Comparative Analysis of Consumer Protection Act 1986 and 2019

Raunaq S. Saini
Shrey Mittal
Jannat Malhotra
Table of Contents
Abstract......................................................................................................................................1
Literature Review.......................................................................................................................1
Objectives..................................................................................................................................2
Research Methodology...............................................................................................................2
Introduction...............................................................................................................................2
Discussion and Analysis..............................................................................................................3
Structure of the Act......................................................................................................................................3

Consumer Disputes Redressal Commission.................................................................................5

DISTRICT COMMISSION................................................................................................................................5
STATE COMMISION.......................................................................................................................................7
NATIONAL COMMISSION..............................................................................................................................9
PENALTIES AND OFFENSES..........................................................................................................................11

Significant Alterations under the Consumer Protection Act, 2019..............................................11

Difference between Consumer Protection Act,1986 and 2019...................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

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Abstract
The Consumer Protection Act of 1986 was beneficent legislation designed to safeguard the
rights and interests of consumers. It has established consumer courts on the local, state, and
national levels. With certain restrictions, this Act has protected consumer interests and rights
for three decades. With the introduction of the internet and new technologies, the market has
also evolved. In this digital age, consumers are increasingly prone to risk and exploitation. By
enacting the Consumer Protection Act of 2019, the legislature addresses these concerns. The
Consumer Protection Act of 1986 is repealed in order to implement the new Consumer
Protection Act of 2019 prospectively. New Act reforms were desperately required. In India,
the scope of consumer protection has been enlarged. Under the new law, consumers must be
made aware of their rights. This article analyses the 2019 Consumer Protection Act. This
article also focuses on the differences between the new Act and the Consumer Protection Act
of 1986.

Literature Review
The definition of “unfair trade practices has been broadened to incorporate e-publicizing
which is uncertain, just as declining to reclaim or pull back damaged merchandise, or to pull
back or cease lacking administrations, and to discount the thought inside the period specified
or without such specification, inside a time of thirty days.” In the article “Strengthening
consumer rights: The advent of Consumer Protection Act, 2019” by Vipan Kumar and Adya
Sharma1, it is now also illegal to reveal any personal information provided with certainty and
accumulated over the course of an exchange. The Consumer Protection Act of 2019
(hereafter referred to as the 2019 Act) has recently replaced the Consumer Protection Act of
1986. (hereafter referred to as the 1986 Act). The landmark Consumer Protection Act, 2019,
was approved on August 6, 2019. The Customer Protection Act (2019 Act) received
Presidential approval in mid-August and went into effect. This previous authorization had
been modified on occasion to ensure compliance with changes brought about by financial
advancement, globalization of business segments, and digitalization of things and
organizations. . Consumers now have easier access, more options, and more leisure to shop
thanks to the digital age. Indeed, in addition to manufacturers and service providers,
endorsers have been tasked with preventing false or misleading ads. The "Product liability"
provision introduced by the 2019 Act makes producers and distributors financially

1
Vipan Kumar & Adya Sharma, Strengthening Consumer Rights: The Advent of Consumer Protection Act,
2019, SSRN ELECTRONIC JOURNAL (2019), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3630775 (last
visited Mar 13, 2023)

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responsible for any injuries their products cause to consumers as a result of defects in
production or distribution or inadequate service. Another recently proposed concept is that of
"out of line contracts," which are intended to protect customers from singularly biased and
illogical agreements that favour manufacturers or specialized organizations. The 1986 Act
contained some significant legal flaws, which the 2019 Act seeks to correct. The 2019 Act
suggests a slew of measures and tightens the existing rules in the 1985 Act to further improve
consumer welfare.

Objectives
 What are the various parts of consumer protection act that ensure the safeguarding of
consumers in India?
 What are the different levels of consumer disputes Redressal Commission and how do
they work?
 What changes are brought in the new consumer protection act in 2019 that weren’t in
the one made in 1986?
 What are the significant changes in the old and new consumer protection act?

