The Consumer Protection Act, 2019 (Act No. 35 of 2019) is an Act of the Parliament of India that provides for the protection of consumer interests and establishes authorities for the timely and effective settlement of consumer disputes. Introduced in the Lok Sabha on July 8, 2019, by Minister Ram Vilas Paswan, it received Presidential assent on August 9, 2019, and came into effect on July 20, 2020. The Act repealed and replaced the three-decade-old Consumer Protection Act, 1986, which was inadequate to address the challenges posed by the rise of e-commerce and digital transactions.
The Act works by establishing a new regulatory body, the Central Consumer Protection Authority (CCPA), under Section 10(1), which has the power to take suo motu action, order product recalls, and impose penalties for false or misleading advertisements. A major mechanism introduced is Product Liability under Section 2(34), which holds manufacturers, service providers, and sellers responsible for harm caused by defective products or deficient services. The Act also significantly expanded the definition of 'consumer' to include transactions conducted through all modes, including online purchases and teleshopping.
It maintains the three-tier quasi-judicial system of Consumer Disputes Redressal Commissions (CDRCs) but revised their pecuniary jurisdiction: District Commissions handle complaints up to ₹1 crore, State Commissions between ₹1 crore and ₹10 crore, and the National Commission above ₹10 crore. The Act connects directly to the Consumer Protection (E-Commerce) Rules, 2020, which mandate specific duties for e-commerce entities, such as disclosing seller details and establishing grievance redressal mechanisms. Consumers can now file complaints electronically via the E-Daakhil portal and at the place of their residence or work, a key change from the previous law.