A brief comparative study on Consumer Protection Act 2019, with correlation to the repealed statue - Consumer Protection Act 1986.

1. Consumer Protection
Act - 2019
Along with a brief about COPRA 1986
Satakshi Awasthi
FY BBA LLB (Hons.)
University of Mumbai, Thane
Sub-Campus

2. INTRODUCTION
 COPRA 1986 was an act to protect the interest and rights of consumers by
establishing consumer councils and other authorities for the settlement of
grievances of consumers in India.
 COPRA 1986 was regarded as ‘Magna Carta’ in protecting the rights of
consumers and establishing a widespread network to prohibit unfair trade
practices in India.
 COPRA 1986 which commenced on 24 December 1986 has now been replaced
and repealed by Consumer Protection Act – 2019
 Consumer Protection Act 2019 was introduced by Minister of Consumer Affairs,
Food and Public Distribution, Mr. Ram Vilas Paswan.
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3. Key Features of the Consumer Protection
Act, 2019
1. Establishing CCPA –
 The Central Consumer Protection Authority, which shall protect
promote and enforce the rights of consumers along with
accessing competitive prices of goods and services.
 The CCPA will have the authority and right to impose penalty on
violators of consumer rights.
 It shall regulate the cases related to unfair trade practices, any
false or misleading advertisements and shall pass order to recall
any goods and services that are deemed to be hazardous in
nature.
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4. Key Features of the Consumer Protection
Act, 2019 (contd.)
 The CCPA can impose penalty up to 10 Lakhs for first violation
case and up to 50 Lakhs on every subsequent violation on part
of manufacturer or an endorser and they may be sentenced to
imprisonment for up to 2 years.
 It can issue notice to educate consumers in regards to their
rights and about unsafe goods and services.
 The CCPA will have an investigation wing to enquire and
investigate violations and have authority to initiate suo-moto
proceedings against violators.
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5. Key Features of the Consumer Protection
Act, 2019 (contd.)
2. 6 Rights to the Consumers – Section 2(9) of COPRA 2019
defines ‘consumer rights which includes –
 The right to be protected against the marketing of goods,
products or services which are hazardous to life and property;
 The right to be informed about the quality, quantity, potency,
purity, standard and price of goods, products or services, as the
case may be, so as to protect the consumer against unfair trade
practices;
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6. 6 Rights to the Consumers (contd..)
 The right to be assured, wherever possible, access to a variety
of goods, products or services at competitive prices;
 The right to be heard and to be assured that consumer’s
interests will receive due consideration at appropriate fora;
 The right to seek redressal against unfair trade practice or
restrictive trade practices or unscrupulous exploitation of
consumers; and
 The right to consumer awareness.
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7. Consumer ?
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8. 3. The 2019 Act expands the scope of the definition of Consumer so
as to include the consumers involved in online transactions and it
now squarely covers the E-commerce businesses within its ambit.
 Comprehensive definition of ‘Consumer’ is defined under
section 2(7) of the Act, it is stated that consumer is anyone
who:
 (i) buys any goods for a consideration which has been paid or
promised or partly paid and partly promised, or under any
system of deferred payment and includes any user of such
goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment, when
such use is made with the approval of such person, but does
not include a person who obtains such goods for resale or for
any commercial purpose; or
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9. Consumer (contd..)
 (ii) hires or avails of any service for a consideration which has
been paid or promised or partly paid and partly promised, or
under any system of deferred payment and includes any
beneficiary of such service other than the person who hires or
avails of the services for consideration paid or promised, or
partly paid and partly promised, or under any system of
deferred payment, when such services are availed of with the
approval of the first-mentioned person, but does not include a
person who avails of such service for any commercial purpose.
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10. 4. “Unfair Trade Practice” -
 Section 2(47) of CORPA 2019 defines “unfair trade practice”
means a trade practice which, for the purpose of promoting the
sale, use or supply of any goods or for the provision of any
service, adopts any unfair method or unfair or deceptive
practice including any of the following practices.
