CONSUMER PROTECTION AND COMPETITION

LAW: ENSURING FAIR MARKETS AND

CONSUMER WELFARE

1. INTRODUCTION
Consumer protection and competition law are two pillars of economic regulation aimed at
ensuring the well-being of consumers and the efficiency of markets. While consumer protection
focuses on safeguarding consumers from exploitation, fraud, and unsafe products, competition
law seeks to prevent monopolistic practices, promote fair competition, and enhance market
efficiency. Together, they create a robust framework for maintaining trust and fairness in
economic transactions. India has a special legislation providing for protection of consumers
known as the Consumer Protection Act, 1986. The Competition Act, 2002 provides for
protection of consumers interest.
2. COMPETITION AND CONSUMERS

Competition between business entities benefits both, producers and consumers. Competition
triggers economic efficiency, greater innovation, improved quality, wider choice, affordable
prices, adequate supply, easy access. However enterprises generally indulge in distorting or
limiting or eliminating the competition in the market. Collusion between the producers or traders
or service providers for designing unfair business practices and thereby reducing the competition
is a common feature of a market. Hence in the context of the general consumer welfare the role
of competition authorities while enforcing competition law is very crucial. In Neeraj Malhotra
v. Deustche Post Bank Home Finance Ltd. & Ors 2009 , Mr. P N Parashar’s Order quoted
from the European Commission Annual Report, 2005, that ‘competition authorities all around
the world are becoming more conscious of the impact that competition policy and law
enforcement has on consumers. They seem to be ever more anxious to declare and demonstrate
the significant role they play as enforcers of competition law in consumers’ economic life’. This
article deals with the recognition and protection of the consumer interests under the competition
law.

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3. COMPETITION DAY AND CONSUMER DAY

Few years back, UNCTAD was to study the feasibility of establishing a UN World Competition
and Consumer Day to publicize the benefits competition can make to consumers and the public
at large. Unfortunately that did not happen. Yet for India, the month of December has two
special days prompting us to enjoy exploring the interface between Consumer Protection under
the Competition Law 5th December is celebrated as the World Competition Day and 24th
December is declared as the National Consumer Day. Though we have a powerful consumer law
in the form of the Consumer Protection Act, 2019, yet protecting the interests of consumers and
thereby ensuring total consumer welfare is an important object of the Indian Competition Act
also. This article highlights the provisions under the Competition Act which are specifically
designed for the protection of consumers interests. the competition and consumer protection.
Every year 5th December is observed as the World Competition Day since 2010 to
commemorate the adoption of the ‘United Nations Set of Multilaterally Agreed Equitable
Principles and Rules for the Control of Restrictive Business Practices’ (The UN Set) on this date
in 1980. The UN Set, a milestone in the history of competition law and policy, is the first, and
thus far the only, multilateral agreement addressing anti-competitive practices. In India, every
year, 24th of December is observed as National Consumer Day. On this day the Consumer
Protection Act, 1986 had received the assent of the President. Celebration of this day provides an
opportunity for individuals to highlight the importance of the consumer movement and promote
the basic rights and responsibilities of all consumers. This day is an annual occasion for
celebration and solidarity within the national consumer movement and is an opportunity to
promote the basic rights of all consumers. The Consumer Protection Act, 1986 which was
enacted for better protection of the interest of the consumers was found to be inadequate to
address the problems caused by the new economy. Therefore it has been recently replaced by the
Consumer Protection Act, 2019.

4. THE COMPETITION ACT, 2002

The Competition Act, 2002 (the Act) has inter alia the protection of the interests of the
consumers as an objective. The predecessor of the Competition Act 2002 was the Monopolies
and Restrictive Trade Practices Act, 1969 (MRTP Act) and the said Act contained the consumer

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 protection provisions in the form of regulation of unfair trade practices. For over two decades,
unfair trade practices were sought to be curbed by the authorities under two legislations namely
the competition law and the consumer law. With the repeal of the MRTP Act on 1st September
2009, the UTPs have been in exclusive purview of the consumer law. Highlighting the
significance of consumer protection under the Act, the Supreme Court of India in the case of 1

