In the society, we always play a part as a consumer regularly when we indulge in activities relating to it. But the question arises that when we are a consumer, are we safe? Do we have some rights to exercise? Do we have some protection by the statutes? This research paper solely aims to research on those aspects of the statutes and law which covers all the details we should know as a consumer. First of all, we have to start with who is a consumer? The consumer is any person who buys and consume goods from the seller in exchange of the money available to him/her in the market. A consumer means individual or group of individuals who bus any goods or hire any service for their own personal use and not for resale. Impartial and unreasonable terms on a consumer agreement, unfair trade practices, disputes of consumers, consumer education, consumer atrocity, fake labelling of price tags and poor-quality products and damaged products are the arena where consumer protection plays a very active role. Our Indian legislature has been enacting statute, i.e. The Consumer Protection Act, 2019, to protect consumers for the atrocities, define their rights and make a market safer place for them.
Keywords:
consumer, seller, Consumer Protection Act,2019, goods and services, rights, commissions, redressal, statutes
Introduction:
A consumer is person who buys goods or hire any service for his/her personal use. The consumer is defined under Section 2(7) of the Consumer Protection Act 2019. Consumer is believed to be the last owner of the goods being purchased and the goods is bnot for any type of manufacturing or resale. The unfair trade practices, disparities in consumer agreement between the parties , fake labelling and price tag and disputes between consumer and seller are the some common disputes that can be seen in every day life. Hence, there is a need of law for consumer protection which aims to protect the consumers from these atrocities.
The need for protecting the rights of consumer has embark the introduction of many statutes in the Indian legislature. The enactment of Consumer Protection Act, 1986 gave us a perfect definition of consumers and their rights. The statutory recognition of The Consumer Protection Act, 1986 gave us the statement i.e. “Consumer Is the King”. But, the 1986 underwent many amendments and in the end, legislature felt the need of new statutes rather than mere amendments which were not capable of fulfilling the interest of consumer. In the succession of The Consumer Protection Act,1986, the new Act was notified on 20th July 2020. The
Research Methodology:
This paper is of the descriptive and analytical nature, having its base from both primary and secondary source. The primary sources include statutes and rules, The secondary sources are inclusive of online journals, blogs and cited websites.
Review Of Literature
This paper aims to provide a detailed description of our rights as a consumer in the society and to make us aware for preventing us from the misleading practices which prevails in the society. The literature like journals and blogs cited in this paper gives us a very detailed and informative aspect to the Consumer Protection Act,2019. These sources open the new avenues for making us aware of our rights as a consumer as well as how can we enforce our rights in the disputes. The complex relation that exists between seller and consumer has gained a peak attention from the government of India from mid 1980s. The thorough examination of law indicates a involved and inclusive grasp of issues, framework of the laws relating to the dispute and dynamics that define the relationship between consumer and seller.
In the publication on “Consumer empowerment: protecting, rights, and obligations” by Dhruv Kumar, the author clearly gives us a very systematic and detailed analysis of Consumer Protection Act,2019. Whole article revolves around on the act and it conveys us the different responsibilities, rights and relief s that have been put on the shoulders of consumer and seller at the same time under the Consumer Protection Act, 2019. The major aim of the bill was to ensure the interest of the buyer and give them a quick redressal to the dispute. Although, every practical implication of the law takes its own course that is neither decided nor expected by the legislatures.
In the article very well authored by Abanti Rose, “Consumer Protection Act,2019” discusses the detailed objectives, essential provisions, changes incorporated and landmark case laws under the Consumer Protection Act. It says that Consume Protection Act, 2019 is a developed piece of legislation that offers the consumer a great variety of benefits and rights to protect them form unfair trade practices, false or misleading advertisement. It also opens the doors of speedy and effective settlement of consumer disputes by enabling them to the alternative dispute resolution and mechanism and mediation.
The case laws mentioned in the research paper are highly informative and is from primary as well as secondary sources. They constitute the application rights granted to consumers in a practical way and how the laws are interpreted while giving the remedy to the consumers in their disputes.