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11. “Unfair Trade Practice” (contd..)
 The 2019 Act has also widened the definition of Unfair Trade Practices as
compared to the 1986 Act which now includes within its ambit –
 online misleading advertisements;
 the practice of not issuing bill/memo for the goods and services;
 failing to take back defective goods or deactivate defective services
 refund the amount within the stipulated time mentioned in the bill or memo
or within 30 days in the absence of such stipulation;
 and disclosing personal information of a consumer unless such disclosure is in
accordance with law.
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12. 5. Concept of “Product Liability” -
 Section 2 (34) of CORPA 2019 defines “product liability” as the responsibility
of a product manufacturer or product seller, of any product or service, to
compensate for any harm caused to a consumer by such defective product
manufactured or sold or by deficiency in services relating thereto;
 Under the provisions of this bill, a manufacturer or a service provider would
be required to compensate the consumer in case of any loss or injury due to a
manufacturing defect in the product or a poor service.
 The provision differs from the earlier provision where only the cost of the
product was compensated but bot the cost of loss or injury which has been
included in the current provision.
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13. Comparative Analysis of Consumer Protection
Act: 1986 and 2019
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14. Comparative Analysis of Consumer Protection
Act: 1986 and 2019 (contd..)
 Purchases of goods and services made through online methods under the
ambit of consumers are explicitly included in 2019 Act
 The act has made endorsers answerable to the consumers regarding any false
or misleading advertisements.
 Under section 21(2) of the 2019 Act, the commission could even levy a fine of
fifty lakhs of the endorser continues to advertise false information about the
products even after getting a notice issued by the consumer.
 Misleading advertisements are also under the ambit of ‘Unfair Trade Practices’
in the new act. Disclosure of personal information given in the course of the
transaction is also considered an offence under the act
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15. Comparative Analysis of Consumer Protection
Act: 1986 and 2019 (contd..)
 The Act also proposes provision for product liability wherein the manufacturer
not only has to compensate for the defective goods but also has to
compensate for any loss or injury inflicted on the complainant due to the
defect.
 It’s not just the offence though, the redressal agencies have also gone
through changes under the new Act. While the 1986 act did stipulate for the
commissions to either accept or reject a complaint within 21 days of receiving
it, the 2019 act has gone a step further and stated that if no action has been
taken within 21 days then the complaint is to be assumed to be admitted
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16. Comparative Analysis of Consumer Protection
Act: 1986 and 2019 (contd..)
 The pecuniary jurisdiction of the district commission has also been raised to
ease the burden of the state and national commissions. You can apply to the
district commission now if the value of your case is within 1 crore.
 You don’t even need to file the complaint at the residence of the opposite
party. It can be filed where you reside or where the cause of action arose as
well. The commissions also have the power to review their cases now and can
also refer cases to mediation with the consent of both the parties.
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17. What are Consumer Redressal Forums ?
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18. Consumer Disputes Redressal Commission:
 The consumer protection act 2019 has a provision for the establishment of
Consumer Dispute Redressal Commission ( CDRCs) at the national, state and
district levels.
 The CDRCs will entertain complaints related to ;
A. Overcharging or deceptive charging
B. Any unfair or restrictive trade practices
C. Sale of hazardous goods and services which may be hazardous to life.
D. Sale of defective goods or services
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19. 1. Pecuniary Jurisdiction of CDRCs
 The Act has provided criteria's of Consumer Dispute Redressal Commission
(CDRCs)
 Each of the three level of CDRCs will have varying jurisdiction based on the
value of goods and services for which the complaint has arisen –
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20. District Commission
 This the lowest rung in the redressal commissions that consumers can approach.
The State Government, under section 28(1) establishes at least one district
consumer dispute redressal commission in every district of the state. If the
government deems fit, it can even establish more than one district commission in
a district. Every district commission needs to have a minimum of one president
and two members but can have more members after discussing it with the Central
government. If your redressal value is 1 crore or less than that, then you can
approach the district commission.
