CONSUMER PROTECTION ACT 2019 (WITH RECENT AMENDMENTS)

[Link]
Consumer protection is the practice of safeguarding buyers of goods and services
against unfair practices in the market. It refers to the steps adopted for the protection of
consumers from corrupt and unscrupulous malpractices by the sellers, manufacturers,
service providers, etc. and to provide remedies in case their rights as a consumer have
been violated.

[Link] for the Consumer Protection Act, 2019

The Consumer Protection Act, 2019 was enacted by the Indian legislature to deal with
matters relating to violation of consumer’s rights, unfair trade practices, misleading
advertisements, and all those circumstances which are prejudicial to the consumer’s
rights. The intention of the Parliament behind enacting the Act was to include
provisions for e-consumers due to the development of technology, buying and selling of
goods and services online have considerably increased during the last few years.

The Act seeks to provide better protection of the rights and interests of the consumers
by establishing Consumer Protection Councils to settle disputes in case any dispute
arises and to provide adequate compensation to the consumers in case their rights have
been infringed. It further provides speedy and effective disposal of consumer
complaints through alternate dispute resolution mechanisms. The Act also promotes
consumer education in order to educate the consumer about their rights,
responsibilities and also redressing their grievances.

[Link] of the Consumer Protection Act, 2019

The main objective of the Act is to protect the interests of the consumers and to
establish a stable and strong mechanism for the settlement of consumer disputes. The
Act aims to:

 Protect against the marketing of products that are hazardous to life and
property.
 Inform about the quality, potency, quantity, standard, purity, and price of goods
to safeguard the consumers against unfair trade practices.
 Establish Consumer Protection Councils for protecting the rights and interests of
the consumers.
 Assure, wherever possible, access to an authority of goods at competitive prices.
 Seek redressal against unfair trade practices or unscrupulous exploitation of
consumers.
  Protect the consumers by appointing authorities for timely and sufficient
administration and settlement of consumers’ disputes.
 Lay down the penalties for offences committed under the Act.
 Hear and ensure that consumers’ welfare will receive due consideration at
appropriate forums in case any problem or dispute arises.
 Provide consumer education, so that the consumers are able to be aware of their
rights.
 Provide speedy and effective disposal of consumer complaints through alternate
dispute resolution mechanisms.

[Link] are consumer rights under Consumer Protection Act, 2019

There exist six rights of a consumer under the Consumer Protection Act, 2019. The
rights of the consumers are mentioned under Section 2(9) of the Act, which are as
follows:

 The right of a consumer to be protected from the marketing of goods and

services that are hazardous and detrimental to life and property.
 The right of a consumer to be protected against unfair trade practices by being
aware of the quality, quantity, potency, purity, standard and price of goods,
products or services.
 The right of a consumer to have access to a variety of goods, services and
products at competitive prices.
 The right to seek redressal at respective forums against unfair and restrictive
trade practices.
 The right to receive adequate compensation or consideration from respective
consumer forums in case they have been wronged by the seller.
 The right to receive consumer education.

[Link] incorporated in Consumer Protection Act, 2019

The changes that were incorporated with the enactment of the Consumer Protection
Act, 2019 are:
 The District Commissions will have the jurisdiction to entertain complaints
where the value of the goods, services or products paid as consideration to the
seller does not exceed 50 lakh rupees.
 State Commissions will have the jurisdiction to entertain complaints where the
value of the goods, services or products paid as consideration to the seller
exceeds 50 lakh rupees but does not exceed two crore rupees.
 The National Commission will have the jurisdiction to entertain complaints
where the value of the goods, services or products paid as consideration to the
seller exceeds two crore rupees.
  The Act further states that every complaint concerning consumer dispute shall
be disposed of as expeditiously as possible. A complaint filed under this Act shall
be decided within the period of three months from the date of receipt of notice
by the opposite party in the cases the complaint does not require analysis or
testing of the goods and services and within a period of 5 months, if it requires
analysis or testing of the goods and services.
 The Consumer Protection Act, 2019 also facilitates the consumers to file
complaints online. In this regard, the Central Government has set up the E-
Daakhil Portal, which provides a convenient, speedy and inexpensive facility to
the consumers all over India so that they are able to approach the relevant
consumer forums in case of any dispute arises.
 The Act lays down the scope for e-commerce and direct selling.
 The Consumer Protection Act, 2019 lays down provisions for mediation and
alternative dispute resolution so that the parties are able to dispose of the case
conveniently without going through the trouble of litigation.
 The Consumer Protection Act, 2019 contains provisions for product liability,
unfair contracts and it also includes three new unfair trade practices. In contrast,
the old Act just stated six types of unfair trade practices.
 The Act of 2019 acts as the advisory body for the promotion and protection of
consumer rights.
 Under the Consumer Protection Act, 2019 there is no scope for selection
committees, the Act authorises the Central Government to appoint the members.
 Therefore, with the changes in the digital era, the Indian Parliament enacted and
brought the Consumer Protection Act, 2019 in force to include the provisions for
e-commerce as digitalization has facilitated convenient payment mechanisms,
variety of choices, improved services, etc.

