THE CONSUMER PROTECTION ACT,

2019
Course : BB.A LL.B First Year (Sem I)
Subject: Law of Torts
 Introduction

• Each one of us is a consumer in one way or another. It is important for us to

be an aware and informed consumer of goods and services available to us in
the market.
• The Consumer Protection Act 2019 has replaced the 1986 Act and seeks to
widen its scope in addressing consumer concerns.
 Need for Consumer Protection
The concept of consumer protection is to safeguard the interests of the consumers. It
adopts measures to protect consumers from unethical malpractices by businesses and
provide a swift redressal of their grievances with regard to:

1. Sale of adulterated goods.

2. Sale of counterfeit goods such as selling a product of lesser value than the real product.

3. Sale of sub-standard goods such as the sale of products that do not meet the
prescribed quality standards.

4. Sale of duplicate goods.

5. Use of malfunctioning weights and measures that lead to underweight of products.

6. Black marketing and hoarding that eventually leads to scarcity of the product and well
as a rise in the price of the same.

7. Overcharging a product

8. Supplying of defective goods.

9. Advertisements that are misleading

10. Supply of inferior services

Need for Amendment of 1986 Act
• Consumer markets have undergone huge transformation since the enactment of the
Consumer Protection Act in 1986.
• Presence of complex products and services in the marketplace.
• The emergence of global supply chains, rise in international trade and the rapid
development of e-commerce.
• New delivery systems for goods and services and have provided new opportunities for
consumers. Equally, this has rendered the consumer vulnerable to new forms of unfair
trade and unethical business practices.
• Misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-
tailing pose new challenges to consumer protection and will require appropriate and
swift executive interventions to prevent consumer detriment.
Object of Consumer Protection Act

“An Act to provide for protection of the interests of

consumers and for the said purpose, to establish
authorities for timely and effective administration
and settlement of consumers' disputes and for
matters connected therewith or incidental thereto.”
Definitions (Section 2)
Consumer : Section : 2 (7)

A ‘consumer’ is generally understood as a person who uses or consumes goods or

avails of any service.

A consumer is a person who buys any goods or avails services for a consideration,
which has been paid or promised, or partly paid and partly promised, or under
any scheme of deferred payment.

It includes any user of such goods or beneficiary of services if such use is made
with the approval of the buyer.

It applies to both offline and online transactions through electronic means

or by teleshopping or direct selling or multilevel marketing.
• The Consumer Protection Act, 2019 has amended the definition of “consumer” by adding
an explanation to Section 2(7).
• This corresponds to Section 2(1)(d) of the erstwhile Consumer Protection Act, 1986.
Here, the definition has been expanded to capture online transactions, tele-shopping,
direct selling and multi-level marketing transactions

Section 2(1)(d)
of Consumer
Protection
Act,
1986

Section 2(7)
of Consumer
Protection
Act, 2019

Direct Selling,
Multi-Level
Marketing, and
Tele-Shopping
Transactions
Definitions (Section 2)
Who is NOT a consumer?

ANY PERSON WHO OBTAINS THE GOODS FOR ‘RESALE’ OR COMMER­CIAL

PURPOSES’ IS NOT A CONSUMER

Case law: Rajeev Metal Works v/s MMTC of India

Held: A person who buys sheets for resale is a commercial purpose. He is therefore, not a consumer.

However, if a person buys those goods and uses them exclusively for the purpose of earning his
livelihood by means of self employment, then he is considered as a consumer.

