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Project On Consumer Protection Act, 2019

This document provides an overview of consumer protection laws in India. It discusses the historical journey of consumer protection from ancient times through the British colonial period and post-independence. Key milestones include the Consumer Protection Act of 1986, which established consumer rights and a three-tier system of consumer courts, and the Consumer Protection Act of 2019, which expanded the scope of the law to cover e-commerce and direct selling. The document also defines what constitutes a consumer and unfair trade practices under the 2019 Act. It summarizes the rights afforded to consumers under Indian law, including the rights to safety, information, choice, being heard, seeking redress, and consumer education.
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100% found this document useful (1 vote)
3K views15 pages

Project On Consumer Protection Act, 2019

This document provides an overview of consumer protection laws in India. It discusses the historical journey of consumer protection from ancient times through the British colonial period and post-independence. Key milestones include the Consumer Protection Act of 1986, which established consumer rights and a three-tier system of consumer courts, and the Consumer Protection Act of 2019, which expanded the scope of the law to cover e-commerce and direct selling. The document also defines what constitutes a consumer and unfair trade practices under the 2019 Act. It summarizes the rights afforded to consumers under Indian law, including the rights to safety, information, choice, being heard, seeking redress, and consumer education.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LEGAL ASPECTS OF BUSINESS

Course Coordinator: Dr. Sanjay Kumar

Trimester VI Project
(Consumer Protection Act 2019)

Jeebak Dutta Choudhury (Roll No. 05)


Indian Institute of Foreign Trade, Kolkata
MBA (IB) KOL 2019-22

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TABLE OF CONTENTS

1. Introduction

2. Comprehensive Definitions of Consumer & Unfair


Trade Practice

3. Journey of Consumer Protection.

4. Consumer Protection Act in India

5. Consumer Protection in the World

6. Factors that contributed & influenced Consumer


Protection in India

7. Consumer Protection Act 2019

8. Key Issues & Analysis

9. Legal Procedure for Consumer Protection in India

10. Conclusion

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INTRODUCTION

The concept of consumer protection is a thought as old as human civilization. Protecting the
buyers’ interests is amongst the prime considerations of the business. According to Mahatma
Gandhi, consumer is giving an opportunity for the businesspersons to serve him, he is the
ultimate purpose of the business, and we can even go to the extent of saying that according to
certain interpretations of some Indian traditions a customer/consumer is equivalent to God.
However, the profit motive of the marketers, sellers and dealers is resulting in consumer
exploitation through deceitful and immoral market practices.

Consumer Protection is a socio-economic day-to-day activity that is to be carried out by


government and business with a prime objective of protecting interests of consumers and
their fair satisfaction. It is the prime responsibility of the government to protect the rights and
interest of consumers through formulating suitable policies, laws and administrative
framework. Different acts and laws were incorporated to protect the consumers. But
Consumer Protection Act 1986 (CPA 1986) is considered as a milestone in the history of
India for consumers right. Later the Consumer Protection Act, 1986 is repealed after three
decades and replaced by the Consumer Protection Act, 2019. The Consumer Protection Act,
2019 has been enacted with a view to widen the scope of consumer rights and cover the field
of e-commerce, direct selling, tele-shopping and other multi levels of marketing in the age of
digitization.
The Act came into force on 20th July 2020. This act aims at revamping the settlement and
administration process by imposing stricter penalties.

Comprehensive Definitions and More Protection to Consumers

• Who is a 'Consumer' under the 2019 Act?


As per Section 2(7) of the 2019 Act, consumer is any person who buys goods or avails any
service for a consideration and includes any user except for the person who has availed such
services or goods for the purpose of resale or commercial use. The explanation to the
definition specifically states that the expression "buys any goods" and "hires or avails any
services" includes all online transactions conducted through electronic means or direct selling
or teleshopping or multi-level marketing. Online transactions is an exclusive feature of this
act and added keeping in mind the growing e-commerce business and advancement in
technology.
• What is an 'Unfair Trade Practice' under the 2019 Act?
Section 2 (47) of the Consumer Protection Act, 2019 defines 'unfair trade practice'. The
definition of 'unfair trade practice' has been broadened to include practices such as:

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1. Manufacturing or offering spurious goods for sale or adopting deceptive practices for
providing service,
2. Not issuing proper cash memo or bill for the services rendered and the good sold,
3. refusing to withdraw, take back or discontinue defective goods and services and refund the
consideration taken thereof within the time period stipulated in the bill or within 30 days if
there is no such provision in the bill,
4. Disclosing personal information of the consumer to any other person not in accordance
with the prevailing laws.
The repealed Act of 1986 did not include online misleading advertisements in the definition
of unfair trade practice that were added in the 2019 Act.