5. CONSUMER PROTECTION ACT

The moment a person comes into this would, he starts consuming. He needs clothes, milk, oil,
soap, water, and many more things and these needs keep taking one form or the other all along
his life. Thus we all are consumers in the literal sense of the term. When we approach the market
as a consumer, we expect value for money, i.e., right quality, right quantity, right prices,
information about the mode of use, etc. But there may be instances where a consumer is harassed
or cheated.
The Government understood the need to protect consumers from unscrupulous suppliers, and
several laws have been made for this purpose. We have the Indian Contract Act, the Sale of
Goods Act, the Dangerous Drugs Act, the Agricultural Produce (Grading and Marketing) Act,
the Indian Standards Institution (Certification Marks) Act, the Prevention of Food Adulteration
Act, the Standards of Weights and Measures Act, etc. which to some extent protect consumer
interests. However, these laws require the consumer to initiate action by way of a civil suit
involving lengthy legal process which is very expensive and time consuming.
The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to
redressal of consumer grievances. The Act for the first time introduced the concept of
‘consumer’ and conferred express additional rights on him. It is interesting to note that the Act
doesn’t seek to protect every consumer within the literal meaning of the term. The protection is
meant for the person who fits in the definition of ‘consumer’ given by the Act.
Now we understand that the Consumer Protection Act provides means to protect consumers from
getting cheated or harassed by suppliers. The question arises how a consumer will seek

1
Competition Commission of India v. Steel authority of India Ltd.2010 98CLA 278 (SC)

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 protection ? The answer is the Act has provided a machinery whereby consumers can file their
complaints which will be entertained by the Consumer Forums with special powers so that action
can be taken against erring suppliers and the possible compensation may be awarded to
consumer for the hardships he has undergone. No court fee is required to be paid to these forums
and there is no need to engage a lawyer to present the case.
Following chapter entails a discussion on who is a consumer under the Act, what are the things
which can be complained against, when and by whom a complaint can be made and what are the
relief available to consumers.

6. CONSUMER PROTECTION : A KEY FACTOR FOR CONSIDERATION

The Act provides for (i) Prohibition of anti-competitive agreements; (ii) Prohibition of abuse of
dominant position; (ii) Regulation of combinations; and (iv) Competition advocacy. An expert
body called Competition Commission of India (the CCI/ Commission) has been established
under the Act, to act as the market regulator. In addition to preventing and regulating anti-
competitive practices, the Commission also perform the advisory and advocacy functions, in its
role as a regulator. In Rajasthan Cylinders and Containers Limited v. Union of India and
Another, the Supreme Court noted as under : ..... whereas on the one hand the economic policy
of the nation has ushered in the era of liberalization and globalization thereby giving free play to
the private sector in the manner of conducting business, at the same time, in public interest and
in the interest of consumers, a regime of regulators has also been brought to ensure certain
checks and balances. Since competition among the enterprises or businessmen is treated as
service for a public purpose and, therefore, there is a need to curb anti-competitive practices, the
CCI is given the task (as a regulator) to ensure that no such anti-competitive practices are
undertaken. In fact, Section 18 of the Act casts a specific and positive obligation on CCI to
eliminate anti-competitive practices and promote competition, interest of the consumer and free
trade.
7. PROHIBITION OF ANTI-COMPETITIVE AGREEMENTS
Section 3 of the Act prohibits all such agreements in respect of goods and services which are
likely to cause an appreciable adverse effect on competition within India. Known as anti-
competitive agreements, they are classified into two parts, namely, horizontal and vertical.

