"A Consumer is the most important visitor on our premises. He is not dependent on us we are on him. He is not an interruption to our work; he is the purpose of it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving an opportunity to serve him." 

                 Mahatma Gandhi

Technology and digitalization have changed almost everything today. With the coming in of e-commerce, the process a consumer goes through for purchasing products and availing services has also been revamped. The rapid advancement of technology, coupled with the widespread use of the internet and online platforms, has transformed the consumer landscape. Consumers can now get products and services delivered to their doorstep, customized according to their personal needs and the payment for such products and services is just a click away. While the digital era has brought convenience, access to a vast array of choices, and new opportunities, it has also presented unique challenges for consumer rights. Considering the changes to the way things are being bought and sold in the fast-paced world of e-Commerce, and the challenges associated with it, and to further protect consumer interests in the country, the government decided to replace the three decade old Consumer Protection Act 1986[1]. Accordingly, the Consumer Protection Act, 2019[2]  was enacted, which received the President’s assent on August 9, 2019. Specific provisions related to product liability, misleading advertisements, e-commerce, e-Consumers, mediation, increase in pecuniary jurisdiction in district, state and national commissions, and the introduction of a central regulator (Central Consumer Protection Authority) are some of the notable features of CPA 2019.[[1]]  There is prima facie  transition of  business from physical space to cyber space. The citizens are popularly referred as netizens.[[2]]

The Consumer Protection Act, 2019 was passed to replace the Consumer Protection Act 1986 in order to further improve the measures for consumer protection, particularly in the modern era of globalisation, online platforms, e-Commerce marketplaces, etc. Among other things, it offers customers who deal online more safety. The concept of "consumer" has been expanded by the Consumer Protection Act 2019 to include those who purchase products or services online or through other electronic methods; this definition was not included in the Consumer Protection Act 1986.[[3]]

[1]Salient Features Of The Consumer Protection Act, 2019- September-October 2019 Volume IV, Issue 5 -consumer update-CAG, Retrieved from https://www.cag.org.in/sites/default/files/2020-11/Consumer_Update_September_October_2019.pdf- Accessed on 10th March

[2] Consumer protection in the age of digital transformation: A Judicial Response in India-Retrieved from https://www.researchgate.net/publication/346096349_Consumer_Protection_in_the_Age_of_Digital_Transformation_A_Judicial_Response_in_India- Accessed on 25 march 2024

[3] Consumer Protection Act, 2019 protects consumers involved in online transactions- Ministry of Consumer Affairs, Food & Public Distribution-  Retrieved from- https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1945167- accessed on 5th April 2024

The process of reviewing the literature helps us understand the subject area better and thus help the researcher to conceptualize the research problem clearly and precisely. The review of related literature as well as previous research work is of paramount importance in research effort. The study reviews a few books and Articles on the subjects. Much to the credit of academic interest of the intellectuals in relation.

[[1]] provides historical context, tracing the development of consumer protection laws in India. The enactment of the Consumer Protection Act, of 2019, reflects a transition towards more modern and consumer-centric legislation. [[2]] explores the Act's key provisions, such as the expanded definition of consumers, the establishment of the Central Consumer Protection Authority (CCPA), and the introduction of product liability. These provisions are designed to empower consumers and hold businesses accountable for their products and services. [[3]] explained that the new regulations are arguably strong enough to protect and safeguard online consumers' rights and boost India's e-commerce growth. 

[1] Bagchi, A. K. (2005). Consumer protection in India: Past, present, and future. Journal of Consumer Policy, 28(4), 339-369.

[2] Satish, M., & Karishma, D. (2020). A comprehensive analysis of the Consumer Protection Act, 2019. Indian Journal of Law and Justice, 11(2), 44-61. 

[3] Neelam Chawla & Basanta kumar,2021) E-Commerce and Consumer Protecion n India: The Emerging Trend. Retrieved from https:// doi.org/10.1007/s10551-021-04884-3 

This study employs a qualitative research design, focusing on a comprehensive analysis of legislative texts, government reports, academic literature, and case studies. This paper investigates the history of Indian consumer protection laws in response to the digital transition, with a  specific emphasis on the Consumer Protection Act of 2019. The transition from traditional frameworks to provisions specifically designed for e-consumers is brought to light in the research through an examination of legislative texts, government reports, academic literature, and case studies. The findings show that mechanisms for transparency, accountability, and dispute resolution have made significant progress. However, they also show that enforcement continues to face challenges and that ongoing legislative updates are necessary to keep up with the rapidly changing digital marketplace.