JOURNEY OF CONSUMER PROTECTION

Consumer protection in India has been a part of its culture and civilization. The Consumer
protection in India can be studied with reference to the four main historical periods viz.
Ancient, Medieval, during the British time and Post-Independence.

Consumer Protection in Ancient India


The concept of consumer protection against unscrupulous, unfair and unethical malfunction
practices and safeguarding the interest of consumers was a part of Indian culture, business
and administration for centuries in the ancient times. References to it can be seen in Ancient
Indian Dharmas like Manu Smriti (800 BC- 600 BC), The YajnavalkyaSmriti (300 B.C. - 100
B.C), The NaradaSmriti (100 A.D.- 200 A.D.), The Brihaspatismriti (200A.D.- 400 A.D.) In
the KatyayanaSmriti (300 A.D.- 600 A.D) were explained the living conditions of the people
of that time and were basis on the Dharma to be followed at that time. They were even the
premise for the system that is being followed currently. In India, Manu Smriti was one of the
most influential texts that dealt with various consumer matters. Arthashastra of Kautilya is
considered as one of the oldest and a very effective book on trade and commerce in ancient
India. Kautilya (Chanakya ) has mentioned different punishments to be given to sellers who
involve themselves in different kinds of exploitations, and wrong measures. The consumer
protection was a common part of the ancient laws.

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Medieval period and Pre-independence
During the medieval period Muslim kings who ruled India, like Alauddin Khilji, Sher Shah
Suri, and Akbar etc., thought about protecting the shoppers and consumers and they enacted
strict laws for the same. They introduced weights, measures standardization process.

The modern and British times


British rulers combined the previous customs and culture (dharma) with a unified nationwide
system that had similarities with the laws already enacted in Britain. (Prasad, 2008).

They introduced Acts like:


• The Indian Penal Code, 1860
• Carriers Act, 1865 Law of Tort
• The Indian Contract Act, 1872
• Sale of Goods act 1930
• The Agricultural Product (Grading & Marking) Act, 1937
• The Drugs and Cosmetics Act, 1940

Post-Independence
After independence, many laws were enacted in India for safeguarding innocent customers
from unfair and restrictive trade practices sort of a false and dishonorable description
regarding the character and quality of the goods exaggerated statements concerning their
power and efficiency, false weights and measurements and obstruction of capital and
resources into the stream of production. The Acts that were enacted and covered the whole of
the Republic of India are given below-
• The Drugs Control act, 1950
• The Industries (Development and Regulations) Act, 1951
• The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954
• The Prevention of Food Adulteration Act, 1954
• The Essential Commodities Act, 1955
• The Trade and Merchandise Marks Act, 1958
• The Monopolies and Restrictive Trade Practices Act, 1969, Compition Act 2002
• The Cigarettes (Regulation of Production, Distribution, and Supply) Act, 1975
• The Standards of Weights and Measures Act, 1976

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• The Prevention of Black Marketing and Maintenance of Supplies of Essential
• Commodities Act, 1980
• The Standards of Weights and Measures (Enforcement) Act, 1985
• The Bureau of Indian Standards Act, 1986

But of these Acts weren't as effective, focused and did not cater to needs all sections of the
population. There was a need for a focused and strong law to ensure for better protection of
the interests of shoppers and consumers and to save them from the evils of unfair trade
practices and for this the Protection Act -1986 was enacted by Indian Government. The
various amendments in this Act unto 2019 give it more teeth and power to consumers but do
not tamper with the basic spirit of the Act of 1986.

CONSUMER PROTECTION ACT IN INDIA

In India the movement was initiated as a ‘social force’ to safeguard and encourage the
interests and rights of the consumers. But the Consumer Protection Act in 1986 gave it a legal
authority with the declaration of six consumer rights that time . Separate government
departments of consumer affairs for consumer were set up and three tier system of consumer
courts at national, state and district levels. The movement has already progressed a lot in
spreading consumer awareness but is still facing some of the problems such as:
• The consumer redressal system is becoming difficult, expensive and time-consuming.
• Evidence is not easy to gather as cash memos are not issued for most of the purchases.
• The existing laws are not very clear about the issue of compensation to consumers
injured by defective products.

