Consumer Protection Act
The existing Consumer Protection Act, 1986 provide for protection of the rights of the consumers. Under the provisions of the said Act, a three tier quasi-judicial mechanism, called Consumer Fora, has been established at the District, State and National levels to provide simple, inexpensive and speedy redressal to consumer disputes.
- Besides, the Department of Consumer Affairs runs a National Consumer Helpline to deal with consumer grievances.
- Also, six zonal consumer helplines at Bengaluru, Ahmedabad, Jaipur, Patna, Kolkata and Guwahati have been set up to attend to the consumer grievances in regional languages.
| S.No. | Basis | Consumer Protection Act, 1986 | Consumer Protection Act, 2019 |
| 1 | Ambit of law | All goods and services for consideration, while free and personal services are excluded | All goods and services, including telecom and housing construction, and all modes of transactions (online, teleshopping, etc.) for consideration. Free and personal services are excluded |
| 2 | Unfair trade practices (Defined as deceptive practices to promote the sale, use or supply of a good or service) | Includes six types of such practices, like false representation, misleading advertisements | The new Act adds three types of practices to the list, namely: failure to issue a bill or receipt; refusal to accept a good returned within 30 days; and disclosure of personal information given in confidence, unless required by law or in public interest. Contests/ lotteries may be notified as not falling under the ambit of unfair trade practices. |
| 3 | Product liability | No Provision | Claim for product liability can be made against manufacturer, service provider, and seller. Compensation can be obtained by proving one of the several specified conditions in the Act. |
| 4 | Unfair contracts | No Provision | Defined as contracts that cause significant change in consumer rights. Lists six contract terms which may be held as unfair. |
| 5 | Central Protection Councils (CPCs) | CPCs promote and protect the rights of consumers. They are established at the district, state, and national level. | The new Act makes CPCs advisory bodies for promotion and protection of consumer rights. Establishes CPCs at the District, State and National Level. |
| 6 | Regulator | No Provision | Establishes the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce the rights of consumers as a class. CCPA may: issue safety notices; pass orders to recall goods, prevent unfair practices, and reimburse purchase price paid; and impose penalties for false and misleading advertisements. |
| 7 | Pecuniary jurisdiction of Commissions | District: Up to Rs 20 lakh; State: Between Rs 20 lakh and up to Rs one crore; National: Above Rs one crore. | District: Up to Rs one crore; State: Between Rs one crore and up to Rs 10 crore; National: above Rs 10 crore. |
| 8 | Composition of Commissions | District: Headed by current or former District Judge and two members. State: Headed by a current or former High Court Judge and at least two members. National: Headed by a current or former Supreme Court Judge and at least four members. | District: Headed by a president and at least two members. State: Headed by a president and at least four members. National: Headed by a president and at least four members |
| 9 | Appointment | Selection Committee (comprising a judicial member and other officials) will recommend members on the Commissions. | No provision for Selection Committee. Central Government will appoint through notification. |
| 10 | Alternate dispute redressal mechanism | No Provision | Mediation cells will be attached to the District, State, and National Commissions |
| 11 | Penalties | If a person does not comply with orders of the Commissions, he may face imprisonment between one month and three years or fine between Rs 2,000 to Rs 10,000, or both. | If a person does not comply with orders of the Commissions, he may face imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs one lakh, or both. |
| 12 | E-commerce | No Provision | Defines direct selling, e-commerce and electronic service provider. The central government may prescribe rules for preventing unfair trade practices in e-commerce and direct selling. |