[Link] Protection Councils

Central Consumer About Central Council –

Protection  The Central Government has the power to establish the Central Consumer
Council Protection Council to be known as the Central Council.
 The Central Council shall be an advisory council
 Chairperson of central council shall be Minister-in-charge of the Department of
Consumer Affairs in the Central Government.
 Central council will have such number of other official or non-official members
representing such interests as may be prescribed.

Meeting of Central Council –

 The Central Council shall meet as and when necessary, but at least one meeting
of the Council shall be held every year.
 The Central Council shall meet at such time and place as the Chairperson
may think fit

Objective of Central Council –

 The objects of the Central Council shall be to render advice on promotion
and protection of the consumers’ rights under the Act.
State Consumer About State Council –
Protection  Every State Government empowers to establish a State Consumer Protection
Councils Council for such State to be known as the State Council.
 The State Council shall be an advisory council
 Chairperson of state council shall be Minister-in-charge of Consumer Affairs in
the State Government
 State council will have such number of other official or non-official members
representing such interests as may be prescribed.
 State council shall also have such number of other official or non-official
members, not exceeding ten, as may be nominated by the Central
Government.

Meeting of State Council –

 The State Council shall meet as and when necessary but not less than two
meetings shall be held every year.
 The State Council shall meet at such time and place as the Chairperson
may think fit

Objective of State Council –

 The objects of every State Council shall be to render advice on promotion
and protection of consumer rights under the Act within the State.
District Consumer About District Council –
Protection  The State Government empowers to establish for every District a
Council District Consumer Protection Council to be known as the District
Council.
 The District Council shall be an advisory council
 Chairperson of the District Council shall be Collector of the district.
 District council shall have such number of other official and non-official members
representing such interests as may be prescribed.
Meeting of District Council –
• The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
• The District Council shall meet at such time and place within the district as the
Chairperson may think fit

Objective of District Council –

• The objects of every District Council shall be to render advice on promotion and
protection of consumer rights under the Act within the district

7. Central Consumer Protection Authority (CCPA) (very important)

Establishment of Central Government has the power to establish a Central Consumer Protection
CCPA – Section 10 Authority to be known as the Central Authority
Role of Central  To regulate matters relating to –
Authority a) violation of rights of consumers,
b) unfair trade practices and
c) false or misleading advertisements
which are prejudicial to the interests of public and consumers
 to promote, protect and enforce the rights of consumers as a class.
Composition of The Central Authority shall consist of a Chief Commissioner and such number of
Central Authority other Commissioners as may be prescribed
Headquarters and The headquarters of the Central Authority shall be at Delhi, and it shall have regional
offices of Central and other offices in any other place in India as the Central Government may decide.
Authority
Vacancy, etc., not to No act or proceeding of the Central Authority shall be invalid only because of –
invalidate  any vacancy in, or any defect in the constitution of, the Central Authority; or
proceedings of  any defect in the appointment of a person acting as the Chief Commissioner
Central Authority or as a Commissioner; or
 any irregularity in the procedure of the Central Authority not affecting the
merits of the case.
Appointment of 1) The Central Government shall provide the Central Authority such number of
officers, experts, officers and other employees as it considers necessary for the efficient
professionals and performance of its functions under this Act.
other employees of 2) The salaries and allowances payable to, and the other terms and conditions
Central Authority – of service of, the officers and other employees of the Central Authority
Section 13 appointed under this Act shall be such as may be prescribed.
3) Central Authority also have the authority to appoint any expert or
professionals of integrity and ability, who have special knowledge and
experience in the areas of consumer rights and welfare, consumer policy,
law, medicine, food safety, health, engineering, product safety, commerce,
economics, public affairs or administration, as it deems necessary to assist it
in the discharge of its functions under this Act.
Investigation Wing About Investigation wing –
of Central 1) The Central Authority shall have an Investigation Wing
Authority(Section 2) Investigation wing shall be headed by a Director General
15) 3) The purpose of investigation wing is to conduct inquiry or investigation
under this Act as may be directed by the Central Authority

Appointment by CG –
 The Central Government may appoint a Director General and such number
of Additional Director General, Director, Joint Director, Deputy Director and
Assistant Director, from amongst persons who have experience in
investigation and possess such qualifications, in such manner, as may be
prescribed.
 Every Additional Director General, Director, Joint Director, Deputy Director
and Assistant Director shall exercise his powers, and discharge his functions,
subject to the general control, supervision and direction of the Director-
General.

Note –
The Director General may delegate all or any of his powers to the Additional
Director General or Director, Joint Director or Deputy Director or Assistant
Director, while conducting inquiries or investigations under this Act.
Powers and Central Authority has the power to –
functions of Central  protect, promote and enforce the rights of consumers as a class,
Authority – Section  prevent violation of consumers rights under this Act;
18  prevent unfair trade practices
 ensure that no person engages himself in unfair trade practices;
 ensure that no false or misleading advertisement is made of any goods or
services which contravenes the provisions of this Act or the rules or
regulations
 ensure that no person takes part in the publication of any advertisement
which is false or misleading.

