Consumer Protection Act, 2019
It is a piece of legislation that deals with the protection and safeguarding of the rights of the
consumers of goods and services against unfair practices in the market space.
It outlines the framework adopted for the protection of consumers while also providing for remedies
in case the rights of a consumer have been violated.
OLD VS NEW
Objectives of the Consumer Protection Act, 2019
The Act aims to: (PIECRAPHED)
1. Protect against the marketing of products that are hazardous to life and property.
2. Inform about the quality, potency, quantity, standard, purity, and price of goods to safeguard the
consumers against unfair trade practices.
3. Establish Consumer Protection Councils for protecting the rights and interests of the consumers.
4. Assure, wherever possible, access to an authority of goods at competitive prices.
5. Seek redressal against unfair trade practices or unscrupulous exploitation of consumers.
6. Protect the consumers by appointing consumer protection authorities for timely and sufficient
administration and settlement of consumers’ disputes.
7. Lay down the penalties for offences committed under the Act.
8. Hear and ensure that consumers’ welfare will receive due consideration at appropriate forums in
case any problem or dispute arises.
9. Provide consumer education/advocacy, so that the consumers are aware of their rights.
10. Provide speedy and effective disposal of consumer complaints through alternate dispute
resolution mechanisms.
Who is a Consumer
A consumer is an individual or group of individuals who purchase goods and services for their own
personal use and not for the purpose of manufacturing or resale.
According to Section 2(7) of the Act, a consumer is any person who -
(i) buys any goods for a consideration which has been paid or promised …and includes any user of
such goods other than the person who buys such goods for consideration paid or promised … when
such use is made with the approval of such person, but does not include a person who obtains such
goods for resale or for any commercial purpose; or
(ii) hires or avails of any service for a consideration which has been paid or promised … and
includes any beneficiary of such service other than the person who hires or avails of the services for
consideration paid or promised, … when such services are availed of with the approval of the first
mentioned person, but does not include a person who avails of such service for any commercial
purpose.
Rights of the Consumer (RICHES)
The rights of the consumers are mentioned under Section 2(9) of the Act, which are as follows:
1. The right of a consumer to be protected from the marketing of goods and services that are
hazardous and detrimental to life and property (SAFETY)
2. The right of a consumer to be protected against unfair trade practices by being aware of the
quality, quantity, potency, purity, standard and price of goods, products or services (INFORMED)
3. The right of a consumer to have access to a variety of goods, services and products at competitive
prices (CHOICE)
4. The right to seek redressal at respective forums against unfair and restrictive trade practices.
(HEARD)
5. The right to receive adequate compensation or consideration from respective consumer forums in
case they have been wronged by the seller (REDRESSAL)
6. The right to receive consumer education. (EDUCATION)
Key provisions of Consumer Protection Act, 2019 (CARMPLU)
A) Consumer Protection Councils
a) Central Consumer Protection Council
It is an advisory body and the Central Council must consist of the following members;
1. The Minister-in-charge of the Department of Consumer Affairs in the Central Government
will be appointed as the chairperson of the council, and
2. Any number of official or non-official members representing necessary interests under the
Act.
•The Central Council may meet as and when necessary, however, they must hold at least one
meeting every year.
•The objects of the Central Council is to render advice on promotion and protection of the
consumer’s right.
a) State Consumer Protection Councils
State Consumer Protection Council known as the State Council having jurisdiction over that particular
state. The State Council acts as an advisory body. The members of the State Council are:
1. The Minister-in-charge of the Consumer Affairs in the State Government will be appointed
as the chairperson of the council,
2. Any number of official or non-official members representing necessary interests under the
Act, and
3. The Central Government may also appoint not less than ten members for the purposes of
this Act.
•The State Councils must hold at least two meetings every year.
•The objects of every State Council shall be to render advice on promotion and protection of
consumer rights
b) District Consumer Protection Council
The members of the District Council are:
1. The collector of that district will be appointed as the Chairperson of the District Council, and
2. Any other members representing necessary interests under the Act
• The District Council shall meet as and when necessary but not less than two meetings shall be held
every year.
•The objects of every District Council shall be to render advice on promotion and protection of
consumer rights under this Act within the district.
b) Central Consumer Protection Authority
The Central Government shall establish a Central Consumer Protection Authority which is known as
the Central Authority under Section 10 of the Act, to regulate matters relating to violation of the
rights of consumers, unfair trade practices and false or misleading advertisements which are
prejudicial to the interests of the public and consumers and to promote, protect and enforce the
rights of consumers.
The functions and responsibilities of the Central Authority are laid down in Section 18 of the Act
which includes: (PR UT FM TP II FC R R RA NG) ( UTICRRA)
1. To protect and promote the rights of the consumers as a class and to prevent violation of
consumer rights (Protect Promote Prevent)
2. To prevent unfair trade practices (Prevent Unfair Trade Practice)
3. To ensure no false or misleading advertisements regarding any goods or services are promoted
(Ensure no false or misleading)
4. To ensure no person takes part in false or misleading advertisements (no person takes part)
5. Inquire or investigate in cases of violation of consumer rights or unfair trade practices. (Inquire or
investigate)
6. File complaints before the National, State or District Commission as the case may be. (File
complaints)
7. To review matters relating to the factors hindering the enjoyment of consumer rights. (Review)
8. To recommend the adoption of international covenants and best international practices
concerning consumer rights (Recommend)
9. Promote research and awareness of consumer rights. (Research and awareness)
10. Lay down necessary guidelines to prevent unfair trade practices and protect the interests of the
consumers. (Necessary guidelines to Prevent unfair trade practices)
c) Consumer Dispute Redressal Commission
•The state government shall establish a District Consumer Disputes Redressal Commission, known as
the District Commission in each district of the state under the Act.
