Consumer Protection Act 2019 - A Comprehensive Analysis

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Consumer Protection Act 2019 – A...
Consumer Protection Act 2019 – A Comprehensive

Analysis
Kalyan Jhabakh,Sanjay Mehta & Darshika
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14 Sept 2020 5:47 PM
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The Consumer Protection Act, 2019 ("New Act") heralds the beginning of a new era
of consumer rights in India that are in sync with new-age consumer expectations.
It carries forward the rich legacy of The Consumer Protection Act, 1986 ("1986
Act") that was considered path-breaking at the time of its enactment, but which
was unable to meet the challenges of a rapidly growing, sophisticated and inter-
dependent market for goods and services.
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The 1986 Act was amended from time-to-time to bring it in accordance with
changes brought about by economic liberalisation, globalisation of markets and
digitalisation of products and services. However, it's practical implementation was
far from fulfilling its desired objective of being a socio-economic legislation which
sought to provide for better protection of the interests of consumers. While using
the same phrase in its preamble, the New Act, has substantially enhanced the
scope of protection afforded to consumers, by bringing within its purview
advertising claims, endorsements, and product liability, all of which play a
fundamental role in altering the consumer behaviour and retail trends in the 21st
century.
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The New Act was passed by the government on 9th August 2020 and barring a few
sections the New Act was notified on 20th July 2020. The New Act replaces the
three-decade-old 1986 Act. The New Act proposes a slew of measures and
tightens the existing rules present in the 1986 Act to further enhance consumer
welfare. The New Act provides enhanced protection to the consumers taking into
consideration the booming e-commerce industry and the modern methods of
providing goods and services such as online sales, teleshopping, direct selling and
multi-level marketing in addition to the traditional methods.
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INSIGHTS INTO THE CONSUMER PROTECTION ACT,

2019
Over the years, new consumer protection laws were needed owing to the drastic
change in the manner market functions. There is rise in international trade, global
supply chains and rapid development of e-commerce. Further, India has also
witnessed the backlog of pending cases in the consumer courts. The new market
set-up has witnessed mis-leading advertisements, and a special check was
needed on direct selling and multi-level marketing. The New Act is aims to benefit
society at large.
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The New Act has brought in some major changes and provides for more
protection to the consumers in parimateria to the earlier 1986 Act which can be
seen from the comprehensive definitions provided under Section 2 of the New Act
and other new sections added therein.
KEY HIGHLIGHTS OF THE CONSUMER PROTECTION ACT, 2019
In this part of the article, the major changes made in the Consumer Protection Act,
2019 is put forth and explained in detailed.
EXPANDING THE DEFINITION OF CONSUMER[1] AND DEFINING E-COMMERCE[2]:
Under the New Act, a consumer is defined as a person who "buys any goods" and
hires or avails of any service" for consideration but does not include a person who
obtains goods for resale or goods or service for commercial purpose. The New Act
seeks to widen the scope of this definition. Thus, a Consumer will now mean any
person who "buys any goods" and "hires any service" which shall include both
online and offline transactions through electronic means, teleshopping, direct
selling, or multi-level marketing. In the 1986 Act, the definition of a consumer was
only limited to buying goods or services and did not specifically include e-
commerce transactions. However, this lacuna has been addressed by the New Act.
E-commerce has been specifically mentioned and is defined as buying and selling
of goods/services/digital products, online. Further, the Central government is
empowered to take appropriate measures (framing of rules, regulations,
guidelines, etc.,) to prevent unfair trade practices[3] in e-commerce and direct
selling[4].
NEW ADDITIONS TO CERTAIN DEFINITIONS
The New Act includes the definition of "food" as defined under the Food and
Standards Act, 2006[5]. This has replaced the definition of "goods" under the 1986
Act. This would help in bringing the number of food delivery platforms to come
under the ambit of consumer protection.
In order to bring the telecom services under the New Act, "telecom" has been
added to the definition of "services" [6]. However, it would have been much better if
such inclusion was added as "telecommunication service" as defined by the
Telecom Regulatory Authority of India Act (TRA), rather than "telecom". Hence,
there is still lacunae as to what exactly "telecom" would mean and include.
PRODUCT MANUFACTURER, PRODUCT SELLER & PRODUCT SERVICE PROVIDER
"Product Manufacturer"[7] means a person who— (i) makes any product or parts
thereof; or (ii) assembles parts thereof made by others; or (iii) puts or causes to be
put his own mark on any products made by any other person; or (iv) makes a
product and sells, distributes, leases installs, prepares, packages, labels, markets,
repairs, maintains such product or is otherwise involved in placing such product
for commercial purpose; or (v) designs, produces, fabricates, constructs or re-
manufactures any product before its sale; or (vi) being a product seller of a
product, is also a manufacturer of such product.
"Product Seller"[8], in relation to a product, means a person who, in the course of