As codified under the Indian Laws the Consumers have the following Rights:
o Right to Safety— to protect against hazardous goods and products.
o Right to be informed— about price, quality, purity, Quantity, etc.
o Right to choose— access to a variety of goods and services at competitive prices.
o Right to be Heard— consumers’ interest and welfare must be taken care of rights.
o Right to seek Redress— protection against unfair trade practices and settling genuine
grievances.
o Right to Consumer Education— Knowledge about goods and issues related to
consumers.

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MAJOR PROVISION IN CONSUMER PROTECTION ACT

The first Bill to protect the consumers rights, passed after Independence India was Drug
Control Act 1950. It was implemented by Industries & manufacturing sector
(Development and Regulation) act, 1951, The Indian Standards Institution (Certificate
Marks) Act 1952, Drugs, and Magic Remedies (Objectionable Advertisements) act 1954.
Though these acts were intended to protect consumers, these acts did not achieve the desired
results and its was not too effective..

• Prevention of Food and Adulteration Act, 1954


It was the Prevention of Food and food products Adulteration act 1954 that was made every
attempt to protect the consumers. There were detailed provisions for analysis of food,
Quality, Quantity, giving warranty by manufacturers, distributors and dealers, the disclosure
of names by the vendors, food poisoning, the summary trial of cases, forfeiture of property,
etc. The Act was enacted to eradicate the anti-social people & food processor of food
adulteration and ensure purity. The central government of India and all state governments
framed rules with regard to Central Food Laboratory, Standard of quality, public analysts and
inspectors, ceiling, fattening and dispatch of samples, Manufacturing process, coloring
matter, packing and labeling of foods, prohibition and regulating sales, conditions for sale
and license, preservative, poisonous metals, and solvent-extracted oils and edible flour etc.
After implementation of this Act, Essential Commodities Act was enabled to extend to
control the production, supply, and distribution of certain essential commodities.

• MRTP Act, 1969


Another important measure taken by Indian government to protect the consumers was
Monopoly in market and Restrictive Trade Practices Act (MRTP Act) 1969. It was passed by
Parliament (Lower & Upper House ) on the recommendations of Mahalanobis Committee
Report, 1954, Justice K C Gupta Commission Report, 1965. It came into enforcement on 1st
June 1970. The Act was enacted in order that there wouldn't be any concentration of
economic power as a results of financial system operations, and prohibition of Monopoly and
restrictive trade practices. To accomplish the aims and objectives, there were provisions for
the establishment of MRTP commission to enquire into monopolistic and restrictive trade
practices and to grant a temporary injunction and compensation. The Act was amended in
1982, 1984, 1985 and 1986.

• Other Acts
The legal relationship and disabilities between the buyer (Consumer) and seller were by and
large regulated by Law of Contract (1872) and Sale of Goods Act (1930). Consumers were
unable to avail these acts when they had some grievances related to product. Law of Torts
and Provisions of IPC 1980 were also applied to protect consumers rights. After
Independence, there were around 40 legislations were enacted or strengthen to protect the

7
consumers interests, which included some of the British laws. But because of inadequacy in
their implementation and improper coverage of consumer’s rights and redressal through the
prevailing civil court system was cumbersome, lethargic and defendant, none of them could
able to protect the consumers against exploitation.

CONSUMER PROTECTION IN THE WORLD

The trend of the globalization is market driven by new technologies and advances in product
selling and repair delivery and is that the continued retreat of Governments in several nations
from ancient sorts of regulation the market place. during this regard Foreign Direct
Investment (FDI) is a crucial tool within the Economic development of the state. Indian retail
sector is one amongst the foremost necessary sectors that carry nice potential for attracting
FDI. Entry of worldwide retailers is anticipated to own direct impact on consumer similarly
as mortal. it's expected to bring down trade goods costs of the mortal. Massive scale and high
volume sourcing and technology fringe of international retailers facilitate in realizing bigger
operational potency and wide assortment of products at lower costs could also be created
obtainable to consumer. Food-safety hygiene and quality area unit price additions. Over 60
percent of the wastage are often prevented if specialized cold storage chains area unit
designed according to need. However, aggressive opposition parties from all states of India
raised voice and alleged that client shall profit because of selection quality and accessibility
of wide merchandise. However, it's feared that within the end of the day consumer might
ought to face the chance of high costs, substandard quality and restricted choices once these
huge retailers quiet down well in Indian market. however it's additionally true that FDI in
retail trade also will facilitate in desegregation the fashionable Indian retail market thereupon
of worldwide retail market however at constant time legal and administrative unit and robust
mechanism is critical to confirm that huge retailers don't dislocate little retailers by unfair
suggests that. However, uniform restrictive structure has to be started with reference to taxes
and duties as regards trendy retail sector.
In 1962, former America President John F Kennedy declared four basic client rights –
• the proper to safety;
• the proper to be informed;
• the proper to decide on and also