For the above purpose Central Authority has the following powers –
 inquiry or investigation to be made into violations of consumer rights or
unfair trade practices, either suo motu or on a complaint received or on the
directions from the Central Government;
 file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
 intervene in any proceedings before the District Commission or State
Commission or National Commission, in respect of any allegation of violation
of consumer rights or unfair trade practices;
 undertake and promote research in the field of consumer rights;
 spread and promote awareness on consumer rights;
 encourage NGOs and other institutions working in the field of consumer
rights to co-operate and work with consumer protection agencies;
 issue safety notices to alert consumers against dangerous or hazardous or
unsafe goods or services;
 advise the Ministries and Departments of the Central and State
Governments on consumer welfare measures;
 recommend adoption best international practices on consumer rights to
ensure effective enforcement of consumer rights;
 issue necessary guidelines to prevent unfair trade practices and protect
consumers’ interest
Power of Central 1) Central Authority may, after receiving any information or complaint or
Authority to refer directions from the Central Government or of its own motion will conduct a
matter for preliminary inquiry as to whether there exists a prima facie case of violation
investigation or to of consumer rights or any unfair trade practice or any false or misleading
other Regulator – advertisement, by any person, which is prejudicial to the public interest or to
Section 19 the interests of consumers and if it is satisfied that there exists a prima facie
case, it shall cause investigation to be made by the Director General or by
the District Collector.
2) If after preliminary inquiry the Central Authority is of the opinion that the
matter is to be dealt with by a Regulator established under any other law for
the time being in force, it may refer such matter to the concerned Regulator
along with its report.
Power of Central If Central Authority is satisfied on the basis of investigation that there is sufficient
Authority to recall evidence to show violation of consumer rights or unfair trade practice by a person
goods – Section 20 then it may pass following orders –
- recalling of goods or withdrawal of services which are dangerous, hazardous
or unsafe;
- reimbursement of the prices of goods or services so recalled to purchasers of
such goods or services; and
- Discontinuation of practices which are unfair and prejudicial to consumers’
interest.
Note –
Central Authority shall give the person an opportunity of being heard before
passing an order under this section.
Power of Central 1) If the Central Authority is satisfied after investigation that any advertisement
Authority to issue is false or misleading and is prejudicial to the interest of any consumer or is
directions and in contravention of consumer rights, it may order to discontinue such
penalties against advertisement or to modify the same
false or misleading 2) If the Central Authority is of the opinion that it is necessary to impose a
advertisements – penalty in respect of such false or misleading advertisement, by a
Section 21 manufacturer or an endorser, it may, by order, impose on manufacturer or
endorser a penalty which may extend to 10 lakh rupees
3) The Central Authority may, for every subsequent contravention by a
manufacturer or endorser, impose a penalty, which may extend to 50 lakh
rupees.
4) Where the Central Authority deems it necessary, it may, by order, prohibit
the endorser of a false or misleading advertisement from making
endorsement of any product or service for a period which may extend to 1
year.
5) Central Authority may, for every subsequent contravention, prohibit such
endorser from making endorsement in respect of any product or service for
a period which may extend to 3 years.
 6) Where the Central Authority is satisfied after investigation that any person is
found to publish, or is a party to the publication of, a misleading
advertisement, it may impose on such person a penalty which may extend
to 10 lakh rupees.

Note –
 No endorser shall be liable to a penalty, if he has exercised due diligence
to verify the validity of the claims made in the advertisement regarding the
product or service being endorsed by him.
 No person shall be liable to such penalty if he proves that he had published
or arranged for the publication of such advertisement in the ordinary
course of his business:
Provided that no such defence shall be available to such person if he had
previous knowledge of the order passed by the Central Authority for
withdrawal or modification of such advertisement.

 While determining the penalty, Central Authority will consider following

factors –
 the population and the area impacted or affected by such offence;
 the frequency and duration of such offence;
 the vulnerability of the class of persons likely to be adversely
affected by such offence; and
 the gross revenue from the sales effected by virtue of such offence.
Search and seizure – After preliminary inquiry, DG or District collector has reason to believe that any
Section 22 person has violated any consumer rights or committed unfair trade practice or
causes any false or misleading advertisement to be made then it shall –
 enter into any such premises and search for any document or record or
article or any other form of evidence and seize such document, record,
article or such evidence
 make a note or an inventory of such record or article; or
 require any person to produce any record, register or other document or
article.

Maximum Period of seizure = 20 days

Note –
1) Where any article seized are subject to speedy or natural decay, the
Director General or such other officer may dispose of the article in such
manner as may be prescribed
2) If the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, obtain a sample of the goods
from the complainant, seal it and refer the sample so sealed to the
appropriate laboratory along with a direction that such laboratory to make
an analysis or test, whichever may be necessary, with a view to finding out
whether such goods suffer from any defect alleged in the complaint or
from any other defect and to report its findings thereon to the District
Commission within a period of 45 days or within such extended period as
may be granted by it
 Vexatious Search – The Director General or any other officer who knows that there are no reasonable
grounds for so doing, and yet–
a) searches, or causes to be searched any premises; or
b) seizes any record, register or other document or article,
shall, for every such offence, be punished with imprisonment for a term which may
extend to 1 year, or with fine which may extend to 10,000 rupees or with both.
Appeal – A person aggrieved by any order passed by the Central Authority under sections 20
Section 24 and 21 may file an appeal to the National Commission within a period of 30 days
from the date of receipt of such order.

