Consumer Protection Act- 2019 (Key Highlights)


Addition of ‘Item obligation’ arrangement to dissuade makers and specialist organizations from conveying blemished items or insufficient administrations;

Internet business included inside the ambit of the Consumer Protection Act.

Foundation of the Central Consumer Protection Authority (CCPA);

Improved debate goal measure with a generous expansion in the financial locale of customer assurance commissions;

An acquaintance of new extra grounds with record grumblings and inconvenience of higher punishments to hold within proper limits deceiving notices and defilement of items;


The Consumer Protection Act, 2019 (New Act) got the consent of the President of India and was distributed in the official paper on 9 August 2019. The New Act will come into power on such date as the Central Government may so advise.

This hotline intends to give an understanding into recently presented arrangements, dismember the degree, reach and effect of recently presented arrangements and give a similar investigation of a portion of the critical arrangements of CPA 2019 versus CPA 1986. It would be ideal if you click here to locate our definite investigation of the vital arrangements of CPA 2019.


  • Broadening the meaning of “customer”

The meaning of “purchaser” has been extended to incorporate people who participate in disconnected or online exchanges through electronic methods or by mail order shopping or direct selling or staggered advertising. In our exchanges deduced in all media regardless covered by CPA 1986.

The definition currently furnishes purchasers with a cure on account of staggering advertising. Hence, the dealer at each degree of staggered showcasing can be presented to risk under CPA 2019 and not limited to just the producer of the item yet all substances required at different phases of creation and advertising.

At the point when administrations are accommodated free, the individual profiting from the administration won’t be considered as a buyer. Regardless of whether the administration being given is free is an issue of actuality and should be assessed on a case-to-case premise.

  • E-trade

Internet business has been characterized as purchasing or selling of merchandise or administrations including advanced items over computerized or electronic organizations. The focal government has been approved to take measures and make rules to forestall unreasonable exchange rehearses e-commerce. For the situation of items being sold through online stages, without charging any expenses independently sums to offering types of assistance should be found out. It isn’t certain whether the seaward online business would likewise get covered and inevitable implementation of CPA 2019 qua such substances.

  • New grounds to document objections

While the arrangements of CPA 1986 endorsed six (6) significant grounds to record complaints4, CPA 2019 has expanded the check to seven (7), and furthermore considerably altered one of the current grounds to document protests as given under Section 2(c)(i) of CPA 1986. The two key changes are:

  1. Presentation of Unfair Contracts and development of Unfair Trade Practices

In the past enactment, a protest could be recorded just if an out of line exchange practice or a prohibitive exchange practice was embraced by any dealer or administration provider. Now “unjustifiable agreement” has likewise been added which further widens the ground to document grumblings and permits customers to challenge gets that are out of line, one-sided, and unreasonable. The unfair agreement has been characterized to incorporate agreements between a producer or merchant or specialist co-op on one hand, and a shopper on the other, having such terms which cause a critical change in the privileges of such purchaser, including the accompanying, in particular: —

requiring clearly extreme security stores to be given by a customer for the presentation of authoritative commitments; or

forcing any punishment on the customer, for the break of agreement thereof which is completely unbalanced to the misfortune happened because of such penetrate to the next gathering to the agreement; or

declining to acknowledge early reimbursement of obligations on the instalment of material punishment; or qualifying a gathering for the agreement to end such agreement singularly, without sensible reason; or

allowing or hosts the impact of allowing one gathering to allocate the agreement to the inconvenience of the other party who is a shopper, without his assent; or

forcing on the shopper any outlandish charge, commitment, or condition which puts such buyer to hindrance.

The above arrangements would straightforwardly affect the monetary foundations, for example, banks, as the peak court has just expressed that the Banks additionally get covered under the Act. This would explicitly consider contracts entered with banks, online business stages where gatherings are not left with any choice but rather to consent to the standard terms to benefit of the administrations. With quite a wide emotional definition, it stays not yet clear how courts would decipher on account of online agreements.

  1. Extending the meaning of “unjustifiable exchange practice”

While CPA 1986 had recorded six (6) kinds of out of line exchange rehearses, three (3) sorts of extra unreasonable exchange rehearses have now been added to the rundown which is as per the following:

Disappointment or non-issuance of a bill or a money reminder;

refusal to reclaim or pull out imperfect merchandise or withdrawal or discontinuance of inadequate administrations or refusal to discount the thought sum paid inside the period as specified in the bill or money update or receipt or without such specification, refusal to pull out or discount products or administrations inside thirty (30) days; and

Prior to finding out whether it adds up to unreasonable exchange practice, it gets applicable to decide if the merchandise or lacking administrations have been given. The part as drafted in its present structure pre-decides the presence of a damaged item or lacking help. Independently, regardless of whether removed or ended, organizations could at present be held obligated under ‘item risk’ or for ‘insufficiency of administrations’.

Divulgence of purchaser’s very own data to some other individual except if such revelation is made as per the arrangements of any law for the time being in power or in the public interest.

