THE DIGITAL-AGE UPGRADE: WHY THE CONSUMER PROTECTION ACT, 2019 REPLACED THE 1986 ACT

INTRODUCTION

The Consumer Protection Act, 2019 was published in the Gazette of India on August 9, 2019. Its main provisions were notified to come into force on July 20, 2020, with several remaining provisions following on July 24, 2020. The new Act replaced the Consumer Protection Act, 1986, modernising India's consumer protection framework to reflect the realities of digital commerce and online transactions.

ESTABLISHMENT OF CENTRAL CONSUMER PROTECTION AUTHORITY

The 2019 Act established the Central Consumer Protection Authority (CCPA), effective July 24, 2020, to regulate matters relating to false or misleading advertisements that are prejudicial to the interests of the public and consumers as a class.

On June 9, 2022, the CCPA notified the Guidelines for Prevention of Misleading Advertisements and Endorsements. These guidelines require that any endorsement in an advertisement reflect the genuine, reasonably current opinion of the endorser, and be based on adequate information about, or experience with, the product or service. Where a connection between the endorser and the trader, manufacturer, or advertiser could materially affect the credibility of the endorsement, and that connection would not reasonably be expected by the audience, it must be fully disclosed.

DARK PATTERNS IN E-COMMERCE PLATFORMS

The 2019 Act explicitly brings e-commerce transactions within its scope, defining e-commerce as the buying or selling of goods or services, including digital products, over a digital or electronic network. The Department of Consumer Affairs has urged e-commerce companies and industry associations to avoid design patterns on their platforms that deceive or manipulate consumer choices — commonly known as “dark patterns.”

The Act also widens the definition of “consumer” to include persons who buy or avail of goods or services online or through electronic means, a category absent from the 1986 Act. Similarly, the definition of “advertisement” has been expanded to cover any audio or visual publicity, representation, endorsement, or pronouncement made through electronic media, the internet, or a website.

THE PECUNIARY JURISDICTION OF THE DISTRICT, STATE AND NATIONAL COMMISSION

The 2019 Act establishes a three-tier quasi-judicial mechanism for resolving consumer disputes: District Commissions, State Commissions, and the National Commission. Each tier has a defined pecuniary jurisdiction, which was subsequently revised by the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021.

The table below summarises how the value threshold for filing a consumer complaint has evolved across the two Acts and the 2021 Rules.

INTRODUCTION OF THE E-DAAKHIL PORTAL

The Act allows consumers to file complaints electronically through the E-Daakhil Portal, set up by the Central Government to provide a hassle-free, speedy, and inexpensive way to approach the relevant consumer forum without needing to travel. The portal offers features such as e-Notice, case document downloads, virtual hearing links, filing of written responses and rejoinders, and SMS/email alerts.

E-Daakhil is presently available across 544 consumer commissions, covering the National Commission and commissions in 21 states and 3 union territories. More than 10,000 cases have been filed through the portal, with over 43,000 registered users.

TIMELINE AND MEDIATION

• Complaints not requiring analysis or testing of commodities: To be disposed of within 3 months of notice to the opposite party.
• Complaints requiring analysis or testing of commodities: To be disposed of within 5 months.
• Mediation: Disputes may be referred to mediation with the consent of both parties, offering a faster, more amicable route to settlement and helping reduce case pendency.

THE 2019 ACT: RETROSPECTIVE OR PROSPECTIVE?

In the recent case of Neena Aneja & Anr. v. Jai Prakash Associates Ltd., the Supreme Court examined Section 107 of the 2019 Act, which repeals the 1986 Act. The Court held that Section 107(2) preserves the “previous operation” of the repealed Act and anything done under it, so long as it is not inconsistent with the new law. It further clarified that Section 107(3) does not prejudice the general application of Section 6 of the General Clauses Act.

Under Section 6(c) of the General Clauses Act, a repeal does not affect any right, privilege, obligation, or liability already acquired, accrued, or incurred under the repealed law. The Court reasoned that the right to pursue a validly instituted consumer complaint under the 1986 Act is one such accrued right. Section 6(e) further ensures that legal proceedings initiated to enforce that right may continue as though the repealing legislation had never been enacted.

As a result, proceedings instituted before the 2019 Act came into force (i.e., before July 20, 2020) continue before the corresponding fora under the 1986 Act, and are not transferred based on the new pecuniary jurisdiction. Accordingly, the Supreme Court allowed the appeals, set aside the impugned judgment, and directed the National Commission to continue hearing the case.

CONCLUSION

The Consumer Protection Act, 2019 represents a significant modernisation of India's consumer protection regime — bringing e-commerce and digital advertising within its ambit, strengthening enforcement through the CCPA, streamlining redressal through revised pecuniary limits and the E-Daakhil Portal, and offering mediation as a faster alternative to litigation. At the same time, the Supreme Court's ruling in Neena Aneja ensures that consumers who acted under the 1986 Act retain their accrued rights, preserving continuity through the transition to the new framework.