OPE QUESTION ANSWER-

Q1. WHO IS CONSUMER AND WHAT ARE HIS/HGER RELIEFS ACCORING TO CPA 1986? {FOR 4 MARKS}

ANS.-
Q2. CONSUMER HAS A RIGHT TO GET COMPENSTION DEPENDING ON THE DEGREE OF DAMAGE?

ANS.- A consumer has the right to get compensation depending on the degree of the damage.”

Support this statement with an example.

Answer: Consumers have the right to seek redressal against unfair practices and exploitation. If

any damage is done to a consumer, he or she has the right to get a compensation, depending on

the degree of damage. There is need to provide an easy and effective public system by which this

can be done.

For example, Pihu had sent a money order to her village for her sister’s marriage. The money did

not reach her sister at the time when she needed it, nor did it reach months later. So, Pihu filed a

case in the district level consumer court and practiced her right to seek redressal

SECTION B (6 * 2)
Q3. WHAT ARE THE DEFECT IN GOOD and deficiency in services? With example?

ANS. What are Goods?

Term goods is defined under Section 2(21) of the Consumer Protection Act, 2019. According to this
section, goods mean any property which is movable. Goods also include food as defined under section
3(1)(j) of the Food Safety and Standards Act, 2006.[4]

Illustration

A brought a book from B for a consideration of Rs. 500. Here, the book is a tangible good and Rs. 500 is
the amount paid for it as a consideration.

What is Defect?
Every consumer desire that the goods he bought are in a situation as desired by him means there
shouldn’t be any defect in it but, how can we define this defect?

Section 2(10) defines a defect as any

 Shortcoming
 Imperfection
 Fault

in some parameters of goods such as -:purity, quality, quantity, potency, or standard which the producer
is required to maintain or provided under any law or any contract or implied by the trader in any
manner.[5]

Defective Goods

From the above definitions, it is easy to identify a defective good. Goods that include any of the
shortcomings given under section 2(10) of the Consumer Protection Act, 2019 is a defective good.

Illustrations

Adulterated milk is a defective good.

Beauty products which may badly affect users’ skin is a defective good.

What is a service?

Service is any benefit availed by the consumer which is not tangible. Every day we all humans hire
different services. Term service is defined under Section 2(42) of the Consumer Protection Act,2019.
These services include facilities related to banking, financing, processing, insurance, telecom, transport,
etc. A service provided will be counted as a service only when it is in paid form. Service doesn’t include
any free service. [10]

Illustrations

Internet facility is a service.

Teaching is a service in which the teacher is a service provider.

Medical Check-up is a service in which Doctor is a service provider.

What is Deficiency?

In literal terms, deficiency means inadequacy. Term deficiency is defined under section 2(11) of the
Consumer Protection Act,2019.

It means any

 Imperfection
  Limitation
 Fault

Insufficiency in the nature, manner, and quality of performance, required to be maintained by or under
any law or in pursuance of a contract or otherwise concerning any service. [11]

Illustrations

A customer buys a ticket for an AC bus. But AC of the bus does not work, which is a deficiency of service.

Deficiency of Service

The above two definitions help to clearly understand the meaning of deficiency in services. Whenever
there is any sort of deficiency in services, the customer is exploited which results in his loss of money.
Any kind of negligence or omission or commission can cause injury to consumers.[12]

Illustration

Inappropriate treatment done by a doctor leading to an increase in patient’s suffering is the deficiency in
service.

Q4. Explain right to safety?

Ans.-

Right to Safety

According to the Consumer Protection Act 1986, the consumer right is referred to as ‘right to be
protected against marketing of goods and services which are hazardous to life and property’. Right to
safety. Means right to be protected against the marketing of goods and services, which are hazardous to
life and property. The purchased goods and services availed of should not only meet their immediate
needs, but also fulfill long term interests. Before purchasing, consumers should insist on the quality of
the products as well as on the guarantee of the products and services. They should preferably purchase
quality marked products such as ISI, AGMARK, It is applicable to specific areas like healthcare,
pharmaceuticals and food processing, this right is spread across the domain having a serious effect on
the health of the consumer for their well being viz. Automobiles, Housing, Domestic Appliances, Travel
etc. When there is a violation of the right then there occur medical malpractice lawsuits in the country.
It is estimated every year that thousands or millions of citizens of India are killed or seriously injured by
immoral practices by doctors, hospitals, pharmacies, and the automobile industry. Still, the government
of India, known for its callousness, does not succeed in acknowledging this fact or making a feeble effort
for maintaining statistics of the mishaps.
SECTION C(10*2)

Q5 WHAT ARE THE CONSUMER RIGHTS UNDER CPA 1986, EXPLAIN WITH
EXAMPLE

OR
Q6. WHAT ARE THE VARIOUS CONSUMER COUNSIL
 Q8. Prakhar purchased an ISA mark electronic iron from Bharat electricals while using he found that
it was not working properly . he approved the seller and complaint for the same.
the seller satisfied prkhar by saying that he will ask the manufacturer to replace this iron . the
manufacturer refused to replace amd bharat electrical decided to file a complaint in the consumenr
court. can Bharat electrical do this? also explain who is the consumer as per the CPA 1986?

Ans. (i) Yes, Bharat Electricals can file a complaint at the Consumer Court because the cost of
repair would have to be borne by Bharat Electricals. Prakhar can also file a complaint against
the manufacturer as the manufacturer has failed to rectify or replace a defective electric iron.

(ii) Prakhar practiced the right to be heard and Bharat Electricals practiced the right to seek
redressal. Bharat Electricals registered under the Companies Act 1956 is a consumer of the
manufacturer as it facilitates sales of electric iron for the manufacturer. Prakhar is also a
consumer of Bharat Electrical as he purchased the electric iron from Bharat Electricals though
he is an indirect consumer of the manufacturer.