[Link] Disputes Redressal Commission

Part A- District Consumer Disputes Redressal Commission

Segments Explanation
Establishment of  SG has the power to establish a District Consumer Disputes Redressal Commission,
District to be known as the District Commission, in each district of the State.
Commission –  State Government may also establish more than one District Commission in a
Section 28 district.
Composition of Each District Commission shall consist of–
District a) a President; and
Commission – b) not less than two and not more than such number of members as may be
prescribed, in consultation with the Central Government.
Qualifications of The Central Government may, by notification, make rules to provide for the –
President and a) qualifications,
members of b) method of recruitment,
District c) procedure for appointment,
Commission d) term of office,
e) resignation and removal
of the President and members of the District Commission.
Jurisdiction of District Commission shall have jurisdiction to entertain complaints where the value of the
District goods or services paid as consideration upto 50 lacs (new amendment )
Commission
(Cases to be District commission where case to be filed –
handled by A complaint shall be instituted in a District Commission within the local limits of whose
District jurisdiction –
Commission) –  the opposite party or each of the opposite parties, where there are more than
Section 34 one, at the time of the institution of the complaint,
a) ordinarily resides or
b) carries on business or
c) has a branch office or
d) personally works for gain; or
 any of the opposite parties, where there are more than one, at the time of
the institution of the complaint,
a) actually, and voluntarily resides, or
b) carries on business or
c) has a branch office, or
d) personally works for gain,
provided that in such case the permission of the District Commission is given; or
 the cause of action, wholly or in part, arises; or
 the complainant resides or personally works for gain.
Who may file 1) Consumer –
complaint? – a) to whom such goods are sold or delivered or agreed to be sold or delivered or
Section 35 such service is provided or agreed to be provided; or
b) who alleges unfair trade practice in respect of such goods or service;
2) More than 1 consumer –
More than 1 consumer where there are numerous consumers having the same
interest, with the permission of the District Commission on behalf of all the
consumers
3) Consumer Association –
Any recognised consumer association, whether the consumer to whom such goods
are sold or delivered or agreed to be sold or delivered or such service is provided
or agreed to be provided, or who alleges unfair trade practice in respect of such
goods or service, is a member of such association or not;
4) The Central Government, the Central Authority or the State Government, as the
case may be.
Note –
Complaint may be filed electronically in prescribed manner.
Proceedings A) Who shall conduct Proceedings –
before District a) Every proceeding before the District Commission shall be conducted by the
Commission – President of that Commission and at least one member, sitting together.
Section 36 b) Where a member, for any reason, is unable to conduct a proceeding till it is
completed, the President and the other member shall continue the proceeding
from the stage at which it was last heard by the previous member.

B) Power of DC –
a) On receipt of a complaint, the District Commission may admit the complaint
for being proceeded with or reject the same.
b) A complaint shall not be rejected unless an opportunity of being heard has
been given to the complainant.

C) Period within which complaint shall be accepted –

a) Complaint shall be accepted within 21 days from the date on which the
complaint was filed.
b) Where the District Commission does not decide the issue of admissibility of
the complaint within 21 days, it shall be deemed to have been admitted.
Reference to  At the first hearing of the complaint after its admission, or at any later stage, if it
mediation – appears to the District Commission that there exists elements of a settlement
Section 37 which may be acceptable to the parties then it may direct the parties to give in
writing, within 5 days, consent to have their dispute settled by mediation.
 Where the parties agree for settlement by mediation and give their consent in
writing, the District Commission shall, within 5 days of receipt of such consent,
refer the matter for mediation
Procedure on A) When DC will proceed with the complaint?
admission of a) On admission of complaint; or
complaint – b) If case was referred to mediation then on failure of settlement through
Section 38 mediation.

B) Procedure to be followed when complaint relates to any goods –

1) Send a copy of complaint to the opposite party within 21 days of admission.
2) Direct the opposite party to give his version of the case within a period of 30
days or such extended period not exceeding 15 days
3) if the opposite party on receipt of a complaint –
a) denies or disputes the allegations contained in the complaint, or
b) omits or fails to take any action to represent his case within the time given
by the District Commission,
DC will then proceed to settle the consumer dispute in the following manner –
if the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, obtain a sample of the goods
from the complainant, seal it and authenticate it and refer the sample so
sealed to the appropriate laboratory along with a direction that such
laboratory to make an analysis or test, whichever may be necessary, with a
view to finding out whether such goods suffer from any defect alleged in the
complaint or from any other defect and to report its findings thereon to the
District Commission within a period of 45 days of the receipt of the reference
or within such extended period as may be granted by it;
4) Before any sample of the goods is referred to any appropriate laboratory, DC
will require the party to deposit with the commission such fees as may be
specified, for payment to the appropriate laboratory for carrying out the
necessary analysis or test in relation to the goods in question.
5) DC will then remit the amount to the appropriate laboratory to enable it to
carry out the analysis or test and on receipt of the report from the
appropriate
 laboratory, it shall forward a copy of the report along with such remarks as it
may feel appropriate to the opposite party;
6) if any of the parties disputes the correctness of the findings of the appropriate
laboratory, or disputes the correctness of the methods of analysis or test
adopted by the appropriate laboratory, then DC will direct the opposite party
or the complainant to submit in writing his objections with regard to the
report made by the appropriate laboratory;
7) DC will give both the parties an opportunity of being heard.

