CONSUMER PROTECTION LAW

Module I: Introduction

Consumer: Meaning and Scope - Rights of Consumers – History of Consumer Protection -

Consumer Protection Laws – General Laws – Specific Laws – Voluntary Mechanisms

A consumer is said to be a king in a free market economy. The earlier approach of caveat
emptor, which means “Let the buyer beware”, has now been changed to caveat venditor (“Let
the seller beware”). However, with growing competition and in an attempt to increase their
sales and market share, manufacturers and service- providers may be tempted to engage in
unscrupulous, exploitative and unfair trade practices like defective and unsafe products,
adulteration, false and misleading advertising, hoarding, black-marketing, etc. This means that
a consumer might be exposed to risks due to unsafe products, might suffer from bad health due
to adulterated food products, might be cheated because of misleading advertisements or sale of
spurious products, might have to pay a higher price when sellers engage in overpricing,
hoarding or black-marketing, etc. Thus, there is a need for providing adequate protection to
consumers against such practices of the sellers.

1. Consumer: Meaning and Definition

Consumer [S.2(7) of Consumer Protection Act, 2019]

Any person who: 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

Any person who: 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.
 Any Person:

 Who buys any goods

 Any person who avails a service
 User of such goods or service is also a consumer
 Any person who buys goods or avails service through e- commerce
 ‘On a consideration paid or partly paid or promised or partly promised or under
a system of deferred payment’

Consideration

 Something valuable in the eye of law

 Consideration paid or promised, or partly paid and partly promised, or under any system
of deferred payment
 A deferred payment is an agreement to pay for something at a later date.
 The Direct and Indirect taxes paid to the State by a citizen is not payment for the
services rendered.
 Fees for performance of a Statutory duty is not a consideration

Tax is not a Consideration: Mayor, Calcutta Municipal Corporation v. Tarapada Chatterjee

 X was paying property tax for his house to the local corporation.
 The corporation was responsible for proper water supply
 X raised a consumer dispute over the inadequacy of water supply by the corporation.
 The National Commission held that it was not a consumer dispute as water supply was
made by the corporation out of its statutory duty and not by virtue of payment of taxes
by X

User of Goods is a Consumer: Dinesh Bhagat v. Bajaj Auto Ltd.

 A purchased a scooter which was in B’s possession from the date of purchase.
 B was using it and taking it to the seller for repairs and service from time to time. Later
on, B had a complaint regarding the scooter.
 The seller pleaded that since B did not buy the scooter, he was not a consumer under
the Act.
 Three important considerations:

 Goods or services are to be used by the person.

 Exclusively for the purpose of earning livelihood
 By way of self-employment

Relevant Factors:

 Size of the organisation & Purpose of Purchase

 Use of such goods or services and its nexus with the activities of organisation
 Object of Use – To earn profit or for livelihood
 Only a natural person

Who are not Consumers?

 Any person buys any goods, if such:

 Purchase for resale purpose
 Purchase for any commercial purpose
 Any person avails a service, if
 Availing Service for any commercial purpose
 Any service free of charge [2(42)]
 A service rendered under a contract of personal service [S.2(42)]
 Resale
 Commercial Purposes

Synco Textiles Private Limited v. Greaves Colton and Co. Ltd.

 The purchase of the generating sets was, for enabling the company to carry on its
commercial activity of manufacturing edible oils on a large scale for purposes of trade.
 There is commercial production of edible oil.
 There is a close and direct nexus between the purpose of purchase of the generating sets
and the commercial activity.

Oswal Fine Arts v. M/ s. H.M. T. Madras

 Photocopier Machine – Held to earn livelihood – Consumer

Bhupendra Guna v. Regional Managers

 Purchase of commodity for livelihood purposes does not amount to commercial use.
  In the case, the purchase of a tractor by a farmer to till his own land did not amount to
commercial purpose, despite it being used for the purpose of growing crops, which
would then be sold.