business, imports, sells, distributes, leases, installs, prepares, packages, labels,
markets, repairs, maintains, or otherwise is involved in placing such product for
commercial purpose and includes— (i) a manufacturer who is also a product seller;
or (ii) a service provider, but does not include— (a) a seller of immovable property,
unless such person is engaged in the sale of constructed house or in the
construction of homes or flats; (b) a provider of professional services in any
transaction in which, the sale or use of a product is only incidental thereto, but
furnishing of opinion, skill or services being the essence of such transaction; (c) a
person who— (I) acts only in a financial capacity with respect to the sale of the
product; (II) is not a manufacturer, wholesaler, distributor, retailer, direct seller or an
electronic service provider; (III) leases a product, without having a reasonable
opportunity to inspect and discover defects in the product, under a lease
arrangement in which the selection, possession, maintenance, and operation of
the product are controlled by a person other than the lessor.
"Product Service Provider"[9], in relation to a product, means a person who

provides any service in respect of such product.
CONSUMER RIGHTS[10]
Under the 1986 Act, the rights of the consumers were only found as a passing
reference under the objects of the Consumer Protection Councils. However, the
New Act has defined six specific consumer's rights including the right to:
Be protected against marketing of goods and service which are hazardous to

life and property;
Be informed of the quality, quantity, potency, purity, standard and price of

goods or services;
Be assured of access to a variety of goods or services at competitive prices;
Be heard and assured that the consumer's interest will receive due
consideration at appropriate fora;
Seek redressal against unfair or restrictive trade practices;
Consumer awareness.
ADVERTISEMENT AND MISLEADING ADVERTISEMENT:
Under the New Act "advertisement[11]" shall mean any audio or visual publicity,
representation, endorsement or the 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.
The New Act introduces, for the first time, a definition of misleading
advertisement. Under the New Act "misleading advertisement[12]" in relation to any
product or service, means an advertisement, which— (i) falsely describes such
product or service; or (ii) gives a false guarantee to, or is likely to mislead the
consumers as to nature, substance, quantity or quality of such product or service;
or (iii) conveys an express or implied representation which, if made by the
manufacturer or seller or service provider thereof would constitute an unfair trade
practice; or (iv) deliberately conceals important information".
PROACTIVE STEPS TO CURB MISLEADING ADVERTISEMENTS:
Considering the ever-increasing presence of media and its influence, the New Act
intends to cover all kinds of audio or visual publicity and representations made in
electronic media, internet and websites under its ambit. It is a prevalent market
practice to engage eminent personalities or celebrities for the endorsement of
products. Such personalities/endorsers are deployed to make advertisements
which are often misleading by making unrealistic claims. In such cases, it
becomes important for the endorser to take the onus and exercise due diligence to
verify the veracity of the claims made in the advertisement to refute liability
claims.
Under the New Act, the Central Consumer Protection Authority ("Central
Authority"), has the power to issue directions and penalties against false and
misleading advertisements[13]. The Central Authority is satisfied after the
investigation that any advertisement is false or misleading and is prejudicial to the
interest of any consumer or is in contravention of consumer rights, it may, by order,
issue directions to the concerned trader or manufacturer or endorser or advertiser

