Legal Guide Part 12 - Consumer Protection Act 2019 in Practice

- Paragraph 1 - the 2019 Act: The Consumer Protection Act 2019 replaced the 1986 Act on 20 July 2020 (the date of operationalisation of the Central Consumer Protection Authority under s.10). The 2019 Act introduced five substantive innovations over the 1986 Act: (i) the Central Consumer Protection Authority (CCPA, s.10-27) - a regulator with suo-moto power to investigate and penalise unfair trade practices, misleading advertisements, and violations of consumer rights; (ii) Product Liability under s.2(47) and s.84-87 - strict liability of the manufacturer / seller for harm caused by a defective product; (iii) Unfair Contracts under s.2(46) and s.47 - a list of contract terms that are unfair (e.g. excessive security deposit, one-sided termination, unconscionable indemnity); (iv) E-Commerce Rules 2020 under s.101 - specific obligations on e-commerce entities (mandatory disclosures, grievance redressal within 48 hours, ban on flash sales, ban on manipulating prices); (v) Mediation under s.37-42 - a Mediation Cell attached to every consumer forum.