C) Procedure to be followed when complaint relates to any services or where

complaint relates to goods but procedure under point B cannot be followed –
1) Direct the opposite party to give his version of the case within a period of 30
days or such extended period not exceeding 15 days.
2) if the opposite party on receipt of a complaint –
a) denies or disputes the allegations contained in the complaint, or
b) omits or fails to take any action to represent his case within the time given
by the District Commission,
DC will then proceed to settle the consumer dispute in the following manner –
a) if the opposite party denies or disputes the allegations contained in the
complaint –
on the basis of evidence brought to its notice by the complainant and the
opposite party, or
b) where the opposite party omits or fails to take any action to
represent his case within the time given by the Commission –
ex parte on the basis of evidence brought to its notice by the complainant.
3) Decide the complaint on merits if the complainant fails to appear on the date
of hearing

D) Other Important Points –

a) Proceedings conducted according to points B and C mentioned above shall not
be called in question in any court on the ground that the principles of natural
justice have not been complied with.
b) Every complaint shall be heard by the District Commission on the basis
of affidavit and documentary evidence placed on record.
c) where an application is made for hearing or for examination of parties in
person or through video conferencing then DC may allow it on sufficient cause
being shown and after recording its reasons in writing.
d) DC has the power to pass interim orders during the pendency of the
complaint.

E) Time within which proceedings shall be completed –

a) where the complaint does not require analysis or testing of commodities –
within a period of 3 months from the date of receipt of notice by opposite
party
b) if the complaint requires analysis or testing of commodities –
within five months of receipt of notice by opposite party
 c) no adjournment shall ordinarily be granted by the District Commission unless
sufficient cause is shown and the reasons for grant of adjournment have been
recorded in writing by the Commission
d) if DC resolves the complaint after the maximum time allowed then it shall
record the reasons in writing for the delay.

F) Powers of DC –
District Commission shall have the same powers as are vested in a civil court under
the Code of Civil Procedure, 1908 while trying a suit in respect of the following
matters –
(a) the summoning and enforcing the attendance of any defendant or witness and
examining the witness on oath;
(b) requiring the discovery and production of any document or other material
object as evidence;
(c) receiving of evidence on affidavits;
(d) the requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(e) issuing of commissions for the examination of any witness, or document; and
(f) any other matter which may be prescribed by the Central Government.

Note –
Every proceeding before the District Commission shall be deemed to be a judicial
proceeding
Findings of Where the District Commission is satisfied that –
District  the goods complained against suffer from any of the defects specified in the
Commission – complaint; or
Section 39  that any of the allegations contained in the complaint about the services or
any unfair trade practices is correct; or
 claims for compensation under product liability are proved
Then it shall issue an order to the opposite party directing him to do one or more of the
following –
a) to remove the defect pointed out by the appropriate laboratory from the goods in
question;
b) to replace the goods with new goods of similar description which shall be free
from any defect;
c) to return to the complainant the price or the charges paid by the complainant
along with such interest on such price or charges as may be decided;
d) to remove the defects in goods or deficiencies in the services in question;
e) to discontinue the unfair trade practice or restrictive trade practice and not to
repeat them;
f) not to offer the hazardous or unsafe goods for sale;
g) to withdraw the hazardous goods from being offered for sale;
h) to cease manufacture of hazardous goods and to desist from offering services
which are hazardous in nature;
i) to pay such amount as may be awarded by it as compensation to the
consumer for any loss or injury suffered by the consumer due to the negligence
of the opposite party
 j) to pay such amount as may be awarded by it as compensation in a product
liability action
k) to pay such sum as may be determined by it, if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not identifiable
conveniently. it may be noted that the minimum amount of sum so payable shall
not be less than25% of the value of such defective goods sold or service
provided, as the case may be, to such consumers;
l) to issue corrective advertisement to neutralise the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such
misleading advertisement;
m) to provide for adequate costs to parties; and
n) to cease and desist from issuing any misleading advertisement.