Action construction or Equipment Ltd & Anr v. Bablu Mridha

 If a purchaser takes help or assistance to operate a machine he will still remain a

‘consumer’ under this act.

Any service free of charge [S. 2 (42)]

 A service rendered under a contract of personal service [S. 2 (42)]

Contract for Personal Service and Contract of Personal Service

 A contract for service is an agreement that is entered into by a consumer with a third-
party for availing its services.
 The third-party is an independent service provider, not an employee of the consumer
 Consumer does not exercise control over such third-party.

A contract of service is an agreement that is entered into by a consumer with an individual for
availing his/her services.

 The consumer enjoys control over the work of such individual and he is bound to obey
the orders of such consumer
 Driver, House made, Gardner etc.

Need for consumer protection

Every person in India, irrespective of age, financial status, and other factors, from birth to
death, consumes or avails one or the other good or service. Consequently, it is essential that
every consumer makes an informed decision about the value of his or her money and that his
or her interests are completely protected with respect to:

 The purchased goods without defects that are fit for consumption;
 Services are without any deficiencies.

Many manufacturing units and service providers that sell goods and render services
respectively, with the primary goal of increasing their positive returns, frequently engage in
such activities that are at the disadvantage of the consumers, such as selling poor-quality or
defective products or rendering unsatisfactory services that fall below expectations in one way
or the other. Furthermore, many industries which aim to become a monopoly usually indulge
in various unfair practices, such as rate cutting, deferred rebate, full line forcing and other
malpractices, which makes consumers vulnerable. Later, a need has come to save consumers
and, thus, the concept of consumer protection came into the picture to remove the plight of
consumers. This concept also became one of the most widely discussed topics worldwide.

Through this concept, every consumer is provided with rights and remedies. However, the
ignorance of the consumer regarding their rights and remedies enables the producers to take
advantage of them. Manufacturers, distributors, sellers and retailers frequently make huge
profits by purposefully and intentionally lowering the quality of the goods and providing false
information, amongst other practices.

Consumers are negatively impacted by these malpractices by producers. Hence, consumers

must be informed of their rights, speak out against exploitation, and file complaints to have
their complaints heard. As a result, the necessity, as well as the importance of consumer
protection, is growing day by day.

2. Rights of Consumers

On March 15, 1962 by US President John F. Kennedy declared four basic consumer rights:

 The right to safety

 The right to be informed
 The right to choose
 The right to be heard

Two decades later, in the 1980s, four more rights were added by the international coalition of
consumer groups:

 The right to satisfaction of basic needs

 The right to redress
 The right to consumer education
 The right to a healthy environment
Rights of Consumers under Consumer Protection Act, 1986

 Right to Safety

It is Right to safety against such goods and services as are hazards to health, life and property
of the consumer. For example, spurious and sub-standard drugs; appliances made of low quality
of raw material, such as, electric press, pressure cooker, etc. and low-quality food products like
bread, milk, jam, butter etc. Consumers have the right to safety against loss caused by such
products.

 Right to Information

Consumer has also the right that he should be provided all those information on the basis of
which he decides to buy goods or services. This information relates to quality, purity, potency,
standard, date of manufacture, method of use, etc. of the commodity. Thus, producer is required
to provide all these information in a proper manner, so that consumer is not cheated.

 Right to Choice

Consumer has the full right to buy goods or services of his choice from among the different
goods or services available in the market. In other words, no seller can influence his choice in
an unfair manner. If any seller does so, it will be deemed as interference in his right to choice.

 Right to be Heard

Consumer has the right that his complaint be heard. Under this Right the consumer can file
complaint against all those things which prejudicial to his interest. First there rights mentioned
above (Right to Safety; Right to be Informed; Right to choose) have relevance only if the
consumer has right to file his complaint against them. These days, several large and small
organisations have set up Consumer service cells with a view to providing the right to be heard
to the consumer. The function of the cell is to hear the complaints of the consumers and to take
adequate measures to redress them. Many newspapers like The Economic Times have weekly
special columns to entertain the complaints of the consumers.