The arrangement neglects to give any clearness on whether data can be shared if the assent is taken from the customers. The dependence should be put on common information security law. The current information assurance law in India doesn’t need a particular consistence for information partaking on the off chance that the data isn’t in the idea of touchy data for example identifying with

  1. Passwords;
  2. Monetary data;
  3. Physical, physiological, and psychological well-being conditions;
  4. Sexual direction;
  5. Clinical records and history;
  6. Biometric data;
  7. Any detail identifying with the abovementioned, as given to a body corporate to offering types of assistance; and
  8. Any of the data got under the above by a body corporate, for preparing or putting away information under the legitimate agreement, or something else.
  • Product Liability

There was no different enactment administering ‘item risk’ in India, however, it was tended to under CPA 1986 if parties were incorporated inside the ambit of ‘shopper’. Inclusion of “Item Liability” as a different part in CPA 2019 and another ground for recording a protest has been one of the main increases to the demonstration

Area 2(35) of CPA 2019 permits an individual to make a case of item obligation against such maker, vendor, or specialist organization for such blemished items. Item risk implies the obligation of an item maker or item vendor, of any item or administration, identified with the item to make up for any damage caused to a purchaser by such inadequate item made or sold or by insufficiency in administrations identifying with the item.

Who can be made obligated:

CPA 2019 has gone a stage forward and characterized an item producer, item vendor, and item specialist co-op to give lucidity on who can be made obligated for activity under Chapter VI of CPA 2019.

Fixings to start item obligation activity:

Item producer will be at risk if an item contains an assembling imperfection, or flawed in the plan, or there is a deviation from assembling particulars, or doesn’t adjust to the express guarantee, or neglects to contain sufficient directions of right use to forestall any mischief or any admonition with respect to ill-advised or mistaken use. Nonattendance of carelessness or misrepresentation in the creation express guarantee of an item can’t be argued as a safeguard.

Item dealer who isn’t an item maker might be held at risk if:

  1. He has practiced significant authority over the planning, testing, assembling, bundling or marking of an item that caused mischief; or
  2. He has adjusted or changed the item and such modification or alteration was the generous factor in causing the damage; or
  3. He has made an express guarantee of an item free of any express guarantee made by a producer and such item neglected to adjust to the express guarantee made by the item vender which caused the mischief; or
  4. The item has been sold by him and the personality of item producer of such item isn’t known, or whenever known, the administration of notice or cycle or warrant can’t be affected on him or he isn’t dependent upon the law which is in power in India or the request, assuming any, passed or to be passed can’t be upheld against him; or
  5. He neglected to practice sensible consideration in amassing, assessing or keeping up such item or he didn’t pass on the alerts or guidelines of the item producer with respect to the threats in question or legitimate use of the item.

The item specialist organization might be at risk if

  1. the administration gave was broken or flawed or insufficient or lacking in quality, nature, or way of execution which is needed to be given by or under any law for the time being in power, or according to any agreement or something else; or
  2. there was a demonstration of exclusion or commission or carelessness or cognizant retention any data which caused mischief, or
  3. the specialist co-op didn’t give satisfactory guidelines or admonitions to forestall any damage, or
  4. the administration didn’t adjust to communicate guarantee or the terms and states of the agreement.

CPA 2019 while characterizing an ‘item’ has explicitly rejected human tissues, blood, blood items, and organs. CPA 2019 additionally records down specific exemptions for “item obligation” activity, in conditions where the items have been abused, or if the item is bought by the business for use at the working environment didn’t stick to establishment admonitions or directions, or if the idea of the item is with the end goal that the client ought to have known the related perils, and so on

  • Introduction of Central Consumer Protection Authority as the new controller

Segment 10 of CPA 2019 tries to build up a focal position, the Central Consumer Protection Authority (“CCPA”) to advance, ensure, and authorize the privileges of shoppers against misdirecting commercials and uncalled for exchange rehearses as a class. One of the essential purposes behind setting up CCPA is to make up for an institutional shortfall in the current administrative system. An insightful wing is visualized to be shaped under the aegis of CCPA, which will do requests and examinations in issues identifying with buyer rights, out of line exchange rehearses, and deceiving promotions.

Under the arrangements of CPA 2019, CCPA is ordered to do the accompanying capacities:

  • Asking into infringement of buyer rights, researching and dispatching indictment at the suitable gathering;
  • Passing requests to review products or pull out administrations that are perilous, repayment of the value paid, and cessation of the uncalled for exchange rehearses, as characterized under the pertinent arrangements of CPA 2019;
  • Issuance of bearings to the concerned merchant/maker/endorser/publicist/distributer to either stop a bogus or deluding promotion or adjust it;
  • The inconvenience of punishments, and;
  • Issuance of wellbeing notification to customers against dangerous products and ventures and rules to forestall out of line exchange rehearses spread and advance mindfulness and examination on buyer rights and suggest appropriation of worldwide agreements and best global practices on buyer rights to guarantee successful authorization of shopper rights
  • The region gatherers have additionally been enabled to lead such examinations that influence the interests of buyers as a class under CPA 2019. They can research or ask at the occurrence of a grievance or on a reference made by CCPA. The locale gatherers have likewise been given forces similar to CCPA’s nevertheless not normal for CCPA they can’t start activity suo moto. The foundation of a focal power and starting activity as a class comes as an extra method of help which can be practiced alongside singular customers recording objections to address their complaints subsequently having two equal procedures.
  • False or Deceiving Promotions

