 Dr.

SUDHIR KOCHHAR

CONSUMER PROTECTION
ACT 2019
INTRODUCTION
● Consumerism is a movement that promotes the interests
of buyers of goods and services.

● Its main aim is to protect the consumer from unsafe or low

quality of products, fraudulent advertising, labeling,
packing and business practices that limits competition.

● It promotes adequate information about the products. So

that consumer can take right decision in purchasing goods
and services.
It also tries to inform consumers of the effective means of
getting compensation for damage or inconvenient caused
by defective products and services.

Due to increasing standards of life style, various consumer

distresses like the lapses in the services offered by various
utilities the air lines, railways, telecommunications,
electricity board, nursing homes etc. are growing.
It is the wholesalers and middlemen who indulge in illegal
activities like dumping of goods to create artificial scarcity
and raise the prices of commodities which will increase
their profits.
• So, consumerism is a national problem affecting
every section of the society such as men and women,
young or old and youth or child.

• Hence, consumer protection is a form of social action

which will be designed to achieve the well being of
the one or group within a society.

• There is a need to extend consumerism in India which

encompasses the set of activities of government
business enterprise and independent consumer
organizations that are designed to protect the
rights and interests of consumers.
WHY THE NEED OF NEW LAW ?
Consumer markets have undergone
huge transformation since the
enactment of the Consumer
Protection Act in 1986.

Presence of increasingly complex

products and services in the
marketplace.

The emergence of global supply

chains, rise in international trade
and the rapid development of e-
commerce.
 Equally, this has
New delivery systems
rendered the
for goods and services
consumer vulnerable
and have provided
to new forms of unfair
new opportunities for
trade and unethical
consumers.
business practices.

• Misleading advertisements, tele-marketing, multi-level

direct selling and e-tailing pose
marketing, tonewconsumer protection and will
appropriate
challenges require
and swift executive interventions to
prevent consumer detriment.
● Due to above cited reasons the Consumer
Protection Bill, 2019 was passed by the Indian
Parliament on Aug 06, 2019, and later on
signed by the President of India.

● Thisnew act will replaced the old Consumer

Protection Act, 1986.
 OBJECTIVES OF NEW STATUTE
● Ease the overall process of consumer grievance redressal
system

● A better mechanism to dispose consumer

complaints in a speedy manner

● Help in disposal of large number of pending cases in

consumer courts across the nation
 What is in the Consumer Protection
Act, 2019?

Consumer Protection Act, 2019 is a law to protect

the interests of the consumers.

This Act was inevitable to resolve a large number

of pending consumer complaints in consumer
courts across the country.

It has ways and means to solve the consumer

grievances speedily.
What is
the aim of  The basic aim of the Consumer Protection
Act, 2019 to save the rights of the
the consumers by establishing authorities for
Consumer timely and effective administration and
Protection settlement of consumers’ disputes.
Act, 2019?
 As per the Consumer
Protection Act, 2019:
• A person is called a consumer who
What is avails the services and buys any
good for self- use.
Definition • This definition covers all types of
of transactions i.e. online and offline.
• # Worth to mention that if a person
consumer buys any good and avail any
service for resale or commercial
purpose, is not considered a
consumer.
 CONSUMER RIGHTS
● Consumer rights is an insight into what rights
consumer holds when it comes to seller which
provide the goods:

• Right to Safety: It means right to be protected

against the marketing of goods and services,
which are hazardous to life and property. Before
purchasing, consumers should insist on the quality
of the products as well as on the guarantee of the
products and services.
• Right to be Informed: It means right to be
informed about the quality, quantity, potency,
purity, standard and price of goods so as to
protect the consumer against unfair trade
practices.

• Right to Choose: It means right to be assured,

wherever possible of access to variety of
goods and services at competitive price. This
right can be better exercised in a competitive
market where a variety of goods are available
at competitive prices
• Right to be Heard: It means that consumer's
interests will receive due consideration at
appropriate forums. It also includes right to be
represented in various forums formed to
consider the consumer's welfare.