Bhupendar Bahadur v/s Regional Manager

When a person bought a tractor for his own agricultural use, he was held to be a consumer.
 Definitions (Section 2)
Complaint: Section 2(6)

Any allegation in writing made by the complainant for obtaining relief-

i) an unfair contract or unfair trade practice or a restrictive trade practice has been adopted by any trader or
service provider;

ii) the goods bought by him or agreed to be bought by him suffer from one or more defects;

iii) the services hired or availed of or agreed to be hired or availed of by him suffer from any deficiency;

iv) a trader or a service provider, as the case may be, has charged for the goods or for the services mentioned in
the complaint, a price in excess of the price

v) the goods, which are hazardous to life and safety when used, are being offered for sale to the public— (a) in
contravention of standards relating to safety of such goods as required to be complied with, by or under any
law for the time being in force; (b) where the trader knows that the goods so offered are unsafe to the public;

vi) the services which are hazardous or likely to be hazardous to life and safety of the public when used, are
being offered by a person who provides any service and who knows it to be injurious to life and safety;

vii) a claim for product liability action lies against the product manufacturer, product seller or product service
provider, as the case may be;
Definitions (Section 2)
• The 2019 Act has inserted the relief “Unfair Contract” and “Product Liability”
Definitions (Section 2)
Complainant: Section 2(5)

means one or more consumers, or any voluntary consumer association, central or

state government or the central authority or a legal heir or legal representative or
a parent or legal representative in case of a minor.

Consumer Dispute : Section 2(8)

"consumer dispute" means a dispute where the person against whom a complaint has been made,
denies or disputes the allegations contained in the complaint;
Consumer Rights : Section 2(9)

Right to
Safety

Right to
Right to be
Consumer
informed
Awareness

Consumer
Rights

Right to
Right to be
seek
assured
redressal

Right to
be heard
Definitions (Section 2)
Consumer Rights (Section 2(9))

The Consumer Protection Act 2019 provides for six rights of consumers. These rights include the
following:

i) Right to Safety: The consumer has a right to be protected against goods and services which are
hazardous to life, health and property.

ii) Right to be informed: The consumer has a right to have complete information about the
product he intends to buy including its ingredients, date of manufacture, price, quantity,
directions for use, etc.

iii) Right to be assured: The consumer has the freedom to access variety of products at
competitive prices.

iv) Right to be heard: The consumer has a right to file a complaint and to be heard in case of
dissatisfaction with a good or a service.

v) Right to seek redressal: The consumer has a right to get relief against unfair trade practice of
restrictive trade practices or unscrupulous exploitation in case the product or a service falls short
of his expectations.

vi) Right to Consumer Awareness: The consumer has a right to acquire knowledge and to be a
well informed consumer throughout life. He should be aware about his rights and the reliefs
available to him in case of a product or service falling short of his expectations.
Definitions (Section 2)
Defect: Section 2(10)

"defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time being in force or under
any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation
to any goods or product and the expression "defective" shall be construed accordingly;

Examples:

i) An air conditioner with an unusually loud noise

ii) A TV set which broke down within a week after its purchase and had to be repaired 11 times

iii) A pressure cooker which burst in normal use

 Deficiency : Section 2(11)

means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of
performance which is required to be maintained by or under any law for the time being in force or has
been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to
any service and includes—

(i) any act of negligence or omission or commission by such person which causes loss or injury to
the consumer; and

(ii) deliberate withholding of relevant information by such person to the consumer;

Case laws:

Kanhaiya Lal v/s Sec., Rajas Housing Board

Delay in handing over possession of a house already allotted, despite having received the full price
amounts to deficiency in service.

V. Gopalakrishnan v/s Sancheti Motors Pvt Ltd

Non-delivery of a car within the time stated on the invoice after having received the full price from the
customer is deficiency in service.

A.C Modagi v/s Crosswell Tailors

A tailor charged Rs. 75 for stitching a pant. However, it was so badly stitched that the cloth became
useless.

Held: This amounts to deficiency in services.

 Definitions (Section 2)
Goods : Section 2(21)

"goods" means every kind of movable property and includes "food”

Product : Section 2(33)

Any article or goods or substance or raw material or any extended cycle of such product
either in gaseous , liquid or solid state possessing intrinsic value capable of delivery either
as assembled or a component produced or manufactured to trade. It does not include
human tissues, blood, blood products and organs.