OR
Q7. WHAT ARE THE SILENT FEATURES OF CPA

1. All e-commerce transactions will be covered:

The Consumer Protection Act, 2019 has widened the definition of ‘consumer’.
The definition now includes any person who buys any goods, whether through
offline or online transactions, teleshopping, electronic mode, teleshopping, direct
selling or multi-level marketing. In Consumer Protection Act 1986, there was no
inclusion of e-commerce transactions.
Now, under the new act -

Enhancement of Pecuniary Jurisdiction,

1. The district forum can now entertain those consumer complaints where
the value of goods or services paid does not exceed INR 1crore.
2. The State Commission can entertain disputes where such value is more
than INR 1Crore & less than 10 crore.
3. The National Commission can exercise jurisdiction where the value
exceeds INR 10Crore.
2. New product liability provisions proposed:

The provisions for product liability have been proposed under Consumer
Protection Act 2019. The defence that e-commerce platforms are merely the
‘platforms’ or ‘aggregators’ will no longer be accepted. Now, the manufacturer or
a service provider has to compensate a consumer in case he/she undergoes an
injury or a loss due to defective goods or poor service. For instance, if a mobile
phone or any electronic appliance explodes due to a manufacturing defect and
harms the consumer, then the manufacturer will be liable to compensate the
consumer for the injury.
 The most significant impact of this provision impacts e-commerce platforms. The
product liability is now extended to sellers and service providers along with
manufacturers. This means e-commerce sites cannot exclude the aggregators
anymore. They will also be bearing the loss of injury, if caused to any consumer.

The Consumer Protection Act,2019 has also introduced a specific broad

definition of Unfair Trade Practices. The 2019 Act has also widened the definition
of Unfair Trade Practices as compared to the 1986 Act which now includes within
its ambit online misleading advertisements; the practice of not issuing bill/memo
for the goods and services; failing to take back defective goods or deactivate
defective services and refund the amount within the stipulated time mentioned in
the bill or memo or within 30 days in the absence of such stipulation; and
disclosing personal information of a consumer unless such disclosure is in
accordance with law.

3. Establishment of Central Consumer Protection Authority:

The New Act has proposed the establishment of a regulatory authority. It is the
Central Consumer Protection Authority (CCPA), possessing wide powers of
enforcement. Headed by a Director-General, the CCPA will have an investigation
wing that may conduct inquiry or investigation into consumer law violations.

The CCPA has been granted wide powers to take suo-moto actions, order
reimbursement of the price of goods/services, recall products, cancel licenses
and file class action suits, if a consumer complaint affects more than 1 (one)
individual.

4. Enact 6 rights of consumers:

The act offers 6 rights to the consumers:

Be protected against the marketing of goods, products or services which are

hazardous to life and property;

be informed about the quality, quantity, potency, purity, standard and price of
goods, products or services;

be assured, wherever possible, access to a variety of goods, products or

services at competitive prices;

be heard and to be assured that consumers' interests will receive due

consideration at appropriate fora;

(v) seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers;
 Right to consumer education.

5. Prohibition and Penalties for misleading advertisements:

The Central Consumer Protection Authority (CCPA) will have the power to
impose fines on the manufacturers with upto 2 years of imprisonment for
publishing misleading or false advertisements. For example: Dhan Varsha Laxmi
Mantra, or expensive Tabeej to protect from bad evils. For repeated offense, the
manufacturer may attract imprisonment for upto 5 years and a fine of Rs 50
Lakhs.

The CCPA also prohibits the endorser from endorsing a misleading

advertisement of that particular product or service for 1 year. For every further
offence, the period of prohibition may extend to 3 years.

The Act also fixes the liability in case a consumer falls prey to unfair trade
practices under the influence of celebrities acting as brand ambassadors. This
provision clearly indicates that the endorser would need to take the onus and
exercise due diligence for verifying the claims made in the advertisements.

6. Establishment of Consumer Disputes Redressal Commission:

This new act has enacted the provision of the establishment of the Consumer
Disputes Redressal Commissions (CDRCs) at the National, State and District
levels. This panel has been formed to entertain complaints related to (i)
Overcharging or deceptive charging (ii) Unfair or restrictive trade practices (iii)
Sale of hazardous goods and services that may be hazardous to life (iv) Sale of
defective goods or services

7. Provision for Alternate Dispute Resolution:

This New Act is quite convenient from the previous one, thanks to Alternate
Dispute Resolution mechanism, that makes the process of dispute dissolution
simpler and quicker. It enables speedier resolution of disputes and reduces
pressure on consumer courts that already have numerous cases pending before
them.

8. E-Filing of Complaints:

It is one of the most valuable benefits of Consumer Protection Act 2019. It offers
wide flexibility to the consumers. They can file complaints with the nearby
jurisdictional consumer forum, be it close to residence or place of work. It is
unlike the previous practice, where the filing was made from the place of
purchase or where the seller has its registered office address. The complaints
can also be lodged electronically. Infact, videoconferencing can be done for
 hearing or examining parties. It aims to offer procedural ease and reduce
inconvenience and harassment for the consumers.

With the new act based on the foundation of fair trade practices, the consumers are no
more asked to beware. Today, a consumer is treated like a King. Hence, it becomes
important for the owners of consumer driven businesses, like e-commerce or retail to be
mindful of the changes in the legal landscape and have robust policies that deal with
consumer redressal in place. Consumer driven businesses need to be cautious before
opting for unfair trade practices.