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• the right to be detected.
His declaration issued a license for the world’s client teams that have swollen since then to
replicate the necessity of consumer within the market. The rules were developed to:
• Assist countries to attain and maintain adequate protection for shoppers
• Encourage moral conduct within the market
• Encourage the event of market conditions which give shoppers with bigger alternative at
lower costs
After intensive international consultation, world organization General Assembly adopted few
world organization tips for consumer Protection in April 1985, and updated in 1999.
The eight rights listed below area unit the work of consumer teams and lots of government
client affairs agencies round the world.
• Right to satisfaction of Basic wants
• Right to Safety
• Right to be told
• Right to decide on
• Right to be detected
• Right to Redress
• Right to client Education
• Right to Healthy setting
It acted as a tool for the nations to support consumer protection. At the international level this
has become the muse for consumer movement. These days 245 organizations from over one
hundred twenty countries have come back up and united underneath one body named
consumer International.
▪ United Nations Guide lines over consumer rights.
Formal consumer protection Acts were initial created within the western a part of the globe
attributable to the patron movement that flourished within the USA and Europe throughout
early twentieth century. Prince Philip Kotler (1972) known 3 phases of the patron movement
within the USA.
• The first section was in early 1900’s wherever yank government passed bills like
• Pure Food and Drug Act (1906),
• The Meat examination Act (1906) and also
• The Creation of Federal Trade Commission (1914).
The second wave of consumerization in mid-1930’s attributable to improvement in consumer
costs in thick of Depression, the sulfa Scandal, and Motor City House wives strike and also
the third is attributable to factors like structural conduciveness, structural strains, growth of a

9
generalized belief, causative factors, mobilization for action and group action. Ralph Nader
gave consumerism a boom in 1960’s. The international consumer movement reached its peak
in most countries in late 1960’s. In 1962 president, John F. Kennedy declared the patron
rights that symbolized consumerism. Client movement unfold to Japan, UK, Belgium,
Denmark, France, European nation, Norway, and Kingdom of Sweden. However, the
consumer in developing and developed countries were victims of the economic process. In
July 1981, the Secretary-General of UN was requested to continue previous consultations on
client protection by the Economic and Social Council of UN (ECOSOC) with the aim to
following, inter alia, the elaboration of general tips with a special thought of wants of
developing nations. In 1982, a group of draft tips was submitted to the Governments of
member countries for comment. A report with revised set of tips was submitted to Economic
and Social Council by the Secretary-General in might 1983. On 9 April 1985, General
Assembly of UN adopted these set of general tips for client protection nemine contradicente
and requested the Secretary-General to publicize them to the parties of interest. These tips
were primarily supposed for member countries, particularly for developing and freshly
freelance nations per “Javier Pérez American state Cuéllar”, The UN Secretary General, these
draft tips represent initial arrange to produce associate degree international framework inside
that national client protection policies and measures may be found out.

THE FACTORS THAT CONTRIBUTED AND INFLUENCED THE


CONSUMER PROTECTION ACT

Though there were a series of legislative measures undertaken after Independence in India,
the consumers had not been protected to the extent desired. A Private Bill for consumer
protection law was introduced but failed in the Parliament house in the year 1977 (CUTS
report, 2001). Lokpal and Lokayukta were set up, after the suggestions of Administrative
Reforms Commission headed by Morarji Desai Former Prime Minister, to resolve the
grievances of Indian citizens .The law Commission of India, in its 105th Report on Quality
Control and Inspection of Consumer goods, October 1984 (Law Commission Report 1984),
under the Chairmanship of KK Mathew, suggested that we need to establish a much better
system to safeguard the patron interests while not the patron being driven to initiate pricey
and presumably long drawn out judicial proceeding. During the same period, Madhya
Pradesh State Government had introduced “Madhya Pradesh Consumer Protection Bill 1984”
which was the outcome of an intensive and analytical study by Consumer Protection Sub-
Committee of Madhya Pradesh Law Commission. The Bill had a provision to establish State
Institute of Consumer Education Research and Training, State Fair Trade Practices Forum
and Consumer Prices Review Commission. It additionally projected a State action beneath
Unified Comprehensive shopper Code. The bill proposed legal protection to community
activists and award punitive damages to those who were the victims of unfair trade practices.