Note –
 If there is difference in opinions of president and a member then they shall state
the point or points on which they differ and refer the same to another member for
hearing on such point or points and the opinion of the majority shall be the order
of the District Commission.
 The other member shall give his opinion on such point or points referred to him
within a period of one month from the date of such reference.
 Every order made by the District Commission shall be signed by the President and
the member who conducted the proceeding.
Review by District DC has the power to review any of the order passed by it if there is an error apparent on
Commission in the face of the record, either of its own motion or on an application made by any of the
Certain Case – parties within 30 days of such order
Section 40
Appeal against 1) Any person aggrieved by an order made by the District Commission may prefer an
order of District appeal against such order to the State Commission within a period of 45 days.
Commission – 2) State Commission may entertain an appeal after the expiry of the said period of
Section 41 forty-five days, if it is satisfied that there was sufficient cause for not filing it within
that period

Conditions for appeal before State Commission (SC) –

1) For making appeal to SC, person who is required to pay any amount in terms of
an order of the District Commission shall first deposit 50% of the amount in the
manner as may be prescribed
2) Appeal cannot be made if the parties have already agreed for settlement through
mediation.

Part B- State Consumer Disputes Redressal Commission –

Segments Explanation
Establishment of SG has the power to establish a State Consumer Disputes Redressal Commission, to be
State Commission known as the State Commission, in the State
– Section 42
Composition of SC Each State Commission shall consist of –
– a) a President; and
 b) not less than 4 or not more than such number of members as may be prescribed in
consultation with the Central Government.
Qualifications, The Central Government may, by notification, make rules to provide for the –
etc., of President a) qualifications,
and members of b) method of recruitment,
State Commission c) procedure for appointment,
d) term of office,
e) resignation and removal
of the President and members of the State Commission.
Jurisdiction of State Commission shall have jurisdiction to entertain complaints –
State Commission a) where the value of the goods or services paid as consideration is more than 50
– Section 47 lacs to 2 crores.(new amendment )
b) complaints against unfair contracts, where the value of goods or services paid
as consideration does not exceed ten crore rupees;
c) appeals against the orders of any District Commission within the State; and

Note –
 SC shall also has the power 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.
 jurisdiction, powers and authority of the State Commission may be exercised by
Benches constituted by the President with one or more members as the President
may deem fit.
Jurisdiction State commission where case to be filed –
where case A complaint shall be instituted in a District Commission within the local limits of whose
should be filed – jurisdiction –
 the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries
on business or has a branch office or personally works for gain; or
 any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office, or personally works for gain, provided that in such
case the permission of the State Commission is given; or
 the cause of action, wholly or in part, arises; or
 the complainant resides or personally works for gain.
Procedure 1) Provisions relating to complaints under sections 35, 36, 37, 38 and 39 shall,
applicable to with such modifications as may be necessary, be applicable to the disposal of
State Commission complaints by the State Commission
– 2) The State Commission may also declare any terms of contract, which is unfair
Section 49 to any consumer, to be null and void.
Review by State SC has the power to review any of the order passed by it if there is an error apparent
Commission in on the face of the record, either of its own motion or on an application made by any of
Certain Case the parties within thirty days of such order.
– Section 50
 Appeal to 1) Any person aggrieved by an order made by the State Commission may prefer an
National appeal against such order to the National Commission within a period of 30 days.
Commission – 2) National Commission may entertain an appeal after the expiry of the said period of
Section 51 30 days, if it is satisfied that there was sufficient cause for not filing it within that
period

Conditions for appeal before State Commission (SC) –

 For making appeal to NC, person who is required to pay any amount in terms of
an order of the State Commission shall first deposit 50% of the amount in the
manner as may be prescribed
 Appeal cannot be made if the parties have already agreed for settlement through
mediation.
 An appeal shall lie to the National Commission from any order passed in appeal
by any State Commission, if the National Commission is satisfied that the case
involves a substantial question of law.
 An appeal may lie to the National Commission from an order passed ex parte
by the State Commission.
Hearing of appeal  An appeal filed before the State Commission or the National Commission shall
by State be heard and disposed within a period of 90 days from the date of its admission.
Commission or  Adjournment shall not ordinarily be granted by the State Commission or the
National National Commission unless sufficient cause is shown and the reasons for grant of
Commission – adjournment have been recorded in writing by such Commission.
Section 52  In the event of an appeal being disposed of after the period so specified, the State
Commission or the National Commission, shall record in writing the reasons for
the same at the time of disposing of the said appeal

Part C- National Consumer Disputes Redressal Commission

SEGMENTS Explanation
Establishment of CG has the power to establish National Consumer Disputes Redressal Commission, to be
National known as the National Commission.
Commission –
Section 53
Composition of National Commission shall consist of–
NC – Section 54 a) a President; and
b) not less than 4 and not more than such number of members as may be prescribed.
Qualifications, The Central Government may, by notification, make rules to provide for the –
etc., of a) qualifications,
President and b) method of recruitment,
members of c) procedure for appointment,
National d) term of office,
Commission – e) resignation and removal
Section 55 of the President and members of the National Commission.