•According to Section 28 the District Commission shall comprise of a President and not less than two
members prescribed by the Central Government.
•Section 34 of the Act authorizes the District Commission to entertain complaints where the value of
the goods or services paid as consideration does not exceed one crore rupees. The complaint
relating to goods and services can be filed to the District Commission by the consumer, recognized
consumer association, Central Government, Central Authority, State Government, etc.
•Section 36 states that all the proceedings before the District Commission shall be conducted by the
President and at least one member of the commission.
d) Consumer Mediation Cell
•Chapter 5 Section 74 of the n Act, states that a Consumer Mediation Cell shall be established by the
Central Government at the national level and every state government shall establish Consumer
Mediation Cell exercising within the jurisdiction of that state. The mediator nominated to carry out
the mediation shall conduct it within such time and in such manner as may be specified by
regulations.
•Section 75 of the Act talks about the empanelment of the mediators. It states the qualifications,
terms and conditions of service, the procedure for appointing, and the fee payable to the empanelled
mediators.
•In accordance with Section 77 it is the duty of the mediator to disclose certain facts such as; any
personal, financial or professional in the result of the consumer dispute, the circumstances giving rise
to their independence or impartiality and any other necessary information for the protection of
consumer rights.
e) Product Liability (MSS)
Section 84 - Liability of product manufacturer
•A product manufacturer will be held liable in a product liability action under the following
circumstances: (DDWI)
1. The product contains manufacturing defects.
2. The product is defective.
3. There is a deviation from manufacturing specifications.
4. The product does not conform to the express warranty.
5. The product fails to contain adequate information for proper usage.
Section 85 - Liability of product service provider (DNWI)
•A product service provider will be held liable in a product liability action under the following
circumstances:
1. The service provider will be responsible when the service provided by them is faulty or imperfect.
2. There was an act of negligence on their part.
3. The service provider failed to issue adequate instructions and warnings for the services.
4. The service provider failed to conform to the express warranty or terms and conditions of the
contract
Section 86 - Liability of product seller (ACH)
•A product seller will be held liable in a product liability action under the following circumstances:
1. They altered or modified the product which resulted in being detrimental to the consumer.
2. They failed to exercise reasonable care in assembling, inspecting or maintaining such product
3. They exercised substantial control over the product which resulted in causing harm to the
consumer.
•Exceptions to product liability
There are certain exceptions to product liability action mentioned in Section 87 of the Act, such as;
•The product was altered, modified or misused by the consumer,
•A consumer cannot bring product liability action when the manufacturer has given adequate
warnings and instructions for the use of the product,
•The manufacturer would not be liable in case of a product liability action for not warning about any
danger that is commonly known to the general public.
f) Unfair Trade Practices (SGDP B W DPI)
A trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the
provision of any service, adopts any unfair method or unfair or deceptive practice.
•The definition of 'unfair trade practice' has been broadened to include practices such as:
1. Manufacturing or offering spurious goods for sale or adopting deceptive practices for providing
service,
2. Not issuing proper cash memo or bill for the services rendered and the good sold,
3. Refusing to withdraw, take back or discontinue defective goods and services and refund the
consideration taken thereof within the time period stipulated in the bill or within 30 days if there is
no such provision in the bill,
4. Disclosing personal information of the consumer to any other person not in accordance with the
prevailing laws.
Dispute resolution mechanisms
The Consumer Protection Act, 2019 provides for various dispute resolution mechanisms in India for consumer
disputes. Here are the main mechanisms:
1. Consumer Disputes Redressal Commission (CDRC): This is the primary mechanism for resolving
consumer disputes in India. CDRCs are quasi-judicial bodies at the district, state, and national level
that hear complaints related to defects in goods or services, overcharging, unfair trade practices, and
more. The Act has provisions for setting up a Central Consumer Protection Authority (CCPA) to
protect the rights of consumers and promote the interests of consumers.
2. Mediation: The Act also provides for mediation as a form of alternative dispute resolution. Mediation
is a voluntary process where a neutral third party helps the parties to reach a mutually agreeable
solution to the dispute. This process can be initiated by the consumer or the business.
3. Product Liability Action: In case of injury, damage or death of the consumer due to defective
products, the Consumer Protection Act 2019 has introduced provisions for a product liability action.
This allows consumers to hold manufacturers, importers, and sellers of products liable for any harm
caused by defective products.
4. E-commerce Dispute Resolution: The Act also provides for a separate mechanism for resolving
disputes related to e-commerce transactions. It requires e-commerce platforms to establish a
grievance redressal mechanism to address consumer complaints related to products or services
purchased through their platform
