Consumer protection

Consumer protection is the practice of safeguarding buyers of goods and services, and the public,
against unfair practices in the marketplace. Consumer protection measures are often established
by law. Such laws are intended to prevent businesses from engaging in fraud or specified unfair
practices in order to gain an advantage over competitors or to mislead consumers. They may also
provide additional protection for the general public which may be impacted by a product (or its
production) even when they are not the direct purchaser or consumer of that product. For example,
government regulations may require businesses to disclose detailed information about their products
—particularly in areas where public health or safety is an issue, such as with food or automobiles.
Consumer protection is linked to the idea of consumer rights and to the formation of consumer
organizations, which help consumers make better choices in the marketplace and pursue complaints
against businesses. Entities that promote consumer protection include government organizations
(such as the Federal Trade Commission in the United States), self-regulating business organizations
(such as the Better Business Bureaus in the US, Canada, England, etc.), and non-governmental
organizations that advocate for consumer protection laws and help to ensure their enforcement
(such as consumer protection agencies and watchdog groups).
A consumer is defined as someone who acquires goods or services for direct use or ownership
rather than for resale or use in production and manufacturing. Consumer interests can also serve
consumers, consistent with economic efficiency, but this topic is treated in competition law.
Consumer protection can also be asserted via non-government organizations and individuals
as consumer activism.

Concept of Consumer law

Consumer protection law or consumer law is considered as an area of law that regulates private
law relationships between individual consumers and the businesses that sell those goods and
services. Consumer protection covers a wide range of topics, including but not necessarily limited
to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other
consumers/business interactions. It is a way of preventing frauds and scams from service and sales
contracts, eligible fraud, bill collector regulation, pricing, utility turnoffs, consolidation, personal
loans that may lead to bankruptcy. There have been some arguments that consumer law is also a
better way to engage in large-scale redistribution than tax law because it does not necessitate
legislation and can be more efficient, given the complexities of tax law.
The following lists consumer legislation at the nation-state level. In the EU member state Germany,
there is also the applicability of law at the EU level to be considered; this applies on the basis
of subsidiarity.

Australia
In Australia, the corresponding agency is the Australian Competition and Consumer Commission or
the individual State Consumer Affairs agencies. The Australian Securities and Investments
Commission has responsibility for consumer protection regulation of financial services and products.
However, in practice, it does so through privately run EDR schemes such as the Financial
Ombudsman Service (Australia).

Brazil[edit]
In Brazil, consumer protection is regulated by the Consumer's Defense Code (Código de Defesa do
Consumidor),[2] as mandated by the 1988 Constitution of Brazil. Brazilian law mandates "The offer
and presentation of products or services must ensure correct, clear, accurate and conspicuous
information in the Portuguese language about their characteristics, qualities, quantity, composition,
price, guarantee, validity and origin, among other data, as well as the risks they pose to the health
and safety of consumers." In Brazil, the consumer does not have to bring forward evidence that the
defender is guilty. Instead, the defense has to bring forward evidence that they are innocent.[2] In the
case of Brazil, they narrowly define what a consumer, supplier, product, and services are, so that
they can protect consumers from international trade laws and protect them from negligence and
misconduct from international suppliers.

Germany
Germany, as a member state of the European Union, is bound by the consumer
protection directives of the European Union; residents may be directly bound by EU regulations. A
minister of the federal cabinet is responsible for consumer rights and protection
(Verbraucherschutzminister). In the current cabinet of Angela Merkel, this is Katarina Barley.
When issuing public warnings about products and services, the issuing authority has to take into
account that this affects the supplier's constitutionally protected economic liberty,
see Bundesverwaltungsgericht (Federal Administrative Court) Case 3 C 34.84, 71 BVerwGE 183).

India
In India, consumer protection is specified in The Consumer Protection Act, 2019. Under this law,
Separate Consumer Dispute Redress Forums have been set up throughout India in each and every
district in which a consumer can file his/her complaint on a simple paper with nominal court fees and
his/her complaint will be decided by the Presiding Officer of the District Level. The complaint can be
filed by both the consumer of a goods as well as of the services. An appeal could be filed to the
State Consumer Disputes Redress Commissions and after that to the National Consumer Disputes
Redresal Commission (NCDRC). The procedures in these tribunals are relatively less formal and
more people friendly and they also take less time to decide upon a consumer dispute when
compared to the years-long time taken by the traditional Indian judiciary. In recent years, many
effective judgments have been passed by some state and National Consumer Forums.
Indian Contract Act, 1872 lays down the conditions in which promises made by parties to a contract
will be legally binding on each other. It also lays down the remedies available to aggregate party if
the other party fails to honor his promise.
The Sale of Goods Act of 1930 act provides some safeguards to buyers of goods if goods purchased
do not fulfill the express or implied conditions and warranties.
The Agriculture Produce Act of 1937 act provides grade standards for agricultural commodities and
livestock products. It specifies the conditions which govern the use of standards and lays down the
procedure for grading, marking and packaging of agricultural produce. The quality mark provided
under the act is known as AGMARK-Agriculture Marketing.

