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Consumer Protection Act 2019

The Consumer Protection Act of 2019 made several important changes to better protect consumers in the digital era. Key changes included expanding the definition of "consumer" to include online transactions, adding telecom services under the act's purview, prohibiting unfair contracts and trade practices, establishing liability for defective products, and creating a Central Consumer Protection Authority to regulate violations of consumer rights. The new act also streamlined the consumer dispute process by raising monetary limits of consumer commissions, enabling alternative dispute resolution and online complaints, and allowing judicial review at multiple commission levels. Overall, the 2019 law modernized consumer protections to address evolving digital markets and transactions.

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90 views

Consumer Protection Act 2019

The Consumer Protection Act of 2019 made several important changes to better protect consumers in the digital era. Key changes included expanding the definition of "consumer" to include online transactions, adding telecom services under the act's purview, prohibiting unfair contracts and trade practices, establishing liability for defective products, and creating a Central Consumer Protection Authority to regulate violations of consumer rights. The new act also streamlined the consumer dispute process by raising monetary limits of consumer commissions, enabling alternative dispute resolution and online complaints, and allowing judicial review at multiple commission levels. Overall, the 2019 law modernized consumer protections to address evolving digital markets and transactions.

Uploaded by

pooja gupta
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Consumer Protection Act, 2019

SAY NO TO CAVEAT EMPTOR- “LET THE BUYER BEWARE”

Introduction:-

The world is moving toward the digital era which has made the day to day life
easy and convenient for the consumer like online payment, window shopping
without stepping out of their house. Digitization and globalization of goods and
services and markets respectively bring challenges in front of the consumer.
Thriving E-commerce and other online websites bring problems to consumers
and to protect them Consumer Protection Act 1986 was not enough.

It is a decade-old law which was commenced when there was no such e-


commerce or online shopping was but as time change the law should be
changed and therefore, the Parliament passed the Consumer Protection Act
2019. The Consumer Protection Act, 2019 brought remarkable changes that not
only protect the consumer but it also has made some landmark changes which
restrain unfair trade practice and unfair contract. It also made the consumer
work easier to get redressal through the online portal. 

Modification in the 2019 Act:-

1) Consumer:- the 2019 Act has introduced online transaction which has widen
the definition of “consumer” under section 2(7) where it says that “any person
can buy goods through online or offline transaction” and other modes, which
was not there under section 2(d) of the consumer protection Act, 1986. This has
given protection to consumers who do online shopping by removing the
loopholes.
2) Service:- Section 2(42) of the 2019 Act has also included telecom which was
not there in the previous act 1986. The consumer can approach Consumer
Redressal if there is any issue related to telecom. 

3) Unfair Contract:- This word was not included in the previous act of 1986,
which was introduced in this Act, it provides more protection to the consumer.
If there is a contract between consumers and the goods or service provider and
the terms of the contract cause a significant change in the rights of such
consumers. This also includes paying excessive security deposit by the
consumer, imposing a disproportionate penalty on the consumer for breach of
contract, or imposing unreasonable charges on the consumer.

4) Unfair trade practice:- means “a contract between a manufacturer or trader


or service provider on one hand, and a consumer on the other, having such
terms which cause a significant change in the rights of such consumer,
including the following, namely:—

(i) requiring manifestly excessive security deposits to be given by a consumer


for the performance of contractual obligations; or (ii) imposing any penalty on
the consumer, for the breach of contract thereof which is wholly
disproportionate to the loss occurred due to such breach to the other party to the
contract; or (iii) refusing to accept early repayment of debts on payment of
applicable penalty; or (iv) entitling a party to the contract to terminate such
contract unilaterally, without reasonable cause; or (v) permitting or has the
effect of permitting one party to assign the contract to the detriment of the other
party who is a consumer, without his consent; or (vi) imposing on the consumer
any unreasonable charge, obligation or condition which puts such consumer to
disadvantage”.

Section 2 (47) of the Act has widened the definition of unfair trade practice as
the new Act of 2019 also include making a statement in an electronic record
about the goods quality, quantity, about its feature, characteristic, etc. It also
includes publishing false advertisements in electronic form related to the
product, not to take back the defected goods within the time period which is
mentioned in the memo and disclosure of customer’s personal information to
other people, until unless it is according to law.

