19. INTRODUCTION TO THE CONSUMER PROTECTION ACT

Written and reviewed by Dr. Saint Paul | Pharm.D Graduate from JNTUK | Pharmacy Educator and D.Pharmacy Academic Content Creator

Earlier, the protection of rights and interests of consumers was governed by the Consumer Protection Act, 1986. However, due to some flaws in the Act with respect to the changed scenario, the existing Act was required to be replaced by a new Act. Consequently, a new bill for the Consumer Protection Act, 2019 was passed by the president on 6th August, 2019. The most important objective was to resolve various consumer complaints pending in consumer courts throughout the country.

  1. To create the Central Consumer Protection Authority (CCPA) to promote, defend, and uphold consumer rights.
  2. To conduct investigations for consumer rights violations.
  3. To recall products or services that are dangerous.
  4. To stop deceptive advertising and unfair business practices.
  5. To penalise producers, distributors, publishers, or endorsers for misleading advertisements.
  • Investigating activities that violate consumer rights
  • Filing complaints/prosecution
  • Passing orders for recalling unsafe goods and services
  • Passing orders for discontinuation of unfair trade practices and misleading advertisements
  • Imposing penalties on manufacturers/endorsers/publishers of misleading advertisements
  • Right to Safety
  • Right to be Informed / Right to Representation
  • Right to Choose
  • Right to be Heard
  • Right to Seek Redressal
  • Right to Consumer Education
  • Covers all E-Commerce Transactions: Includes online, teleshopping, electronic mode, direct selling, multi-level marketing.
  • Prohibition and Penalties for Misleading Advertisements: Fine and imprisonment for 2 years (first offence); fine up to ₹50 lakh and imprisonment up to 5 years (repeated offence).
  • Consumer Disputes Redressal Commission (CDRC): At national, state, and district levels.
  • Alternate Dispute Resolution: Simpler and quicker dispute dissolution.

According to Consumer Protection Act, 2019, “Consumer” means any person who:

  • Buys any goods for consideration (paid, promised, deferred payment) and includes any user of such goods with approval (does NOT include person obtaining goods for resale or commercial purpose).
  • Hires or avails any service for consideration (paid, promised, deferred payment) and includes any beneficiary of such service with approval (does NOT include person availing service for commercial purpose).
  • Right to Safety: Protection against products that may harm health, property, and life (e.g., low quality food, appliances made of low quality raw material, spurious drugs).
  • Right to be Informed/Right to Representation: Right to possess all information regarding product quality, quantity, price, potency, date of manufacture, method of use.
  • Right to Choose: Right to select any product or service from available goods/services without unfair influence.
  • Right to be Heard: Right to file complaint against any party prejudicial to consumer interest.
  • Right to Seek Redressal: Right to receive compensation against unfair trade practices (refund, repair, replacement, etc.).
  • Right to Consumer Education: Right to get education about rights available in case of loss due to defective goods/services.
  • Consumer Ignorance: Educates consumers about their rights and interests.
  • Widespread Exploitation of Consumers: Protects from unfair and fraudulent trade practices.
  • Unorganised Consumers: Provides protection for consumers spread unevenly across India.
  • Long-Term Business Interest: Satisfied customers lead to long-term business growth.
  • Regulation Benefits: Maintaining trust and goodwill.
  • Ethical Practices: Promotes ethical business practices and fair competition.
  • Composition: President + 2 members (one woman)
  • Jurisdiction: Value of goods/services + compensation claimed ≤ ₹20 lakhs
  • Appeal: To State Commission within 30 days
  • Composition: President + at least 2 members (one woman)
  • Jurisdiction: Value of goods/services + compensation claimed > ₹20 lakhs but < ₹1 crore; also hears appeals from District Commission
  • Appeal: To National Commission within 30 days
  • Composition: President + at least 4 members (one woman)
  • Jurisdiction: Value of goods/services + compensation claimed > ₹1 crore; also hears appeals from State Commission
  • Appeal: To Supreme Court of India
CommissionMonetary JurisdictionCompositionAppeal To
District Commission≤ ₹20 lakhsPresident + 2 members (1 woman)State Commission (30 days)
State Commission> ₹20 lakhs < ₹1 crorePresident + at least 2 members (1 woman)National Commission (30 days)
National Commission> ₹1 crorePresident + at least 4 members (1 woman)Supreme Court
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