Nigeria
The Nigerian government has a duty to protect its people from any form of harm to human health
through the use and purchase of items to meet daily needs. In light of this, the Federal Competition
and Consumer Protection Commission (FCCPC), whose aim is to protect and enhance consumers'
interest through information, education, and enforcement of the rights of consumers was established
by an Act of Parliament to promote and protect the interest of consumers over all products and
services. In a nutshell, it is empowered to eliminate hazardous & substandard goods from the
market. Provide speedy redress to consumer complaints and petition arisen from fraud, unfair
practice and exploitation of the consumer.
On 5 February 2019, the President of Nigeria, Muhammadu Buhari, assented to the new Federal
Competition and Consumer Protection Commission Bill, 2018. Thus, the bill became a law of the
Federal Republic of Nigeria and binding on entities and organizations so specified in the Act.
The long title of the Act reads: "This Act establishes the Federal Competition and Consumer
Protection Commission and the Competition and Consumer Protection Tribunal for the promotion of
competition in the Nigerian market at all levels by eliminating monopolies, prohibiting abuse of
dominant market position and penalizing other restrictive trade and business practices." The Act
further repealed the hitherto Nigerian Consumer Protection Council Act and transferred its core
mandate to the new Commission.

Taiwan
Modern Taiwanese law has been heavily influenced by European civil law systems, particularly
German and Swiss law. The Civil Code in Taiwan contains five books: General Principles,
Obligations, Rights over Things, Family, and Succession. The second book of the Code, the Book of
Obligations, provided the basis from which consumers could bring products liability actions prior to
the enactment of the CPL.
The Consumer Protection Law (CPL) in Taiwan, as promulgated on 11 January 1994, and effective
on 13 January 1993, specifically protects the interests and safety of customers using the products or
services provided by business operators. The Consumer Protection Commission of Executive Yuan
serves as an ombudsman supervising, coordinating, reporting any unsafe products/services and
periodically reviewing the legislation.
According to the Pacific Rim Law & Policy Association and the American Chamber of Commerce, in
a 1997 critical study, the law has been criticized by stating that "although many agree that the intent
of the CPL is fair, the CPL's various problems, such as ambiguous terminology, favoritism towards
consumer protection groups, and the compensation liability defense, must be addressed before the
CPL becomes a truly effective piece of legislation that will protect consumers"

United Kingdom
The United Kingdom has left the European Union, but during the transition period (until end of 2020)
the UK was still bound by directives of the European Union. Specifics of the division of roles
between the EU and the UK are detailed here. Domestic (UK) laws originated within the ambit
of contract and tort but, with the influence of EU law, it is emerging as an independent area of law. In
many circumstances, where domestic law is in question, the matter is judicially treated
as tort, contract, restitution or even criminal law.
Consumer Protection issues were dealt with by the Office of Fair Trading before 2014. Since then,
the Competition and Markets Authority has taken on this role.

United States
In the United States a variety of laws at both the federal and state levels regulate consumer affairs.
Among them are the Federal Food, Drug, and Cosmetic Act, Fair Debt Collection Practices Act,
the Fair Credit Reporting Act, Truth in Lending Act, Fair Credit Billing Act, and the Gramm–Leach–
Bliley Act. Federal consumer protection laws are mainly enforced by the Federal Trade Commission,
the Consumer Financial Protection Bureau, the Food and Drug Administration, and the U.S.
Department of Justice.
At the state level, many states have adopted the Uniform Deceptive Trade Practices Act including,
but not limited to, Delaware, Illinois, Maine, and Nebraska. The deceptive trade practices prohibited
by the Uniform Act can be roughly subdivided into conduct involving either a) unfair or fraudulent
business practice and b) untrue or misleading advertising. The Uniform Act contains a private
remedy with attorneys fees for prevailing parties where the losing party "willfully engaged in the trade
practice knowing it to be deceptive". Uniform Act §3(b). Missouri has a similar statute called the
Merchandising Practices Act.[17] This statute allows local prosecutors or the Attorney General to press
charges against people who knowingly use deceptive business practices in a consumer transaction
and authorizes consumers to hire a private attorney to bring an action seeking their actual damages,
punitive damages, and attorney's fees.
Also, the majority of states have a Department of Consumer Affairs devoted to regulating certain
industries and protecting consumers who use goods and services from those industries. For
example, in California, the California Department of Consumer Affairs regulates about 2.3 million
professionals in over 230 different professions, through its forty regulatory entities. In addition,
California encourages its consumers to act as private attorneys general through the liberal
provisions of its Consumers Legal Remedies Act.
California has the strongest consumer protection laws of any US state, partly because of rigorous
advocacy and lobbying by groups such as Utility Consumers' Action Network, Consumer Federation
of California, and Privacy Rights Clearinghouse. For example, California provides for "cooling off"
periods giving consumers the right to cancel contracts within a certain time period for several
specified types of transactions, such as home secured transactions, and warranty and repair
services contracts.
Other states have been the leaders in specific aspects of consumer protection. For example, Florida,
Delaware, and Minnesota have legislated requirements that contracts be written at reasonable
readability levels as a large proportion of contracts cannot be understood by most consumers who
sign them.
Considering the state of Massachusetts, the Massachusetts Consumer Protection Law, MGL 93A,
clearly highlights the rights and violations of consumer protection law in the state. The chapter
explains what actions are considered illegal under the law for which a party can seek money
damages from the other party at fault.[20] Some examples of practices that constitute a Chapter 93A
violation would be when:

