UNIT 2.

CONSUMER PROTECTION ACT 2019

INTRODUCTION
The Consumer Protection Act 2019 was notified on August 9th 2019. However, it
came into effect from July 20th 2020.
Consumerism is a movement that promotes the interests of buyers of goods and
services. Its main aim is to protect the consumer from unsafe or low quality
products, products, fraudulent advertising, advertising, labeling, labeling, packing
and business practices that limit competition. It promotes adequate information
about the products. So That consumer can make the right decision in purchasing
goods and services.
It also tries to inform consumers of the effective means of getting compensation for
damage or inconvenience caused by defective products and services. Due to
increasing standards of lifestyle, various consumer distresses like the lapses in the
services offered by various various utilities, the air lines, railways, railways,
telecommunications, electricity board, nursing homes etc. are growing. It is the
wholesalers and middlemen who indulge in illegal activities like dumping of goods
to create artificial scarcity and raise the prices of commodities which will increase
their profits.
So, consumerism is a national problem affecting every section of the society such
as men and women, young or old and youth or child. Hence, consumer protection
is a form of social action which will be designed to achieve the well being of the
one or group within a society.
There is a need to extend consumerism in India whichencompasses the set of
activities of government business enterprise and independent consumer
organizations that are designed to protect the rights and interests of consumers.

WHY THE NEED OF NEW LAW ?

●​ Consumer markets have undergone huge transformation since the enactment
of the Consumer Protection Act in 1986.

●​ Presence of increasingly complex products and services in the marketplace.

●​ The emergence of global supply chains, rise in international trade and the
rapid development of ecommerce.
 ●​ New delivery systems for goods and services have provided new
opportunities for consumers.

●​ Equally, this has rendered the consumer vulnerable to new forms of unfair
trade and unethical business practices.

●​ Misleading advertisements, tele-marketing, multi-level marketing, direct

selling and e-tailing pose new challenges to consumer protection and will
require appropriate and swift executive interventions to prevent consumer
detriment.

●​ Due to above cited reasons the Consumer Protection Bill, 2019 was passed
by the Indian Parliament on Aug 06, 2019, and later assigned by the
President of India. This new act will replace the old Consumer Protection
Act, 1986.

OBJECTIVES OF NEW STATUTE

●​ Ease the overall process of consumer grievance redressal system

●​ A better mechanism to dispose consumercomplaints in a speedy manner

●​ Help in disposal of large number of pending cases in consumer courts across

the nation

WHAT IS IN THE CONSUMER PROTECTION ACT, 2019?

Consumer Protection Act, 2019 is a law to protect the interests of the consumers.
This Act was inevitable to resolve a large number of pending consumer complaints
in consumer courts across the country. It has ways and means to solve the
consumer grievances speedily.The basic aim of the Consumer Protection Act, 2019
to save the rights of the consumers by establishing authorities for timely and
effective administration and settlement of consumers’ disputes.
CONSUMER RIGHTS

Right to Safety: It means the right to be protected against the marketing of goods
and services, which are hazardous to life and property. Before purchasing,
consumers should insist on the quality of the products as well as on the guarantee
of the products and services.

Right to be Informed: It means right to be informed about the quality, quantity,

potency, purity, standard and price of goods so as to protect the consumer against
unfair trade practices.

Right to Choose: It means the right to be assured, assured, wherever possible of

access to a variety of goods and services at competitive prices. Thisright can be
better exercised in a competitive market where a variety of goods are available at
competitive prices

Right to be Heard: It means that consumer's interests will receive due

consideration at appropriate forums. It also includes the right to be represented in
various forums formed to consider the consumer's welfare.

Right to Seek Redressal: It means right to seek redressal against unfair trade
practices or unscrupulous exploitation of consumers. It also includes the right to
fair settlement of the genuine grievances of the consumer.

Right to Consumer Education: It means the right to acquire the knowledge and
skill to be an informed consumer throughout life. Ignorance of consumers,
particularly of rural consumers, is mainly responsible for their exploitation.

