Taxmann's Consumer Protection Act 2019 with Rules

Page 1


BE it enacted by Parliament in the Thirty-sixth year of the Republic as follows:—

CHAPTER I PRELIMINARY

Short title, extent and commencement.

1. (1) This Act may be called the Narcotic Drugs and Psychotropic Substances 1985.

(2) It extends to the whole of India 3[and it applies also— (a) to all citizens of India outside India; (b) to all persons on ships and aircrafts registered in India, wherever they may be.]

(3) It shall come into force on such date4 as the Central Government may, fication in the Official Gazette, appoint, and different dates may be appointed different provisions of this Act and for different States and any reference such provision to the commencement of this Act shall be construed in any State as a reference to the coming into force of that provision in that

Inserted by the Narcotic Drugs Psychotropic Substances (Amendment) Act, 1988,

Inserted by the Narcotic Drugs and Psychotropic Substances (Amendment) Act,

Notification No. S.O. 821(E), dated 14-11-1985.

by notiappointed for in any relation to State.

© Taxmann Price : ` 245

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Disclaimer

Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications.

No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action.

For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.

CONSUMER PROTECTION ACT, 2019

CHAPTER I PRELIMINARY

1. Short title, extent, commencement and application 1

2. Definitions 2

CHAPTER II

CONSUMER PROTECTION COUNCILS

3. Central Consumer Protection Council 18

4. Procedure for meetings of Central Council 18

5. Objects of Central Council 18

6. State Consumer Protection Councils 18

7. Objects of State Council 19

8. District Consumer Protection Council 19

9. Objects of District Council 19

CHAPTER III

CENTRAL CONSUMER PROTECTION AUTHORITY

10. Establishment of Central Consumer Protection Authority 19

11. Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners 20

12. Vacancy, etc., not to invalidate proceedings of Central Authority 20

IV

42.

43.

44.

45.

46.

71. Enforcement of orders of District Commission, State Commission and National Commission

72. Penalty for non-compliance of order 63

73. Appeal against order passed under section 72 64

CHAPTER V MEDIATION

74 to 81. [Omitted by the Mediation Act, 2023, with effect from a date yet to be notified] 64

CHAPTER VI

PRODUCT LIABILITY

82. Application of Chapter

85.

86.

87.

CHAPTER VII OFFENCES AND PENALTIES

88. Penalty for non-compliance of direction of Central Authority 68

89. Punishment for false or misleading advertisement

90. Punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant

91. Punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods

92. Cognizance of offence by court

93. Vexatious search

CHAPTER VIII

94. Measures to prevent unfair trade practices in e-commerce, direct selling, etc.

95. Presidents, members, Chief Commissioner, Commissioner and certain officers to be public servants

96. Compounding of offences

104.

105.

1.

CONSUMER PROTECTION (CENTRAL CONSUMER PROTECTION COUNCIL) RULES, 2020

CONSUMER PROTECTION

DISPUTES REDRESSAL COMMISSIONS) RULES, 2020

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

CONSUMER PROTECTION (GENERAL) RULES, 2020

CONSUMER PROTECTION (MEDIATION) RULES, 2020

4. Matters not to be referred to mediation

5. Refund of fee

6. Resort to arbitral or judicial proceedings

7. Settlement agreement not to be discharged by death of party thereto

CONSUMER PROTECTION (E-COMMERCE) RULES, 2020

1. Short title and commencement

2. Scope and Applicability

3. Definitions

4. Duties of e-commerce entities

5. Liabilities of marketplace e-commerce entities

6. Duties of sellers on marketplace

7. Duties and liabilities of inventory e-commerce entities

8. Contravention of rules

CENTRAL CONSUMER PROTECTION AUTHORITY (ANNUAL REPORT) RULES, 2021

1. Short title and commencement

2. De nitions

3. Preparation and furnishing of annual report

FORM

CONSUMER PROTECTION (SEARCH AND SEIZURE AND COMPOUNDING OF OFFENCES BY THE CENTRAL AUTHORITY

CREDITING OF PENALTY) RULES, 2021

1. Short title and commencement

2. De nitions

3. Procedure of taking copies or extracts of documents, records, or articles seized or produced

4. Disposal of articles subject to speedy or natural decay

5. Compounding of offences

6. Powers and duties of compounding of cer

7. Credit of penalty under section 21 and section 96 of the Act

I

CENTRAL CONSUMER PROTECTION AUTHORITY (FORM OF ANNUAL STATEMENT OF ACCOUNTS AND RECORDS) RULES, 2021

1. Short title and commencement

2. De nitions

3.