(Added by the 2019 Amendment)

Product Liability : Section 2(34)

"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
deficiency in services relating thereto;

(Added by the 2019 Amendment)

Definitions (Section 2)
Service: Section 2(42)

"service" means service of any description which is made available to potential users and includes,
but not limited to, the provision of facilities in connection with banking, financing, insurance,
transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both,
housing construction, entertainment, amusement or the purveying of news or other information, but
does not include the rendering of any service free of charge or under a contract of personal
service

Contract of Personal Service: A contract of personal service is an agreement that is

entered into by the master with a servant for availing his/her services.
Definitions (Section 2)
Restrictive trade practice: Section 2(41)

A trade practice which manipulates price or affect the flow of supplies in the market relating to goods
and services in such a manner that an unjustified cost is imposed on the consumer.

Example:

i) Refusal to lease out a bank locker unless a fixed deposit is placed with the bank

ii) Compulsory purchase of a set-top box with the TV

Unfair Trade Practice :Section 2(47)

A trade practice for the purpose of promoting sale, use or supply of any goods or service falsely represents
its quality, standard, quantity, composition, style or model.

Examples:

iii) Spurious watches, not made by Rolex, sold as “Rolex”

iv) Advertising sub-standard garments “export quality garments at throw-away prices”

CONSUMER DISPUTE REDRESSAL AGENCIES
What are Consumer Dispute Redressal Agencies?

These are quasi-judicial bodies established under the Act to provide simple, speedy and
inexpensive redressal to the grievances of the consumers. These have been established at three
levels: District, State and National known as:-

National
Commission

State Commission

District
Commission
Major changes introduced by the 2019
Amendment
With a view to provide consumer much ease, the new act has brought major reform in
consumer dispute adjudication process :
• Simplifying the consumer dispute adjudication process
• Introduction of mediation cells
• empowerment of the State and District Commissions to review their own orders
• enabling a consumer to file complaints electronically
• Consumer can now file complaints in consumer Commissions that have jurisdiction over
the place of his/her residence
• videoconferencing for hearing
• deemed admissibility of complaints if the question of admissibility is not decided within
the specified period.
District Consumer Disputes Redressal
Commission or District Commission
Section 28 to 41 of the Consumer Protection Act 2019

Composition of District Commission : Section 28

These are set up by the State Government.

It shall consist of-

i) a President; and

ii) not less than two and not more than such number of members as may be prescribed, in
consultation with the Central Government.
District Consumer Disputes Redressal
Commission or District Commission
Section 28 to 41 of the Consumer Protection Act 2019

Jurisdiction of District Commission : Section 34

• District commission has a jurisdiction to entertain complaints where value of

goods or services paid as consideration does not exceed one crore rupees.
• However, this limit has been recently reduced and now, District commission
has a jurisdiction to entertain complaints where value of goods or services paid as
consideration does not exceed 50 lakh rupees.
District Consumer Disputes Redressal
Commission or District Commission
Jurisdiction of District Commission : Section 34

A complaint shall be instituted in a District Commission within the local limits of whose jurisdiction,—

(a) the opposite party, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or

(b) the cause of action, wholly or in part, arises; or

(c) the complainant resides or personally works for gain

Under the 1986 Act, the complaint could only be filed at a place where the defendant resides or carries on
business or where the cause of action arose. However, under the new Act, considering the convenience of
the consumer and with an aim of speedy redressal of consumer complaint, a consumer can now file a
complaint in the court within the local limits of whose jurisdiction the complainant resides or personally
works for gain
District Consumer Disputes Redressal
Commission or District Commission
Manner of filing complaints : Section 35 of the 2019 Act

Under Section 35, complaint relating to goods or services may be filed before the District Commission by-

i) the consumer 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 who alleges unfair trade practice in respect of such
goods or service;

ii) any recognised consumer association whether or not the affected consumer is a member of such
association

iii) one or more consumers, where there are numerous consumers having the same interest, with the
permission of the District Commission, on behalf of, or for the benefit of, all consumers so interested

iv) the Central Government, the Central Authority or the State Government

Such a complaint can be filed electronically also.

