Wa0042.
Wa0042.
Wa0042.
LEGAL STUDIES
KOCHI, KERALA
Nandan M
Roll no:2067
Legal Studies)
ABSTRACT
This project looks into one of the most critical topics in the modern economic and
legal age: Consumer Protection. The project highlights the importance of The Consumer
Protection Act 1986 and 2019 in our lives. It provides awareness about the rights every
citizen has as a consumer. Also, in this modern era where the economy is rapidly changing
in various ways, and the emergence of electronic commerce, artificial intelligence, and
electronic business also enormously affected the market, consumer rights undergo several
changes discussed in this project. The historical aspect relating to consumer protection laws,
the rights guaranteed, the challenges they face, and several other issues are also dealt with in
this paper.
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CONTENTS
1. INTRODUCTION………………………………………………………………………4
3. Objectives, Scope of Application, and Guidelines for Consumer Protection under the
United Nations….............................................................................……………………5-7
11
15
8. Important Cases…………………………………………………………………..……….15-17
9. CONCLUSION...............................................................................…………………...18
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INTRODUCTION
“Jago grahak jago” or “customer is the king” are some of the slogans that we have
often come across in our daily lives and must have caught our attention in some point of
time. These slogans are aimed at creating consumer awareness and advocating importance
of consumer. The Consumer Protection Act, whether it is India or the whole world, is one
of the most important laws in the world, both in a social and economic view. The Consumer
Protection Act 1986 was implemented in India to safeguard the rights and grievances the
citizens had as a consumer and provide appropriate measures and compensations for their
rights violated about goods and services they had consumed or were to consume. This Act
prevents the producers from finding loopholes in trade laws and conducting their businesses
illegally related to their respective goods or services. It ensures aid to producers and
consumers when a situation arises to avoid a long and tiring case and finish the position
The Consumer Protection Act is an Act that protects the interests of the consumer
when relating to the product they consumed having undergone a particular situation that
needs settlement through authorities, which ensures that the consumers are compensated
effectively by the party they need compensation from. It is spread throughout India except
This Act is considered one of the most significant pieces of the Indian Legislature as it
revolutionized the rights and protection of the consumers of India. It defines who a consumer
is and by what provisions, deficiencies, or unfair happenings the consumer can claim
compensation from the producer. It also talks about the ways and methods through which a
consumer can file a complaint to the concerned authorities, which protects and safeguards
the consumer's rights. Even though this Act stood through time effectively, it did not predict
the emergence of commerce in the modern era, that is, the electronic way of business.
Therefore, for the upbringing of provisions and rules relating to modern economic methods
like e-commerce, online shopping, etc., the government of India gave rise to a bill called the
Consumer Protection Bill in 2018, which eventually got passed and became the Consumer
Protection Act,2019. The 2019 Act widens the scope of consumer protection, mainly through
e-commerce, unfair contracts, and product liability. It also explored aspects like Misleading
The United Nations has provided several objectives and guidelines for the
Consumer Protection rules and where these can be applicable. Countries that come under
the UN generally follow these to keep a uniform rule system for the betterment of the
1
Taj Reefa H, COMPARATIVE ANALYSIS OF CONSUMER PROTECTION
ACT, 1986 WITH THE 2019 ACT, Vol. 2, Indian Journal of Integrated Research in Law, 1, 2022
6
people. These rules given by the United Nations consist of a vast network, and some of the
OBJECTIVES:
(a) Assisting the citizens of the country to obtain adequate protection relating
(b) Identifying the needs and desires of the consumer and producing and distributing
(e) For upbringing of market conditions that provide goods and services of more
SCOPE OF APPLICATION:
The scope on which the Consumer Protection Act is applicable widens to a large
extent. This Act defines who qualifies as a consumer (it can be an individual, household, or
business that purchases goods for personal, family, or household purposes), the goods,
services, and transactions covered, Businesses that are regulated, Rights are given to
Consumers, Practices that has been prohibited, Mechanisms that can be used to enforce the
rights of the consumers, Penalties, and Remedies for violation of the rights of consumers,
2
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT,
https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf, 15 Oct 2023
7
Jurisdiction of the Act, etc. It also established the authorities that must enforce consumer
GUIDELINES:
(a) The National Policies for Consumer Protection like fair business practices,
businesses and accurate information regarding the goods and services offered by the
transactions, secure payment methods and proper business and product education.
(b) Physical safety guidelines, which are to adopt appropriate measures, including legal
standards, proper proof of safety records that show that the product is safe for use, and
every kind of precaution to be taken if by any chance there are defects found in the
product.
(c) To promote and protect the economic interests of consumers, provide distribution
facilities for essential consumer goods and services, dispute resolution and redress,
consumption, establish measures relating to certain specific areas that need special
3
Supra note 2
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RIGHTS:
1) Right to Safety- A consumer has every right to get complete information about the
quality and guarantee of the goods they insist on buying. Producers generally use
several certifications like ISI and AGMARK to prove that their product is of accepted
quality.
