Remedies and Relief Under Consumer Protection Act, 2019

Remedies and Relief under
Consumer Protection Act, 2019

The Consumer Protection Act, 1986 was enacted to provide for better protection of the interests
of consumers and for the purpose of making provision for establishment of consumer protection
councils and other authorities for the settlement of consumer disputes, etc. Although, the
working of the consumer dispute redressal agencies has served the purpose to a considerable
extent under the said Act, the disposal of cases has not been fast due to various constraints.
Consumer markets for goods and services have undergone drastic transformation since the
enactment of the Consumer Protection Act in 1986. The modern marketplace contains a plethora
of products and services. The emergence of global supply chains, rise in international trade and
the rapid development of e-commerce have led to new delivery systems for goods and services
and have provided new options and opportunities for consumers. Equally, this has rendered the
consumer vulnerable to new forms of unfair trade and unethical business practices. Misleading
advertisements, tele-marketing, multi-level marketing, direct selling and e-commerce pose new
challenges to consumer protection and will require appropriate and swift executive interventions
to prevent consumer detriment.
KEY FEATURES OF CONSUMER PROTECTION ACT, 2019

 Insertion of ‘Product liability’ provision to deter manufacturers and service providers from
delivering defective products or deficient services;
 E-commerce included within the ambit of Consumer Protection Act.
 Establishment of Central Consumer Protection Authority (CCPA);
 Simplified dispute resolution process with substantial increase in pecuniary jurisdiction of
consumer protection commissions;
 Introduction of new additional grounds to file complaints and imposition of higher penalties to
keep in check misleading advertisements and adulteration of products.
NEW REMEDIES FORMULATED

 Removal Of Defects: If after proper testing the product proves to be defective, then the
‘remove its defects’ order can be passed by the authority concerned.
 Replacement of Goods
 Refund of Price
 Award of Compensation: If because of the negligence of the seller a consumer suffers
physical or any other loss, then compensation for that loss can be demanded for.
 Removal of Deficiency in Service: If there is any deficiency in delivery of service, then
orders can be passed to remove that deficiency. For instance, if an insurance company
makes unnecessary delay in giving final touch to the claim, then under this Act orders can
be passed to immediately finalise the claim.
 Discontinuance of Unfair/Restrictive Trade Practice: If a complaint is filed against
unfair/restrictive trade practice, then under the Act that practice can be banned with
immediate effect. For instance, if a gas company makes it compulsory for a consumer to
buy gas stove with the gas connection, then this type of restrictive trade practice can be
checked with immediate effect.
 Stopping of sale of Hazardous Goods
 Withdrawal of Hazardous Goods from the market.
 Payment of Adequate Cost
OLD LAW vs. NEW LAW

FEATURES 1986 2019
1. Ambit of law All goods and services for All goods and services, including
consideration, while free and telecom and housing construction, and
personal services are all modes of transactions (online,
excluded teleshopping, etc.) for consideration.
Free and personal services are
excluded.
2. Unfair trade practices Includes six types of such Adds three types of practices to the
(Defined as deceptive practices practices, like false list,(i) failure to issue a bill or receipt;
to promote the sale, use or representation, misleading (ii) refusal to accept a good returned
supply of a good or service.) advertisements. within 30 days; and (iii) disclosure of
personal information given in
confidence, unless required by law or
in public interest.
Contests/ lotteries may be notified as
not falling under the ambit of unfair
trade practices.
3. Product liability No provision. Claim for product liability can be

made against manufacturer, service
provider, and seller.
4. Unfair contracts No provision. Defined as contracts that cause
significant change in consumer rights.
Lists six contract terms which may be
held as unfair.
5. Central Protection CPCs promote and protect The new Bill makes CPCs advisory
Councils (CPCs) the rights of consumers. bodies for promotion and protection
They are established at the of consumer rights. Establishes CPCs
district, state, and national at the district, State and national level.
level.
6. Regulator No provision. Central Consumer Protection
Authority (CCPA) to promote,
protect, and enforce the rights of
consumers as a class.
7. Pecuniary jurisdiction of District: Up to Rs 20 lakh; District Commission –Up to Rs1 crore

Commissions State: Between Rs 20 lakh State Commission- Between Rs1
crore and Rs 10 crore
and up to Rs one crore;
National Commission –Above Rs.10
National: Above Rs one crore
crore.
8. Composition of District: Headed by current District: Headed by a president and at

Commissions or former District Judge and least two members.
two members. State: Headed by a president and at
State: Headed by a current least four members.
or former High Court Judge
and at least two members. National: Headed by a president and
at least four members.
National: Headed by a
current or former Supreme
Court Judge and at least four
members.
9. Appointment Selection Committee No provision for Selection

(comprising a judicial Committee. Central government will
member and other officials) appoint through notification.
will recommend members on
the Commissions.
10. Alternate dispute redressal No provision. Mediation cells will be attached to the
mechanism District, State, and National
Commissions.
11. Penalties If a person does not comply If a person does not comply with
with orders of the orders of the Commissions, he may
Commissions, he may face face imprisonment up to three years,
imprisonment between one or a fine not less than Rs 25,000
month and three years or fine extendable to Rs one lakh, or both.
between Rs. 2,000 to Rs.
10,000, or both.
12. E-commerce No provision. Defines direct selling, e-commerce
and electronic service provider. The
central government may prescribe
rules for preventing unfair trade
practices in e-commerce and direct
selling.
CONCLUSION
As is evident, CPA 2019 has made several changes to the erstwhile CPA 1986. CPA 2019 has
widened the reach of consumer protection regime in India. The changes made vide CPA 2019
seem to further empower consumers by leveraging responsibilities not only on their counterparts,
i.e., the sellers, manufacturers, service providers, but also the endorsers of such products. It also
attempts to address the issues that were not comprehensively touched upon by CPA 1986, such
interests of consumers as a class, etc.
CPA 2019 has also attempted to ease and fasten the process of consumer disputes resolution by
increasing the pecuniary jurisdiction of the commissions, attaching mediation cells, increasing
the members of the commissions, imposing higher penalties etc. Keeping pace with changing
times and new legislations aimed at protecting the interests en masse, the present bill has
successfully broadened the scope of various provisions, including persons who can file a
consumer complaint to also include class action. This would better protect the rights and interests
of the consumers who are not legally equipped to fight for their rights.
The ramifications of CPA 2019 cannot be precisely gauged beforehand, as many new concepts
have been introduced. However, what can definitely be said is that everyone involved in a
transaction, other than the consumer, will have to be more careful, and cautious than ever before.

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Remedies and Relief under

Consumer Protection Act, 2019

KEY FEATURES OF CONSUMER PROTECTION ACT, 2019

NEW REMEDIES FORMULATED

OLD LAW vs. NEW LAW

3. Product liability No provision. Claim for product liability can be

7. Pecuniary jurisdiction of District: Up to Rs 20 lakh; District Commission –Up to Rs1 crore

8. Composition of District: Headed by current District: Headed by a president and at

9. Appointment Selection Committee No provision for Selection

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