Consumer Protection Act 2019, Features, Provisions, Government Initiatives

The Consumer Protection Act 2019 is a landmark legislation enacted to strengthen consumer rights and provide a faster, simpler and more effective grievance redressal mechanism. It replaced the Consumer Protection Act 1986 to address emerging challenges such as misleading advertisements, e-commerce transactions, unfair trade practices and product liability. The Act came into force on 20 July 2020 and aims to empower consumers by ensuring access to justice that is affordable, speedy and technology driven. It reflects India’s commitment to consumer welfare in a rapidly evolving market economy.

Consumer Protection Act 2019

The Consumer Protection Act 2019 was enacted after recognising the limitations of the 1986 Act in handling modern consumer disputes. Earlier, consumers relied on a three tier redressal system that often became time consuming due to jurisdictional and procedural delays. With expanding markets, digital platforms and aggressive marketing practices, consumers became more vulnerable to exploitation. The 2019 Act introduced institutional reforms, stricter penalties and new mechanisms like mediation and product liability to protect consumers. It applies to all goods and services, including online and offline transactions, except free and personal services.

Read about: Immoral Traffic (Prevention) Act 1956

Consumer Protection Act 2019 Features

The Consumer Protection Act 2019 introduces several progressive features to modernise consumer protection law and ensure effective enforcement, such as:

• Expansion of the definition of consumer to include online, e-commerce, teleshopping and direct selling transactions
• Recognition of consumer rights such as safety, information, choice and redressal
• Establishment of Central Consumer Protection Authority for enforcement and regulation
• Introduction of product liability for manufacturers, sellers and service providers
• Strong provisions against misleading advertisements
• Three tier Consumer Disputes Redressal Commissions with revised pecuniary jurisdiction
• Filing of complaints electronically and from place of residence
• Provision for mediation as an alternate dispute resolution mechanism
• Strict timelines for admission of complaints
• Coverage of unfair contracts and unfair trade practices
• This act is applicable to the State of Ladakh and Jammu and Kashmir after the replacement of the Consumer Protection Act 1986 and enactment of Jammu and Kashmir Reorganisation Act 2019.

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Consumer Protection Act 2019 Provisions

The Consumer Protection Act 2019 provides a comprehensive legal framework covering consumer rights, enforcement authorities, dispute resolution, penalties and regulatory mechanisms. The major provisions laid through this act has been listed below:

Definition of Consumer

Under Section 2 of the act, consumers along with other terminologies have been defined. A consumer is defined as a person who buys goods or avails services for consideration. It excludes purchases made for resale or commercial purposes. The Act covers all transaction modes including offline, online, electronic platforms, teleshopping, multi level marketing and direct selling.

Consumer Rights

The Act legally recognises key consumer rights:

• Protection against hazardous goods and services
• Right to information regarding quality, quantity, purity, standard and price
• Right to access goods and services at competitive prices
• Right to seek redressal against unfair or restrictive trade practices

Consumer Protection Councils

The Act mandates the establishment of Consumer Protection Councils at the Central, State and District levels. These councils are advisory bodies aimed at promoting consumer awareness and rights.

• Central Council is headed by the Union Minister of Consumer Affairs
• State Councils are headed by State Consumer Affairs Ministers
• District Councils are headed by the District Collector

Central Consumer Protection Authority (CCPA)

The Act establishes the Central Consumer Protection Authority to promote, protect and enforce consumer rights. It is empowered to:

• Investigate violations of consumer rights
• Order recall of unsafe goods and services
• Discontinue unfair trade practices
• Impose penalties for misleading advertisements
• File complaints before Consumer Disputes Redressal Commissions
• Issue safety notices to alert consumers

Misleading Advertisements

The Act imposes strict penalties for false and misleading advertisements.

• Fine up to ₹10 lakh and imprisonment up to two years for first offence
• Fine up to ₹50 lakh and imprisonment up to five years for subsequent offence
• Endorsers can also be penalised and banned from endorsing products

Consumer Disputes Redressal Commissions (CDRCs)

The Act establishes a three tier redressal system in which the appeals lie from District to State Commission, State to National Commission and finally to the Supreme Court. The three tier of redressal system includes:

• District Commission: claims up to ₹1 crore
• State Commission: claims between ₹1 crore and ₹10 crore
• National Commission: claims above ₹10 crore

Consumers can file complaints related to:

• Unfair or restrictive trade practices
• Defective goods or deficient services
• Overcharging or deceptive pricing
• Sale of hazardous goods or services

Adjudication Process

The act has simplified the process of adjudication as compared to the 1986 act by the below mentioned means:

• Electronic filing of complaints allowed
• Complaints can be filed where consumer resides or works
• Video conferencing permitted for hearings
• Complaint deemed admitted if not decided within 21 days
• Power of review granted to all commissions
• Mandatory pre-deposit of 50% for appeals

Mediation

The Act introduces mediation as an Alternate Dispute Resolution mechanism.

• Mediation cells attached to consumer commissions
• Cases referred for mediation with consent of parties
• Faster and less adversarial settlement
• No appeal against mediation settlement

Product Liability

Product liability is a major innovation under the Act. Manufacturers, sellers and service providers are liable for harm caused due to:

• Manufacturing defects
• Design defects
• Deviation from specifications
• Failure to meet express warranty
• Lack of adequate usage instructions
• Deficient or faulty services

E-commerce Rules

The Consumer Protection (E-commerce) Rules 2020 were added as the major provision of the 2019 act. It has the following regulations:

• Mandatory disclosure of return, refund, warranty, delivery and grievance details
• Appointment of grievance officer compulsory
• Complaints must be acknowledged within 48 hours
• Complaints must be resolved within one month
• No refusal of refunds for defective or misrepresented goods
• Prohibition on price manipulation and unjustified pricing

Offences and Penalties

The Act introduces criminal penalties for the first offence as:

• Suspension or cancellation of licence for adulterated goods
• Imprisonment and fines for spurious goods
• Penalties for non-compliance with CCPA directions

Read about: Child Marriage Restraint Act, 1929

Consumer Rights under Consumer Protection Act 2019

The Consumer Protection Act 2019 has prevailed several rights to the consumers through the enactment. The consumer has the following rights:

• Protection against goods and services hazardous to life, health or property.
• Access to correct information on quality, quantity, price, ingredients and standards to prevent unfair trade practices.
• Freedom to access a variety of goods and services at competitive prices without coercion or monopoly pressure.
• Assurance that consumer interests will receive due consideration at appropriate forums and authorities.
• Right to fair settlement of genuine grievances, including compensation for defective goods or deficient services.
• Right to acquire knowledge and skills to make informed consumer choices and protect against exploitation.

Government Initiatives for Consumer Protection

The government has launched multiple initiatives to support the objectives of the Consumer Protection Act 2019. The major initiatives have been listed below:

• National Consumer Helpline (NCH): Toll free number 1800114000 for grievance assistance
• INGRAM Portal: Online platform for grievance registration and awareness
• State Consumer Helplines: Promote dispute resolution at state level
• Smart Consumer App: Barcode scanning for product information
• GAMA Portal: Grievance registration against misleading advertisements
• Online Consumer Mediation Centre: Established at NLSIU Bengaluru
• Jaago Grahak Jaago: Nationwide consumer awareness campaign