The new Consumer Protection Act will come into force on July 20, 2020. Know What is New

Updated on July 25, 2025 11:14:09 AM

The newly enacted Consumer Protection Act, 2019, which replaces the Consumer Protection Act, 1986, comes into force on 20th July 2020. The Consumer Protection Act, 2019, was signed into law by President Ram Nath Kovind in August last year. It seeks to make corporations accountable for the quality of goods they sell or manufacture. The Act provides for the protection of the interests of consumers, establishes a central consumer protection authority, and provides a mechanism to settle consumer disputes. It also specifically regulates product liability and misleading advertisements.

Key Highlights of Consumer Protection Act, 2019

Enhancement of Scope of Certain Terms

  • The provisions notified by the government under this Act are related to consumer protection councils, consumer disputes redressal forum, mediation, liability of services or products, penalty for manufacturing, selling, distributing etc goods or products which contain adulterant.

  • The definition of ‘consumer’ has now being widened. The earlier Act did not specifically include e-commerce transactions. The definition now includes any person who buys any goods, whether through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.

  • The new Act introduces a specific broad definition of Unfair Trade Practices, which also includes sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.

  • The Act introduces a provision that safeguards consumers against unfair contracts by declaring them to be illegal. An unfair contract covers contracts between manufacturer/ trader and a consumer that causes significant changes in the rights of the consumer such as by way of – imposing unreasonable obligation or condition on the consumer which puts consumer to disadvantage, reserving right to unilateral termination or assignment without consent in the contract, imposing a penalty for breach which is disproportionate to loss caused etc.

  • The New Act has introduced the concept of product liability and brought within its fold not just the product manufacturer and product service provider but the product seller as well. A product liability action for compensation can now be formally made on grounds of defectiveness of good or deficiency of services that has caused harm to a person or his/her property on grounds.

  • The scope of defect and deficiency has been expanded to include non-conformance to express warranty or specifications, design defect, failure to provide adequate instructions or warnings to prevent any harm.

Formation of CCPA

Revised pecuniary limits have been fixed

Penalty

Redressal of Grievances

Conclusion

The New Consumer Protection Act, 2019, is a big step toward ensuring better rights and protections for consumers. It covers e-commerce, product liability, misleading ads, and unfair contracts, making businesses more accountable. With stricter penalties and easier complaint redressal, consumers now have stronger legal backing. This law aims to create a fair marketplace where buyers are not misled or exploited. If you're a consumer, staying informed about your rights under this Act can help you make better choices and take action when needed.

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