Tenure of office –
a) President and members of the National Commission shall hold office for a
maximum period of 5 years and shall be eligible for reappointment.
 b) President or members shall not hold office as such after he has attained such age
as specified in the rules made by the Central Government which shall not exceed
–
1) in the case of the President, the age of 70;
2) in the case of any other member, the age of 67 years
Jurisdiction of National Commission shall have jurisdiction to entertain complaints –
National 1) where the value of the goods or services paid as consideration exceed 2 crore
Commission – rupees.(new amendment )
Section 58 2) complaints against unfair contracts, where the value of goods or services paid
as consideration exceeds ten crore rupees;
3) appeals against the orders of any state commission; and
4) Appeals against the orders of the Central Authority

Note –
 NC shall also has the power 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 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.
 Jurisdiction, powers and authority of the National Commission may be exercised
by Benches constituted by the President with one or more members as the
President may deem fit.
Procedure 1) Provisions relating to complaints under sections 35, 36, 37, 38 and 39 shall, with
Applicable to such modifications as may be considered necessary, be applicable to the
National disposal of complaints by the National Commission.
Commission – 2) National Commission may also declare any terms of contract, which is unfair to
Section 59 any consumer to be null and void.
Review by NC has the power to review any of the order passed by it if there is an error apparent on
National the face of the record, either of its own motion or on an application made by any of the
Commission in parties within thirty days of such order
Certain Cases
– Section 60
Power to set Where an order is passed by the National Commission ex parte, the aggrieved party may
aside ex parte make an application to the Commission for setting aside such order.
Orders –
Appeal against 1) Any person, aggrieved by an order made by the National Commission may prefer
Order of National an appeal against such order to the Supreme Court within a period of 30 days
Commission – from the date of the order.
Section 67 2) Supreme Court may entertain an appeal after the expiry of the said period of
thirty days if it is satisfied that there was sufficient cause for not filing it within that
period.
3) No appeal by a person who is required to pay any amount in terms of an order
of the National Commission shall be entertained by the Supreme Court unless
that person has deposited 50% of that amount in the manner as may be
prescribed.

9. Limitation Period – Section 69

  District Commission, the State Commission or the National Commission shall
not admit a complaint unless it is filed within two years from the date on
which the cause of action has arisen.
 However, complaint may be entertained if there was sufficient cause.

Time period for disposal of complaints: (very important new amendment )

The Consumer Protection Act, 2019 stipulates that “every complaint shall be
disposed of as expeditiously as possible and endeavour shall be made to decide the
complaint within a period of three months from the date of receipt of notice by
opposite party where the complaint does not require analysis or testing of
commodities and within 5 months if it requires analysis or testing of commodities.”

10. Penalty for Noncompliance of Order – Section 72

Whoever fails to comply with any order made by the District Commission or the State
Commission or the National Commission, shall be punishable with imprisonment for a
term which shall not be less than 1 month, but which may extend to 3 years, or with
fine, which shall not be less than twenty-five thousand rupees, but which may extend
to one lakh rupees, or with both.

11. Appeal against Order Passed under Section 72 – Section 73

1) An appeal shall lie, both on facts and on law from–
(a) the order made by the District Commission to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court.
2) Every appeal shall be preferred within a period of 30 days from the date of
order of a District Commission or a State Commission or the National
Commission, as the case may be.
3) Appeal may be entertained even after expiry of 30 days if there is sufficient
cause.
4) Appeal shall not lie before any court, from any order of a District
Commission or a State Commission or the National Commission.

12. Mediation ( very important )

A mediator is a neutral third party who assists the parties in a

disagreement in coming to a mutually accepted resolution. Mediation is a
method of resolving disputes. The Consumer Protection Act of 2019
encourages mediation as a quick, easy, and affordable way to settle
consumer disputes.

1)About Consumer Mediation Cell –

a) Section 74 empowers the State Government to establish a

consumer mediation cell to be attached to each of the District
 Commissions and the State Commissions of that State.
b) Central Government also empowers to establish a consumer
mediation cell to be attached to the National Commission and
each of the regional Benches.

2)Every consumer mediation cell shall maintain –

c) a list of empanelled mediators;
d) a list of cases handled by the cell;
e) record of proceeding; and
f) any other information as may be specified by regulations.
3)Every consumer mediation cell shall submit a quarterly report to the
District Commission, State Commission or the National Commission to
which it is attached.
4)Empanelment of Mediators – Section 75

 For the purpose of mediation, the National Commission or the State Commission
or the District Commission, as the case may be, shall prepare a panel of the
mediators to be maintained by the consumer mediation cell attached to it, on the
recommendation of a selection committee.
 Selection Committee consists of the President and a member of that Commission.
 The panel of mediators shall be valid for a period of 5 years, and
the empanelled mediators shall be eligible to be considered for re-
empanelment for another term.

Note –
The qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empaneled mediators, the fee
payable to empaneled mediator, the terms and conditions for empanelment, the code
of conduct for empaneled mediators, the grounds on which, and the manner in which,
empaneled mediators shall be removed or empanelment shall be cancelled and other
matters relating thereto, shall be such as may be specified by regulations.
5)Duty of Mediator to Disclose Certain Fact – Section 77
It shall be the duty of the mediator to disclose –
- any personal, professional or financial interest in the outcome of the consumer
dispute;
- the circumstances which may give rise to a justifiable doubt
as to his independence or impartiality; and
- such other facts as may be specified by regulations.

