If you as a consumer have faced serious injuries due to the harm of any of the goods or services provider and are still unsure as to how you should take stringent Actions against that goods or the service provider then you must know about your rights specified under the consumer protection Act, 2019 hen you who should understand the difference between these Acts.
The Consumer Protection Act 1986
Before the advent of this Act, Consumers were facing a lot of difficulties in the form of adulteration, low-quality goods, misleading products or services, etc and this is why it becomes a necessity to have legislation that will deal with all these flaws.
Initially, after independence the government developed various legislation to safeguard the interest of consumers and some of them were the Drugs Control Act 1950, the Prevention of Food Adulteration Act, 1954, etc. But all these legislation were inadequate to take stringent Action and this is why this Act came into force.
The Objective of the Consumer Protection Act 1986:
The main objective of the Act was to protect and promote all the rights of consumers
- To establish a consumer dispute redressal agency
- Establishing economic procedures to address the grievances of the consumers.
Rights established and protected by the Act
- Right to the safety of property and life from any hazardous goods.
- Right to choice of a variety of goods and services.
- Right to lawl the information about the quantity, quality potency, standard and the prices of goods and services.
- Right to make any representation and be heard
- Right to consumer education.
- Right, to seek redressal against restrictive trade practices, unfair trade practices or exploitation of the consumers.
Limitations of the Consumer Protection Act, 1986
- Lack of Consumer Forums: Due to the lack of the proper infrastructure facilities the need to have reform was required. It came to the attention of the authorities that some districts lack the necessary consumer forums. Also, no separate buildings, no separate staff, and no adequate resources are there to provide the disposal of consumer disputes
- Lack of Knowledge and Awareness of the Consumers: Sometimes, consumers do not have the required knowledge and awareness to take action against the wrongs done to them by the consumers. These consumers are usually from the backward sections of society
- Pendency of the Consumer Disputes: Section 13 (3A) of the Consumer Protection Act provides 3 months as the timeline for the resolution of the nominal cases and 5 months in the case which requires investigation of the goods. But in reality these timelines are not being adhered to and a lot of backlogs have been created due to this Act.
- Non-inclusion of the e-Commerce Platforms: The Consumer Protection Act, 1986 was an age-old Act that did not incorporate the provisions related to e-commerce and this was why an amendment to the Act was required.
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The Consumer Protection Act, 2019
We have already understood the drawbacks of the Consumer Protection all, 1986 which makes it essential to repeal the older legislation and draft an altogether new one. So, in order to remove and deal with the drawbacks of the Consumer Protection Act, 1986 the Consumer Protection Act, 2019 is drafted.
Apart from the above view this Act also aims towards strengthening and modernising the consumer legislations in India. The main aim of this legislation is to provide consumers with more accessible and efficient ways to address and deal with the complaints and different concerns of consumers. The 2019 Act incorporates provisions related to the covering of the various types of businesses and has a wider applicability.
Now, let’s learn in-depth about the difference between the Consumer Protection Act 1986 and the Consumer Protection Act, 2019.
The distinction between the Consumer Protection Act 1986 and the Consumer Protection Act 2019.
- Appointment of the Regulatory: In the CPA 1986 there were no regulations to overseas and addressing all the unfair trade practices performed by the seller.in simpler terms, this means that the absence of a regulator makes it difficult for the consumers to have limited recourse to the unfair prices of the sellers and manufacturers.
With the amendment of 2019 an introduction to the Central Consumer Protection Authority (CCPA) is made. This regulatory body ensures to safeguarding of the welfare of the consumer and actions against unfair trade practices. This authority also has the authority to investigate and thereby penalising the business if that engages in deceptive practices.
- E-commerce: The main drawback of the CPA 1986 is that there were no provisions related to e-commerce which leaves the consumers exposed to unfair trade practices and potential fraud. The CPA 2019 on the other hand pressed upon the importance of regulating the e-commerce transaction. CPA 2019 incorporates the provisions related to the protection of e-commerce consumers. The new Act aims to provide protection to commerce transactions at the same level as that enjoyed by brick-and-mortar transactions.
- Jurisdiction: In the CPA 1986 the jurisdictional limitation was a major drawback as only the complainant was required to fill the complaint in the district court where the product was purchased but this becomes an issue with online purchases and this is why with the CPA 2019 the jurisdictional limitation has been removed. With the new Act, the consumers can file the complaint from their place of residence irrespective of the location of the seller.
- Product Liability: Earlier in the CPA 1986 the consumers were required to file the suits related to the price, quality, Or the value of the product in the civil courts instead of the consumer court. This process was costly and at the same time-consuming. With the 2019 Act the consumers can now file the suits for the product-related issues in the consumer court. This can also include seeking damages or compensation for any substandard goods or services against the sellers.
- Jurisdiction: With the CPA 2019 the pecuniary jurisdictions of the consumer courts have been raised. this is done to provide proper justice and remedies to the consumers in the case of violation of their rights. The changes in the pecuniary jurisdiction that has been bought are. The changes in the Pecuniary Jurisdiction are as:
- The limits of the District Commission are raised from 20 lakhs to 1 crore.