CONSUMER PROTECTION (DIRECT SELLING) RULES, 2021

1. Short title and commencement

2. Application

3. De nitions

4. Mandatory maintenance of records

5. Obligations of direct selling entity

6. Obligations of direct seller

7. Duties of direct selling entity and direct seller

8. Persons not to be engaged in the business of direct selling

9. Application of e-commerce rules

10. Prohibition of Pyramid Scheme and money

11. Monitoring by State

12. Inconsistencies in

13. Contravention of

1.

3.

4.

5.

CONSUMER PROTECTION (JURISDICTION OF THE DISTRICT COMMISSION, THE STATE COMMISSION AND THE NATIONAL COMMISSION) RULES, 2021

CONSUMER PROTECTION (ADMINISTRATIVE CONTROL OVER THE STATE COMMISSION AND THE DISTRICT COMMISSION) REGULATIONS, 2020

1.

4.

8.

CONSUMER PROTECTION (CONSUMER COMMISSION PROCEDURE) REGULATIONS, 2020

1.

3.

4.

5.

7. Institution of complaints, appeals and revision petitions

8. Nomenclature to be given to the complaints, appeals etc.

9. Scrutiny of complaint, appeal, petition and revision petition

10. Issue of notice

11. Adjournment

12. Hearing by Benches

13. Arguments

14. Limitation

15.

16. Appearance of Voluntary

17.

18.

19.

20.

1.

2.

CONSUMER PROTECTION (MEDIATION) REGULATIONS, 2020

3. Eligibility for empanelment

4. Disqualifications for empanelment

5. Procedure for empanelment of mediator

6. Removal of mediator

7. Re-empanelment of mediator

8. Fee of mediators

9. Training

10. Code of conduct

11. Mediation proceedings

12. Role of mediator

13. Confidentiality

14. Communications

15. Immunity

16. Reports

CENTRAL CONSUMER PROTECTION

AUTHORITY (ALLOCATION AND TRANSACTION OF BUSINESS) REGULATIONS, 2020

1. Short title and commencement

2. Definitions

3. Procedure for transaction and allocation of business

4. Manner and form in which contracts may be executed

5. Affixation of Common Seal

6. Reimbursement

7. Effect of any irregularity of procedure

CENTRAL

CONSUMER PROTECTION

AUTHORITY (PROCEDURE FOR ENGAGEMENT OF EXPERTS AND PROFESSIONALS) REGULATIONS, 2021

1. Short title and commencement

2. De nitions

3. Engagement of experts and professionals

4. Functions of experts and professionals

5. Qualifications, experience and classification of experts and professionals 158

6. Remuneration payable to experts and professionals 158

7. Evaluation of performance 158

8. Procedure of selection of experts and professionals 158

9. Terms and condition of engagement of experts and professionals

10. Power to relax

11. Interpretation

CENTRAL

CONSUMER PROTECTION AUTHORITY (SUBMISSION OF INQUIRY OR INVESTIGATION BY THE INVESTIGATION WING)

REGULATIONS, 2021

1. Short title and commencement

2. Definitions

3. Opinion on existence of prima facie case

4. Preliminary inquiry

5. Issue of direction to cause investigation on prima facie case

6. Communication of order when no prima facie case found

7. Investigation by the Director General

GUIDELINES FOR PREVENTION OF MISLEADING ADVERTISEMENTS AND ENDORSEMENTS FOR MISLEADING ADVERTISEMENTS, 2022

1 Short title and commencement

2. Definitions

3. Application

4. Conditions for non-misleading and valid advertisement

5. Conditions for bait advertisements

6. Prohibition of surrogate advertising

7. Free claims advertisements

8. Children targeted advertisements

9. Advertisements prohibited by law

10. Guidelines not in derogation of other

11. Disclaimers in Advertisements

12. Duties of manufacturer, service provider, advertiser and advertising agency

13. Due diligence required for endorsement of advertisements

14.

