UNIT-1

Aims, Objectives, and Reasons of the Consumer Protection Act 2019

The Consumer Protection Act, 2019 was enacted to safeguard the interests of
consumers and ensure their rights are protected from unfair trade practices. It
replaces the Consumer Protection Act of 1986, which was outdated and did not
address modern challenges in consumer protection. The key aims, objectives, and
reasons behind the enactment of this law are as follows:

Aims:

1. Protect Consumer Rights: To provide a comprehensive legal framework

for protecting the rights and interests of consumers.
2. Efficient Redressal of Complaints: To set up mechanisms for the speedy
resolution of consumer grievances.
3. Promote Consumer Awareness: To promote consumer awareness
regarding their rights and responsibilities in the marketplace.
4. Prevent Unfair Trade Practices: To curb deceptive advertising,
substandard products, and unfair trade practices.
5. Promote Fair Competition: To ensure a level playing field in the
marketplace by regulating businesses and sellers.

Objectives:

1. Establishment of Consumer Dispute Redressal Commissions: The Act

creates a three-tier system (District, State, and National) for the resolution of
consumer disputes.
2. Protection Against Unfair Trade Practices: It prohibits false advertising,
fraudulent goods, and other unfair practices by businesses.
3. Introduction of E-Commerce Regulations: The Act includes provisions to
protect consumers involved in e-commerce transactions.
4. Strengthening Consumer Rights: The Act provides the consumer with the
right to safety, information, choice, redress, and the right to be heard.

Reasons:

 Outdated Framework: The previous law (Consumer Protection Act, 1986)

was inadequate to address issues arising from technological advances,
globalization, and changing business practices.
  Need for Special Focus on E-commerce: With the rise of online shopping
and digital transactions, there was a need for a regulatory framework
addressing challenges in e-commerce.
 Greater Consumer Empowerment: The Act empowers consumers to take
legal action against companies and businesses, making it easier to seek
compensation for harm or losses.

Definition and Scope of the Consumer Protection Act 2019

The Consumer Protection Act, 2019 is a law designed to protect the interests of
consumers in India, ensuring that they receive fair treatment in the marketplace and
are protected from exploitation by manufacturers, service providers, or sellers.

Definition:

 A Consumer under this Act is defined as any person who buys any goods or
services for personal use, not for resale or commercial purposes.
 A Service Provider refers to any individual or company offering services
for a fee or remuneration.

Scope:

The scope of the Act covers:

1. Goods and Services: The Act regulates both tangible goods and services,
providing a legal framework for consumer protection in both these sectors.
2. E-commerce: The Act extends consumer protection to e-commerce
transactions, ensuring that consumers' online rights are safeguarded.
3. Unfair Trade Practices: It regulates misleading advertisements,
substandard goods, and false claims in both traditional and online markets.
4. Consumer Redress Mechanism: The Act provides a detailed procedure for
resolving consumer complaints through District, State, and National
Consumer Disputes Redressal Commissions.

Protection of Consumers in Other Laws

Apart from the Consumer Protection Act 2019, several other laws also offer
protection to consumers. Key examples include:

1. Law of Tort:
The Law of Tort is based on civil wrongs that cause harm or injury to individuals
or their property. Consumer protection through tort law includes:

 Negligence: If a product or service provider is negligent in the production or

delivery of goods/services and it leads to harm to the consumer, the injured
consumer can file a tort suit for damages.
 Product Liability: Manufacturers or service providers can be held liable for
harm caused by defective or hazardous products. Under tort law, a consumer
can claim damages from the manufacturer or seller for injuries caused by
unsafe products.

2. Sales of Goods Act, 1930:

The Sales of Goods Act, 1930 deals specifically with contracts of sale of goods
and provides protection to consumers in the following ways:

 Implied Conditions and Warranties: Under the Act, there are implied
terms that ensure the goods sold are of satisfactory quality, fit for purpose,
and correspond with their description. If these conditions are breached, the
consumer can claim compensation.
 Right to Reject: The consumer has the right to reject goods that are
defective or do not conform to the contract. If goods are found to be unfit for
their purpose, the buyer can demand a remedy such as a refund, replacement,
or repair.

