The Consumer Protection Act, 2019.

The Consumer Protection Bill, 2019 was passed by the Indian Parliament on Aug 06,
2019, and later on signed by the President of India. This new act will replace the old
Consumer Protection Act, 1986.
The basic aim of the Consumer Protection Act, 2019 to save the rights of the consumers
by establishing authorities for timely and effective administration and settlement of
consumers’ disputes.
What is 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 and avail any service for
resale or commercial purpose, is not considered a consumer. This definition covers all
types of transactions i.e. online and offline.

Key features of the Consumer Protection Act, 2019

1. Consumer Rights
The Act enforces consumer rights and provides a mechanism for redressal of complaints
regarding the defect in goods and deficiency in services.
The act provides 6 rights to the consumers;
1. Right to Safety to be protected from hazardous goods and
services.
2. Right to Information to have information about the quantity,
quality, purity, potency, price, and
standard of goods or services
3. Right to Choose to have a variety of goods or services at
competitive prices
4. Right to Seek Redressal against unfair trade practice or restrictive
trade practices
5. Right to Education right to consumer awareness
6. Right to be Heard right to be heard and to be assured that
consumer's interests

2. Central Consumer Protection Authority (CCPA):- (Regulator)

 The Act sets up a Central Consumer Protection Authority to promote, protect
and enforce consumer rights as a class. It can issue safety notices for goods and
services, order refunds, recall goods and rule against misleading advertisements.
 It will be headed by a Chief Commissioner and comprise other Commissioners.
 It will have an investigation arm headed by a Director General.
 It may also file complaints before the Consumer Disputes Redressal Commissions.
 Prohibition and penalty for a misleading advertisement:
 The Central Consumer Protection Authority (CCPA) will have the power to impose 1/3
 fines on the endorser or manufacturer up to 2-year imprisonment for misleading or
false advertisement (Like Laxmi Dhan Warsha Yantra).
 Worth to mention that repeated offense, may attract a fine of Rs 50 lakh and
imprisonment of up to 5 years.

3. Consumer Protection Councils (CPCs)

 Establishment of the Consumer Protection Councils at the district, state, and
national levels to render advice on consumer protection.
 The Central and State Council will be headed by the Minister-in-charge of
Consumer Affairs at the central and state level, respectively. The District Council
will be headed by the District Collector.

4. Consumer Disputes Redressal Commission (CDRCs):

 The act has the provision of the establishment of the Consumer Disputes Redressal
Commissions (CDRCs) at the national, state and district levels.
 The CDRCs will entertain complaints related to;
i. Overcharging or deceptive charging
ii. Unfair or restrictive trade practices
iii. Sale of hazardous goods and services which may be hazardous to life.
iv. Sale of defective goods or services
Jurisdiction of CDRCs under the Consumer Protection Act, 2019
The act has defined the criteria of Consumer Disputes Redressal Commission (CDRCs).

CDRC VALUE OF GOODS/ SERVICE

National CDRC will hear complaints where More than 10 crores
State CDRC will hear complaints where 1-10 crores
District CDRC will hear complaints where Up to 1 crore

 Appeals from the District and State Commissions will be heard at the next level and
from the National Commission by the Supreme Court.

5. The Act also lists punitive actions against those who are found manufacturing, storing,
distributing, selling, or importing products that are spurious or contain adulterants.

6. If a consumer suffers an injury from a defect in a good or a deficiency in service, he

may file a claim of product liability against the manufacturer, the seller, or the service
provider.

7. The Act defines contracts as ‘unfair’ if they significantly affect the rights of consumers.
It also defines unfair and restrictive trade practices.

8. The case can be filed from anywhere, unlike the existing law which allows the
consumer to register the complaint only from the same place of purchase of the product
or where the service is availed.

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 Difference between CPA 1986 and CPA 2019

Provision CPA 1986 CPA 2019

Ambit of Law All goods and services for All goods and services, including telecom
Consideration. and housing construction, and all modes of
Free and personal services are transactions (online, teleshopping, etc.).
excluded. Free and personal services are excluded.

Adds three types of practices to the list:

Unfair Trade Includes six types of such practices,
(i) failure to issue a bill or receipt;
Practices like false representation, misleading
advertisements (ii) refusal to accept a good
returned within 30 days; and
disclosure of personal
(iii)
information given in confidence
Claim for product liability can be
Product No provision. made against the manufacturer,
liability service provider, and seller.
Establishes the Central Consumer
Regulator No provision Protection Authority ( CCPA)

Pecuniary District: Up to Rs 20 lakh. State: District: Up to Rs 1 crore.

jurisdiction of Between Rs 20 lakh and up to Rs 1cr State: Between Rs 1crore - 10 crore.
Commission National: Above Rs 1 crore. National: Above Rs 10 crore.

Selection Committee (comprising a No provision for Selection

Appointment Judicial member and other officials)
will recommend members on the
Commissions.
Imprisonment between one month
Penalties and three years or fine between Rs
2,000 to Rs 10,000, or both.
Committee. The central
government will appoint through
notification.
Imprisonment up to three years, or a
fine not less than Rs 25,000 extendable
to Rs one lakh, or both.

Defines direct selling, e-commerce and

electronic service provider.
E-commerce No provision
The central government may prescribe
rules for preventing unfair trade
practices in e- commerce and direct
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