GUIDELINES FOR PREVENTION AND REGULATION OF GREENWASHING OR MISLEADING ENVIRONMENTAL CLAIMS, 2024

1 Short title and commencement

2. Definitions

3. Application

4. Prohibition against engaging in

5. Substantiation of

6. Adequate disclosures

7. Other

8. Guidelines

9. Interpretation

10.

Consumer Protection Act, 2019 [35 OF 2019]*

An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

CHAPTER I PRELIMINARY

Short title, extent, commencement and application.

11. (1) This Act may be called the Consumer Protection Act, 2019.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall come into force on such date as the Central Government may, by notification†, appoint and different dates may be appointed for different States and

*Assented by the President of India on 9-8-2019.

1. Enforced with effect from 9-8-2019.

†Notification No. S.O. 2351(E), dated 15-7-2020 - In exercise of the powers conferred by sub-section (3) of section 1 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby appoints the 20th day of July, 2020 as the date on which the following provisions of the said Act shall come into force, namely:—

Chapter Sections

I Section 2

[Except clauses (4), (13), (14), (16), (40)]

II Sections 3 to 9 (both inclusive);

IV Sections 28 to 73 (both inclusive); [Except sub-clause (iv) of clause (a) of sub-section (1) of section 58]

V Sections 74 to 81 (both inclusive);

VI Sections 82 to 87 (both inclusive);

VII Sections 90 and 91;

[Except sections 88, 89, 92 & 93]

VIII - Sections 95, 98, 100

- Section 101 [Except clauses (f) to (m) and clauses (zg), (zh) and (zi) of sub-section (2)].

- Sections 102, 103, 105, 106, 107

[Except sections 94, 96, 97, 99, 104]

(Contd. on page 2)

S. 2

CONSUMER PROTECTION ACT, 2019 2

for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

(4) Save as otherwise expressly provided by the Central Government, by notification, this Act shall apply to all goods and services.

COMMENTS

SECTION NOTES

1.1 Short Title

The Short title of this Act is “the Consumer Protection Act, 2019” [Section 1(1)]

The Long title of the Act states that this is an Act to protect consumers’ interests by establishing authorities for the timely and effective settlement of consumer disputes.

1.2 Applicability of this Act to all goods and services save those expressly exempted from this Act by the Central Government by notification

This Act shall apply to all goods [See Section 2(21)] and services [See Section 2(42)], except those which are expressly exempted from the purview of this Act by the Central Government by notification in the Official Gazette.

Definitions.

2. In this Act, unless the context otherwise requires,—

2(1) “advertisement” means any audio or visual publicity, representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents;

(Contd. from page 1)

Noti cation No. S.O. 2421(E), dated 23-7-2020.—In exercise of the powers conferred by sub-section (3) of section 1 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby appoints the 24th day of July, 2020 as the date on which the following provisions of the said Act shall come into force, namely:—2

Chapter Sections

I De nition Section 2 [clauses (4), (13), (14), (16), (40)]

III Central Consumer Protection Authority Sections 10 to 27 (both inclusive)

IV Consumer Disputes Redressal Commission Sub-clause (iv) of clause (a) of sub-section (1) of

VII Offences and Penalties Sections 88, 89, 92 and 93.

VIII Miscellaneous - Sections 94, 96, 97 and 99.