 Who can file a complaint at the district commission?
 The following people can file a complaint at the commission under section 35(1) of
the Act:
 The consumer
 i) To whom such goods are delivered, or sold or agreed to be sold or such service
which has been provided or has been agreed to be provided.
 ii) Who alleges unfair trade practises in respect of such goods.
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21. District Commission (contd..)
 Consumer Association
 Any voluntary consumer association registered under the law. It doesn’t
matter if the consumer is part of such association or not.
 One or more consumers appearing on behalf of all consumers with a
common interest
 These consumers would first need to get permission from the District
Commission to proceed with the complaint in such a manner.
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22. District Commission (contd..)
 The Central Government, The State Government or the Central Authority
as the case might be
 Under Section 34(2), a complaint can be filed at the District Court under
within whose local limits:
 The opposite party or each of the opposition parties, in case there are more
than one, normally reside, or carry on business, or have a branch or
personally work for gain.
 Any of the opposite parties ordinarily reside, or carry on business, or
personally work for gain. Provided, the permission of the district commission
is taken.
 Where the cause of action wholly or partly arises.
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23. District Commission (contd..)
 Where the complainant resides or personally works for gain.
 On filing the complaint, it is necessary for the Commission to admit or reject
the complaint within 21 days of receiving the complaint. It is legally
prohibited under Section 36 for the commission to reject a complaint without
first hearing the complainant. It is also necessary for every proceeding to be
presided by the President and one member at least. Where the member who
has been sitting for a particular proceeding is absent, the proceeding can be
resumed with another method.
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24. District Commission (contd..)
 Once the complaint is admitted, the commission must:
 Refer a copy of the complaint, within 21 days of the complaint being admitted, to
the opposite party and direct it to give its version of the story within 30 days or
the extended period granted by the commission.
 If the opposite party disputes the allegation or fails and omits to take any action
regarding the complaint, then district commission must deal with it in the
following ways.
 Must seal the allegedly defective goods, and send them to the appropriate
laboratory after authenticating it in the manner required. It must direct the
laboratory to find if there is any genuine fault with the goods and report its
findings to the commission within 45 days or how much ever time granted by the
commission.
 Before the goods go to the library, the complainant must be directed to deposit
the sum of money required for testing in the credit of the commission.
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25. District Commission (contd..)
 If any of the parties dispute the correctness of the finding of the laboratory,
then the parties must be directed to submit their objections in writing to the
commission.
 Give a reasonable opportunity to the opposite party or the initiating party to be
heard regarding their objections.
 If the above-mentioned procedure can’t be followed due to the lack of goods to
take a sample from or if the defect alleged is in the service of the opposite party.
Then the commission shall settle the dispute:
 On the basis of evidence provided by the complainant or the opposite party if the
opposite party disputes the allegation.
 Take an ex parte decision if the opposite party omits to do anything regarding the
allegations.
 Decide the case on its merits if the complainant fails to show up for the hearing.
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26. District Commission (contd..)
 If it’s inconvenient for the party to show up to the commission in person, you can submit an
application for hearing or examination of parties through video conferencing and if the
district commission agrees with the reasons then it may allow so after recording the reason.
 The commission must deal with the case as expeditiously as possible and endeavour must be
done to dispose of the case within three months if no analysis or testing is required and five
months if analysis and testing are required.
 The District commission has the same power as the district court under this act.
 If a party is aggrieved by the order of the district commission then they may prefer an appeal
to the State Commission within 45 days of receiving such order. Even though the State
Commission may entertain the plea after 45 days if sufficient reason is given by the party.
 The State Commission shall not hear the appeal of the party if the party has to pay a certain
amount ordered to be paid by the District Commission. Minimum 50% of the amount must be
paid before the State Commission will hear the appeal.
