The Consumer Protection Act, 2019 — Key Features

The Consumer Protection Act, 2019 replaced the earlier Consumer Protection Act, 1986, and came into force in 2020. It was written to address gaps the older law had never anticipated — most of all, the rise of e-commerce — and to make redressal faster and more consumer-friendly. Its key features, beyond the widened definition of "consumer" already covered in Section 2 of this chapter, are:

1. Central Consumer Protection Authority (CCPA). The 2019 Act's biggest institutional change is the creation of the CCPA, a dedicated regulatory authority — headed by a Chief Commissioner — to promote, protect and enforce the rights of consumers as a class, rather than only case by case. The CCPA can act on a complaint, on a reference from government, or entirely suo motu (on its own motion). Its powers include:

• investigating violations of consumer rights and unfair trade practices, including search and seizure;
• ordering the recall of unsafe goods or the discontinuation of unfair services;
• directing refund of the price paid, or withdrawal of the goods/service;
• prohibiting a person from continuing an unfair trade practice or a false/misleading advertisement; and
• imposing penalties on manufacturers and endorsers for false or misleading advertisements — including barring a celebrity endorser from endorsing that product for a period, in addition to a monetary penalty, for repeated offences.

2. Product liability. For the first time, the Act creates a clear product liability chapter: a product manufacturer, product service provider or product seller can be made liable to compensate a consumer for any personal injury, property damage or death caused by a defective product or a deficient service related to a product — for example, a manufacturing defect, a design defect, a failure to give adequate instructions or warnings, or a breach of an express warranty. This gives an injured consumer a direct claim without having to separately prove ordinary negligence in every case.

3. E-commerce rules. Alongside the Act, the Consumer Protection (E-Commerce) Rules, 2020 apply to every e-commerce entity carrying on business in India — both the inventory-based model (the platform itself owns and sells the goods) and the marketplace-based model (the platform hosts other sellers). E-commerce entities must, among other duties: display accurate seller details, country of origin, and a clear return/refund/exchange/warranty policy; appoint a grievance officer for consumer complaints; and refrain from manipulating prices or search rankings, running false or misleading advertisements, or discriminating between consumers in an unfair manner.

4. Mediation as an alternative route. The Act adds mediation as a voluntary, faster alternative to a full Commission hearing. With the consent of both parties, a dispute can be referred — at any stage — to a consumer mediation cell attached to the relevant Commission, aiming at an amicable settlement instead of an adversarial order. …