ARMY INSTITUTE OF LAW, MOHALI
CLASS SEMINAR
SUBMITTED IN PARTIAL FULFILMENT OF B.A. LL.B. 5 YEARS DEGREE AT ARMY
INSTITUTE OF LAW, MOHALI
CONSUMER PROTECTION ACT, 2019
SUBMITTED TO:
Mrs. Kulpreet Kaur Bhullar
Ms. Harpreet Kaur
SUBMITTED BY:
Atul
5th year (Section A), 1659
TABLE OF CONTENT
S.NO.
TOPIC
PAGE NO.
1.
Introduction
2
2.
Who is a consumer?
3
3.
Rights of a consumer
3
4.
Highlights of the Consumer Protection
4-10
Act, 2019
5.
How is the new act different from the
11
old one?
6.
Conclusion
12
1
“A customer is the most important visitor on our premises. He is not dependent on us. We are
dependent on him. He is not an interruption of our work. He is the purpose of it. He is not an
outsider of our business. He is part of it. We are not doing him a favor by serving him. He is
doing us a favor by giving us the opportunity to do so.”1
Introduction
The advent of the digital era in commerce paved the way for ground breaking changes by
contributing to more active buyers and sellers in the market than there ever was before. This
meant products and services are more conveniently accessible and are more affordable than its
convenience store counterparts. With the shifting of commerce into its digital form that we know
today, new problems came along with it. The existing legal frameworks in India during that time
were ill equipped and did not recognize digital commerce and as a result the consumers were put
at a vulnerable spot. But at last the age old Consumer protection Act of 1986 was replaced by an
era appropriate Consumer Protection Act, 2019.
The Consumer Protection Act, 2019 received the assent of the President of India and was
published in the official gazette on 9 August 2019. The New Act came into force from 20th July,
2020. The act has a total of 107 sections and 8 chapters.
This paper aims to provide an insight into the newly introduced provisions of the act, how they
will ensure justice to the consumer, procedure, different authority, etc.
Who is a Consumer?
Under the new Act, "consumer" is defined as a person who
●
buys any goods &
● hires or avails of any service for consideration
● but does not include a person who obtains goods for resale or goods or service for any
commercial purpose.
1
Mahatma Gandhi in a speech in South Africa in 1890
2
● This buying and hiring of goods includes both online as well as offline transactions
through digital means.
In simple words a consumer is an individual who purchases an item or service for his personal
use. If the person buys an item for manufacturing or for release purposes he shall not be
considered a consumer. The new definition includes both online as well as offline modes of
commerce.
Rights of the consumer
A consumer has various rights and it is important to give him such rights and protect them. The
below mentioned are the rights of the consumer as enshrined under the Consumer Act● Right to be protected against the marketing of goods, products or services which are
hazardous to life and property;
● Right be informed about the quality, quantity, potency, purity, standard & price of goods,
products or services;
● Right to be assured about access to a variety of goods, products or services at competitive
prices;
● Right to be heard & to be assured that his interests will receive due consideration at an
appropriate forum;
● Right to seek redressal against unfair trade practices or restrictive trade practices or
unscrupulous exploitation of consumers;
● Right to consumer awareness.
Highlights of the Consumer Protection Act, 2019
The main provisions of the new Consumer Protection Act as discussed below-
3
Consumer Protection Councils2
● The Consumer Protection Act, 2019 provides for setting up of Consumer Protection
Councils at Central and State level.
● The Central government is empowered to set up Central Consumer Protection Councils at
the Central level & the concerned state governments are empowered to set up State
Consumer Protection Councils in their respective states. The council's objective would be
to render advice on protecting the rights of consumers under the act.
● Besides these, the act also provides for setting up of District Consumer Protection
Councils at district level.
Central Consumer Protection Authority3
● The Consumer Protection Act, 2019 provides for the establishment of the Central
Consumer Protection Authority (CCPA) for protection, promotion and enforcement of
consumer rights.
● The CCPA will conduct investigations into violation of consumer rights & institute
complaints/ prosecution.
● It can order recall of unsafe goods and services.
● It can order discontinuance of unfair trade practices and misleading advertisements
● It can impose penalties on Manufacturers/Endorsers/Publishers of misleading
advertisements.
Easy procedure for dispute resolution
● A consumer complaint will be deemed to be admissible after 21 days of filing, if no
chance is given to the consumer to put forth his case
● The Consumer Commissions are now empowered to enforce their orders.
2
3
Chapter II of the Consumer Protection Act, 2019
Chapter III of CPA, 2019
4
● The State Commission & District Commission can now review their own orders under
the new act.
● Appeals can only be filed on question of law after second stage
● A consumer can file a complaint before a forum under whose jurisdiction he resides or
works.
