Key Highlights of Consumer Protection Act 2019

Corporate India Blog - Key Highlights of Consumer Protection Act 2019

Today in our quick read blog (No. 03/2020-21), we have presented an outlook on The Consumer Protection Act, 2019 (Act 2019) which has come into force from July 20, 2020 (except the sections yet to be notified) thereby repealing the erstwhile Consumer Protection Act 1986. Our quick blog will feature this Act in phased manner for next few days.

To start with, below are key highlights of the Act:

a) New definitions: Various new definitions and improvement of existing definitions have been carried out to make the Act as equipped as possible to deal with modern era transactions of goods and services. Definitions of consumer, unfair trade practices, etc. have been widened and new key definitions of terms like product liability, design, consumer rights, e-commerce, etc. have been introduced.

b) Inclusion of e-commerce transactions: This is a very material change to include e-commerce transactions wide a separate definition and also within the scope of definition of “consumer” which has been defined to include any person who buys any goods, whether through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing. This definition binds the loose end which the erstwhile Act failed to address in specific.

c) Revision of pecuniary limits: Pecuniary limits (value of goods or services) are fixed to determine the jurisdiction of different forums under the Act. The limits existed in erstwhile Act too and the only change is regarding their upward revision. The new limits are:

• District forum – upto INR 1 crore
• State Commission – INR 1 crore to 10 crores
• National Commission – Above INR 10 crores

d) Introduction of e-filing of complaints: E-filing of complaints for consumers has been enabled and provisions related to hearing and/or examining parties through video-conferencing has also been inducted. In this digital and fast paced world, these powers shall allow the customers to be more connected to the consumer dispute forums as physical filing proved to be deterrent for masses earlier, for small / lower amount defaults.

e) Establishment of Central Consumer Protection Authority (CCPA): In the modern era of transactions, dispute forums acted as guns without bullets. The establishment of CCPA, will give muscle to this Act as execution and judiciary can function independently now under this domain. The CCPA will have its own investigation wing. This regulatory body encompasses power to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 (one) individual. The CCPA is an additional regulatory body set up in addition to the existing Consumer Protection Councils at District, State and National level.

From tomorrow, certain provisions of this Act shall be taken up in small portions to analyse the complete Act gradually over next few days.