1. A Business charges a consumer higher rates than the marked price

2. The refund policy is not clearly posted where it can be readily noticed and understood
3. A business fails to tell you relevant information regarding your product or service misleads
you in any way.[21]
The laws under MGL 93A prohibits activities that relate to overpricing to a consumer and use of "Bait
and Switch" techniques. A court will award the plaintiff the damages if they can prove the (1)
defendant knowingly and intentionally violated the MGL 93A agreement or (2) the defendant would
not "grant relief in bad faith" knowing that the actions violated the MGL 93A agreement. Additionally,
failure to disclose refund/ return policy, warranties and critical information about the product/service
are all in violation of the legislation, and can result in triple damages and lawyer fees.

Constitutional laws
47 national constitutions currently include and enforce some sort of consumer right. The
Constitute] project lists the text of each of these provisions Kenya's provision, for example, suggests
that citizens have the right to

1. goods and services of "reasonable quality."

2. information about the product, and
3. protection of their health and safety in the use of the product.
The Kenyan rule also stipulates that citizens would have legal recourse in the case of injury or
product defects.
Laws[edit]

 Competition law
United Kingdom[edit]

 Consumer Protection (Distance Selling) Regulations 2000

 Consumer Rights Act 2015
 Electronic Commerce Regulations 2002
 Enterprise Act 2002
 General Product Safety Regulations 2005
 Sale and Supply of Goods to Consumers Regulations 2002/3045
 Supply of Goods (Implied Terms) Act 1973
 Supply of Goods and Services Act 1982
 Unfair Contract Terms Act 1977
 Unfair Terms in Consumer Contracts Regulations 1999
United States[edit]

 Consumer Product Safety Act – gives the Consumer Product Safety Commission the power
to develop safety standards and pursue recalls for products
 Federal Trade Commission Act – created the Federal Trade Commission (FTC) to prevent
unfair competition, deceptive acts, regulate trade, etc.
Privacy laws

 United States National Do Not Call Registry – allows US consumers to limit telemarketing
calls they receive.
Food and drug

 Pure Food and Drug Act – led to the creation of the U.S. Food and Drug
Administration (FDA) to regulate foods, drugs, and more.
Communications

 Communications Act of 1934 – created the Federal Communications Commission (FCC) to

regulate all radio and interstate cable, phone, and satellite communications.
Banking

 Fair Credit Reporting Act (FRCA) – regulates the collection, dissemination, and use of
consumer credit information
 Fair Debt Collection Practices Act (FDCPA) – eliminates abusive consumer practices, ensure
fairness, etc.
 Truth in Lending Act (TILA) – requires clear disclosure of key terms of the lending
arrangement and all costs.
Real estate

 Real Estate Settlement Procedures Act (RESPA) – prohibits kickbacks and requires lenders
to provide a good faith estimate of costs
Health insurance
 Health Insurance Portability and Accountability Act (HIPAA) – provides consumer protection
for health information
Digital media

 Digital Millennium Copyright Act – prohibits production or sale of devices or services

intended to circumvent copyright measures.
 Digital Media Consumers' Rights Act (proposed) – would repeal the Digital Millennium
Copyright Act
Australia[edit]

 The Australian Consumer Law

 Division 2 of Part 2 of the Australian Securities and Investments Commission Act 2001[28] in
relation to financial services and products.
I. Right to Safety
This right means right to be protected against the marketing of goods and services, which are
hazardous to life and property. The purchased goods and services availed should not only meet
their immediate needs, but also fulfill long term interests.21
Nightmare Come True
• The Bhopal gas tragedy that took place in 1984 due to accidental release of 40
tonnes of a poisonous gas Methyl Isocyanate, is another instance challenging the right to
safety. As many as 3000 people died immediately and 15,000 other died due to related
illness22.
• 83 children were killed in a major fire raged through a school in Kumbakonam Town‟s
Thanjavur district on July 16, 2004. Lack of proper testing facilities, bureaucratic
intransigence, lack of funds and lack of consumer awareness are all reasons that militate
against the proper implementation of the body of legislation and existing mechanisms. While
there is an elaborate

system of granting ISI marks, periodic upgrading etc., products with fake ISI marks are
often found in the market.

