The Consumer Protection Act, 2019 was enacted in India to replace the earlier Consumer

Protection Act, 1986, with the aim of addressing emerging consumer challenges and ensuring
greater protection of consumer rights in a rapidly changing market environment. Below are the
reasons for its enactment, elaborated:

1. Changing Consumer Markets

The consumer landscape has evolved significantly due to globalization, digitization, and the rise
of e-commerce platforms.

New business models such as online shopping, digital payments, and cross-border trade
required updated legal provisions to safeguard consumer rights.

2. Addressing Gaps in the 1986 Act

The 1986 Act did not adequately address modern market practices like misleading
advertisements, unfair trade practices, or product liability issues.

There was a need for comprehensive measures to regulate deceptive practices in advertising,
unfair contracts, and substandard products.

3. Strengthening Consumer Rights

Consumers required stronger legal tools to protect their rights against defective goods, deficient
services, overpricing, and unfair trade practices.

There was a focus on making grievance redressal more accessible, faster, and efficient.

4. Introduction of E-Commerce and Digital Transactions

The exponential growth of e-commerce posed new challenges like fake reviews, delayed
deliveries, misleading pricing, and cyber fraud.

The new law aimed to ensure transparency and accountability in online transactions, addressing
these emerging consumer grievances.

5. Simplifying Grievance Redressal

The older system of consumer courts was often criticized for being slow and cumbersome.
The 2019 Act introduced a more structured and tiered grievance redressal mechanism,
including the establishment of a Central Consumer Protection Authority (CCPA) for quick
resolution of complaints and enforcement of consumer rights.

6. Focus on Product Liability

The Act recognized the need to hold manufacturers, service providers, and sellers accountable
for harm caused by defective products or deficient services.

It introduced the concept of product liability to provide compensation to consumers for harm or
injury caused.

7. Deterring Unethical Practices

Increasing cases of misleading advertisements and exploitation of consumer trust necessitated

stricter penalties.

The Act imposed heavy fines and imprisonment for deceptive advertising, unsafe products, and
unfair practices.

8. Awareness and Empowerment of Consumers

The new Act emphasized the importance of consumer education and awareness.

Provisions were included to educate consumers about their rights, especially in rural and remote
areas.

Key Features Addressing the Above Issues:

E-Filing of Complaints: To enable hassle-free complaint registration online.

Enhanced Consumer Rights: Including protection against unfair contracts, right to information,
and right to redressal.

Mediation Mechanism: Introduced to ensure quick dispute resolution.

Central Consumer Protection Authority (CCPA): Established to oversee consumer rights and
prevent exploitation.

Penalties for Misleading Ads: Stricter penalties to curb unethical advertising practices.
Conclusion

The enactment of the Consumer Protection Act, 2019 was a progressive step to address
modern consumer challenges, streamline dispute resolution, and enhance consumer rights. It
bridges the gap between the legal framework and the realities of the contemporary marketplace,
ensuring that consumers are protected in a dynamic and evolving economic environment.

The Consumer Protection Act, 1986, was enacted to safeguard the rights and interests of
consumers in India. It provided a legal framework for addressing grievances and resolving
disputes related to goods and services. Under this Act, consumers were granted six
fundamental rights, which are as follows:

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1. Right to Safety

Definition: This right protects consumers from goods and services that may be hazardous to life,
health, or property.

Objective: To ensure that products such as electrical appliances, medicines, food, and other
goods meet safety standards and do not pose risks.

Example: A consumer can demand accountability if a defective home appliance causes injury.

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2. Right to be Informed

Definition: Consumers have the right to receive all necessary information about the quality,
quantity, purity, price, and standard of goods and services.

Objective: To help consumers make informed decisions and prevent exploitation.

Example: A packaged food item must display its ingredients, manufacturing date, expiry date,
and nutritional information.
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3. Right to Choose

Definition: Consumers have the right to access a variety of goods and services at competitive
prices without any undue pressure or monopoly.

Objective: To prevent coercive selling or restrictive trade practices.

Example: A consumer can choose between different brands of a product and cannot be forced
to buy a specific brand.

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4. Right to be Heard

Definition: This right ensures that consumers' grievances and complaints are given due
consideration by appropriate forums or authorities.

Objective: To create platforms like Consumer Forums and Consumer Courts where consumers
can voice their concerns.

Example: A consumer who received defective goods can file a complaint with the District
Consumer Dispute Redressal Forum.

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5. Right to Seek Redressal

Definition: Consumers have the right to seek compensation or redressal for any unfair trade
practices, defective goods, or deficient services.

Objective: To provide justice to consumers through legal mechanisms.