Consumer Protection Act, 1986:
Consumer Protection Act, 1986, was a landmark legislation enacted by Indian Parliament which basically aimed to safeguard the interest of consumers in the country. A framework for protecting the interest of consumers form unfair trade practices, defective goods sand services, and ensuring their rights was established from the Act. The main objectives f the the Act was to provide better facilities of protection to the consumer interest and to establish the consumer councils and other authorities for dispute settlement.
The Consumer Protection Act,1986, empowered Indian consumer consumers and provided them with a mechanism to fight against the unfair and malpractices. It played a very important role in promotion of fair competition in the market place, to encourage the business be accountable for the quality of their products and services and also raised the awareness among consumer and educating them about the right they have under the act.
Going further in the paper we will know more about the rights of consumer, protection they have under this Act and how the act established the redressal mechanism for the consumers in the country. The Act was repealed by the new Consumer Protection Act, 2019 which addressed the shortcomings of the 1986 act. While the 1986 Act is no longer in effect, the provisions mentioned under the act provides a valuable insight into the historical development of consumer rights in India.
Consumer Protection Act 2019:
Consumer Protection Act ,2019 is successor of the 1986 Act. In the year 2020, 20th July, this new act came into force. Within this new Act, several facets are found to ben completely up to date which straightway reflects the power of review by the consumer courts themselves and aos by the consumers, appeal on [point of law by wither of the consumer or through the provision of public interest litigation, power to form and hold agreements and focuses on liability of the service and good providers toward the market and consumer explicitly. The result of the new Act , the consumers have a lot of choices which help them to get their lives better personally as well as professionally which were not covered in the Consumer Protection Act, 1986.
The rights, redressal mechanism and sellers’ liabilities are not amended in the new Act but what is changed that the new act enabled the e-filling of complaint. The chapter number five has been introduced that mainly deals with the provisions of mediation. Before approaching the court of law, both the parties will be called upon of resolving their disputes by adopting the methodology of mediation through a mediation lawyer or the mediator as commonly said.
The research paper in the coming topics will tell you more about the differences between the 1986 Act and 2019 Act. First of all lets dive into the rights of Consumer granted by The Consumer Protection Act ,2019.
All the rights mentioned down below are empowered to the Consumer by the Consumer Protection Act, 2019. They can be listed as follows:
Right To Safety
- The Section 2(9)(ii) of the Consumer Protection Act, 2019 grants every consumer a legal right to be protected from those goods and services that endanger his life and property. The power to fulfil longer interest of every product is also pertinent to consider. It should be kept in mind that the right to safety not only ensures the standard quality of a good at the moment of purchase but also to serve the long term expectations of the consumer. The labels of ISI ( Indian Standard Institute) or AGMARK ( Agriculture Market) is a perfect example of ways to ensure the quality if the goods which guarantees that quality.
Right To Be Informed
- According to Section 2(9)(ii) of the Consumer Protection Act, 2019, every consumer has a legal right to be informed concerning all aspects of goods, products, or services, relating to the quality and quantity , as it case may be. The right is given to consumers to protect them for unfair trade practices which are a very common practice in the marketplace.
- The provisions mentioned under Right to Information Act, 2005 guaranteed any consumer the right to obtain information against any public authority which is dealing with the selling of products or the rendering services. This sets a perfect example of right to be informed enshrined by the Act.
Right To Choose
- The Section 2(9)(iii) of the Consumer Protection Act, 2019, gives every consumer a right to choose which guarantees access to wide range of goods and services that are of good quality and at reasonable prices wherever possible. This was introduced especially for the case of monopoly kind of market.
- This right can be exercised by the consumer in the market where there is an imperfect competition. The right to choose between different products according the quality that consumer wants or in convenance to the earning of the consumer. This privilege gives consumer a sense of satisfaction in the marketplace. In these circumstances, even retailer or seller can not put any type of pressure on the consumer.
Right to be Heard
- The right to be heard is provided under Section 29(iv) of the Consumer Protection Act,2019. This right safeguard the interest of consumers from the malpractices of market and ensures that every consumer gets an effective and proper redressal to their dispute. With the enforcement of this right, the interest f the consumer will be adequately and fairly taken into account in relevant forums.
- The government of India established consumer forums at different level to address the consumer complaint and grievances by the virtue of the provisions of Consumer Protection Act,2019. Both the State and the non-profit organizations are expected to incorporate these essential forums for the enforcement of this particular right.
