The Consumer Protection Act, 2019 replaced the 1986 Act to address modern consumer challenges in India's digital economy. Enforced from July 20, 2020, it strengthened rights against unfair trade practices, introduced e-commerce accountability, and established a three-tier redressal system (District, State, National Commissions). Key upgrades include:
Expanded consumer rights (right to safety, information, choice)
Strict penalties for misleading ads and product defects
Mediation as an alternative dispute mechanism
Central Consumer Protection Authority (CCPA) for regulatory oversight
The Act aligns with global standards while addressing emerging issues like online shopping frauds and data privacy.
Bare Act Key Provisions (Excerpts)
1. Definitions (Section 2)
Consumer: Buys goods/services for personal use (excludes commercial purposes).
E-commerce: Includes online marketplaces (Amazon, Flipkart).
2. Rights (Section 2(9))
Protection against hazardous products
Right to seek redressal for unfair contracts
3. Redressal Commissions
District Commission (Section 28): Claims up to ₹1 crore
State Commission (Section 42): Appeals against District orders
National Commission (Section 58): Claims exceeding ₹10 crore
4. Penalties (Section 21, 89)
False advertisements: Up to ₹50 lakh fine + 5-year imprisonment
Product liability: Compensation for harm caused by defects
5. Mediation (Section 74)
Voluntary settlement through consumer mediation cells
Impact & Relevance
The 2019 Act:
✓ Covers digital transactions and telecom services
✓ Imposes stricter seller/manufacturer liability
✓ Expedites dispute resolution (90-day deadline for complaints)