Central Government Notifies 20th July 2020 as the date on which Consumer Protection Act 2019 comes i

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Central Government Notifies 20th July 2020 as the date on which Consumer Protection Act 2019 comes into effect   Jul 16, 2020

The Government of India has issued a Notification dated 15th July 2020 notifying 20th July 2020 as the date on which the new Act comes into force. Text of the Notification is attached. 

SALIENT FEATURES OF Consumer Protection Act,  2019:

1.       Broadening the definition of “consumer”

The expressions "buys any goods" and "hires or avails any services has been expanded to include offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing;

2.       Consumer rights ;

The right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices;

3.       E-commerce has been defined as buying or selling of goods or services including digital products over digital or electronic network.

4.       Misleading Advertisements have been made actionable.

5.       Advertisement has been defined to means any audio or visual publicity, representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents;

6.       Penalty of imprisonment and fine for any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers (This section has not been brought into force)

7.       Pecuniary Jurisdiction of District Forum increased to Rs. 1 Crore

8.       Pecuniary Jurisdiction of State Forum increased to Rs, 10 Crores; in case of unfair contracts claims where the consideration does not exceed Rs 10 Crores.

9.       Pecuniary Jurisdiction of National Commission for claims exceeding Rs. 10 crores.

10.   Establishment of a Consumer Mediation Cell attached to the District & State Forums

11.   Complaint can be filed for Product Liability on account of harm caused by defective products or services

12.   Unfair Contracts are made actionable which interalia include:

a.       Requiring manifestly excessive security deposits to be given by a  consumer for the performance of contractual obligations;

b.      Entitling a party to the contract to terminate such contract unilaterally without reasonable cause

13.   Unfair trade practices would include failure to issue bill or a cash memo and disclosure of a consumer’s personal information.

Sections not brought into force

Section 2

Sub Section (4) – Central Authority

Sub-Section (13) – Direct selling

Sub-Section (14) – Appointment of Director General

Sub-Section (16) – E-Commerce


Section 58(1)(a)(iv) - Appeals against the orders of the Central Authority


Section 88 – Penalty for Offence of failure to comply with directions of Central Authority

Section 89 – Penalty for misleading advertisements.

Section 92 – Cognisance of Offences on complaint by Central Authority

Section 93 – Penalty for vexatious search by Director General or other officers.

Section 94 - Measures to prevent unfair trade practices in e-commerce, direct selling,

Section 96 – Compounding of offences punishable under Sections 88 & 89

Section 97 – Collection of penalties to a fund

Section 99 – Exercise of Powers of Central Authority delegated by the Government.

Section 104 – Powers of the Central Authority to make Regulations

Section 101(2) : (Clauses (f) to (m) and sub clauses (zg), (zh), (z(i) – Powers to make rules.

Kindly refer to the attached notifications for details    




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