The document provides an overview and summary of key aspects of the Consumer Protection Act 2019 which was recently enacted and partially enforced from July 20, 2020. The key points are: 1. The Act establishes a three-tier consumer disputes redressal mechanism at the district, state and national levels based on the value of goods/services. 2. It allows complaints to be filed where the complainant resides in addition to the earlier provisions. 3. Provisions for appeal and pre-deposit have been introduced along with powers of review for commissions. 4. New concepts of unfair contracts, unfair trade practices, product liability, and penalties for violations have been introduced. 5. A Central Consumer

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3. Overview of Consumer Protection Act, 2019
Overall scheme of Consumer Protection Act, 2019 02
Three tier consumer disputes redressal mechanism 02
Complainant can file complaint where he is resident 02
Appeal against orders of Commission 02
Time limit for filing appeal before State Commission 03
Second appeal before National Commission on substantial question of law 03
Commission can review their orders 03
Pre-deposit while filing appeal 03
Administrative control of State Commission over District 03
Commission and National Commission over State Commission
Enforcement of orders of Commission 03
Mediation 05
Provisions relating to unfair contract, restrictive and unfair trade practices 05
Measures to prevent unfair trade practices in e-commerce, direct selling, etc. 05
Central Consumer Protection Authority [Central Authority] 05
Investigation Wing of Central Authority headed by Director General 07
Powers of District Collector 07
Powers to Director General of search and seizure 07
Offences and Penalties 07
Product Liability 07
Central Consumer Protection Council 08
CONTENTS

4. Consumer Protection Act can be described as common man's Civil
Court. The Act is designed to make available cheap and quick
remedy to a small consumer.
Under Sale of Goods Act, the principle is 'caveat emptor,' i.e., 'buyer be aware.'
Buyer is supposed to take care before buying goods. He is supposed to be
knowledgeable and well informed. This may be true about 100 years ago,
when both buyer and seller were on equal footing. However, as organised
manufacturing activity increased, sellers became bigger and better organised,
while buyer continued to be unorganised and weak. Buyer could be easily
misled and duped. It is now realised that a common consumer is neither
knowledgeable nor well informed. He needs support and protection from
unscrupulous sellers. A common consumer is not in a position to approach
civil court. Quick, cheap and speedy justice to his complaints is required.
United Nations adopted guidelines for protection of consumers on 9-4-1985.
All countries were expected to take suitable legislative measures.
Accordingly, 'Consumer Protection Act, 1986' was passed and made effective
in 1987.
The objectives of the Act were discussed in V Kishan Rao v. Nikhil Super
Speciality Hospital (2010) 5 SCC 513 (SC).
Overview of
Consumer Protection
Act, 2019
V S DATEY

5. In Laxmi Engineering Works v. P.S.G. Industrial Institute - 1995 AIR SCW 2114 =
AIR 1995 SC 1428 = 84 Comp. Cas. 121 (SC) = (1995) 3 SCC 583, it was observed
that object of the Act is to protect the consumer from the exploitative and
unfair practices of trade and to provide inexpensive, easily accessible and
speedy remedy.
After gaining experience, new Consumer Protection Act, 2019 was passed
(2019 Act for short). The Act has been partially made effective on 20-7-2020.
The earlier Consumer Protection Act, 1986 has been repealed.
There are many new innovations in the 2019 Act.
Overall scheme of Consumer Protection Act, 2019
The overall scheme of the 2019 Act is as follows.
Three tier consumer disputes redressal mechanism-The Consumer
Protection Act, 2019 envisages three tier mechanism to redress consumer
disputes – (a) District Commission where value of goods or services does
not exceed Rs one crore [section 34(1)] (b) State Commission where value
of goods or services exceeds Rs one crore but does not exceed Rs ten crore
[section 47(1)(a)] (c) National Commission where value of goods or services
exceeds Rs ten crore [section 58(1)(a)(i)]
[Under the 1986 Act, the limit was Rs 20 lakhs in case of District Forum and
100 lakhs in case of State Commission].
In the Consumer Protection Act, 1986, the District Commission was known as
'consumer forums'.
Complainant can file complaint where he is resident-Complainant
can also institute the complaint within the territorial jurisdiction of the
Commission where the complainant resides or personally works for gain
besides what was provided earlier [Section 34(2) and 47(4)]. This will ease
burden on complainant.
Appeal against orders of Commission-The State Commission hears
appeal against order of District Commission and National Commission hears
appeals against original orders of State Commission.
Taxmann Review Bulletin | August 2020 02

