1. Consumer Protection Act, 2019: Meaning and Key
Features
The Consumer Protection Act, 2019 replaced the old Consumer
Protection Act, 1986. The new bill was passed by the president on Aug
06, 2019. Here we are explaining the key features of this Consumer
Protection Act, 2019.
The Consumer Protection Bill, 2019 has been passed by the Lok Sabha
on Jul 30, 2019, and Rajya Sabha passed on Aug 06, 2019. This bill
was introduced in the parliament by the Minister of Consumer Affairs,
Food and Public Distribution, Mr. Ram Vilas Paswan.
What is the Meaning of 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 Consumer Protection Act?
The basic aim of the Consumer Protection Act, 2019 to save the rights of the
consumers by establishing authorities for timely and effective administration
and settlement of consumers’ disputes.
What is the Definition of the consumer?
As per the act; a person is called a consumer who avails the services and
buys any good for self-use. Worth to mention that if a person buys any good
and avail any service for resale or commercial purpose, is not considered a
consumer. This definition covers all types of transactions i.e. online and
offline.
Key features of the Consumer Protection Act, 2019
1. Establishment of the Central Consumer Protection Authority (CCPA):
The act has the provision of the Establishment of the CCPA which will
protect, promote and enforce the rights of consumers. The CCPA will
regulate cases related to unfair trade practices, misleading advertisements,
and violation of consumer rights.
The CCPA will have the right to impose a penalty on the violators and
passing orders to recall goods or withdraw services, discontinuation of the
unfair trade practices and reimbursement of the price paid by the
consumers.
2. The Central Consumer Protection Authority will have an investigation wing to
enquire and investigate such violations. The CCPA will be headed by the
Director-General.
2. Rights of consumers:
The act provides 6 rights to the consumers;
i. To have information about the quantity, quality, purity, potency, price,
and standard of goods or services.
ii. To be protected from hazardous goods and services.
iii. To be protected from unfair or restrictive trade practices.
iv. To have a variety of goods or services at competitive prices
3. Prohibition and penalty for a misleading advertisement:
The Central Consumer Protection Authority (CCPA) will have the power to
impose fines on the endorser or manufacturer up to 2-year imprisonment for
misleading or false advertisement (Like Laxmi Dhan Warsha Yantra).
Worth to mention that repeated offense, may attract a fine of Rs 50 lakh and
imprisonment of up to 5 years.
4. Consumer Disputes Redressal Commission:
The act has the provision of the establishment of the Consumer Disputes
Redressal Commissions (CDRCs) at the national, state and district levels.
The CDRCs will entertain complaints related to;
i. Overcharging or deceptive charging
ii. Unfair or restrictive trade practices
iii. Sale of hazardous goods and services which may be hazardous to life.
iv. Sale of defective goods or services
Jurisdiction under the Consumer Protection Act, 2019
The act has defined the criteria of Consumer Disputes Redressal Commission
(CDRCs). The National CDRC will hear complaints worth more than Rs. 10
crores. The State CDRC will hear complaints when the value is more than Rs
1 crore but less than Rs 10 crore. While the District CDRC will entertain
complaints when the value of goods or service is up to Rs 1 crore.
3.
4. Consumer Protection Act 2019
Consumer Protection Act was passed in 1986. Then many amendments
were made to meet the need of the time. And later due to growth of
internet, digital technology, new marketing and distribution methods,
advertisement, e- commerce, there was need of a complete new Act
providing more strictprovisions.
the Indian Parliament, on 9 August2019, passed thelandmark Consumer
Protection Bill, 2019 which aims to providethe timely and effective
administration and settlement of consumer disputes
Itincludes somenew provisions as to ...
1. New definition of consumer include online purchasing.
2. Definition of goods include food.
3. Provisions covering 'endorsement'of goods and services.
4. Definition of 'electronic serviceprovider'.
5. Provisions for 'productliability' and 'productliability action' for
goods and services.
6. Wide definition of 'unfair trade practice'
7. New definition of 'harm'.
8. Central Consumer Protection Authority.
9. Changes in pecuniary jurisdiction.
10.Civiland Criminal jurisdiction.
11.Electronically filing of complaint.
12.Mediation.
13.Morepowers to District Commission.
14.Offences and Penalties.