II. Right to be informed

This right means right to be informed about the quality, quantity, potency, purity, Standard and
price of goods so as to protect the consumer against unfair trade practices (UTPs). The key
aspects are:
• The right to be given the facts needed to make an informed choice, to be protected
against misleading advertising or labeling.
• The responsibility to search out and use available information.
• To read and follow labels and research before purchase.
Consumer should insist on getting all the information about the product or service before
making a choice or a decision. This will enable him to act wisely and responsibly and also to
desist from falling prey to high-pressure selling techniques. Without information on quality,
quantity, potency, purity, standard and price of goods and services, consumers would not be
able make the right decisions and protect themselves from abusive practices. Various
interpretations of Article 19 (2) of fundamental rights clearly state that there should be a
definite policy or uniform guidelines on the part of the state to help consumers make
“informed choice”. Moreover, provisions regarding the right to information are provided
under:
• The Consumer Protection Act, 1986;
• The Standards of Weights and Measures Act, 1976;
• The Bureau of Indian Standards Act, 1986; and
• Competition Act 2002 etc.
The new Right to Information (RTI) Act is expected to have far-reaching implications for the
right to information of the consumer. After many deliberations over the years, the RTI23

Right to Information is a key enabler of good governance, and a tool to ensure transparency
and accountability in the government. It also helps ensure participation of public in
governance, eliminate corruption and empower the people. It gives the citizen the right to
seek information and makes it binding on the officials to store and make the information
easily available to the consumers.24

III. Right to Choose

This right means right to be assured, wherever possible of access to variety of goods and
services at competitive prices. In case of monopolies, it means right to be assured of
satisfactory quality and service at a fair price. It also includes right to basic goods and services.
This is because unrestricted right of the minority to choose can mean a denial for the majority
of its fair share. This right can be better exercised in a competitive market where a variety of
goods are available at competitive prices. The key elements of this right are:
• The right to choose products and services at competitive prices with an assurance of
satisfactory quality.
• The responsibility to make informed and responsible choices.
In spite of a fair amount of legislation and other safeguards, the right to choice of the Indian
consumer is far from realized.25 At the micro level, the individual is duped each and every
day by dishonest traders, forced to buy items s/he does not require as part of tied- selling, and
cheated by wrong weights and poor quality. Consumers in many parts of the country are
deprived of supply of electricity, good roads, proper transport and other public services and
utilities.26

IV. Right to be heard/represented

This right means that consumer's interests will receive due consideration at appropriate
forums. It also includes right to be represented in various forums formed to consider the
consumer's welfare. The main aspects of the right are:
• The right to express consumer interests in the making of decisions.
• The responsibility to make opinions known.
• To join an association such as the Consumer Council to make their voice heard and to
encourage others to participate. Effective consumer representation ensures that the needs of all
people are taken into consideration in policy formulation that directly affects their lives. By
magnifying the voice of the individual, representation contributes to good governance and the
achievement of social justice. It affords better and more durable decisions. Consumer
associations have used these guidelines to promote legislation enabling them to seek
representation in the courts, in the law-making process, and in the implementation of
regulatory regimes. Some of the consumer organizations are actively participating at policy
making platforms through websites, consultations and meetings. However, despite the
existence of a number of administrative as well as organizational tools, the implementation of
consumer‟s right to representation faces several drawbacks.
The consumer movement in the country has not developed to the size and reach, which
is required to serve the vast country and its huge population. Furthermore, a majority of
consumer organizations are mostly confined to cities and urban areas. They are not being able
to penetrate deep into society where the majority of poor, low-income and disadvantaged
consumers live.27