10
The bill was intended to make inroads to achieve social and economic goals where it could
not act directly. The bill also proposed to establish councils at District, City and Village and
ward levels to collect information and a Consumer Ombudsman, who could recommend on
policy and research, and additionally to recommend on Laws and publications on Safety and
Standards. The Prime Minister’s 20-point formula was one of the significant aspects in
Consumer Protection, which was the brainchild of then Prime Minister Shri. Rajiv Gandhi.
Initially, 20-point program was structured by Mrs. Indira Gandhi in 1975, restructured in
1982. The same was upgraded by Shri Rajiv Gandhi to enhance the productivity of Indian
Economy and to accelerate the upliftment of weaker sections. Consumer Protection was the
eighteenth purpose among the socio- economic aspects represented therein program.

CONSUMER PROTECTION BILL & ACT 2019

• This Bill replaces the CPA, 1986. The Bill enforces consumer rights, and provides a system
for redressal of complaints regarding defect & fraud in goods and deficiency in services.
• Consumer Dispute Redressal Commissions will be set up at the district level, state level and
national level for adjudicating consumer complaints easily.
• This Bill maintain a Consumer Protection system to investigate consumer complaints, issue
a safety notices for goods, Products& services, and pass orders for recall of goods and against
misleading advertisements in society.
• If a consumer suffers an injury from a defect in a goods, they may file a claim of product
liability against the manufacturer. The consumer must establish 7 conditions in order to prove
such a claim.
• The Bill classifies six contract terms as ‘unfair’.
These cover terms such as
(i) Payment of excessive security deposits;
(ii) Disproportionate penalty for a breach ;
(iii) Unilateral termination without cause;
(iv) One, which puts the consumer at a disadvantage.

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Consumer Rights
Under the Act, consumers have six main rights, which are listed as follows:
• the right to be protected against the marketing of goods, products or services which are
hazardous to life and property;
• the right to be informed about the quality, quantity, potency, purity, standard and price of
goods, products or services, as the case may be, so as to protect the consumer against unfair
trade practices;
• the right to be assured, wherever possible, access to a variety of goods, products or services
at competitive prices;
• the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate fora;
• the right to seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers; and
• the right to consumer awareness.

KEY ISSUES AND ANALYSIS


The Bill empowers the central government to supervise the functioning of, and issue binding
directions to the district, state and national consumer redressal commissions. This could have
an effect on the independence of those quasi-judicial bodies.
• A District Magistrate rank officer, who is part of the executive, may head the District
Commission, a quasi-judicial body. This could violate the principle of separation of powers
between the judiciary and government.
• The National Commission of consumer protection act headed by a judicial member and
comprising at least 15 technical or judicial members, who will examine complaints on
questions of law. This could contradict a Supreme Court judgment that questioned the ability
of such technical members.
• In order to claim products or goods liability, a claimant must establish four kinds of defects
in the product, the injury caused from it, and that it belonged to the manufacturer. The
applicant should additionally establish that the manufacturer had information of such a
defect. It may be argued that the conditions to ascertain a product liability claim area unit
unreasonable.
• The Bill defines goods liability to include defects in goods and deficiency in services.
However, the conditions to be evidenced to say product liability don't embrace conditions for
services. It is unclear however a client will claim product liability for deficiency in services
below the Bill.

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LEGAL PROCEDURE OF CONSUMER PROTECTION ACT IN INDIA.
Justice System for Consumers
Establishment of Central Consumer Protection Authority
Under the Act of 2019, a Central Consumer Protection Authority (CCPA) was established
with a view to regulate matters involving violation of consumer rights, misleading or false
advertisements, unfair trade practices and enforcement of consumer rights. The Central
Government will appoint the members of the CCPA. The authority will consist of a Chief
Commissioner along with other such prescribed members.
The 2019 Act specifies the functions of the CCPA and who will appoint its members.
However, there is ambiguity as to how the CCPA will perform its functions and what
methods will it adopt to achieve its functions. There is also no specification of qualification
for the recruitment of the members of the CCPA. Further, the appointment of members of the
CCPA by the Central Government will affect the independence of the authority. The
consumer may be at a disadvantage in a dispute where the government has provided deficient
services.
Penalties for Misleading Advertisement
Misleading and false advertisements is one of the many aspects that were introduced by the
2019 Act. The repealed Act did not deal with the concept of misleading and false
advertisements. Misleading advertisement is defined under Section 2(28) of the Act and
includes any advertisement, which gives false description of a product or service, gives false
guarantee misleading the consumers, and conveys express representation constituting unfair
trade practice and deliberately not revealing essential information about the product.
Under Section 21(4) of the Act, any person who publishes false and misleading
advertisements may be punished with imprisonment or a penalty that may extend up to ten
lakh rupees. Further, Section 21 (3) states that the CCPA can prevent the endorser of any
such misleading and false advertisements from endorsing any other products or services for a
period of one year. The issuer of any misleading advertisements shall also be liable to
neutralize the effect of such advertisements.