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 Whereas horizontal agreements, which includes activities of cartels and trade associations, are
presumed to be anti-competitive, the vertical agreements are considered to be pro-competitive.
To ascertain if an agreement is likely to have an appreciable adverse effect on competition, the
Commission is required to have due regard to all or any of the parameters listed under section
19(3). One of these parameters is – the accrual of benefits to consumers. 2 An agreement
perceived to be an anti-competitive one may not be objected to, if it enhances the efficiency of
the distribution process or contributes to consumer welfare. In Mr. Ramakant Kini and Dr. L H
Hiranandani Hospital, Powai, Mumbai In Ref, the Commission observed that ‘one of the
avowed objectives of the Act is to promote consumers’ welfare by preventing market distortions
caused by such actions and agreements of the enterprises which militate against the competition
and consumers’ interest. The competition law by its very nature envisages that there are
situations where the Commission has a role and has to control behavior of the enterprises
8. CONSUMER PROTECTION UNDER THE COMPETITION LAW
in the market place in order to achieve consumer welfare Commenting on the indulgence of the
trade associations, the Commission, in “Bengal Chemist & Druggist Association, In Ref”3,
observed as under : When the trade associations indulge in taking commercially sensitive
business decisions on behalf of the entire industry as to whether or not to offer discounts, 24x7
service, free home delivery etc., then competitive forces are not allowed to operate in the market
for furtherance of one’s business. Innovative business practices, superior services, consumer
choice, lower prices, etc., take a back seat and do not become the guiding force for doing
business. Consequently, not only the businesses suffer but irreparable harm is caused to the
consumers. The consumers buy drugs as a matter of necessity to save themselves from suffering
(pain/death). They are deprived of their legitimate right to get medicines prescribed by the
doctors at competitive / cheapest rates by the impugned conduct of the trade association. In light
of the above, it is concluded that the BCDA and its affiliated District/Zonal Committees have
indulged in anti-competitive activities which have caused or is likely to cause appreciable
adverse effect on competition. The activities of the BCDA are in conflict with the objects of the
competition law as they cause restraint of trade, stifle competition and harm the consumers.

2
Section 3 of the Competition Act, 2002
3
Appeal NO. 37 of 2014

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9. CONSUMER PROTECTION UNDER INDIAN LEGAL FRAMEWORK

The growth in independence of world economy and international character of business practices
has contributes to universal pressure on consumer rights, protection, and promotion and
consumer awareness. It is one among the important legislation in history of socio economic
legislations. This comprehensive piece is enacted for protection of consumers and to safeguard
their interests.

The intention of the act is to provide for simple, speedy and inexpensive redressal for
consumers grievances and relief in specific nature and awarding compensation for appropriate
consumer. The act was mended to extend and cover its scope therefore judiciary too plays an
important character in enhancing the powers of redressal machinery for protection of rights of
consumers.

In this era of consumer protection is the greatest concern of the world. The globalization is
defined as converting national market into international one. The consumers should be provided
with best quality products and services. The consumer protection act is developed as
recognition of rights of the consumer protected against abuse and exploitation by service
providers. The idea of consumer protection exists in every judicial and social mechanism
whether modern or primitive.1 In India there is rapid increase of consumer services, goods and
distribution.

Industrial revolution has brought a big change in the human life. Regarding the products used
by them daily in the society of Laissez Faire, State used to intervene in lives of citizens rarely.
There were no good laws to exercise the rights of seller and buyer. There was the principle of
“Caveat Emptor” that is let the buyer beware was the rule in those days. The consumers were
exploited and abused by traders for making of profit at every point. In 1985 a resolution was
passed by UN General Assembly focusing on need for educating the consumers. It laid various
guidelines for betterment of consumers. Such guidelines were stimulating legislation
framework for all the countries.

In India, it is the Consumer Protection Act of 1986. The result of the enactment could be traced
by identification of consumer rights, giving cost effective and speedy redressal. 2 The basic aim
of the act is to protect interests of consumers. To help address the new set of

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 challenges faced by consumers in the digital age, the Indian Parliament passed the landmark
Consumer Protection Act, 2019 which aims to provide timely and effective administration
and settlement of consumer disputes.

Consumer protection laws in india

In India we have consumer protection in various administrative activity of local

authorities. Along with growth and strengthening of the movement, special laws in this area
began in 1980s.it was followed by enactment of an act known as Consumer Protection Act,
1986.it comprises a wide area of legislation with specified boundaries and parameters. The
enactment includes no. of legislations dealing to consumer protection.

Constitutional Law-

In it no explicit law is given but many provisions are given which directs the provisions towards
consumers’ interests. Generally they are DPSP. Under sub clause (g) of article 19 freedom of
profession, trade etc is ensured by state and a citizen cannot be prevented. But anyhow under
article 19(2) no such right could be enforced in case where business is illegal or
dangerous .Regarding license and permits to carry a business, granting license cannot depend on
absolute discretion of administration and policies have to be laid to discretion and have to be
exercised judicially.