 Right to Seek Redressal

This provides compensation to consumer against unfair trade practice of the seller. For instance,
if the quantity and the quality of the product do not confirm to the promise of the seller, the
buyer has the right to claim compensation, such as free repair of the product, taking back of
the products, changing of the product by the seller

 Right to Consumer Education

Consumer education refers to educate the consumer constantly with regards to their rights. In
other words, consumers must be aware of the rights they enjoy against the loss they suffer on
account of goods and services purchased by them. Government has taken several measures to
educate the consumers. For instance, Ministry of civil supplies publishes a quarterly magazine
under the title “UPBHOKTA JAGRAN”. Doodarshan telecasts programme tittles
“SANRAKSHAN UPBHOKTA KA”.

Rights of Consumers under 2019 Act [S. 2(9)]

 The right to be protected against the marketing of goods, products or services which
are hazardous to life and property;
 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;
 The right to be assured, wherever possible, access to a variety of goods, products or
services at competitive prices;
 The right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate fora;
 The right to seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers; and
 The right to consumer awareness

3. History of Consumer Law

The concept of consumer protection is not something new in India. It is as old as trade and
commerce itself. It has its roots in our country which date back to 3200 B.C. In ancient India,
human values and ethical behaviour is at the core of Indian culture and ethos. Also, the welfare
of the people is the primary objective of governance of the ancient rulers. Hence, those rulers
kept norms and values in their minds while making rules and regulations to make them suitable
for the then-Indian society. Even for spiritual purposes, both rulers and traders followed dharma
while making policies or rules and doing trade and commerce respectively. For this objective,
the ancient kings started controlling not only the social lives but also the economic lives of
people by imposing numerous trade restrictions on producers and traders to safeguard the
interests of consumers.

Vedic Period

 Manu Smriti; Yajnavalkya Smriti; Narada Smriti; Bruhaspati, Smriti; Katyayana Smriti;
Kautilya’s Arthashastra
 Adulteration
 False Weights and Measures
 Excess Price
 Sale of Prohibited Articles
 Criminal offence
 Sultanate Period – Secret Officers

Pre 1950’s

In the modern era, the British system took over India’s long-standing traditional legal system and
created a uniform national legal system. A few of the statutes which protect the interests of
consumers were enacted during the British regime as follows:

 Common Law Action: Tort of Negligence

 Contract Law – Caveat Emptor – Freedom of Contract (Sanctity of Contract)
 Indian Penal Code of 1860:
o Sections 264 – 267 False weights and measures and its use
o Section 272 – 276: Adulteration
 Indian Contract Act, 1872; Sale of Goods Act, 1930; Agriculture Procedure (Grading
and Marketing Act) of 1937; The Drugs and Cosmetics Act, 1940; etc.

These legislations gave special statutory protection to consumers in our country. The Indian
Penal Code, 1860, also provides various provisions to safeguard the interests of consumers
against various cases of abuse and malpractice in the market.

The Sale of Goods Act, 1930 (hereinafter referred to as “SGA”), which is a remarkable piece
of legislation that has been drafted very carefully, served as India’s sole source of consumer
protection for 55 years. It is highly praised as a “Consumer’s Charter.” It offers exceptions to
the maxim ‘caveat emptor’ (Let the buyer beware) and ensures that the interests of the
consumers are adequately protected. Before the Consumer Protection Act, 1986 was passed to
supplement the remedial measures previously offered by the SGA, the SGA served as the only
consumer protection law.

