Consumer Protection Act, 1986 vs Consumer Protection Act, 2019
Consumer protection is necessary because the market functions according to the demand of the consumers. If the demand increases, the supply increases and if the demand decreases, then the supply also decreases. Earlier, the concept of ‘caveat emptor’ which means “let the buyer beware” was the ideology of the market. There was no duty or responsibility placed upon the seller. The buyer had to be cautious and buy the product after examining and making sure there was no defect.
As competitions arose in the market, the sellers began using unfair trade practices to get an edge over their competitors. This would include poor quality raw materials, adulteration and even using false or misleading advertisements and informations. The buyer was affected and the seller was taking advantage of the helplessness of the buyers.
Importance of Consumer Protection Act
- Sometimes the customer may not be the consumer. The product may be bought by a customer and either the customer can use the product thereby making him the consumer or else he can resell it and the buyer will be the consumer. CPA protects both the customer and the consumer.
- The Consumer Protection Act educates customers about their rights and responsibilities
- It also helps the consumers with their grievances and guides them to speedy remedies.
Various Laws enacted by the government for protecting the consumers
Various Laws enacted by the government for protecting the consumers
- Consumer Protection Act 1986
- Indian Contract Act 1872
- Sale of Goods Act 1930
- Essential Commodities Act 1955
- Prevention of Food Adulteration Act 1954
- Standards of Weights and Measures Act 1976
- Competition Act 2000
Key Features of Consumer Protection Act 2019
The revised Consumer Protection Act provides for the establishment of central consumer protection authority which protect, promote and enforce the right of consumers. It also has the authority to impose penalties on the violators of consumer rights. The regulatory moves will be aimed at manufacturers, sellers and service providers. It will be headed by the Directorate General.
Consumer Dispute Redressal Commision (CDRC)
In the new CPA, there is a provision to set up CDRCs at National, State and District level. The CDRCs will oversee complaints related to : Overcharging Unfair Trade Practices Sale of hazardous goods and services Sale of defective goods and services The Consumer Dispute Redressal Commision at the national level will hear complaints for goods valued at more than ₹10 crores, the CDRCs at the state level will hear complaints between ₹1 crore upto ₹10 crores while the CDRCs at the district level will hear complaints for goods or services valued at less than ₹1 crore.
Comparison between Consumer Protection Act 1986 and Consumer Protection Act 2019
| CPA 1986 | CPA 2019 |
| No separate regulator | Central Consumer Protection Authority was formed |
| Complaints had to be filed in the consumer court where the seller resides | Complaints can be filled in the consumer court where the buyer resides or works |
| E-Commerce had no special provision | All rules of direct selling was extended to e-Commerce |
| No mediation cells | Settlements through mediation is allowed |
| District upto ₹20 lacs | District upto ₹1 crore |
| State upto ₹1 crore | State upto ₹10 crore |
| National above ₹1 crore | National above ₹10 crore |
Aishwarya Says:
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