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Consumer Protection Act, 2019

The Consumer Protection Act, 2019 was enacted to replace the Consumer Protection Act, 1986 and to strengthen consumer rights in India. The new Act came into effect on 9th August 2019 to address modern consumer concerns, especially in e-commerce, misleading advertisements, and unfair trade practices.

Objectives of the Consumer Protection Act

  • Protect consumers from unfair trade practices.
  • Provide fast and cost-effective solutions to consumer grievances.
  • Promote consumer awareness and education.
  • Ensure fair transactions in the marketplace.
  • Establish authorities for consumer dispute resolution.

Key Definitions (Section 2 of CPA, 2019)

1. Consumer (Sec 2(7))

A consumer is a person who:

  • Buys goods for personal use (not for resale or commercial purposes).
  • Hires or avails services for a price.
  • Engages in offline or online transactions, including e-commerce and multi-level marketing.

Who is NOT a Consumer?

  • A person who buys goods for resale or commercial purposes.
  • A person who obtains services without paying consideration.

2. Consumer Dispute (Sec 2(8))

A consumer dispute arises when a seller or service provider denies or disputes the allegations** made in a consumer complaint.

Example: A consumer buys a defective mobile phone and the seller refuses to provide a refund or replacement, claiming the product was in perfect condition at the time of sale.

3. Complaint (Sec 2(6))

A complaint is a written allegation made by a consumer against a seller or service provider for:

  • Defective goods
  • Deficient services
  • Charging excessive prices
  • Selling hazardous goods or services
  • Unfair trade practices

4. Defect (Sec 2(10))

A defect is any fault, imperfection, or shortcoming in a product's quality, quantity, purity, or standard, violating contract terms or legal requirements.

Example: A car with faulty brakes that do not meet safety standards.

5. Deficiency (Sec 2(11))

A deficiency refers to shortcomings in the quality or manner of performance of a service, including:

  • Negligence causing consumer harm
  • Failure to provide relevant information

Example: A travel agency failing to book hotel accommodations despite receiving full payment.

6. Service (Sec 2(42))

A service includes any facility provided in:

  • Banking
  • Insurance
  • Transport
  • Telecom
  • Education
  • Healthcare
  • Entertainment

It does NOT include: Free services or contracts of personal service (e.g., employer-employee contracts).

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