Right to seek redressal
- The right to seek redressal is enshrined under the Section 2(9)(v) of the Consumer Protection Act,2019, which gives consumer an opportunity to file a complaint against unfair trade practices or the unethical exploitation of consumers by the sellers or service providers. Discontented consumers can lodge a complaint before appropriate courts, provided that the complaint is genuine, and can seek redress for the loss suffered from the transaction by him or them. This right also ensures the recovery of all the monetary damages suffered by consumer during the purchase of goods that later turned out to be damaged or defective.
Right to Consumer Education
- Consumer education plays a very important role in protecting of the consumer. Section 2(9)(vi) of the Consumer Protection Act clearly ensures the right which allows consumer to have a freedom to develop the knowledge and skill necessary to make wise and informed decision as a shrewd consumer. In the consequence of this right, it becomes the responsibility of the government to inform consumers about their rights, rase awareness among consumers and try to reach to the areas where consumers are little or not aware of these rights.
These were the main rights incorporated in the Consumer Protection Act, 2019.These rights are the basic rights granted to every consumer to protect him for unfair trade practices, market atrocities.
CONSUMER PROTECTION COUNCILS
Till now, in this paper, we have seen what are the different statutes enacted bu Indian Legislature for protection of consumers and what rights are conferred upon us by those statutes. Now, we are going to see the establishment of the authorities for the protection of the consumers.
The Consumer Protection Act,2019 established the consumer protection councils at different level in the country which gives the redressal to the consumers. Those can be classified in these levels:
Central Consumer Protection Council:
- Pursuant to Section 3 of Chapter 2 of the Consumer Protection Act, 2019, the Central Government shall establish a Central Consumer Protection Council.
- The composition of the council is: (i) The Minister-in-charge of the Department Consumer Affairs in the Central Government shall serve as the Chairperson of the Central Council. (ii) The Central Council shall comprise such number of official and non-official members as the Central Government may deem necessary to represent the interest contemplated by the statute.
- The main function of the Council granted by the Act is to promote and safeguard the interest of consumers as envisaged under the statutes.
- The Act states that the council shall convene meetings at such intervals as it deems necessary, provided that it shall meet at least once annually.
State Consumer Protection Council:
- The Act states that each State Government shall establish a State Consumer Protection Council with the jurisdiction empowering to the territorial boundary of its respective State. The State Council shall function in an advisory capacity.
- Additionally, the Central Government may appoint not fewer than ten members to the State Council for the purposes of the Act. The State council shall convene meetings at least twice annually. The state council shall consist: (i) The Minister-in-charge of the Consumer Affairs in the State government shall serve as the Chairperson of the State Council. (ii) The State Council shall comprise such number of official and non-official members as the State Government may deem necessary to represent the interest contemplated by the Act
District Consume Protection Council:
- According to Section 8 of the Consumer Protection Act,2019, the State Government shall establish a District Consumer Protection Council for each district within its jurisdiction. The district council will consist of: (i) The Collector of the district shall serve as the Chairperson of the District Council and (ii) The District Council shall comprise such other members as the State Government may determine, representing interested envisaged under the Act.
Central Consumer Protection Authority
The Section 10 of the Consumer Protection Act, 2019 gives power to the central government to establish a Central Consumer Protection Authority known as Central Authority. The chief commissioner and the other commissioner of the authority will be appointed by central government. The main chore of the authority is to regulate matters relating to the violation which is against the rights of consumers by committing unfair trade practices and false or misleading advertisements.
Consumer Disputes Redressal Commission
The Act provides a power to the State Government to establish a district consumer disputes redressal commission, know as District Commission in each district. The composition of District Commission shall be a President and not less than two members prescribed by the Central government. Section 34 of the Act grant the District Council a power to entertain the disputes and complaints where the value of goods or services paid as consideration does not exceed one crore rupees. Section 36 enacts that all the proceedings before the District Commission shall be conducted in the presence and by the President and at least one member of the commission.