3. The Sale of Goods and Consumer Rights:

While the Consumer Protection Act focuses more on general protection, the Sales
of Goods Act is particularly concerned with the quality and description of goods
sold. It ensures that a buyer has legal recourse in case of goods being defective,
faulty, or unsatisfactory.

Conclusion

In summary, the Consumer Protection Act, 2019 is a progressive and

comprehensive law aimed at safeguarding consumer rights in the modern
marketplace. It provides mechanisms for the redressal of grievances, strengthens
consumer protection in the era of e-commerce, and promotes awareness of
consumer rights. Additionally, other legal frameworks such as the Law of Tort
and the Sales of Goods Act supplement consumer protection by providing avenues
for compensation and recourse in case of harm caused by faulty goods or services.
UNIT-2
Meaning and Scope of Deficiency in Service in the Consumer Protection Act
2019

The term deficiency in service refers to a failure by a service provider to deliver

the service as per the agreed terms or established standards. This can include
situations where the service is inadequate, delayed, or does not meet the
expectations set by the provider or by applicable laws or regulations.

Meaning of Deficiency in Service:

Under Section 2(11) of the Consumer Protection Act, 2019, deficiency in

service is defined as the "lack of, or failure to provide, service as per the contract
or agreement" or when the service is of such quality, nature, or manner that it falls
short of the expected standards. Deficiency can arise from:

1. Imperfect or Incomplete Service: If a service is not provided as promised,

partially delivered, or inadequately performed.
2. Delay: If the service is provided late without reasonable justification.
3. Lack of Skill or Knowledge: When the service provider does not have the
required expertise, leading to unsatisfactory service delivery.
4. Non-fulfillment of Legal Obligations: If the service provider violates
statutory duties or doesn't follow legal requirements.
5. Non-compliance with Terms of Contract: When the service is not delivered
according to the contract, leading to a breach.

Scope of Deficiency in Service:

The scope of deficiency in service covers all aspects of services provided to

consumers, including but not limited to:

 Healthcare services (e.g., medical negligence).

 Educational services (e.g., failure to deliver promised educational facilities).
 Banking and financial services (e.g., poor customer support or
unauthorized charges).
  Telecommunication services (e.g., poor network quality, billing issues).
 Professional services (e.g., legal or consultancy services where advice or
services fall below expected standards).
 E-commerce transactions (e.g., delayed delivery of goods or failure to
provide the promised service).

When a consumer files a complaint under the Consumer Protection Act regarding
deficiency in service, the complaint is examined by the Consumer Dispute
Redressal Commissions at the district, state, or national level to determine if the
service provider has failed to deliver as per the expectations and agreed terms.

Consumerism:

Consumerism refers to a social and economic movement that aims to protect and
inform consumers about their rights, ensuring that they are not exploited by
businesses or corporations. It advocates for better protection of consumer interests,
fair trade practices, quality products and services, and informed purchasing
decisions. The movement promotes:

1. Consumer Education: Educating consumers about their rights,

responsibilities, and legal protections.
2. Raising Awareness: Ensuring that consumers are aware of deceptive
business practices, product quality standards, and consumer rights.
3. Advocacy for Laws and Policies: Consumerism also pushes for stronger
legal frameworks and consumer protection laws, such as the Consumer
Protection Act 2019, to hold businesses accountable for malpractices.

Consumer:

A consumer under the Consumer Protection Act 2019 is defined as any person
who:

 Buys any goods or services for personal use, and not for resale or
commercial purposes.
 The person may also be someone who uses a good or service even if they
did not directly purchase it, but the goods or services are intended for their
benefit.
 Consumers are entitled to seek remedies under the Act if they face any
deficiencies in the goods or services purchased.
The Act defines consumers broadly, ensuring that everyone who is involved in a
transaction for personal use or benefit is covered by the protections it offers.

Consumer Protection Councils:

The Consumer Protection Councils are bodies set up under the Consumer
Protection Act 2019 to promote and protect consumer interests at various levels—
national, state, and district levels. These councils serve as advisory and
consultative bodies to recommend measures for the promotion and protection of
consumer rights.

National Consumer Protection Council:

The National Consumer Protection Council is established at the central level and
advises the government on matters related to consumer welfare, policies, and
legislation.