SALIENT FEATURES

1.​ Simplified Dispute Resolution Process

2.​ Pecuniary Jurisdiction enhanced to-
District District Forum - Up to Rs 1 crore
State Commission - Between Rs 1 crore and Rs 10crore
National Commission - Above Rs 10 crore
 3.​ Deemed admissibility after 21 days of filing
4.​ Empowerment of Consumer Commission to enforce their orders
5.​ Appeals only on question of law after second stage
6.​ Ease of approaching consumer commission
7.​ Filing from place of residence
8.​ E-filing
9.​ Video- Conferencing for hearing

CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)

While the sector regulators essentially serve as standard setting bodies and seek to
ensure an even playing field between Government and other stakeholders. It is an
Executive Agency to provide relief to a class of consumers. Swift executive
remedies are proposed in the bill through CCPA The CCPA will be empowered to
promote, protect and enforce the rights of consumers as a class
CCPA would make interventions to prevent consumer detriment arising from
unfair trade practices.
The agency can also initiate class action, including enforcing recall, refund, return
of unsafe products, goods and services and impose penalties.
It will regulate regulate matters matters related related to violation violation of
consumer rights, unfair trade practices, adulteration of products and misleading
advertisements.
Provisions for deterrent punishment to check misleading advertisements and
Authority will have power to impose a penalty on a manufacturer or an endorser of
up to 10 lakh rupees and imprisonment for up to two years for a false or misleading
advertisement.
Presently, consumers only have a single point of access to justice, justice, which is
time consuming. Additional Additional swift executive remedies are proposed in
the bill throughCentral Consumer Protection Authority (CCPA)
DEFINITIONS

"advertisement" means any audio or visual publicity, representation, endorsement

or pronouncement made by means of light, sound, smoke, gas, print, electronic
media, internet or website and includes any notice, circular, label, wrapper, invoice
or such other documents;

"appropriate laboratory" means a laboratory or an organization— (i) recognised

by the Central Government; or (ii) recognised by a State Government, subject to
such guidelines as may be issued by the Central Government in this behalf; or (iii)
established by or under any law for the time being in force, which is maintained,
financed or aided by the Central Government or a State Government for carrying
out analysis or test of any goods with a view to determining whether such goods
suffer from any defect;

"branch office" means— (i) any office or place of work described as a branch by
the establishment; or (ii) any establishment carrying on either the same or
substantially the same activity carried on by the head office of the establishment;

"Central Authority" means the Central Consumer Protection Authority

established under section 10;

"complainant" means— (i) a consumer; or (ii) any voluntary consumer

association registered under any law for the time being in force; or (iii) the Central
Government or any State Government; or (iv) the Central Authority; or (v) one or
more consumers, where there are numerous consumers having the same interest; or
(vi) in case of death of a consumer, his legal heir or legal representative; or (vii) in
case of a consumer being a minor, his parent
or legal guardian;
"complaint" means any allegation in writing, made by a complainant for
obtaining any relief provided by or under this Act, that—
(i) an unfair contract or unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provider;
(ii) the goods bought by him or agreed to be bought by him suffer from one or
more defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him
suffer from any deficiency;
(iv) a trader or a service provider, as the case may be, has charged for the goods or
for the services mentioned in the complaint, a price in excess of the price— (a)
fixed by or under any law for the time being in force; or (b) displayed on the goods
or any package containing such goods; or (c) displayed on the price list exhibited
by him by or under any law for the time being in force; or (d) agreed between the
parties;
(v) the goods, which are hazardous to life and safety when used, are being offered
for sale to the public— (a) in contravention of standards relating to safety of such
goods as required to be complied with, by or under any law for the time being in
force; (b) where the trader knows that the goods so offered are unsafe to the public;
(vi) the services which are hazardous or likely to be hazardous to life and safety of
the public when used, are being offered by a person who provides any service and
who knows it to be injurious to life and safety;
(vii) a claim for product liability action lies against the product manufacturer,
product seller or product service provider, as the case may be;

"consumer" means any person who—

(i) buys any goods for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes
any user of such goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly promised, or under any
system of deferred payment, when such use is made with the approval of such
person, but does not include a person who obtains such goods for resale or for any
commercial purpose; or
(ii) hires or avails of any service for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment and includes any beneficiary of such service other than the person who
hires or avails of the services for consideration paid or promised, or partly paid and
partly promised, or under any system of deferred payment, when such services are
availed of with the approval of the first mentioned person, but does not include a
person who avails of such service for any commercial purpose.
"consumer dispute" means a dispute where the person against whom a complaint
has been made, denies or disputes the allegations contained in the complaint;

"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;

"defect" means any fault, imperfection or shortcoming in the quality, quantity,

potency, purity or standard which is required to be maintained by or under any law
for the time being in force or under any contract, express or implied or as is
claimed by the trader in any manner whatsoever in relation to any goods or product
and the expression "defective" shall be construed accordingly;

