The Department of Consumer Affairs is actively working to empower consumers and modernize the consumer protection framework in India. The cornerstone of this effort is the Consumer Protection Act, 2019, which replaced the outdated Consumer Protection Act of 1986 to address the evolving landscape of globalization, technology, and e-commerce. A press release on the measures of improvement was issued on March 25, 2025.
Key Features of the Consumer Protection Act, 2019:
- Established a Central Consumer Protection Authority to prevent unfair trade practices and protect consumer interests.
- Enhanced pecuniary jurisdiction of consumer commissions, online complaint filing, and provisions for video conferencing for hearings streamline dispute resolution.
- Provisions for product liability hold manufacturers and sellers accountable for defective products.
- Stricter penalties for the manufacture and sale of adulterated or spurious goods.
- E-commerce and Direct Selling Regulations have been formulated to prevent unfair trade practices in the online and direct selling sectors.
- Three-Tier Consumer Commissions system at the District, State, and National levels provides accessible and speedy redressal for consumer grievances.
The National Consumer Helpline (NCH) has emerged as a crucial pre-litigation platform for consumers to register grievances. Accessible through a toll-free number (1915) and various digital channels (WhatsApp, SMS, email, app, and web portal), the NCH provides support in 17 languages. Over 1000 companies have partnered with the NCH to directly address consumer complaints, fostering a more efficient resolution process.
To protect consumers from unfair practices in the burgeoning e-commerce sector, the Department of Consumer Affairs notified the Consumer Protection (E-commerce) Rules, 2020. These rules clearly define the responsibilities of e-commerce entities and their liabilities.
In a significant step towards consumer safety, 13 major e-commerce companies, including prominent names like Reliance Retail and Tata Sons, have signed a “Safety Pledge.” This voluntary commitment aims to ensure the safety of goods sold online and uphold consumer rights, aligning with global best practices.
The CCPA, established in 2020, actively intervenes to prevent consumer detriment. Its mandate includes tackling false or misleading advertisements and initiating class actions.
Recognizing the deceptive tactics used in the digital space, the CCPA has issued “Guidelines for Prevention and Regulation of Dark Patterns, 2023.” These guidelines identify and address 13 specific manipulative practices prevalent in the e-commerce sector.
The CCPA has also issued guidelines to prevent misleading advertisements and endorsements, ensuring that advertisements reflect genuine opinions and are based on accurate information.
Further strengthening consumer protection, the CCPA has introduced guidelines to combat “greenwashing” and misleading environmental claims, effective from October 15, 2024. Additionally, guidelines addressing false claims and unfair practices in the coaching sector came into effect on November 13, 2024.
Significant Enforcement Actions:
The CCPA has taken strong action against various entities for violating consumer rights:
- Coaching Institutes: Penalties totaling ₹77.60 lakhs have been imposed on 24 coaching institutes for misleading advertisements. The Department has also secured ₹1.56 crores in refunds for students.
- E-commerce Platforms: Action has been taken against e-commerce platforms for various violations, including the sale of non-compliant pressure cookers.
- Travel Companies: As of March 20, 2024, travel companies have refunded ₹1,454 crores to consumers for cancelled flights due to the COVID-19 lockdown, as per CCPA directives.
- Car Seat Belt Alarm Stoppers: Over 13,000 listings of unsafe car seat belt alarm stopper clips have been delisted from major e-commerce platforms.
Protecting Consumers from Fake Reviews
The Bureau of Indian Standards (BIS) has notified a framework for “Online Consumer Reviews” to safeguard consumers from deceptive reviews in the e-commerce space. These voluntary standards promote integrity, accuracy, transparency, and other key principles.
Under the CONFONET scheme, video conferencing equipment has been installed in numerous consumer commission benches across the country, facilitating remote hearings and improving accessibility to justice.