- The limits of the State Commission are raised from 20 lakhs to 10 crore.
- The limits of the National Commission have raised from 1 crore to above 10 crore.
- Addressing unfair terms of the Contract: With the CPA 2019 there has been a steep change by empowering the state commission and the national commission to declare a contract as null and void for the terms of the contract that were deemed unfair to consumers and thereby seeking remedies through these courts.
- Mediation Cells: Under the terms of the CPA 1986 there are no provisions for establishing mediation cells this means that the businesses and consumers had only to rely upon formal legal proceedings which are at the same time costly and time-consuming. But with the introduction of the CPA 2019 the meditation cells have been introduced which allows the parties to amicably resolve the disputes through the alternative dispute redressal mechanism before opting for the regal Action in the Consumer Forums.
- Revision in the Composition of the State Commission: With the onset of the CPA 2019 the composition of the State Commission has been revived where the older legislation includes one president and two other members as the composition of the state commission while with the new CPA 2019 the composition has been increased to one president and four other members.
- Deciding factor of the Jurisdiction: Under the older CPA 1986 the jurisdiction is determined on the basis of the MRP while under the new CPA 2019 the discounted price of the actual price to decide the jurisdiction.
- Changes in the Penalties: The penalties for non-compliance of the penalties granted for the offence of misleading advertisements were initially used to be under the CPA 1986 as imprisonment between one month and three years or a fine between Rs 2,000 to Rs 10,000 of both. But with the CPA 2019 the imprisonment can be upto three years or a fine not Less than Rs 25000 which can be extended upto 1 lakh, or both.
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Tabular differentiation between the Consumer Protection Act, 1986 and the Consumer Protection Act, 2019
Points of Differentiation | Consumer Protection Act 1986 | Consumer Protection Act 2019 |
Appointment of the Regulatory | No provisions for the appointment of a Central Consumer Protection Authority (CCPA) | The Act introduces the regulatory authority as the Central Consumer Protection Authority (CCPA) |
Mediation Cells | No provisions for the amicable settlement of the disputes | There are provisions for the amicable settlement of the dispute |
Addressing unfair terms of the Contract | There were no provisions for addressing unfair terms of the Contract | The Act introduced the provisions for addressing unfair terms of the Contract |
Increment in the Pecuniary Jurisdiction of the Consumer Forums | The limits of the District Forums were 20 lakhs. The limits of the State Commission were 20 lakhs.The limits of the National Commission were 1 crore | The limits of the District Forums are raised from 20 lakhs to 1 crore.The limits of the State Commission are raised from 20 lakhs to 10 crore.The limits of the National Commission have raised from 1 crore to above 10 crore. |
Product Quality | There were no provisions to file complaints in the Consumer Courts for the quality and the price of the products | The Act introduced provisions for filing complaints in the Consumer Courts for the quality and the price of products. |
Conclusion
There were lots of changes and reformation required in the Consumer Protection Act 1986 and this is why the above act was repeated and the new Consumer Protection Act 2019 was introduced to include the provisions related to e-commerce, alternative dispute resolution,re-composition of the state commission, etc. This act tries to bring speedy justice to the consumers and the security of their rights
Understand your legal options under the latest Consumer Protection Act. Consult with our experts online and resolve disputes efficiently.
Frequently Asked Questions
Q1. What is the difference between Consumer Protection Act, 2019 and 1986?
Ans1. With the amendment to the Consumer Protection Act the definition of the consumer has been widened to include the buying of goods and services online.
Q2. What are the objectives of the Consumer Protection Act 1986 and 2019?
Ans2. The main objective of both the Consumer Protection Acts is to protect consumers from hazardous goods and services
Q3. What is the Consumer Protection Act 1986 and 2019?
Ans3. The aim of both these Acts was to protect the interests of the consumers and to thereby establish authorities for timely and effective administration.
Q4. What are the major changes in the Consumer Protection Act 2019?
Ans4. The new Act provides the power to the central government to establish central consumer protection authority
Q5. What are the salient features of the Consumer Protection Act 2019?
Ans5. The salient features of the Act provide specific provisions related to e-commerce, product liability, misleading advertisements, etc.
Q6. What is the main aim of the Consumer Protection Act, 1986?
Ans6. The main aim of the Act was to protect consumers against defective goods, unfair trade practices, etc
Q7. Which consumer rights are not guaranteed under the Consumer Protection Act, 1986?
Ans7. Right to credit purchase is not guaranteed under the Consumer Protection Act, 1986
Q8. What does copra stand for?
Ans8. Copra stands for the Consumer Protection Act, 1986.
Q9. Which Act replaced the Protection Act?
Ans9. Consumer Protection Act 2019 replaced the consumer protection Act, 1986.
Q10. What is the three-tier system of the Consumer Protection Act?
Ans10. The three-tier system are National Consumer Dispute Redressal Commission State Consumer Dispute Redressal Commission and the District Consumer Dispute Redressal Commission