The Complaint has to be accompanied with the court fees.

The Complaint has to be filed within 2 years from the date on which cause of action arose.
District Consumer Disputes Redressal
Commission or District Commission
Procedure :

i) proceeding before the District Commission shall be conducted by the President of that
Commission and atleast one member

ii) On receipt of a complaint, within twenty-one days from the date on which the complaint was
filed the District Commission may admit the complaint or reject the same. However, a complaint
shall not be rejected unless an opportunity of being heard has been given to the complainant.

iii) If the District Commission does not decide the issue of admissibility of the complaint within the
period so specified, it shall be deemed to have been admitted.
District Consumer Disputes Redressal
Commission or District Commission
Procedure

iv) Reference to Mediation : Section 37

Either on the first hearing or at any later stage, it appears to district commission
that there exists elements of settlement which may be acceptable to the parties, it
may direct them to give their consent for settlement of dispute through mediation
within five days.

In case the parties agree for settlement by mediation and give written consent, the
district commission refers the matter for mediation and the provisions relating to
mediation shall apply.

However, in the event of failure of settlement by mediation, the District Commission

shall proceed with the complaint.
District Consumer Disputes Redressal
Commission or District Commission
Where the District Commission admits a complaint, it shall follow the procedure as laid down under
Section 38:

i) A copy of complaint is sent to the opposite party within 21 days of its admission and the opposite
party is called upon to file his version within 30 days (which can be extended by a further period
of 15 days)

ii) if the complaint relates to an alleged defect in the goods and such a defect requires proper
analysis or test, a sample of the goods is sealed and sent to the appropriate laboratory for a
report. The appropriate laboratory has to file the report within 45 days or such extended period as
may be allowed by the District Commission.

iii) The Complainant must pay the fees payable to the laboratory. A copy of the report is to be made
available to both the parties who may file their objections in writing and address oral arguments
on its correctness or otherwise.
District Consumer Disputes Redressal
Commission or District Commission
If the Complaint relates to goods which do not require proper analysis or test or if it relates to any
services:-

i) A copy of complaint is sent to the opposite party within 21 days of its admission and the opposite
party is called upon to file his version within 30 days (which can be extended by a further period
of 15 days)

ii) The District Commission shall proceed to settle the consumer dispute on the basis of evidence
brought to its notice by the complainant and the opposite party, if the opposite party denies or
disputes the allegations contained in the complaint.

iii) where the opposite party omits or fails to take any action to represent his case within the time
given by the Commission , the Commission can proceed ex parte on the basis of evidence
brought to its notice by the complainant.

iv) The District Commission shall decide the complaint on merits if the complainant fails to appear
on the date of hearing.
District Consumer Disputes Redressal
Commission or District Commission
• If this procedure is followed, no proceedings of the District Commission shall be called in question
in any court on the ground that the principles of natural justice have not been complied with.
• Every complaint shall be heard by the District Commission on the basis of affidavit and
documentary evidence placed on record, however, if an application is made for hearing or for
examination of parties in person or through video conferencing, the District Commission may, on
sufficient cause being shown, and after recording its reasons in writing, allow the same.
• Time limit for disposal of complaint:

A) the complaint does not require analysis or testing of commodities : within 3 months from the
date of receipt of notice by opposite party

B) if it requires analysis or testing of commodities : within 5 months

If a complaint is disposed of after the period so specified, the District Commission shall record in
writing, the reasons for the same at the time of disposing of the said complaint.
District Consumer Disputes Redressal
Commission or District Commission
• No Adjournment without sufficient cause: No adjournment shall ordinarily be granted by the
District Commission unless sufficient cause is shown and the reasons for grant of adjournment have
been recorded in writing by the Commission. An order is also required to be passed as regards the
costs occasioned by such an adjournment.