Composition:

 The Union Minister of Consumer Affairs is the chairperson of the Council.

 Other members may include:
o Members from the central government responsible for consumer
affairs.
o Representatives of consumer organizations.
o Representatives from trade and industry.
o Experts in various fields related to consumer issues (e.g., economists,
legal experts, consumer rights activists).

Powers and Functions:

 Advise the Government: The council advises the central government on

policies and legislation that affect consumer rights.
 Promote Consumer Welfare: The council works to raise awareness and
promote the rights and welfare of consumers.
 Monitor Market Trends: It may analyze market practices to ensure that
businesses are complying with fair trade practices and ethical guidelines.
 Suggest Improvements: The council suggests changes to laws, regulations,
and policies that would enhance consumer protection.

State Consumer Protection Council:

Each state in India also has its own State Consumer Protection Council, which
works at the state level.

Composition:

 The Minister in charge of consumer affairs in the state serves as the

chairperson.
 Other members:
o Representatives from state government departments.
o Experts in consumer rights and welfare.
o Representatives from trade and industry, and other stakeholders.

Powers and Functions:

 Advise the State Government: The state councils advise the state
government on issues related to consumer protection and awareness.
 Promote Consumer Rights: They aim to promote the rights of consumers at
the state level by encouraging fair business practices.
 Raise Awareness: Conducting programs and campaigns to raise awareness
about consumer rights and government policies.

District Consumer Protection Council:

Each district in India has a District Consumer Protection Council that works at
the grassroots level.

Composition:

 The District Collector or District Magistrate is the chairperson.

 Other members may include:
o Local government representatives.
o Consumer activists and representatives from consumer
organizations.
o Experts from various fields related to consumer issues.

Powers and Functions:

 Advise the District Administration: The district councils advise on

consumer protection matters at the district level.
  Coordinate with Consumer Redress Forums: They work closely with
Consumer Dispute Redressal Forums at the district level to address
consumer grievances.
 Raise Awareness Locally: They aim to promote consumer awareness and
handle local consumer protection issues.

Conclusion

The Consumer Protection Act 2019 offers comprehensive protections to

consumers, including provisions for addressing deficiency in service and
consumer grievances. It is supported by consumer councils at national, state, and
district levels that have important advisory and consultative roles. These councils
contribute to improving the consumer protection landscape by advising
governments, promoting consumer rights, and ensuring fair market practices. With
these mechanisms in place, the Act aims to empower consumers, increase
awareness, and ensure effective redressal of complaints.

UNIT-3
Consumer Dispute Redressal Agencies under the Consumer Protection Act,
2019

The Consumer Protection Act, 2019 establishes a three-tier system of consumer

dispute redressal agencies designed to ensure efficient, timely, and accessible
resolution of consumer complaints. These agencies include the District Forum,
State Commission, and National Commission. They play a crucial role in
addressing grievances related to deficiencies in goods or services, unfair trade
practices, and exploitation of consumer rights.

1. District Consumer Disputes Redressal Forum (District Forum)

Composition:

 The District Forum consists of a President and two other members (one
of whom should be a woman).
 The President must be a District Judge or a person qualified to be a District
Judge.
  The other two members should have experience or knowledge in matters
such as consumer affairs, law, economics, or public administration.

Jurisdiction:

 The District Forum has jurisdiction over consumer disputes where the
value of goods or services, along with compensation, does not exceed ₹1
crore (₹1,00,00,000).
 The forum is competent to entertain complaints relating to:
o Deficiency in services or goods.
o Unfair trade practices.
o Fraudulent or deceptive advertising.
o Product defects.
o Other consumer rights violations.

Powers:

 Redress Consumer Grievances: The District Forum has the power to order
remedies such as refunds, replacements, or compensation for harm caused to
consumers.
 Summon Witnesses: It can summon witnesses, documents, or evidence
relevant to the case.
 Impose Penalties: It has the power to impose fines on the service provider
for failure to comply with its orders.

Functions:

 Adjudication of Complaints: The primary function of the District Forum is

to adjudicate consumer complaints and disputes.
 Implementation of Orders: It is responsible for enforcing the decisions and
orders given in consumer disputes.
 Settlement of Disputes: In certain cases, the forum may mediate between
the consumer and the service provider to reach a settlement before formal
adjudication.