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27. State Commission
 The State government establishes a State commission, under section 42(1) of the
Act, in the state through the notification and can even establish regional branches
if it seems fit. Each State Commission shall consist of one President and no less
than four members and a maximum of as many members as is required.
 According to section 47, the State Commission has the jurisdiction to entertain:
 (i) complaints where the value of the goods or services paid as consideration,
exceeds rupees one crore but does not exceed rupees ten crores:
 Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit;
 (ii) complaints against unfair contracts, where the value of goods or services paid
as consideration does not exceed ten crore rupees;
 (iii) appeals against the orders of any District Commission within the State;
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28. State Commission (contd..)
 Apart from that, it also has the jurisdiction to call for the records and pass
appropriate orders in any consumer dispute which is pending before or has been
decided by any District Commission within the State, where it appears to the State
Commission that such District Commission has exercised a jurisdiction not vested
in it by law, or has failed to exercise a jurisdiction so vested or has acted in
exercise of its jurisdiction illegally or with material irregularity.
 A bench of the State Commission must consist of a President and one member or
more if the president deems it fit.
 The State Commission also has the power to shift proceedings from one district
commission to another under section 48. The State Commission can do that on its
own cognizance or through an application filed by the parties. But it must be to
serve the purpose of justice.
 State Commission disposes of the case in the exact same method as the District
Commission and also holds the power to review its own cases.
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29. State Commission (contd..)
 If aggrieved by the decision, the aggrieved party may prefer an appeal to the
National Commission within 30 days of receiving the order from the state
commission. If sufficient reason is shown then the national commission can
also entertain the plea after the thirty days.
 The national commission shall not listen to an appeal if the person who has to
pay a particular amount from the order of the state commission, has not paid
at least 50% of the amount ordered to be paid.
 The appeal must be dealt with expeditiously and endeavours must be made to
dispose of the appeal within 90 days from its date of admission.
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30. National Commission
 Under Section 53(1), the Central Government establishes a National commission
through notification. The main National Commission operates on the national
capital region but the Central government can establish regional branches through
notification. The National Commission must have one president and at least 4
members with the maximum being whatever is prescribed by the national
government.
 The National Commission has jurisdiction, under section 58 of the Act:
 (a) to entertain:
 (i) complaints where the value of the goods or services paid as consideration
exceeds rupees ten crores: Provided that where the Central Government deems it
necessary so to do, it may prescribe such other value, as it deems fit;
 (ii) complaints against unfair contracts, where the value of goods or services paid
as consideration exceeds ten crore rupees;
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31. National Commission (contd..)
 (iii) appeals against the orders of any State Commission;
 (iv) appeals against the orders of the Central Authority; and
 (b) to call for the records and pass appropriate orders in any consumer
dispute which is pending before or has been decided by any State Commission
where it appears to the National Commission that such State Commission has
exercised a jurisdiction not vested in it by law, or has failed to exercise a
jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally
or with material irregularity.
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32. National Commission (contd..)
 A bench in the National Commission must at least consist of the President and one member
but there can be more members if the President deems it fit.
 The National Commission disposes of a case in the same manner as the district commission
and also reserves the right to review its cases suo moto or based on an application filed by
one of the parties.
 Section 65(1) also states -
 All notices, required by this Act to be served, shall be served by delivering or
transmitting a copy thereof by registered post acknowledgment due addressed to
opposite party against whom complaint is made or to the complainant by speed post or
by such courier service, approved by the District Commission, the State Commission or
the National Commission, as the case may be, or by any other mode of transmission of
documents including electronic means:
 If the postal delivery guy acknowledges that the post was refused by the party then the
commission must acknowledge the party as duly served under 65(2).
 If aggrieved by the decision then an appeal does lie to the Supreme Court if made within
thirty days of receiving the order.
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33. 2. Territorial Jurisdiction -
 Earlier in the CORPA 1986, the complaint could only be registered where the
opponent party against whom the complaint has to be registered resides or
carry their business whereas the hybrid provision allows to file complaint
where the complainant resides or personally work for profit.
