26Jun, 2025
Reimagining Consumer Justice: From the 1986 Act to the Consumer Protection Bill, 2018

Reimagining Consumer Justice: From the 1986 Act to the Consumer Protection Bill, 2018

A Lawyer’s Perspective on the Evolution of Consumer Protection in India

In a rapidly digitising world, consumer rights are no longer confined to traditional buyer-seller relationships. With online marketplaces, influencer-driven marketing, and cross-border e-commerce, the original Consumer Protection Act, 1986, though path-breaking in its time, had become obsolete. As a legal professional closely working with consumer disputes, the Consumer Protection Bill, 2018 was a welcome development an earnest attempt to modernise the law and bring it in tune with today’s realities.

Why the 1986 Act Needed a Redesign

The 1986 Act was a landmark legislation that provided for the establishment of consumer councils and adjudicatory forums. However, over time, it became evident that:

• There were no effective deterrents against misleading advertisements and unfair trade practices.
• Product liability was not clearly defined, often leaving consumers at the mercy of manufacturers.
• E-commerce platforms were not adequately regulated.
• Consumer forums were overburdened, causing delays in justice.

A mere amendment would not suffice. What the country needed was an overhaul a fresh piece of legislation grounded in the same philosophy but responsive to modern consumer ecosystems.

The 2018 Bill: A Progressive Step Toward Accountability

A. Central Consumer Protection Authority (CCPA)

The establishment of the CCPA marked a significant institutional shift. Unlike the passive adjudicatory nature of consumer forums, the CCPA was created with quasi-judicial powers, empowering it to:

• Conduct investigations into unfair trade practices.
• Order product recalls.
• Impose penalties on manufacturers and endorsers.
• Initiate class-action suits.

For legal practitioners, the CCPA introduced a more proactive system of consumer enforcement, removing the burden from individual litigants.

B. Codification of Product Liability

The Bill provided a long-awaited definition of product liability, enabling consumers to sue for harm caused by:

• Manufacturing defects,
• Design defects,
• Deficiency in service,
• Breach of warranty.

Importantly, liability was extended not just to manufacturers, but also to service providers and sellers, thereby introducing a chain of accountability. This shift changed the dynamics of litigation, as practitioners could now build stronger cases with multi-tiered responsibility.

 

C. Regulation of Misleading Advertisements

With the rise of influencer culture and celebrity endorsements, the 2018 Bill addressed the need for ethical advertising. Key features included:

• Imposing fines on endorsers who promote misleading products.
• Penalising false claims in advertisements with monetary penalties and even imprisonment.
• Empowering the CCPA to direct discontinuation of such advertisements.

As counsel advising both brands and endorsers, the legal community was tasked with ensuring advertising due diligence a role that had been underemphasised before.

D. Unfair Contracts & Consumer Rights

For the first time, the Bill identified and declared specific contract terms as “unfair”, such as:

• Excessive security deposits,
• Unilateral termination clauses,
• Disproportionate penalty clauses.

This empowered consumers to challenge standard-form contracts, especially in sectors like telecom, banking, and housing, where negotiation was practically impossible. Lawyers now had a statutory backing to litigate against predatory corporate behaviour.

3. Strengthened Dispute Resolution Framework

The traditional three-tier system District, State, and National Commissions was retained, but key improvements were introduced:

• Revised pecuniary jurisdiction to account for inflation and reduce case backlog.
• E-filing of complaints to simplify access.
• Introduction of mediation cells as an alternative dispute resolution mechanism.

For advocates and law firms, this opened up faster resolution options and minimised the need for prolonged adversarial litigation.

Challenges and Concerns in Legal Circles

While the Bill was largely welcomed, the legal fraternity raised valid concerns:

• The appointment of members to consumer commissions was not exclusively judicial in nature, potentially affecting the quality of adjudication.
• The executive’s role in regulatory oversight created fears of undue influence over consumer forums.
• The burden on small sellers, particularly in e-commerce, to comply with complex liability norms was seen as excessive.

It became imperative for lawyers to not only litigate but also assist businesses in understanding their new responsibilities under the law.

Transformation into the Consumer Protection Act, 2019

The Consumer Protection Bill, 2018 was the foundation stone of what eventually became the Consumer Protection Act, 2019, which came into effect on 20th July 2020. Key provisions from the 2018 Bill were retained, and some were further strengthened:

• The CCPA was made operational with enforcement wings and investigative arms.
• E-commerce platforms were brought under mandatory obligations like displaying country of origin, grievance redressal, and data protection.
• Celebrity endorsers were held legally accountable, with actual penalties being imposed in some instances post-2020.

The Road Ahead: A Lawyer’s Role in a New Era

This legal transformation signifies more than statutory changes it calls for a change in legal consciousness. As lawyers, we must:

• Assist consumers in leveraging new rights and remedies.
• Guide businesses on compliance and fair practices.
• Advocate for independence and capacity-building of consumer commissions.
• Push for greater awareness so that laws are not just written but implemented.

The evolution from 1986 to 2018 and finally, to the Act of 2019signals a more equitable and responsive legal system for consumers. The journey is far from over, but as legal professionals, we now have better tools to ensure that consumer sovereignty is not just a slogan but a living reality.

Blogs Written By Sharmita Samant (4th Year BALLB)

NMIMS Kirit. P. Mehta School of Law