Page |1

DR. SHAKUNTALA MISRA

NATIONAL
REHABILITATION UNIVERSITY

Lucknow

Faculty of Law

PROJECT ON

‘Salient Features of Consumer Protection (Amendment) Act, 2019’

For

COURSE ON LAW OF CONSUMER PROTECTION

CLASS: B.Com., LL.B (Hons.) 9th Semester

Submitted by

SHUBHAM PAL

B.Com.LL.B/2016-17/06

Roll NO-164140064

Under the Supervision of

MR. BHANU PRATAP SINGH SIR

Faculty of Law

Dr. Shakuntala Misra National Rehabilitation University

ACKNOWLEDGEMENT
 Page |2

I would like to express my special thanks of gratitude to my teacher MR.

BHANU PRATAP SINGH who gave me the golden opportunity to do
this wonderful topic “Salient Features of Consumer Protection
(Amendment) Act, 2019” which also helped me in doing a lot of
Research and I came to know about so m any new things I am really
thankful to them.
 Page |3

TABLE OF CONTENT

1. Introduction…………………………………………………….04

2. Key highlights of amendments act, 2019…………................05-07

3. Salient Features of Act…………………………………...….08-12

4. Conclusion……………………..………………………………13

5. Bibliography….………………………………………………..14
 Page |4

Consumer Protection (Amendment) Act, 2019

Consumer Protection Bill, 2019

The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the

Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas

Paswan on July 8, 2019. The Bill replaces the Consumer Protection Act,

1986.

Who is a Consumer?

A consumer is defined as a person who buys any good or avails a service

for a consideration. It does not include a person who obtains a good for

resale or a good or service for commercial purpose. It covers transactions

through all modes including offline, and online through electronic means,

teleshopping, multi-level marketing or direct selling.

Key Highlights of the Amendment Act, 2019

1. SIMPLIFIED DISPUTE RESOLUTION PROCESS

o Pecuniary Jurisdiction enhanced to-

 District Commission –Up to Rs1 crore

 State Commission- Between Rs1 crore and Rs

10 crore

 National Commission –Above Rs.10 crore

o Deemed admissibility after 21days of filing

 Page |5

o Empowerment of Consumer Commission to enforce

their orders

o Appeals only on question of law after second stage

o Ease of approaching consumer commission

o Filing from place of residence

o E-filing

o Videoconferencing for hearing

2. CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)

While the sector regulators essentially serve as standard setting bodies

and seek to ensure an even playing field between Government and other

stakeholders. It is an Executive Agency to provide relief to a class of

consumers. Swift executive remedies are proposed in the bill through

CCPA

 The CCPA will be empowered to promote, protect and enforce

the rights of consumers as a class

 CCPA would make interventions to prevent consumer detriment

arising from unfair trade practices.

 The agency can also initiate class action, including enforcing

recall, refund, return of unsafe products, goods and services and

impose penalties.
 Page |6

 It will regulate matters related to violation of consumer rights,

unfair trade practices, adulteration of products and misleading

advertisements.

 Provisions for deterrent punishment to check misleading

advertisements and

 Authority will have power to impose a penalty on a

manufacturer or an endorser of up to 10 lakh rupees and

imprisonment for up to two years for a false or misleading

advertisement.

 Presently Consumer only have a single point of access to justice,

which is time consuming. Additional swift executive remedies

are proposed in the bill through Central Consumer Protection

Authority (CCPA)

3. MEDIATION

 An Alternate Dispute Resolution (ADR) mechanism

 Reference to Mediation by Consumer Forum wherever scope for

early settlement exists and parties agree for it.

 Mediation cells to be attached to Consumer Forum

 No appeal against settlement through mediation

4. PRODUCT LIABILITY
 Page |7

A manufacturer or product service provider or product seller to be

responsible to compensate for injury or damage caused by defective

product or deficiency in services.

The Basis for product liability action will be:

 Manufacturing defect

 Design defect

 Deviation from manufacturing specifications

 Not conforming to express warranty

 Failing to contain adequate instruction for correct use

 Services provided are faulty, imperfect or deficient

NEW REMEDIES FORMULATED

 envisages simplified dispute resolution process, has provision

for Mediation and e-filing of cases.

 exclusive law dealing with Product Liability. A manufacturer or

product service provider or product seller will now be

responsible to compensate for injury or damage caused by

defective product or deficiency in services. Product liability

provision to deter manufacturers and service providers from

delivering defective products or deficient services.

 Page |8

 The Bill also enables regulations to be notified on E-commerce

and direct selling with focus on protection of interest of

consumers.

 a provision for class action law suit for ensuring that rights of

consumers are not infringed upon.

Set out below are some of the Salient Features of the

Consumer Protection (Amendment) Act, 2019

1. Covers E-Commerce Transactions:

The New 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, teleshopping, direct selling or

multi-level marketing. The earlier Act did not specifically include e-

commerce transactions, and this lacuna has been addressed by the New

Act.

2. Enhancement of Pecuniary Jurisdiction:

 Revised pecuniary limits have been fixed under the New Act.