● The new Act provides for E-filing of consumer complaints by the aggrieved party.
● It also recommends video conferencing for hearing of the matter.
Grants
The Act empowers the Central government to allocate grants for the purpose of carrying out the
provisions of this Act.4 The grants must be approved by the Parliament. Timely release of grants
is vital for effective functioning of the authorities mentioned under the act and to ensure justice is
done to the aggrieved consumer.
Consumer Dispute Redressal Commission
● The new Act provides for setting up of Consumer Dispute Redressal Commissions at
three levels, namely District, State & National.
● The State governments can set up district redressal commissions in each district and can
also set up more than one district commission at one district. They can also make rules &
regulations for salaries and allowances of the members concerned.5
● The Central government may provide for the method of appointment, qualification, etc.
for the president and members of the commissions.6
● Similarly, The State and National level redressal commissions will be set up for disposal
of cases. They will have a president and other members. Other modalities will be drafted
by the concerned government.
4
S. 25 of CPA, 2019
S. 30 of the Act
6
S. 29 of the Act
5
5
E - Commerce & electronic service provider
● The new Act has introduced the concept of "e-commerce," which means the purchase or
sale of goods or services by digital or electronic network, including digital products.
● Section 94 of the Act deals with the prevention of unfair e-commerce and direct sale
practices and protects consumer interests and rights.
● The Act also introduced the concept of an "electronic service provider" it is described as
a person who provides software or processes to allow a product seller to advertise or sell
products or services to a customer and includes any online marketplace or auction sites.
Further, an electronic service provider is now included under the definition of a product
seller.
Alternative Dispute Resolution Mechanism
● A matter can be referred to mediation by Consumer Commissions wherever scope for
early settlement exists and parties agree to it.7
●
A Mediation Cell will be attached to each redressal forum at district, state 8and national
level and its regional Benches for quick resolution of the dispute.
● A Panel of mediators will be selected by the selection committee consisting of the
President and a member of the Consumer Commission.9
● Mediation will be held in the consumer mediation cell of the forum.10
● There won’t be any appeal against settlement through mediation.
● In event of failure to settle the dispute, the concerned commissions shall continue to
adjudicate the dispute.
Misleading advertisement
7
S. 37 of CPA, 2019
S. 42 of CPA, 2019
9
S.75 of CPA, 2019
10
S.74 of CPA, 2019
8
6
The Act provides for punishment in case of misleading advertisements. According to Section 89,
if any manufacturer or service provider makes a false or misleading advertisement which is
prejudicial to the interest of consumers, he shall be punished with an imprisonment for a term
which may extend to 2 years & with fine which may extend to ₹ 10 lakh, and for every
subsequent offence, he will be punished with imprisonment for a term which may extend to 5
years and with fine which may extend to 50 lakhs rupees.
Adulteration, spurious goods
● It is not uncommon these days to find a lot of manufacturers, companies, etc. to
compromise on the quality of the goods, etc. they indulge in unfair trade practices and
follow the path of adulteration. This is a violation of a consumer's right. So, the new act
of 2019 provides for punishment in case of adulteration.11 If anyone is found indulging in
doing adulterous practices, then he shall be liable for imprisonment as well as fine, or
both.
● If the action does not result in any injury to the consumer, then the person involved shall
be liable for imprisonment for a term which may extend to 6 months and with fine which
may extend to ₹ 1 lakh.
● If it leads to causing injury not amounting to grievous hurt to the consumer, then the
person involved will be liable for imprisonment for a term which may extend to 1 year
and with fine which may extend to 3 lakh rupees;
● If it causes an injury resulting in grievous hurt to the consumer, then imprisonment for a
term which may extend to 7 years and with fine which may extend to ₹ 5 lakh.
● If the act of the person results in the death of a consumer, then he shall be liable for an
imprisonment for a term minimum of 7 years, but which may extend to imprisonment for
life and with fine which shall be ₹ 10 lakhs.
● The act also contains provisions for punishment in case one sells spurious goods.12
11
12
S. 90 of the Act
S. 91 of the Act
7
Product liability13 & penal provisions
A manufacturer or product service provider or product seller will be responsible to compensate
for injury or damage caused by defective product or deficiency in services.
The following are the basis for product liability action ● Manufacturing defect,
● Design defect,
● Deviation from manufacturing specifications,
● Not conforming to express warranty,
● Failing to contain adequate instructions for correct use &
● Service provided is faulty, imperfect or deficient
However, there are certain exceptions to it.14 If proper warning was provided and the
complainant was negligent in using or was intoxicated while using, then the provisions won’t be
attracted. Also, if the goods require experts for their use, then also the consumer won’t have any
claim under these provisions.
