat em en t of Ob j ec ts an d Rea so n s,
h ttp s: // ww w.l iv e la w.in / p d f _ u p lo ad /p d f _ u p lo ad - 3 6 2 6 8 4 .p d f , la s t v i si te d o n 2 2 - 1 1 - 2 0 2 1 en fo rc ed b y th e
Min i s try o f Co n su m e r Af f air s, Fo o d an d Pu b li c D is trib u tio n , No tif ic atio n S. O. 2 3 5 1 (E),
h ttp s: // co n su m eraf f air s. n ic.in / si te s/d ef au lt/ fi le s /Ac t %2 0 in to %2 0 fo rce.p d f , la s t ac ce s se d 2 2 - 1 1 - 2 0 2 1 .
11
Th e Su s ta in ab l e Co n s u m er – Wo r ld Co n su m er R ig h t s D ay 2 0 2 0 th em e, Co n su m er s In t ern atio n al,
h ttp s: // ww w.co n su m er s i n ter n a tio n al.o r g /n e ws - re so u rc es /n e ws /re lea s es /th e - su st ain ab le - co n su m er - wo rld -
co n su m er - rig h t s- d ay - 2 0 2 0 -
th em e /# : ~: tex t = Co n su m er s %2 0 I n ter n a tio n al %2 0 h as %2 0 an n o u n ced %2 0 th at,r ig h t s %2 0 an d %2 0 p ro t ect io n %
2 0 can %2 0 p lay . , l a st v is ited o n 2 2 - 1 1 - 2 0 2 1 .

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S VK M’ s N MIMS Ki ri t P. Meh ta S ch o o l o f La w ( KP MS O L)
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• E-commerce Platforms are levied with stricter penalties in case of selling false,
duplicate, & counterfeited produ cts.

A tabular comparative analysis between the Old Act vis -à-vis the Newly introduced
2019 Act:

Sr. Key point/s The Old 1986 Act (CPA The New 2019 Act (CPA
No. 1986) 2019)
1. The ambit of law Includes all the goods & Includes all the goods &
& the increased services, whereas free, services, imbibing all the
coverage of the personal services & goods mordern modes of
Act, amendment acquired for business purpose transactions, whereas free,
in the definition were specifically excluded. personal services & goods
of “Consumer”. acquired for business purpose
were specifically excluded.
2. Regulatory The old Act did not contain a On the other hand, the new
Authority i.e., dedicated regulatory Act introduces the new
the CCPA authority for the protection of regulatory authority named
the rights of the consumers the CCPA, which shall
along with the other CPAs at develop plans for the
the District, State and protection of the consumers
National Level. along with the other CPAs at
the District, State and
National Level.
3. Pecuniary The old limits granted limited The new pecuniary limits
Jurisdiction power to the District & State have been increased, and the
Consumer Courts District & State Consumer
Courts have been granted
more power now, as it shall
guarantee easy access to all
the consumers across the
nation.
4. New definition/s Product Liability, Product
Liability Action, etc.

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5. Unfair Trade The ambit of unfair trade The ambit of unfair trade
Practices practice was limited and practices has been improved
narrow under the old Act. under the new Act to protect
any customer’s private data.
6. Misleading The old Act does not strictly The new Act imposes li ability
Advertisements contribute much to the for misleading
concept of misleading advertisements, especially
advertisements. amidst the Covid -19
pandemic, instances of false,
misinformation, etc.
7. ADRs, Mediation The old Act was not paced up The new Act has finall y
with the mordern, more inserted the provision
simpler methods of dispute alternative settlement
settlements. methods like Mediation,
promising speedy justice.
8. Authorities There were DCF, SCF, There are CCPA, DCDRC,
NCDRC, etc. SCDRC, NCDRC.
9. Increased No such provision/s. Newly introduced provisions
liabilities as the liability of product
manufacturer, product service
providers, product liability
actions & its exceptions, etc.
10. E-Commerce No such provision Buying & selling of products
& services through the
electronic platforms are
majorly included in the new
Act.
11. Penalty Imprisonment & Fine Increased Imprisonment &
provisions increased Fine

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Co mp a ra ti ve Pu b li c La w

RECOMMENDATIONS & SUGGESTIONS

The GOI has proved its importance by replacing & implementing the new 2019 Act,
especially amidst the loophole’s existent in the old 1986 Act. 12 The most important
amendment is the recognition of the strict liability implemented upon the online sellers
through online platforms for selling counterfeited goods and/or false, misleading services.
Also, the government has introduced the Central Regula tor i.e., the CCPA, although, there
has been no specified deadline for the implementation and constituting the CCPA.

Methods which can be implemented for ensuring the protection of the consumer’s rights
& interests:

Two categories: Self-regulation throug h consumer & business associations. Further,

government interventions can help towards the protection of the largest unorganized public
bodies.