Historical Context of Consumer Protection Laws in India:

Consumer protection in India has evolved significantly over the decades. The foundation was laid with the Consumer Protection Act of 1986, which was a pioneering piece of legislation aimed at providing effective safeguards to consumers against various forms of exploitation such as defective goods, deficient services, and unfair trade practices. This Act established consumer councils and other authorities for the settlement of consumer disputes, offering a mechanism through which grievances could be addressed.

The 1986 Act was a landmark in consumer law, marking the beginning of a systematic approach to consumer rights in India. However, as the marketplace evolved, so did the nature of consumer grievances. The rise of the service sector, particularly telecommunications and financial services, brought new challenges that the 1986 Act was not fully equipped to handle. Amendments over the years sought to address these emerging issues, but the pace of change in the digital era outstripped these efforts.

The turn of the millennium saw an explosion in internet usage and the advent of e-commerce, fundamentally altering how consumers interacted with the marketplace. The convenience of online shopping came with its own set of problems, including fraudulent schemes, cybercrimes, and the difficulty of enforcing consumer rights across borders. The existing legal framework was increasingly seen as inadequate to deal with these modern challenges.

The digital age has revolutionized the way consumers interact with  busin es ses,  pr oduct s,   an d  s er vices .  T he  ra pid advancement of technology, coupled with the widespread use of  the  internet  and  online platforms,  has  transformed  the consumer  landscape.  While  the  digital  era  has  brought convenience,  access  to  a  vast  array  of  choices,  and  new opportunities,  it  has  also  presented  unique  challenges  for 

consumer right The digital age has revolutionized the way consumers interact with  busin es ses,  pr oduct s,   an d  s er vices .  T he  ra pid advancement of technology, coupled with the widespread use of  the  internet  and  online  platforms,  has  transformed  the consumer  landscape.  While  the  digital  era  has  brought convenience,  access  to  a  vast  array  of  choices,  and  new opportunities,  it  has  also  presented  unique  challenges  for consumer rights

Need for the new act:

• The Digital Age has ushered in a new era of commerce and digital branding, as well as a new set of customer expectations. The Consumer Protection Act of 1986 was inadequate for addressing modern digital commerce issues.

• The  Consumer Protection Act of 1986 was designed for a marketplace dominated by physical, in-person transactions. The rise of digital commerce created new types of consumer issues that the 1986 Act was not equipped to handle.

• With the surge in digital transactions, there has been an increase in the collection and misuse of consumer data. Consumers' personal information is often collected without adequate consent, leading to privacy breaches. The Act aims to provide better protection for consumer data.

• Digital transactions often involve multiple parties, including manufacturers, sellers, and third-party platforms. This complexity makes it difficult to determine accountability and resolve disputes effectively under the old law. The new Act introduces clear guidelines and responsibilities for all parties involved in e-commerce.

• Cross-Border Transactions- e-Commerce enables consumers to buy products from across the globe, but this introduces challenges related to jurisdiction and enforcement of consumer rights. The New Act seeks to address these challenges by providing a framework for cross-border consumer protection, ensuring that consumers have recourse even when dealing with international sellers

Recognizing the need for a comprehensive overhaul of consumer protection laws to address the realities of the digital age, the Indian government introduced the Consumer Protection Act, 2019[8]. This Act represents a significant milestone in the evolution of consumer protection laws in India, aiming to modernize and strengthen the legal framework to better protect consumers in a rapidly digitizing economy.

Key Features Consumer Protection Act, 2019:

• Inclusion of e-Commerce: The Consumer Protection Act 2019 explicitly includes e-commerce transactions within its scope, defining e-commerce as the buying or selling of goods or services including digital products over digital or electronic network.[[1]]

• Widened Definition of "Consumer": As compared to CPA 1986, the definition of “Consumer” has been broadened under CPA 2019 to reiterate the inclusion of online transactions through electronic means, teleshopping, direct selling and multi-level marketing [Section 2(7)(ii)(b)]. E-commerce has been specifically mentioned and is defined as buying and selling of goods/services/digital products, online [Section 2(16)].[[2]]

• Enhancement of Territorial Jurisdiction: The New Act now provides an added advantage to the consumers by providing for filing of complaints where the complainant resides or personally works for gain as against the 1986 Act which only provides for filing of complaint where the opposite party resides or carries on business. This would help in removing the difficulties faced by the consumers in seeking redressal of their grievances against businesses who may not have an office or branch in their state.

• Changes in the Pecuniary Jurisdiction: The Consumer Protection Act (CPA), 2019 brings in a few changes with regards to the pecuniary jurisdiction of the District Commission[[3]], State Commission[[4]], and the National Commission[[5]]. It increased monetary thresholds for determining jurisdiction and also changed the basis for determining jurisdiction .