• Right to Seek Redressal: It means right to

seek redressal against unfair trade practices or
unscrupulous exploitation of consumers. It
also includes right to fair settlement of the
genuine grievances of the consumer.
● Right to Consumer Education: It means the
right to acquire the knowledge and skill to be an
informed consumer throughout life. Ignorance of
consumers, particularly of rural consumers, is
mainly responsible for their exploitation.
 NEW FEATURES

SIMPLIFIED DISPUTE
Pecuniary Jurisdiction enhanced
RESOLUTION
PROCESS
to-

1.District Forum - Up to Rs 1 crore

2.State Commission - Between Rs 1
crore and Rs 10 crore
3.National Commission - Above Rs 10
crore
• Deemed admissibility after 21days of filing

• Empowerment of Consumer Commission

to enforce their orders

• Appeals only on question of law after second stage

• Ease of approaching consumer commission

• Filing from place of residence

• E-filing

• Video- Conferencing for hearing

 CENTRAL CONSUMER PROTECTION
AUTHORITY (CCPA)
While the sector regulators essentially serve as standard
setting bodies and seek to ensure an even playing field
between Government and other stakeholders.

It is an Executive Agency to provide relief to a class of

consumers. Swift executive remedies are proposed in
the bill through CCPA

The CCPA will be empowered to promote, protect and

enforce the rights of consumers as a class
• CCPA would make interventions to prevent consumer detriment
arising from unfair trade practices.

• The agency can also initiate class action, including enforcing recall,
refund, return of unsafe products, goods and services and impose
penalties.

• It will regulate matters related to violation of consumer rights,

unfair trade practices, adulteration of products and misleading
advertisements.

• Provisions for deterrent punishment to check misleading

advertisements and
 Presently Consumer
Authority will have only have a single
power to impose a point of access to
penalty on a justice, which is
manufacturer or an time consuming.
endorser of up to 10 Additional swift
lakh rupees and executive remedies
imprisonment for up are proposed in the
to two years for a bill through Central
false or misleading Consumer
advertisement. Protection Authority
(CCPA)
MEDIATION
• An Alternate Dispute Resolution (ADR) mechanism

• Reference to Mediation by Consumer Forum

wherever scope for early settlement exists and
parties agree for it.

• Mediation cells to be attached to Consumer Forum

• No appeal against settlement through mediation

 PRODUCT LIABILITY
●A manufacturer or product service provider or product
seller to be responsible to compensate for injury or
damage caused by defective product or deficiency in
services
● The Basis for product liability action will be:

• Manufacturing defect
• Design defect
• Deviation from manufacturing specifications
• Not conforming to express warranty
• Failing to contain adequate instruction for correct use
• Services provided are faulty, imperfect or deficient
UNFAIR TRADE PRACTICES

● The new Act introduces a specific broad definition

of Unfair Trade Practices, which also includes
sharing of personal information given by the
consumer in confidence, unless such disclosure is
made in accordance with the provisions of any other
law.
NEW REMEDIES FORMULATED
• Envisages simplified dispute resolution process, has
provision for Mediation and e-filing of cases

• Exclusive law dealing with Product Liability. A

manufacturer or product service provider or product
seller will now be responsible to compensate for
injury or damage caused by defective product or
deficiency in services.

• Product liability provision to deter manufacturers

and service providers from delivering defective
products or deficient services.
• The Bill also enables regulations to be notified on E-
commerce and direct selling with focus on protection of
interest of consumers.

• a provision for class action law suit for ensuring that

rights of consumers are not infringed upon.
Consumer Disputes Redressal Commissions?

● Like in thecase of the 1986 Act, DISPUTES

COMMISSIONS (CDRCs) would be setup at
various levels.

● The CDRCs would be set up at multiple levels –

• District
• State
• National
 E-filing of Complaints

● The New Act provides flexibility to the consumer to file complaints

with the jurisdictional consumer forum located at the place of residence
or work of the consumer

● The new Act also contains enabling provisions for consumers to file
complaints electronically and for hearing and/or examining parties
through video- conferencing.

● This is aimed to provide procedural ease and reduce inconvenience and

harassment for the consumers.
What is the appellate process?
● The parties involved in the complaint have the right to
appeal in the higher forums in respect to any ruling
provided in the respective CDRCs.

• Any appeals from the district CDRC would be heard in the

State CDRC.

• Appeals from State CDRCs would be taken up in National

CDRC.

• The final appeal beyond National CDRC would be taken up

by the Supreme Court.
CONCLUSION
● With the new Act all set to become the law, gone are
the days, where the 'consumer was asked to
beware'.
● A consumer is now the one who assumes to be
treated like a King.
● Hence, it is important for consumer driven
businesses (such as, retail, e-commerce) to be
mindful of the changes in the legal landscape and
have robust policies dealing with consumer
redressal in place.
● Consumer driven businesses must also strive to take
extra precautions against unfair trade practices and
unethical business practices.