Abstract
“The interest of the consumer has to be kept in the forefront and the prime consideration that an essential commodity ought to be made available to the common man at a fair price must rank in priority over every other consideration.”[1] – Y.V. Chandrachud, J. in Prag Ice & Oil Mills v. Union of India
Consumers in India are the backbone of economy as they purchase and helps market to extent their limits in global arena also. But still in today’s world of ascendant market economy consumers rest as the marginal groups and are extensively exploited by the Sellers. The words of Mahatma Gandhi “Consumer is the king” seems becoming fatal in its nature as consumers are suffering from various issues in market like unfair trade practices, fraud , misrepresentation, Adulteration , imposing an overindulgence price, etc. Thus, Consumer Protection is a need of hour to protect the rights and liberties of consumers. Consumer Protection is the exercise of protecting consumers from unfair or misleading business execution. Consumer protection measures are often enacted as statutory law or regulation. They may also be promoted through self-regulation by industry groups, consumer organizations, and private attorneys general.
Common consumer protection measures include prohibiting false or misleading advertising, mandating disclosure of material information, and establishing rules for unfair or deceptive business practices. Consumer protection statutes may also provide for private rights of action, allowing consumers to sue for damages or injunctive relief.
Keywords
Consumer Protection Act, Consumers, Rights, Duties, Councils, Authorities, Commissions.
Introduction
The Consumer Protection Act, 2019 is an act of the Parliament of India enacted in 2019. It replaces the Consumer Protection Act, 1986. The Consumer Protection Act, 2019 is an Act to provide for better protection of the interests of consumers and for that purpose, to establish authorities for timely and effective administration and settlement of consumer disputes.It contains provisions for the prevention, investigation and settlement of consumer disputes.It shall apply to all goods and services except the goods and services which are not covered under the scope of any other law for the time being in force.
This Act provides for the establishment of the Central Consumer Protection Authority (CCPA) at the central level and State Consumer Protection Authority (SCPA) at the state level to protect the rights of consumers and to promote and protect the interest of consumers, as a class.
The CCPA shall be headed by a Chief Commissioner who shall be assisted by one or more Commissioners. The SCPA shall be headed by a State Commissioner who shall be assistedby one or more Deputy Commissioners.
The Act provides for the establishment of Consumer Disputes Redressal Commissions (CDRCs) at the District, State and National level to hear and dispose of consumer disputes.[2]
The Consumer Protection Act, 2019 is an act of the Parliament of India enacted in 2019. It replaces the Consumer Protection Act, 1986.
Research Methodology
This research paper aims to present the importance of Consumer Protection Act and consumer rights in their day to day life. For this research paper, primary source of information (The Consumer Protection Act, 2019); secondary sources of information such as journals, news articles, blogs and verified websites are used.
Who is a Consumer ?
According to the Section 2(7) of The Consumer Protection Act, 2019, A Consumer is a person who buys some goods or hires/availes servicers for consideration which has been already paid or is partly paid or is partly promised to be paid, and any other person/user/beneficiary of such goods is a consumer, who has consumed for personal use rather then any commercial purpose.[3]
Or
A consumer is an individual who purchases products or services for personal use.
The act covers all the brought goods and hired/availed services including banking, e-commerce, telecom, insurance, electricity, transportation , etc.
Problems Faced By The Consumers – There are numerous problems which are faced by the consumers when it comes to purchasing a product such as :-
- Adulteration
- Lack of knowledge regarding products
- Exploitation by sellers
- Unfair Contract
- Unfair Trade Practices
- Restrictive Trade Practices
- Deficiency in hired or availed services
- Defect in the bought goods
How to file Complaints – Section 17 of CPA, 2019 provides that all the complaints relating to the violation of consumer rights or unfair trade practices or false or misleading advertisements which are of subject-matter to the intrigue of consumers as a group can be redirected to the District Collector or the Commissioner of the regional office or the Central Authority either in writing or in electronic mode.[4]
Rights of Consumers under The Consumer Protection Act- The Consumer Protection Act protects the rights of consumers by providing them with a mechanism to file complaints against businesses that engage in unfair or deceptive practices. The Act also requires businesses to disclose certain information to consumers, such as the terms of warranty coverage. Finally, the Act provides for penalties and remedies against businesses that violate the law .According to the Section 2 (9) of The Consumer Protection Act,2019[5]these are the following rights of consumers:
- The right to be protected against unfair trade practices, products or services which are hazardous to life and property;
- The right to be learned about the standard, purity, etc;
- The right to be assures about a product or service at a reasonable prices;
- The right to be heard and to be assured that consumer complaints will receive prompt and fair consideration and response;
- The right to seek atonement against unfair trade practices or restrictive trade practices;
- The right to consumer education/Awareness.