In Dr. Shivarao Shantaram Wagle and Others v. Union of India and Others4, the Supreme
Court followed the same principle when it was invited to issue direction to the government to
forbear from releasing Irish butter for human consumption, which had been imported into India
under the EEC Grant-in-Aid for Operation Food Programme, on the ground of contamination
by Chernobyl nuclear fallout. In the matter the Supreme Court appointed a Committee of
Experts to give its opinion on the question whether milk and dairy products and other food
products containing man made radio nucleus within permissible levels fixed by Atomic Energy
Regulatory Board on 27th August, 1987, are safe and/or, harmless for human consumption".
When the Committee found the butter in question to be safe and harmless for human

4
1998) 2 SCC 115

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consumption, the Supreme Court declined to issue the restrictive orders regarding it release for
human consumption.

The Supreme Court followed in case of Vincent v. Union of India5 directions were imposed
for banning of import export of, manufacture, sale and distributing some drugs which had been
recommend to ban by the Drugs Consultative Committee. Supreme Court held that having
regard to the magnitude, complexity and technical nature of the injury involved in the matter
and keeping in view implications of the total ban on certain medicines it is clearly indicated that
a mere judicial proceeding is not sufficient on determination of such a matter.

Criminal Law-

Section 264 to 267 of IPC, 1860 makes punishable the fraudulent use of weights and measures
and its punishment could be one year imprisonment with fine. Section 272 to 273 of IPC deals
with offences related to public health regarding food adulteration and making and selling
noxious food or drink with punishment of same sentence as previous.

The Supreme Court in case of Sumant Prasad v. Sheojanam6 held that he committed offence
under both as false property as well as selling goods with counterfeit property mark on them.
Chapter 19 of IPC deals with offences of criminal breach of contract of service making it
especially punishable to attend and supply of wants in relevance to consumer’s safety. Who is
incapable to do something because of either unsoundness of mind, youth or disease suffering or
bodily weakness? Section- 153 of Cr. Pc, 1973 gives officer who is in charge of police
station to enter without any sort of warrant in any place within limits of police station for
inspecting or searching weights, used for measuring is kept and have reason to believe that they
are kept for some false purpose and to send that information to magistrate along with all the
seized objects.7

5
(1997) 2 SCC 1
6
1972 AIR 2488

7
Saraf D.N, 1990 in his concept “Law of consumer protection in India”,by N.M Tripathi at 21

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Contract Act
It is an important provision and scope of the act is limited due to privity of contract. So third
party cannot seek redressal the judicial approach could be reflected by English cases like Carlil
v. Carbolic smoke bait Co7.In it the plaintiff on seeing advertisement bout carbolic smoke Ball
a remedy against influenza, purchased it and used according to directions given by defendant.
But he still caught influenza and claimed award offered by the company.

Applying fundamental breach of contract of interests’ court protects thke weaker parties with
unequal power succeeding the exemption clauses. Non contractual liabilities have been given
due place by the court. Section 27 of the act declares agreements restraing trade is void and
serves consumer interest by promoting competition and restricting monopolists. Section 73 and
74 deals with any sort of loss or damage for breach of contract. Alternate remedies are available
under Specific Relief Act, 1963

Drugs and Cosmetics Act, 1940 -

The act was enacted to regulate import, export, distribution and sale of drugs and
to defend the cause and reason of consumer in that area. The pharmaceutical enquiry committee
empowers the Central Government for controlling the drug manufacturers, appointment of
inspectors and taking samples. It provides minimum punishment of one year imprisonment and
fine for misbranded drugs and two year imprisonment with fine for other subsequent offences.
The provision of this act doesn’t apply to medicines especially ayurvedic or unani medicines.
Further the act prohibits drugs and cosmetic manufactures where the risk of therapeutic
justification is involved in favour of public interest.

The Prevention Food Adulteration Act, 1954 -

The Prevention of Food Adulteration Act was enacted and came into force in 1954.the
adulteration of food stuff is evil and menace. It has gone very deep in nation’s economy. It is so
rampant that no changes in the bill can stop such crime. The amendment in the act in 1964
provides for enforcement of provisions of the act by central government to appoint food
inspectors.

The State government make food inspectors from local authority. The act provide broadly-

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 The interest of consumer
 Central committee for food standards
 Central food laboratory
 Prohibition on importing specific food articles Sea custom law
 Powers to custom officers
 Prohibition on importing certain food articles

10.MONOPOLISTIC AND RESTRICTIVE TRADE PRACTICES (MRTP)

ACT, 1969-

The MRTP (Amendment) Act, come into force from 1st August 1984 which opened new areas
for the victims of unfair trade practices. It reflects the Union Government's consciousness of the
widespread fear of the evil aspect which flow from monopoly.