Product Liability
Product Liability is one of the remarkable and significant steps incorporated in the 2019 Act.
An entire chapter under the Act is dedicated to deal with this concept.
A complainant can bring a product liability action against any product manufacturer or
service provider or a seller in case any harm is suffered by him due to a defective product or
service.
1. A product manufacturer will be held liable under Section 84 of the Act in case the
product has a manufacturing defect, defective in design, does not follow the manufacturing
specifications, does not conform to implied warranty and does not contain adequate
instructions for proper usage of the product.

13
2. Section 85 of the Act discusses the liability of the service provider in a product liability
action. To be liable under this section, the service provided shall be deficient, faulty, and
inadequate or imperfect, an act or negligence withholding any information responsible for the
harm caused, without adequate warnings and instructions and without conformation to
express warranty or contractual terms.
3. A product seller will be liable in a product liability action if there is exercise of substantial
control over manufacturing, testing, designing, labelling or packaging of the product. There
was substantial alteration or modification responsible for the harm caused. The product seller
made express warranty that does not conform to the warranty made by the manufacturer. The
product seller failed to take reasonable care in maintaining, assembling or inspecting the
product.

Exceptions
There are certain exceptions to product liability action as well. These exceptions are
discussed in Section 87 of the 2019 Act. Any consumer who himself misuses, alters or
modifies the product and suffers harm as a result, cannot file a product liability claim.2 A
consumer cannot bring product liability action in case the product manufacturer has given
adequate warnings for use of the product, the product purchased was used as a part of another
product and the end use caused damage, the product was supposed to be used under an
expert's supervision or the product was used under alcohol influence.3 A product
manufacturer will not be liable for not warning about any danger that is commonly known or
obvious.

Consumer Dispute Redressal Forums


Jurisdiction
1. Territorial Jurisdiction: A complainant can now file a complaint where he resides or works.
The repealed Act only allowed the complainant to file a complaint where the opposite party
carries out business or resides. This caused a lot of difficulties to the complainants.
2. Pecuniary Jurisdiction: The pecuniary jurisdiction will now be determined on the basis of
the consideration paid for the value of goods purchased and services availed, rather than the
compensation claimed as per the repealed Act of 1986. The pecuniary jurisdiction limit has
also been increased for the various commissions under the 2019 Act. The District
Commission will now deal with cases of up to Rs. 1 Crore, up from Rs. 20 lakhs as per the
repealed Act. The State Commission's pecuniary jurisdiction limit has been fixed between
Rs.1 Crore to Rs.10 Crores and the National Commission will deal with cases with pecuniary
limit of Rs.10 Crores or more.
Alternate Dispute Resolution
If it appears to the Consumer Dispute Redressal Forum that the consumer dispute can be
settled by way of mediation, it may refer the parties to mediation with their consent. For the
purpose of mediation, the State Government shall establish a consumer mediation cell for
each District Commission and State Commission. The Central Government shall establish a

14
consumer mediation cell attached to the National Commission. The consumer mediation cell
will be responsible for maintaining a list of empanelled mediators, cases handled by the cell,
record of proceeding and other information by specified regulations.
E-Complaints
Section 17 of the Act provides that a complaint regarding unfair trade practice, violation of
consumer rights or misleading and false advertisements can be filed in electronic mode also
to the District Collector, the Regional Office Commissioner or the Central Authority.
In spite of certain lacunas in the Act, the Consumer Protection Act, 2019 is a positive step
towards development and reformation of consumer laws in the country.

Conclusion
Conclusively, 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 2019 Act also deals with the technological advancements in
the industry, provides for easier filing of complaints and imposes strict liability on businesses
including endorsers for violating the interest of the consumers.

However, the test of time will prove the fate of the 2019 Act as and when it is notified by the
Central Government, which, prima-facie, appears to be much more consumer-friendly than
the 1986 Act and also includes the current industry trends of e-commerce.

15

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