Consumer Protection Act 2019

The Consumer Protection Act , 2019 was introduced in the Lok Sabha as a replacement of Copra
1986 on 8 July 2019 by the Minister of Consumer Affairs, Food and Public Distribution, Ram
Vilas Paswan. It was passed by Lok Sabha on 30 July 2019and later passed in Rajya Sabha on 6
August 2019
The Act features focuses on giving customer more power by taking transparency to another
level. In September 2020 government declared a new draft known as advertising code which
gives customer protection against false advertisements.

Salient Provisions of the Consumer Protection Act

New definition of consumer:

 The new Act has widened the definition of ‘consumer’.

Definition of consumer:

 As per the Act, a person is called a consumer who avails the services and buys any good
for self-use. Worth to mention that if a person buys any good or avails any service for
resale or commercial purposes, he/she is not considered a consumer. This definition
covers all types of transactions i.e. offline and online through teleshopping, direct selling
or multi-level marketing.
E-Filing of Complaints:

 The new Act provides flexibility to the consumer to file complaints with the jurisdictional
consumer forum located at the place of residence or work of the consumer. This is unlike
the earlier condition where the consumer had to file a complaint at the place of purchase
or where the seller has its registered office address.
 The new Act also contains enabling provisions for consumers to file complaints
electronically and for hearing and/or examining parties through video-conferencing.
 Consumers will also not need to hire a lawyer to represent their cases.
Product Liability & Penal Consequences:

 The Act has introduced the concept of product liability.

 A manufacturer or product service provider or product seller will now be

responsible to compensate for injury or damage caused by defective products or
deficiency in services.

 This provision brings within its scope, the product manufacturer, product service provider
and product seller, for any claim for compensation. The term ‘product seller’ would also
include e-commerce platforms.
Penalties for Misleading Advertisement:
  The CCPA may impose a penalty on a manufacturer or an endorser, for a false or
misleading advertisement. The CCPA may also sentence them to imprisonment.
Provision for Alternate Dispute Resolution:

 The new Act provides for mediation as an Alternate Dispute Resolution mechanism. For
mediation, there will be a strict timeline fixed in the rules.
 As per the recently notified rules, a complaint will be referred by a Consumer
Commission for mediation, wherever scope for early settlement exists and parties agree
for it. The mediation will be held in the Mediation Cells to be established under the aegis
of the Consumer Commissions. There will be no appeal against settlement through
mediation.
Unfair Trade Practices:

 The new Act has armed the authorities to take action against unfair trade practices too.
 The Act introduces a broad definition of Unfair Trade Practices, which also includes the
sharing of personal information given by the consumer in confidence unless such
disclosure is made in accordance with the provisions of any other law.
The Central Consumer Protection Council:

 The Consumer Protection Act empowers the Central Government to establish a Central

Consumer Protection Council. It will act as an advisory body on consumer issues.

 As per the notified Central Consumer Protection Council Rules, the Central
Consumer Protection Council would be headed by the Union Minister of
Consumer Affairs, Food and Public Distribution with the Minister of State as
Vice Chairperson and 34 other members from different fields.

 The Council, which has a three-year tenure, will have a Minister-in-charge of

consumer affairs from two States from each region – North, South, East, West,
and NER. There is also a provision for having working groups from amongst the
members for specific tasks.
Applicability:

 This Act is applicable to all the products and services, until or unless any product or
service is especially debarred out of the scope of this Act by the Central Government.

Comparative Analysis: Consumer protection act, 1986 (Old act) v. Consumer protection
act, 2019 (New act)
KEY POINTS OLD ACT NEW ACT

PECUNIARY District forum (upto 20 lacs) State District forum (upto 1 crore)State commi
 commission (from 20 lacs to 1
crore)National commission (from 1 crore to 10 crore)National commission (fr
JURISDICTION crore and above) and above)

MRP/PURCHASE Earlier MRP was a criteria to decide

PRICE pecuniary jurisdiction Now discounted price/ actual purchase pr

TERRITORIAL
JURISDICTION Where seller has office Where complainant resides or works

REGULATOR  No such provision Central Consumer protection authority to

Court can refer for settlement through me

MEDIATION  No such provision (Section 80)

Earlier 30 days period for appeal

against the order of District forum
(Section 15)Earlier 50% or 25,000 Now it is 45 days (Section 41)Now 50% o
APPEAL whichever is less is to be deposited amount

Now all provision applicable to direct sel

E-COMMERCE Earlier no specific mention extended to e-commerce

Earlier DCF did not have the power to

REVIEW review Now DCF has power to review

Section 49(2) and 59(2) of the new act giv

the State Commission and NCDRC respe
UNFAIR TERMS AND declare any terms of contract, which is un
CONDITIONS No such provision consumer, to be null and void

District consumer forumState consumer

forumNational Consumer Dispute District commissionState commissionNat
AUTHORITY Redressal Commission Consumer Dispute Redressal Commission

COMPOSITION OF
STATE COMMISSION President and 2 other members President and 4 other members

RIGHTS OF A CONSUMER:
The following are some important rights of the consumer are-
1. Right to safety:

This right refers to the right to be protected against the marketing of goods and services which
are hazardous to the life and property of the consumers. This right has an exceptionally wide
extent of utilization, for example, this right is accessible in the space of electrical machines,
medical care, vehicle, drugs, lodging, travel and so forth.