Example: A consumer can claim a refund, replacement, or compensation if a product fails to

meet expectations or causes harm.
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6. Right to Consumer Education

Definition: Consumers have the right to acquire knowledge about their rights, responsibilities,
and remedies under the law.

Objective: To empower consumers to protect themselves from fraudulent practices.

Example: Campaigns like "Jago Grahak Jago" educate consumers about their rights.

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Importance of These Rights:

Prevent Exploitation: Protects consumers from unfair trade practices, substandard goods, and
defective services.

Promote Awareness: Empowers consumers to make better purchasing decisions.

Ensure Accountability: Encourages manufacturers and service providers to maintain high

standards.

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Mechanisms for Enforcement:

To ensure the implementation of these rights, the Act established a three-tier dispute redressal
system:

1. District Consumer Dispute Redressal Forum (DCDRF) – For claims up to ₹20 lakhs.

2. State Consumer Dispute Redressal Commission (SCDRC) – For claims between ₹20 lakhs
and ₹1 crore.

3. National Consumer Dispute Redressal Commission (NCDRC) – For claims above ₹1 crore.
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Conclusion:

The rights provided under the Consumer Protection Act, 1986, were instrumental in
safeguarding consumers and ensuring fairness in the market. By empowering consumers to
seek justice and stay informed, the Act played a pivotal role in fostering a balanced relationship
between buyers and sellers.

The Consumer Protection Act, 2019, replaced the 1986 Act to strengthen consumer rights and
streamline dispute resolution mechanisms. A significant part of the Act is the establishment of
Consumer Protection Councils, designed to promote and protect the rights of consumers in
India.

These councils work as advisory bodies to ensure that consumers are aware of their rights and
protected from unfair trade practices.

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Structure of Consumer Protection Councils

The Consumer Protection Act, 2019, establishes three levels of Consumer Protection Councils:

1. Central Consumer Protection Council (Central Council)

2. State Consumer Protection Councils (State Councils)

3. District Consumer Protection Councils (District Councils)

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1. Central Consumer Protection Council

Composition
Chairperson: Union Minister in charge of Consumer Affairs.

Vice-Chairperson: Minister of State for Consumer Affairs.

Members:

Members of Parliament (both Lok Sabha and Rajya Sabha).

Representatives from Central Government departments.

Representatives of consumer organizations, manufacturers, and traders.

Other experts in consumer rights.

Functions

Advises the central government on consumer welfare policies.

Promotes and protects the rights of consumers.

Reviews and suggests improvements in consumer protection measures.

Meetings

It meets at least once a year.

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2. State Consumer Protection Councils

Composition

Chairperson: Minister in charge of Consumer Affairs in the respective state.

Members:

Representatives from various departments of the state government.

Representatives of consumer organizations and trade associations.

Other experts in consumer rights.

Functions

Advises the state government on matters of consumer protection and welfare.

Implements policies and programs for consumer education and awareness at the state level.

Meetings

It meets as required but at least twice a year.

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3. District Consumer Protection Councils

Composition

Chairperson: Collector or District Magistrate of the district.

Members:

Representatives from local bodies.

Members of consumer organizations in the district.

Other local experts in consumer rights.

Functions

Advises the district administration on consumer protection issues.

Promotes consumer education and awareness at the grassroots level.

Meetings

It meets as required.

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Functions of Consumer Protection Councils

The councils aim to promote and protect consumer rights, including:

1. Right to Safety: Protection against hazardous goods and services.

2. Right to be Informed: Ensuring access to accurate information.

3. Right to Choose: Promoting competition and availability of choices.

4. Right to be Heard: Addressing consumer grievances and ensuring fair consideration.

5. Right to Seek Redressal: Ensuring compensation for unfair trade practices.

6. Right to Consumer Education: Enhancing consumer awareness and knowledge.

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Key Features and Relevance in the 2019 Act

1. Enhanced Role of Councils:

Increased focus on digital transactions, e-commerce, and emerging consumer challenges.

Provisions to address the unique issues faced by online shoppers.

2. Integration with the Central Consumer Protection Authority (CCPA):

Councils work alongside the CCPA, ensuring effective implementation of consumer welfare
schemes.

3. Consumer Awareness Programs:

Promotes campaigns like "Jago Grahak Jago" to educate consumers.

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Conclusion

The Consumer Protection Councils established under the Consumer Protection Act, 2019, play
a pivotal role in safeguarding consumer interests. By promoting awareness, advising
governments, and addressing grievances at the national, state, and district levels, these
councils ensure a robust framework for consumer protection in India. The inclusion of modern
consumer challenges, such as e-commerce and product liability, makes the 2019 Act a
significant advancement in protecting consumer rights.