• Power to pass interim order: Where during the pendency of any proceeding before the District
Commission, if it appears necessary, it may pass such interim order as is just and proper in the facts
and circumstances of the case.
District Consumer Disputes Redressal
Commission or District Commission
Type of orders which may be passed by the District Commission: Section 39

Where the District Commission is satisfied that the goods complained against suffer from any of the
defects specified in the complaint or that any of the allegations contained in the complaint about the
services or any unfair trade practices, or claims for compensation under product liability are proved,
it shall issue an order to the opposite party directing him to do one or more of the following, namely:
—

1. to remove the defect pointed out by the appropriate laboratory from the goods in question;

2. to replace the goods with new goods of similar description which shall be free from any defect;

3. to return to the complainant the price, or, as the case may be, the charges paid by the complainant
along with such interest on such price or charges as may be decided;

4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or
injury suffered by the consumer due to the negligence of the opposite party (punitive damages can
also be awarded)
District Consumer Disputes Redressal Commission or
District Commission

Type of orders which may be passed by the District Commission: Section 39

5. to remove the defects in goods or deficiencies in the services in question;
6. to discontinue the unfair trade practice or restrictive trade practice and not to repeat them;
7. not to offer the hazardous or unsafe goods for sale;
8. to withdraw the hazardous goods from being offered for sale;
9. to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;
10. to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a
large number of consumers who are not identifiable conveniently
11. to issue corrective advertisement to neutralise the effect of misleading advertisement at the cost of the
opposite party responsible for issuing such misleading advertisement;
12. to provide for adequate costs to parties; and
13. to cease and desist from issuing any misleading advertisement.
District Consumer Disputes Redressal
Commission or District Commission
Review and appeal:

Review (Section 40) : The District Commission shall have the power to review any of the order passed
by it if there is an error apparent on the face of the record, either of its own motion or on an application
made by any of the parties within thirty days of such order. (added by the 2019 Amendment)

Appeal (Section 41) : to the State Commission within 45 days from the date of the order (State
Commission may entertain the appeal after expiry of the period if sufficient cause is shown)

If Appellant is required to pay any amount in terms of an order of the District Commission, he has to
first deposit fifty per cent. of that amount and then his appeal will be entertained by the State
Commission. (added by the 2019 Amendment)

An appeal before the State Commission shall be heard as expeditiously as possible and every endeavour
shall be made to dispose of the appeal within a period of 90 days from the date of its admission. If an
appeal is finally decided after 90 days, the Commission must record reasons for the same.
State Consumer Disputes Redressal
Commission or State Commission
Section 42 to 52 of the Consumer Protection Act 2019

Composition of State Commission : Section 42

These are set up by the State Government.

It shall consist of-

i) a President; and

ii) not less than four and not more than such number of members as may be prescribed, in
consultation with the Central Government.
State Consumer Disputes Redressal
Commission or State Commission
Jurisdiction of State Commission : Section 47

State commission has a jurisdiction to entertain the following complaints –

i)where value of goods or services paid as consideration exceed one crore rupees
but does not exceed rupees 10 crore

However, this limit has been recently reduced and now, State commission has a
jurisdiction to entertain complaints where value of goods or services paid as
consideration exceed 50 lakh rupees but does not exceed rupees 2 crore

ii) complaints against unfair contracts, where the value of goods or services paid as consideration
does not exceed ten crore rupees

iii) appeals against the orders of any District Commission within the State
State Consumer Disputes Redressal
Commission or State Commission
Jurisdiction of State Commission : Section 47

A complaint shall be instituted in a State Commission within the local limits of whose jurisdiction,—

(a) the opposite party, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or

(b) the cause of action, wholly or in part, arises; or

(c) the complainant resides or personally works for gain

Under the 1986 Act, the complaint could only be filed at a place where the defendant resides or carries
on business or where the cause of action arose. However, under the new Act, considering the
convenience of the consumer and with an aim of speedy redressal of consumer complaint, a consumer
can now file a complaint in the court within the local limits of whose jurisdiction the complainant
resides or personally works for gain
State Consumer Disputes Redressal
Commission or State Commission
Procedure: Same as that of District Commission.