6. Appeal to National Commission can be filed only against original order of
State Commission and not against order passed by State Commission in
appeal against the order of District Commission [section 51(1)]
Appeal to Supreme Court can be filed only against original order of National
Commission and not against order passed by National Commission in appeal
against the order of State Commission [section 67]
[Of course, jurisdiction of Supreme Court to admit Special Leave Petition
remains unaffected].
Thus, in each case, only one appeal is provided.
Time limit for filing appeal before State Commission-The limitation
period for filing of appeal to State Commission is increased from 30 days to
45 days. However, there is and was power to condone the delay.
Second appeal before National Commission on substantial question
of law-A second appeal to National Commission has been provided under
section 51(3), if any substantial question of law is involved in the matter.
Commission can review their orders-Power of review has been conferred
to District Commission, State Commission and National Commission under
sections 40, 50 and 60 of the Consumer Protection Act, 2019. This is a new
provision. In my view, this may delay the matter.
Pre-deposit while filing appeal–A pre-deposit of 50% of amount is
mandatory to file appeal. There is absolutely no provision to waive this pre-
deposit of amount. This will considerably reduce frivolous appeals, though in
many cases, this will cause miscarriage of justice, where high pitch unrealistic
demands have been confirmed. [In the 1986 Act, limit for pre-deposit was
only Rs 25,000/35,000].
Administrative control of State Commission over District
Commission and National Commission over State Commission–
Provision has been made for administrative control of State Commission
over District Commission and National Commission over State Commission
[section 70]
Enforcementofordersof Commission-Section71ofConsumerProtection
Act confers power of execution of order of Commission as provided under
Order XXI of first Schedule of The Code of Civil Procedure, 1908.
Overview of Consumer Protection Act, 201903

7. BUY NOW
CONSUMER PROTECTION
ACT 2019 WITH RULES
Enforced with effect from 20-7-2020
Updated till 20th July 2020
The Present Publication is the Latest Edition,
updated till 20th July 2020.
It contains the annotated text of
Consumer Protection Law. Each section of the
Consumer Protection Act shows the
related Rules. Coverage of this book includes:
Overview of the Consumer Protection Act 2019,
with dates of enforcement
Consumer Protection Rules:
Consumer Protection
(Central Consumer Protection Council)
Rules, 2020
Consumer Protection
(Consumer Disputes Redressal Commission) Rules, 2020
Consumer Protection (General) Rules, 2020
Consumer Protection (Mediation) Rules, 2020
Consumer Protection (Salary, Allowances and Conditions of Service of
President and Members of the State Commission and District Commission)
Model Rules, 2020
Tables:
Tables showing sections of the Consumer Protection Act 2019
corresponding provisions of Consumer Protection Act 1986
and vice-versa
Tables showing the date of enforcement of sections of the
Consumer Protection Act 2019

8. Mediation-The State Government shall establish a consumer mediation cell
to be attached to each of the District Commissions and the State Commissions
of that State – Section 72(1) of Consumer Protection Act, 2019. If both parties
agree, the District/State Commission shall refer the matter to mediation. This
is similar to lok-adalat and may expedite procedure of settlement of dispute.
If mediation fails, matter will go back to District/State Commission [This is a
new provision in 2019 Act].
Provisions relating to unfair contract, restrictive and unfair trade
practices-Provisions relating to unfair contract, restrictive and unfair trade
practices have been made in the 2019 Act. Provisions relating to unfair contract
[section 2(46)] are new provisions. Section 49(2) and 59(2) of the 2019 act
gives power to the State Commission and National Commission respectively
to declare any terms of contract, which is unfair to any consumer, to be null
and void. Provisions relating to restrictive trade practice [section 2(42) and
unfair trade practices [section 2(47) were in the 1986 Act also.
Measures to prevent unfair trade practices in e-commerce, direct
selling, etc.-For the purposes of preventing unfair trade practices in
e-commerce, direct selling and also to protect the interest and rights of
consumers, the Central Government may take such measures in the manner
as may be prescribed – Section 94 of Consumer Protection Act, 2019 [This
section not notified and not made effective]
Central Consumer Protection Authority [Central Authority]-
Sections 10 to 27 of Consumer Protection Act, 2019 deal with provisions
relating to Central Consumer Protection Authority [Central Authority], to
regulate matters relating to violation of rights of consumers, unfair trade
practices and false or misleading advertisements which are prejudicial to the
interests of public and consumers and to promote, protect and enforce the
rights of consumers as a class.
The Central Authority shall consist of a Chief Commissioner and other
members. These provisions are not so far notified and not made effective.
Wide powers have been conferred on Central Authority.
[This is new provision under the 2019 Act, not made effective till 20-7-2020]
Overview of Consumer Protection Act, 201905

