1. Key Institutional Framework
A. Central Consumer Protection Authority (CCPA)
This is the most significant addition under the 2019 Act. Unlike the old Act, which was reactive (redressal-based), the CCPA is a regulatory body with proactive powers.
- Establishment: July 2020, under the Ministry of Consumer Affairs, Food & Public Distribution.
- Powers:
- Investigate violations of consumer rights (via an Investigation Wing).
- Suo-moto (on its own) inquiry into unfair trade practices.
- Recall unsafe goods/services and order refunds.
- Impose penalties for misleading advertisements (up to ₹10 lakh and 2 years imprisonment for first offense; ₹50 lakh and 5 years for subsequent).
- Ban endorsers (celebrities) of misleading ads from endorsing any product for up to 1 year (3 years for repeat).
B. Consumer Disputes Redressal Commissions (CDRCs)
A 3-tier quasi-judicial machinery exists at the District, State, and National levels.
| Tier | Pecuniary Jurisdiction (2021 Rules Update) |
| District Commission | Up to ₹50 Lakh |
| State Commission | ₹50 Lakh to ₹2 Crore |
| National Commission | Above ₹2 Crore |
2. Core Concepts & Rights
Consumer Definition & Rights
- Who is a Consumer?
Anyone who buys goods or avails services for consideration. It explicitly includes online transactions, tele-shopping, and direct selling.
- Who is NOT?
Those who obtain goods for resale or commercial purposes (unless for self-employment livelihood), or those who get goods/services free of charge.
- 6 Statutory Rights:
- Right to Safety
- Right to be Informed
- Right to Choose
- Right to be Heard
- Right to seek Redressal
- Right to Consumer Awareness.
Product Liability
A new concept where a manufacturer, service provider, or seller is liable to compensate a consumer for any harm caused by a defective product or deficient service.
- Scope: Covers manufacturing defects, design defects, and lack of adequate usage instructions.
3. Key Process
- Territorial Jurisdiction: Consumers can now file complaints where they reside or work, not just where the opposite party’s office is located (crucial for e-commerce).
- E-Daakhil: Facility for electronic filing of complaints.
- Mediation: The Act provides for Alternate Dispute Resolution (ADR) through Mediation Cells. There is no appeal against a settlement reached through mediation.
- Unfair Contracts: State and National Commissions can declare “unfair contracts” (e.g., excessive security deposits or unilateral termination clauses) as null and void.
4. Differences: 1986 vs. 2019 Act
| Feature | 1986 Act | 2019 Act |
| Regulator | No separate regulator | CCPA established |
| E-commerce | Not covered | All rules apply to E-commerce |
| Jurisdiction | Where seller has office | Where complainant resides |
| Product Liability | Civil court matter | Under Consumer Commissions |
| Adjudication | Only through CDRCs | CDRCs + Mediation |
Q. Consider the following statements regarding the Consumer Protection Act, 2019:
1. It establishes a Central Consumer Protection Authority (CCPA) with the power to recall unsafe goods suo-moto.
2. Under the Act, a consumer can file a complaint at a commission where he/she resides.
3. Healthcare is explicitly excluded from the definition of "services" under the Act.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
Answer: (a)
Explanation:
Statement 1 Correct:
● Explanation: The 2019 Act created the Central Consumer Protection Authority (CCPA) as a regulator. Unlike the old Consumer Courts, the CCPA can act "suo-moto" (on its own motion), meaning it doesn't need a formal complaint to investigate violations, recall dangerous products, or cancel misleading advertisements.
Statement 2 Correct:
● Explanation: This is a major "Ease of Justice" shift from the 1986 Act, where cases had to be filed where the seller's office was located. This change is specifically designed to empower consumers in the E-commerce era, allowing you to sue a company from your home district regardless of where their headquarters are.
Statement 3 Incorrect:
● Explanation: Healthcare was in the draft bill but was dropped from the final text to avoid political friction. However, the Supreme Court (reconfirmed in late 2024/2025) has ruled that since the definition of "service" is inclusive and does not explicitly exclude it, medical services remain under the CPA (except for free services).