Research Methodology
Through reading a wide variety of research papers and case studies, we will acquire
knowledge regarding the objectives. The papers will shed light on the different opinions held
by specialists with regard to the Consumer Protection Act of 2019 and the Consumer
Protection Act of 1986. Case studies, on the other hand, will give insight on the practical
application of consumer protection laws as well as the value that these laws have to the
general public.

Introduction
For the sake of protecting Indian consumers, the government has enacted the Consumer
Protection Act, 2019. It's an updated version of the Consumer Protection Act from 1986, and
it creates national, state, and local consumer protection councils and agencies to handle
consumer disputes. The act guarantees consumers the right to seek redress for faulty products
and services and safeguards them from unfair business practices. According to the Consumer
Protection Act, the term "consumer" refers to "any person who purchases any goods or
services for a consideration," which includes the user of those products or services. The act
covers all purchases, whether for personal or business use. The act establishes the District
Forum, the State Commission, and the National Commission as three levels of redress for
consumers with complaints. These organizations are in charge of investigating and resolving

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consumer complaints and disputes, as well as prosecuting businesses that engage in deceptive
or unfair business practices. The Consumer Protection Act guarantees consumers the right to
know whether or not a product meets certain standards for quality, quantity, potency, purity,
standard, and price. It also guarantees consumers the opportunity to have their voices heard
and resolve any issues they may have had with the product or service they purchased. The
Consumer Protection Act is an all-encompassing piece of legislation with the goal of
safeguarding Indian consumers' rights and fostering an open and honest marketplace. This
article will help readers comprehend the main differences between the Consumer Protection
Act of 1986 and the Consumer Protection Act of 2019.

Discussion and Analysis

Structure of the Act

1) Preliminary: Definitions of various terms used throughout the act can be found in the
first chapter of the act. Some of these terms include consumer, complaint, unfair trade
practices, and others. In addition to this, it stipulates that the Act shall be applicable to
all products and services and calls for the establishment of consumer protection
councils and consumer disputes redressal agencies at the national, state, and district
levels.

2) Consumer Protection Councils: The formation of consumer protection councils at the

national, state, and district levels is the subject of this chapter. The councils are made
up of representatives from consumer organizations, as well as government officials,
consumer activists, and consumer rights advocates. Their job is to advocate for and
defend the rights of consumers and to offer guidance to the government on policies
pertaining to consumer concerns.

3) Consumer Disputes Redressal Agencies: The establishment of consumer disputes

redressal agencies at the district, state, and national levels is the subject of this
chapter. These organizations are in charge of resolving disputes and complaints
brought forward by customers. In accordance with the act, there are three distinct
categories of consumer disputes redressal agencies: the district consumer disputes

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 redressal forum, the state consumer disputes redressal commission, and the national
consumer disputes redressal commission.

4) Jurisdiction, Powers, and Procedure of Consumer Disputes Redressal Agencies: This

chapter provides an overview of consumer disputes redressal agencies' jurisdictions,
powers, and procedures. Complaints where both the value of the goods or services
and the compensation that is being sought is less than 20 lakhs of rupees fall under the
purview of the district forum, which has the authority to hear such cases. Complaints
where the value of the goods or services and the compensation claimed is more than
20 lakhs but less than 1 crore fall under the purview of the state commission, which
has the authority to hear such cases. When both the value of the goods or services at
issue and the amount of compensation sought is greater than one crore rupees, the
national commission has the authority to investigate the complaint.

5) Consumer Protection: This chapter deals with the rights of consumers, including the
right to be protected against unfair trade practices, the right to information about
goods and services, the right to choose, the right to be heard, the right to seek
redressal for defective goods and services, and the right to consumer education

6) Unfair Trade Practices: This chapter defines what constitutes unfair trade practices
and provides penalties for those who engage in such practices. It also provides some
background on the history of the concept. Examples of unfair trade practices include
making false representations, engaging in deceptive advertising, selling products or
services that pose a risk to consumers' lives or health, and many others. If you are
caught engaging in such activities, you could face anything from a reprimand to a fine
or even imprisonment.

