Consumer Protection
Act, 2019
PROF.MANOJ YADAV
Consumer Protection
Act, 2019
• The Consumer Protection Act,
2019, replaced the decades-old
Consumer Protection Act of
1986, marking a significant shift
in protecting consumer interests
in India.
This legislation aims to streamline
the administration and settlement
of consumer disputes through
modernized provisions and new
authorities, addressing the
challenges of a rapidly changing
marketplace, especially in the
digital age.
Objectives of Consumer Protection Act, 2019
• To protect consumer rights by ensuring
access to goods and services of standard
quality, free from unfair trade practices.
• To establish effective mechanisms for
grievance redressal and ensure speedy
resolution of consumer disputes.
• To promote and strengthen consumer
awareness and provide a framework for
addressing complaints through consumer
courts and authorities.
Definition of a Consumer
• A consumer is defined as anyone
purchasing goods or availing
services for personal use, excluding
those for resale or commercial
purposes. The Act expands its scope
to include all modes of transactions:
• Offline and online platforms.
• Teleshopping, multi-level marketing,
and direct selling.
Central Consumer Protection
Authority (CCPA)
The Central Consumer Protection
Authority was established to enforce
consumer rights and address unfair trade
practices and misleading advertisements.
Functions of CCPA-Investigate
violations of consumer rights and
prosecute offenders.
Order the recall of hazardous goods,
reimbursement, or discontinuation of
unfair practices.
Regulate misleading advertisements and
impose penalties.
Consumer Dispute Redressal
Commissions (CDRCs)
The Act mandates the establishment of
CDRCs at district, state, and national
levels. These bodies address complaints
regarding unfair trade practices,
defective goods or services, and
overpricing.
Appeal Mechanism
District to State Commission.
State Commission to National
Commission.
Final appeals lie with the Supreme
Product Liability
• The Act introduces the concept
of product liability, holding
manufacturers, service providers, or
sellers accountable for harm caused
by defective goods or deficient
services.
• Consumers need to substantiate
claims based on specified conditions
in the Act.
Innovative Consumer Rights
Introduced
• Right to file complaints from
anywhere.
• Right to compensation under
product liability.
• Right to protection as a class.
• Hearing through video conferencing.
• Right to know reasons for complaint
rejection.
Redressal Agencies under the
Consumer Protection Act, 2019:-
The three-tier grievances machinery
set up by the Consumer Protection
Act 2019 to redress consumer
grievances is known as Redressal
Agencies. The three agencies are
District Commission, State
Commission, and National
Commission.
1. District Commission
A district commission includes a
president (who can be a working or
retired judge of the District Court)
and two other members. They are
appointed by the state
government. One can file a
complaint for goods and services
of ₹1 crore or less in this agency.
For the complaints filed, if the
district commission feels a
testing and gives its decision based
on the laboratory report and facts.
If the aggrieved party is not happy
with the jurisdiction of the district
commission, then they can appeal
against the judgment of this agency
in the State Commission within 45
days.
2. State Commission
A state commission includes a president
(who must be a working or retired judge
of the High Court) and at least two other
members. They are appointed by the
state government. One can file a
complaint of goods and services worth
less than ₹10 crores and more than ₹1
crore in this agency. After receiving a
complaint from the aggrieved party, the
state commission contacts the party
against whom the complaint has been
filed. Also, for the complaints filed, if the
3. National Commission
A national commission includes a
president and four other members one of
whom shall be a woman, and Central
Government appoints them. One can file a
complaint of goods and services worth
more than ₹10 crores in this agency. After
receiving a complaint from the aggrieved
party, the national commission informs
the party against whom the complaint has
been filed. Also, for the complaints filed, if
the state commission feels a requirement,
it sends the goods to the laboratory for
PENALTIES FOR OFFENCES
Any failure in carrying out the directions
of the National, State or District CDRC
may amount to an imprisonment of not
less than one month with chances of it
getting extended to three years or a fine
of at least 25,000 which may extend to
one lakh rupees or both. As laid down in
section 89, any manufacturer or service
provider, for putting up a false or
misleading advertisement may also be
punished with a penalty extending to
ten lakh rupees with imprisonment up to
with every repetition of the same
attracting a penalty up to fifty lakh
rupees and imprisonment extending to
five years. Further, the endorser of such
advertisements may also be restrained
from endorsing any other goods or
services for a period extending to one
year, which may aggravate to three
years in case of each subsequent
contravention. Any failure to comply
with the directions of the Central
Consumer Protection Authority under
sections 20 and 21 shall result either in
or a fine extending to twenty lakh
rupees or both according to
section 88. Cognizance of offence
under sections 88 and 89 shall be
taken by a court only after
receiving a complaint from CCPA
or an officer authorized by it
