The 1986 consumer law was written for a world where you bought things from a shop you could walk back into. It had no answer for a marketplace that is only an app, a seller three states away who exists as a listing, or a celebrity paid to recommend a product they have never used. The 2019 Act was written for that world, and it came with a regulator rather than only a complaint form.
The Consumer Protection Act, 2019, in force from 9 August 2019, gives consumers six enforceable rights, a three-tier complaint system where jurisdiction follows the price paid rather than the compensation claimed, a regulator in the CCPA, and a product liability regime.
The bottom line
Where you file: District up to ₹50 lakh, State above ₹50 lakh up to ₹2 crore, National above ₹2 crore — based on the consideration paid. You can file where you live or work, not only where the seller is.
How and by when: online through E-Daakhil, generally within two years of the cause of action, without a lawyer.
What it does not cover: goods bought for resale or a commercial purpose, though there is an exception where you use them to earn a livelihood by self-employment.
What changed from the 1986 Act
The 2019 Act created a regulator, the Central Consumer Protection Authority, with powers to investigate and penalise. It brought e-commerce and electronic service providers within scope, created a product liability regime, tackled misleading advertisements and endorsements including by celebrities and influencers, allowed online filing and mediation, and changed the basis of pecuniary jurisdiction to the value of consideration paid.
The shift underneath all of that: consumer protection stopped being a forum that waits for complaints and became a framework that can act on its own.
Who counts as a consumer
A person who buys goods or avails services for consideration, including online.
The definition excludes someone who obtains goods for resale or for a commercial purpose, with an exception for those who use them to earn a livelihood by self-employment. An individual buying a laptop for personal use is a consumer. A trader buying laptops to resell generally is not. A self-employed person buying one laptop to do their own work usually still is.
The six rights
- To be protected against goods and services hazardous to life and property.
- To be informed about quality, quantity, purity, standard and price.
- To be assured access to a variety of goods at competitive prices.
- To be heard.
- To seek redressal against unfair or restrictive trade practices.
- To consumer education.
The three-tier system
Consumer disputes are decided by a three-level quasi-judicial structure: the District Commission in each district as the entry level, the State Commission hearing larger claims and appeals from District Commissions, and the National Commission, the NCDRC, hearing the largest claims and appeals from the States.
These commissions have powers similar to a civil court. They can order refunds, replacement, compensation, removal of defects and the discontinuance of unfair practices.
Which commission, and where
Pecuniary jurisdiction follows the value of the goods or services paid as consideration, not the compensation you claim. That reversal from the old law catches people out constantly.
| Commission | Value of consideration paid |
|---|---|
| District | Up to ₹50 lakh |
| State | Above ₹50 lakh up to ₹2 crore |
| National | Above ₹2 crore |
The limits above reflect the 2021 revision, and the Supreme Court has upheld the consideration-based structure as constitutionally valid. You cannot inflate the compensation claimed to reach a higher commission — jurisdiction follows the price paid, and a complaint filed at the wrong level comes back.
Territorial jurisdiction was widened at the same time. You can file where you reside or work, rather than only where the opposite party sits, which is what makes the Act usable against a distant online seller.
The CCPA
The Central Consumer Protection Authority protects consumers as a class rather than one complaint at a time. It can investigate violations, order the recall of unsafe goods, order refunds, require unfair trade practices to stop, and act against misleading advertisements.
Its reach extends to endorsers. It can impose penalties on manufacturers, advertisers and endorsers, and bar an endorser from making endorsements altogether. The influencer disclosure rules everyone now recognises come from this power.
Product liability
The Act lets a consumer claim compensation for harm caused by a defective product or a deficient service. Liability can attach to the manufacturer, the seller or the service provider, depending on where the defect lies — in manufacturing, in design, in inadequate instructions or warnings, or in the service itself.
This is a separate route from a refund claim, and it is the one to use when the defect caused actual injury or loss rather than disappointment.
E-commerce and advertising
The Act and the Consumer Protection (E-Commerce) Rules bring online marketplaces and sellers within consumer law. They require clear seller details, transparent pricing, a grievance officer and proper handling of returns and refunds, and they prohibit unfair practices including fake reviews.
The CCPA's guidelines on misleading advertisements and endorsements require that a paid endorsement disclose the material connection, and that claims be capable of substantiation.
Remedies, mediation and appeals
A commission can order removal of the defect, replacement of goods, refund of the price, compensation for loss or injury including for negligence, discontinuance of an unfair practice, withdrawal of hazardous goods, and costs.
Mediation is available where both sides agree, and is faster than adjudication. Appeals run from District to State, commonly within 45 days, then State to National, and National to the Supreme Court.
Complaints are filed online through E-Daakhil, and the limitation is generally two years from the cause of action, with delay condonable for sufficient cause.
A worked example
A consumer in Pune buys a ₹40,000 appliance online from a Delhi-based seller. It arrives defective and the seller stonewalls.
The consideration paid is ₹40,000, under ₹50 lakh, so the District Commission is the right forum. Because territorial jurisdiction was widened, she files in Pune where she lives rather than in Delhi. She files online through E-Daakhil, within the two-year limit.
The District Commission can order a replacement or refund plus compensation. Had the appliance caused injury, she could additionally have pursued a product liability claim against the manufacturer.
Common mistakes
- Choosing the commission by the compensation claimed instead of the consideration paid, which gets the complaint returned.
- Assuming you must file where the seller is. You can file where you reside or work.
- Missing the two-year limit from the cause of action.
- Treating a purchase made for a commercial purpose as a consumer transaction, when it usually falls outside the Act.
- Claiming only a refund when a defect caused real harm, and overlooking product liability.
Frequently asked questions
Who counts as a consumer under the Act? Anyone buying goods or availing services for consideration for personal use, including online — but not for resale or a commercial purpose, subject to the self-employment exception.
Where do I file a consumer complaint? In the commission matching the consideration paid: District up to ₹50 lakh, State from ₹50 lakh to ₹2 crore, National above ₹2 crore. You can file where you reside or work, online through E-Daakhil.
What is the time limit? Generally two years from the date the cause of action arose, with delay condonable for sufficient cause.
What is the CCPA? The Central Consumer Protection Authority — a regulator that protects consumers as a class, acts against misleading advertisements and unfair practices, and can penalise advertisers and endorsers.
Can I claim for injury caused by a defective product? Yes, through the product liability provisions, against the manufacturer, seller or service provider depending on where the defect arose.
Do I need a lawyer? No. The commissions are designed for consumers to appear themselves, and filing is online.