These days, every single field has an office for scientists who exploration and trial and dispatch
new items and apparatuses as needs are. The greater part of these items is not tried by the makers
which end up being unsafe to the buyer.

Therefore, after the implementation of this act, there is a mandate for every field to get all their
products that are a danger to life to be carefully tested and verified before releasing
those products into the market.

2. Right to Information:

It alludes to one side of a purchaser to be educated regarding the quality, amount, strength,
immaculateness, standard and cost of the labour and products being sold by the retailer.

This right is given to the shopper to shield them from the different uncalled for exchange
rehearses led by the dealer to procure more benefits. Therefore, it is an obligation on the seller to
provide the consumer with all the relevant information about the product he wishes to purchase.

3. Right to Choose:

It is defined in the act as the right to be assured, wherever possible, to have access to a variety of
goods and services at competitive prices. It is extremely not unexpected to discover one item
being sold at various potential costs by various merchants.
This mirrors the time of market contest which is found in practically every one of the nations.
Along these lines, it is the right of the multitude of shoppers to buy any item at any value which
as indicated by him is awesome. There cannot be a situation where a customer is coerced into
purchasing a particular product.

4. Right to be heard:

It is referred to as the right to be heard and to be assured that consumers’ interests will receive
due consideration at appropriate forums.
This right was presented for a buyer to guarantee that every one of the grumblings and issues of
the buyers is heard properly under suitable power.

This is because of this right that almost all the big selling companies have a separate department
known as customer service to help the consumers when there is a grievance of the consumer or
any complaints regarding the product or service.

5. Right to seek Redressal:

If any consumer has been exploited by the seller or faced any unfair trade practices he can seek
redressal i.e. pay, or harms under this right. This right guarantees that every one of the issues of
the customers is managed and equity is done to him.

An appropriate redressal system has been set up by the public authority of India such as the
consumer courts and forums at the district and national level which is discussed later in this
article.

6. Right to Consumer Education:

It is the right of every person who is a resident of India to know about every one of the laws and
arrangements identifying with the buyer.
In this manner, it is ensured the material concerning the shopper related laws are effectively
accessible all over India yet there is as yet a significant piece of the populace who doesn't know
about his laws and rights.
This is the explanation numerous mindfulness programs have been coordinated by the public
authority of India, for example, 'Jago grahak Jago' and the camps coordinated by different legal
advisors in the far off spaces of the country.

DUTIES OF A CONSUMER:

1. On purchasing goods or hiring of any services, the consumer must pay for the same.
2. While purchasing something he has to check weights, balances, prices etc. and also pay heed
carefully to the information on the labels.
3. The consumer must update himself about the various consumer protection schemes.
4. Duty to be cautious while buying and not to fall in the snare of deluding data and
commercials.
5. The buyer must know about his privileges and obligations and spreading the attention to the
equivalent among others.
6. The consumers must file a complaint if the goods which they purchased are defective.
7. The consumer must not purchase anything from the black markets.
8. Every consumer should secure the bills of the goods purchased or the services availed so that
if in the future he finds the goods or services to be defective, a complaint can be filed for such a
grievance and prove the same.

DEFINITIONS
Consumer dispute” refers to a dispute where a consumer make a complaint against a person and
the person denies the allegations contained in the complaint.

Unfair trade practices include false representation of a good or service, targeting vulnerable
populations, false advertising, tied selling, false free prize or gift offers, false or deceptive
pricing, and non-compliance with manufacturing standards. Alternative names for unfair trade
practices are “deceptive trade practices” or “unfair business practices.”

A restrictive trade practice is generally one which has the effect of preventing, distorting or
restricting competition
Consumer protection Councils –

Consumer Disputes Redressal Commission: 

 The Act has the provision of the establishment of Consumer Disputes Redressal
Commissions (CDRCs) at the national, state and district levels to entertain consumer
complaints.
 As per the notified rules, the State Commissions will furnish information to the Central
Government on a quarterly basis on vacancies, disposal, the pendency of cases and other
matters.
 The CDRCs will entertain complaints related to:

 Overcharging or deceptive charging

 Unfair or restrictive trade practices

 Sale of hazardous goods and services which may be hazardous to life.

 Sale of defective goods or services

 As per the Consumer Disputes Redressal Commission Rules, there will be no fee for
filing cases up to Rs. 5 lakh.