Position prior to Act of 1986
• Non awareness of consumer
• Delay in judicial proceeding
• Expensivejudicial proceeding
• Unprotected and united consumers.
• United and strong traders
5. • Tolerance capacity of consumers
Objectives of the Act
• Public benefit
• Provideremedy
• Recognizerights
• Cheap remedy
• Special machinery
• No complicated proceeding
STATEMENTOF OBJECTS AND REASONS (CPA 1986)
• Itseeks, inter alia, to promote and protect the rights of consumers such as-
• (a) the rightto be protected against marketing of goods which are hazardous to
life and property;
• (b) the right to be informed about the quality, quantity, potency, purity,
standard and price of goods to protect the consumer againstunfair trade
practices;
• (c) the rightto be assured, wherever possible, access to an authority of goods at
competitive prices;
• (d) the right to be heard and to be assured that consumers interests will receive
due consideration at appropriateforums;
• (e) the right to seek redressalagainstunfair trade practices or unscrupulous
exploitation of consumers; and
• (f) right to consumer education.
3. These objects aresought to be promoted and protected by the Consumer
Protection Council to be established at the Central and State level.
4. To providespeedy and simple redressalto consumer disputes, a quasi-judicial
machinery is soughtto be setup at the district, State and Central levels. These
quasi-judicialbodies will observethe principles of natural justice and havebeen
6. empowered to give relief of a specific nature and to award, wherever
appropriate, compensation to consumers. Penalties for noncomplianceof the
orders given by the quasi- judicial bodies have also been provided.
"complainant" means- • (i) a consumer; or • (ii) any voluntary consumer
association registered under any law for the time being in force; or • (iii) the
Central Governmentor any State Government; . • (iv) the Central Authority; or •
(v) one or more consumers, wherethereare numerous consumers having the
same interest; or • (vi) in caseof death of a consumer, his legal heir or legal
representative; or • (vii) in case of a consumer being a minor, his parent or legal
guardian;
Consumer Protection Council
Consumer Protection Council
S. 3. (1) The Central Governmentshall, by notification, establish with effect
fromsuch date as it may specify in that notification, the Central Consumer
Protection Council to be known as the Central Council.
5. The objects of the Central Council shall be to render advice on
promotion and protection of the consumers'rights under this Act.
6. (1) Every State Governmentshall, by notification, establish with effect
fromsuch date as it may specify in such notification, a State Consumer
Protection Council for such State to be known as the State Council.
7. The objects of every State Council shall be to render advice on
promotion and protection of consumer rights under this Act within the
State.
8. (1) The State Governmentshall, by notification, establish for every
District with effect fromsuch date as it may specify in such notification, a
District Consumer Protection Council to be known as the District Council.
9. The objects of every District Council shall be to render advice on
promotion and protection of consumer rights under this Act within the
district.
7. CENTRAL CONSUMER PROTECTION AUTHORITY
S. 10. (1) The Central Governmentshall, by notification, establish with
effect from such date as it may specify in that notification, a Central
Consumer Protection Authority to be known as the Central Authority to
regulate matters relating to violation of rights of consumers, unfair trade
practices and false or misleading advertisements which are prejudicialto
the interests of public and consumers and to promote, protect and enforce
the rights of consumers as a class.
S. 15. (1) The Central Authority shall have an Investigation Wing headed by
a DirectorGeneral for the purposeof conducting inquiry or investigation
under this Act as may be directed by the Central Authority.
(2) The Central Governmentmay appoint a Director-Generaland such
number of Additional Director-General, Director, JointDirector, Deputy
Director and AssistantDirector, fromamongstpersons who have
experience in investigation and possess such qualifications, in such
manner, as may be prescribed.
S. 16. The District Collector (by whatever name called) may, on a
complaint or on a reference made to him by the Central Authority or the
Commissioner of a regional office, inquire into or investigate complaints
regarding violation of rights of consumers as a class, on matters relating to
violations of consumer rights, unfair trade practices and false or misleading
advertisements, within his jurisdiction and submithis report to the Central
Authority or to the Commissioner of a regional office, as the case may be.