2) Right to Choose- Choose-The Consumer has every right to choose the goods/service
they want from a variety they have found satisfiable with the aspects of quality, quantity,
price, etc.
3) The right to be informed is the right of a consumer to attain knowledge about the
complete details of the product that has to be given by the producer, which decides
4)Right to Consumer Education- The Consumer also has the right to know about his
5) The right to be heard is given to the consumer to file a complaint and listen to
REGULATIONS:
3) Responsibility to speak out: Consumers should speak out if they have faced
any problems due to the product and give feedback about their taste preferences.
4
Byjus’s, What is Consumer Protection Act? meaning, definition, rights and responsibilities (byjus.com), 15 Oct
2023
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While filing a complaint, several things must be considered to get relief for
violating consumer protection rights. The complaint should talk briefly about the details of
the problem and whether the consumer wants a replacement or exchange of the product or
compensation for the mental or physical torture they have gone through. The person filing
the complaint can send it to the consumer forum via email, post, fax, or hand-delivered in
any language. The consumer should also keep the receipts, bills, or any other materials that
act as proof of purchase, and saving every document that has been sent or received is also
advised. There's also a time limit when the consumer can file a complaint within two years
of purchasing the product or service. If all these guidelines are followed when filing a
There are three dispute resolution forums and on the basis of the below mentioned
district forum. Complaints can be filed in district forum within whose jurisdiction any of
the parties reside or in case cause of action accrued in within the respective jurisdiction.
The district forum entertains only those matters where total value of the goods or services
commission. The forum entertains only complaints where the value of the goods and
services or compensation in total exceeds 20 lakhs rupees but does not exceed 1 crore
rupees and entertain appeals too from respective district consumer dispute redressal forum.
entertains complaints and appeals from orders of state consumer dispute redressal forums.
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Appeals from the orders of national commission shall lie with the Supreme Court of India. 5
Technology is the most growing aspect of the modern era. In this ever increasing
stage of technology, by analyzing our current lives, we can assure you with no doubt that its
impact on every part of our lives, including business activities, is enormous. Therefore, the
effect on consumers has also become very large, and it has even changed the tastes and
ecommerce field. The emergence and improvement of e-commerce and its subsidiaries, like
online transactions, massively helped the world's economy. It also gave rise to various
issues, and because of this, a new framework on how businesses should be conducted
5
Law Senate, https://www.lawsenate.com/publications/articles/consumer-protection-in-india.pdf, 14 Oct 2023
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online has been developed. The framework is designed in such a way that it protects the
When taking the influence of e-commerce, it's the advantages that have
Even though the benefits are extended to a wide range, the issues that come with
it must also be considered. The many problems that come with the use of e-commerce
1) The Consumer will be exposed to unfair marketing ways through improper disclosure
of information, fraudulent enforceability of contracts, unfair merchandise and
2) Unsafe product.
4) Identity of seller.
6) Protection from the ill effects of highly competitive markets may include selling
the same product at different prices.
7) Goods delivered should correspond to the description, quality, and quantity the
consumer has paid for.
12) Other concerns include computer fraud, hacking, viruses, interception and alteration
of financial data, and misuse of personal information. 6
6
Rajiv Khare and Gargi Rajvanshi, E-COMMERCE AND CONSUMER PROTECTION: A CRITICAL
ANALYSIS OF LEGAL REGULATIONS, https://clap.nls.ac.in/wp-content/uploads/2021/01/E-COMMERCE-
AND-CONSUMER-PROTECTION-A-CRITICAL-ANALYSIS-OF-LEGAL-REGULATIONS.pdf, 2021
14
In the above discussion about the benefits and issues faced by Consumers during
several advantages when conducting their commercial transactions, it also has drawbacks.