or publisher, as the case may be, to discontinue such advertisement or to modify
the same in such manner and within such time as may be specified in that order.
If a misleading advertisement is found to be prejudicial to the interest of

consumers, then the Central Authority may impose a penalty of up to Rs. 10,00,000
(Rupees Ten Lakhs) on a manufacturer. In case of a subsequent offence, the fine
may extend to Rs. 50,00,000/- (Rupees Fifty Lakhs only)[14].
Separately, the New Act has also made misleading advertisements a criminal
offence to publish false or misleading advertisements for manufacturers and
services providers. If found guilty, they could be sentenced to imprisonment for up
to 2 (two) years. In the case of a subsequent offence, the term of imprisonment
may extend to five years[15].
If a misleading advertisement is found to be prejudicial to the interest of

consumers, then the Central Authority may impose a penalty of up to Rs.
10,00,000/- (Rupees Ten Lakhs only) on the endorser. The Central Authority can
also prohibit the endorser of a misleading advertisement from endorsing that
particular product or service for a period of up to 1 (one) year. For every
subsequent offence, the fine may extend to Rs. 50,00,000/- (Rupees Fifty Lakhs
only) and the period of prohibition may extend to 3 (three) years[16]. However, no
endorser shall be liable to a penalty if he has exercised due diligence to verify the
veracity of the claims made in the advertisement regarding the product or service
being endorsed by him[17].
No person shall be liable to such penalty if he proves that he had published or

arranged for the publication of such advertisement in the ordinary course of his
business, however, no such defence shall be available to such person if he had
previous knowledge of the order passed by the Central Authority for withdrawal or
modification of such advertisement[18].
UNFAIR CONTRACTS
Under the 1986 Act, a Consumer could file a complaint only for an unfair trade
practice or restrictive trade practice adopted by the trader/service provider.
However, there were numerous instances where consumers, left with little option,
entered into agreements/contracts that were unilateral and arbitrary in nature, and
were bound by them.
In the present market scenario, there are several occasions where a consumer will
have to accept terms and conditions for making a purchase through an online
market place or while availing an online service, including a financial service. Quite
often these terms and conditions are heavily one sided protecting the interests of
the vendor or the electronic service provider and the consumer will not have any
chances of negotiation or bargain for the modification of the terms of such
contracts. Thus keeping in mind the present dilemma, under the New Act,
Consumers can challenge contracts that are unreasonable. Thus, "unfair
contracts" has been added as a ground for filing complaints in the New Act.
"Unfair Contract"[19] means a contract between the manufacturer/trader/service

provider and the consumer and shall be deemed to be unfair if it adversely affects
the rights of the consumer and includes, (i) demand for huge payments to fulfil the
contractual obligations; (ii) imposing penalty on consumer for breach of contract
when the consumer has already suffered a greater loss due to the breach; (iii)
refusing pre-closure of debts with applicable payment; (iv) unilateral termination of
contracts without proper reasons; (v) permitting one party to assign the contract to
the detriment of the consumer, without his consent; (vi) imposing inequitable
conditions that affect consumers.
All complaints against the Unfair Contracts, where the value of the goods and
services paid as consideration does not exceed Rupees Ten Crores, will have to be
filed before the State Consumer Dispute Redressal Commission[20]. Complaints
with respect to such contracts where the consideration exceeds Rupees Ten
Crores will have to be filed before the National Consumer Dispute Redressal
Commission[21].
UNFAIR TRADE PRACTICE
While 1986 Act had listed six (6) types of unfair trade practices, three (3) types of
additional unfair trade practices have now been added to the list which are as
follows[22]:
failure or non-issuance of a bill or a cash memo;
refusal to take back or withdraw defective goods or withdrawal or