S. 17. A complaint relating to violation of consumer rights or unfair trade
practices or false or misleading advertisements which are prejudicialto the
interests of consumers as a class, may be forwarded either in writing or in
electronic mode, to any one of the authorities, namely, the District
Collector or the Commissioner of regional office or the Central Authority.
S. 18. (1) The Central Authority shall—
• (a) protect, promoteand enforce the rights of consumers as a class, and
prevent violation of consumers rights under this Act;
• (b) prevent unfair trade practices and ensurethat no person engages
himself in unfair trade practices;
8. • (c) ensurethat no falseor misleading advertisement is made of any
goods or services which contravenes the provisions of this Act or the rules
or regulations made thereunder;
• (d) ensurethat no person takes part in the publication of any
advertisement which is false or misleading.
• (2) Without prejudiceto the generality of the provisions contained in sub-
section (1), the Central Authority may, for any of the purposes aforesaid,—
• (a) inquire or causean inquiry or investigation to be made into violations of
consumer rights or unfair trade practices, either suo motu or on a complaint
received or on the directions fromthe Central Government;
• (b) file complaints before the DistrictCommission, the State Commission or the
National Commission, as the case may be, under this Act;
• (c) intervene in any proceedings beforethe District Commission or the State
Commission or the National Commission, as the case may be, in respect of any
allegation of violation of consumer rights or unfair trade practices;
• (d) review the matters relating to, and the factors inhibiting enjoymentof,
consumer rights, including safeguards provided for the protection of consumers
under any other law for the time being in forceand recommend appropriate
remedial measures for their effective implementation;
• (e) recommend adoption of international covenants and best international
practices on consumer rights to ensure effective enforcement of consumer rights;
• (f) undertakeand promote research in the field of consumer rights;
• (g) spread and promoteawareness on consumer rights;
• (h) encouragenon-Governmentalorganisations and other institutions working
in the field of consumer rights to co-operate and work with consumer protection
agencies;
• (i) mandate the use of unique and universalgoods identifiers in such
goods, as may be necessary, to preventunfair trade practices and to
protect consumers'interest;
9. • (j) issuesafety notices to alert consumers againstdangerous or hazardous
or unsafegoods or services;
• (k) advisethe Ministries and Departments of the Central and State Governments
on consumer welfaremeasures;
• (l) issue necessary guidelines to prevent unfair trade practices and protect
consumers'interest
POWER OF CENTRAL AUTHORITY
S. 19. (1) The Central Authority may, after receiving any information or
complaint or directions from the Central Government or of its own motion,
conduct or cause to be conducted a preliminary inquiry as to whether
there exists a prima facie case of violation of consumer rights or any unfair
trade practice or any false or misleading advertisement, by any person,
which is prejudicial to the public interest or to the interests of consumers
and if it is satisfied that there exists a prima facie case, it shall cause
investigation to be made by the DirectorGeneralor by the District
Collector.
(2) Where, after preliminary inquiry, the Central Authority is of the opinion
that the matter is to be dealt with by a Regulator established under any
other law for the time being in force, it may refer such matter to the
concerned Regulator along with its report.
POWER TO RECALL GOODS
S. 20. Wherethe Central Authority is satisfied on the basis of investigation
that there is sufficientevidence to show violation of consumer rights or
unfair trade practice by a person, it may pass such order as may be
necessary, including—
(a) recalling of goods or withdrawalof services which are dangerous,
hazardous or unsafe;
(b) reimbursementof the prices of goods or services so recalled to
purchasers of such goods or services; and
(c) discontinuation of practices which are unfair and prejudicialto
consumers'interest: Provided that the Central Authority shall give the
10. person an opportunity of being heard before passing an order under this
section.
ISSUE DIRECTION AND PENALITIES
S. 21. (1) Wherethe Central Authority is satisfied after investigation that
any • advertisement is false or misleading and is prejudicial to the interest
of any consumer or is in contravention of consumer rights, it may, by
order, issuedirections to the concerned trader or manufacturer or
endorser or advertiser or publisher, as the casemay be, to discontinue
such advertisement or to modify the same in such manner and within such
time as may be specified in that order. • (2) Notwithstanding the order
passed under sub-section (1), if the Central Authority is of the opinion that
it is necessary to impose a penalty in respect of such falseor misleading
advertisement, by a manufacturer or an endorser, it may, by order, impose
on manufacturer or endorser a penalty which may extend to ten lakh
rupees: • Provided that the Central Authority may, for every subsequent
contravention by a manufacturer or endorser, imposea penalty, which
may extend to fifty lakh rupees.