V. Right to Redress
This right means right to seek redressal against UTPs or unscrupulous exploitation of
consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
Consumers must make complaint for their genuine grievances. Many a times, their complaint
may be of small value but its impact on the society, as a whole, may be very large. The key
aspects are:
• The right to be compensated for misrepresentation, shoddy goods or unsatisfactory services.
• The responsibility to fight for the quality that should be provided.
• To complaint effectively and refusing to accept shoddy workmanship.
The right to seek redress is set out in the Preamble to the Constitution of India, wherein it has
been declared that people has the right to strive for justice, social, economic and political and
equality of opportunity. The Act has come as a panacea for consumers all over the country and
has assumed the shape of practically the most important legislation enacted in the country
during the last few years. It has become the vehicle for enabling people to secure speedy and
in- expensive redressal of their grievances. The first and the foremost problem is that most
state governments do not evince requisite enthusiasm and attention in promptly implementing
the provisions of the Act by establishing properly functioning District Forums and State
Commission. Secondly, the consumer forums are becoming like civil courts with presidents
(judicial members) asking for a more formal approach. Sometimes, these forums have asked
complainants to engage lawyers, even when it is not really required. Such systemic problems
are resulting in inordinate delays.28 In the past, members were appointed on the basis of their
connections rather than merit. Now the system has improved substantially due to an
amendment in the law requiring a selection committee to appoint them. However, there is a
lackadaisical approach in selecting people for such positions. One major reason is the general
apathy and absence of proper knowledge and fear of exploitation by lawyers. An average
Indian consumer is noted for her patience and tolerance. Perhaps because of these two
traditional traits, she considers the receipt of defective goods and services as an act of fate or
unfavorable planetary position in her horoscope. It is rather paradoxical that the customer is
advertised as the "king" by the seller and service provider; but, in actual practice, treated as a
slave or servant.

VI. Right to Consumer Education

This right contains the provision to acquire knowledge and skills needed to make informed,
confident choices about goods and services, while being aware of basic consumer rights and
responsibilities and how to act on them.
• The right to acquire the knowledge and skills necessary to be an informed consumer.
• The responsibility to take advantage of consumer opportunities. Take action by attending
seminars and workshops, work to ensure consumer education takes place in schools.
Consumer awareness and education is meant to ensure that the consumers have easy access to
the knowledge and skills to be an informed consumer. Thus, the right to consumer education
envisages the right to knowledge and skills needed for taking actions to influence factors,
which affect consumers‟ decisions.

There is no legal framework establishing the right to consumer education nor are there
guarantees in the Constitution. The Union and state governments, however, have accepted
the introduction of consumer education in school curriculum and progress has been made in
some states.
Furthermore, the Government of India, through the Consumer Welfare Fund (CWF), supports
consumer educational programmes undertaken by consumer groups or state governments. The
Consumer Club scheme was launched in the year 2002, with funding from CWF, has the
objective to educate children about the rights of the consumers, protection of their rights, and
to strengthen the consumer movement in the country. The media has also been playing an
important role in this context. Consumer education faces the universal problem of matching
limited resources against an infinite need. Moreover, in a large country like India, with
multiplicity of languages, the problem is of larger dimensions.

VII. Right to Basic Needs

All consumers have the right to basic goods and services such as adequate food, drinking
water, shelter, clothing, health care, electricity and education. These rights lay a foundation to
lead a life with dignity and, therefore, give a meaning to citizen's rights.
The key aspects are as follows:
• The right to basic goods and services, which guarantee survival.
• The responsibility to use these goods and services appropriately.
• To take action to ensure that basic needs are available.
The following eight needs constitute the inalienable right to basic needs: food; clothing;
healthcare; drinking water and sanitation; shelter; education; energy; and transportation. Basic
needs are important for everyone's survival and access to a decent standard of life. This is
more important for a country like India, which has a history of the systematic denial of access
to basic needs and services to the majority of its people.29
The United Nations‟ Guidelines do not explicitly mention the right to basic needs, but expect
governments to take appropriate measures so that essential goods and services could be easily
accessible to the consumers.30

Everyone has the right to have access to adequate clothing, housing, education, primary health
etc. In addition, everyone requires pure air and water, safe and responsible waste disposal,
the preservation of natural resources, and effective conservation measures. However, much
remains to be done in terms of reaching out to the poorest of poor and the remote areas of the
country to avail the consumers of basic needs.31

VIII. Right to a Healthy Environment

To live and work in an environment, which is non-threatening to the well-being of present and
future generations. The right contains the following elements:
• The right to live and work in an environment that is neither threatening nor dangerous
and which permits a life of dignity and well-being.
• The responsibility to minimize environmental damage through careful choice and use of
consumer goods and services.
• To reduce waste, reuse products and to recycle whenever possible.
The United Nations‟ Guidelines contain governments, which in partnership with business and
relevant organisations of civil society, should develop and implement strategies to promote
sustainable consumption through a mix of policies that could include regulations; economic
and social instruments; sectoral policies in such areas as land use, transport, energy and
housing; information programmes to raise awareness of the impact of consumption patterns;
removal of subsidies that promote unsustainable patterns of consumption and production; and
promotion of sector-specific environmental- management best practices.
As far as the issue of a healthy environment is concerned, Article 21 of the Indian Constitution
requires the State, inter alia, to protect life, which is construed as including the right to a
healthy and safe environment. A healthy and safe environment is inalienably linked with
sustainability and promotion of sustainable consumption. Moreover, the Directive Principles of
State Policy direct the state to endeavor to protect and improve the environment, forests and
wild life. Consumer protection in India thus has dual dimensions. It first has to ensure
availability and access to basic needs of life to one section of the society; on the other hand,
those with the purchasing power need to be protected against violation of their other rights.
The consumer policy should strive to cover and address the interests of both the have-nots and
haves.