• Establishment of the Central Consumer Protection Authority (CCPA): Under Section 10 of the CPA, 2019 a Central Consumer Protection Authority (Central Authority) is to be set up as a regulatory body. The Central Authority will regulate matters relating to a violation of rights of consumers, unfair trade practices, and false or misleading advertisements which are prejudicial to the interests of the public and consumers and to promote, protect and enforce the rights of consumers as a class. The Central Authority has been granted wide powers such as taking suo-moto cognizance, recall products, order reimbursement of the price of goods or services, cancel licenses and file class-action suits if a consumer complaint affects more than one individual.[[6]]

• Provisions for Product Liability: The new Act introduced the key concept of ‘product liability’[[7]], wherein action may be brought in against a product manufacturer, product service provider or product seller for any harm caused to the complainant on account of a defective product. It includes the seller who places an item for commercial purposes on the e-commerce platform as well.[[8]] We have not had any laws/regulations to govern product liability and thus, introduction of a separate chapter on product liability in CPA 2019 [Sections 82 - 87] is of great significance.

• e-Complaints: The Consumer Protection Act, 2019 also facilitates the consumers to file complaints online. In this regard, the Central Government has set up the e-Daakhil portal which provides a convenient, speedy and inexpensive facility to the consumers all over India so that they are able to approach the relevant consumer forums in case of any dispute arises.[[9]]

• Alternate Dispute Resolution: The new Act provides for mediation as an Alternate Dispute Resolution mechanism[[10]]. For mediation, there will be a strict timeline fixed in the rules. As per the recently notified rules, a complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and parties agree to it. The mediation will be held in the Mediation Cells to be established under the aegis of the Consumer Commissions. There will be no appeal against settlement through mediation.

• Consumer Rights :Under the 1986 Act, the rights of the consumers were only found as a passing reference under the objects of the Consumer Protection Councils. However, the New Act has defined six specific consumer rights.[[11]]

• A new addition in the form of an unfair contract[[12]] has been added in the CPA, 2019.

The Consumer Protection Act, 2019 when compared with the 1986 Act shows that it provides for greater protection of consumer interests taking into consideration the current age of digitization. The New Act also deals with the technological advancements in the industry, provides for easier filing of complaints and also imposes strict liability on businesses including endorsers for violating the interest of the consumers. The New Act prima-facie is much more consumer-friendly than the 1986 Act as it also includes the current industry trends of e-commerce. Certainly 2019 Act is a positive step towards reformation, development, and enhancing consumer rights. The real test for the New Act is in its implementation and some leeway needs to be given for it to actualize the relief for the consumers.

e-Consumer:

The Consumer Protection Act 2019 has widened the definition of ‘consumer’. As per Section 2(7) of the Act, a person is called a consumer who avails the services and buys any good for self-use. It is worth mentioning that if a person buys any good or avails any service for resale or commercial purposes, they are not considered a consumer. This definition covers all types of transactions, i.e. offline and online through teleshopping, direct selling or multi-level marketing. The definition of ‘Consumer’ under the old Consumer Protection Act 1986 did not include online transactions. 

In today’s digital-first economy, the definition of “consumer” must reflect the complexity and reach of modern marketplaces. Section 2(7) of the Consumer Protection Act, 2019 is a significant step forward, acknowledging the unique challenges of online shopping and ensuring that consumers have equal protections across both physical and digital platforms. This expanded definition helps maintain a balance between innovation in e-commerce and the rights of consumers, making India’s consumer protection laws among the most progressive and responsive in the world.

As the e-commerce industry in India continues to grow, this legislation not only protects individual consumers but also encourages a fair and transparent online marketplace. Section 2(7) highlights the government’s commitment to adapting laws to the digital age, supporting consumer rights while fostering a reliable, responsible e-commerce ecosystem.

Poonam Verma v. Snapdeal (2020)

 In this case, a consumer purchased a sub-standard product from an online marketplace, Snapdeal, and filed a complaint due to defects in the product. The National Consumer Disputes Redressal Commission (NCDRC) found that e-commerce platforms have a duty to protect consumers from defective products and unfair practices. The court ruled in favour of the consumer and held Snapdeal accountable as a facilitator of the sale. This case confirmed that online consumers have the right to seek compensation for defective products, extending the definition of "consumer" to include e-commerce transactions and ensuring that online marketplaces share the responsibility for product quality.