discontinuance of deficient services or refusal to refund the consideration
amount paid within the period as stipulated in the bill or cash memo or receipt
or in the absence of such stipulation, refusal to withdraw or refund goods or
services within thirty (30) days;
disclosure of consumer's personal information to any other person unless

such disclosure is made in accordance with the provisions of any law for the
time being in force or in the public interest.
Before ascertaining whether it amounts to unfair trade practice, it becomes

relevant to determine whether the goods or deficient services have been provided.
The section as drafted in its current form pre-determines existence of defective
products or deficient service. Separately, even if withdrawn or discontinued,
companies could still be held liable under 'product liability' or for 'deficiency of
services'.
The section fails to give any clarity on whether information can be shared if
consent is taken from the consumers. The reliance will have to be placed on
prevalent data protection law.
CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)[23]
The New Act seeks to establish a Central Consumer Protection Authority (to be
termed as Central Authority)[24] that will promote, protect and enforce the rights of
consumers as a class.
The Central Authority will regulate matters relating to violation of consumer rights
including unfair trade practices, misleading advertisements, etc. that are
detrimental to consumer interest. The headquarters of the Central Authority is
currently at Delhi, and it shall have regional and other offices in any other place in
India as the Central Government may decide. The Central Authority can also take
up suo moto cases.
The Central Authority shall have an Investigation Wing[25] headed by a Director

General for the purpose of conducting inquiry or investigation under this Act as
may be directed by the Central Authority.
The district collectors have also been empowered to conduct such investigations
that affect interests of consumer as a class under the New Act. They can
investigate or inquire at the instance of a complaint or on a reference made by the
Central Authority[26].
Under the provisions of the New Act, the Central Authority is mandated to carry out
the following functions[27]:
inquiring into violations of consumer rights, investigating and launching

prosecution at the appropriate forum;
passing orders to recall goods or withdraw services that are hazardous,

reimbursement of the price paid, and discontinuation of the unfair trade
practices, as defined under the relevant provisions of the New Act;
issuance of directions to the concerned trader/ manufacturer/ endorser/

advertiser/ publisher to either discontinue a false or misleading
advertisement, or modify it;
imposition of penalties, and;
issuance of safety notices to consumers against unsafe goods and services

and guidelines to prevent unfair trade practices;
spread and promote awareness and research on consumer rights and
recommend adoption of international covenants and best international

practices on consumer rights to ensure effective enforcement of consumer
rights.
Before the implementation of the New Act, there was no single designated
regulatory body that governs product safety reporting and product recall in India;
however, sector-specific do envisage and provide for recall procedures for
defective products. However, if the Central Authority is satisfied on the basis of
investigation that there is sufficient evidence to establish violation of consumer
rights or unfair trade practices, it may pass an order which may include[28]:
Recall of goods or withdrawal of services;
Reimbursement of the prices of goods or services so recalled to the

purchasers;
Discontinuation of practices that are unfair and prejudicial to consumers'

interests.
The establishment of a Central Authority and initiating action as a class comes as

an additional mode of relief which can be exercised along with individual
consumers filing complaints to address their grievances thereby having two
parallel proceedings.
PRODUCT LIABILITY[29]
There was no separate legislation governing 'product liability' in India, though it

was addressed under 1986 Act, if parties were included within the ambit of
'consumer'. Insertion of "Product Liability" as a separate chapter in New Act and a
new ground for filing a complaint has been one of the most significant additions in
the New Act.
Under the New Act, "Product Liability" is defined as "the responsibility of a product
manufacturer or product seller, of any product or service, to compensate for any
harm caused to a customer by such defective product manufactured or sold or by
deficiency is service-related thereto"[30]. For the sake of clarity, product liability
means the responsibility of product manufacturer or product seller, of any product
or service, related to the product or service to compensate for any the harm
caused to a consumer by such defective product manufactured or sold or by
deficiency in services relating to a product. Any person is entitled to make a claim

