Let’s know the changes in Consumer Law: 1986 vs 2019

Changes In Consumer Law -The law for consumer protection was first enacted in the year 1986 i.e. Consumer Protection Act 1986. The law came as a beneficial piece of legislation for the class of consumers. The act was enacted with an object to protect the rights and interests of the consumers. However, the new Consumer Protection Act, 2019 replaced. On August 06, 2019, the Parliament passed the bill 2019. The act came into force on July 20, 2020. The new act replaced the decades older 1986 act and is more consumer-friendly. In this article, we’ll focus on some of the major changes in the new act.

Definition of Consumer

Changes in Consumer Law- The scope of definition in the new act has widened. The definition now also includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing.

Thus the definition covers e-commerce transactions within the purview of this act.

• Definition of Deficiency: The definition in the new act covers any act of negligence or omission or commission by a person which causes loss or injury to the consumer and intentional hiding of relevant information by such person to the consumer.
• Definition of Person: The new definition has cleared the ongoing confusion and it has made it clear that the word person is inclusive of any corporation, company or a body of individuals. Whether it is incorporated or not and any artificial juridical person, not falling within any of the preceding sub-clauses.
• Consumer Rights: The new act has defined 6 rights for the consumers.
• right of protection against the marketing of hazardous goods, products or services;

Rights

• right to information about the quality, quantity, potency, purity, etc. to protect the consumer against unfair trade practices;
• the right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices;
• the right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate fora;
•  right to redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and
• the right to consumer awareness.
• Grounds for complaint: Under Section 2(c) of the new act, there has been an addition of a new ground for complaint and now a consumer can claim product liability against manufacturer, seller or service provider, depending upon the facts.
• Unfair contract: The concept of unfair contract was not provided in the old act. The new act covers the concept of unfair contract and also defines unfair contract under.

section 2(46)

Changes in Consumer Law (section 2(46))

Unfair trade practices: In the 1986 act, there were only six (6) types of unfair trade practices, but the 2019 legislation has added three more types of unfair practices to the list under section 2(47) of the 2019 act.

Product Liability: The concept of “product liability” is a newly introduce concept and basically means that the manufacturer, seller or provider of goods or service should held liable to compensate for the harm cause to any consumer due to defective product manufacture, sold or deficiency in services relating thereto. Manufacturers, sellers and service providers can be held liable for the claim of product liability. For obtaining compensation, one needs to prove one of the several conditions given in the Act.

Central Consumer Protection Council:

 Section 10 of the 2019 act seeks to establish a central authority, the Central Consumer Protection Authority (“CCPA”) to promote, protect, and enforce the rights of consumers from misleading advertisements and unfair trade practices. The main reason for establishing CCPA is to deal with the institutional void in the existing regulatory regime. The act also creates an investigation wing; that is to formed within CCPA to carry out inquiries and investigations to protect consumer rights.

False or misleading advertisements: CCPA also has the power to take action against  false or misleading advertisements. The actions can taken against the endorsers as well, hence the actors/actresses can also be held liable within the same. However, the endorser would relieve from any liability if s/he establishes that they undertook reasonable measures to verify the truthfulness and veracity of the claims before endorsing the same.

Increase in the pecuniary jurisdictions: 

The new act has increased the pecuniary jurisdictions for the commissions. They are as follows:

1. District- up to Rs. 1 crore

2. State- From 1 crore to 10 crores

3. National- above Rs. 10 crore

Mediation: The 2019 act also has a provision regarding settlements of disputes by way of mediation in case there is a chance of settling the dispute at the stage of admission of a complaint or at any later stage, if acceptable to both parties.

Penalties: The Act has also given way for a set of penalties to deal with misleading advertisements, that ranges from INR10 lakhs with imprisonment up to two years to INR 50 lakhs with imprisonment up to five years. Failure to comply with the directions given by the CCPA for recall of goods and withdrawal of services shall attract imprisonment for a term which may extend to six months or with a fine which may extend to INR 20 lakhs.

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