Role of the society, consumers at large, contributing towards well -being and the
protection of the consumers:

Apart from the aforesaid, the Rights & Responsibilities of the consumers has increased, for
the assurance of the fulfillment of parallel duties for its absolute implementation.
Consumer/Customer responsibility should be well -defined, especially the GOI & judiciary
can work towards safeguarding them. With the increased influence of commerce in man’s
life, industrial production, large -scale production of goods and services have become an
integral & inevitable part. There are specific rights which are stated under the Indian CPA,
however, in addition, there are certain rights enunciated under the UNO 13 like:

1. Rights towards basic needs of all consumers,

2. Healthy environment towards enhanced quality of life,
3. Consumer’s economic interest to obtain optimum benefit,

12
S ab le , Viv ek , An a ly si s of Co n su me r P ro te ct io n Act , 2019 , (2 0 2 0 ) av a il ab le at :
h ttp s: // ww w.re se ar ch g at e.n et /p u b l ica tio n /3 4 0 9 3 9 8 7 5 _ An aly s is_ o f_ Co n s u m er_ Pro tec tio n _ Ac t_ 2 0 1 9
13
Pro t ect io n Of Co n su m er s’ Rig h t s: A S o cio - Leg a l Ch a l len g e in In d ia , av a ilab le on
h ttp : //p ap er s. s srn .co m / s o l3 /p ap er s .cf m ?ab str act _ id =1 7 0 7 5 6 8 b ro ws ed o n d ated 2 4 - 1 1 - 2 0 2 1 .
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4. Right of the consumers against practices that adversely affect their economic
interests, personal well -being, health & safety, etc.
5. Pressing the need for the following of the standards for the safety & quality of all
goods & services offered publicly.
6. Appropriate distribution facilities for essential goods & services. The
Governments of any country can play a very important role by adopting &
maintaining appropriate policies for the efficient distribution system & through
establishing consumer protection societies.
7. Appropriate redressal systems.
8. The Government’s duty towards encouraging the development of general consumer
education & awareness.
9. Step towards achieving responsible businesses by sustainable development in all
ways i.e., economically, socially, and environmentally.
• Apart from the aforesaid Rights of the Consumers, at the same time, there are equal
responsibilities to be ensured and satisfied by the consumers are;
1. All the consumers have the duty towards ensuring that all his consumer rights are
exercised against exploitation.
2. Duty not to trust blindly, rather become a cautious buyer.
3. Duty to file Complaint/s seeking redressal in case of genuine grievances.
4. Duty to be quality conscious.
5. Beware of false, malicious advertisements.
6. Further, it is the equal duties of the consumer & the seller to obtain and provide
with the warranty, guarantee, etc. in respect of goods & services.
7. Be aware of the appropriate legal remedies available in case of any disparagement.
• Role of allied organizations towards achieving fair and equitable protection of the
consumers: The Act offers central council/central regulatory authority & 3 quasi -
judicial mechanisms at the district, state & national level.
• The NGOs not only in India, but worldwide can help safeguard the interest of the
consumers at large through consumer awareness programs, assisting educational
institutions, promoting the growth of the consumer networks, extending timely
support to the Government.
• Press, media including social media can play an important role in promoting the
consumer awareness. Special advertisements should be created to educate the
consumers.

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• The educational system of any country contributes immensely to the growth of any
nation. The schools, colleges, etc., can protect the interest, rights of the consumers
through increased awareness.
• Apart from the aforesaid, the ADR Mechanism in India speci fically with respect to
the consumer protection should be efficient ensuring timely redressal of consumer
grievances. The new 2019 Act has introduced the concept of mediation, ADR. Apart
from that, online ADR Mechanism should be encouraged, especially in a developing
Nation like India.
• There is the need to promote and fulfill the “ideal public -private partnership.”
• The new 2019 Act does not state anything about the banking frauds occurring on
large-scale basis, the GOI needs to specify guidelines imposing strict liability for
misleading advertisements.
• Besides the legislations at the national level, there exists cer tain principles &
standards at the international level which include the UN Guidelines, the UNCTAD
Manual, amongst others.

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CONCLUSION

It is evident that the 2019 Act has widened and broadened its reach of the consumer
protection in India, which levies responsibility and liability on the counterparts i.e., the
traders, sellers, manufacturers, etc. It can conclude that, all the persons involved in any
transaction, all must be more careful and cautious than ever before. Es pecially, in the 21 s t
century, the need is to recognise and taking up stewardship role in the protection & well -
being of the consumers, especially amidst the global ever -increasing competition scenario,
which is of utmost importance,

“Especially for a nati on aspiring to be self -reliant,

For a nation aspiring to be economically resilient,

For a nation aspiring to be a global superpower &

For a nation aspiring to be a perfect role model of good governance.”

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BIBLIOGRAPHY

1. Sable, Vivek, Analysis of Consumer Protection Act, 2019, (2020) available at:
https://www.researchgate.net/publication/340939875_Analysis_of_Consume r_Prote
ction_Act_2019
2. Dr. A. Rajendra Prasad, Historical evolution & consumer protection in India: A bird’s
eye view, Journal of Texas Consumer Law,
http://www.jtexconsumerlaw.com/V11N3/J CCL_India.pdf , last accessed on 22 -11-
2021.
3. Mr. Rajib Bhattacharya, An analysis on the various aspects of Consumer Protection
in India, International Journal of Research (IJR) Vol -1, Issue-6, July 2014,
https://www.glocaluniversity.edu.in/files/eContent/eLaw/LOB.pdf
4. Shaily Jain, Comparative analysis of Consumer Protection Act 1986 & 2019,
Lawlex.org, July 2020, https://lawlex.org/lex -pedia/comparative -analysis-of-
consumer-protection -act-1986-and-2019/25092
5. The Consumer Protection Bill, 2019, Statement of Objects and Reasons,
https://www.livelaw.in/pdf_upload/pdf_upload -362684.pdf, last visited on 22 -11-
2021 enforced by the Ministry of Consumer Affairs, Food and Public Distribution,
Notification S.O. 2351(E),
https://consumeraffairs.nic.in/sites/default/files/Act%20into%20force.pdf , last
accessed 22-11-2021.
6. Protection Of Consumers’ Rights: A Socio -Legal Challenge in India, available on
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1707568

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