of product liability against a product manufacturer or product seller or product
service provider for the defective products/services.
Ingredients to initiate Product Liability Action:
Product manufacturer will be liable if product contains a manufacturing

defect, or defective in design; or there is a deviation from manufacturing
specifications; or does not conform to the express warranty; or fails to contain
adequate instructions of correct usage to prevent any harm or any warning
regarding improper or incorrect usage. Absence of negligence or fraud in
making express warranty of a product cannot be pleaded as a defence[31].
Product service provider may be liable if (a) the service provided was faulty or
imperfect or deficient or inadequate in quality, nature or manner of
performance which is required to be provided by or under any law for the time
being in force, or pursuant to any contract or otherwise; or (b) there was an
act of omission or commission or negligence or conscious withholding any
information which caused harm; or (c) the service provider did not issue
adequate instructions or warnings to prevent any harm; or (d) the service did
not conform to express warranty or the terms and conditions of the
contract[32].
Product seller who is not a product manufacturer may be held liable if (a) he
has exercised substantial control over the designing, testing, manufacturing,
packaging or labelling of a product that caused harm; or (b) he has altered or
modified the product and such alteration or modification was the substantial
factor in causing the harm; or (c) he has made an express warranty of a
product independent of any express warranty made by a manufacturer and
such product failed to conform to the express warranty made by the product
seller which caused the harm; or (d) the product has been sold by him and
the identity of product manufacturer of such product is not known, or if known,
the service of notice or process or warrant cannot be effected on him or he is
not subject to the law which is in force in India or the order, if any, passed or
to be passed cannot be enforced against him; or (e) he failed to exercise
reasonable care in assembling, inspecting or maintaining such product or he
did not pass on the warnings or instructions of the product manufacturer
regarding the dangers involved or proper usage of the product[33].
Exceptions to Product Liability Action: The New Act envisages certain scenarios
where product liability action cannot be product against the product seller. No
liability will be fastened on the product seller if at the time of harm, the product
was misused, altered or modified[34].
In any product liability action based on the failure to provide adequate warnings or
instructions, the product manufacturer shall not be liable, if[35]:
the product was purchased by an employer for use at the workplace and the
product manufacturer had provided warnings or instructions to such
employer;
the product was sold as a component or material to be used in another

product and necessary warnings or instructions were given by the product
manufacturer to the purchaser of such component or material, but the harm
was caused to the complainant by use of the end product in which such
component or material was used;
the product was one which was legally meant to be used or dispensed only
by or under the supervision of an expert or a class of experts and the product
manufacturer had employed reasonable means to give the warnings or
instructions for usage of such product to such expert or class of experts; or
the complainant, while using such product, was under the influence of alcohol
or any prescription drug which had not been prescribed by a medical
practitioner.
CONSUMER REDRESSAL FORUMS
Territorial Jurisdiction: The New Act now provides an added advantage to the
consumers by providing for filing of complaints where the complainant resides or
personally works for gain[36] as against the 1986 Act which only provides for filing
of complaint where the opposite party resides or carry on business. This would
help in removing the difficulties faced by the consumers in seeking redressal of
their grievances against businesses who may not have an office or branch in their
state.
Pecuniary Jurisdiction: The New Act also changed the pecuniary jurisdiction for
the District, State and National Commissions, respectively. The pecuniary limit for
the District Commission has been increased to up to Rs. 1 Crore from up to Rs.20
Lakhs; for State Commission it has been increased to up to Rs. 10 Crores from up
to Rs. 1 Crore; and for National Commission the pecuniary jurisdiction has been
increased to over and above Rs. 10 Crores as against Rs. 1 Crore in the 1986 Act.
In addition to this, the New Act has also changed the manner for determining the
pecuniary jurisdiction for filing the Complaint. Now the pecuniary jurisdiction will
be determined on the basis of the value of goods or services paid as consideration
as against the New Act wherein, the pecuniary jurisdiction was determined as per
the value of goods and services as well as compensation claimed. This would help
in doing away the practice of inflating the compensation claimed so as to bring the
complaint within the jurisdiction of State or National Commission.
E-Complaints: The New Act also contains enabling provisions for consumers to
file complaints electronically and for hearing and/or examining parties through
video-conferencing[37]. This should reduce inconvenience for the consumers,
especially the ones who are physically challenged due to ill-health or old age.
Alternate Dispute Resolution[38]: Another provision introduced by the New Act to