Post 1950’s

 Constitution of India
 Preamble – Economic Justice

The Preamble emphasises preserving and promoting social, economic, and political justice. For
a better understanding, if justice was a tree, then consumer justice represents one of its
branches. “Consumer justice” is a component of and essential to social and economic justice,
both of which should be ensured by the State for its people. The State should aim to ensure that
the consumer receives goods of appropriate quality and quantity for what he or she has desired
to purchase. The concept of consumer justice also includes providing various steps and
measures for consumers from the various cases of abuse, evil practices and exploitation by
market players whose occurrence ultimately makes consumer detriment, addressing
consumers’ complaints and delivering appropriate remedies.

Any consumer in a country requires legal protection to achieve a significant amount of

economic equality in any marketplace and the concept of social justice is a shield to do so
because, presently, they are in an inferior bargaining position compared to manufacturers,
traders, sellers, and distributors. In this way, a branch of economic justice called consumer
justice seeks to create a ‘welfare state’ and an ‘economic democracy’.

 Article 38: To ensure justice, social, economic, and political

According to Article 38(1) of the Constitution of India, “the State shall strive to promote the
welfare of the people by securing and protecting as effectively as it may a social order in which
justice, social, economic, and political, shall inform all the institutions of the national life.”
Even though it is not enforceable in a court, the Article imposes a duty on the State to enhance
social justice in the country by removing any inequalities in aspects like status, facilities and
opportunities. A consumer who is also a citizen of the country is entitled to social justice by
virtue of this Article.

 Article 39 (b &c): Distribution of ownership and control of the material resources

and prevention of economic concentration
Article 39(a) states that the citizens, men and women equally, have the right to an adequate
means of livelihood. The article requires the state to offer free legal help to ensure that no
citizen is denied justice due to financial or other barriers. We can also interpret the phrase “any
citizen because of economic or other disability” from the perspective of the consumer. A few
consumers are unable to enforce their rights by approaching court due to poverty, ignorance,
and a sense of powerlessness. Because of the constitutional mandate given under Article 39,
the State should provide legal services free of cost to needy consumers.

 Drugs Control Act, 1950

This Act empowered the Government to control sales, supply and distribution of drugs and to
fix the maximum price which may be charged for the drugs. The object of this Act is to ensure
that certain essential imported drugs and medicines may be sold at reasonable price.

 Indian Standards Institution (Certification Marks) Act, 1952

 The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954

This Act prohibited advertisements of drugs for certain diseases like blindness, heart disease,
paralysis, etc. for saving the common consumers being duped and damaged in their health and
life.

 Prevention of Food Adulteration Act, 1954

The Act aims to check adulteration of food articles and ensure their purity so as to maintain
public health.

 Essential Commodities Act, 1955

The Act aims at controlling production, supply and distribution of essential commodities,
checking inflationary trend in their prices and ensuring equal distribution of essential
commodities. The Act also provides for action against anti-social activities of profiteers,
hoarders and black-marketers.

 Monopolistic and Restrictive Trade Practice Act, 1969

The M.R.T.P. Act tries to checkmate the manipulative capacity of monopoly trades in several
ways. It protects the interests of the consumers in an indirect way from an adverse market. An
institution under the name, the Monopolies and restrictive Trade Practices Commission has
been created by the Act.
Some elaborate provisions regarding the control of prices and to regulate distribution and
supply of goods are made in the Act. The commission is given wide powers to investigate and
make orders for modification or cancellation of restrictive trade agreements, having effect of
the increasing of cost of production, distribution and supply of goods, increasing prices,
reducing competition or deteriorating the quality of any goods or performances of any services.
This Act gives a discretion to the Monopolies and Restrictive Trade practices commission to
hear an individual consumer aggrieved by any restrictive or unfair trade practice. The Act
sought to confer an important right on an individual consumer and a voluntary consumers
Association to file a complaint before the commission and of being heard by it on receipt of a
complaint in this behalf the commission is required under the provisions of the Act, to institute
regular inquiry into any restrictive or unfair trade practice alleged by such individual consumer
or voluntary consumers association.

 Prevention of Black-marketing and Maintenance of Essential Commodities Act, 1980

This Act seeks to check black marketing of essential supply of goods by traders. It provides for
severe punishments in case of violation of the provisions of the Act. It provides for detention
of black marketing and maintenance of supplies of commodities essential to the community.