Consequently, a clear and sufficient set of laws and regulations is necessary to address the
Transactions that won't just contest the necessity of consumer protection increases the
confidence of Consumers. Legal and regulatory frameworks that are sufficient and effective
have to be developed with the title of Consumer Protection laws for e-commerce for the
Several researchers discussed the need to find the pros and cons of every system for welfare
in society; as Furmstone said, "the aim of contract law should be the protection of the
contractual relationship and the balancing of the involved interests which is attainable
through the articulation of legal standards ” Applying the same balancing theory in solving
the issues of consumer protection in e-commerce transactions, it is argued that the role of
consumer protection law should be "to regulate market practices and social practices for
view of ensuring adequate consumer protection along with the growth of e-commerce
market." The laws and other regulatory mechanisms should protect consumer welfare and
support consumer's free will in e-commerce without fear of losing fundamental consumer
rights in those transactions." .Sahoo and Chatterjee believed that in online business
transactions (e-commerce), unfair and deceptive sellers' market strategies and practices may
not only infringe basic consumer protection standards but likely diminish the e-commerce
market's growth. In light of this, it may further be argued that the legal arrangement of the
electronic marketplace under the perspective of consumer protection and the growth of e-
commerce will support the reconsideration of consumer protection rules and mandates to be
IMPORTANT CASES
1. Manjeet Singh Vs. National Insurance Company Ltd. & Anr: In this case, the appellant
had purchased a second - hand truck under a Hire Purchase agreement. The vehicle was
insured by the respondent insurance company. One day when he was driving the truck, a
passenger asked him to stop the truck and give him a lift. When he stopped the truck, the
passenger brutally assaulted the driver and fled with the vehicle. An FIR was lodged and the
respondent finance company was intimated about the theft. However, the insurance company
rejected the claim on the ground of breach of terms of the policy. The complainant
approached District Consumer Disputes Forum, State Commission and National Commission
to compensate him for the loss. All of them had rejected the case. So, finally he approached
Judgment: The Supreme Court held that the appellant was not at all in fault. It can be
considered as a breach of the policy, but not a fundamental breach to bring the insurance
7
Ragvanshi, supra note 6.
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policy to an end and terminate the insurance policy. The two - judge bench of Supreme Court
directed the respondent insurance company to pay 75% of the insured amount along with 9%
interest p.a. from the date of filing the claim. The court also directed the insurance company
2. National Insurance Company Ltd. Vs. Hindustan Safety Glass Works Ltd. & Anr.
In this case, the insurance company had refused to compensate the respondent because of
damage caused due to heavy rain during a mentioned period. On the grounds of one of the
policy's clauses, which specified that National Insurance would not be responsible for any loss
or damage for 12 months following the occurrence of the loss or damage to the insured, the
Insurance Company admittedly refused relief to the insured. The insured reported the incident
to the National Commission in line with the requirements of the Consumer Protection Act of
1986.
Judgment: The National Commission held that the claim made by the insured is actionable. It
also observed that the goods were insured at the time of incident and he asked for the claim
next day. It rejected all the contentions urged by National Insurance and ordered the insurance
company to award an amount of Rs. 21, 05,803.89 with interest at 9% per annum.
3. Karnataka Power Transmission Corporation (KPTC) Vs. Ashok Iron Works Private
Limited
Ashok Iron Works, a private company which manufactures iron had applied for obtaining
electricity from the state’s power generation company - the Karnataka Power Transmission
Corporation (hereinafter KTPC) for commencing its iron production. Inspite of paying
charges and obtaining confirmation for the supply of 1500 KVA energy in February 1991, the
actual supply did not begin until ten months later, in November 1991. This delay incurred a
huge loss for Ashok Iron Works. This company had filed a complaint to the Belgaum
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Consumer Dispute Forum and later Karnataka High Court. The legal argument by KTPC was
that the complaint was not maintainable as the consumer Protection Act 1986 excludes
commercial supply of goods. It also made an argument that the company in engaged in
manufacturing iron and intended to use it for commercial consumption which is excluded
under the Act. Additionally, he said that the complaint is not a "person" as defined by Section
Judgment: In this case, Supreme Court gave his rulings. The Supreme Court mentioned the
General Clause Act that includes a private company within the purview of the definition of a
“Person.”It was also determined that the KPTC's provision of power to a customer would be
considered a "service" for the purposes of Section 2(1)(o). Additionally, under Section (2)(1)
(g), a consumer may claim a failure in service if the electrical energy consumer is not
Therefore, the clause stating “supply” of goods for commercial purpose would not be applied.
The Supreme Court sent this case back to District Forum for retrial on these grounds.8
CONCLUSION
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Legit Quest, Top 7 Consumer Protection Act Cases - Legitquest, 14 Oct 2023
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Any reader who wants to gain basic knowledge of what Consumer Protection is
and its different aspects can quickly gain understanding from the above discussed essay.
relevant in the modern world. It talks about the emergence of different rules and regulations
Most consumers don't know their rights and importance while they are the critical
factor the world economy revolves around. In this modern period, Consumer protection is
one of the most important aspects of world trade, and even developing a legal career in the
branch of Consumer Protection Law for us as law students is a career of great scope.
The Law for Consumer Protection, a key aspect in this era, still lacks many
essentials. Even though the government has made several laws ensuring the protection of
consumers, some are far beyond reach. In this modern era where unethical hacking and data
and information leak is vast, the government has yet to make efficient laws and adopt
preventive measures for these crimes. Even though there are many existing laws against
these crimes, I still make this statement because e-commerce transactions cheat a large
community of consumers. But there is a limit on which we can blame the inefficiency of the
government for this because even if the government conducted maximum strictness in these
issues, people who commit crimes would still find ways to do it as the internet has many
loopholes. A day will arrive when every consumer can use the market, either electronically
or in a standard manner, and they do not have to fear the current threats they face.
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