Accordingly, the district forum can now entertain consumer

complaints where the value of goods or services paid does not exceed

INR 10,000,000 (Indian Rupees Ten Million). The State Commission

 Page |9

can entertain disputes where such value exceeds INR 10,000,000

(Indian Rupees Ten Million) but does not exceed INR 100,000,000

(Indian Rupees One Hundred Million), and the National Commission

can exercise jurisdiction where such value exceeds INR 100,000,000

(INR One Hundred Million).

3. E-Filing of Complaints:

 The New Act provides flexibility to the consumer to file complaints

with the jurisdictional consumer forum located at the place of

residence or work of the consumer. This is unlike the current practice

of filing it at the place of purchase or where the seller has its

registered office address. The New Act also contains enabling

provisions for consumers to file complaints electronically and for

hearing and/or examining parties through video-conferencing. This is

aimed to provide procedural ease and reduce inconvenience and

harassment for the consumers.

4. Establishment of Central Consumer Protection Authority:

The New Act proposes the establishment of a regulatory authority

known as the Central Consumer Protection Authority (CCPA), with

wide powers of enforcement. The CCPA will have an investigation

wing, headed by a Director-General, which may conduct inquiry or

 P a g e | 10

investigation into consumer law violations. The CCPA has been

granted wide powers 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.

5. Product Liability & Penal Consequences:

The New Act has introduced the concept of product liability and

brings within its scope, the product manufacturer, product service

provider and product seller, for any claim for compensation. The term

'product seller' is defined to include a person who is involved in

placing the product for a commercial purpose and as such would

include e-commerce platforms as well. The defense that e-commerce

platforms merely act as 'platforms' or 'aggregators' will not be

accepted. There are increased liability risks for manufacturers as

compared to product service providers and product sellers, considering

that under the New Act, manufacturers will be liable in product

liability action even where he proves that he was not negligent or

fraudulent in making the express warranty of a product. Certain

exceptions have been provided under the New Act from liability
 P a g e | 11

claims, such as, that the product seller will not be liable where the

product has been misused, altered or modified.

6. Unfair Trade Practices:

The New Act introduces a specific broad definition of Unfair Trade

Practices, which also includes sharing of personal information given

by the consumer in confidence, unless such disclosure is made in

accordance with the provisions of any other law.

7. Penalties for Misleading Advertisement: 

The CCPA may impose a penalty of up to INR 1,000,000 (Indian

Rupees One Million) on a manufacturer or an endorser, for a false or

misleading advertisement. The CCPA may also sentence them to

imprisonment for up to 2 (two) years for the same. In case of a

subsequent offence, the fine may extend to INR 5,000,000 (Indian

Rupees Five Million) and imprisonment of up to 5 (five) years. The

CCPA can also prohibit the endorser of a misleading advertisement

from endorsing that particular product or service for a period of up to

1 (one) year. For every subsequent offence, the period of prohibition

may extend to 3 (three) years. The New Act fixes liability on

endorsers considering that there have been numerous instances in the

recent past where consumers have fallen prey to unfair trade practices
 P a g e | 12

under the influence of celebrities acting as brand ambassadors. In such

cases, it becomes important for the endorser to take the onus and

exercise due diligence to verify the veracity of the claims made in the

advertisement to refute liability claims.

8. Provision for Alternate Dispute Resolution:

The New Act provides for mediation as an Alternate Dispute

Resolution mechanism, making the process of dispute adjudication

simpler and quicker. This will help with the speedier resolution of

disputes and reduce pressure on consumer courts, who already have

numerous cases pending before them.

With the New Act all set to become the law, gone are the days, where the

'consumer was asked to beware'. A consumer is now the one who

assumes to be treated like a King. Hence, it is important for consumer

driven businesses (such as, retail, e-commerce) to be mindful of the

changes in the legal landscape and have robust policies dealing with

consumer redressal in place. Consumer driven businesses must also strive

to take extra precautions against unfair trade practices and unethical

business practices.
 P a g e | 13

Conclusion

We can say that Consumer Protect Act, 2019, the process of drafting was

started in 2010 is one of the sincerest steps taken by the central

government for enhancing consumer rights and speedy delivering of

justice. The new Act touches on may aspects such as Mediation and E-

commerce which the world was unaware in 1986. So, it was important to

amend the act when digitalization has changed the way a consumer

conduct online transactions and mode of shopping has shifted from

offline to online. Certainly 2019 Act is a positive step towards

reformation, development and enhancing consumer rights. Socio-

economic developments are taking place every year and e can aspect new

amendments to 2019 act as well. But the real implementation of 2019 Act

will be seen in coming times by analyzing how much relief it offers to the

consumers.  
 P a g e | 14

Bibliography

1. https://www.latestlaws.com/articles/consumer-protection-act-2019-

analysis-and-challenges-for-future/

2. https://www.barandbench.com/columns/consumer-protection-act-2019-

enhancing-consumer-rights

3. https://www.mondaq.com/india/dodd-frank-consumer-protection-

act/838108/consumer-protection-act-2019-key-highlights

4. https://static.pib.gov.in/WriteReadData/userfiles/PIB%20Delhi/CPA

%202019-%20PPT-20%20July,%202020.pdf