- Clauses (f) to (m) of sub-section (2) and clauses (zg), (zh) and (zi) of sub-section (2) of section 101 - Section 104

2. Enforced with effect from 20-7-2020.

3(2) “appropriate laboratory” means a laboratory or an organisation—

(i) recognised by the Central Government; or

(ii) recognised by a State Government, subject to such guidelines as may be issued by the Central Government in this behalf; or

(iii) established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect;

3(3) “branch office” means—

(i) any office or place of work described as a branch by the establishment; or

(

ii) any establishment carrying on either the same or substantially the same activity carried on by the head office of the establishment;

4(4) “Central Authority” means the Central Consumer Protection Authority established under section 10;

3(5) “complainant” means—

(i) a consumer; or

(ii) any voluntary consumer association registered under any law for the time being in force; or

(iii) the Central Government or any State Government; or

(iv) the Central Authority; or

(v) one or more consumers, where there are numerous consumers having the same interest; or

(vi) in case of death of a consumer, his legal heir or legal representative; or

(vii) in case of a consumer being a minor, his parent or legal guardian;

3(6) “complaint” means any allegation in writing, made by a complainant for obtaining any relief provided by or under this Act, that—

(i) an unfair contract or unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;

(ii) the goods bought by him or agreed to be bought by him suffer from one or more defects;

(iii) the services hired or availed of or agreed to be hired or availed of by him suffer from any deficiency;

(iv) a trader or a service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price—

(a) fixed by or under any law for the time being in force; or

3. Enforced with effect from 20-7-2020.

4. Enforced with effect from 24-7-2020.

(

(

b) displayed on the goods or any package containing such goods; or

(c) displayed on the price list exhibited by him by or under any law for the time being in force; or

(d) agreed between the parties;

(v) the goods, which are hazardous to life and safety when used, are being offered for sale to the public—

(a) in contravention of standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force;

(

b) where the trader knows that the goods so offered are unsafe to the public;

vi) the services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by a person who provides any service and who knows it to be injurious to life and safety;

(vii) a claim for product liability action lies against the product manufacturer, product seller or product service provider, as the case may be;

COMMENTS

SECTION NOTES

2.1 Definition of “Consumer” [Section 2(7)]

(A) The term “consumer” is defined to mean the following:

(a) Any person who buys any goods for a consideration.

(b) Any user of such goods other than the person in (a) above who uses the goods with the approval of such person.

(c) Any person who hires or avails of any service for a consideration.

(d) Any beneficiary of service other than the person in (c) above, when such services are availed by the beneficiary with the approval of such person.

(B) Consideration for goods/services may be paid or promised or partly paid and partly promised, or payable under any system of deferred payment.

(C) The expressions “buys any goods” and “hires or avails any services” include. offline or online transactions through electronic means [e-commerce-Section 2 (16)] or by teleshopping, direct selling, or multi-level marketing;

(D) The term “consumer” shall not include a person who obtains such goods for resale or for any commercial purpose.

(E) The term “consumer” shall not include a person who avails such service for any commercial purpose.

CONSUMER PROTECTION ACT, 2019 S. 2

(F) The expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of selfemployment.

2.2 Definition of “Complaint” [Section 2(6)]

The ingredients of a “Complaint” are: It is an allegation.

Allegation is regarding any of the following matters [sub-clauses (i) to (vii) of this clause]:

Unfair contract [See Section 2(46)]

Unfair Trade Practice(UTP) [See Section 2(47)]

Restrictive Trade Practice(RTP) [See Section 2(41)]

Defects in goods bought

Deficiency in services hired/availed

Charging excess price

Goods offered for sale are hazardous/unsafe

Services are hazardous/unsafe

Claim for product liability action against the product manufacturer, product seller or product service provider.

Allegation is made by a complainant [See Section 2(5)]

Allegation is in writing,

Allegation is made for obtaining any relief provided by or under this Act. In other words, the complaint must seek any relief provided by this Act.

