The new legal regime on consumer protection overhauls the 1986 law to address issues arising from unique trade forms used in this era of digitization and e-commerce. It provides for the establishment of a new authority for monitoring consumer welfare with powers such as ordering product recalls and issuing safety notices.

Background

In order to keep pace with growing complexities in consumer disputes involving e-marketplaces, online aggregators, intermediaries, endorsers and to bring about efficiency in the consumer dispute resolution framework, the Indian Parliament passed the Consumer Protection Act, 2019 (Act). It will become effective from such date that the Central Government may appoint by notification.

With the Indian market expanding at a rapid pace, it was increasingly felt that the outdated procedures and infrastructure provided under the Consumer Protection Act of 1986 (Old Act) were insufficient to protect the varied interests of consumers. The Act was therefore passed with an aim to give greater protection to consumer interests, promote expeditious settlement and make the process of filling a consumer complaint easier. The Act also provides for the setting up of a dedicated regulatory authority to monitor consumer welfare and initiate suo moto action against unfair trade practices detrimental to consumers at large.

Download >> The Consumer Protection Act, 2019 - Overview

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