 The Cigarettes (Regulation of Production Supply and Distribution Act), 1975

 The Standards of Weights and Measures (Enforcement Act), 1985

The provisions of this Act are applicable in case of those goods which are sold or distributed
by weight, measure or number. It provides protection to consumers against the malpractice of
under- weight or under-measure.

 The Bureau of Indian Standard Act, 1986

Consumer Movements

 Bombay Passengers and Traffic Relief Association, 1915

 Women Graduate Union, 1915
 Indian Association for Consumers, 1956

Consumer movement in India had its beginning in the early part of this century. The first known
collective body of consumers in India was set up in 1915 with the 'Passengers and Traffic Relief
Association' (PATRA) in Bombay. Women Graduate Union (WGU). Bombay was another
organisation started in 1915. One of the earliest consumer co-operatives was the 'Triplicane
Urban Co-operative Stores' started in late 40's in Madras. It has about 150 branches all over the
city. The Indian Association of Consumer (LAC) was set up in Delhi in 1956. This was an All
India Association for consumer interests with the government's support. However, even IAC
did not make any headway.

 1962, March 15 - President Kennedy - Consumer Bill of Rights

 Right to Safety, Right to Information, Right to Choose and Right to be Heard

Consumer Guidance Society of India (CGSI), 1966

The first organisation to really make an impact was the Consumer Guidance Society of India
(CGSI), Bombay started by nine housewives in 1966 with Mrs. Leela Jog as its founder
secretary. Instead of just holding conferences and meetings and asking questions like earlier
consumer associations, it started testing and reporting the quality of items of daily use of
foodstuffs and handling' consumer complaints. It has 8 branches at various places carrying on
publicity, exhibitions and education. It publishes a magazine called 'Keemat', in English, for
consumer information.

Karnataka Consumer Services Society, 1970

Karnataka Consumer Services Society' (KCSS) formed in 1970. The main strength of the
KCSS was Mrs. Mandana who spread the word of the movement throughout the country,
especially among government circles at a time when the word 'consumer' was not familiar to
many. It is based in Consumer Movement in India Bangalore. It organised important seminars
on consumers' education in schools and is represented on prevention of Food and Drug
Adulteration Committee and Karnataka Food and Civil Supplies Corporation.

Visaka Consumers Council, 1973

Visaka Consumers Council (VCC) started in 1973 in Vishakhapatnam, Andhra Pradesh, 'is
another pioneering consumer organisation which has made a significant contribution to the
consumer movement. It represented the plight of the poor ration card holders and LPG gas
users, who had to stand in long ques because of the irresponsible attitude of the concerned
authorities. Mr. V. K. Parigi with 20 members held meetings, survey of ration card holders and
succeeded in achieving necessary changes in the fair price shops and the public distribution
system. Besides this about 15 more organisations came up in Andhra Pradesh taking up the task
of solving problems of fair price shops and milk distribution in different parts of the state.
 Akhil Bhartiya Grahak Panchayat (ABGP), 1974 (Pune), Mumbai Grahak Panchayat
(MGP), 1979, Grahak Panchayat, 1979 (Jamshedpur)

To wage a war against exploitation by the traders, some organisations came up with the novel
idea of buying quality product of everyday use at wholesale and selling these to the consumers
at much lower prices than that being sold by the merchants. These are the Akhil Bhartiya
Grahak Panchayat (ABGP) started in 1974 in Pune, Mumbai Grahak Panchayat (MGP) in 1979
in Mumbai and Grahak Panchayat in 1979 in Jamshedpur.

