The Repealing and Amending Act, 2019
📘 Consumer Protection Act, 2019
1. Objective
The Consumer Protection Act, 2019 was enacted to replace the earlier Consumer Protection Act, 1986. It aims to provide timely and effective administration and settlement of consumer disputes.
2. Key Definitions
Consumer: A person who buys goods or services for consideration (not for resale or commercial purpose).
Goods: Every kind of movable property.
Services: Includes banking, financing, insurance, transport, processing, supply of electrical or other energy, etc.
3. Major Features of the Act
a) Central Consumer Protection Authority (CCPA)
New regulatory body established to protect consumer rights.
Can initiate investigations, recall unsafe goods/services, and impose penalties.
Has powers of inquiry, investigation, search and seizure.
b) E-Commerce Regulations
E-commerce platforms are recognized under the Act.
Rules framed for transparency, return/refund policies, and seller details.
Misleading advertisements and unfair trade practices are prohibited.
c) Product Liability
Manufacturers, sellers, or service providers are liable for any harm caused by defective products or services.
Consumer can claim compensation for injury, damage, or loss.
d) Unfair Trade Practices
Includes misleading ads, false representation, hoarding, and black marketing.
Also covers misleading advertisements by celebrities or endorsers.
e) Alternate Dispute Resolution - Mediation
Establishment of Consumer Mediation Cells.
Promotes settlement outside the court through voluntary agreement.
f) Three-Tier Consumer Disputes Redressal Forums
District Commission: Claims up to ₹1 crore.
State Commission: ₹1 crore to ₹10 crore.
National Commission: Above ₹10 crore.
g) Filing of Complaints Made Easy
Consumers can file complaints electronically or from their place of residence/work.
Filing is allowed in simpler language, encouraging wider access.
h) Penalties for Misleading Ads
Penalty up to ₹10 lakh and imprisonment up to 2 years for misleading advertisements.
For repeat offence: ₹50 lakh and imprisonment up to 5 years.
4. Salient Changes Compared to 1986 Act
| Old Act (1986) | New Act (2019) |
|---|---|
| No CCPA | Introduced CCPA for enforcement |
| Limited to goods & services | Includes e-commerce, endorsements, etc. |
| No mediation | Mediation is now part of redressal process |
| Manual complaint filing only | Allows electronic filing |
| Lesser penalties | Heavier penalties for misleading ads, product liability |
📋 Summary Table – Consumer Protection Act, 2019
| Feature | Description |
|---|---|
| Effective Date | 20 July 2020 |
| Main Objective | Protection of consumer interests and quick redressal of complaints |
| Regulatory Body | Central Consumer Protection Authority (CCPA) |
| Redressal Mechanism | District, State, and National Commissions |
| Jurisdiction (Claim Value) | District: ≤ ₹1 crore, State: ₹1–10 crore, National: > ₹10 crore |
| Product Liability | Consumers can sue for injury or loss from defective goods/services |
| E-commerce | Covered under the Act; mandatory disclosures by platforms |
| Mediation | Consumer Mediation Cells for out-of-court settlement |
| Penalties for Misleading Ads | Up to ₹10 lakh (first offence); ₹50 lakh for repeat; jail terms included |
| Filing Options | Online and offline; can file from place of residence |
| Celebrity Endorsements | Can be held liable for misleading advertisements |
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