7) Offences and Penalties: This chapter details the offenses that are considered to be in
violation of the act, as well as the consequences for doing so. The offenses include,
but are not limited to, failing to comply with an order issued by a consumer disputes

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 redressal agency, obstructing the work of a consumer disputes redressal agency, and
other similar offenses. If you are found guilty of one of these offenses, you could face
anything from a monetary fine to jail time.

8) Miscellaneous: This chapter includes provisions on a variety of topics, including the

authority of the central government to establish rules, the scope of the act as it applies
to contracts, and the authority of the courts to issue injunctions. In the event that a
merchant or service provider goes bankrupt, it also safeguards the interests of the
buying public to protect them from being taken advantage of.

Consumer Disputes Redressal Commission

DISTRICT COMMISSION
Each district in the state shall, on the advice of the state government, establish a district
council for the resolution of consumer disputes, also known as a district commission.

However, the state government can create more than one district council in an area if it
deems it necessary.

Each District Council is composed of a President, at least two members and a maximum
number of members which may be appointed with the consent of the Central Government.

The qualifications, manner of appointment, term of office, term of office, resignation and
removal of the chairman of the district committee are announced by the central
government in the form of a notification.

State governments can create regulations through notices detailing the president’s salary
benefits, and other terms of service. A person appointed chairman or member, as the case
may be, of a district commission before the adoption of the act shall hold that office until the
end of the term for which he was appointed.

If there is a vacancy in the District Commission or in the position of the President, the State
may notify: (a) exercise the powers of the President or other members of the District Council
specified in the notification. and perform the duties and functions of such chairman or board
member; (b) Other district commissions designated in the notification have jurisdiction over
the district.
Subject to the other provisions of this Act, the District Council is empowered to hear complai
nts if the value of goods or services received in return does not exceed Rs. ten crores.

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District commission can meet anywhere in the region, but must normally meet at the regional
headquarters, if notified by the state government in the official gazette after consultation with
the state committee. For any property sold, delivered or agreed to sell or deliver , or any
service provided , agreed to provide, any of the following persons may bring an action
against the district commission : a recognised consumer association, which the consumer
whether or not a member with the consent of the district commission; one or more consumers
who purchase , receive ,or consent to receive such goods or services to the extent that
applicable rules permit the electronic submission of complaints under this section.

Each complaint will be reviewed by the Regional Council upon receipt of the affidavit and
any necessary supporting documentation: sufficient reasons provided and substantiated in
writing. If the complaint does not require analysis or testing of the product, a decision must
be made within three months from the date of notification to the other party.

If such tests are necessary, a decision must be made within five months. If the record is
manifestly erroneous upon reading it, the Regional Board has thirty days to revise any order it
issues, either ex officio or at the request of any party. Any person who believes that a
decision of the District Council has treated him unfairly may, within 45 days of the date of
the decision, appeal such decision to the Council of State in such form and procedure as he
chooses. , on the basis of facts or legal arguments.

V.G.O. Motor Pvt. Ltd. vs Rajpal Singh & Anr. on 14 May, 2019

The petitioner, V.G.O.Motor Pvt. Ltd., has filed this revision petition in opposition to the
decision made in Appeal No. 1155/2016 by the State Consumer Disputes Redressal
Commission, Haryana (also known as "the State Commission"). The petitioner was the
opposing party No. 2 in the initial complaint.