Consumer Education and Research Centre (CERC), 1978

Another organisation which made a significant contribution to the cause of consumers is the
Consumer Education and Research Centre (CERC) which started in Ahmedabad in 1978. It
added a new dimension to the Consumer movement with Prof. Manubhai Shah, the Managing
Trustee of CERC. The organisation constantly used legal machinery to bring about changes
and protect consumer rights. Its special focus and intervention is against the governments and
public corporations. It has a big library, computer centre and a product testing laboratory.
Recently, it has also launched a project on comparative testing in Ahmedabad where
comparative testing, ranking and evaluation of consumer products are being undertaken with
the aim of publication of such findings for consumer education. To begin with, testing of food,
pharmaceuticals and domestic appliances had started. Findings will be published and Action
may be initiated against unsafe products. CERC also undertakes internship training for any
consumer organisation, besides routine exhibitions, seminars and publications of the magazine
'Consumer Confrontation.'

 Eleven Consumer Organizations joined together and set up the Indian Federation of
Consumer Organizations (IFCO), 1979

Consumer Unity and Trust Society (CUTS), 1985

Consumer Unity and Trust Society (CUTS) started in Jaipur, Rajasthan, in March 1984, made
its impact by effectively making use of media and publicity. For example, to tackle problems
of garbage, it announced prizes for a photograph depicting the biggest heap rubbish or the
biggest pothole, and this galvanised authorities into taking prompt action. Consumer Action
Group (CAG) founded in 1985 in Madras concerns itself with the issues of civic amenities,
health and environments. For example, shortage in Chennai and Chemical pollution in Adyar
river.

United Nations Guidelines for Consumer Protection, 1985

The United Nations Guidelines for Consumer Protection were adopted by the United Nations
General Assembly in 1985. These guidelines were established to serve as a set of principles for
member countries to promote and protect the economic interests of consumers. The guidelines
cover a wide range of issues, aiming to create a framework for fair business practices and
ensure the safety and rights of consumers. Here are some key aspects of the United Nations
Guidelines for Consumer Protection, 1985:

 Basic Consumer Rights: The guidelines emphasize the importance of recognizing and
protecting basic consumer rights. These rights include the right to safety, the right to
be informed, the right to choose, the right to be heard, the right to redress, and the
right to education.
 Protection from Unfair Business Practices: Member countries are encouraged to
establish and enforce regulations to protect consumers from unfair business practices.
This includes measures to prevent deceptive advertising, misleading labeling, and
fraudulent or unethical conduct by businesses.
 Product Safety and Quality: The guidelines emphasize the need for measures to
ensure the safety and quality of products. Member countries are urged to establish
standards and regulations to minimize the risks associated with products and to
provide consumers with accurate information about the products they purchase.
 Consumer Education: The guidelines stress the importance of consumer education
programs. Member countries are encouraged to promote consumer awareness and
education to empower consumers to make informed decisions and exercise their
rights.
 Consumer Redress: The guidelines advocate for mechanisms that allow consumers to
seek redress for injuries or losses resulting from defective products or unfair business
practices. This includes the establishment of accessible and effective dispute
resolution systems.
 International Cooperation: Recognizing the global nature of many consumer issues,
the guidelines encourage international cooperation among governments, consumer
 organizations, and businesses to address common challenges and promote consistent
consumer protection standards.

Consumer Protection Act, 1986

 Three major Amendments in 1991, 1993 & 2003

 Development of E-Commerce

 Delay and expenses

 Absence of Specific provisions relating to Advertisements

 The United Nations Guidelines for Consumer Protection (UNGCP), 2015

The 2015 revised UNGCP are preceded by the General Assembly resolution on consumer protection
70/186, which makes specific reference to the needs of developing countries, to the setting of the
Sustainable Development Goals as the successors to the Millennium Development Goals, and the
need for governments to cooperate across borders. References to changes since 1999 are implied by
paragraphs on privacy, e-commerce and financial services, as an explicit response to the irruption of
the digital economy and to the recent financial crisis.

