Differences between the Consumer Protection Act 1986 and the Consumer Protection Act 2019

Learn about the key differences between the Consumer Protection Act 1986 and the Consumer Protection Act 2019 and how they impact consumers in India.

The Consumer Protection Act (CPA) is a legislation that provides for the protection of consumers’ interests in India. The first CPA was enacted in 1986, and it has since undergone several amendments to keep up with the changing needs of consumers. In 2019, the Indian government introduced a new CPA, which replaced the earlier one. In this article, we will explore the key differences between the Consumer Protection Act 1986 and the Consumer Protection Act 2019.

Differences between the Consumer Protection Act 1986 and the Consumer Protection Act 2019

Definition of Consumer:

The definition of a consumer under the Consumer Protection Act 1986 was limited to a person who buys goods or services for their own use or for use by another person. The definition excluded persons who buy goods or services for commercial purposes. In contrast, the definition of a consumer under the Consumer Protection Act 2019 includes persons who buy goods or services for commercial purposes, as long as the goods or services are purchased for use in the course of their business.

Central Consumer Protection Authority (CCPA):

The Consumer Protection Act 2019 has introduced the concept of a Central Consumer Protection Authority (CCPA). The CCPA is a regulatory body that has been empowered to promote, protect and enforce the rights of consumers. The CCPA has the power to investigate, recall, and ban products or services that are found to be harmful to consumers. It also has the power to impose penalties on manufacturers and service providers who violate consumer rights.

Consumer Protection Act E-Commerce:

The Consumer Protection Act 2019 has made specific provisions for e-commerce transactions. Under the new Act, e-commerce platforms are held liable for the quality and authenticity of the products sold on their platforms. They are also required to provide details of sellers, and they have to ensure that customer grievances are addressed promptly.

Consumer Protection Act Product Liability:

The Consumer Protection Act 2019 has introduced the concept of product liability. This means that manufacturers, sellers, and service providers are liable for any harm caused to a consumer due to defects in their products or services. The liability extends not just to the immediate purchaser of the product but to all consumers who are likely to use the product.

Consumer Protection Act Mediation:

The Consumer Protection Act 2019 emphasizes the use of mediation to resolve disputes between consumers and service providers. Mediation is a voluntary process in which an impartial third party facilitates negotiations between the parties to arrive at a mutually acceptable solution. The Act provides for the establishment of mediation cells at the district, state, and national levels.

Consumer Protection Act Jurisdiction:

Under the Consumer Protection Act 1986, the jurisdiction of consumer forums was determined by the value of the goods or services in question. However, the Consumer Protection Act 2019 has introduced the concept of ‘class action’ lawsuits, which enables consumers to file a complaint collectively for the same or similar claims. The Act has also increased the jurisdiction of consumer forums, allowing consumers to approach the forums for disputes worth up to Rs. 1 crore.

Conclusion

The Consumer Protection Act 2019 is a significant improvement over the Consumer Protection Act 1986. The new Act provides a more comprehensive and effective framework for the protection of consumers’ rights. It empowers consumers with greater control over their purchases, strengthens the regulatory framework, and introduces innovative mechanisms for dispute resolution. As a consumer, it is important to understand your rights and the provisions of the Consumer Protection Act to ensure that you are not exploited by unscrupulous manufacturers or service providers