Additionally, the State Commission may also declare any terms of contract, which is unfair to any
consumer, to be null and void.
State Consumer Disputes Redressal
Commission or State Commission
Review and Appeal

Review (Section 50): The State Commission shall have the power to review any of the order passed
by it if there is an error apparent on the face of the record, either of its own motion or on an
application made by any of the parties within thirty days of such order.

Appeal (Section 51): to National Commission within 30 days from the date of the order (State
Commission may entertain the appeal after expiry of the period if sufficient cause is shown)

If Appellant is required to pay any amount in terms of an order of the State Commission, he has to
first deposit fifty per cent. of that amount and then his appeal will be entertained by the National
Commission. (added by the 2019 Amendment)

An appeal before the National Commission shall be heard as expeditiously as possible and every
endeavour shall be made to dispose of the appeal within a period of 90 days from the date of its
admission. If an appeal is finally decided after 90 days, the Commission must record reasons for the
same.
National Consumer Disputes Redressal
Commission or National Commission
Section 53 to 70 of the Consumer Protection Act 2019

Composition of National Commission : Section 42

These are set up by the Central Government.

It is the highest redressal forum established under the Act. It is located in New Delhi.

It shall consist of-

i) a President; and

ii) not less than four and not more than such number of members as may be prescribed, in
consultation with the Central Government.
National Consumer Disputes Redressal
Commission or National Commission
Jurisdiction of National Commission : Section 58

National commission has a jurisdiction to entertain the following complaints –

i)where value of goods or services paid as consideration exceeds rupees 10 crore

However, this limit has been recently reduced and now, State commission has a
jurisdiction to entertain complaints where value of goods or services paid as
consideration exceeds rupees 2 crore

ii) complaints against unfair contracts, where the value of goods or services paid as consideration
exceed ten crore rupees

iii) appeals against the orders of State Commission;

iv) Appeals against the order of Central Authority

National Consumer Disputes Redressal
Commission or National Commission
Procedure: Same as that of District Commission.

Additionally, the National Commission may also declare any terms of contract, which is
unfair to any consumer, to be null and void.
National Consumer Disputes Redressal
Commission or National Commission
Review and Appeal

Review (Section 60): The National Commission shall have the power to review any of the order
passed by it if there is an error apparent on the face of the record, either of its own motion or on an
application made by any of the parties within thirty days of such order.

Appeal (Section 67): : to the Supreme Court within 30 days from the date of the order (Supreme
Court may entertain the appeal after expiry of the period if sufficient cause is shown)

If Appellant is required to pay any amount in terms of an order of the National Commission, he has to
first deposit fifty per cent. of that amount and then his appeal will be entertained by the Supreme
Court. (added by the 2019 Amendment)
Mediation : Section 74 to 81 (Added by the
2019 Amendment)

Mediator to Commission
Terms of prepare a within 7 days on
Mediation to be settlement to be settlement receipt of the
Consumer guided by If settlement is reduced in report and report and
Mediation cell principles of arrived, writing and forward the agreement, pass
natural justice signed by the agreement and suitable orders
parties report to the and dispose of
Commission the matter
Mediation : Section 74 to 81 (Added by the
2019 Amendment)

Commission on
Mediation to
If settlement Mediator shall Submit the receipt of the
Consumer be guided by
is NOT prepare his report to the report , shall
Mediation cell principles of
ARRIVED report Commission continue to
natural justice
hear the issues
Establishment of Central Consumer Protection Authority