The revised UNGCP extend their scope to state-owned enterprises (guideline 2) and introduce
four new 'legitimate needs' into guideline 5, the most quoted passage of the UNGCP.
Completely new sections are inserted on Principles for good business practices (guideline 11),
National policies for consumer protection (guidelines 14-15), Electronic Commerce
(guidelines 63-65), and Financial services (guidelines 66-68).

The previous section E, on Measures enabling consumers to obtain redress, is renamed Dispute
resolution and redress (now section F) and expanded to reflect the rapid evolution of such
mechanisms and now includes reference to debt and bankruptcy.

The Specific areas section (now K) is expanded to include Energy, (guideline 76), Public
utilities (guideline 77) and Tourism (guideline 78). Finally section VI, on International
cooperation, has been significantly expanded by the additions of guidelines 82-90, largely
covering enforcement cooperation mechanisms at the cross-border level.

The new section VII, International institutional machinery, addresses the review of the
application and implementation of the UNGCP at national and international levels and the
further review of the guidelines themselves by the Intergovernmental group of experts on
consumer protection law and policy.

Consumer Protection Act, 2019

 It came into force from July 20th, 2020

 The District Commissions will have the jurisdiction to entertain complaints where
the value of the goods, services or products paid as consideration to the seller does
not exceed 50 lakh rupees.

 State Commissions will have the jurisdiction to entertain complaints where the
value of the goods, services or products paid as consideration to the seller exceeds
50 lakh rupees but does not exceed two crore rupees.

 The National Commission will have the jurisdiction to entertain complaints where
the value of the goods, services or products paid as consideration to the seller
exceeds two crore rupees.

 The Act further states that every complaint concerning consumer dispute shall be
disposed of as expeditiously as possible. A complaint filed under this Act shall be
decided within the period of three months from the date of receipt of notice by the
opposite party in the cases the complaint does not require analysis or testing of the
goods and services and within a period of 5 months, if it requires analysis or testing
of the goods and services.

 The Consumer Protection Act, 2019 also facilitates the consumers to file complaints
online. In this regard, the Central Government has set up the E-Daakhil Portal,
which provides a convenient, speedy and inexpensive facility to the consumers all
over India so that they are able to approach the relevant consumer forums in case
of any dispute arises.

 The Act lays down the scope for e-commerce and direct selling.

 The Consumer Protection Act, 2019 lays down provisions for mediation and
alternative dispute resolution so that the parties are able to dispose of the case
conveniently without going through the trouble of litigation.
  The Consumer Protection Act, 2019 contains provisions for product liability, unfair
contracts and it also includes three new unfair trade practices. In contrast, the old
Act just stated six types of unfair trade practices.

 The Act of 2019 acts as the advisory body for the promotion and protection of
consumer rights.

 Under the Consumer Protection Act, 2019 there is no scope for selection
committees, the Act authorises the Central Government to appoint the members.

Therefore, with the changes in the digital era, the Indian Parliament enacted and brought the
Consumer Protection Act, 2019 in force to include the provisions for e-commerce as
digitalization has facilitated convenient payment mechanisms, variety of choices, improved
services, etc.

4. Consumer Protection Laws in India

The Indian legal framework consists of a number of regulations which provide protection to
consumers. As per the Right to Information Act 2005, Section 4, all relevant information is
required to be made available to all citizens of the country.

The government of India has been vigilant against the wicked tendencies of traders damaging
and dubbing the interests of common consumers. The following legislations give sufficient
light on the efforts of the government to save the consumers from malpractices in different
trades.

Three categories: -

 General Laws
 Indian Penal Code, 1860

Initially sections 272 to 276 prohibited adulteration of food or drink intended for sale, sale of
noxious food or drink, adulteration of drugs, sale of adulterated drugs and sale of drug as a
different drug or preparation and provided punishments in order to deter the criminal, dealing
with adulteration of food or drinks, sale of adulterated articles, sale of drugs by representing
that they are different drugs or preparation what they in fact are.1

 Indian Contract Act, 1872

The Act lays down the conditions in which the promises made by parties to a contract will be
binding on each other. The Act also specifies the remedies available to parties in case of breach
of contract.