2. State Consumer Disputes Redressal Commission (State Commission)

Composition:

 The State Commission consists of a President and two other members

(one of whom should be a woman).
  The President must be a sitting or retired judge of a High Court or a person
qualified to be a High Court judge.
 The other two members should have experience in consumer affairs, law,
economics, or public administration.

Jurisdiction:

 The State Commission has jurisdiction over consumer disputes where the
value of goods or services, along with compensation, exceeds ₹1 crore but
does not exceed ₹10 crore (₹10,00,00,000).
 It also handles appeals against the decisions of the District Forum.

Powers:

 Redress Consumer Grievances: Similar to the District Forum, the State

Commission can order compensation, refunds, and the replacement of
defective goods or services.
 Summon Witnesses: It can summon witnesses and examine evidence.
 Impose Fines: It can impose penalties on non-compliant businesses.
 Review and Appellate Authority: The State Commission has the power to
review and hear appeals from the District Forum.

Functions:

 Adjudication: It adjudicates complaints that fall within its jurisdiction and

those referred from the District Forum.
 Appellate Function: It serves as the appellate authority for decisions made
by the District Forum.
 Policy Recommendations: It may suggest improvements in consumer
protection policies at the state level.

3. National Consumer Disputes Redressal Commission (National Commission)

Composition:

 The National Commission is headed by a President who must be a sitting

or retired judge of the Supreme Court of India.
 The National Commission also consists of four other members who
possess experience in consumer affairs, economics, law, or public
administration.
Jurisdiction:

 The National Commission has jurisdiction over disputes where the value of
goods or services, along with compensation, exceeds ₹10 crore
(₹10,00,00,000).
 It serves as the final appellate authority for decisions made by the State
Commissions.

Powers:

 Redress Consumer Grievances: The National Commission has the power

to order relief such as compensation, refunds, or replacement of goods or
services.
 Summon Witnesses and Examine Evidence: It can summon parties and
evidence necessary for adjudication.
 Impose Penalties: It can impose penalties on erring service providers.
 Final Appellate Authority: The National Commission serves as the highest
appellate authority in the consumer dispute resolution framework.

Functions:

 Adjudication of High-Value Disputes: It adjudicates consumer disputes of

high value (above ₹10 crore).
 Final Appeal: It hears appeals from decisions made by State Commissions.
 Guidelines and Recommendations: It may issue guidelines on the
implementation of the Consumer Protection Act.

Appeals, Finality of Orders, and Limitations

Appeals:

 Appeal to State Commission: A consumer or service provider can appeal to

the State Commission against the decision of the District Forum. The
appeal must be filed within 30 days from the date of the order.
 Appeal to National Commission: An appeal against the decision of the
State Commission can be filed with the National Commission within 30
days.
 Appeal to Supreme Court: Any party dissatisfied with the order of the
National Commission can approach the Supreme Court within a specified
time frame (typically 30 days).
Finality of Orders:

 The orders of the National Commission are final and binding, subject to an
appeal to the Supreme Court.
 Orders from the State Commission and District Forum are final unless
appealed within the prescribed time limits.

Limitation Period:

 The limitation period for filing a complaint in the District Forum is two
years from the date on which the cause of action arises.
 In certain cases, the limitation period can be extended by a further period of
5 years, if the complainant proves sufficient cause for the delay in filing the
complaint.

Enforcement of Orders:

 If the service provider fails to comply with the order of the District Forum,
State Commission, or National Commission, the consumer can approach
the National Commission for enforcement.
 The District Forum, State Commission, and National Commission have
the power to issue execution orders to ensure compliance with their
judgments.
 If the business or service provider continues to defy the order, the Forum or
Commission can impose fines or initiate legal actions to enforce the
judgment.