"deficiency" means any fault, imperfection, shortcoming or inadequacy in the

quality, nature and manner of performance which is required to be maintained by
or under any law for the time being in force or has been undertaken to be
performed by a person in pursuance of a contract or otherwise in relation to any
service and includes—
(i) any act of negligence or omission or commission by such person which causes
loss or injury to the consumer; and
(ii) deliberate withholding of relevant information by such person to the consumer;

"District Commission" means a District Consumer Disputes Redressal

Commission established under sub-section (1) of section 28;
"e-commerce" means buying or selling of goods or services including digital
products over digital or electronic network;

"electronic service provider" means a person who provides technologies or

processes to enable a product seller to engage in advertising or selling goods or
services to a consumer and includes any online marketplace for online auction
sites;

"mediation" means the process by which a mediator mediates the consumer

disputes;

"member" includes the President and a member of the National Commission or a

State Commission or a District Commission, as the case may be;

"misleading advertisement" in relation to any product or service, means an

advertisement, which—
(i) falsely describes such product or service; or
(ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature,
substance, quantity or quality of such product or service; or
(iii) conveys an express or implied representation which, if made by the
manufacturer or seller or service provider thereof, would constitute an unfair trade
practice; or
(iv) deliberately conceals important information;

What is Unfair Trade Practice?

An “unfair trade practice” means a trade practice, which, for the purpose of
promoting any sale, use or supply of any goods or services, adopts an unfair
method, or unfair or deceptive practice.

Some of these practices include:

1. False Representation
When goods and services are not of stated standard, quality or grade;
When second hand, renovated goods are sold as new ones;
When the seller does not have the required sponsorship, approval, affiliation;
When goods and service do not have the claimed use, usefulness or benefit;
When products / services do not have the claimed warranty / guarantee;
When the price of a product or service is misleading.
2. False and Misleading Advertisement of selling at Bargain price
3. Offering gifts, prizes, etc. to lure customers with no intention of providing them
Selling goods which do not fall within the safety standards set up by competent
authority
4. Hoarding or destroying goods with the intention of raising the cost of these or
similar goods manufactured in greater number so as to manipulate higher prices
5. Manufacturing or offering spurious goods or adopting deceptive practices in the
provision of services
6. Not issuing bill or cash memo or receipt for the goods sold or services
7. Refusing, after selling goods or rendering services, to take back or withdraw
defective goods or discontinue deficient services and to refund consideration paid
8. Disclosing to other person any personal information given in confidence by the
consumer

What is Restrictive Trade Practice?

“Restrictive Trade Practice” means a trade practice which tends to bring about
manipulation of price or conditions of delivery or to affect flow of supplies in the
market relating to goods or services in such a manner as to impose on the
consumers unjustified costs or restrictions and shall include—
(a) Delay beyond the period agreed to by a trader in supply of such goods or in
providing the services which has led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any goods
or, as the case may be, services as condition precedent to buying, hiring or availing
of other goods or services;

PROCEDURE TO FILE COMPLAINT

Who Can file the Complaint

The following person/association can file the complaint before the designated
authorities:-

●​ Any consumer to whom the goods or services were provided

●​ Group of consumers having similar interest in the matter
●​ Consumer Associations
●​ State Government or Central Government
●​ In case of minor-legal guardian
●​ Central Authority

Is there any Fee for filing Complaints?

Every complaint filed shall be accompanied by a fee as specified in the table given
below in the form of crossed Demand Draft drawn on a nationalized bank or
through a crossed Indian Postal Order drawn in favor of the President of the
District Commission or the Registrar of the State Commission or the Registrar of
the National Commission, as the case may be, and payable at the respective place
where the District Commission, State Commission or the National Commission is
situated, or through electronic mode as per arrangement made by the Commission
concerned.

Is there any exemption from payment of Fee?

The complainant where the value of goods or services paid as consideration is upto
rupees five lakh is exempt from payment of fee.

What is the Procedure to file complaints in Consumer Commissions?

A complaint when made in the District Commission or State Commission shall be

filed in three sets and where it is filed in the National Commission, it shall be filed
in four sets with additional sets equal to the number of opposite party(s). Every
complaint shall clearly contain particulars of dispute and the relief claimed and
shall also be accompanied by copies of such documents as are necessary to prove
the claim made in the complaint. A Consumer can argue his own case or can be
represented through an authorized person or agency.

Is there a need to engage a lawyer for filing a complaint in the Commissions?

There is no need to engage a lawyer or any other pleader and consumer can himself
or through his representative file and represent his complaint.

