Salient Features of the Consumer Protection Act, 2019 — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Under section 34(1) of the Consumer Protection Act, 2019, the District Commission hears complaints where the consideration paid does not exceed:

   • Rs 10 lakh
   • Rs 1 crore, unless the Central Government prescribes another value (correct answer)
   • Rs 10 crore
   • There is no limit

   Explanation. Section 34(1) fixes the limit at Rs 1 crore and lets the Central Government prescribe another value. The 2021 Rules prescribed Rs 50 lakh. Section 107 repealed the Consumer Protection Act, 1986.

2. What is the single most significant structural innovation of the Consumer Protection Act, 2019?

   • Abolition of all consumer courts
   • The Central Consumer Protection Authority (CCPA), which can act suo motu (correct answer)
   • Making all consumer disputes criminal offences
   • Removing the right to appeal

   Explanation. The CCPA is a dedicated regulatory body that can investigate and act on its own initiative, without waiting for an individual consumer complaint — something the 1986 Act had no equivalent of.

3. How does the 2019 Act treat product liability differently from the position under the 1986 Act?

   • It abolishes product liability entirely
   • It introduces product liability as an independent statutory chapter, rather than leaving it as only a common-law extension of negligence (correct answer)
   • It makes product liability applicable only to imported goods
   • It transfers all product liability claims to criminal courts

   Explanation. The 2019 Act, for the first time, gives product liability its own dedicated statutory chapter with defined standards, instead of requiring reliance purely on common-law negligence.

4. Which of the following transactions did the 2019 Act expressly bring within the definition of 'consumer', closing a gap under the 1986 Act?

   • Only cash transactions at physical shops
   • Online, electronic, teleshopping, direct-selling, and multi-level-marketing transactions (correct answer)
   • Only transactions above one crore rupees
   • Only transactions involving government departments

   Explanation. The 2019 Act expressly widened 'consumer' to include offline and online purchases, electronic means, teleshopping, direct selling, and multi-level marketing.

5. How is the pecuniary jurisdiction of the District, State, and National Commissions determined under the 2019 Act?

   • Based on the value of goods/services paid as consideration plus the compensation claimed
   • Based only on the value of the goods or services paid as consideration (correct answer)
   • Based solely on the number of consumers affected
   • Based on the seller's total annual turnover

   Explanation. Unlike the 1986 Act (which counted consideration plus compensation claimed), the 2019 Act bases pecuniary jurisdiction only on the value of goods/services paid as consideration.

6. Under the 2019 Act, from where can a consumer file a complaint?

   • Only from the place where the seller is located
   • Only from the national capital
   • From the place where the consumer resides or works, not only the seller's location (correct answer)
   • Only through a registered advocate's office

   Explanation. The 2019 Act eases the practical burden on consumers by allowing complaints to be filed from the consumer's own place of residence or work.

7. What genuinely new alternative dispute resolution mechanism does the 2019 Act formally introduce?

   • Arbitration by private arbitrators only
   • A statutory mediation mechanism with consumer mediation cells attached to each Commission (correct answer)
   • Trial by jury
   • Compulsory out-of-court settlement without any Commission involvement

   Explanation. For the first time, the 2019 Act creates a formal, statutorily recognised mediation mechanism with mediation cells attached to each Commission.

8. Which of the following is a genuinely new feature of liability for misleading advertisements under the 2019 Act?

   • Liability applies only to the advertising agency, never the manufacturer
   • Liability can, in appropriate cases, extend to the endorser of the product, not only its manufacturer (correct answer)
   • There is no liability for misleading advertisements at all
   • Liability applies only to advertisements broadcast on television

   Explanation. The 2019 Act introduced potential liability for endorsers of a product in connection with misleading advertisements — a feature not present in the 1986 Act.

9. A consumer buys a gadget online after seeing a celebrity's social-media endorsement that falsely claims features the product lacks. Under the 2019 Act, which body can act against this practice even without any individual consumer filing a complaint?

   • Only a civil court after a full trial
   • The Central Consumer Protection Authority (CCPA), acting suo motu (correct answer)
   • The police, under criminal law only
   • No body can act without an individual complaint

   Explanation. The CCPA can investigate and act suo motu against unfair trade practices and misleading advertisements, without waiting for an individual consumer complaint.

10. Which statement about the relationship between the 1986 Act and the 2019 Act is correct?

    • The 2019 Act merely amended a few sections of the 1986 Act, which remains partly in force
    • The 2019 Act repealed the 1986 Act entirely and replaced it with a new statutory scheme (correct answer)
    • The 1986 Act still governs all consumer disputes, and the 2019 Act only applies to e-commerce
    • The two Acts operate in parallel, and a consumer may choose either

    Explanation. The Consumer Protection Act, 2019 repealed the Consumer Protection Act, 1986 in its entirety and replaced it with a new, restructured statutory scheme.