Consumer Protection Act 2019 : Strengthening protection of Consumer

Business environment is dynamic in nature. It keeps changing according to the varying conditions in the market or may be due to influence of any economic, political, social factors affecting such an environment. Also it is to be noted that Law is too dynamic in nature. So when the business environment is changing day by day and new activities are entering into the scope of market and influencing lives of people in a larger ambit, then shouldn't the law governing such activities also be changed ?

In the era of increased online buying and selling of goods and services, the main question that strikes our mind is whether the existing law on consumer protection in India is efficient to cover the aforesaid business activity or any other activities. To much appreciation, the parliament of India, in 2019, amended the 1986 Act to expand the horizon of consumer protection in India and thus we can definitely say that any such gap in the previous existing consumer law has been filled up.

This article mainly focuses on highlighting the differences between the Consumer Protection Act 1986 (hereinafter referred as “CPA, 1986”) and the Consumer Protection Act 2019 (hereinafter referred as “New Act”).

The Consumer Protection Act came into existence in 1986. It was amended in the year 2019 (New Act).On 9th August 2019, the said act received the assent of the President of India and it was published in the official gazette .

The basic aim of Consumer Protection Act 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumer disputes.

DIFFERENCES:

1. Regulatory :-

• In CPA, 1986 there was no separate Regulatory Authority for consumer protection.

• Whereas in New Act, it proposes the establishment of a regulatory authority known as Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers as a class. The CCPA has been granted wide powers to take suo-moto actions, recall products, order reimbursement of price of goods/services, cancel licenses etc. If a consumer complaint effects more than one individual, it will have an investigation wing which may conduct inquiry or investigation into consumer law violations

2. Consumer Court :-

• According to CPA, 1986, a complaint could be filed, where the seller (defendant) office is located.

• The New Act provides flexibility to file complaints in a Consumer Court where the complainant resides or works. It also contains provisions for consumers to file complaints electronically .

3. Product liability :-

• The CPA, 1986 is silent on product liability. Henceforth Consumer could approach a civil court but not a consumer court.

• Whereas in New Act, claim for product liability can be made against manufacturer, service provider and seller. Compensation can be obtained by proving certain specified conditions in the said Act and thus the consumer can approach the consumer court.

4. Pecuniary Jurisdiction of commissions :-

• As per 1986 Act, the District forum can entertain consumer complaints where the value of goods or services paid doesn't exceed Rs.20 lakhs, State forum: Between Rs.20 lakhs and up to Rs.1 Crore. National forum : above Rs.1 crore.

• In the 2019 Act, revised pecuniary limits have been fixed under this Act. Accordingly District forum can entertain consumer complaints where the value of goods or services paid doesn't exceed Rs.1 Crore, State forum : Between Rs.1 crore and up to Rs.10 Crore. National forum above Rs.10 crore.

5. E commerce :-

• CPA, 1986 is silent on e-commerce.

• Whereas, the New Act covers E commerce Transactions.This Act has widened the definition of 'Consumer'. The definition now includes any person who buys any goods, whether through offline or online transactions, electronic means, teleshoppings, direct selling or multi level marketing. Under the said Act all rules for direct selling are extended to e-commerce. E-commerce entities are required to provide information relating to return, refund, exchange and warranty etc.

6. Penalties :-

• As per 1986 Act, if a person doesn't comply with orders of the commissions, he may undergo imprisonment between one month and three years or fine between Rs. 2,000 to Rs.10,000 or both.

• Whereas as per New Act if a person doesn't comply with the orders of commissions, he may face imprisonment upto 3 years or fine not less than Rs.25,000 extendable to one lakh or both.

7. Unfair Trade Practice :-

• The CPA, 1986 includes six types of such practices like false representation, misleading advertisement etc.

• The New Act adds three new types of practices to the list : Failure to issue bill or receipt, refusal to accept a good return within 30 days and disclosure of personal information given in confidence, unless required by law or in public interest .

Conclusion:

The consumer protection Act (2019) is a significant legislative measure that changed the face of consumer laws existing in India. Definitely as observed above, to meet dynamic changes, the said legislation was introduced and expanded the scope of protection that could be afforded to consumers under Indian law. Also by only means of successful implementation of this New Act, certainly there shall be creation of a new pathway in achieving the objectives and measures of the Law for the purpose of which it has been enacted thereof.

References :

1.https://blog.lawskills.in/2019/08/14/differences-between-consumer-protection-act-1986-and-consumer-protection-act-2019/

2.https://www.mondaq.com/india/dodd-frank-consumer-protection-act/838108/consumer-protection-act-2019-key-highlights