ensure speedy resolution of disputes is to provide for referring the disputes to
mediation. As per the New Act, the Consumer Redressal Forum shall refer the
matter to mediation on written consent of both the parties. For this purpose, the
New Act also provides for establishment of a consumer mediation cell by the
respective State Governments in each District Commission and State Commission
as well as at the National Commission by the Central Government.
Penalty for non-compliance of orders: Under 1986 Act, failure to comply with
orders passed by the District Forums or the State Commissions or the National
Commission attracted a punishment of imprisonment for a term not less than one
month, but which could extend to three years, or with fine, which was not less than
two thousand rupees and could extend up to ten thousand rupees, or with both.
However, the New Act retains the same term of imprisonment for non-compliance,
the fine has been increased to twenty five thousand rupees, which may extend to
one lakh rupees, or both[39].
Power of Review[40]: Under the 1986 Act, the aggrieved parties did not have any
recourse other than filling an appeal to the State or the National Commission to
set right the errors made by the District Forum or the State Commission
respectively. However, under the New Act, the District, State and National
Commissions have been vested with the power to review its own orders where an
application is filed for within 30 days of passing such an order.
Appeal against the order of District Commission[41]: If a party is aggrieved by the

order of the district commission then they may prefer an appeal to the State
Commission within 45 days of receiving such order. The State Commission may
entertain the plea after 45 days if sufficient reason is given by the party. However,
minimum 50% of the amount must be paid before the State Commission will hear
the appeal.
Appeal against the order of the State Commission[42]: If aggrieved by the decision,
the aggrieved party may prefer an appeal to the National Commission within 30
days of receiving the order from the state commission. If sufficient reason is
shown then the National Commission can also entertain the plea after the thirty
days. However, minimum 50% of the amount must be paid before the National
Commission will hear the appeal.
Appeal against the order of the National Commission[43]: If aggrieved by the

decision then an appeal does lie to the Supreme Court if made within thirty days of
receiving the order. If sufficient reason is shown then the Supreme Court can also
entertain the plea after the thirty days. However, minimum 50% of the amount
must be paid before the Supreme Court will hear the appeal.
OFFENCES AND PENALTIES
A person (by himself or through someone on his behalf) who manufactures / sells
/ stores / imports / distributes any product containing an adulterant[44] will be
punished with[45]:
Imprisonment up to 6 months and a fine of up to 1 lakh rupees – in case of no

injury to consumer;
Imprisonment up to 1 year and a fine of up to 3 lakh rupees – injury not

amounting to grievous hurt[46];
Imprisonment up to 7 years and a fine of up to 5 lakh rupees – in case of

grievous hurt;
Imprisonment of not less than 7 years, which may extend to life, and a fine of
not less than 10 lakhs – in case of death of the consumer.
A person (by himself or through someone on his behalf) who manufactures / sells
/ stores / imports / distributes spurious goods will be punished with[47]:
Imprisonment up to 1 year and a fine of up to 3 lakh rupees – injury not

amounting to grievous hurt;
Imprisonment up to 7 years and a fine of up to 5 lakh rupees – in case of

grievous hurt;
Imprisonment of not less than 7 years, which may extend to life, and a fine of
not less than 10 lakhs – in case of death of a consumer.
E-COMMERCE AND ITS RULES
For preventing unfair trade practices in E-Commerce, direct selling and also to
protect the interests and rights of the consumers, the Central Government shall
take all necessary steps and measures to ensure the same.
The Central Government has notified the Consumer Protection (E-Commerce)

