The document summarizes key aspects of the Consumer Protection Act 2019 passed in India. It outlines the background and need for consumer protection laws. The bill was introduced in July 2019 and passed by both houses of Parliament. Key highlights of the new Act include expanding the scope to include e-commerce and online transactions, introducing product liability and unfair contracts, establishing a Central Consumer Protection Authority as regulator, and strengthening consumer dispute redressal commissions. Penalties have also been enhanced for violations of the Act.

1. BY AYUSHI GUPTA
FOUNDING PARTNER – A & T LEGAL
LL.B. – CLC, LAW FACULTY, DU
B.COM (H) – SRCC, DU
CONSUMER
PROTECTION
BILL, 2019

2. BACKGROUND OF CONSUMER LAW
• Promote and protect the interest of consumers against
deficiencies and defects in goods or services consumed for
personal use
• Provide a simpler and quicker redressal to consumer grievances –
3 tier – District, State and National Commission
• Rights:
1. Right to Safety
2. Right to be informed
3. Right to choice
4. Right to be heard
5. Right to seek redressal against unfair trade practices
6. Right to consumer education
Consumer Protection Act, 1986

3. PASSAGE OF THE BILL
08.07.2019
• Consumer Protection Bill 2019
introduced in Lok Sabha
30.07.2019
• Passed in Lok
Sabha
06.08.2019
• Passed in Rajya
Sabha
09.08.2019
• Received
Presidential Assent
NOW
CONSUMER
PROTECTION
ACT
2019

4. HIGHLIGHTS
OF THE 2019
ACT

5. Expressions "buys any goods" and "hires or avails
any services" includes offline or online
transactions through electronic means or by
teleshopping or direct selling or multi-level
marketing
E-COMMERCE INCLUDED
• Not just confined to offline shops
• Platforms like Amazon, Flipkart, Snapdeal
etc. are now included
• Online Service Providers like Urban Clap,
Paytm etc. included

6. PRODUCT LIABILITY INTRODUCED
Product
Manufacturer/Seller
Service Seller
• Compensate
Consumer
• Any Harm is caused
Product
manufactured/sold or
Service rendered
• Deficient

7. UNFAIR TRADE PRACTICES EXPANDED
6 KINDS
• False statement
• Misleading advertisement
• Permitting of free give aways, schemes that are
manipulative
• Sale of sub-standard goods
• Sale of goods/services by creating shortage
• Manufacture, sale or provision of spurious
goods/service
3 MORE ADDED
• Failure to issue bill/receipt
• Refusal to accept a good returned within 30 days
• Disclosure of personal information given except required
by the law

8. UNFAIR CONTRACT INTRODUCEDCONTRACTS
•-Cause significant
changes in consumer
rights
SIXKINDSOFCONTRACTS
- Excessive Security
Deposit
- Disproportionate
penalty in case of breach
- Refusal to accept early
payments of debts
- Unilateral termination
without reasonable
cause
- Assignment without
consent
- Imposing unreasonable
charge, obligation or
condition

9. ESTABLISHMENT OF CENTRAL
CONSUMER PROTECTION AUTHORITY
Promote, protect
and enforce the
rights of consumers
Regulate
matters related
to consumers
Investigation
wing to look
into violations
Issuing
directions to
manufactures,
sellers, service
providers
Imposition of
penalties
Orders to recall
goods or
withdraw
services
Act as Regulator

10. ROLE OF CONSUMER PROTECTION
COUNCILS
To function as advisory bodies
Advice on promotion and
protection of consumer rights
At Central and State Level -
Headed by Minister of
Consumer Affairs
At District Level – District
Collector
Duty of the CCPA

11. CHANGES IN CONSUMER
DISPUTE REDRESSAL
COMMISSIONS
LEVELS
• District
• State
• National
• Headed by
non-judicial
persons
JURISDICTION
• District –
upto 1 crore
• State – 1
crore to 10
crore
• National –
Above 10
Crore
APPOINTMENT
• Not by
Selection
Committee
• By Central
Government
through
notification

12. EASY
APPROACHABILITY OF
COMMISSIONS
Filing from place of
residence of the consumer
now included
Video conferencing for
hearing/ examination of
parties
E-filing of complaints
Fate of complaint to be
decided within 21 days

13. CONSUMER
MEDIATION CELL
Reference to Mediation -
wherever scope for early
settlement exists and parties
agree
Mediation cells to be attached
to consumer forums
No appeal if settled through
mediation
Commissions to prepare a
panel

14. PENALTIES
BY COMMISSIONS
• Non compliance with
orders – imprisonment:
upto 3 years, fine: 25000
to 1L, or both
BY AUTHORITY
• Non compliance with orders
– imprisonment: upto 6
months, fine: upto 20L, or
both
• False misleading ad –
imprisonment upto 2 yrs, fine
upto 10L, prohibition on
endorsement upto 1 year
• Penalties for manufacturing,
storing, selling, importing,
distributing adulterated or
spurious goods

15. PENALTIES FOR ADULTERATED AND
SPURIOUS GOODS
DAMAGE TO
CONSUMER
IMPRISONMENT FINE
INJURY NOT CAUSED
(ONLY FOR
ADULTERATED
GOODS)
UPTO 6 MONTHS UPTO 1 LAKH
INJURY CAUSED UPTO 1 YEAR UPTO THREE LAKHS
GREVIOUS HURT
CAUSED
UPTO 7 YEARS UPTO FIVE LAKHS
DEATH CAUSED UPTO 7 YEAR TO
LIFE
IMPRISONMENT
UPTO 10 LAKHS

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