The title of the new Consumer Protection Act, 2019 (“2019 Act”) captures in the least number of words the whole and sole purpose of this benevolent act. It may be countered that the erstwhile act Consumer Protection, 1986 also nearly had the same title, however lest we forget, the law was nearly three decades old, and it poignantly missed to include and inculcate the needful things that were a requirement arising out of the dynamism associated with the consumer demeanor. The new law takes care of such dynamism and so much more while instituting a much-needed fundamental change in law and its narrative as well. The Parliament passed the Consumer Protection Bill, 2019 on 06-08-2019 and replaced the erstwhile Consumer Protection Act, 1986, and the same came into force on 20-07-2020. The entire exercise to review and reform the existing consumer protection act was to provide timely and effective administration and settlement of consumer disputes and ensure that such concerns arising out of consumer related grievances could be addressed and resolved rather speedily.

The intent of this article is to briefly touch upon the positives and the areas which could do with some bitter love. The article, for the ease of perusing, has been divided into 3 sub parts – Observing the positives, Catching up on the areas of improvements and way forward. Lest the author gets carried away, the article has been written specifically from the perspective of a practicing in house counsel.

Observing the positives-

Robust Redressal Mechanism:

Embarking upon the new law, it is abundantly clear as to how it has fathomed a lot more teeth to the redressal mechanism. The voice of the consumer seems to have reached the higher echelons and the legislature took a deep dive into the subject. To ease the matters, it came up the ingenious and virtuous idea of with establishing the Central Consumer Protection Authority matrix. This authority matrix provides consumers with an accessible and efficient platform to seek redressal for their grievances and allows the consumer to explore an option without exposing itself to the judicial rigmarole. Moreover, the act also takes into consideration the digital space and has introduced the concept of e-filing of complaints and faster online case tracking. This has introduced the much-needed element of transparency and as an after effect, led to stream lining the dispute resolution process.

Stringent Penalties for Unfair Trade Practices:

With the world advancing in both digital as well as thebrick and mortar space, at rather warp speed, it is only natural to ensure that those falling out of line are reprimanded, and rather seriously at that. With end game of ensuring consumer protection in sight, the Act has made the penal provisions more stringent and have sought to significantly increase the penalties for unfair trade practices, misleading advertisements, and spurious goods. This along with adverse publicity, acts as a deterrent for businesses engaging in unethical practices and has instilled a sense of responsibility in the manufacturers.

Simplified and Speedier Resolution:

In a first, we saw a game changing inclusion in the new law. This here is a clear example of the Legislature walking the talk. The Act actively encourages mediation as a form of dispute resolution. Not only would this ease the load of the already burdened courts, but also allow the government (the biggest litigant in the country) an option to resolve (reasonably) the pending cases and reducing the ‘Lis- pendens’ against their name. The introduction of an alternative remedy provides a quicker and more cost-effective alternative to traditional litigation. Admittedly, this has offered a swifter resolution for consumers/complaints.

E-commerce Regulations:

One of the most awaited developments under the new law was the regulation of the e-commerce behemoth such as Amazon, Flipkart and the likes, and brough the same under its purview. This initiative was a welcome change and provided consumers some much needed protection against such large corporations, while engaging in online transactions. The detailed Rules and regulations specific to e-commerce platforms have encompassed wide areas of intermittent online transactions and have been laid down with the intention of strictly regulate the e-commerce space with an stringent measures against counterfeits and the protection of consumers’ data as well.

Product Liability:

Another first under the consumer law realm was the introduction of the concept of product liability. While juxtaposing with other developed nations, product liability has been an integral part of the law there for quite some time however, the 2019 Act introduced it in India as well. The inclusion makes manufacturers, service providers, as well sellers liable and accountable for defective products. This provision has empowered consumers to seek compensation for injuries or damages caused by faulty products.

Analyzing merely the positives of the 2019 act would rather be a perfunctory vision. Therefore, to have a more well-rounded analysis at hand, it is equally important to systematically and without bias understand how can the law serve its targeted audience better.

Areas of improvements for 2019 Act

Enforcement Challenges:

While the law has adopted a more direct and stringent approach by imposing stringent penalties, it is will however need the same kind of backing to enforce the same. The Act’s provisions with regards to the enforcement have been found wanting and have rather been inconsistent to say the least. While one may look at Civil Procedure code for enforcement, however, that’s another battle, and warrants a separate article for understanding. Prima facie, it is the lack of a dedicated enforcement agency which makes it difficult to monitor and regulate businesses, especially smaller ones, engaged in unfair trade practices. The CCPA may also be given a regulated power to enforce the compliance of the law, while another board may be instilled to keep a check on the powers of the CCPA.

Resource Constraints:

No amount of change in law can have the desired effect unless it is provided with the much-needed resource to ensure that law is dissipated in the manner it is intended to be. It is unfortunate that many state and district-level consumer dispute redressal commissions lack adequate resources and infrastructure to function effectively and efficiently. It is further concerning to note that many of the commissions are not being able to function as the Presiding officers are yet to be appointed as yet. This provides much fervor to the online meme – “Tareekh pe Tareekh milord”. Such delays and inefficiencies in the dispute resolution process leads to delay in justice, which is equivalent to justice denied.

Challenges in E-commerce:

The e-commerce space is an ever evolving marketplace and law must need to keep up with it, if not stay ahead of the curve. Although, the Act brings e-commerce platforms under its purview, however, due the dynamic nature of the marketplace, enforcing these regulations on such digital landscape is a daunting task. The sheer scale of e-commerce and the prevalence of international transactions make it challenging to ensure strict adherence to the Act. It is suggested that a similar authority akin to CCPA be setup, with the sole purpose of effectively engaging and managing the digital landscape.

Regulation on Food Safety:

Food safety regulations are strictly and adequately regulated by the Food Safety and Standards Act 2006. The 2019 Act should allow a harmonious reading of the 2 laws in the event of complaints pertaining to Food items and should rather depend upon the latter law for rendering true justice in such cases. By overlooking an already established law on the particular subject, it leads to puzzlement and bewilderment in the public, and rather puts the consumers at large under tremendous stress. It is suggested that complaints pertaining to Food items be governed as prescribed under Food law, while the penalty provisions maybe read harmoniously to ensure maximum penalty is levied in the event of a default.

Complexity in Product Liability Claims:

While the legislatures intent is on point and is a step in the right direction, however, it is important to understand that the concept is novel in this neo-liberal econonmy and therefore it’s intended implication may challenging for consumers to navigate without proper legal assistance. Simplifying this aspect of the Act would make it more consumer-friendly.

Way forward-

It is without a doubt that the new law has addressed many of the warranted concerns as described above. Over and above the same, it has sincerely addressed the concerns around celebrities levying their name to the products and how should they be held accountable (or not)which comes as a much needed respite. The legislature has boldly taken a very balanced and aggressive step to ensure that the consumers wellbeing is ensured at all times irrespective of the marketplace model (whether digital or otherwise). It is now equally important for us to keep a watchful lookout to ensure that implementation (or rather the lack of it) does not become its bane. Conspicuous changes, as may be warranted from time to time need to be built into the act so that the dynamism is reflected in the law alongside the consumer behavior. Consumer Protection Act, 2019, has arrived and how. It has tactfully engaged with the changing world and consumer alike. Let us hope that this dynamic nature is retained by the legislature and the act for times to come to ensure consumer rights and promoting ethical business practices in India.