Powers to Make Rules:

Under the Consumer Protection Act, 2019, each of the consumer dispute
redressal agencies (District Forum, State Commission, and National Commission)
is empowered to make rules to govern their functioning. These include:

1. Procedure for Filing Complaints: The agencies can set rules to determine
how complaints are to be filed and processed.
2. Process of Adjudication: Rules may be formulated to define how
complaints will be heard, examined, and resolved.
3. Penalties and Enforcement: Rules regarding penalties for non-compliance
with orders and the procedures for enforcement can also be framed.
4. Regulation of Appeals: The procedure for filing and hearing appeals is
governed by rules laid down by each forum or commission.
Conclusion

The Consumer Disputes Redressal Agencies under the Consumer Protection

Act, 2019 (District Forum, State Commission, and National Commission) are
crucial institutions designed to protect consumer rights and ensure justice in cases
of deficiency in services, unfair trade practices, and product defects. These
agencies have distinct jurisdictions, powers, and functions, with a clear hierarchy
for appeal and final decision-making. Their ability to enforce orders and make
rules ensures the smooth functioning of the consumer grievance redressal system,
providing consumers with a fair and accessible path to seek justice.

UNIT-4
**Aims, Objectives, and Reasons of the Competition Act, 2002

The Competition Act, 2002 was enacted by the Government of India to promote
and sustain competition in the market, protect the interests of consumers, and
ensure the freedom of trade in the country. The Act came into force to replace the
Monopolies and Restrictive Trade Practices Act, 1969, which had become
outdated and ineffective in regulating the modern economy. The Competition Act
aims to foster competition, prevent anti-competitive practices, and regulate
combinations in the market.

Aims:

1. Promotion of Competition: The primary aim of the Act is to promote

competition in the Indian markets by preventing anti-competitive practices.
2. Consumer Welfare: To protect consumer interests by ensuring that
consumers benefit from increased competition, which leads to lower prices,
better quality, and greater variety of goods and services.
3. Prevention of Anti-Competitive Practices: To prevent businesses from
engaging in practices that restrict free and fair competition, such as price-
fixing, market manipulation, and abuse of dominant positions.
4. Regulation of Combinations: To regulate combinations (mergers,
acquisitions, and takeovers) that might have an adverse effect on
competition in the market.
Objectives:

1. Prohibition of Anti-Competitive Agreements: The Act aims to prohibit

agreements that adversely affect competition, such as cartels, price-fixing,
and collusion.
2. Prevention of Abuse of Dominant Position: To ensure that dominant
players in the market do not misuse their position to stifle competition.
3. Regulation of Mergers and Acquisitions: To review and regulate
combinations (mergers, acquisitions, or joint ventures) that may lead to a
substantial reduction in competition in the market.
4. Promotion of Market Efficiency: The Act encourages businesses to
compete on the basis of merit rather than unfair trade practices.
5. Ensuring Fairness in Business Practices: To prevent any form of unfair
advantage, manipulation, or exploitation in the market that could harm
consumers or smaller businesses.

Reasons for Enacting the Act:

 Globalization and Liberalization: With India’s growing integration into

the global economy, there was a need to ensure that Indian markets could
compete fairly with international players and prevent monopolistic behavior.
 Shift from Regulation to Competition: The previous Monopolies and
Restrictive Trade Practices Act, 1969, was inadequate in addressing
modern economic challenges, and the shift to a competition law framework
was necessary to create a more dynamic and efficient market.
 Consumer Protection: In the absence of effective competition, consumers
can suffer from high prices, poor quality, and limited choice. The
Competition Act aims to protect consumers from such exploitation.

Definitions Under the Competition Act, 2002

The Competition Act, 2002 provides several key definitions that are critical to
understanding the regulation of competition in India. Some of the important
definitions include:

1. "Competition": Refers to a market structure where businesses compete

freely, offering goods and services that are priced and offered competitively,
leading to greater consumer choice and satisfaction.
2. "Anti-Competitive Agreements": These are agreements between
businesses that have the effect of preventing, restricting, or distorting
 competition. This includes practices such as price-fixing, market sharing, or
collusive practices.
3. "Dominant Position": A dominant position refers to the ability of a firm to
operate in a market independently of competitive forces or to affect
competition in its favor in the relevant market.
4. "Combinations": Combinations refer to mergers, acquisitions, or joint
ventures where one enterprise takes control of or merges with another
enterprise, leading to changes in market structure that might affect
competition.