The challenge is in the strengthening of the administrative mechanisms in implementing such

measures, with incentives for the enforcement officials so that they perform their duties
without being influenced or handicapped due to lack of resources. The government has been
successful in opening up the economy to private players, domestic as well as foreign, leading
to increased efficiency, creation of jobs and an enticing market. This has, in turn, resulted in
booming consumer spending. The increased consumer spending requires adequate safety nets
to ensure that their rights are not violated. This can be achieved by striking a balance between
the health of the economy and that of the consumers. The onus lays on the stakeholders, in
particular the government and CSOs to create awareness about the existence of the redressal
mechanisms and laws protecting consumer interests. This will not only empower the
consumers, but would also smoothen the process of policy implementation.33
An appropriate framework is required to keep a check on the effective functioning of these
laws. Various laws governing consumer interest are dealt with under different ministries and
often left Hand does not know what the right hand is doing. Like a human body, which
functions in synchronization with various organs aligned under the central nervous system,
consumer laws would function to the best of their efficiency, if imbibed less than one
department.34

There are many provisions and Acts available to protect the consumers in India. In the
following discourse, we intend to discuss the important of those provisions and Acts which are
directly relevant for the present study.

THE CONSTITUTIONAL PERSPECTIVE

 The Constitution of India in Articles 3835, 3936, 4237, 4338, 4639 and 4740 provides that
the state shall strive to secure a social order for the promotion of welfare of the people; it shall
direct its policies in such a way that operation of economic system does not result in the
concentration of wealth and means of production to the common detriment, it shall make

provision for securing just and humane conditions of work and for maternity relief; it should
endeavor to build an economic organization or to make suitable legislation to ensure a decent
standard of life to all the workers who constitute the bulk of the consumers; it should promote
educational and economic interests of schedule castes, scheduled tribes and other weaker
sections and it shall also raise the level of nutrition and standard of living and to improve
public health.

Article 46 of the Indian constitution provides that state shall endeavor to protect the economic
interest of the weaker section of its population and also protect them from social injustice and
all forms of exploitation which means all kinds of harassments and frauds in the market place.
This also includes people should be entitled to unadulterated stuff injurious to public health
and safety. This principle amply reflects the inclusion of the philosophy of the concept of
consumerism in article 47 of the Indian Constitution.

THE INDIAN PENAL CODE, 1860

It is the foremost penal law of the country which contains the substantive law of crime. It
caters to the needs of the consumer in some manner. However, sections 264 to 267 of the
Indian penal code relate to fraudulent use of false instrument for weighing, fraudulent use of
false weight and measures, anyone in possession of false weight or measure respectively. The
penal code further provides sections 269 to 271 on spreading of infections and in sections 272
to 276 on adulteration of food or drink, adulteration of drugs, sale of adulterated drugs and
sale of drugs as a different drug or preparation are punishable with imprisonment or with
both.41

THE DANGEROUS DRUGS ACT, 193042

In the area of drugs control the Dangerous drugs Act, 1930 is an important central legislation
which empowers the central government to control certain operations relating to dangerous
drugs. It further empowers to increase and render uniform penalties for offences relating to
operations of dangerous act.

THE SALE OF GOODS ACT, 1930

Some spirit of concept of consumerism is also evident in the Sale of Goods Act, 1930. 43 Before
this enactment the situation was uncertain with regard to “sale of goods or movables, the law
on the subject was not only uniform throughout British India but was also outside the limits of
the original jurisdiction of the high court, extremely uncertain in its application.”44

The Sale of Goods Act contains the spirit of the concept of consumer protection in several
provisions in several provisions which include contract of sale, conditions and warranties in
the sale, transfer of property between seller and buyer, duties of seller and buyers, right of
unpaid sellers against the goods and suits for the breach of the contract.45

THE DRUGS AND COSMETICS ACT,

194046
In order to defend the cause of consumer in the area of drugs and cosmetic industries in India,
Drugs and cosmetic act of 1940 was enacted so as to regulate the airport, distribution and sale
of drugs.

In pursuance to the recommendations the pharmaceutical enquiry committee appointed by the

Government of India, the drugs and cosmetics act, 1940 empowers the central government to
control the manufacture of drugs, to appoint inspectors for inspecting manufacturing premises
and taking samples of drugs, to appoint government analysts to whom samples drawn by such
inspectors could be sent for analysis and to issue the state government for carrying into any of
the provisions of the Act.47
THE DRUGS (CONTROL) ACT, 195048
In 1950 the Drugs (Control) Act was passed which also provides for the control of the sale,
supply and distribution of drugs. This Act briefly provides for fixing of maximum prices and
maximum quantities which may be held or sold, general limitation on quantity which may be
possessed at any one time, duty to declare possession of excess stocks, marking of prices and
exhibiting list of prices and stocks.

