Comparison on Consumer Protection Act 1986

with the New Consumer Protection Act 2019

notified on 20.07.2020 for implementation.
By N.Naresh Kumar, HRO, NICL.

In exercise of the powers conferred by sub-section (3) of section 1

of the Consumer Protection Act, 2019 (35 of 2019), the Central
Government hereby appoints the 20th day of July, 2020 as the
date on which the following provisions of the said Act shall come
into force.
Objective of new Act: to provide for protection of the interests of consumers
and for the said purpose, to establish authorities for timely and effective
administration and settlement of consumers' disputes and for matters connected
therewith or incidental thereto.

Chapter Sections
I Section 2
Except Clauses (4), 13, 14, 16, 40

II Section 3 to 9

IV Section 28 to 73
Except sub-clause (iv) of clause (a) of Sub-section (1) of section 58.

V Section 74 to 81 (Both Inclusive)

VI Section 82 to 87 (Both Inclusive)

VII Section 90 and 91

Except sections 88, 89, 92 @93

VIII Section 95, 98,100

Section 101
Except Clauses (f) to (m) and Clauses (zg) (zh) and (zi) of Sub-section 2
Section 102, 103, 105, 106, 107
(Except sections 94, 96, 97, 99, 104)
Comparison of the old and new C.P Acts:
ACT CPA 1986
Objective of ACT to provide for better protection of
the interests of consumers and for
that purpose to make provision
for the establishment of consumer
councils and other authorities for
the settlement of consumers'
disputes and for matters
connected therewith
CPA 2019- 20.07.2020 Notified
to provide for protection of the
interests of consumers and for
the said purpose, to establish
authorities for timely and
effective administration and
settlement of consumers'
disputes and for matters
connected therewith or
incidental thereto.

Chapters 4 8 (Notified only 7 Chapter)

Nomenclature District forum District Commission
Regulator No Separate Regulator Central Consumer Protection
Authority under Chapter III is
not notified in July 2020

So exempted in the present

notification.
New Definitions Not defined Online, telemarketing, MLM,
unfair contract, design,
endorsement of goods,
electronic service provider,
Food included in goods,
product liability, mediation,
pecuniary jurisdiction, offence
and penalties
Advertisement Not defined "advertisement" means any audio
or visual publicity, representation,
endorsement or pronouncement
made by means of light, sound,
smoke, gas, print, electronic media,
internet or website and includes
any notice, circular, label, wrapper,
invoice or such other documents;
Consumer Only one explanation given A new Clause ‘b’ is inserted to
Definition under Section 2(d). the explanation of Consumer
defined under Section 2(7). The
expressions "buys any goods"

Excludes a person who avails
of such services for any
Commercial purposes.
No clarity with explanation on
‘commercial purpose’ in the
definition
and "hires or avails any
services" including offline or
online transactions through
electronic means or by
teleshopping or direct selling or
multi-level marketing are
included.
(a) the expression "commercial
purpose" does not include use
by a person of goods bought
and used by him exclusively for
the purpose of earning his
livelihood, by means of self-
employment;

Person Consumer is a ‘person’: Person definition extended

includes 2 (m) under Section 31 (1)
(i) an individual; (vi) any corporation, company or a
(ii) a firm whether body of individuals whether
registered or not; incorporated or not;
(iii) a Hindu undivided (vii) any artificial juridical person,
family; not falling within any of the
(iv) a co-operative society; preceding sub-clauses.
(v) an association of
persons whether
registered under the Due to the extension the earlier
Societies Registration plea of commercial purpose and
Act, 1860 or not commercial entity will not come
under the purview of consumer is
marginalised and it still need better
clarification because it became
ambiguous by adding them and
not still continuing the exclusion of
commercial purpose.
Complainant Consumer, Registered Definition extended
voluntary consumer
association, Central (vii) in case of a consumer being a
Government, consumers same minor, his parent or legal guardian.
interest, Consumer, his legal
heir or representative in case
of his death
Deficiency Defined
Deficiency extended:

and includes— (i) any act of

negligence or omission or
commission by such person
which causes loss or injury to
the consumer; and (ii)
deliberate withholding of
relevant information by such
person to the consumer.