5) Product Liability:- means “the responsibility of a product manufacturer or


product seller, of any product or service, to compensate for any harm caused to
a consumer by such defective product manufactured or sold or by a deficiency
in services relating thereto”. It was introduced under section 2(34) of the 2019
Act which states the manufacture or seller of the defective product will be liable
to compensate for that to the consumer. Where under section 2(35) complaints
can be filed before the District or State or National Commission for claiming
compensation.

6) Central Consumer Protection Authority:- Chapter III of the Act, 2019


from Section 10 to section 27 is about the Central Consumer Protection
Authority. It is a significant proposal to introduce Central Consumer Protection
Authority (hereinafter CCPA).  It was established to regulate the matter relating
to the violation of consumer right, to look after the unfair trade practice done by
the seller or manufacture of a product, when there is any false and misleading
advertisement, which is against the public interest and to protect the right of the
consumers. The authority also holds the power to investigate, inquire, and also
have the power to take action against the person for violation of the act. The
authority can also impose punishment in form of penalty and imprisonment. The
penalty can be imposed up to Rs. 50 Lakhs and imprisonment up to three years.

7) Consumer Dispute Redressal Commission:- Only a few changes were


made in the new Act of 2019 under section 34 which talks about the jurisdiction
of the commission and that has given an opportunity to the consumer in
deciding their jurisdiction and also have reduced the burden of filing a
complaint by introducing E-complaint. The modifications made under this
chapter are:-

i. Jurisdiction:- According to the previously enacted act, the District Forum


had jurisdiction up to Rs. 20 Lakhs. But according to the new act of 2019 under
section 34 it has been raised up to 1 Cr. and for State Commission, it has been
raised up to 10 Cr. and lastly for National Commission, it is Rs. 10 Cr. and
more.

Further, as per the Act of 2019, more provisions have been provided for
territorial jurisdiction as well which has been a great relief to the consumer. The
consumers are now able to file a complaint in the district forum which lies in
the jurisdiction where the complainant resides or works at which was not there
in the previous Act, this has made filing of complaint easier for the aggrieved
consumer in an appropriate forum. According to the previous Act, the territorial
jurisdiction was limited to filing the complaint where the opposite party has
business or place of residence.

ii. ADR:- The act has introduced alternative dispute resolution under section 37
of the Act of 2019, to expedite the procedure and make it easy for the consumer
for quick resolution of disputes which was not available in the previous Act.
The District Forum refers the party to mediation where it appears that settlement
is possible between the parties. If the party agrees for mediation they have to
inform the District Forum within 5 days, then the matter transferred to a
mediator. Further, for the above purpose, the mediation cell has been
established in District, State, and National Commission.
 
iii. E-Complaint:- As the heading itself suggests, under section 35 of the Act of
2019, the complainant can file a complaint online before the District Forum.
The consumer who has received defected good or unfair trade practice is use
against them related to goods or services, they can file online complaint against
the seller.  

8. Judicial review:- Section 40 of the New Act of 2019 is about judicial review
by District Commission and State Commission which was not in the previous
act. According to the new act, the power to review is given not only to National
Commission but also to the District Commission and State commission.

Conclusion:-

The Consumer Protection Act, 2019 has played a very important role in the
digital world. Since the previous Act does not have any provisions related to e-
commerce one of the major provisions introduced in the Consumer Protection
Act, 2019 were provisions regarding problems faced by the consumers while
purchasing products in online mode. As at the time of the enactment of the
previous Act of 1986, the e-commerce sector did not play a very big role in the
buyer-seller market. But it has been a long time since 1986 and the buyer-seller
market has taken a 360-degree turn since then, and now e-commerce plays a
vital role in the buyer-seller market therefore the introduction of new provisions
relating to e-commerce was very much needed to protect the consumers.
Therefore, in order to protect them and make it easy for them, the Consumer
Protection Act 2019 was introduced which not only protects the consumer from
getting defective goods but also have eased down there problem like the filing
of the complaint online and where they have residence. The Consumer
Protection Act, 2019, is much more consumer-friendly as compared to the
previous Act. The introduction of these amendments made the work of
consumer easier.
 

By:- Pooja Gupta

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