6)Replacement of Mediator in Certain Cases – Section 78

Where the District Commission or the State Commission or the National
Commission, as the case may be, is satisfied, on the information furnished by the
mediator or on the information received from any other person including parties to
the complaint and after hearing the mediator, it shall replace such mediator by
another mediator.
7)Procedure for Mediation – Section 79 (very important )
  Mediation shall be held in the consumer mediation cell attached to the District
Commission, the State Commission or the National Commission.
 Where a consumer dispute is referred for mediation by the District Commission
or the State Commission or the National Commission, as the case may be, the
mediator nominated by such Commission shall have regard to the rights and
obligations of the parties, the usages of trade, if any, the circumstances giving rise
to the consumer dispute and such other relevant factors, as he may deem
necessary and shall be guided by the principles of natural justice while carrying
out mediation.
 The mediator so nominated shall conduct mediation within such time and in
such manner as may be specified by regulations.

8)Settlement through Mediation – Section 80

 Pursuant to mediation, if an agreement is reached between the parties with
respect to all of the issues involved in the consumer dispute or with respect to
only some of the issues, the terms of such agreement shall be recorded in
writing, and signed by the parties to such dispute or their authorised
representatives.
 Mediator shall prepare a settlement report of the settlement and
forward the signed agreement along with such report to the
concerned Commission.
 Where no agreement is reached between the parties within the
specified time or the mediator is of the opinion that settlement is
not possible, he shall prepare his report accordingly and submit the
same to the concerned Commission.

9)Recording Settlement and Passing of Order – Section 81

 The District Commission or the State Commission or the National Commission,
as the case may be, shall, within seven days of the receipt of the settlement
report, pass suitable order recording such settlement of consumer dispute and
dispose of the matter.
 Where the consumer dispute is settled only in part, the District
Commission or the State Commission or the National Commission,
as the case may be, shall record settlement of the issues which have
been so settled and continue to hear other issues involved in such
consumer dispute.
 Where the consumer dispute could not be settled by mediation, the
District Commission or the State Commission or the National
Commission, as the case may be, shall continue to hear all the issues
involved in such consumer dispute.

13) E-Filing E-Daakhil (very important new amendment )

The Act also provides consumers the option of filing complaint electronically. To
facilitate consumers in filing their complaint online, the Central Government has set up
the E-Daakhil Portal, which provides a hassle-free, speedy and inexpensive facility to
consumers around the country to conveniently approach the relevant consumer forum,
dispensing the need to travel and be physically present to file their grievance. E-Daakhil
has many features like e-Notice, case document downloads link & VC hearing link, filing
written response by opposite party, filing rejoinder by complainant and alerts via
SMS/Email. Presently, facility of E-Daakhil is available in 544 consumer commissions,
which includes the National Commission and consumer commissions in 21 states and 3
UTs. So far, more than 10,000 cases have been filed using the E-Daakhil Portal and more
than 43000 users have registered on the portal.

14. Offences and penalties under Consumer Protection Act, 2019 (very
important )

The offences and penalties listed under this Act are mentioned as follows.

1. Punishment for false and misleading advertisements: Under Section 89 of

the Act any manufacturer or service provider who promotes false or
misleading advertisements will be punished with imprisonment for a term
that may extend to two years and with fine that may extend to ten lakh
rupees.
2. Punishment for manufacturing, selling, distributing products containing
adulterants: Under Section 90 of the Consumer Protection Act, 2019 any
person who sells, manufactures, distributes products containing adulterants
shall be penalised in case of the following circumstances;

 If the adulterated product does not cause any injury to the consumer then the
term for imprisonment will extend to a period of six months and fine which
may extend to one lakh rupees,
 If the product containing adulterant causes injury not amounting to grievous
hurt then the term for imprisonment will extend to a period of one year and
fine which may extend to three lakh rupees,
 If the product containing adulterant causes injury amounting to grievous hurt
then the term for imprisonment will extend to a period of seven years and
fine which may extend to five lakh rupees,
 If the product results in causing death to the consumer then the term for
imprisonment will be for a period of seven years which may extend to life
imprisonment and fine not less than ten lakh rupees.

3. Punishment for manufacturing, selling, and distributing spurious

products: Section 91 states that any person who sells, manufactures, or
distributes spurious products shall be punished :

 causing injury not amounting to grievous hurt to the consumer, with imprisonment
for a term which may extend to one year and with fine which may extend to three
lakh rupees;

 causing injury resulting in grievous hurt to the consumer, with imprisonment for a
term which may extend to seven years and with fine which may extend to five
 lakh rupees;

 results in the death of a consumer, with imprisonment for a term which shall not
be less than seven years, but may extend to imprisonment for life and with fine
which shall not be less than ten lakh rupees.
 The offences under clauses (b) and (c) of sub-section (1) shall be cognizable and
non-bailable.
 Notwithstanding the punishment under sub-section (1), the court may, in case of
first conviction, suspend any licence issued to the person referred to in that sub-
section, under any law for the time being in force, for a period up to two years,
and in case of second or subsequent conviction, cancel the licence.