What are the particulars that should be furnished along with the complaint?

The complaint should contain the following particulars:

●​ Name and complete address of the complainant.

●​ Name and complete address of the opposite party/parties.
●​ Date of purchase of goods or services availed.
●​ Amount paid for the above purpose.
●​ Particulars of goods purchased with numbers or details of services availed.
●​ Details of complaint, whether it is against Unfair Trade Practice / supply of
defective goods / deficiency in service provided / collection of excess price,
should explicitly be mentioned in the complaint petition.
●​ Bills / receipts and copies of connected correspondence, if any.
●​ Relief sought for under this Act.
●​ Complaint should be signed by the complainant or his authorized agent

What is the time limit for filing a complaint?

A complaint has to be filed within two years from the date on which the cause of
action/deficiency in service/defect in goods arises. However, a complaint may also
be filed after two years, if the complainant satisfies the District Commission that
he/she has sufficient reasons for not filing the complaint within such a period.

What is the provision for appeal?

Aggrieved by the Order issued by the District Commission, an appeal petition may
be filed before the State Commission within 45 days from the date of receipt of
Order. Aggrieved by the Order issued by the State Commission, an appeal petition
may be filed before the National Commission within 30 days from the date of
receipt of Order. Aggrieved by the Order issued by the National Commission,
appeal petition may be filed before the Supreme Court of India within 30 days
from the date of receipt of orders. Under Consumer Protection Act, 2019 second
appeal cannot be filed unless there is a substantive question of law involved.

Mediation Proceeding:

The New Act introduces Alternative Dispute Mechanism for the speedy and
effective redressal of the consumer cases.

Initiation of Mediation Proceedings:

1.​ If the commissions thinks there is a possibility of a settlement of the dispute
between the parties, then same can be transferred to Mediation Cell or ;
2.​ The written request can be made by either of the parties to District, State or
National Commission stating
○​ Details of the parties
○​ Nature of the dispute
○​ Amount involved
○​ Relief sorted
○​ Proposal for appointment of Mediator (Language, Qualification,
experience, etc)

Procedure to be followed
 1.​ Parties can mutually agree on the procedure to be followed or;
2.​ If parties fail to come for mutual ground, then the mediator shall follow the
procedure mentioned below :
○​ Mediator shall fix the time, date and venue, where parties have to be
present or ;
○​ Mediation Proceedings can be held at the Mediation Cell attached to
the District, State or National Commission.
○​ Joint/ Separate meetings of the parties to be conducted.
○​ Within the period of 10 days, before the session, both the parties shall
submit the Memorandum of Issues to the mediator and other parties
involved highlighting the issues which need to be resolved.
○​ Necessary information to be provided to the mediator by both the
parties.
○​ Mediator shall facilitate a voluntary resolution between the parties,
communicate views of the parties and help assist the issue.
○​ Within the period of 30 days the parties should reach an amicable
settlement.
○​ If the parties arrive at a settlement, the same shall be reduced in
writing and the same needs to be signed by both the parties and
Mediator. Mediator shall further submit the detailed report of
settlement to the concerned commission.
○​ If parties failed to reach a settlement, then Mediator shall submit the
report to the commission stating the reasons for non-settlement.

The New Act introduces the "Online Filing" of Consumer Complaint

Step 1 (Issuance Of Notice): Before the filing of the complaint, it is advisable for
the complainant to issue a notice to the opposite party, highlighting the
defects/deficiencies in the goods or services provided. If parties don't agree to
come to a mutual understanding then the complainant can file a complaint before a
jurisdiction authority/forum.

Step 2 (Determining the Jurisdiction): The Complaint has to be filed within the
Pecuniary and Territorial Jurisdiction.
Pecuniary Jurisdiction: (As Per New Act)
●​ District Commission: Amount not exceeding 1 crore
●​ State Commission: Rupees 1 Crore to 10 Crore
●​ National Commission: Amount exceeding Rupees 10 Crore

Territorial Jurisdiction:
Place where the opposite party resides or if there are more than one opposite party,
then the place where opposite parties reside or carry on business or personally
work for gain.

Step 3 (Submission of Complaint): Complaint can be submitted in the form of

Writing or through Online.

Registration of Online Complaint

●​ Aggrieved Party can register complaints on https://consumerhelpline.gov.in/
●​ Complaints can be registered by filling essential details like name, email,
contact number & password.
●​ Complainant will receive login credentials through which he can register a
complaint by uploading required documents.
●​ There are different portals available for different sectors.
●​ A consumer can also register complaints through Mobile Apps namely the
NCH app, Umang App or Consumer App.
●​ Post-registration of the complaint, the complainant will be provided with a
unique identification number through which he can determine the status of
the complaint.
●​ Fees for the complaint can be submitted through an online payment portal.