Design Not defined Section 2 (10) –"design", in

relation to a product, means the
intended or known physical and
material characteristics of such
product and includes any
intended or known formulation
or content of such product and
the usual result of the intended
manufacturing or other process
used to produce such product;
Insurance Under definition ‘Service’ Under definition ‘Service’
Section 2 (o). Section 2 (42).
Unfair Contract No definition (46) "unfair contract" means a
contract between a
manufacturer or trader or
service provider on one hand,
and a consumer on the other,
having such terms which cause
significant change in the rights
of such consumer, including the
following, namely:—
(ii) imposing any penalty on
the consumer, for the breach of
contract thereof which is
wholly disproportionate to the
loss occurred due to such
breach to the other party to the
contract; or
(iv) entitling a party to the
contract to terminate such
 contract unilaterally, without
reasonable cause; or
(v) permitting or has the effect
of permitting one party to
assign the contract to the
detriment of the other party
who is a consumer, without his
consent; or
(vi) imposing on the consumer
any unreasonable charge,
obligation or condition which
puts such consumer to
disadvantage;

Product Liability No provision. Consumer could Section 82 to 87 (Both Inclusive)

approach a civil court but not
consumer court Consumer can seek
compensation for harm caused
by a product or service.
Product Liability No definition Under Section 2(34) added and
Definition fixed responsibility the product
manufacturer or product seller,
of any product or service, in
case of harm to consumer.
Consumer Rights Objects of the Central Council Section 2(9) has added and
protect rights such as. (List). defined such rights as ‘rights of
consumer’
Protection, Informed, Assured,
Be heard, Redressal and
Consumer Awareness.
Right of Consumer Education is the Consumer Awareness
Consumer term
Awareness
Limitation 2 Years 2 years with a provision for
period for filing condonation of delay power
compliant U/s 69 of the Act.

Filing • Complaint could be filed Complaint can be filed where

Jurisdiction where the Seller’s (Defendant) Complainant resides or work.
office is located.
Electronic Filing Not available Available
• District: Upto Rs. 20 Lakhs • District: Upto Rs. 1 Cr.
Pecuniary • State: Rs.20 Lakhs to Rs.1 Cr.
Jurisdiction • National: Above Rs. 1 Cr.
Pecuniary Where the value of the goods
Jurisdiction or services and the
compensation, if any, claimed
1[does not exceed rupees
twenty lakhs].
Written 30 + 15 days
Statement within a period of thirty days or
such extended period not
exceeding fifteen days
within a period of thirty days or
such extended period not
exceeding fifteen days
Appeal Deposit Fifty per cent. of that amount
or twenty-five thousand
rupees, whichever is less.
(Maximum of Rs. 25,000/-)
Appeal Deposit 50% of the amount or rupees
in SCDRC thirty-five thousand,
whichever is less.
Appeal Deposit 50% of the amount or rupees
in NCDRC Fifty thousand, whichever is
less.
• State: Rs. 1 Cr. To Rs. 10 Cr.
• National: Above Rs. 10 Cr.
The District Commission shall
have jurisdiction to entertain
complaints where the value of
the goods or services paid as
consideration does not exceed
one crore rupees:
Need a detailed interpretation
on whether it was used
intentionally or not.
30 + 15 days
Same
Apex court In New India
Insurance Vs Hilli Multipurpose
Cold Storage Private Limited
held that District Forum is not
having power to extend the
limitation period further to 45
days and 30 days commences
from the date of receipt of notice
accompanied by the complaint
and not just notice.
Needs to deposit 50% of the
amount ordered by District
Commission before filing
appeal before State
Commission.
Appeal to NCDRC from
SCDRC which is 30 days
remained same, subject to
deposit of 50% of the award if
specified by SCDRC
Appeal to Supreme Court from
NCDRC which is 30 days
remained same, subject to
deposit of 50% of the award if
specified by NCDRC. (Clause
 67).

Limitations 30 days for filing of appeal to 45 days for filing of appeal to

State Commission. State Commission. (Clause 41)
Mediation No such Legal Provision Court can refer settlement
through mediation.
New Chapter of V is added
Partial No such legal provision Parties can agree for the
Settlement settlement before mediator and
through that can be forwarded and a
mediation suitable order shall be passed
in 7 days. There is scope for
partial settled only in part on
some specific issues and
remaining issues can be
decided by the Commission.

No appeal on No such provision Barring appeal from an order

settlement order passed under clause 80 on the
basis of settlement reached
between the parties.