(3) Notwithstanding any order under sub-sections (1) and (2), wherethe
Central Authority deems it necessary, it may, by order, prohibit the
endorser of a falseor misleading advertisementfrom making endorsement
of any productor servicefor a period which may extend to one year:
• Provided that the Central Authority may, for every subsequent
contravention, prohibit such endorser frommaking endorsementin
respect of any productor servicefor a period which may extend to three
years.
(4) Where the Central Authority is satisfied after investigation that any
person is found to publish, or is a party to the publication of, a misleading
advertisement, it may imposeon such person a penalty which may extend
to ten lakh rupees.
(5) No endorser shall be liable to a penalty under sub-sections (2) and (3) if
he has exercised due diligence to verify the veracity of the claims made in
the advertisementregarding the productor servicebeing endorsed by him.
(6) No person shall be liable to such penalty if he proves that he had
published or arranged for the publication of such advertisementin the
11. ordinary courseof his business: •Provided that no such defence shall be
available to such person if he had previous knowledgeof the order passed
by the Central Authority for withdrawalor modification of such
advertisement.
(7) While determining the penalty under this section, regard shall be had
to the following, namely:— • (a) the population and the area impacted or
affected by such offence; • (b) the frequency and duration of such offence;
• (c) the vulnerability of the class of persons likely to be adversely affected
by such offence; and • (d) the gross revenuefromthe sales effected by
virtue of such offence.
(8) The Central Authority shall give the person an opportunity of being
heard beforean order under this section is passed.
SEARCH AND SEIZURE
S. 22. (1) For the purposeof conducting an investigation after preliminary
inquiry under sub-section (1) of section 19, the Director-Generalor any
other officer authorised by him in this behalf, or the District Collector, as
the casemay be, may, if he has any reason to believe that any person has
violated any consumer rights or committed unfair trade practice or causes
any false or misleading advertisementto be made, shall,—• (a) enter at
any reasonable time into any such premises and search for any document
or record or article or any other formof evidence and seize such
document, record, article or such evidence; • (b) make a note or an
inventory of such record or article; or • (c) requireany person to produce
any record, register or other document or article.
(2) The provisions of the Code of Criminal Procedure, 1973, relating to search and
seizureshall apply, as far as may be, for search and seizureunder this Act.
(3) Every document, record or article seized under clause (a) of sub-section (1) or
produced under clause (c) of that sub-section shallbe returned to the person,
fromwhomthey were seized or who produced the same, within a period of
twenty days of the date of such seizureor production, as the casemay be, after
copies thereof or extracts therefromcertified by that person, in such manner as
may be prescribed, havebeen taken.
12. (4) Where any article seized under sub-section (1) aresubject to speedy or natural
decay, the Director-Generalor such other officer may disposeof the article in
such manner as may be prescribed.
(5) In the caseof articles other than the articles referred to in sub-section (4),
provisions contained in clause (c) of sub-section (2) of section 38 shallmutatis
mutandis apply in relation to analysis or tests.
APPEAL
S. 24. A person aggrieved by any order passed by the Central Authority
under sections 20 and 21 may file an appeal to the National Commission
within a period of thirty days fromthe date of receipt of such order.
Persons entitled to approach the Commission under the Act
are,
(a) to whom such goods are sold or delivered or agreed to be sold or delivered or
such service is provided or agreed to be provided; or
(b) who alleges unfair trade practice in respect of such goods or service;
(c) any recognized consumer association, whether the consumer is a member of
such association or not;
13. (d) one or more consumers, where numerous consumers are having the same
interest, with the permission of the District Commission, on behalf of, or for the
benefit of, all consumers so interested.
The rights of the consumers who approachthese forums are protected through
effective penalties prescribed under the Act. For instance, if a consumer is
prejudiced due to a false or misleading advertisement the manufacturer or the
service provider can be punished with imprisonment for two years and a fine of ten
lakh rupees. Similarly, if a consumer is subjected to grievous hurt due to
adulteration the manufacturer of such a productcan be punished with
imprisonment of seven years and with fine which may extend to five lakh rupees.