Anti-Competitive Agreements (Section 3)

Under the Competition Act, 2002, anti-competitive agreements are prohibited as

they harm competition and consumer welfare. These agreements typically involve
concerted actions or agreements between enterprises that negatively affect market
dynamics. There are two main categories of such agreements:

1. Horizontal Agreements:

 These are agreements between enterprises that are at the same level of the
production or distribution chain (e.g., competitors).
 Common examples include:
o Price-Fixing: Agreements where competitors agree to set prices at a
certain level, eliminating price competition.
o Bid-Rigging: Where competitors agree to fix bids in tender processes,
ensuring that one party wins at an inflated price.
o Market Allocation: Agreements that divide markets by geographical
region, customer type, or product, which prevent competition within
the market.

2. Vertical Agreements:

 These agreements occur between firms at different levels of the supply chain
(e.g., between manufacturers and retailers).
 Such agreements can include:
o Resale Price Maintenance (RPM): Where a manufacturer dictates
the resale price to a distributor or retailer.
o Exclusive Supply Agreements: When a supplier limits its products to
a single retailer or distributor, restricting the choice available to
consumers.
Abuse of Dominant Position (Section 4)

The Competition Act, 2002 also addresses the issue of abuse of dominant
position. A firm is said to be in a dominant position if it can operate in the market
without effective competition or has the ability to distort competition to its
advantage.

Forms of Abuse of Dominant Position:

1. Predatory Pricing: A dominant company may set very low prices with the
intent to drive competitors out of the market and then raise prices once the
competition is eliminated.
2. Exclusive Agreements: A dominant firm may require its customers or
suppliers to deal exclusively with it, preventing other firms from competing.
3. Refusal to Deal: A dominant firm might refuse to supply goods or services
to competitors, limiting market competition.
4. Price Discrimination: Charging different prices to different consumers or
groups of consumers, without any justified reason, to harm competition.
5. Tying Arrangements: Requiring a customer to buy a second product when
they purchase a first product, thereby forcing consumers into unfair trade
practices.

Regulation:

The Competition Commission of India (CCI) is responsible for investigating and

taking action against firms that abuse their dominant position in the market. The
CCI can impose penalties, issue cease-and-desist orders, or order changes in
business practices to restore competition.

Regulation of Combinations (Mergers and Acquisitions) (Section 5 and 6)

The Competition Act, 2002 also regulates combinations, which refers to mergers,
acquisitions, or joint ventures that may significantly impact competition in the
market. The regulation of combinations ensures that such business practices do not
harm competition or create monopolies that could damage consumer welfare.

Thresholds for Notification:

Under the Act, combinations (mergers, acquisitions) are subject to regulatory

approval if:
  The combined assets or turnover of the enterprises involved exceed a certain
threshold limit (as defined by the CCI).
 This threshold is revised periodically to reflect economic changes and
industry dynamics.

Evaluation by the CCI:

 The CCI evaluates combinations to determine if they would lead to a

substantial reduction in competition in the market.
 If the CCI finds that the combination is likely to cause harm to competition,
it can block the combination or require modifications (e.g., divestiture of
certain assets).

Power to Approve or Block:

 The CCI has the power to approve, disapprove, or approve with

modifications a combination. The aim is to prevent the creation of entities
that could dominate the market or significantly reduce competition.

Key Functions of the Competition Commission of India (CCI):

 Investigation and Inquiry: The CCI can initiate investigations into anti-
competitive agreements, abuse of dominance, and mergers or acquisitions
that may harm competition.
 Adjudication and Remedies: The CCI adjudicates matters of anti-
competitive practices and imposes remedies such as penalties, cease-and-
desist orders, or even ordering changes in business practices to restore
competition.
 Advocacy and Policy: The CCI plays a role in promoting competition law
awareness, suggesting reforms in policy, and educating stakeholders about
competitive practices.

Conclusion

The Competition Act, 2002 is a vital law designed to promote fair competition in
the Indian market by prohibiting anti-competitive agreements, preventing the abuse
of dominant market positions, and regulating mergers and acquisitions that could
harm competition. Through its mechanisms, the Act protects consumer welfare,
fosters a level playing field, and ensures that businesses operate in a way that
promotes innovation, efficiency, and consumer choice. The Competition
Commission of India (CCI) plays a crucial role in enforcing the provisions of the
Act and ensuring a competitive economic environment.