Amit Garg v. Zomato (2023)[[13]]

In this case, a consumer complained about Zomato due to unsatisfactory service and lack of prompt assistance after receiving a faulty food order. The consumer court found Zomato liable for poor customer service and lack of quality control over listed vendors. The court underscored that food delivery platforms must ensure transparency, quality, and adherence to consumer rights. This case expanded the understanding of e-consumer rights to include not only tangible goods but also services offered online. It ensures that platforms providing food delivery or similar services meet quality standards and provide redressal for grievances.

These cases underscore that under the Consumer Protection Act, 2019, the definition of “consumer” explicitly includes individuals who purchase goods and services online. These judgments have set critical precedents, affirming that e-consumers have full consumer rights, whether they purchase products or services online or offline.

At international level, OECD (The Organization for Economic Co-operation and Development),  has given some guidelines to protect consumers in online marketplace. Some of the guidelines are as follows[[14]]: 

•  Equal consumer protection when buying online or offline 

• Disclosure of complete information to the e- consumer, which also includes the information about the transactions 

• The payment system must be secure and reliable 

• Alternate dispute resolution in the case of international trade 

Alongside these international guidelines from the OECD, which promote secure payments, transparent information, and accessible dispute resolution, the "e-consumer" concept supports a balanced and reliable e-commerce ecosystem, safeguarding rights in a digital-first economy.

[1]Consumer Protection Act, 2019 protects consumers involved in online transactions- Ministry of Consumer Affairs, Food & Public Distribution-  Retrieved from- https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1945167- accessed on 7th April 2024

[2]Salient Features Of The Consumer Protection Act, 2019- September-October 2019 Volume IV, Issue 5 -consumer update-CAG, Retrieved from https://www.cag.org.in/sites/default/files/2020-11/Consumer_Update_September_October_2019.pdf- Accessed on 10th March

[3] Sec.34 Consumer Protection Act, 2019

[4] Sec. 47 Consumer Protection Act, 2019

[5] Sec. 58 Consumer Protection Act, 2019

[6]Salient Features Of The Consumer Protection Act, 2019- September-October 2019 Volume IV, Issue 5 -consumer update-CAG, Retrieved from https://www.cag.org.in/sites/default/files/2020-11/Consumer_Update_September_October_2019.pdf- Accessed on 2nd July 2024

[7] Product liability refers to the responsibility of a product manufacturer/seller of any product or service to compensate for any harm caused to the consumer by such defective product manufactured/sold or due to deficiency in services [Section 2(34) Consumer Protection Act, 2019].

[8] 5 Positive Key Features in Consumer Protection Act, 2019, Consumer Voice-Retrieved from https://consumer-voice.org/consumer-right-laws/5-positive-key-features-consumer-protection-act-2019/, Accessed on 13 April 2024

[9] Consumer Protection Act, 2019, i-Pleaders(22 April 2022), Retrieved from

https://blog.ipleaders.in/consumer-protection-act-2019-2/, Accessed on 12 April 2024

[10] Section 37, 49 & 59 of Consumer Protection Act, 2019

[11] Section 2(9), Consumer Protection Act, 2019: "consumer rights" includes,—
(i) the right to be protected against the marketing of goods, products or services which are hazardous to life and property; (ii) the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices; (iii) the right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices; (iv) the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate fora; (v) the right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and (vi) the right to consumer awareness;

[12] Section 2(46) Consumer Protection Act, 2019

[13] National Company Law Appellate Tribunal: Amit Garg vs Sh. Manoj Kulshreshta & Anr on 1 March, 2024

[14] Sanjay Kumar Mangla, Jill Atieno Juma and Ors- E-Commerce in the Context of Trade, Competition and Consumer Protection in India, Retieved from-https://www.cuts-citee.org/pdf/Discussion_Paper_E-Commerce_in_the_Context_of_Trade_Consumer_Protection_and_Competition_in_India.pdf

The Consumer Protection Act, 2019 is a significant step forward in safeguarding the rights of consumers in the digital age. By expanding the definition of consumers, introducing product liability, and creating stronger mechanisms for redressal, the Act aims to create a fair and competitive marketplace where consumers are empowered and protected. However, addressing implementation challenges and striking the right balance between consumer interests and business growth remains vital for the Act's success. The Act has implications for both consumers and businesses, with challenges and opportunities associated with its implementation. 

In my opinion, there is a need to create awareness among the consumers towards Consumer Protection Act, 2019. Many consumers suffer harm and still they don’t opt for filing a complaint as they are hesitant to file a complaint. They majorly think that who will go for such a long process but in reality government has introduced new initiatives like e-Daakhil to reduce the burden of consumers where they can file a complaint from any place they are living, even without hiring a lawyer they can fight by themselves. Such things should be communicated to the wider section of the society to protect the consumer’s interest. 