THE INDUSTRIES (DEVELOPMENT AND

REGULATION) ACT, 195149
Industries (Development and Regulation) Act, 1951 is another example on the part of the
union government to make some attempts in implementing the objectives of consumerism. The
act provides for the development and regulations of certain industries. The Act specifically
deals with the central government‟s power to control supply, distributing price etc of certain
articles.

THE INDIAN STANDARDS

INSTITUTIONS (CERTIFICATION
MARKS) ACT, 195250
The Act provides for the standardization and marking of goods which is a prerequisite to the
establishment of a healthy trade and to compare favorably with the established makes of
foreign products51.

The Act has been amended in 1961 and 1976 to make more effective in order to achieve its
objectives.
THE DRUGS AND MAGIC REMEDIES
(OBJECTIONABLE ADVERTISEMENTS)
ACT, 1954

The Act in brief provides for prohibition of advertisement of certain drugs for treatment of
certain diseases and disorders. It further imposes curb on misleading advertisements relating
to drugs, magic remedies for treatment and regulation of certain advertisements of Indian
imports and exports. There is also provision for punishment for those guilty of contravention
of the law.

THE PREVENTION OF FOOD

ADULTERATION ACT, 195452
The Act, keeping in view the menace of adulteration to the society and to make the machinery
provided under it more effective to curb the increasing tendencies in adulteration, was
amended in 1964. The amendment provides that for the proper enforcement of the provision
of the Act that the central government also should have power to appoint food inspectors.53

THE MONOPOLIES AND RESTRICTIVE

TRADE PRACTICES ACT, 196954
The one of the most important steps taken by central government to protect the interest of
consuming public is the enactment of the monopolies and restrictive Trade practices Act of
1969.the object of this Act is to provide that the operation of economic system does not result
in the concentration of economic power to common detriment. It also provides for controlling
the monopolies and prohibition of monopolistic and restrictive trade practices.55
THE CODE OF CRIMINAL PROCEDURE,
1973
Nevertheless, the criminal laws of the country do protect the consumer in some degree or so. In
this regard section 153 of the code empowers a station- house officer of a police station
without warrant to enter any place within the limits of such station for the purpose of
inspecting or searching for any weights or measures or instruments for weighing, used or
kept and whenever there is reason to believe that in such place weights, measures or
instruments for weighing or false.56

PRESENT SITUATION:
We all are consumers in one form or another. But in the present socio economic scenario we
find that the consumer is a victim of many unfair and unethical tactics adopted in the market
place. The untrained consumer is no match for the businessman marketing goods and services
on an organized basis and by trained professionals. He is very often cheated in the quality,
quantity and price of the goods or services. The consumer who was once the „king of the
market‟ has become the victim of it. The modern economic industrial and social developments
have made the notion of „freedom of contract‟ largely a matter of fiction and an empty slogan
so far as many consumers are concerned.57 With globalization and development in the
International Trade and Commerce there has been substantial increase of business and trade,
which resulted in a variety of consumer goods and services to cater to the needs of the
consumers. In recent years, there has been a greater public concern over the consumer
protection issues all over the world. Taking into account the interest and needs of the
consumers in all countries, particularly those in developing countries, the consumer protection
measures should essentially be concerned with – (i) the protection from hazards to health and
safety; (ii) the promotion and protection of economic interests; (iii) access to adequate
information; (iv) control on misleading advertisements and deceptive representation; (v)
consumer education and (vi) effective consumer redress.58 The consumer deserves to get what
he pays for in real quantity and true quality. In every society, consumer remains the centre of
gravity of all business and industrial activity. He needs protection from the manufacturer,
producer, supplier, wholesaler and retailer.59

In the early law, the doctrine of caveat emptor (let the buyer beware) was
the philosophy of the law of sales. Today it has been replaced by “let the seller beware”. As a
result of this change of legal philosophy, business is heavily regulated on behalf of the
consuming public. Many corporations today have a department of consumer affairs. Product
liability suits are already a part of tort law60.