Allegations that may be made by a complainant (as per sub-clauses (i) to (vii) of this clause) in a complaint may be one or more of the following:

2.2-1 Unfair contract/UTP/RTP

an unfair contract [See Section 2(46)] or unfair trade practice [See Section 2(47)] or a restrictive trade practice [See Section 2(41)] has been adopted by any trader [See Section 2(45)] or service provider;

2.2-2 Defects in goods bought/agreed to be bought the goods [See Section 2(21)] bought by him or agreed to be bought by him suffer from one or more defects [See Section 2(10)];

2.2-3 Deficiency in services the services [See Section 2(42)] hired or availed of or agreed to be hired or availed of by him suffer from any deficiency [See Section 2(11)];

2.2-4 Overcharging of price

a trader or a service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price—

(a) fixed by or under any law for the time being in force; or

(b) displayed on the goods or any package containing such goods; or

(c) displayed on the price list exhibited by him by or under any law for the time being in force; or

(d) agreed between the parties;

2.2-5 Hazardous/unsafe goods

the goods, which are hazardous to life and safety when used, are being offered for sale to the public—

(a) in contravention of standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force;

(b) where the trader knows that the goods so offered are unsafe to the public;

2.2-6 Hazardous services

the services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by a person who provides any service and who knows it to be injurious to life and safety;

2.2-7 Claim for product liability action

a claim for product liability action lies against the product manufacturer, product seller or product service provider, as the case may be;

2.3 Defect [Section 2(10)]

“Defect” means any fault, imperfection or shortcoming in relation to any goods or product.

Such fault, imperfection or shortcoming may be in the quality, quantity, potency, purity or standard of the goods/product.

The existence of such fault, imperfection or shortcoming is to be judged/determined with reference to:

quality, quantity, potency, purity or standard of the goods/product which is required to be maintained by or under any law for the time being in force, or quality, quantity, potency, etc required to be maintained under any contract, express or implied, or

quality, quantity, potency, etc claimed by the trader in any manner whatsoever in relation to the goods or product.

The expression “defective” shall be construed accordingly.

2.4 Deficiency [Section 2(11)]

“Deficiency” means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of a service.

Such fault, imperfection, shortcoming or inadequacy is to be judged/ determined with reference to:

quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force.

quality, nature and manner of performance which has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

The term “deficiency” also includes:

(i) any act of negligence or omission or commission by such person which causes loss or injury to the consumer; and

(ii) deliberate withholding of relevant information by such person to the consumer;

2.5 Goods [Section 2(21)]

“Goods” means every kind of movable property.

CONSUMER PROTECTION ACT 2019 WITH RULES – BARE ACT WITH SECTION NOTES

AUTHOR : TAXMANN'S EDITORIAL BOARD

PUBLISHER : TAXMANN

DATE OF PUBLICATION : JUNE 2025

EDITION : 2025 EDITION

ISBN NO : 9789371269377

NO. OF PAGES : 196

BINDING TYPE : PAPERBACK

DESCRIPTION

Consumer Protection Act 2019 with Rules [Bare Act with Section Notes] by Taxmann is a compact statutory reference, updated for 2025. It consolidates the Act with all related rules, regulations, and the latest guidelines, including the 2024 standards on greenwashing and misleading environmental claims. Section-wise notes provide clear interpretative guidance and compliance tips, making this book essential for navigating India's consumer protection framework.

This book is intended for the following audience:

• Legal Practitioners & Judicial Officers

• Corporate Counsels, Compliance Officers & Industry Executives

• Consumer Rights Organisations, Activists & NGOs

• Academicians, Researchers & Students

• Consumers & General Public

The Present Publication is the 2025 Edition, covering the amended and updated text of the Consumer Protection Act [Act No. 35 of 2019] and Rules, with the following noteworthy features:

•[Complete & Updated Text] Full text of the Consumer Protection Act 2019 with all current amendments and notifications

•[Latest Regulatory Coverage] Includes all recent rules, such as those on e-commerce, direct selling, mediation, misleading advertisements (2022), and greenwashing (2024)

•[Section Notes] Practical notes clarify statutory terms, compliance obligations, and important judicial developments

•[Pre & Post-Amendment References] Provides footnotes on prior legal positions for easy comparison

•[Comprehensive Allied Legislation] Covers all allied rules, regulations, and administrative provisions

•[User-friendly Design] Logical organisation, detailed subject index, and navigable tables for efficient research

•[Trusted Reference] Widely used by practitioners, courts, compliance professionals, and researchers

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