The Act provides for the following duties of manufacturers, sellers, service providers and traders:
- To disclose all information about the quality, quantity, potency, purity, standard and price of goods or services;
- To adopt fair trade practices and not to resort to restrictive trade practices
- To provide for facilities for the atonement of consumer complaints;
- To provide for pre-deposit of amount not exceeding ten percent of the value of goods or services, as may be prescribed, in respect of complaints relating to defects in goods or deficiency in services.
The Act provides for the following remedies to consumers[6]:
- Replacement of defective goods;
- Refund of the price paid;
- Repair of defective goods;
- Compensation for loss or damage caused by defective goods or deficiency in services;
- Withdrawal of hazardous goods from being made available to consumers;
- Ceasing of manufacture or production of hazardous goods;
- Payment of interest, at such rate not exceeding twice the bank rate, as may be notified by the Central Government, on the refund of price paid, where the goods ordered are not delivered within the prescribed time;
- Removal of defects in goods;
- Rectification of defects in services;
- Refund of charges paid in respect of defective services;
- Payment of compensation, not exceeding five lakh rupees, to a consumer for any loss or damage caused by unfair trade practices or restrictive trade practices;
- Punishment for contravention of the provisions of this Act or the rules made there under with imprisonment for a term which may extend to two years, or with fine which may extend to ten lakh rupees, or with both;
- Punishment for false or misleading advertisement with imprisonment for a term which may extend to two years, or with fine which may extend to ten lakh rupees, or with both;
- Imposition of penalty, by order, on a manufacturer, seller, service provider or trader, who is convicted of an offence punishable under this Act, of an amount which may extend to ten lakh rupees;
- Cancellation of registration granted to a manufacturer, seller, service provider or trader, who is convicted of an offence punishable under this Act.
The Act provides for the following powers of the Central Consumer Protection Authority[7]:
- To issue an order to a manufacturer, seller, service provider or trader to cease and desist from carrying on any unfair trade practice or restrictive trade practice;
- To recall any dangerous goods from being made available to consumers;
- To issue an order to a manufacturer, seller, service provider or trader to refund the price paid by a consumer for the purchase of any goods which are found to be defective;
- To issue an order to a manufacturer, seller, service provider or trader to pay compensation to a consumer for any loss or damage caused by unfair trade practices or restrictive trade practices;
- To impose a penalty, by order, on a manufacturer, seller, service provider or trader, who is convicted of an offence punishable under this Act, of an amount which may extend to ten lakh rupees;
- To cancel the registration granted to a manufacturer, seller, service provider or trader, who is convicted of an offence punishable under this Act.
Features of The Consumer Protection Act, 2019.
S.No. | Basis | Consumer Protection Act, 2019 |
1. | Regulator | Central Consumer Protection Authority is formed under it. |
2. | Consumer Court | All The complaints will be filed in a consumer court from anywhere or from where the complaint himself resides. |
3. | Jurisdiction | District Commission- up to 1 Crore State Commission – 1 Crore to 10 Crore National Commission – Above 10 Crore |
4. | Mediation | Courts can refer complaints to mediation cell defined under Section 74 of The Consumer Protection Act, 2019. |
5. | Product Liability | Consumer Can Seek compensation if he suffers any harm caused by a product or services. |
6. | E- Commerce | All the transaction of E- commerce will also come under the provisions as of direct selling. |
7. | Video Conferencing | Consumers can seek hearing through video conference. |
Cases
Some of the case laws of the Consumer Protection Act, 2019 are as follows:
1.) In Chairman, Tamil Nadu Housing Board v T.N. Ganapath[8], the Supreme Court held that the interest of the persons on whose behalf the claim is brough must be common or they must have a common grievance which they seek to ge addressed. The defect or deficiency in the goods purchased, or the services hired or availed of by them should be the same for all the consumers on whose benefit the complaint is filed. Therefore, the oneness of the interest is akin to a common grievance against the same person.