9. CONSUMER PROTECTION
LAW PRACTICE
The Present Publication is the Latest Edition, updated till 28th July 2020.
Coverage of this book includes:
Guide to Consumer Protection Act, 2019 [Commentary]
Consumer Protection Act, 2019
Rules Regulation Framed under Consumer Protection Act, 2019
Consumer Protection (Central Consumer Protection Council)
Rules, 2020
Consumer Protection (Consumer Disputes Redressal Commissions)
Rules, 2020
Consumer Protection (General) Rules, 2020
Consumer Protection (Mediation) Rules, 2020
Consumer Protection (Salary, Allowances and Conditions of Service of President and Members of the State
Commission and District Commission) Model Rules, 2020
Consumer Protection (Qualification for Appointment, Method of Recruitment, Procedure of Appointment, Term of Office,
Resignation and Removal of the President and Members of the State Commission and District Commission) Rules, 2020
Consumer Protection (E-Commerce) Rules, 2020
Consumer Protection (Consumer Commission Procedure) Regulation, 2020
Consumer Protection (Administrative Control over the State Commission and the District Commission) Regulation, 2020
Consumer Protection (Mediation) Regulations, 2020
Circulars and Notifications
Draft Rules and Regulations Framed under Consumer Protection Act, 2019
Tables:
Tables showing sections of the Consumer Protection Act 2019 corresponding
provisions of Consumer Protection Act 1986 and vice-versa
Tables showing the date of enforcement of sections of the
Consumer Protection Act 2019
A Comprehensive Guide to New Consumer
Protection Law | Enforced with effect
from 20-7-2020/24-7-2020
This book is a Comprehensive Guide to New Consumer
Protection Law, which is enforced with effect
from 20-7-2020/24-7-2020.
What sets this book apart is the compact-comprehensive-
commentary supplemented by compilation of annotated
text of the new Consumer Protection Law with Act,
Rules, Regulation, Circulars Notifications and Draft
Rules Regulations.
BUY NOW

10. Investigation Wing of Central Authority headed by Director
General-The Central Authority shall have an Investigation Wing headed by a
Director General for the purpose of conducting inquiry or investigation under
the Consumer Protection Act as may be directed by the Central Authority
[Section 15(1) of Consumer Protection Act, 2019]
Director General has powers of search and seizure under section 22.
[This is new provision under the 2019 Act, not made effective till 20-7-2020]
Powers of District Collector – Powers have been vested on District
Collector to investigate and report matters relating to violation of consumer
rights [section 16]. He has powers of search and seizure under section 22
[This is new provision under the 2019 Act, not made effective till 20-7-2020]
Powers to Director General of search and seizure – Wide powers have been
conferred on Director General of search and seizure [section 22].
Offences and Penalties – Provision of fine and imprisonment has been
made for first time in Consumer Protection Act [sections 88 to 93].
Penalty for non-compliance of direction of Central Authority – section 88
[Not notified as provisions relating to Central Authority not notified till 20-7-
2020]
Punishment for false or misleading advertisement – section 89 [This section
is draconian and luckily not made effective till 20-7-2020]
Punishment for manufacturing for sale or storing, selling or distributing or
importing products containing adulterant – section 90.
Punishment for manufacturing for sale or for storing or selling or distributing
or importing spurious goods – section 91.
Product Liability – The 2019 Act provides for claim for compensation
under a product liability action by a complainant for any harm caused by a
defective product manufactured by a product manufacturer or serviced by a
product service provider or sold by a product seller – Section 82 of Consumer
Protection Act, 2019. This is a new provision in the 2019 Act.
Overview of Consumer Protection Act, 201907

11. Central Consumer Protection Council - The Central Government shall,
by notification, establish the Central Consumer Protection Council to be
known as the Central Council – Section 3(1) of Consumer Protection Act,
2019.
The Central Council shall be an advisory council and consist of the following
members, namely - (a)the Minister-in-charge of the Department of Consumer
Affairs in the Central Government, who shall be the Chairperson; and (b)such
number of other official or non-official members representing such interests
as may be prescribed – Section 3(2) of Consumer Protection Act, 2019.
Taxmann Review Bulletin | August 2020 08

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