Journal Press India^®

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This paper is conceptualized within the framework of liability system as an exchange system based on the ‘Law and Economics’ approach. It empirically measures, in percentage terms, the nature, types, causes, form and extent of harm faced by the consumer during transacting goods and services based on Consumer Protection Act, 1986 and the extent of redressal available to the consumer under Consumer Protection Act 1986 in order to evaluate the Consumer Protection Act, 2019 Act on efficiency parameters. The random sampling method has been applied to identify a total of 200 cases from the states of Kerala and Rajasthan over a three-year time line. The data analysis of the two states highlights significant reduction of transaction cost as well as efficient internalization of the harm in the Consumer Protection Act 2019 Act as compared to its 1986 counterpart; yet there are instances where 2019 can be made more efficient.

Keywords

Liability system as an exchange system; Efficient internalization of harm; Transaction cost; Forward-backward signals

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