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

Held. The appeals were allowed and those orders set aside. Proceedings instituted before the commencement of the Act of 2019 continue before the fora corresponding to those under the Act of 1986 and are not to be transferred in accordance with the new pecuniary limits, and the National Commission was directed to continue hearing the case. The word "entertain" in sections 34, 47 and 58 means to adjudicate upon or to proceed to consider on the merits.

Why it matters here. Every case decided before 20 July 2020, and every case then pending, speaks the language of the 1986 Act, and a student must be able to read both. The old numbering is given alongside the new throughout this module.

The scheme of the Act, chapter by chapter

What the Act of 2019 added to the Act of 1986

A regulator. The Central Consumer Protection Authority, which may investigate, order recall, order refund and impose penalties for misleading advertisements, without a complaint from any consumer.

Product liability. A whole chapter making the manufacturer, the service provider and the seller answerable for a defective product.

E-commerce. The definitions cover online transactions expressly, and section 94 empowers the Central Government to take measures to prevent unfair trade practices in e-commerce.

Unfair contracts. A new head allowing a Commission to strike at one-sided contractual terms.

Mediation. A statutory mechanism with consumer mediation cells attached to the Commissions.

Wider jurisdiction rules. A complaint may be filed where the complainant resides or works, and electronic filing is provided for.

A worked example

Meenal buys a washing machine online in 2026. It never works properly, the seller ignores her, and the manufacturer says the model is discontinued.

Under the old law she would sue in a civil court for breach of contract, pay court fee on the value, and wait.

Under this Act she is a consumer, because she bought goods for consideration and not for resale or a commercial purpose; the fault is a defect; the seller's refusal to repair is a deficiency in service; she may complain to the District Commission where she resides; she may file electronically; the Commission may order replacement, refund and compensation; and the Central Consumer Protection Authority may act against the seller's advertising even if she does nothing.

If her complaint had been filed before 20 July 2020, Neena Aneja would keep it before the forum in which it was instituted.

What it does NOT mean

It does not abolish the suit. A consumer may still sue, and section 100 preserves other remedies, as chapter [Offences and Penalties under the Consumer Law] notes.

It does not cover every buyer. A person who buys for resale or for a commercial purpose is outside, subject to the livelihood exception.

It does not require proof of negligence for every claim. Defect and deficiency are defined in terms of the standard required or promised.

The figures in sections 34, 47 and 58 are not the figures in force.

Quick revision

1. The Consumer Protection Act 2019 is Act 35 of 2019, and it replaced the Act of 1986.
2. Most provisions came into force on 20 July 2020, and the Central Authority provisions on 24 July 2020.
3. Section 107 repeals the 1986 Act and saves what was done under it; section 106 is the power to remove difficulties.
4. Neena Aneja v. Jai Prakash Associates Ltd, 16 March 2021: cases instituted before 20 July 2020 stay in the forum where they were filed.
5. Eight chapters: definitions, Councils, the Central Authority, the Commissions, mediation, product liability, offences, miscellaneous.
6. New in 2019: a regulator, product liability, e-commerce, unfair contracts, mediation, and wider jurisdiction.
7. The pecuniary figures in the Act are not the figures in force.

Test yourself

1. Why was the Consumer Protection Act 2019 enacted, and what did it add to the law? Because the ordinary remedies were useless for small claims: a suit in contract or tort costs more than the goods, takes years and demands proof a buyer cannot obtain, and the rule of caveat emptor placed the risk of quality on the person least able to judge it. The Act of 1986 answered with a cheap, quick and summary forum, and the Act of 2019 replaced it with a wider scheme. It added the Central Consumer Protection Authority, a regulator that may investigate, order recall and refund and penalise misleading advertisements without waiting for a complaint; a chapter on product liability making manufacturers, service providers and sellers answerable; express provision for e-commerce, including the power in section 94 to make measures preventing unfair trade practices online; a head of unfair contracts; statutory mediation; and wider rules of jurisdiction allowing a complaint where the complainant resides or works and permitting electronic filing.

2. When did the Act come into force, and what happened to cases pending under the old Act? Most of the Act, including the definitions in part and the provisions on Councils, Commissions, mediation, product liability and the miscellaneous chapter, came into force on 20 July 2020 by notification S.O. 2351(E) of 15 July 2020; the provisions establishing the Central Consumer Protection Authority, sections 10 to 27, came into force on 24 July 2020 by notification S.O. 2421(E) of 23 July 2020. Section 107 repealed the Act of 1986 while saving what had been done under it. As to pending cases, Neena Aneja v. Jai Prakash Associates Ltd, decided on 16 March 2021, held that proceedings instituted before 20 July 2020 continue before the fora corresponding to those under the old Act and are not transferred to accord with the new pecuniary limits, and it set aside the National Commission's contrary direction.