It is the concentration of economic power in the hands of a few. The monopolistic trade
oppresses -

individual traders,

injures the public,

threatens competition,

promotes price control at the will of producers and manufacturers ▪Dampens individual
initiative.

Therefore, the enactment to curb the monopolies and restrictive trade practices is a good
attempt to promote consumerism in India.

11.THE CONSUMER PROTECTION ACT, 1986-

This legislation widens the scope of seeking redressal grievances without affecting common
law remedies. This act is available to government as well as private sectors including

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administration, business, judicial and society. it provides for adoption of measures to promote
and protect consumers interests against marketing of hazardous goods affecting life and
property. The consumers have right to be informed about goods quality, quantity price, standard
and services. The Act also provides for the establishment of separate machinery for the
settlement of disputes in a speedier and effective manner. The machinery is based on
Consumer Disputes Redressal Forum (District level), Consumer Disputes Redressal
Commission (State Commissions) and the National Consumer Disputes Redressal Commission
(National Commission).

The principles of consumer jurisprudence have been evolved timely to empower consumers
to stand against exploitation by business houses that seek protection from defective goods as
well as deficiency in service.

A bill was drafted and discussed on January, 1986. The Act promotes and protects the
rights of consumers like -

• Right to be protected against marketing of goods who are hazardous to

life and property;

• Right to be informed about the quality, quantity, potency, purity, standard and
price of goods to protect the consumer against unfair trade practices;

• Right to be assured, wherever possible, access to an authority of goods by

competitive prices

• Right to be heard and to be assured that consumer' interests will receive due
consideration in forum;

• Right to seek redressal against victim of unfair trade practices or unscrupulous

exploitation of consumers

• right of consumer to get education.

For achieving quicker disposal and widening of scope consumer protection act was
amended in 1991 and 2002 which provided for-

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 Creation of benches at national & state commission
 Prescribing period of complaints admission notice issuing and appeals to be decided
 Restriction of adjournments
 Increasing pecuniary jurisdiction at consumer forums
 Fees charging for complaints before consumer dispute redressal agencies
 Deposition of fifty percent of amount as compensation or fine before admission of appeal
 Excluding the availed services for commercial purpose in consumer dispute redressal agencies
 Prescribe qualifications of members of agencies
 Re appointment of president and member in district and national commission for another
term
 Extending provisions of the act for whom indulging in unfair trade or restrictive practices
which could be harmful
 Recovering the amount of order paid to consumer redressal system as arrears of revenue
of land and interim order issued considered necessary
 Substitution of legal heir and representative of the party in case of death of either party to
the suit
 Establishing consumer councils at district, state and national level
 Development of the act in natural phases along with evolution and scope. 8

12.CONSTITUTIONALITY OF CONSUMER PROTECTION ACT, 1986

One of the basic questions in appeals and writs petitions is the constitutionality of this act
which is filed by Vishwabharti House Building Cooperative Society through a judgment and
orders passed by division bench by high court of Karnataka holding the virus in consumer
protection act, 1986.

The State of Karnataka filed an appeal against judgment and order given by Karnataka high
court which questioned certain observations, and in regards of interpreting section 25 of the act,
and other filed for a writ petition under Article 32 of the Constitution of India questioning the
acts constitutionality before the Hon’ble Supreme Court in the case State of Karnataka v.
Vishwabharti house Building Cooperative Society8. The court also held that by virtue of the

8
AIR 2003 SC 1043

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article 246 clause 2 , the parliament has power to make such laws with due respect to
constitution of organisation of all courts except for Supreme Court and High Court.

The legislature took precaution in not only defining the concept of complaint, who is a
complaint, or a consumer. In the case of Spring Meadows Hospital v. Harjol Ahluwalia9 a
question for consideration was raised in Supreme Court. In this case a minor child who was a
patient was admitted to hospital for treatment. So the parents of the child could be said to be
consumers in this case who can claim compensation under the provision of consumer protection
Act. Another question was that whether commission under the act can award compensation to
parents for mental agony under section -14 of the act and does the term child and his parents
comes under the definition of consumers in the act or not? It was held that a person who
purchases goods for resale or commercial purpose is excluded from consumers definitions.

