Key Takeaways
- The Act came into force on 20 July 2020 and covers goods, services, e-commerce, direct selling and telemarketing.
- A consumer is a person who buys goods or hires services for consideration for personal use, and not for resale or commercial purposes.
- The six consumer rights include safety, information, choice, being heard, seeking redress and consumer awareness.
- The CCPA can investigate, order refunds, recall unsafe goods and impose penalties for misleading advertisements, including on celebrity endorsers.
- Under the 2021 rules, the District Commission handles claims up to ₹50 lakh, the State Commission from ₹50 lakh to ₹2 crore and the National Commission above ₹2 crore, based on the consideration paid.
- A complaint must generally be filed within two years from the date the cause of action arose, and no court fee is charged for claims up to ₹5 lakh.
Why the 2019 Act replaced the 1986 Act
Since 1986 the way people buy had changed completely. Online shopping, digital payments, influencer advertising and cross border sellers created problems that the old law was not designed for. The 2019 Act modernised the framework by adding e-commerce, product liability, an executive regulator and faster alternate dispute resolution.
The six consumer rights
- Right to be protected against marketing of goods and services that are hazardous to life and property
- Right to be informed about quality, quantity, potency, purity, standard and price
- Right to be assured of access to a variety of goods and services at competitive prices
- Right to be heard and assured that consumer interests receive due consideration
- Right to seek redressal against unfair trade practices and unscrupulous exploitation
- Right to consumer awareness
Key authorities under the Act
| Authority | Role |
|---|---|
| Central Consumer Protection Authority (CCPA) | Protects collective consumer interest, investigates violations, orders recall of unsafe goods and refunds, and penalises misleading advertisements |
| District Consumer Disputes Redressal Commission | Hears complaints where the value of goods or services paid is up to ₹50 lakh |
| State Consumer Disputes Redressal Commission | Hears complaints where the value is above ₹50 lakh and up to ₹2 crore, and appeals from district orders |
| National Consumer Disputes Redressal Commission | Hears complaints above ₹2 crore and appeals from state orders |
| Consumer Mediation Cell | Offers voluntary mediation attached to the commissions to settle disputes faster |
Penalties and product liability
- Misleading advertisements: the CCPA can impose a penalty of up to ₹10 lakh on a manufacturer or endorser, and up to ₹50 lakh for subsequent contraventions.
- Endorsers: a celebrity or influencer can be barred from endorsing for up to one year, and up to three years for later violations, unless due diligence is shown.
- Product liability: a manufacturer, seller or service provider can be held liable for harm caused by a defective product or deficient service.
- Unfair contracts: commissions can declare one sided contract terms null and void.
- E-commerce: platforms must follow the Consumer Protection (E-Commerce) Rules, 2020, including disclosing seller details, return policies and grievance officers.
How to file a consumer complaint
- Send a written complaint or legal notice to the seller or service provider, and keep proof of purchase, invoices, messages and photos.
- Try the National Consumer Helpline at 1915 or its online portal for quick pre-litigation resolution.
- Decide the right forum based on the value of goods or services paid, not the compensation claimed.
- File online through the e-Daakhil portal, or in person at the commission, with the complaint, documents and the prescribed fee.
- Attend hearings or opt for mediation, and the commission aims to decide within a few months, as the Act prescribes.
- If you disagree with the order, appeal to the higher commission within 45 days.
What businesses should do
- Make sure advertisements are accurate and can be backed by evidence.
- Display price, return and refund terms clearly, and avoid dark patterns such as hidden charges.
- Respond quickly to complaints and keep a grievance redressal system, especially for e-commerce.
- Maintain product safety documents, testing records and insurance where relevant.
- Train influencer and marketing partners about disclosure and due diligence duties.
Frequently Asked Questions
What is the Consumer Protection Act, 2019?
It is India's consumer law, in force since 20 July 2020, which replaced the 1986 Act and added e-commerce coverage, product liability, a central regulator and mediation.
Who is a consumer under the Act?
A consumer is someone who buys goods or hires services for consideration for personal use, while buying for resale or a commercial purpose is generally excluded.
Which commission should I approach for my complaint?
It depends on the value of goods or services paid: up to ₹50 lakh at the District Commission, ₹50 lakh to ₹2 crore at the State Commission, and above ₹2 crore at the National Commission.
What is the time limit to file a consumer complaint?
A complaint should generally be filed within two years from the date the cause of action arose.
What is the penalty for a misleading advertisement?
The CCPA can impose up to ₹10 lakh for a first violation and up to ₹50 lakh for subsequent ones, and can also bar endorsers for a period.
Can I file a consumer complaint online?
Yes, you can file through the e-Daakhil portal, and the National Consumer Helpline at 1915 also helps with early resolution.
Facing a consumer dispute or need to make your business compliant?
Whether you are a consumer drafting a complaint or a seller reviewing your advertising and return policies, Growthora can help. Book a free consultation and we will guide you through notices, complaints and compliance.
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