Difference Between Consumer Protection Act 1986 and Consumer Protection Act 2019

The Consumer Protection Act 1986 and the Consumer Protection Act 2019 are pivotal legislations in India, aimed at safeguarding the interests and rights of consumers in an ever-evolving marketplace.

While the former served as a pioneering step towards consumer protection, the latter represents a substantial reform to adapt to the changing dynamics of commerce, including the surge in e-commerce activities. The introduction of the Central Consumer Protection Authority (CCPA) and the removal of jurisdictional limitations are just a few of the significant enhancements brought forth by the 2019 act.

These acts, although separated by over three decades, both share the common goal of ensuring consumers are treated fairly and provided with accessible avenues for redressal, with the 2019 act addressing the complexities of modern consumer transactions.

This comparison will delve into the key difference between Consumer Protection Act 1986 and Consumer Protection Act 2019, shedding light on how the 2019 act has evolved to address contemporary consumer needs and challenges.

Consumer Protection Act 1986

Consumer Protection Act 1986 served as a significant step towards safeguarding consumer rights and addressing their grievances. It was applicable throughout India, with the exception of Jammu and Kashmir. The act underwent amendments in 2002, which came into effect in March 2003, likely to adapt it to changing consumer needs and market dynamics.

Consumer Protection Act 2019

Consumer Protection Act 2019, on the other hand, replaced the earlier act and aimed to modernise and strengthen consumer protection in India. It was introduced with the goal of providing consumers with more accessible and efficient ways to address their complaints and concerns. The 2019 act has a broader applicability, covering various types of businesses, including e-commerce firms, under its provisions and is the current laws related to the protection of consumers in India.

Key Difference Between Consumer Protection Act 1986 and Consumer Protection Act 2019

Consumer protection is a crucial aspect of any thriving economy, ensuring the rights and interests of consumers are safeguarded. In India, two significant pieces of legislation have been enacted to address consumer grievances and establish a framework for consumer protection: the Consumer Protection Act 1986 and the Consumer Protection Act 2019.

Historical Context

The Consumer Protection Act 1986 was a pioneering piece of legislation introduced to provide consumers with better protection of their interests. It was applicable throughout India, with the notable exception of Jammu and Kashmir.

However, over the years, the changing consumer landscape and the advent of e-commerce necessitated significant updates to consumer protection laws, leading to the formulation of the Consumer Protection Act 2019.

Regulator

One of the most significant differences between the two acts is the establishment of a dedicated regulatory authority in the Consumer Protection Act 2019. In the 1986 act, there was no specific regulator to oversee and address common unfair practices by sellers. The absence of a regulator meant that consumers had limited recourse against unscrupulous sellers and manufacturers.

In contrast, the Consumer Protection Act 2019 introduced the Central Consumer Protection Authority (CCPA), a regulatory body responsible for safeguarding consumer welfare and taking action against unfair trade practices. The CCPA has the authority to investigate and penalise businesses that engage in deceptive or unfair practices, providing consumers with a powerful mechanism to seek justice.

Jurisdiction

Jurisdictional limitations were a significant challenge in the Consumer Protection Act 1986. According to the 1986 act, a consumer case could only be filed in the court of the district from where the product was purchased. This restriction created problems in the modern era, particularly with the rise of e-commerce, where consumers often made purchases from sellers located far from their place of residence.

The Consumer Protection Act 2019 addressed this issue by removing the jurisdictional restriction based on the location of the purchase. Under the 2019 act, consumers can file cases from their place of residence against the seller, regardless of where the seller is located. This change significantly enhances consumer convenience and access to justice.

Product Liability

Another crucial improvement introduced by the Consumer Protection Act 2019 relates to product liability. In the 1986 act, consumers could not sue the seller for issues related to the price, quality or  value of the product in a consumer court. Instead, they were required to file such suits in civil courts, which could be time-consuming and costly.

The 2019 act rectified this limitation by incorporating provisions that allow consumers to sue sellers in consumer courts for any product-related issues. This includes seeking compensation or damages from the seller for substandard products or services. This change empowers consumers to seek redressal for grievances more efficiently.

Pecuniary Jurisdiction

The Consumer Protection Act 2019 also raised the pecuniary jurisdiction limits, determining the compensation that each court can grant. These increased limits are essential to ensure that consumers have access to meaningful remedies when their rights are violated. Here’s a breakdown of the changes:

• District court limits were raised from 20 lakhs to 1 crore.
• State court limits were raised from 20 lakhs to 10 crores.

The National Commission’s limits were raised from above 1 crore to above 10 crores.

These adjustments in the pecuniary jurisdiction make it more feasible for consumers to approach consumer courts for grievances involving larger amounts, further strengthening consumer protection.

E-commerce

The advent of e-commerce brought a host of new challenges and opportunities for consumers. However, the Consumer Protection Act 1986 did not address these issues, leaving consumers exposed to potential fraud and unfair practices when making online purchases.

In contrast, the Consumer Protection Act 2019 recognised the importance of regulating e-commerce transactions. It extended consumer protection provisions to cover e-commerce platforms and sellers, ensuring that consumers have the same level of protection when dealing with online purchases as they do with traditional brick-and-mortar transactions. This extension is a significant step forward in adapting consumer protection laws to the digital age.

Mediation Cells

Mediation is a valuable tool for resolving disputes efficiently and amicably. The Consumer Protection Act 1986 did not have provisions for mediation between parties to settle disputes. This meant that consumers and businesses had to rely solely on formal legal proceedings, which could be time-consuming and costly.

In contrast, the Consumer Protection Act 2019 introduced provisions for mediation, allowing parties to attempt to resolve disputes through this alternative dispute resolution mechanism before pursuing formal legal action. Mediation cells can play a crucial role in expediting the resolution of consumer disputes while reducing the burden on the judicial system.

Unfair Terms and Conditions

The Consumer Protection Act 2019 introduced a significant change by empowering the State Commission and the National Commission to declare a contract null and void if it is deemed unfair to consumers. This provision allows consumers to challenge unfair terms and conditions imposed by businesses and seek remedies through consumer courts.

This addition is a substantial improvement from the 1986 act, which did not explicitly address unfair contract terms. It reinforces consumer rights and encourages fair business practices.

Composition of State Commission

The composition of the State Commission was also revised in the Consumer Protection Act 2019. While the Consumer Protection Act 1986 had one president and two other members in the State Commission, the 2019 act increased the composition to one president and four other members. This expansion is intended to enhance the capacity of the State Commission to handle cases effectively and expeditiously.

Here’s a summary of the key differences between the Consumer Protection Act 1986 and the Consumer Protection Act 2019:

Conclusion: Difference Between Consumer Protection Act 1986 and Consumer Protection Act 2019

In summary, the Consumer Protection Act 1986 and the Consumer Protection Act 2019 represent significant milestones in India’s consumer protection framework. The 2019 act reflects the evolving consumer landscape, addressing the challenges posed by e-commerce and modern commerce practices.

It introduces a dedicated regulator, removes jurisdictional restrictions, empowers consumers to seek redressal for product issues, raises pecuniary jurisdiction limits, extends protection to e-commerce transactions and promotes mediation as a dispute resolution mechanism.

These changes collectively strengthen consumer protection, ensuring that consumers are better equipped to assert their rights and seek justice in an increasingly complex marketplace. The Consumer Protection Act 2019 is a testament to India’s commitment to providing consumers with a robust and contemporary framework for their protection.