UNIT-5
Establishment and Composition of the Competition Commission of India
(CCI)

The Competition Commission of India (CCI) is a statutory body established

under the Competition Act, 2002. The CCI is responsible for enforcing the
provisions of the Act and ensuring that markets in India remain competitive by
addressing anti-competitive practices such as cartels, abuse of dominant position,
and regulating mergers and acquisitions that may harm competition.

Establishment:

The CCI was constituted in 2003 and became operational in 2009. Its primary role
is to prevent practices that adversely affect competition in the Indian markets. It
works independently to ensure that businesses compete fairly, which in turn
protects consumer interests.

Composition of the CCI:

The Competition Commission of India consists of:

1. One Chairperson.
2. Six other Members.

The Chairperson and members are appointed by the Central Government. The
composition ensures that the Commission includes individuals with expertise in
diverse fields such as law, economics, commerce, public affairs, and business.

Qualifications for Chairperson and Members:

 Chairperson: The Chairperson of the CCI must have a strong background in

law, economics, or business and must have held a position that allows them
to understand competition-related issues. The Chairperson should ideally
 have experience in regulatory affairs, and they must be appointed from
among individuals who have experience or expertise in these domains.
 Members: Members must also possess qualifications and expertise in areas
like economics, law, business, or public policy. They should be individuals
who have demonstrated competence in matters related to competition,
business practices, or economics.

Appointment and Removal of the Chairperson and Members of the

Commission

Appointment:

 The Chairperson and Members of the CCI are appointed by the Central
Government.
 The Central Government is required to ensure that the appointed
individuals have the necessary qualifications, experience, and expertise in
relevant fields.

Term of Appointment:

 The Chairperson and members are appointed for a term of 5 years (or until
they attain the age of 65, whichever is earlier).
 They may be reappointed after the completion of their term, subject to the
approval of the Central Government.

Removal:

 The Chairperson and members can be removed by the Central

Government if they:
1. Become Ineligible: If they become disqualified for holding the
position due to reasons such as mental incapacity or criminal
conviction.
2. Engage in Misconduct: If they engage in misconduct, corruption, or
any activity that affects their ability to perform their duties effectively.
3. Fail to Perform Duties: If they fail to perform their duties due to ill
health, negligence, or a conflict of interest.
 A parliamentary procedure is required for the removal of the Chairperson
or any member, ensuring that the process remains transparent and based on
justifiable reasons.

Duties, Powers, and Functions of the Competition Commission of India (CCI)

The Competition Commission of India (CCI) plays a critical role in promoting
and maintaining competition in Indian markets. Its functions, powers, and duties
include:

1. Duties of the CCI:

The key duties of the CCI are aimed at protecting fair competition in the market,
preventing monopolistic practices, and ensuring that consumers benefit from
competitive market conditions. These duties include:

 Promoting competition by eliminating or reducing anti-competitive

practices in the market.
 Monitoring market behavior to ensure fair play, and taking corrective
actions when anti-competitive conduct is identified.
 Advising the government on matters related to competition policy and
laws, suggesting improvements to laws or regulations that could enhance
competition.
 Ensuring consumer welfare by protecting consumers from practices like
price-fixing, collusion, and abuse of dominant market power.

2. Powers of the CCI:

To carry out its functions effectively, the CCI has several powers, including:

 Investigative Powers: The CCI has the authority to initiate investigations

into anti-competitive practices, either based on its own information or
complaints filed by other stakeholders.
o The CCI can call for documents, records, and evidence from
enterprises under investigation.
o It can issue summons, compel the production of documents, and
examine witnesses.
 Injunction Powers: The CCI can issue temporary orders to stop or prevent
anti-competitive practices while investigations are underway, including
ceasing certain business operations or practices.
 Penalty Powers: The CCI has the power to impose penalties on entities
found guilty of violating the Competition Act, including:
o Fines for anti-competitive agreements or abuse of dominant position.
o Penalties for failure to comply with CCI orders or for concealing
material facts during investigations.
 Order to Modify Combinations: The CCI has the authority to approve or
disapprove mergers, acquisitions, or joint ventures. It can also impose
 conditions on these combinations to prevent any substantial reduction in
competition.