Step 4 : (Contents of the Complaint): Complaint should contain the following

information

●​ Name and complete details of complainant And opposite party.

●​ Date and time of purchase of goods/ availing of services.
●​ Necessary Facts of the case establishing the cause of action.
●​ Particulars of dispute: Defect in goods/ deficiency in service.
●​ Relief sought
 ●​ Copies of the documents supporting the contention of the complainant.
(Invoice, Warranty receipt, etc)

Step 5 (Limitation for filing Complaint/Appeal): The Complaint before the

District Commission needs to be filed within the 2 years from the date of dispute.
Further, appeal before the State Commission to be filed within 45 days from the
date of order of the District Commission. Further, appeal to the National
Commission should be made within 30 days from the date of receipt of the order
from the lower forum.

Step 6 (Court Fees): The Court fees have to be paid in the form of Demand Draft,
in respect of the Registrar of respective Commissions. In respect of the National
Commission, the appellant has to make the Demand Draft of Rupees 5,000/-.

RELIEFS AVAILABLE TO THE CONSUMER

Where the District or State or National Commission is satisfied about defect in

goods, or deficiency in services on any unfair trade practice or claim for
compensation under product liability, issues an order:

(i) To remove the defect in goods or deficiency in service.

(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product, or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by
the consumer due to the negligence of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/ restrictive trade practice and not to repeat it in the
future.
(vii) Not to offer hazardous goods for sale.
CONSUMER DISPUTE REDRESSAL AGENCIES

What are Consumer Disputes Redressal Agencies?

The Act provides for a three tier Consumer Disputes Redressal Agencies. These
are: District Consumer Disputes Redressal Commission in the District, State
Consumer Disputes Redressal Commission at the state level and the National
Consumer Disputes Redressal Commission at the national level.
The member of Consumer Dispute Redressal Agencies Shall have following
qualifications:
1.​ Minimum 35 years of age
2.​ Should be at least a graduate from recognised university
3.​ Should be a person of ability, integrity and standing
4.​ Have adequate knowledge and experience of at least 10 years in dealing with
problems relating to economics, accountancy, industry, public affairs or
administration.
I. District Commission:

Each District has a District Commission. District Commission shall consist of one
is President, who is or has been or is qualified to be a District Judge and not less
than two members. At least one of the members or the President shall be a woman.
It entertains complaints where the value of goods or services paid as consideration
does not exceed rupees one crore. Every member of the District Forum shall hold
office for a term of 5 years or upto the age of 65 years whichever is earlier. Any
person aggrieved; by an order passed by the district forum may make an appeal
within 45 days of the date of the order in the prescribed form and manner to the
state commission.
The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.

II State Commission:

Each state has one State Commission. It consists of a President, who is or has been
a Judge of a High Court and at least four other members. At least one of the
members or the President shall be a woman. It entertains complaints where the
value of goods or services paid as consideration exceeds rupees one crore, but does
not exceed ten crore rupees. Appeals against the Orders of the District Commission
are also filed in the State Commission. Any person aggrieved by an order made by
the State Commission may prefer an appeal against such order to the National
Commission within a period of 30 days. The National Commission may entertain
an appeal after the expiry of the said period of 30 days, if it is satisfied that there
was sufficient cause for not filing it within that period.
Every member of the state commission shall hold office for a term of 5 years or
upto the age of 67 years whichever is earlier.

III National Commission:

The National Commission is located in Delhi. It consists of a President who is or

has been a Judge of the Supreme Court and not less than four other members, one
of whom shall be a woman. CPA 1986 (Earlier) CPA 2019(New). Complaints
where value of goods or services paid as consideration exceeds rupees ten crore
can be filed in the National Commission. It takes appeals against Orders passed by
the State Commissions. The Orders of this Commission can only be challenged in
the Supreme Court. President and members of the National Commission shall hold
office for a maximum period of 5 years and shall be eligible for reappointment.
President or members shall not hold office as such after he has attained such age as
specified in the rules made by the Central Government which shall not exceed –
1) in the case of the President, the age of 70;
2) in the case of any other member, the age of 67 years

Any person, aggrieved by an order made by the National Commission may prefer
an appeal against such order to the Supreme Court within a period of 30 days from
the date of the order.