Why a Consumer Law, and the Scheme of the Act of 2019

In one line

The Consumer Protection Act 2019 gives a buyer of goods or services a quick and cheap remedy before a Commission, in place of a suit.

In the wording a student can write in an exam: the Consumer Protection Act 2019, Act 35 of 2019, was enacted to provide for the protection of the interests of consumers and to establish authorities for the timely and effective administration and settlement of consumer disputes; it replaced the Consumer Protection Act 1986, which section 107 repeals while saving what was done under it; and it added a regulator, the Central Consumer Protection Authority, a chapter on product liability, provisions on e-commerce and unfair contracts, and mediation.

Why the ordinary law was not enough

A buyer with a defective refrigerator has, in theory, a claim in contract against the seller and possibly one in tort against the manufacturer. In practice a suit costs more than the refrigerator, takes years, and requires proof the buyer cannot get. The doctrine of caveat emptor, let the buyer beware, made things worse, because it put the risk of quality on the person least able to judge it.

The consumer law answers with four things: a forum that is quick and cheap, a procedure that is summary, a definition of the wrong that does not require proof of fault in the ordinary sense, and a regulator that can act without waiting for a complaint.

Commencement and repeal

Section 1 provides for the short title, extent, commencement and application. The Act extends to the whole of India, and different dates could be appointed for different provisions and States.

The dates, taken from the Act's own footnotes. Most of the Act, including sections 2 in part, 3 to 9, 28 to 73, 74 to 81, 82 to 87, 90, 91, 95, 98, 100 to 103, 105, 106 and 107, came into force on 20 July 2020, by notification S.O. 2351(E) of 15 July 2020. The provisions relating to the Central Consumer Protection Authority, sections 10 to 27 and the connected clauses, came into force on 24 July 2020, by notification S.O. 2421(E) of 23 July 2020.

Section 107 repeals the Consumer Protection Act 1986 and saves anything done or any action taken under it, and provides that mention of particular matters shall not prejudice the general application of section 6 of the General Clauses Act 1897 to the repeal.

Section 106 is the ordinary power to remove difficulties within two years.

What the repeal did to pending cases

Facts. Neena Aneja v. Jai Prakash Associates Ltd, decided on 16 March 2021. A complaint had been instituted before the National Commission under the Act of 1986. After the Act of 2019 came into force on 20 July 2020 with higher pecuniary limits, the National Commission directed the pending case to be filed before the forum having jurisdiction under the new Act.