Clause 80 -(This clause provides

Procedure on Where the complainant fails to
admission of appear on the date of hearing
complaint & before the District Forum, the
Ex parte Orders District Forum may either
dismiss the complaint for
default or decide it on merits.
Review No power of Review (Except
NCDRC)
for provisions relating to
settlement through mediation
and the role of mediator when
an agreement is reached
between the parties with respect
to all of the issues involved in
the consumer dispute or with
respect to only some of the
issues, and in the event where
no agreement is reached
between the parties).
Section 38 (3) (c) : Decide the
complaint on merits if the
complainant fails to appear on
the date of hearing.
Power of review has been
conferred to District
Commission, State Commission

Review by The National Commission shall
NCDRC have the power to review any
order made by it, when there is
an error apparent on the face of
record.
and NCDRC U/s 40, 50 and 60
of the Act respectively and
application to be made in 30
days.
Clarity given that either of its
own motion or on an
application made by any of the
parties within thirty days of
such order.

Appeal 30 days Every appeal under this section

Limitation shall be preferred within a
Period period of thirty days from the
date of order of a District
Commission or a State
Commission or the National
Commission.
NCDRC can hear No such provision
appeals of Sub-clause (iv) of clause (a) of
central authority Sub-section (1) of section 58—
Not notified in July 2020 and
Even Central authority under
Chapter III is not notified.

Second appeal to No second appeal only Provided U/s 51(3) if there is a

NCDRC Revision was available in
NCDRC
Non-Compliance Shall be punishable with
of order of imprisonment for a term which
Commission shall not be less than one
month but which may extend
to three years, or with fine
which shall not be less than
two thousands rupees but
which may extend to ten
thousand rupees, or with both
Enforcement of Section 25:
orders of Property attachment for non-
District compliance and it should be it
Commission, be sold after 3 months if non-
State compliance continues. A
substantial question of law
involved in the matter
Under Section 72 of the Act, the
term for imprisonment for non-
compliance of order given by
District, State and National
Commission is same as previous
act but the fine has been
increased, which shall not be
less than twenty-five thousand
rupees and may extend to one
lakh rupees, or with both.
No such detailed description on
enforcement.
Section 71: Every order made by
a District Commission, State
Commission certificate can be issued by DC, Commission or the National
and National SCDRC or NCDRC to District Commission shall be enforced
Commission collector to collect the amount by it in the same manner as if it
from arrears of land revenue. were a decree made by a Court
in a suit before it and the
provisions of Order XXI of the
First Schedule to the Code of
Civil Procedure, 1908.
Penalties Section 90 Punishment for
manufacturing products
containing adulterant

Section 91 Punishment for

manufacturing for sale or for
storing or selling or distributing
or importing spurious goods.

Does not result in any injury to

the consumer, with
imprisonment for a term which
may extend to six months and
with fine which may extend to
one lakh rupees.

Causes injury not amounting to

grievous hurt to the consumer,
with imprisonment for a term
which may extend to one year
and with fine which may extend
to three lakh rupees.

Causes injury resulting in

grievous hurt to the consumer,
with imprisonment for a term
which may extend to seven
years and with fine which may
extend to five lakh rupees
Power of District No powers Central Consumer Protection
Collector Authority under Chapter III is
not notified in July 2020
Consumer No such provisions Incorporated under Chapter III
protection is not notified in July 2020
agencies
Contract Terms No such powers to change Section 49(2) and 59(2) of the
new act gives power to the State
Commission and NCDRC
respectively to declare any
terms of contract, which is
unfair to any consumer, to be
null and void.
Bench Circuit Bench Replaced with the term
Regional Benches
Provided that the Central
Government may, by
notification, establish regional
Benches of the National
Commission, at such places, as
it deems fit.

Composition of District Forum—1 President + 2 District Commission—1

Commission. members and one among them President + 2 members
shall be women.
(‘Shall be women’ is omitted in
new act)

State Commission -- 1 President

+ 4 members

National Commission -- 1
President + 4 members
Experts to assist No such provision Section 66: Where the National
National Commission or the State
Commission or Commission, as the case may
State be, on an application by a
Commission. complainant or otherwise, is of
the opinion that it involves the
larger interest of consumers, it
may direct any individual or
organisation or expert to assist
the National Commission or the
State Commission, as the case
may be
Dismissal Of Such complaints will be No such provision
Frivolous OR dismissed and
Vexatious complainant shall pay cost not
Complaints exceeding
 Rs.10,000/- as may be specified
in the order
Councils To advice to Govt on the
functioning of the ACT
To advice to Govt on the
functioning of the ACT
(Chapter 2)

No changes in the new act

Product Seller Not included and only traders Included in the definition of
was included
And due to this shopkeepers
comes under the purview of the
CPAct
Video NO such Provision Consumers can seek hearing
conferencing through video conferencing

Still there are some differences between the old act and new Consumer Protection Act,
2019 and will be improvised based on the interpretation of the court judgements also.