Detailed Elaboration on the Motor Vehicles Act, 1988: Compensation for Motor Vehicle
Accidents

The Motor Vehicles Act, 1988, is a landmark legislation that governs road transport and the
associated liabilities in India. It ensures adequate compensation for victims of road accidents
while establishing mechanisms for insurance coverage and claims settlement. Below is a
detailed explanation of the compensation-related provisions under the Act:

1. Liability for Compensation

The Act outlines two types of liabilities for compensation:

a. No-Fault Liability (Section 140)

Under this provision, the claimant is not required to prove negligence or fault. The liability is
automatic and fixed.
Objective: Provide immediate relief to accident victims or their dependents.

Key Provisions:

₹50,000 is awarded for death.

₹25,000 is awarded for permanent disability.

Example: If a pedestrian is hit by a car and dies, the family can claim ₹50,000 without
establishing the driver's negligence.

b. Fault-Based Liability

Requires the claimant to prove negligence or fault on the part of the driver/owner.

Compensation amounts are typically higher as they are based on the victim's losses and
circumstances.

Key Considerations:

Extent of negligence.

Damages sustained by the victim.

Evidence presented by the claimant.

2. Compensation for Hit-and-Run Cases (Section 161)

Hit-and-run cases involve accidents where the driver responsible flees the scene.
Government Fund: Compensation is paid from a fund established by the government.

Compensation Amounts:
₹2,00,000 for death.
₹50,000 for grievous injury.

Process of Claiming:

File a report with the local police.

Submit the claim to the District Collector or an authorized officer.

Challenges:

Difficulty in identifying offenders.

Limited awareness of the compensation process among victims.

3. Insurance and Third-Party Liability (Section 147)

Insurance is mandatory for all motor vehicles in India.

Third-Party Insurance: Covers liability towards third parties, including injury, death, or property
damage.

Responsibilities of Insurers:

Settle claims promptly.

Provide coverage as per the policy terms.

Example: If a motorcyclist hits a pedestrian, the insurance company of the motorcyclist covers
the compensation for the pedestrian’s injuries.

4. Tribunals for Compensation Claims (Section 165)

The Act establishes Motor Accidents Claims Tribunals (MACT) to adjudicate compensation
claims.

Jurisdiction: MACT has jurisdiction over all motor accident claims within its territorial limits.

Process:

Victims or their legal representatives can file claims.

Claimants must provide evidence of the accident and their losses.

Advantages of MACT:

Specialized forum for speedy resolution.

Relieves burden on regular courts.

5. Types of Compensation

a. Pecuniary Damages

Definition: Monetary losses suffered due to the accident.

Examples:
Medical expenses.
Loss of income.
Repair costs for damaged property.

b. Non-Pecuniary Damages

Definition: Non-monetary losses such as pain and suffering.

Examples:
Physical and emotional distress.
Loss of amenities.

c. Loss of Consortium

Definition: Compensation for the loss of companionship, care, and affection suffered by the
victim’s family.
Example: A spouse claiming for the emotional loss due to the partner’s death.

6. Assessment of Compensation

The following factors are considered while assessing compensation:

Age of the Victim: Younger victims generally receive higher compensation.

Income: Compensation depends on the income of the deceased/injured.

Extent of Disability: Partial or complete disability impacts the amount.

Loss of Dependency: Calculated for families based on the deceased’s financial contributions.

Case Example:
In Sarla Verma v. Delhi Transport Corporation (2009), the Supreme Court established guidelines
for calculating compensation in fatal accidents, focusing on age, dependency, and income.

7. Amendments and Enhancements

Motor Vehicles (Amendment) Act, 2019

The 2019 Amendment introduced significant changes:
Increased Compensation:
₹5,00,000 for death.
₹2,50,000 for permanent disability.
Time Limits: Insurers are required to settle claims within a specified time.
Guidelines for Structured Compensation: Ensures consistency in awards across similar cases.

8. Procedural Aspects

Filing Claims:
Claims can be filed with MACT in the accident's jurisdiction.
Documentation includes medical reports, police reports, and proof of income.

Time Limits:

Typically, claims must be filed within six months from the accident date.

9. Special Provisions

Structured Formula Basis (Section 163A)

Fixed compensation for victims with income up to ₹40,000 per annum.
Formula considers age and income without requiring proof of negligence.

Solatium Fund

A government-managed fund provides compensation for hit-and-run cases.

Objective: Ensure that victims receive relief even in the absence of identified offenders.

Conclusion

The Motor Vehicles Act, 1988, plays a pivotal role in ensuring that victims of road accidents
receive prompt and adequate compensation. Over the years, amendments like the 2019 Act
have strengthened its provisions, focusing on transparency, efficiency, and fairness. Despite
challenges, the Act continues to uphold the principles of justice and accountability on India’s
roads.