Consumer Protection Act 1986 was amended in 2019 as new ways of exchange of goods started taking place. The concept that a person in Bangalore is just a few clicks away from buying a product in Delhi and get it delivered to his doorstep exposed the consumer to a whole new set of problems, for which there was no provision in the old act of 1986.
There were 6 key areas where the amendment was made in the 1986 act. They were:-
- Product Liability
- Pecuniary jurisdiction
- Mediation cells
Let us walk through the changes in the key areas:-
Table of Contents
In Consumer Protection Act of 1986, there was no regulator to look after common unfair practises done by sellers. But in the Consumer Protection Act of 2019, a separate regulator was formed which will look after consumer’s welfare.
The regulator is CCPA (Central Consumer Protection Authority)
According to the 1986 act, a consumer case can be filed only in the court of the district from where the product was purchased.
This was causing a huge problem in the current times when e-commerce is becoming a key player in the retail sector.
In the 2019 act, this restriction has been removed and now the consumer can file the case from his place of residence against the seller, regardless of the place of residence of the seller.
In the act of 1986, the consumer could not sue the seller for the price, quality or value of the product in a consumer court. The consumer had to file the suit in the civil court.
But in the act of 2019, this has been amended and a provision is added to sue the seller for any issue regarding the product in a consumer court and can claim damages in form of compensation from the seller.
The limit on the compensation each court can grant has been increased in the act of 2019.
The limits of district court have been raised from 20lakh to 1cr.
The limits of state court have been raised from 20lakh to 10cr.
The supreme court has raised from above 1 cr to above10cr.
In the act of 1986, there was no concept of E-Commerce and thus if a seller cheats the consumer through the E-commerce medium, there were many hurdles for the consumer to avail legal remedies.
This changed in the new act of 2019, a consumer can sue a seller who has cheated him through the online medium.
Earlier there was no provision for mediation (to settle down things) between the parties, but there is a provision in the Consumer Protection Act of 2019, making mediation valid where both the parties have the power to settle things.
To read more on Consumer Protection Act, checkout this article :-