This serves as an effective deterrent against producers or manufacturers adopting
unfair practices for furthering their profit.
Benefits for Consumers under the Act:
1. Consumers are protected against the marketing of goods and services which
are hazardous to life and property.
2. Consumer sovereignty in the choice of goods is guaranteed.
3. Consumers are entitled to a speedy, simple, and inexpensive relief under the
act.
4. The redressal machinery is available within easy reach to the consumers.
5. The authorities under the act are made responsible for the protection of
certain rights. They are the right to safety, right to choose, right to be heard
and right to consumer education. This is enabling legislation and is aimed to
be progressive.
6. The penalties under the Act helps to check arbitrary trade practices in India.
Also, it helps in mutual trust in the consumption of goods and services in a
consumption-based economy like India.
7. The Act has proposed provisions for product liability. If the product is under
defect, then the service provider has to repay the consumer. A manufacturer
or a service provider has to compensate a consumer if the goods/services
cause injury or damage to the consumer. This might be due to a
15. The “Consumer” is generally considered as the king of the market. But sometimes
many organizations or companies tend to cheat the consumer by selling fake goods
or services, which leads to the filing of complaints by the consumers.
For filing the consumer complaint the one who is filing the complaint should be a
consumer. The consumer is important in the market and all activities in the market
are carried around him. A consumer is an individual who obtains the goods or
services for his personal use but not for manufacture or resale, for some
consideration. In recent times, consumers have becomemore vigorous and strong
by appealing their rights when they are cheated.
The basic rights which every consumerpossessand are statutorily provided
by the Consumer ProtectionAct, 1986 are –
1) The right to be safeguarded against unfair trade practices.
2) The right to be well-versed about the goods or services.
3) The right to be guaranteed that the goods or services are of desired quality.
4) The right to be heard in the caseof breach of the right to consumerism.
5) The right to seek redressal in cases of damage suffered.
6) The right to consumer education.
If any of these basic rights of a consumer are violated then it is the responsibility of
the consumer to file a consumer complaint. A consumer complaint will not only be
the sole benefit of the consumer but also it will benefit society as a whole.
16. Reasons to file consumer complaints
Unfair trade practices
Making the highest quantum of profit is the final goal of all the business. But
making use of unfair means such as cheating the customers, marking the wrong
price and other misconducts still continue in the market. The unfair trade practice
is a comprehensive term and even involves the cases of negligence where
municipal authorities were unsuccessfulto give a warning sign while construction
of the road was still on.
Also, a private contractorwas held guilty of unfair trade practice for not covering a
manhole which led to an accident. Therefore, if there is any kind of unfair trade
practice involved in any transaction, the consumer has all the rights to file a
consumer complaint before the applicable forum.
Foodadulteration
Mixing the food with other substances to reduce the quality and increase the profit
is also considered as the unfair consumer practice which is a crime under the
Indian Penal Code. Mixing of the salt with sawdust or mixing ghee with “dalda”
are some of the examples for the same.
Even adulteration of the medicine also comes under the domain of unfair consumer
practices. Adulteration is a threat to consumerism and also threat to life. Therefore,
consumers should always complain about the food adulteration.
Short weights and measures
A normal general store in most of the cases cheats the consumers by weighing
products less than what actually should be weighed. The weighing scale will be
showing one kg, but in actuality, the productwill be weighing around 800 grams.
These kinds of malpractices are considered as serious threat to consumer interest.
17. Misleading information
In this generation of fast technology, everything is available online. One of the
disadvantages of purchasing the goods online is they often try to mislead the
consumers by providing false information. The domain of the consumer protection
act is very wide that it covers online malpractices also.
Not keeping promises
If the company has given a promise then it should ensure that it will keep it. Some
promises sound good but if they are not able to put up with the promise then it will lead
to numerous complaints, distrust and switching to competitors companies.
Poor customer service
When the customer service representatives are untrained and have no idea how to talk to
the customers properly, they keep the customers waiting for a long time and fail to
resolve issues, then it is known as poor customer service. Sometimes representatives fail
to solve simple issues and can’t answer simple questions. When they will be not able to
get their issues solved consumer complaints will start pouring in.
So, these are some of the reasons as to when can a consumer file their complaint.
