Consumer Protection Act, 2019

The essentials

The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986. It aims to protect the interests of consumers and to provide simple, speedy and inexpensive redressal of their complaints. It covers all goods and services unless specifically exempted, and it includes transactions made online, through teleshopping, direct selling and multi-level marketing.

Key points

• Consumer: a person who buys goods or hires services for consideration, including users with the buyer's approval. A person who buys goods for resale or for a commercial purpose is not a consumer under the Act.
• Central Consumer Protection Authority (CCPA): a new regulatory body set up under the Act to promote, protect and enforce the rights of consumers as a class, and to act against unfair trade practices and false or misleading advertisements.
• Redressal commissions: the Act provides for District, State and National Consumer Disputes Redressal Commissions (earlier called forums). Their limits are based on the value of goods or services paid as consideration; these limits can be revised by rules, so check an up-to-date source.
• Product liability: a manufacturer, product service provider or product seller can be held responsible for harm caused by a defective product or deficient service.
• Mediation: the Act provides for settling disputes through mediation where the parties agree.
• Ease of filing: complaints can be filed where the complainant lives or works, and can be filed electronically.
• Unfair trade practices under the Act include false representation, misleading advertisements, and sharing a consumer's personal information without consent.

Exam tips

• Remember three new features of the 2019 Act: the CCPA, product liability and mediation.
• A person buying goods to resell them is not a consumer under the Act.

Common mistakes

• Calling the district body a 'district forum'. Under the 2019 Act it is the District Commission.
• Thinking the Act does not cover online purchases. E-commerce transactions are included.