"UNDERSTANDING THE CONSUMER PROTECTION ACT, 2019: A SHIELD FOR INDIAN CONSUMERS"

By: -        Natasha Rocha is a 4th year BBA LLB Law student, studying at  ISBR Law College affiliated to Karnataka State Law University.

In a country as vast and diverse as India, consumer transactions occur every second — whether it's purchasing groceries online, booking a flight ticket, or enrolling in a professional course. With this increasing interaction between businesses and consumers, protecting consumer interests becomes paramount. To ensure this protection, India revamped its consumer laws and introduced the Consumer Protection Act, 2019, replacing the earlier 1986 law.

The new Act marks a significant step in recognizing and empowering consumers in the digital age. Let’s dive deep into its origins, key features, benefits, and why it’s essential for every Indian citizen to be aware of their rights under this law.

Why Was the New Act Needed?

The original Consumer Protection Act, 1986 was landmark legislation that brought consumer rights to the forefront. However, it was drafted in a time when e-commerce, online banking, and digital advertising were non-existent or negligible. With the explosion of online transactions and new forms of service delivery, the legal system needed to catch up.

Thus, the Consumer Protection Act, 2019 was enacted to:

• Address modern consumer grievances.

• Regulate e-commerce.

• Introduce stricter penalties for misleading advertisements and unfair trade practices.

• Streamline the dispute redressal process.

It came into effect on July 20, 2020.

Who is a Consumer?

As per Section 2(7) of the Act, a consumer is a person who:

• Buys any goods or hires/avails any service for consideration (paid or promised, partly paid and partly promised, or under any system of deferred payment).

• Includes both offline and online transactions.

• Does not include a person who obtains goods or services for resale or commercial purposes.

This definition ensures that even digital buyers and app users are covered under the law.

Features of the Consumer Protection Act, 2019

1.    Consumer Rights

The Act recognizes six consumer rights, including:

• Right to be protected against hazardous goods/services.

• Right to be informed about the quantity, quality, purity, standard, and price.

• Right to choose from a variety of goods/services.

• Right to be heard at appropriate forums.

• Right to seek redressal against unfair trade practices.

• Right to consumer education.

These rights form the foundation of consumer empowerment in India.

2.    Establishment of the Central Consumer Protection Authority (CCPA)

One of the most significant additions is the creation of the CCPA, a regulatory body with powers to:

• Inquire into consumer complaints.

• Take action against misleading advertisements and unfair trade practices.

• Impose penalties.

• Order recall of dangerous goods/services.

• File class-action suits.

This body ensures that there is proactive regulation in addition to consumer-initiated redress.

3.    Simplified Dispute Redressal Forums

The Act establishes a three-tier consumer grievance redressal mechanism:

• District Commission (up to ₹50 lakh)

• State Commission (₹50 lakh to ₹2 crore)

• National Commission (above ₹2 crore)

What’s more:

• Consumers can file complaints online and from their place of residence.

• Hearings can be conducted via video conferencing.

• There is provision for mediation to resolve disputes amicably.

This makes the entire process more accessible and consumer-friendly.

4.    E-commerce and Digital Consumer Protection

For the first time, the law explicitly brings e-commerce platforms within its scope. Key provisions include:

• Mandatory disclosure of seller information (address, refund policy, etc.).

• Prohibition of unfair trade practices like fake reviews or hidden charges.

• Platforms must ensure grievance redressal officers are appointed.

This step was crucial to ensure that digital consumers are not left vulnerable.

5.    Product Liability

Another major innovation is the introduction of product liability, which means a manufacturer, seller, or service provider can be held responsible for harm caused by a defective product or deficient service.

Three categories of liability are recognized:

• Manufacturer Liability

• Service Provider Liability

• Seller Liability

This provision empowers consumers to hold even large manufacturers accountable.

6.    Penalties for Misleading Advertisements

The Act takes a strict stance on false advertising:

• Endorsers (like celebrities) can be held liable for misleading promotions.

• Penalties include fines up to ₹10 lakhs and bans on endorsements for up to 1 year (first offense), and ₹50 lakhs and 3 years for subsequent offenses.

This encourages responsible advertising and protects consumer trust.

Benefits to the Common Consumer

The Consumer Protection Act, 2019 empowers everyday citizens in numerous ways:

Ease of Filing Complaints – No need to travel or hire expensive lawyers.

Accountability of E-commerce – Online buyers have clear rights and remedies.

Quick and Tech-enabled Hearings – Minimizing long delays in justice delivery.

Mediation Option – Avoid litigation altogether through amicable settlements.

Broad Definition of Unfair Practices – Covers bait advertising, fake reviews, coercive selling, etc.

Landmark Cases Under the New Act

Since its implementation, several important cases have emerged:

• E-commerce refund delay: Customers filed complaints about non-delivery or delayed refunds, and companies like Amazon and Flipkart were directed to comply with consumer rules.

• False health claims in ads: Supplement companies and endorsers were warned for promoting unverified medical benefits.

These cases set strong precedents for fair play in the market.

Challenges and Future Outlook

Despite its progressive provisions, the Act still faces challenges:

• Awareness: Many consumers are still unaware of their rights.

• Backlog: Consumer forums still suffer from case overload.

• Implementation: Some provisions, like strict regulation of celebrity endorsements, need stronger enforcement.

However, with consistent use, technological advancements, and greater legal awareness, this law has the potential to transform consumer-business relationships in India.

Conclusion

The Consumer Protection Act, 2019 is a landmark reform that puts power back into the hands of Indian consumers. It bridges the gap between traditional consumer protection and the demands of the digital economy. Whether you’re ordering a pizza online or subscribing to an OTT service, you now have a legal safety net.

As a consumer, knowing your rights is your first step toward empowerment. And as a seller or service provider, compliance is not just a legal requirement — it’s a commitment to fairness and trust.

Because in today’s India, the consumer is not just king — they are protected by law.

Date: 04th August 2025