The case's brief facts are as follows: Respondent No. 1/Complainant, who is the owner of a
car with the registration number 70H-1111, filed a consumer complaint alleging that the car's
mileage per litre was extremely low and that the engine was also emitting smoke, despite the
fact that he used to have the car serviced at authorised service centres. Finally, in May 2015,
he brought his vehicle to the petitioner. Following the inspection, he was told to install a
half-new engine, which would have cost about Rs. 25,000, and he agreed to the repairs
because he believed them. He made a payment of Rs. 25,000 using receipt no. 7522 from the

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date of May 9, 2015. The manager of the second opposing party, V.G.O. Motor Pvt. Ltd.,
contacted him after two days and informed him that the entire engine needed to be replaced
for improvement. He objected to the earlier advise, but the engine was already broken apart.
He was left with no choice but to agree to the old engine's replacement, which would cost Rs.
1,25,000. It was promised that the motor would be cutting-edge. On May 24, 2015, he was
informed that the engine had been changed and that he could now drive the car. A bill for Rs.
2,05,002 was raised, and he deposited a sum of Rs. 1,72,668. It was stated that the car would
typically get more than 20 KM per litre. After five days of driving the vehicle, the same
defect manifested, prompting him to visit the workshop of the opposing party No. 2 on May
31, 2015. Once more, he was prompted to give Rs. 337. He took the vehicle to the workshop
of the opposing party No. 2 on August 11, August 24, and September 29, but to no avail. As
the issue continued, the complainant filed complaint No. 451/2015 with the District
Consumer Disputes Redressal Forum in Faridabad (also known as "the District Forum").
Earlier than the District Forum The District Forum ordered the following via its decision
dated 03.05.2016: Opposite party No.1, M/s. Ford India, was given up, and opposite party
No.2 was heard ex-parte.-

Opposite party No.2 is directed to refund an amount of Rs.1,65,549/- and to pay Rs.5500/- as
compensation towards mental tension as well as harassment besides Rs.2200/- as litigation
expenses to the complainant within 30 days from the date of receipt of this order failing
which opposite party No.2 shall also pay interest @ 9% p.a. on the awarded amount of
Rs.1,65,549/- from the date of filing of the present complaint till its realisation."

Dissatisfied with the District Forum's decision, the petitioner filed FA No. 115/2016, an
appeal with the State Commission. The State Commission, however, denied the appeal in a
ruling dated September 1, 2017.

STATE COMMISION

The state government must give notice before establishing a state consumer complaints
appeal board, also known as a state commission. The State Commission is normally situated
in the State's capital, but may carry out its duties wherever the State Government chooses in
consultation with the State Commission and subject to publication of a notice in the official
gazette.: the state government is therefore free to select regional banks as members of the
state board of directors. Each state committee is composed of a chairman and at least four or
more members, as may be determined in consultation with the central government.

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The central government enforces regulations on qualifications, methods of appointment,
appointment procedures, term of office, right of resignation and dismissal of the chairman
and members of the state commission .State governments may, by notice, establish
regulations regarding the president's salary, benefits, and other terms of employment. Any
person appointed president or member (as the case may be) of a state commission before the
adoption of this law will continue to occupy this position until the end of his mandate. The
state will determine the types and classifications of officers and other personnel necessary to
assist state councils in carrying out their duties.

The State Government will also provide the Commission with such officials and other
personnel as it deems necessary. The officers of the State Commission and other officials
perform their duties under the direction of the State President. Employees and other
employees of the State Commission are entitled to prescribed benefits and other conditions of
service. Subject to other provisions of this Act, the State Commission shall have power. (a)
See the following complaints: complaints about unfair contracts where the value of goods or
services paid does not exceed 1,000,000. 1 million; (ii) complaints about unfair contracts
where the value of goods or services involved does not exceed rs 10,000,000.; (iii) appeal any
decision of Dis, and (b) require the recording and publication of records of any consumer
dispute and make appropriate orders where the Council of State considers that the District
Council has exercised its powers Jurisdiction not conferred by statute, failing to exercise
jurisdiction so conferred, or committing an unlawful act or material breach in the exercise of
jurisdiction.

The Bank of the state commission may exercise its jurisdiction, powers and responsibilities.
Provided the most senior member chairs the bench, the president may form a bench
consisting of such member or members as the president deems appropriate. If there is a
difference of opinion among the bench judges, the decision will be made based on that
opinion.

