Amendment in the Consumer Protection Act

There are major amendments in the Consumer Protection Act of 2019 as follow :-

 Change in the definition of the “Consumer”

The new Consumer Protection Act has changed even the definition of the
‘Consumer’ as it has widened the scope of it.
Now it includes the provision relating to e-commerce by saying that – “buys any
goods” and “hires or avails any services” includes offline or online transactions
through electronic means or by teleshopping or direct selling or multi-level
marketing. The old 1986 Act do not include e-commerce in its definition and this
point is so important to be included into the Act with the great emergence of
technology in almost every sector.
 Introduction of E-Commerce transaction
With the advancement of society and technological development this provision of e-
commerce is highly needed. The earlier Act do not state the anything about the e-
commerce. The above point makes it clear the provision inserted regarding the
introduction of e-commerce. This type of transaction is also protected under the
section 94 which relates to the prevention of unfair trade practices. The new Act has
also introduced the concept of electronic service provider.
 E-filing of Complaints
In the old Act it was specified that the consumer have to file complaint where the
office of the seller or the defendant is located but the new Act provides that the
consumer can file consumer resides or works.
The changes in the Act also specifies about filing of electronic complaints where the
consumer can seek relief by e-filing of complaint. The consumer can be heard and
the parties can be examined by the way of video conferencing which is introduced to
prevent the procedural difficulty and to reduce the inconvenience.
 Establishment of Central Consumer Protection Authority
One of the regulatory Authority is also established under this 2019 Act i.e., Central
Consumer Protection Authority under Section 10 of Chapter III. The Authority
consists of Chief Commissioners and other number of commissioners who are
authorized to exercise powers and functions prescribed under this Act. For the
purpose of conducting inquiry an investigation wing which is headed by Director
General is also included with the Act under Section 15.
This authority is responsible to regulate the matter relating to –
1. Inquiry into Violation of consumer rights
2. Unfair trade practices
3. Publication false or misleading advertisement
4. Promote and protection of consumer rights
5. Protection of consumer interest
6. Undertake and promote research in the field of consumer rights
7. Awareness on consumer rights
8. Encouragement of NGO to co-operate with consumer protection
 9. Advising Ministries and departments of central and state Government
relating to consumer welfare measures.
 Insertion of Product Liability
This is also the new concept inserted by the Consumer Protection Act, 2019 i.e., of
product liability in a separate Chapter. It includes that the compensation can be
claimed from product manager, product seller, product service provider when it is
found that the consumer has suffered from any harm in respect to the defect in the
product. But the liability cannot be claimed when the product has been altered,
misused or modified.
 Extension of Pecuniary Jurisdiction
The new Act has also witnessed extension in the pecuniary jurisdiction from that of
older one. The new pecuniary jurisdiction as under –
1. District commission – The jurisdiction to which the District Commission can
entertain the complaints extends to Rupees 1 Crore.
2. State Commission – The jurisdiction to which the State Commission entertain
the complaints extends from rupees 1 Crore to 10 Crore.
3. National commission – The jurisdiction to which the National Commission
entertain the complaint exceeds Rupees 10 Crore.
 Introduction of Mediation
An Alternative dispute mechanism has been introduced in the form of mediation
under Section 74 which aimed at resolving the consumers disputes in a speedy
manner without referring the dispute to the commission. Earlier there was no
provision relating to mediation exist in the Act.
 Penalties
Various penalties have also been raised with the introduction of new Act. The
penalty for the false and misleading advertisement upon the manufacturer is up to
Rs. 1,000,000 along with the two years fine. And if the offence is committed
subsequently then it may also extend to Rs. 5,000,000.
 Exclusion of definition of “Healthcare”
The definition of healthcare is also deleted from the list of definition under the new
Consumer Protection Act.
 Period of limitation
The period of limitation remains same as Section 69 of the Act states that the
commission shall not admit the complaint if it is filed after the period of two years
from the date on which the cause of action has been started. The limitation period of
filing appeal is extended from 30 days to 45 days.
 Rights of the consumers
The Act in Section 2(9)(1) especially defines the right of the consumer which
includes:
1. The right to be protected against the marketing of goods, products or
services which are hazardous to life and property
2. The right to be informed about the quality, quantity, potency, purity,
standard, and price of goods, products or services, as the case may be, so as
to protect the consumer against unfair trade practices
 3. The right to be assured, wherever possible, access to a variety of goods,
products or services at competitive prices
4. The right to be heard and to be assured that consumer’s interests will receive
due consideration at appropriate fora
5. The right to seek redressal against unfair trade practice or restrictive trade
practices or unscrupulous exploitation of consumers
6. The right to consumer awareness.
 Comparative study of 1986 Act and 2019 Act
The older Consumer Protection Act, 1986 was in use for so many years with a small
amendment and the replacement of this Act by the new 2019 Act was highly needed
so as to walk along with the changes and progress witnessed by the country. There
are so many provisions which have been amended in 2019 amendment and the
contains a long list of it.
The comparative analysis of 1986 Act and Consumer Protection Act, 2019 is as
follows –

PROVISIONS CONSUMER PROTECTION CONSUMER PROTECTION

ACT, 1986
Regulator There was no central
regulator.
Filing of Complaints Filing of complaint before
the consumer court
where the office of seller
or defendant is located.
Product Liability There was no specific
provision related to
product liability.
Pecuniary Jurisdiction Jurisdiction of –
 District – Upto Rs.
20 Lakhs
 State – Between
Rs. 20 Lakhs to Rs.
1 Crore
 National – Above
Rs. 1 Crore
E-Commerce Earlier there was no
provision
Mediation Earlier there was no
provision
ACT, 2019
Establishment of Central
Consumer Protection
Authority.
Filing of complaint before
the consumer court
where the complaint
either reside or work.
Consumer can seek for
compensation regarding
any harm caused to him
by any product or service.
Extension of Jurisdiction
to –
 District – Up to Rs.
1 Crore
 State – Rs. 1 Crore
to Rs. 10 Crore
 National – Above
Rs. 10 Crore
All rule relating to direct
selling also extends to e-
commerce
Introduction of
Alternative dispute
resolution mechanism
i.e., court can refer the
settlement through
mediation.
 Video Conferencing No provision Hearing of complaint or
examining parties
through video
conferencing is
introduced.

 Conclusion
The new Consumer Protection Act,2019 is proved to be consumer favourable and
significant then that of old one as it makes an attempt to ease and fasten the process
of solving consumer dispute. This Act has introduced a large number of changes
relating to the pecuniary jurisdiction, introduction of alternative dispute resolution,
e-commerce, insertion of product liability etc. The Act also lays more responsibility
upon seller and manufacturer and the consumers right to claim his right.