• There has been a long-standing demand from the consumers for the establishment of a
central regulator under the consumer protection laws.
• Under Section 10(1) of the Consumer Protection Act, 2019 the Central Government has
the power to establish the Central Consumer Protection Authority (“CCPA”).
• The CCPA is empowered with several functions and duties which will help to protect the
rights of the consumers from being violated, curb unfair trade practices and rope in
producers for false or misleading advertisements.
Central Consumer Protection Authority
(Added by the 2019 Amendment)
Functions of CCPA:

1. To protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights.

2. To prevent unfair trade practices and ensure that no person engages himself in unfair
trade practices.

3. To ensure that no false or misleading advertisement is made of any goods or services.

4. To ensure that no person takes part in the publication of any advertisement which is
false or misleading.
E-COMMERCE WEBSITE AND
CONSUMER PROTECTION RIGHTS
• In the modern consumer market, majority of the consumer complaints are pertaining to
the e-commerce transactions. In these online transactions, the consumer is not aware
of the manufacturer of the product or the service provider, thus many disputes arise as
receiving of defective product and failing to take back the defective product by the
seller, failed to get refund amount or increase in the refund processing time than the
stipulated time, etc.
• By including the online business into the definition of consumer, the act brought in all
the e-commerce transactions under its ambit.
• The 2019 Act provided a comprehensive definition of the term “Consumer” by covering
the E commerce business within its purview
• The Consumer Protection Act 2019 has included e-commerce within its ambit.
• Ecommerce has been defined under section 2(36) of the New Act as “Buying and selling
of goods including digital products over digital or electronic network”
E-COMMERCE WEBSITE AND
CONSUMER PROTECTION RIGHTS
• Under the e-commerce rules, it has been made compulsory for e-commerce platforms
to display details about price, expiry date, return, refund, exchange, warranty and
guarantee, delivery and shipment, modes of payment, grievance redressal mechanism,
payment methods, the security of payment methods etc.

• Additionally, sellers must also display 'country of origin’ which will enable the consumer
to make an informed decision at the pre-purchase stage.

• E-retailers must prominently display details about the 'sellers' offering goods and
services, including the name of their business, whether registered or not, their
geographic address, customer care number, any rating or other aggregated feedback
about such seller E-commerce platforms have to acknowledge the receipt of any
consumer complaint within forty-eight hours and redress the complaint within one month
from the date of receipt.
 Important changes in the New Act : Comparative Analysis
Provisions CPA 1986 CPA 2019
1. Regulator No Separate regulator Central Consumer Protection
Authority
2. Territorial A complaint could be filed in a A complaint can also be filed in a
jurisdiction consumer court where the seller's consumer court where the
{defendant} office is located. complainant resides or work.
3. Product Liability No provision. A consumer can seek
compensation for the harm caused
by a product.
Provisions CPA 1986 CPA 2019

4. Pecuniary Jurisdiction District: up to Rs 20 Lakh District: up to Rs 1 Crore

State: above Rs 20 Lakh up to State: above Rs 1 Crore up to Rs 10
Rs1 Crore Crores
National: above Rs 1 Crore National: above Rs 10 Crores

(as per the new rules, the jurisdiction

has been changed as follows:-
District: upto 50 lakhs
State: 50 Lakh to 2 Crore
National: above 2 crore)

5. E-Commerce No provision All rules of direct selling extended to

e-commerce
Provisions CPA 1986 CPA 2019

6. Mediation No provision The court can refer settlement

through mediation
7. Unfair Contracts No provision Provision for unfair contract
Conclusion
The new Consumer Protection Act, 2019 is of
this era. In this age of digitization, the new act
protects the rights and interests of the
consumer for a foreseeable future. But, the
market changes from time to time and it is
seldom stable. The act must be amended from
time to time to be in line with the evolution of
the consumer market and the consumer
interests.