However, if the number of members is divided equally, they must identify one or more issues
on which they disagree and refer to the chair, who will hear the issue or hear the issue
himself or refer to one or more of them, other of several other members and rule on these
matters. However, the president or the other members of the committee, as the case may be,
must decide on the cases submitted within one month from the date of filing. Complaints
must be filed with the State Commission supervising the territory of: (a) the adverse party, or

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each adverse party, if (if there is more than one) actually and voluntarily resides, carries on a
business, owns a branch or is personally engaged in for-profit work at the time the
complaint is filed.

NATIONAL COMMISSION
The central government notified the establishment of the National Commission for the
Settlement of Consumer Disputes, the National Commission. National Committees are
normally based in the National Capital Territory, but may also operate in any other location
that the central government chooses to designate, subject to the approval of the National
Committee and publication of a notice in the Official Gazette. : provided that the Central
Government may, by notice, serve as the Regional National Committee Bank Specify a
location. The National Committee will have a President and the necessary members, but not
more than four.

The central government may make regulations governing the chairpersons and members of
the National Committee, stipulating their qualifications, appointment, term of office,
remuneration and benefits, their right to resign or be removed from office, and other terms of
service: the term of office of the President and members of the National Council are for the
central government He will serve for the period prescribed by the established rules, and will
be eligible for re-election, but not more than five years from the date of input function.
Further, once the President or a member attains the age prescribed by the rules prescribed by
the Central Government, which shall not exceed (a) 70 years for the President; and (b) age
67 for any other member, they are no longer eligible for such office.(2) The salary and
benefits of the President, as well as the other terms and conditions of service of the members
of the National Council, cannot be changed in a way that is unfavorable to him after his
appointment.

The Central Government, in consultation with the Chairman of the National Commission,
shall appoint such officials and other persons as it deems necessary to assist the National
Commission in carrying out its functions and the Consumer and Consumer Protection Act
1986 any regulations made thereunder. continue to. The request is addressed to the President
and all other members appointed before the date of entry into force of Article 177 of the
Finance Act 2017 (the Act). The officers and other employees of the organization carry out
their functions under the general direction of the president of the national committee.
National Council officers and other employees will receive salaries and benefits in addition to
any additional terms and conditions of employment that may be imposed. Pursuant to the

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additional provisions of this Act, the National Committee shall have the following powers:
(a) Consider complaints where the price paid for goods or services exceeds ten crore rupees;
but the central government may, if it deems it necessary, prescribe any other value it deems
appropriate. I am appealing the decision; (ii) Complaints about unfair contracts where the
value of goods or services paid for exceeds Rs. The bench may exercise the jurisdiction,
powers and authority of the National Committee: provided that the most senior member of
the bench act in as president. If there is a difference of opinion among the bench judges, that
opinion will be followed in decision making. The chairman shall hear the matter himself or
refer the matter to one or more other members to be heard on the matter, and such matters
shall be . However, if the members are evenly divided, they must define the issue or issues on
which they disagree. and report to the President.

However, the president or other members must comment on those points within two months
from the date of resignation.

In the case of J.J Merchant and Ors v. Shrinath Chaturvedi,

The appellants, doctors, filed Miscellaneous Petition No.53 of 2000 before the National
Consumer Disputes Redressal Commission (hereinafter referred to as the "National
Commission"), New Delhi in Original Petition No.252 of 1993, requesting that the complaint
filed for alleged medical negligence be either dismissed because, in their opinion,
complicated questions of law and facts arise and are best decided by the Civil Court, or,
alternatively, that the proceeding be stayed while it is being considered by the Civil The
Commission turned down that proposal. this allure, naturally.

In the current case, the complainant respondent filed an Original Petition with the National
Commission on August 26, 1993, claiming that his son, who was then age 21, had been
admitted to the Breach Candy Hospital in Mumbai on April 4, 1992, for a slip disc operation
because he had been experiencing back pain. Prior to that, he reportedly returned from the
United States in June 1992 after earning a degree in business management. On August 29,
1992, he passed away in the infirmary. He ascribed this to medical malpractice.