Rules, 2020 to prevent unfair trade practices in e-commerce, direct selling and also
protect the rights of the consumers.
IN A NUTSHELL – ANALYSIS BETWEEN 1986 ACT

AND THE NEW ACT
Key Points 1986 Act New Act
Pecuniary District forum – up to District Commission – up to 1

Jurisdiction 20 lakhs crore
State commission - State commission - from 1 crore

from 20 lakhs to 1 to 10 crore
crore
National commission - from 10
National commission - crore and above
from 1 crore and above
Territorial Where seller has office Where complainant resides or

Jurisdiction works
Regulator No such provision Central Consumer Protection

Authority is formed.
Mediation No such provision Courts can refer settlement

through mediation.
E-Commerce No such provision E-Commerce transactions will

come under the provisions
involving direct sales[48]
Key Points 1986 Act New Act
Product No such provision Consumers have the right to

Liability seek compensation for any harm
caused.
Video No such provision Consumers can seek hearing

Conferencing through video conferencing.
Unfair Terms & No such provision State and National Commission

Conditions have power to declare any terms
of contract, which is unfair to
any consumer, to be null and
void.[49]
CONCLUSION
The Consumer Protection Act, 2019 when compared with the 1986 Act shows that
it provides for greater protection of consumer interests taking into consideration
the current age of digitization.
The New Act also deals with the technological advancements in the industry
provide for easier filing of complaints and also imposes strict liability on
businesses including endorsers for violating the interest of the consumers.
The New Act prima-facie is much more consumer-friendly than the 1986 Act as it
also includes the current industry trends of e-commerce.
Certainly 2019 Act is a positive step towards reformation, development, and

enhancing consumer rights. The real test for the New Act is in its implementation
and some leeway needs to be given for it to actualize the relief for the consumers.
Mr. Kalyan Jhabakh & Mr. Sanjay Mehta is a Partner, Ms. Darshika is an Associate
at Surana and Surana International Attorneys. Views are personal.
[1] Section 2(7) of the Consumer Protection Act, 2019.
[2] Section 2(16) of the Consumer Protection Act, 2019. This section is yet to be
notified.
[4] Sections 94 and 101(2)(zg) of the Consumer Protection Act, 2019.
[7] Section 2(36) of the Consumer Protection Act, 2019
[13] Section 21 of the Consumer Protection Act, 2019.
[14] Section 21(2) and Section 89 of the Consumer Protection Act, 2019. However,
Section 89 is yet to be notified
[15] Section 21(2) and Section 89 of the Consumer Protection Act, 2019. However,
Section 89 is yet to be notified by the Central Government.
[20] Section 47 (1) (ii) of the Consumer Protection Act, 2019.
[21] Section 58 (1) (ii) of the Consumer Protection Act, 2019.
[23] The Central Government has established the Central Consumer Protection
Authority with it's headquarter at New Delhi, with effect from 24th July 2020.
[29] Chapter VI, Sections 82-87 of the Consumer Protection Act, 2019.
[36] Section 34(2) (d) of the Consumer Protection Act, 2019.
[38] Chapter V, Sections 74-81 of the Consumer Protection Act, 2019.
[40] For the District Commission–Section 40; State Commission–Section 50;

National Commission–Section 60.
[44] As per Explanation to Section 90, "Adulterant" means any material including
extraneous matter which is employed or used for making a product unsafe.
[46]"Grievous Hurt" shall have the same meaning as given Section 320 of the
Indian Penal Code.
[47]"Section 91 of the Consumer Protection Act, 2019.
[48] As per Section 2(13) "Direct Selling" shall mean marketing, distribution and
sale of goods or provision of services through a network of sellers, other than
through a permanent retail location. This section is yet to be notified.
[49] Sections 49(2) for State Commission and Section 59(2) for the National
Commission.
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Consumer Protection Act 2019 – A Comprehensive