3. Alternate Dispute Resolution -
 To ensure a speedy resolution to disputes the 2019 act has provided a new
provision by which both the parties mutually can go for mediation. For this
purpose, the act provides for establishment of consumer mediation cells by
respective State Governments in each District, State and National Commission
by the Central Government.
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34. What is the appellate process?
 The parties involved in the complaint have the right to appeal in the higher
forums in respect to any ruling provided in the respective CDRCs.
 Any appeals from the district CDRC would be heard in the State CDRC.
 Appeals from State CDRCs would be taken up in National CDRC.
 The final appeal beyond National CDRC would be taken up by the Supreme
Court.
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35. Limitations of CORPA 2019
 Trust cannot Lodge a Complaint under the Consumer Protection Act – Since
‘trust’ doesn’t fall under the definition of neither consumer nor complainant
and nor even ‘person’.
 Insurance Company cannot Reject Claims on Technical Grounds
 Corporate Bodies can be sued under the Consumer Protection Act
 Educational institutions must refund the extra fee paid
 Sympathy should not influence compensation
 Both parents and minor can claim for compensation under the Consumer
Protection Act
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36. Remedies -
 (a) Removal of Defects:
If after proper testing the product proves to be defective, then the ‘remove its
defects’ order can be passed by the authority concerned.
 (b) Replacement of Goods:
Orders can be passed to replace the defective product by a new non-defective
product of the same type.
 (c) Refund of Price:
Orders can be passed to refund the price paid by the complainant for the product.
 (d) Award of Compensation:
If because of the negligence of the seller a consumer suffers physical or any other
loss, then compensation for that loss can be demanded for.
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37. Remedies (contd..) -
 (e) Removal of Deficiency in Service:
If there is any deficiency in delivery of service, then orders can be passed to remove
that deficiency. For instance, if an insurance company makes unnecessary delay in
giving final touch to the claim, then under this Act orders can be passed to
immediately finalise the claim.
 (f) Discontinuance of Unfair/Restrictive Trade Practice:
If a complaint is filed against unfair/restrictive trade practice, then under the Act
that practice can be banned with immediate effect. For instance, if a gas company
makes it compulsory for a consumer to buy gas stove with the gas connection, then
this type of restrictive trade practice can be checked with immediate effect.
 (g) Stopping the Sale of Hazardous Goods:
Products which can prove hazardous for life, their sale can be stopped.
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38. Remedies (contd..) -
 (h) Withdrawal of Hazardous Goods from the Market:
On seeing the serious adverse effects of hazardous goods on the consumers, such
goods can be withdrawn from the market. The objective of doing so that such
products should not be offered for sale.
 (i) Payment of Adequate Cost:
In the end, there is a provision in this Act that the trader should pay adequate
cost to the victim concerned.
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39. I. Case law -
 In the case of Spring Meadows Hospital & Anr v Harjol Ahluwalia, the court
was presented with the question of whether parents who take their child to
the hospital are also consumers along with the child. The court answered in
the affirmative stating that when parents take their child to the hospital,
they are hiring the services of the doctor for their child and therefore come
under the definition of the consumer while the child who is a beneficiary of
the service also becomes a consumer. The court furthermore rejected the
contention of the respondent that compensation can only be awarded to one
of the parties i.e. the child and stated that since the child being beneficiary
faced loss due to the negligence and the parent being hirer of the service also
face loss in the form of mental agony. Both of them are liable to be awarded
compensation.
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40. II. Case law -
 The discovery rule used to decide when the cause of arises in cases of a medical
emergency was first propounded in Ayers v. Morgan [397 Pa.282, 154A.2d 788] by
the US courts and was adopted by the Indian legal jurisprudence In the case
of V.N.Shrikhande vs Anita Sena Fernandes. In the particular case, the
complainant was negligently treated by the doctor resulting in a gauze inside her
stomach creating an infection. The complainant got tested 9 years after the initial
operation in the duration of which she was under constant pain. The respondents
contended that since she did not visit the doctor even once after the operation
and 9 years had passed so the entire complaint was barred by limitation.