The complainant had previously submitted a criminal charge with the Mumbai Metropolitan
Magistrate for the offences covered by Sections 304-A/201 and 203 of the Indian Penal Code
before doing so with the National Commission. That case is still being prosecuted. The
Commission denied the application, ruling that there is no overarching legal principle
requiring that civil procedures be automatically stayed while criminal proceedings are

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pending. The Commission also noted that there had been an unexplained delay in moving
such an application at this point; as a result, the matter needs to be resolved as soon as
possible.

The Court gave notice of this appeal on December 7, 2001, and on January 28, 2002, it made
the following ruling: "It is argued by Mr. Ashok Desai, learned senior counsel representing
the appellants, and Mr. R.F. Nariman, the learned senior counsel representing the intervenors
that some guidelines will have to be laid down which are more precise in nature with regard
to the type of cases the Consumer Forum will not entertain, keeping in mind the deliberations
of the court and the deliberations of List in front of a Bench of Three Judges after six weeks
on a non-distribution day. No stay of the procedures will be granted in the interim.

top counsel with knowledge First, Mr. Nariman argued that the complainant should be told to
go to the Civil Court because of (a) the excessive delay in handling the complaint, (b) the
complicated legal issues and facts involved in this case, and (c) the reliance on medical
experts' opinions for resolution.

Reasons for the postponement as stated by the parties' learned counsel

a) A delay in appointing the forum or commission's chairman and its members, including the
national commission;

b) Not offering sufficient facilities;

c) A delay caused by a backlog of cases and the National Commission's or a State

Commission's single bench handling grievances;

d) A delay in the process

The first thing that needs to be thought about is whether the Consumer Forum or
Commission's delay in deciding cases would be a cause to tell the complainant to go to Civil
Court before discussing the reasons for the delay.

The resolution of the complaint has been delayed excessively in the current instance by about
nine years. The Consumer Protection Act of 1986 (hereinafter referred to as the "Act") would
be rendered completely ineffective if the learned counsel for the appellants' contention were

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to be adopted, in addition to the fact that doing so would be unfair. Fast and straightforward
resolution of consumer disputes is one of the Act's primary goals, and a quasi-judicial
apparatus is desired to be established at the district, state, and federal levels to accomplish
this. These quasi-judicial organisations have the authority to grant specific types of relief and
to compensate consumers when it is appropriate, and they are required to uphold the natural
justice principles. There are also consequences for disobeying the directives issued by the
quasi-judicial organisations. The Act was passed with the intention of providing consumers
with grievances about faulty products and subpar services with an easy, affordable, and quick
resolution. Without the Act, the charitable legislation created to safeguard a sizable group of
consumers from exploitation would be rendered ineffective. Prior to the Act, customers had
to go before the Civil Court to obtain justice for the wrongs committed against them, and it is
well known that lawsuit decisions can take years. Customers are given an alternative, quick,
and effective recourse under the Act. As a result, the Consumer forum is a substitute forum
created by the Act to carry out the duties of a Civil Court. The case would not be rejected for
this reason, and the complainant would still be instructed to go to the Civil Court.

PENALTIES AND OFFENSES

Anyone who disobeys an order issued by a central authority under Articles 20 and 21 is liable
to penalties, including fines and imprisonment for a term not exceeding six months. For any
manufacturer or service provider who permits the publication of false or misleading
advertisements to the detriment of consumers, each consecutive violation is punishable by
five years imprisonment and a fine of up to Rs 50 lakh. Any person who manufactures,
stores, sells, distributes or imports a product containing an adulterant, and if, in doing so, a)
does not cause harm to consumers, shall be punished by imprisonment for not more than six
months and by fine not exceeding not exceeding one lakh rupees; (b) causing harm not
constituting serious harm to a consumer, imprisonment for a term not exceeding one year.

