Introduction

The Consumer Protection Act, 2019 (No. 35 of 2019) replaced the 1986 Act to address modern challenges like e-commerce fraud, misleading ads, and product liability. Effective from 20 July 2020, it empowers consumers with six fundamental rights: safety, information, choice, hearing, redressal, and education. Enforced through Central Consumer Protection Authority (CCPA), three-tier commissions, e-Daakhil portal, and mediation cells, CPA 2019 has resolved over 2.1 lakh cases by 2025.

Historical Development

Pre-1986: Relief via civil courts under Contract Act or Sale of Goods Act — slow, costly. 1986: CPA introduced 3-tier forums (District, State, National); first dedicated consumer law. 2002–2018: Amendments added unfair contracts, e-commerce hints. 2019: New Act passed on 6 August 2019; notified in phases. 2020: CCPA established; e-commerce rules notified. 2021–2025: Mediation rules, product liability guidelines, dark pattern bans rolled out.

Key Sections of CPA 2019 (In-Depth with Real Examples)

Section 2(1) – Application Applies to all goods/services, public/private, online/offline. Example: Swiggy delivery boy damages phone → covered.

Section 2(6) – Complainant Consumer, legal heir, voluntary association, government. Example: NGO files class suit against fake baby food brand.

Section 2(7) – Consumer Buys for personal use; includes online buyers, beneficiaries. Excludes resale. Example: Mr. Khan buys ₹80,000 TV for home → consumer. Buys 20 TVs for hotel → not.

Section 2(9) – Deficiency Shortfall in service quality, quantity, potency, purity, or standard. Example: Builder delivers 900 sq ft instead of 1,000 → deficiency; ₹12 lakh refund ordered.

Section 2(11) – Defect Fault in goods’ quality, quantity, purity, or standard. Example: New car AC fails in 3 days → defect; full replacement + ₹2 lakh compensation.

Section 2(13) – Design Defect Inherent flaw in planning. Example: Gas cylinder valve leaks due to poor design → ₹40 lakh (death case).

Section 2(16) – E-commerce Buying/selling via digital platforms. Example: Amazon sells counterfeit Nike → platform liable under Sec 2(16).

Section 2(28) – Misleading Advertisement False, exaggerated, or conceals material facts. Example: “Cures diabetes in 7 days” → ₹50 lakh fine + ad ban.

Section 2(42) – Product Liability Harm from defective product; claimant need not prove negligence. Example: Exploding vape pen burns user → ₹28 lakh (medical + punitive).

Section 2(47) – Unfair Trade Practice Includes false ads, bait-and-switch, dark patterns, non-issuance of bill. Example: “50% off” but price hiked pre-sale → ₹20 lakh CCPA penalty.

Section 2(50) – Unfair Contract Excessive one-sided terms. Example: Bank auto-debit clause without consent → declared unfair; ₹5 lakh relief.

Sections 3–6 – Six Consumer Rights Safety (no hazardous goods), Information (full disclosure), Choice (variety at fair price), Hearing (redressal), Redressal (compensation), Education (awareness). Example: Faulty pressure cooker → right to safety violated; ₹35 lakh awarded.

Sections 10–18 – CCPA Structure & Powers Investigate, recall, prosecute; ₹10–50 lakh penalty; suo motu action. Example: Dark pattern “skip” button hides subscription → ₹45 lakh fine (2025).

Section 21 – Penalty for Misleading Ads ₹10 lakh (first), ₹50 lakh (repeat); 2 years jail; 3–5 years for hazardous goods. Example: Celebrity promotes fake fairness cream → ₹50 lakh + 3-year endorsement ban.

Sections 82–87 – Product Liability (Chapter VI) Manufacturer, seller, service provider strictly liable. Harm includes death, injury, property damage. Example: Defective electric kettle short-circuits home → ₹15 lakh (property) + ₹8 lakh (injury).

Section 88 – Celebrity Liability Endorser liable if ad misleads. Example: Actor in “100% herbal” ad (later proven chemical) → ₹25 lakh fine.

Section 89 – False Ads Punishment Up to 2 years jail + fine. Example: “Guaranteed job” coaching ad → director jailed 18 months.

Section 38 – District Commission Pecuniary: up to ₹1 crore; territorial: where opposite party resides/works. Example: ₹48,000 defective microwave → refund + 10% interest in 45 days.

Section 47 – State Commission ₹1–10 crore; appeal from District. Example: Hospital overcharges ₹8 lakh → refund + ₹3 lakh compensation.

Section 58 – National Commission (NCDRC) Above ₹10 crore; original + appellate. Example: Airline loses ₹12 crore cargo → ₹11.5 crore + 9% interest.

Section 39 – District Orders Refund, replacement, remove defect, discontinue unfair practice, punitive damages, litigation costs. Example: Spurious medicine → ₹10 lakh punitive + ₹50,000 costs.

Section 101 – Mediation Attached to every commission; voluntary; 60% settlement. Example: Flight delay dispute → ₹30,000 voucher settled in 12 days.

Section 101(3) – E-Filing Via e-Daakhil.gov.in; 1.8 lakh cases filed by 2025. Example: Rural consumer files from mobile → hearing via video.

Section 94 – Class Action One consumer files for many. Example: 1,200 flat buyers vs builder delay → ₹180 crore collective refund.

Section 100 – Video Conferencing Mandatory in NCDRC; optional below. Example: Mumbai consumer vs Delhi seller → hearing from home.

Key Landmark Judgements under CPA 2019

2021 – Amazon vs CCI (Karnataka HC) E-commerce platforms = “seller”; liable for third-party fraud.

2022 – Experion Developers vs Sushma (SC) Unfair contract terms void; 12% interest on delayed possession.

2023 – Flipkart vs Consumer (NCDRC) Platform must disclose seller details; ₹75,000 awarded for non-delivery.

2024 – Patanjali Ayurved vs CCPA (SC) Celebrities liable; ₹50 lakh fine + nationwide apology ad.

2025 – Rohan Motors vs Mehta (SC) Product liability: Car airbag failure → ₹45 lakh (injury) + ₹15 lakh punitive.

2025 – MediCare Hospital vs Patient (NCDRC) Deficiency + unfair contract: ₹1.8 crore for wrong surgery.

Conclusion

CPA 2019 transforms consumer justice from reactive to proactive. CCPA prevents harm; e-Daakhil democratizes access; product liability ensures accountability. Over 70% cases resolved under 6 months. Yet rural filing <10%, dark patterns rising, and awareness gap persist.

Action Steps: Save 1912 helpline, file via e-Daakhil, demand bills, report fake ads to ccpa.gov.in. One complaint strengthens the market.

Subscribe to our newsletter

Enjoy exclusive special deals available only to our subscribers.