The Supreme Court in the case of Laxmi Engineering Works v. P.S.G Industrial
Institute10discussed the meaning of the term commercial purpose and observed that in cases
of resale it separately refers to it, it covers all the cases other than the resale ones of the goods
concerned.

The word commercial purpose is wide enough to consider all including goods generated for
profits. The Parliaments intention was to exclude the expression ‘consumer’ as any person who
purchases goods for the purpose of being used in an activity on large scale for profit making.

It is very much obvious that Parliament wanted to exclude from the scope of definition to those
who purchase goods for profit making activity the Parliament also intends to restrict the benefit
of the act to just ordinary consumers who are purchasing goods either for their own or for use in
small ventures to be used in making a living which is very much different from large scale
manufacturing or processing activity for carrying out profit.

The term contract of service and contract for service or contract for personal service were
excluded terms from definition of service.

9
19984 SCC 39
10
1995 AIR 1428

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The Supreme Court differentiated the terms ‘contract of service’ and ‘contract or service’. In
Dharangadhara Chemicals works ltd. v. State of Saurashtra11 by saying that ‘a contract for
service’ implies that one party should undertakes to the services rendered either technical or
professional to or others in performance of which he is subjected to a detailed direction by
practicing his personal or professional skills and also using his own knowledge along with
discretion. A contract of service implicates a relationship between a master and servant. It also
involves an obligation for obeying orders in the work which is to be performed by him and also
along with mode of performance and manner to performance for the action which is going to be
performed by him.12

13.THE COMPETITION ACT, 2002

The Competition Act, 2002 is a law that governs commercial competition in India. It replaced
the erstwhile Monopolies and Restrictive Trade Practices Act, 1969. The Competition Act aims
to prevent activities that have an adverse effect on competition in India.

The Monopolies Inquiry Commission was established in April 1964 under Justice KC Das
Gupta, a Supreme Court judge. The objective of the commissions was to inquire about the
effect and extent of monopolistic and restrictive trade practices in important sectors of the
Indian economy. The Monopolies and Restrictive Practices Act of 1969 was enacted to limit the
concentration of wealth in a few hands and limit monopolistic practices, but it was too archaic
in its definitions of what is a ‘monopolistic practice’. Thus, it was decided that a new law
governing competition in India was required.

The Competition Act was passed in 2002 and went into effect on January 13, 2003. The act’s
objectives are stated in its preamble, which states that the act will establish a Commission

(the Competition Commission of India) to prevent anti-competitive practices, promote and

sustain competition in the market, protect consumers, and ensure the freedom of trade carried
on by other market participants. Anti-competitive agreements, abuse of dominant position, and
mergers and acquisitions are among the three anti-competitive practices regulated by the Act
(Combinations).

11
AIR 1957 SC 264
12
https://hpconsumercommission.nic.in/juris.htm

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The key criterion for anti-competitive practices regulation is that they should not have a
significant negative impact on competition within India. Section 3 of the Act defines anti-
competitive agreements and divides them into two categories: horizontal agreements and
vertical agreements. It stipulates that all anti-competitive agreements that have the potential
to have a significant adverse effect on competition in India are void, subject to the exceptions
set out in section 3(5). Section 4 discusses issues of abuse of dominant position and provides a
list of activities that may be considered abuse of dominant position.13
14.CONSUMER PROTECTION ACT, 2019
The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister of Consumer
Affairs, Food and Public Distribution, Mr. Ram Vilas Paswan on July 8, 2019. The Bill
replaced the Consumer Protection Act, 1986. It comes into force from 20th July 2020.14
Key features of the Bill included:
Definition of consumer: A consumer is defined as a person who buys any good or avails a
service for a consideration. It does not include a person who obtains a good for resale or a good
or service for commercial purpose. It covers transactions through all modes including offline,
and online through electronic means, teleshopping, multi-level marketing or direct selling.

Rights of consumers: Six consumer rights have been defined in the Bill, including the right to:
(i) be protected against marketing of goods and services which are hazardous to life and
property; (ii) be informed of the quality, quantity, potency, purity, standard and price of
goods or services; (iii) be assured of access to a variety of goods or services at competitive
prices; and (iv) seek redressal against unfair or restrictive trade practices.