(c) causing injury causing serious injury to the consumer, is liable to imprisonment for up to
seven years and a fine of up to Rs 5 lakh; (d) causing the death of the consumer, punishable
by at least seven years but which may be extended to life imprisonment and a fine of at least
Rs 1 million.

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Significant Alterations under the Consumer Protection Act, 2019
The Consumer Protection Act of 2019 is a big deal when it comes to changes to consumer
protection laws. The lawmakers tried to bring the old Act up to date so that it would work for
consumers today. Some of the changes are shown in the subpoints that follow.

(i) Pecuniary limits and other changes to consumer dispute redressal forums

The Act retains the three tiers of consumer dispute resolution forums, but raises
the pecuniary restrictions for all three.

● “District Commission (established under section 28) - Upto 1 crore (earlier 20

lakhs)”

● “ State Commission (established under section 42) - 1 crore to 10 crores (earlier

20 lakhs to 1 crore)”

● “National Commission (established under section 53) - More than 10 crores

(earlier more than 1 crore)”

(ii) Forming a regulatory body

With the Consumer Protection Act of 2019, there will be a regulator for the first time.
There will be a chief commissioner and other commissioners who constitute the
regulator. The regulator will have its own investigation arm. Here are the most
important jobs of the regulator:

 probe violations of consumers' rights or dishonest trade practises, whether on

one's own, in reaction to a complaint, or per directions from higher-ups in
government.;
 submit complaints under this Act to the District Commission, the State
Commission, or the National Commission, as appropriate.
 to take part in proceedings before the District Commission, the State
Commission, or the National Commission, as applicable, on complaints of
consumer rights violations or unfair commercial practises;
 review the issues related to consumer rights and the things that make it hard
for people to use them, as well as any protections for consumers in other laws

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 that are in effect at the time, and make suggestions for how they can be used
more effectively.
 recommend that international covenants and the best international practises on
consumer rights be put into place to make sure that consumer rights are
enforced effectively;
 conduct and encourage research in the area of consumer rights;
 raise people's consciousness of their rights as consumers;
 encourage NGOs and other institutions working on consumer rights to
collaborate and join forces with consumer protection organisations;
 As appropriate, mandate the adoption of unique and universal IDs for such
goods in order to prohibit unfair commercial practises and defend consumer
interests;
 offer warnings to consumers about harmful, hazardous, or unsafe products or
services;
 establish the appropriate rules to prohibit unfair trade practises and safeguard
the interests of consumers.

(iii) Statutory Acceptance of Alternative Dispute Resolution Procedures

The biggest issue with the Indian judicial system is the slow settlement procedure,
which forces parties to wait multiple years for their rights. The new Act proposes the
formation of Mediation cells alongside the Central Consumer Protection Authority,
taking into account the current situation of the courts in India, where citizens must
wait many years for a court's ruling. These mediation Cells affiliated to the
Commissions will expedite the resolution of consumer complaints, as the parties will
be able to approach the negotiation cells at any moment throughout the dispute.

(iv) Introduction of new concepts

The new law includes a product liability provision to guarantee the safety of
consumer goods and services. If a service or product offered by a business turns out to
be defective and infringes upon a customer's legal rights, the business that sold the
service or product must compensate the customer. As a result, vendors will be less
likely to offer flawed products, and their responsibility will increase. Unfair trade

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 contracts are now included under the scope of "unfair trade practises," which has been
expanded.

Difference between Consumer Protection Act,1986 and 2019

After looking at how the New Act is put together and some of the important changes it makes, we can
see where the Old Act and the New Act differ.

Comparison Between Consumer Protection Act, 1986 and

Consumer Protection Act, 2019

PARAMETERS 1986 Act 2019 Act

Product Liability No provisions for product Product liability provisions
responsibility existed. are included.
Unfair trade practices The scope is narrower. Only Wider in scope. Brings in
six different sorts of three fresh practices.
practises were covered.
Unfair contracts There were no clauses Including clauses for dealing
regarding unfair contracts. with unfair contracts.