Enhancement of Pecuniary Jurisdiction
Under the Act, pecuniary jurisdiction has been enhanced. For cases where value of goods or
services paid as consideration is less than one crore, complaint can be filed before a district
forum and if value of goods or services paid as consideration is not less than 1 crore and doesn’t
exceed ten crore rupees, then the state redressal forum will have the jurisdiction.15 If the value is
above 10 crores, then the national consumer redressal commission will have the jurisdiction.
Appeals
13
Chapter VI of CPA, 2019
S. 87 of the Act
15
S. 47 of the Act
14
8
● An aggrieved party can file an appeal before the appropriate forum. Appeal lies to a state
forum from a district consumer forum and it lies to a national forum from a state forum.
● In case any party is not satisfied with the decision of the national commission, the appeal
shall be filed before the Supreme Court.
● A decision becomes final if not appealed.
Powers to central government
The new Act empowers the central government to frame rules and regulations in case of any
difficulty.
Limitation period16
The Act provides for a limitation period of two years, which means a complaint can be filed by
the aggrieved party within two years from the date when cause of action arose. However, if the
complainant is able to convince the court about delay in filing, then such period can be waived
off. However, the forum has to record reasons for condoning such delay in filing complaints.
Other offences and penalties
● The Act provides for stringent penalties in cases of violation of the provisions of the act
or in case of noncompliance with the prescribed norms. Chapter VII if the Act
specifically provides for punishment in certain offences.
● Under it, if anyone fails to comply with any direction issued by the Central Authority
under sections 20 & 21, he shall be punished with imprisonment for a term which may
extend to 6 months or with fine which may extend to 20 lakhs rupees, or with both.17
16
17
S. 69 of The Consumer Protection Act, 2019
S. 88 of CPA, 2019
9
● Under the act, no competent court can take cognizance of any offence under sections 88
and 89 except on a complaint filed by the Central Authority or any officer authorized by
it on this behalf.18
● The Act also provides for punishment in case of vexatious search. Under it, if any
Director General or any other officer while exercising powers under section 22 & knows
that there are no reasonable grounds for so doing, and yet carries out searches, or causes
seizes any record, register or other document or articles shall, for every such offence, be
punished with imprisonment for a term which may extend 1 year, or with fine which may
extend ₹ 10,000 or with both.19
How is it different from the 1986 Act?
The new Consumer Protection Act, 2019 is different from the old act of 1986. Although, the
hierarchy of the forums remains the same but the new act has introduced certain major changes
some of them which were discussed above. Apart from these, the new act has enhanced the
pecuniary jurisdiction of district and state forums. It has empowered the district and state forums
to review their own orders. Since the economy was opened up in 1991 due to LPG reforms, there
was a need to have a robust consumer protection act in the country. There were some loopholes
in the old act which are covered by the new 2019 Act. The new act provides for alternative
dispute mechanisms like mediation. Besides these, it also provides for online filing of cases and
gives more freedom to the consumer to file cases from the place of his residence of work.
18
19
S. 92 of the Act
S. 93 of the Act
10
Conclusion
Consumer is the real king and his interests must be protected. If consumers of an economy are
happy, then chances of that economy’s development are higher. It is the responsibility of the
government as well the companies to ensure that the consumers do not suffer unnecessarily at the
hands of some wrong organizations. Consumers have trust in the companies and they expect the
right quality products. Robust laws in place will help the companies refrain from indulging into
wrong practices and will make the country a good and a viable business place. The new
Consumer Protection Act is a welcome step, it will help the consumers get access to justice in
consumer forums.
However, there are a few things which I would like to suggest to make sure justice is done to the
consumers❏ Appointment of members of the consumer forum should be made in time &
unnecessary delays should be avoided.
❏ The procedure should be made a little easier, as most of the time the consumer
finds it difficult to handle the matter on their own and end up hiring a lawyer and
paying him some fees.
❏ Virtual hearings should be encouraged & appropriate digital infrastructure should
be made available.
❏ Funds should be released well in time, unnecessary delays should be avoided.
❏ Appointment of legal assistants in consumer forums must be there to help the
consumers and help them in filing case, etc.
❏ The staff must be trained well and regular updates about the case must be
uploaded on the portal on time.
❏ Recently, the Delhi government announced online filing of consumer
complaints20, other states too need to adopt such policies.
❏ Effective implementation of other acts like Food Safety Act, Legal Metrology
Act, etc. must be done to ensure that the manufacturers, etc. comply with the laws
20
https://www.thehindu.com/news/cities/Delhi/cm-launches-online-portal-for-filing-of-consumercomplaints/article32555720.ece last accessed on 13th September, 2020 at 18:00 hours
11
& consumers do not have to face harassment. This in a way will lead to less cases
going to consumer forums.
❏ Some of the provisions like fines in case of vexatious search need more clarity as
to who will prosecute and how will truth be ascertained.
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