The Consumer Protection Act of 2019, represents a crucial step towards modernizing India's consumer protection laws in response to the challenges posed by the digital economy. However, there are several areas where further enhancements and reforms are necessary to effectively safeguard consumer rights in the digital era. Here are the key suggestions for enhancing Indian consumer protection laws for the digital era:

1. Empower Consumer Awareness: Increase efforts to educate consumers about their rights and responsibilities in the digital space. Launch awareness campaigns targeting digital platforms and social media to enhance consumer literacy.

2. Strengthen Data Protection Provisions: Amend the CPA to incorporate stronger data privacy regulations, aligning them with international standards like the GDPR. This includes defining clear guidelines on data collection, storage, consent, and breach notifications.

3. Clarify Liability of Online Platforms: Provide clarity on the liability of e-commerce platforms for products/services sold by third-party vendors. Establish mechanisms for swift resolution of disputes and ensure platforms adhere to fair business practices.

4. Enhance Consumer Redressal Mechanisms: Improve accessibility and efficiency of consumer dispute resolution mechanisms, particularly for online transactions. Explore options for online mediation and expedited adjudication to resolve disputes promptly.

5. Introduce Digital Literacy Programs: Integrate digital literacy programs into educational curricula and community outreach initiatives. These programs should focus on educating consumers, especially vulnerable groups, about safe online practices, recognizing scams, and understanding their consumer rights in digital transactions.

6. Encourage Consumer Feedback and Ratings Systems: Promote the use of transparent and reliable consumer feedback and ratings systems on digital platforms. Establish guidelines for platforms to manage and respond to consumer reviews, ensuring authenticity and fairness in feedback mechanisms.

7. Clarify Jurisdictional Ambiguities: Amend consumer protection laws to clarify jurisdictional ambiguities in digital transactions. Define clear rules for determining jurisdiction over disputes involving international e-commerce transactions, cross-border data flows, and digital service providers operating from outside India.

The authors declare that they have no conflict of interest

No funding sources

The study was approved by the Kashmir University.

1. Salient Features Of The Consumer Protection Act, 2019- September-October 2019 Volume IV, Issue 5 -consumer update-CAG, Retrieved from https://www.cag.org.in/sites/default/files/2020-11/Consumer_Update_September_October_2019.pdf- Accessed on 10th March

2. Consumer protection in the age of digital transformation: A Judicial Response in India-Retrieved from https://www.researchgate.net/publication/346096349_Consumer_Protection_in_the_Age_of_Digital_Transformation_A_Judicial_Response_in_India- Accessed on 25 march 2024

3. Consumer Protection Act, 2019 protects consumers involved in online transactions- Ministry of Consumer Affairs, Food & Public Distribution-  Retrieved from- https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1945167- accessed on 5th April 2024

4. Bagchi, A. K. "Consumer Protection in India: Past, Present, and Future." Journal of Consumer Policy, vol. 28, no. 4, 2005, pp. 339-369.

5. Satish, M., and Karishma, D. "A Comprehensive Analysis of the Consumer Protection Act, 2019." Indian Journal of Law and Justice, vol. 11, no. 2, 2020, pp. 44-61.

6. Neelam Chawla & Basanta kumar,2021) E-Commerce and Consumer Protecion n India: The Emerging Trend. Retrieved from https:// doi.org/10.1007/s10551-021-04884-3 

7. Consumer Protection Act, 2019

8. Product liability refers to the responsibility of a product manufacturer/seller of any product or service to compensate for any harm caused to the consumer by such defective product manufactured/sold or due to deficiency in services [Section 2(34) Consumer Protection Act, 2019].

9. 5 Positive Key Features in Consumer Protection Act, 2019, Consumer Voice-Retrieved from https://consumer-voice.org/consumer-right-laws/5-positive-key-features-consumer-protection-act-2019/, Accessed on 13 April 2024

10. Consumer Protection Act, 2019, i-Pleaders(22 April 2022), Retrieved from https://blog.ipleaders.in/consumer-protection-act-2019-2/, Accessed on 12 April 2024

11. National Company Law Appellate Tribunal: Amit Garg vs Sh. Manoj Kulshreshta & Anr. on 1 March, 2024

12. Sanjay Kumar Mangla, Jill Atieno Juma and Ors- E-Commerce in the Context of Trade, Competition and Consumer Protection in India, Retieved from-https://www.cuts-citee.org/pdf/Discussion_Paper_E-Commerce_in_the_Context_of Trade_Consumer_Protection_and_Competition_in_India.pdf