CCPA has additionally been enabled to make a move against bogus or deceiving promotions. CCPA can force a punishment of up to INR1 million, and up to INR 5 million for each ensuing infringement. It is critical to take note of that such a punishment can be forced on endorsers as well, in this way bringing entertainers/entertainers into the extent of punishment. Notwithstanding, the endorser would be absolved from any obligation if s/he sets up that they attempted due industriousness to confirm the veracity of the cases prior to supporting the equivalent. Accordingly, endorsers/entertainers/big names will likewise need to direct careful due tirelessness/research prior to pursuing any notices.

  • Deletion of Healthcare from the meaning of administrations

The CPA 2019 in its present structure doesn’t expressly indicate medical care in the rundown of administrations recorded in the meaning of ‘administration’, despite the fact that the previous rendition of the purchaser insurance bill as passed by the Lok Sabha had included it. A correction was as of late acquainted in the Parliament with eliminate medical services from the rundown of administrations (“Healthcare Amendment”) following firm resistance from the clinical club which communicated fear that the CPA 2019 would be abused against them.

Because of the Healthcare Amendment, it is hazy whether medical care as an assistance is remembered for the ambit of the CPA 2019. From one perspective, the Government has apparently expressed that the Healthcare Amendment won’t absolve medical care administrations from the domain of the CPA 2019.25 On the other hand, if medical care isn’t rejected from the rundown of administrations covered by the CPA 2019, there was no compelling reason to eliminate it from the meaning of administrations. The Supreme Court on account of Indian Medical Association v. VP Shantha (“VP Shantha Case”),26 had added medical care to the meaning of administrations under the CPA 1986. Thus, under the current shopper assurance system, a case can be brought against specialists in the event of inadequacy of administration.

Nonetheless, it is indistinct whether the VP Shantha Case will keep on applying once the CPA 2019 comes into power. The Parliament positively has the ability to topple a judgment by passing a law that adjusts the premise of the judgment, as long as such law is applied with imminent impact. When such a law is passed, the judgment stops to apply in every future case. The disarray emerges regarding whether the CPA 2019 removes the premise of the judgment in the VP Shantha Case. The Supreme Court in the VP Shantha case held that patients are purchasers as long as they are making some type of instalment for the clinical assistance delivered. The CPA 2019 doesn’t negate this finding of the Supreme Court however has intentionally prohibited medical care from the meaning of administrations. Regardless, it is yet to be seen what direction the courts will choose in the occasion they are asked to consider the inquiry of whether medical care administrations are covered by the CPA 2019 and whether the plan of the Parliament in unequivocally eliminating medical services from the rundown of administrations under the CPA 2019 will have any bearing on their choice.

  • Mediation

The CPA 2019 now accommodates settlement of questions via intercession in the event that there is a chance of settlement at the phase of confirmation of a grumbling or at any later stage, if worthy to the two players. An intervention cell will be appended to each region, state, and National Commission and its territorial Benches for a fast goal.

  • Penalties

The quantum of money related punishment, if there should arise an occurrence of disobedience of any request for commissions, has additionally been raised under the arrangements of CPA 2019. The commissions would now be able to force fines going from USD 350 to USD 1400, though prior they might have just forced fines in the scope of USD 28-USD 140.

  • Miscellaneous Provisions

Aside from the previously mentioned changes, CPA 2019 has acquainted ADR components with resolve the debates. Intervention cells have been appended to each of the three commissions. Matters will be alluded to intervention cells if the gatherings agree to it. In occasion of inability to settle the question, the particular commissions will keep on arbitrating the debate.

CPA 2019 now permits shoppers to document grumblings in the region commission where they live or work for pick up. Purchasers likewise have the alternative to record protests electronically. Nonetheless, the methodology of the equivalent will be informed by the public authority later on. There was no ban on procedures against unfamiliar gatherings under CPA 1986 and the position keeps on being the equivalent to date. Subsequently, it stays not yet clear whether seaward online stages offering types of assistance could likewise be incorporated inside the ambit of CPA 2019, by uprightness of internet business presently being explicitly included under the enactment.

A relative graph of the meaningful changes in the arrangements of CPA 1986 and CPA 201936 are recorded underneath:

S. No. Consumer Protection Act, 1986 Consumer Protection Act, 2019
1. No different controller CCPA to be framed.
2. Agreeable could be documented on a customer court premise at the site of the respondent/merchant’s office. A protest can be documented in a purchaser court where the complainant either dwells or works
3. No particular arrangement of item risk existed before. Buyers would now be able to look for pay for hurt brought about by an imperfect item or an inadequate assistance.
4. Jurisdiction

Locale: up to INR 2 million

State: INR 2 million to INR 10 million

Public: above INR 10 million


Area: up to INR 10 million

State: INR 10 million to INR 100 million

Public: above INR 100 million

5. No legitimate arrangements for intervention existed before Courts would now be able to allude to settlement through intercession.