E-commerce and direct There were no provisions for Provides precise regulations
selling E- commerce . for both direct selling and
electronic commerce.

Mediation There was no other dispute Provide provisions for

resolution procedure mediation cells affiliated to
provided. the National, State, and
District Commissions.
Pecuniary Limits District commission: up to District commission: up to 1
20 lakhs; State commission: crore; State commission:
between 20 lakhs and 1 between 1 crore and 10
crore; and National crores; and National

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 commission: over 1 crore. commission: over 10 crores.
Role of Central Protection The CPCs' duty was to CPCs' primary function is to
Councils advocate for and uphold the serve as advisory bodies
customers' legal concerned with the
entitlements. advancement and defence of
consumer rights.
Regulator Lack of any sort of The establishment of the
governing body. Central Consumer
Protection Authority is
authorized.
Penalties Disobeying the Those who disobey
commission's orders could commission instructions are
result in a one-month to subject to imprisonment for
three-year prison sentence, a up to three years, a fine of at
Rs 2,000–Rs 10,000 fine, or least Rs 25,000 up to Rs one
both. lakh, or both.

Conclusion
To conclude, without protecting the rights of the consumer, no business can grow. A
customer is a vital aspect of any business since he or she is the one who buys or leases goods
or services from the seller, which raises the number of jobs in the country. So, protecting the
rights of the consumer is important because globalization and rising awareness have changed
the needs and expectations of consumers. But having a lot of goods and services to choose
from can sometimes hurt the customer because not all sellers and service providers are real.
The Consumer Protection Act of 1986 was made to help people with their problems and
protect their rights. At the time, it was a good idea, and it has been changed over time. But
the law, which is 30 years old, hasn't kept up with changes in the market and modern
technology in the country. In short, there was no body in charge of making sure that people's
rights were not being violated. Now that the Consumer Protection Act, 2019 has been passed
and the Consumer Protection Act, 1986 has been thrown out, a new era of consumer rights
has started in India. The Consumer now has more power than before because of this. The
most significant aspect of the Consumer Protection Act of 2019 is that it establishes a Central

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Consumer Protection Authority to "promote, protect, and enforce consumer rights as a
group." Caveat emptor, which means "Let the buyer beware," has been replaced with Caveat
Venditor, which means "Let the seller beware," as unfair business practises and fraud
performed by the vendor will now be fined. The latest Act also makes changes to how unfair
business practices and false ads can be punished. These and other changes keep the rights of
consumers in line with how the market is changing. The maxim caveat emptor (buyer
beware!) may have been declared outdated by the new law, but it will only become genuinely
extinct when we exercise our rights.

References

https://www.researchgate.net/publication/
355984119_A_Study_on_Consumer_Protection_Act_2019_and_Its_Implications_on_the_Pil
lars_of_Integrated_Communication_Channel

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3630775

https://clap.nls.ac.in/wp-content/uploads/2021/01/CONSUMER-PROTECTION-ACT-2019-
%E2%80%93-A-REVIEW-OF-CRIMINAL-SANCTIONS-PROTECTING-CONSUMERS-
A-Nagarathna.pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3630775

https://www.legalserviceindia.com/legal/article-5309-a-study-of-consumer-rights-under-
consumer-protection-act-2019.html

https://www.researchgate.net/profile/Sheetal-Kapoor/publication/
343399260_Consumer_Protection_Act_2019_A_New_Milestone_in_Empowering_Consume
rs/links/5f281d00458515b729febde7/Consumer-Protection-Act-2019-A-New-Milestone-in-
Empowering-Consumers.pdf

https://www.researchgate.net/profile/Mehala-d/publication/
348592007_CONSUMER_PROTECTION_ACT_2019_-AN_OVERVIEW/links/
6006ac9d299bf14088a647f7/CONSUMER-PROTECTION-ACT-2019-AN-OVERVIEW.pdf

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