Mediation
Chapter 5 Section 74 of the Consumer Protection Act gives power to the Central Government as well as state government to establish a Consumer Mediation Cell at each levels respectively with a condition that the State cell will exercise its power over the jurisdiction of that state. The mediator nominated to carry out the mediation shall conduct it within the such time and in such manner as may be specified by regulations. The empanelment, eligibility, fees, qualifications, terms and conditions to be a mediator are mentioned under Section 75 of the said Act.
These were the ways in which the Consumer Protection Act empowers the consumer and gran them protection in the theoretical way. Now let’s continue for some Case laws which will convey us the real implication of Consumer Protection Act,2019.
CASE LAWS
- M/S Imperia Structures Ltd. Vs. Anil Patni 1
On November 2, 2020, the Supreme Court of India dismissed an appeal challenging the jurisdiction of the National Consumer Dispute Resolution Commission (NCDRC) to hear a complaint. The appeal arose from a dispute concerning registration under the Real Estate Regulation Act (RERA).
The Court held that the Consumer protection Act, 2019 provides additional remedies beyond those available under other legislations, including RERA. The existence of an alternative remedy does not preclude recourse under the Consumer protection Act,2019.
Furthermore, the Court imposed a cost penalty of Rs.25,000 on the complainant trust for engaging in frivolous litigation. The penalty is to be paid to HDFC Bank.
- Veena Khanna Vs Ansal Properties & Industries Ltd. 2
The National Consumer Dispute Resolution Commission (NCDRC) overturned an order issued by the State Commission. The NCDRC held the a mere refund of the purchase amount with bank rate interest does not constitute adequate compensation for builders’ delay in completing a flat and failing to deliver possession.
The NCDRC observed that the delays in construction and subsequent decision making have rendered it practically impossible for the consumer to purchase a comparable flat at the current market price.
The NCDRC concluded that the payment of interest alone is inadequate compensation in such circumstances.
- Karnataka Power Transmission Corporation vs. Ashok Iron Works Private Limited3
The Supreme Court Of India ruled in favor of Ashok Iro Works Private Limited in its dispute with the Karnataka Power Transmission Corporartion (KPTC). The judgement upheld the company’s financial claim of compensation arising from KPTC’s delay in supplying electricity.
The court’s decision hinged on its interpretation of key terms within the Consumer Protection Act, 2019. Specifically, the court held that:
- Private Corporations qualify as “persons” under the Consumer Protection Act.
- The supply of electricity constitutes a “service” as defined by the Act.
This interpretation allows consumers, including private companies, to file complaints regarding deficiencies in such services with consumer redressal forums established under the Consumer Protection Act.
- Indian Medical Association vs. V.P. Shantha & Ors 4
A three-judge bench of the Supreme Court of India held that medical services provided by a healthcare professional, encompassing consultations , diagnoses, and treatment ( both medical and surgical), fall within the purview of “service” as defined under Section 2(1)(o) of then Consumer Protection Act,1986.
The Court Further clarified that the determination of a “deficiency in service” within the context of medical care hinges on the application of established legal test of “reasonable skill and care” employed in negligence lawsuits.
These are some of the judgments which show us the importance of Consumer Protection Act, 2019 and how the act is capable of protecting our right as a consumer.
SUUGESTION AND CONCLUSION
The Consumer Protection Act,2019 is an amended legislations that offers the consumer the rights and benefits to protect them from the unfair trade practices, misleading advertisements, etc. . The Act also defines a path of redressal the disputes of consumers by providing the mechanism of alternative dispute resolution and mediation. The ways mentioned earlier are more effective and speedier in nature as compare to the traditional methods. Even the introduction of e-filling of complaint also sets a very advanced step to the protection of consumers. These mentioned provisions are the lacunae of the previous Consumer Protection Act 1986. Despite of these introductions, the buyers are still unaware of the fact that they have these rights enshrined in the statutes. More and more awareness programs to the rural areas, which are mainly uneducated of these rights, can only increase the implementation of this Act.
My Name – Ayush Kumar Sinha
College Name – Heritage Law College, Kolkata
REFERRENCES
Websites :
- Pujari Dharani, Consumer protection laws in India, February 15,2023
- Abanti Bose, Consumer Protection Act, 2019, April 29,2022
- Dhruv Kumar, Consumer empowerment : protection, rights, and obligations, December 13,2021