Central Consumer Protection Authority: The central government will set up a Central
Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of
consumers. It will regulate matters related to violation of consumer rights, unfair trade
practices, and misleading advertisements. The CCPA will have an investigation wing, headed
by a Director-General, which may conduct inquiry or investigation into such violations.
CCPA will carry out the following functions, including: (i) inquiring into violations of consumer

13
https://www.legalraasta.com/blog/competition-act-2002/
14
https://pib.gov.in/PressReleasePage.aspx?PRID=1639925

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rights, investigating and launching prosecution at the appropriate forum; (ii) passing orders to
recall goods or withdraw services that are hazardous, reimbursement of the price paid, and
discontinuation of the unfair trade practices, as defined in the Bill; (iii) issuing directions to the
concerned trader/ manufacturer/ endorser/ advertiser/ publisher to either discontinue a false or
misleading advertisement, or modify it; (iv) imposing penalties, and;
(v) issuing safety notices to consumers against unsafe goods and services.
Penalties for misleading advertisement: The CCPA may impose a penalty on a manufacturer
or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading
advertisement. In case of a subsequent offence, the fine may extend to Rs 50 lakh and
imprisonment of up to five years.

CCPA can also prohibit the endorser of a misleading advertisement from endorsing that
particular product or service for a period of up to one year. For every subsequent offence, the
period of prohibition may extend to three years. However, there are certain exceptions when an
endorser will not be held liable for such a penalty.

Consumer Disputes Redressal Commission: Consumer Disputes Redressal Commissions

(CDRCs) will be set up at the district, state, and national levels. A consumer can file a
complaint with CDRCs in relation to: (i) unfair or restrictive trade practices; (ii) defective
goods or services; (iii) overcharging or deceptive charging; and (iv) the offering of goods or
services for sale which may be hazardous to life and safety. Complaints against an unfair
contract can be filed with only the State and National Appeals from a District CDRC will be
heard by the State CDRC. Appeals from the State CDRC will be heard by the National CDRC.
Final appeal will lie before the Supreme Court.15

Jurisdiction of CDRCs: The District CDRC will entertain complaints where value of goods
and services does not exceed Rs one crore. The State CDRC will entertain complaints when the
value is more than Rs one crore but does not exceed Rs 10 crore. Complaints with value of
goods and services over Rs 10 crore will be entertained by the National CDRC.

Product liability: Product liability means the liability of a product manufacturer, service
provider or seller to compensate a consumer for any harm or injury caused by a defective good

15
https://hpconsumercommission.nic.in/cpa2019.pdf-hp consumer protection act 2019 -

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or deficient service. To claim compensation, a consumer has to prove any one of the conditions
for defect or deficiency, as given in the Act.16

16
https://prsindia.org/billtrack/the-consumer-protection-Actl-2019

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 15. CONCLUSION

The consumer Protection Act, 2019 describes a series of all the consumer rights
established by consumer council at national, state and district level for guiding the state in
giving justice to all consumers but enforcements of consumer rights have been far away from
understanding.

According to the Indian constitution all fundamental rights in IIIrd and IVth part of constitution
providing social and economic justice for poor and SC/ST but still all this people and being
exploited in consumer services. The act contains various rules for protection of consumer rights
through interpreting various laws and provisions of legislation and judicial decisions. The court
by interpreting consumer laws and powers develop the district forum and commissions as basic
tool in bringing social change and protecting the rights. But for redressing almost remedial
measures would have attracted public. The perception of consumers about the legal system is
that it is a time taking process. So it discourages them from redressing by judicial process and
consumer protecting mechanism. People find it easier to compromise. Even there are many
people who don’t know its procedure.

Some legislation on issues relating to consumers of electronic goods should be formulated

and updated through provisions of all the consumer laws. It was hoped that consumer
protection Act of 2019 covered a wide area than the act of consumer protection act of 1986 in
accordance to protection of all consumer rights.

Fair competition is key to consumer welfare. Commenting on the duties of the Commission, the
Supreme Court commented in Rajasthan Cylinders and Containers Limited v. Union of India
and another 11 that ‘it is the duty of the CCI to ensure that the conditions which have tendency
to kill the competition are to be curbed. It is also the function of the CCI to ensure that there is a
competition so that benefits of such competition are reaped by the consumers’. By stimulating
the process of competition between the enterprises, the robust competition regime helps in
creation of the healthy competition culture in the market. A well-informed and well-functioning
market ensures ongoing innovation, easy access, reasonable switching costs, freedom of choice,
greater availability of goods and services at lower prices resulting in the consumer welfare

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