3. Functions of the CCI:

The functions of the CCI are extensive and are aimed at ensuring healthy
competition in the market. Some of the core functions include:

 Investigation and Inquiry:

o The CCI can investigate any conduct, agreements, or combinations
that may affect competition in India. It may act on complaints filed by
parties or on its own initiative.
o The CCI can impose penalties for violations of the law, including
against cartels, abuse of dominance, and unlawful mergers and
acquisitions.
 Adjudication:
o The CCI has the authority to adjudicate complaints and decide cases
regarding anti-competitive practices. This may involve issuing orders
to stop anti-competitive behavior, imposing penalties, and mandating
corrective measures.
 Regulation of Combinations:
o The CCI is empowered to review and regulate mergers, acquisitions,
and joint ventures that may have a significant impact on competition
in the market. It can prohibit such combinations or impose remedies to
ensure they do not harm competition.
 Advocacy and Policy Recommendations:
o The CCI advises the government on matters related to competition
policy and the implementation of laws. It may recommend changes to
legislation or regulations to improve the competitive environment.
o The Commission is also responsible for spreading awareness about
the importance of competition and consumer welfare.

Duties of the Director General (DG)

The Director General (DG) plays an important role in the functioning of the CCI.
The DG is responsible for conducting investigations into anti-competitive practices
under the guidance of the CCI.

Key Duties of the DG:

 1. Investigations: The DG is responsible for investigating any complaints or
cases referred to the CCI. This includes gathering evidence, interviewing
witnesses, and compiling reports for the CCI’s consideration.
2. Inquiries: The DG also carries out inquiries based on CCI’s directives or on
suo-motu (self-initiated) investigations into market practices that may be
anti-competitive.
3. Submission of Reports: The DG submits investigation reports to the CCI,
which may include recommendations on further actions or penalties to be
imposed on the offending entities.

Penalties for Contravention of CCI Orders

If a business or individual fails to comply with the orders of the CCI, they can face
serious consequences. The penalties include:

1. Fines: The CCI has the authority to impose fines on entities found guilty of
anti-competitive conduct, such as cartels, abuse of dominant position, or
failure to notify the CCI about mergers and acquisitions.
o Penalties may range from a percentage of the turnover or assets of the
entity involved.
2. Disgorgement of Profits: In cases where a business has gained unlawful
profits due to anti-competitive conduct, the CCI may order the business to
disgorge these profits, i.e., return the gains made from the unlawful practice.
3. Injunctions and Remedies: In addition to financial penalties, the CCI can
issue injunctions, which may require the offending entity to cease the
harmful practice, rectify its behavior, or take corrective actions to restore
competition in the market.
4. Imprisonment: In cases of severe violations, the CCI may recommend
criminal penalties or imprisonment, although this is subject to the approval
of the courts.

Power to Make Rules

Under the Competition Act, 2002, the CCI is empowered to make rules for the
effective functioning and enforcement of the provisions of the Act. These rules can
cover various aspects, such as:

1. Investigation Procedures: The CCI has the power to set rules governing the
procedure for investigations into anti-competitive conduct and the manner in
which evidence is gathered.
 2. Formulation of Guidelines: The CCI can issue guidelines regarding the
assessment of anti-competitive agreements, abuse of dominant positions, and
evaluation of combinations.
3. Penalty Structures: The CCI can set guidelines for determining the amount
of penalties based on factors such as the gravity of the offense, the turnover
of the entity, and the harm caused to competition.
4. Appeals Process: Rules related to the filing and processing of appeals
against CCI orders can also be formulated by the Commission.

Conclusion

The Competition Commission of India (CCI) plays a pivotal role in maintaining

fair competition in the Indian market. By investigating anti-competitive practices,
regulating mergers and acquisitions, and promoting consumer welfare, the CCI
ensures that businesses in India operate fairly and efficiently. The Commission's
ability to impose penalties, investigate cases, and provide advocacy for
competition policy significantly contributes to the integrity of the Indian market,
protecting consumers from harmful business practices and fostering a competitive
economic environment.