The Consumer Protection Act, 2019, which came into effect on 20 July 2020, replaced the three-decade-old Consumer Protection Act of 1986 and introduced a modern, comprehensive framework for safeguarding consumer interests in an era of digital commerce, complex supply chains, and aggressive marketing. The 2019 Act was necessitated by the dramatic transformation of the Indian marketplace — when the 1986 Act was enacted, there was no e-commerce, no social media advertising, and no concept of platform-based marketplaces. The new legislation addresses these realities head-on while preserving and strengthening the foundational consumer rights established by its predecessor.
The Central Consumer Protection Authority (CCPA) — Sections 10 to 27: One of the most significant innovations of the 2019 Act is the establishment of the Central Consumer Protection Authority under Section 10. The CCPA is a regulatory body empowered to protect, promote, and enforce consumer rights as a class. It has the authority to conduct investigations into violations of consumer rights, issue directions for recall of dangerous goods, order reimbursement of the price of defective goods or services, discontinue unfair trade practices, and impose penalties for misleading advertisements. Under Section 18, the CCPA can issue directions to any trader, manufacturer, endorser, advertiser, or publisher to withdraw or modify a misleading advertisement. For false or misleading advertisements, the CCPA may impose a penalty of up to ten lakh rupees on the manufacturer or endorser for a first offence, extendable to fifty lakh rupees for subsequent offences. In the case of a misleading advertisement that is prejudicial to any consumer or is dangerous to life and safety, the penalty may extend to twenty-five lakh rupees for a first offence and fifty lakh rupees for every subsequent offence, and the endorser may be prohibited from making any endorsement for a period of up to one year, extendable to three years for subsequent offences.
E-Commerce Consumer Protection — A New Frontier: The 2019 Act, for the first time in Indian consumer law, explicitly brings e-commerce transactions within the ambit of consumer protection. Section 2(7) defines "consumer" to include any person who buys goods or avails services through offline or online transactions, including electronic means, teleshopping, direct selling, or multi-level marketing. The Consumer Protection (E-Commerce) Rules, 2020, issued under Section 101, impose detailed obligations on e-commerce entities including marketplace platforms and inventory-based sellers. These rules require every e-commerce entity to display information about return, refund, exchange, warranty, guarantee, delivery, shipment, modes of payment, and grievance redressal mechanism on its platform. They mandate that no e-commerce entity shall manipulate the price of goods or services to gain unreasonable profit, adopt any unfair or deceptive method, or discriminate between consumers of the same class. Every e-commerce entity must appoint a grievance officer who must acknowledge consumer complaints within forty-eight hours and resolve them within one month. These provisions are particularly relevant for Indian consumers, given that the Indian e-commerce market crossed Rs. 7 lakh crore in gross merchandise value by 2024.
Product Liability — Sections 82 to 87: The 2019 Act introduces, for the first time, a comprehensive product liability framework in India. Under Section 82, a product liability action may be brought by a complainant against a product manufacturer, product service provider, or product seller for any harm caused by a defective product or deficiency in services. Section 84 specifies that a product manufacturer is liable if the product contains a manufacturing defect, is defective in design, deviates from manufacturing specifications, does not conform to the express warranty, or fails to contain adequate instructions or warnings regarding foreseeable risks. Section 85 holds a product service provider liable if the service was faulty or imperfect, or if there was an act of omission or commission that caused harm. Section 86 extends liability to product sellers who have exercised substantial control over the design, testing, manufacture, or packaging, or who have altered or modified the product resulting in the defect. This framework represents a paradigm shift from the earlier caveat emptor approach, bringing Indian consumer law closer to international standards of strict product liability.
Mediation as an Alternative — Sections 74 to 81: Recognising the burden on consumer forums across India (as of 2023, over 5.5 lakh cases were pending across the three tiers of consumer commissions), the 2019 Act introduces a formal mediation mechanism under Chapter V. At any stage of a complaint, the relevant Consumer Disputes Redressal Commission may refer the matter to mediation with the consent of both parties. The mediation must be concluded within forty-five days, extendable by a further forty-five days. If mediation succeeds, the settlement agreement is binding and enforceable as if it were a decree of the Commission. This provision is designed to provide speedy, cost-effective resolution and reduce the burden on the formal adjudication system.
Three-Tier Consumer Commission Structure: The 2019 Act retains the three-tier structure: District Consumer Disputes Redressal Commission (for complaints where the value of goods or services does not exceed one crore rupees), State Consumer Disputes Redressal Commission (for complaints exceeding one crore but not exceeding ten crore rupees), and the National Consumer Disputes Redressal Commission (for complaints exceeding ten crore rupees). The pecuniary jurisdiction has been significantly enhanced from the 1986 Act, where the District Forum limit was only twenty lakh rupees and the State Commission limit was one crore rupees. The 2019 Act also allows electronic filing of complaints, which is a significant step towards digital access to justice. The complaint must be filed within two years from the date on which the cause of action arises, though the Commission may condone delay if sufficient cause is shown.
How to File a Consumer Complaint — A Step-by-Step Guide: Any consumer or recognised consumer association can file a complaint. The complaint must include the name and address of the complainant and the opposite party, a description of the goods or services, the allegations with supporting documents, and the relief sought. Complaints can be filed in person, by post, or electronically through the EDAAKHIL portal (edaakhil.nic.in) of the Department of Consumer Affairs. No advocate is mandatory — consumers can argue their own case. The filing fee is nominal — Rs. 100 for complaints up to five lakh rupees, scaling up to Rs. 7,500 for complaints above ten crore rupees. Once the complaint is admitted, the Commission issues notice to the opposite party, who must respond within thirty days (extendable by fifteen days). If the complaint is allowed, the Commission may direct removal of defects, replacement of goods, refund of price, payment of compensation for loss or injury, discontinuation of unfair trade practice, or payment of punitive damages.
Practical Tips from Law Forum India: Based on our community outreach programmes in Bengaluru, we recommend: always retain bills, receipts, warranties, and correspondence — they are your primary evidence; take screenshots of online transactions including product descriptions, prices, and delivery promises; file complaints promptly within the two-year limitation period; use the EDAAKHIL portal for ease of filing; be specific about the relief you seek; and consider mediation for quicker resolution. Law Forum India provides free guidance to consumers in drafting complaints and understanding the filing process at our regular legal awareness camps.