 So if the damage inflicted by the doctor due to negligence is patent, then the
cause of action arises on the date the act was committed but, on the other hand,
if the act did was latent, then the cause of action arises when the victim realises
the negligence.
 The court applying the rule said that the negligence in the case was latent, and
therefore the complaint was within limitation.
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41. III. Case law -
 In the case of Sehgal School of Competition v Dalbir Singh, the complainant
had paid the entire fees to the coaching institute but left halfway since the
coaching institute was not teaching the subjects he was interested in
learning. On asking for the refund of the extra amount paid, the institute
denied which prompted the complaint with the national commission. The
commission stated that coaching should not charge a lump sum amount and
directed the coaching institute to refund the extra amount due to the
complainant.
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42. AXE EFFECT!
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43. IV. Case law -
 Vaibhav Bedi, 26 years old resident of new Delhi filled a case against the
Hindustan Unilever Ltd. (HUL) in consumer court regarding cheating and mental
harassment via companies product ‘AXE deo’.
 In this case,
 Hindustan Unilever Ltd is a reputed company in FMCG sector having wide variety
of its product. Company also groom the deodorant industry with the help of its sub
brand ‘AXE’. Company went for advertisement showing the craziness of girls
towards the AXE deo and AXE deo applied man. And create a good will by saying
that attraction of girls after applying the AXE deo is called ‘AXE effect’. With this
company also introduce products like deo, after shaving lotion, shower gel etc.
 Vaibhav Bedi a resident of New Delhi also wanted to get centre of attraction in the
mind of girls and as per the companies all instruction he started using all the
products which comes under the sub brand of ‘AXE’. He used the AXE product for
nearly 7 years as per the company’s prescription but as per the advertisement
presentation, no girl turned up for him in real life.
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44. IV. Case law (contd..) -
 Vaibhav claims that he had been using all the Axe products as per the
company’s instructions even since he first bought them. He argued that if he
couldn’t experience the Axe effect despite using the products as directed,
either the company was making false claims or selling fake products.
 With these complaints Vaibhav filed a suit against Hindustan Unilever Ltd.
with the argument that company made a false statement through
advertisement which resulted in to cheating and mental harassment he also
surrendered used can of AXE as an evidence in consumer court.
 As per the consumer protection act. 1986, company made an false statement
via advertisement which miss guided the consumer and spread an different
message in order to have a better sell but here, this message is harmful for
customer like Vaibhav Bedi. So by using the rights of consumer, vaibhav Bedi
surrendered all his used cans and claimed for compensation from Hindustan
Unilever Ltd. (HUL).
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45. DIAMONDS ARE FOREVER!! ARE THEY ?
 No regulatory body
 No hallmarking
 No proof of the exact quality of diamonds
 Very limited resale value
 No brand buys diamonds from another brand
 “For us its merely a stone, it has no value”.
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46. Hallmarking of Gold Jewels ?
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47. Mandatory Hallmarking for gold jewelry
from Jan 25, 2021
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48. Conclusion
 The bill simplifies consumer litigation and provides a speedy resolution.
 The bill is inclusive in its form by adding E-commerce and idea of mediation
under the ambit of consumer laws which shall help in quicker disposal of
cases.
 The electronic filling of complaints and attending the hearing through video
conference are simplifying the process of complaints
 Imposing strict liabilities against the violators is providing greater protection
to consumer interests
 Conclusively, Consumer Protection Act, 2019 compared to 1986 Act shows to
be more stringent in the current age of digitization but the implementation of
laws remains a challenge.
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49. References
 Consumer Protection Act – 1986 Bare Act
 Consumer Protection Act – 2019 Bare Act
 Manupatra
 Economic Times
 Legistify
 Mondaq
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50. Thankyou!
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