The National Consumer Disputes Redressal Commission (NCDRC), India, is a semi-legal

commission in India that was set up in 1988 under the Consumer Protection Act of 1986. Its
administrative centre is in New Delhi. The commission is headed by a sitting or retired judge of
the Supreme Court of India. 

Redressal Agencies or Three-Tier Grievances Machinery under the Consumer Protection

Act
The three redressal agencies under the Consumer Protection Act, 2019 are District
Commission, State Commission, and National Commission. 

1. District Commission

A district commission includes a president (who can be a working or retired judge of the
District Court) and two other members. They are appointed by the state government. One can
file a complaint for goods and services of ₹1 crore or less in this agency. For the complaints
filed, if the district commission feels a requirement, it sends the goods to the laboratory for
testing and gives its decision based on the laboratory report and facts. 
If the aggrieved party is not happy with the jurisdiction of the district commission, then they
can appeal against the judgment of this agency in the State Commission within 45 days.  

2. State Commission

A state commission includes a president (who must be a working or retired judge of the High
Court) and at least two other members. They are appointed by the state government. One can
file a complaint of goods and services worth less than ₹10 crores and more than ₹1 crore in
this agency. After receiving a complaint from the aggrieved party, the state commission
contacts the party against whom the complaint has been filed. Also, for the complaints filed, if
the state commission feels a requirement, it sends the goods to the laboratory for testing.  
If the aggrieved party is not happy with the jurisdiction of the state commission, then they can
appeal against the judgment of this agency in the National Commission within 30 days by
depositing 50% of the fine money. 

3. National Commission

A national commission includes a president and four other members one of whom shall be a
woman, and Central Government appoints them. One can file a complaint of goods and
services worth more than ₹10 crores in this agency. After receiving a complaint from the
aggrieved party, the national commission informs the party against whom the complaint has
been filed. Also, for the complaints filed, if the state commission feels a requirement, it sends
the goods to the laboratory for testing, and then gives judgement based on the reports.  
If the aggrieved party is not happy with the jurisdiction of the national commission, then they
can appeal against the judgment of this agency in the Supreme Court within 30 days by
depositing 50% of the fine money. 

Central Consumer Protection Authority ( CCPA): Establishment and functions

 It was established to promote, protect and enforce the rights of consumers.

 It was constituted under section 10 of the Consumer Protection Act, 2019 that
replaced Consumer Protection Act, 1986.
 The new act has been incorporated with additional consumer concerns like treating
misleading advertisements and providing wrong information regarding quality or
quantity of goods or provision of services as an offence.
 It deals with matters affecting rights of consumers by individuals or entities following
improper trade practices or by display of inappropriate or wrong advertisements affecting
public interest.
 It helps to promote consumer trust by enforcing the rights of consumers through effective
guidelines. 
Composition-
It consists of the following members appointed by the Central Government.
 Chief Commissioner.
 Two Commissioners. 
 One commissioner each will represent goods and services.
Powers of CCPA-
 If the commission finds violations of rights of consumers or in notice of trade practices
which is unfair it can inquire or cause an inquiry, either on receipt of complaint or suo
moto or as directed by Central Government.
 If the commission finds after preliminary inquiry of an existence of a prima facie case
of consumer rights violation or it is in notice of any unfair trade practice or any wrong or
inaccurate advertisement which is prejudicial to public interest or to the interests of the
consumers,it can order an investigation by the District Collector or by Director
General.
 If the commission finds prima facie evidence of a person involved in violation of
consumer rights or following any unfair trade practice or making any false or inaccurate
advertisement as described above.
 It can call upon the person involved and can direct him to produce any document or
record in his possession relating to it. 
 In addition, the District Collector or Director General under the Code of Criminal
Procedure,1973 has powers of search and seizure , and authority to ask for
submission of any record or document.
 The commission can direct recalling of any dangerous, hazardous or unsafe goods
or withdrawal of similar services and order refunding of the proceeds collected towards
sale of goods or offering of services so recalled or order stoppage of any unfair practices
after giving the person directed to do so, an opportunity of being heard.
 The commission can involve in and engage in services relating to consumer
advocacy by offering services of registering complaints before the National
Commission, the State Commission,or the District Commission, formed as per the Act,
involving in the proceedings before them, suggesting remedial actions, involving itself in
related research, creating awareness and guiding consumers on safety precautions.
 The commission can direct to a trader or manufacturer or endorser or advertiser or
publisher after investigation to discontinue advertisements which are wrong or
misleading or prejudicial to consumers, and in such case impose penalties upto Rs 10
lakhs payable in cash.
 The commission can also prevent the endorser of advertisement which is wrong or
misleading from making the same in relation to any product or service for a time period
ranging upto one year, and three years in case of subsequent contravention.