AMENDMENTS IN CPA 2019
•Penalties:
•The Consumer Commissions are authorized to impose penalties on trader or person
against whom complaint is made if he fails to comply with the order of the redressal
agency.
•The penalty or punishment may involve imprisonment for a period not more than
3 years or a fine of not more than 10 thousand rupees or both.
Features of Consumer Protection Act, 2019
Salient Features of the Act
Wider Ambit to address New Emerging
Challenges
•The New Act equip the machinery to meet the new emerging challenges like e-
commerce, telemarketing, misleading advertisements, etc. and ensure efficiency in
grievance redressal.
Inclusion of e- Commerce
•The earlier Act did not specifically include e-commerce transactions.
This gap has been addressed by the New Act. ‘E-commerce’ and
‘electronic service provider’ have been defined under the Act.
•‘E-commerce’ has been defined as buying or selling of goods or
services including digital products over digital or electronic network.
The central government has been authorized to take measures and
make rules to prevent unfair trade practices in e-commerce.
Broader Definition of Consumer
•The definition of ‘consumer’ under section 2(7) is broader and
includes both offline and online transactions. The ambit of
consumer has been widened to cover not only online transactions but
also telemarketing and multi-level marketing which will impose
responsibility at all levels.
Flexibility in place of filing the complaint:
•The New Act provides flexibility to the consumer to file complaints with the
consumer commission located at the place of residence or work of the consumer.
E-Filing of Complaints
•The New Act also enables consumers to file complaints electronically and for
hearing and/or examining parties through video-conferencing. This is to ensure
procedural ease and reduce inconvenience and harassment to the consumers.
o Establishment of Regulator for Consumer Protection
•The New Act provides for establishment of the Central Consumer Protection
Authority (CCPA) 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.
Key Points 1986 Act New Act
District forum – up to 20 lakhs
District Commission – up to 1 crore
State commission - from 20 lakhs
State commission - from 1 crore to 10 crore
Pecuniary Jurisdiction to 1 crore
National commission - from 10 crore and
National commission - from 1
above
crore and above
Territorial
Where seller has office Where complainant resides or works
Jurisdiction
Central Consumer Protection Authority is
Regulator No such provision
formed.
Mediation No such provision Courts can refer settlement through mediation.
E-Commerce transactions will come under the
E-Commerce No such provision
provisions involving direct sales
Consumers have the right to seek
Product Liability No such provision
compensation for any harm caused.
Consumers can seek hearing through video
Video Conferencing No such provision
conferencing.
State and National Commission have power to
Unfair Terms &
No such provision declare any terms of contract, which is unfair
Conditions
to any consumer, to be null and void.
• The Consumer Protection Act, 2019 when compared with the 1986 Act shows
that it provides for greater protection of consumer interests taking into
consideration the current age of digitization.
• The New Act also deals with the technological advancements in the industry,
provides for easier filing of complaints and also imposes strict liability on
businesses including endorsers for violating the interest of the consumers.
• The New Act prima-facie, is much more consumer-friendly than the 1986 Act
as it also includes the current industry trends of e-commerce.
• Certainly the 2019 Act is a positive step towards reformation, development and
enhancing consumer rights. The real test for the New Act is in its
implementation and some freedom needs to be given for it to actualize the
relief for the consumers.