Also Read - Spotlight On Implementation And Enforcement Of POSH Law (/law-firms/law-

INSIGHTS INTO THE CONSUMER PROTECTION ACT,

KEY HIGHLIGHTS OF THE CONSUMER PROTECTION ACT, 2019

EXPANDING THE DEFINITION OF CONSUMER[1] AND DEFINING E-COMMERCE[2]:

NEW ADDITIONS TO CERTAIN DEFINITIONS

PRODUCT MANUFACTURER, PRODUCT SELLER & PRODUCT SERVICE PROVIDER

"Product Seller"[8], in relation to a product, means a person who, in the course of

"Product Service Provider"[9], in relation to a product, means a person who

Be protected against marketing of goods and service which are hazardous to

Be informed of the quality, quantity, potency, purity, standard and price of

Be assured of access to a variety of goods or services at competitive prices;

Seek redressal against unfair or restrictive trade practices;

ADVERTISEMENT AND MISLEADING ADVERTISEMENT:

PROACTIVE STEPS TO CURB MISLEADING ADVERTISEMENTS:

issue directions to the concerned trader or manufacturer or endorser or advertiser

If a misleading advertisement is found to be prejudicial to the interest of

If a misleading advertisement is found to be prejudicial to the interest of

No person shall be liable to such penalty if he proves that he had published or

"Unfair Contract"[19] means a contract between the manufacturer/trader/service

UNFAIR TRADE PRACTICE

failure or non-issuance of a bill or a cash memo;

refusal to take back or withdraw defective goods or withdrawal or

disclosure of consumer's personal information to any other person unless

Before ascertaining whether it amounts to unfair trade practice, it becomes

CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)[23]

The Central Authority shall have an Investigation Wing[25] headed by a Director

inquiring into violations of consumer rights, investigating and launching

passing orders to recall goods or withdraw services that are hazardous,

issuance of directions to the concerned trader/ manufacturer/ endorser/

imposition of penalties, and;

issuance of safety notices to consumers against unsafe goods and services

spread and promote awareness and research on consumer rights and

recommend adoption of international covenants and best international

Recall of goods or withdrawal of services;

Reimbursement of the prices of goods or services so recalled to the

Discontinuation of practices that are unfair and prejudicial to consumers'

The establishment of a Central Authority and initiating action as a class comes as

There was no separate legislation governing 'product liability' in India, though it

deficiency in services relating to a product. Any person is entitled to make a claim

Ingredients to initiate Product Liability Action:

Product manufacturer will be liable if product contains a manufacturing

the product was sold as a component or material to be used in another

CONSUMER REDRESSAL FORUMS

Alternate Dispute Resolution[38]: Another provision introduced by the New Act to

Appeal against the order of District Commission[41]: If a party is aggrieved by the

Appeal against the order of the National Commission[43]: If aggrieved by the

OFFENCES AND PENALTIES

Imprisonment up to 6 months and a fine of up to 1 lakh rupees – in case of no

Imprisonment up to 1 year and a fine of up to 3 lakh rupees – injury not

Imprisonment up to 7 years and a fine of up to 5 lakh rupees – in case of

Imprisonment up to 1 year and a fine of up to 3 lakh rupees – injury not

Imprisonment up to 7 years and a fine of up to 5 lakh rupees – in case of

E-COMMERCE AND ITS RULES

The Central Government has notified the Consumer Protection (E-Commerce)

IN A NUTSHELL – ANALYSIS BETWEEN 1986 ACT

Key Points 1986 Act New Act

Pecuniary District forum – up to District Commission – up to 1

State commission - State commission - from 1 crore

Territorial Where seller has office Where complainant resides or

Regulator No such provision Central Consumer Protection