2.) In Harish Uppal v. Union of India [AIR 2003 SC 739][9] the Supreme Court Observed. “The law is well settled. It is the duty of every Advocate who has accepted a brief to attend the trial, even though it may go on day to day for a prolonged period. It is also settled law that a lawyer who has accepted a brief cannot refuse to attend the court because a boycott call is given by the Bar Association. It is settled law that it is unprofessional as well as unbecoming of a lawyer who has accepted a brief to refuse to attend court even in pursuance of a entitle for strike or boycott by the Bar Association or the Bar Council….
It is held that if a lawyer, holding a Pleading of a client, abstains from attending court due to a strike call, he shall be personally liable to pay costs which shall be in addition to damages, which he night have to pay to his client for loss suffered by him.”
3.) In Srimati and Others v. Union of India and others [AIR 1996 Mad. 427][10], it has been held that negligence by advocate can be complained in consumer forums and compensation claimed for the loss caused.
4.) In Indian Airlines v. Shri Rajesh Kumar Upadhyay [1991 (1) CPI 206 (NC)[11], it was held that delay was not necessarily a deficiency in service since it may be due to several reasons such as bad weather. poor visibility due to smoke etc., which are beyond the control of airlines.
Conclusion
The Consumer Protection Act 2019 is a new law that strengthens consumer rights and protects consumers from unfair and misleading practices. The Act comes into force on 1 July 2019.
The Act contains a number of new rights for consumers, including the right to:
– Be treated fairly by businesses
– Be given clear and accurate information about products and services
– Have their privacy protected
– Have their consumer rights explained to them
– Seek redress if they are treated unfairly or their rights are breached.
The Act also establishes a new regulator, the Consumer Protection Commission, to enforce the Act and protect consumers. Thus, The Consumer Protection Act, 2019 is one of the most important law forum which is precisely effective in its nature , which really helps consumers in protecting their rights and safeguarding them from any sort of harm caused by a product or services. This act proves his consumer as a real king of market and is protected from any malpractices. This Act also empowers consumers to seek Alternative Dispute Resolution forums and Mediation Cell.
Name – Chitrangda Singh
Year – 2nd year (4th semester)
College Name – Rajasthan School of Law for Women, Jaipur
References
1.) The Consumer Protection Act, 2019.
2.) Bangia, R. K. (2022). Law of Torts With Consumer Protection Act. Allahabad Law Agency.
3.) The Law Of Torts And Consumer Protection [ Edition 2020-2021]. (n.d.). Asia Law House.
4.) Admin (2022) Consumer rights in India, WELKIN LEGAL. Available at: https://welkinlegal.com/blog/index.php/2022/09/18/consumer-rights-in-india/ (Accessed: November 22, 2022).
5.) Indian kanoon – search engine for Indian law (no date). Available at: https://indiankanoon.org/ (Accessed: November 22, 2022).
6.) https://indiankanoon.org/
7.) Consumer rights: Department of consumer affairs: Ministry of consumer affairs food and public distribution: Government of India (no date) Establishment, External site that opens in a new window. Available at: https://consumeraffairs.nic.in/en/organisation-and-units/division/consumer-protection-unit/consumer-rights (Accessed: November 22, 2022).
8.) https://www.scconline.com/blog/post/2020/12/24/consumer-protection-act-2019-a-primer/
[1] (1978) 3 SCC 459
[2]The Consumer Protection Act, 2019. Bare Act.
[3] Bare Act. The Consumer Protection Act, 2019. In Section 2(7).
[4]Bare Act. The Consumer Protection Act, 2019. In Section 17.
[5]Bare Act. The Consumer Protection Act, 2019. In Section 2(9).
[6]Bare Act. The Consumer Protection Act, 2019. In Section (39).
[7]Bare Act. The Consumer Protection Act, 2019. In Section (18).
[8] (1990) 1 SCC 608.
[9] AIR 2003 SC 739.
[10] AIR 1996 Mad. 427
[11] 1991 (1) CPI 206 (NC)
Pingback: ROLE OF CONSUMER PROTECTION ACT, 2019 IN PROTECTING THE RIGHTS OF CONSUMERS IN INDIA – Startup Story