 Sale of Goods Act, 1930

The Act provides some safeguards and reliefs to the buyers of the goods in case the goods
purchased do not comply with express or implied conditions or warranties.

 Special Laws
 Consumer Protection Act, 2019

The Consumer Protection Act, 2019 was enacted by the Indian legislature to deal with matters
relating to violation of consumer’s rights, unfair trade practices, misleading advertisements,
and all those circumstances which are prejudicial to the consumer’s rights. The intention of the
Parliament behind enacting the Act was to include provisions for e-consumers due to the
development of technology, buying and selling of goods and services online have considerably
increased during the last few years.

The Act seeks to provide better protection of the rights and interests of the consumers by
establishing Consumer Protection Councils to settle disputes in case any dispute arises and to
provide adequate compensation to the consumers in case their rights have been infringed. It
further provides speedy and effective disposal of consumer complaints through alternate
dispute resolution mechanisms. The Act also promotes consumer education in order to educate
the consumer about their rights, responsibilities and also redressing their grievances.

1
Consumer Rights - Suppression and Protection by Laasya Priya available on
http://www.lawyersclubindia.com/articles/Consumer-Rights-Suppression-and-Protection-
3425.asp#.U2W3dYGSzDs
  The Competition Act, 2002

This Act is replaced in the place of the Monopolies and Restrictive Trade Practices Act, 1969
and some other legislation. The main objective behind this Act is to develop competition
between the traders for the welfare of the consumers.2

 Food Safety and Standards Act, 2006

This Act is enacted by the policy makers to ensure availability of safe and wholesome food for
human consumption. The Parliament after holding that it is expedient in the Public Interest that
the Union should take under its control the food industry. This Act applies to every undertaking,
whether public or private, carrying out any activity, relating to any stage of manufacture,
processing, storage, transportation and distribution of food, whether for profit or not. It also
applies to any of the food services, catering services and sale of food and food ingredients.3

 Legal Metrology Act, 2009

Weighing or measuring the product in course of trade is an age old practice. But since last few
decades the State has undertaken to regularize the standard of weights and measures used to
sell or distribute the goods by weights, measure or number. This Act further bolsters the
consumer interest by mandating the sellers to strictly abide by the rules and regulations of
metrology.4

 The Bureau of Indian Standard Act, 2016

The Bureau of Indian Standards (BIS) Act 2016 was passed in 2016, and the BIS was
established according to provisions of the Bureau of Indian standards (BIS) act 1986. • In 2015,
the Lok Sabha presented a new statute (to replace the BIS Act of 1986), which was later enacted
by both chambers of Parliament. The new act went into effect in 2017. • BIS Act creates the
Bureau of Indian Standards (BIS) as India's National Standards Body. • The Bureau of Indian
Standards Act 2016 establishes a Bureau for product and process standardization, marking, and
certification. • The BIS Act proposes broadening its reach by granting the central government

2
Consumer Rights - Suppression and Protection by Laasya Priya available on
http://www.lawyersclubindia.com/articles/Consumer-Rights-Suppression-and-Protection
3425.asp#.U2W3dYGSzDs
3
Consumer Rights - Suppression and Protection by Laasya Priya available on
http://www.lawyersclubindia.com/articles/Consumer-Rights-Suppression-and-Protection
3425.asp#.U2W3dYGSzDs
4
supra
the authority to make the standard mark mandatory for certain specified things, commodities,
procedures, etc.

 Voluntary Mechanisms
 Grievance Redressal Mechanisms
 Ombudsman – Banking, Insurance
 Voluntary Code of Ethics – ASCI, FICCI
 National Consumer Helpline
 Toll Free nos. 14404 or 1800-11-4000
 SMS :-8130009809
 Online portal: www.consumerhelpline.gov.in
 Mobile App (NCH), Postal Letters, E-mails.