But the situation in India is altogether different. The consumers are confronted invariably with
the non- availability of effective and speedy machinery for redressal of their grievances in the
marketplace. It is imperative to consider consumers‟ problems and their scope and nature of
grievances. However some remedies can be suggested which the consumers confront various
kinds of problems in the market place which have serious repercussions on their self- respect,
self image and also on their decision making processes. The consumer often experience in the
market place frustration and sometimes humiliation too, due to the arrogant behavior of the
sellers, which is the product of the prevailing scarcity conditions of articles and cancerous
tendency of hoarding in India. The consumer‟s problems are created in the market place from
range of frauds and deception to outright rejection of their just protest and right to information
about goods. Whatever the remedies which are available in India for the protection of the
consumers in the marketplace are by no means sufficient and the consumer find themselves
helpless due to ineffective legal machinery for redressal of grievances. If a consumer
experiences that he has been cheated owing to the high pressure sales pitch or by scarcity of
commodities or reductive advertisement techniques, or any other commercial means of
exploitation, he may still remain passive suffer in spite of knowing that he has not received the
value of his money for the commodity he paid. So to say, the consumer is powerless to assert
his rights and to compel a solution of his grievances in the marketplace.61

There is no doubt that the legal system in India provides some remedies for the consumers‟
problems. Equality before the law is not only a constitutional right but it is an essential
ingredient for making a state into just and welfare state. A just legal system has to operate in
the defence of their citizens and also ultimately for the establishment of an egalitarian society.
The position today that except for law suit in which substantial amounts of money are
involved, the law courts have not proved to be an effective or even feasible mechanism geared
to serve the needs of harassed and troubled consumers.

The Background of the 1993 Amendments

On July 24, 1991 the Government Of India in its Statement on New Industrial Policy62
observed
– with the growing complexity of industrial structure and the need for achieving economies of
scale for ensuring higher productivity and competitive advantage in the international market,
the interference of the government through the Monopolies and Restrictive Trade Practices
Act in investment decision of large companies has become deleterious in its effects of Indian
Industrial growth. The pre entry scrutiny of investment decisions by so called monopolies and
restrictive trade practices companies will no longer be required. Instead, emphasis will be on
controlling and regulating monopolistic, restrictive and unfair trade practices rather than
making it necessary for the monopoly houses to obtain prior approval of the central
government for expansion, establishment of new undertakings, merger, amalgamation and take
over and appointment of certain directors. The thrust of the policy will be more on controlling
unfair or restrictive business practices. The newly empowered MRTP Commission will be
encouraged to require investigation suo moto or on complaints63 received from individuals‟
consumers or classes of consumers.

Despite these positive improvements, the Act failed to fulfill the expectations of consumer
activists as it ignored the important recommendation that some services like health services in
hospitals run by government and local bodies and the services provided on mandatory basis bu
local bodies should be brought within the purview of the act as they affect the lives of the
citizens.

Background of the 2002 Amendment:

Although the Consumer Dispute Redressal Agencies64 established under the Consumer
Protection Act, 1986 have to a considerable extent, served the purpose for which they were
created, the disposal of cases has not been fast enough. Several bottlenecks and shortcomings
have also come to light in the implementations of various provisions of the act. With the view
to achieving quicker disposal of consumer complaints by the consumer disputes redressal
agencies, securing effective implementation of their orders, widening the scope of some of the
provisions of the act to make it more effective, removing various lacunae in the act and
streamlining the

procedure, several amendments have been made in the act by the Consumer Protection
(amendment) Act 2002.65

Act No.62 of 2002 seeks to substitute section 25 to provide for attachment by

the District Forums, State Commission or National Commission66, as the case may be, of the
property of the person of a person not complying with an interim order. It also seeks to
provide that on application from any person entitled to receive any amount from another
person under an order made by a District Forum, State Commission and National Commission
which remains due, the District Forum, State Commission and National Commission as the
case may be, may issue a certificate to the collector for recovery of the amount as arrears of
land revenue. These

Usually with any new enactment in India, one applauds the efforts of the minds that enacted
this legislation. It is an effort towards efficiency and does away with many lacunae in the law.
It also leaves ample scope for the courts to interpret and add meaning. What worries us is the
enforcement. Will the judges be eager to give reasoned orders for adjournment or will they, in
the spirit of the Act refuse to be lenient? How far will the consumers claim their rights and be
informed of them? Will the voluntary organizations jump into the fray and become more
proactive than before? Much depends on the individual and collective agencies of society.

FUTURE PROSPECTS:
The Consumer Protection Act67 has aroused enormous expectation amongst the masses for
redressal of their grievances. These expectations can be realised only when the redressal
machinery laid down in the Act is made functional. However, the place of establishment of
redressal machinery under the Act has been slow. The State Governments did not evince
sufficient interest in establishing District Forums and the State Commissions.68 In fact,
the

District Forum69 is the fulcrum of the entire Consumer Disputes Redressal Machinery because
a large number of cases are to be covered within the jurisdiction for the District forum. 70 The
appeals against the orders of the District Forum are to go to the State Commission and against
the orders of the State Commission to the National Commission.71

The working of the State Commissions and the National Commission72 will remain diluted
unless the District Forums are set up in all the Districts as envisaged in the Act. These delays
and defaults on the part of the State Government brought to the attention of the Supreme Court
in a Common Cause v. Union of India,73 where the Court issued directions that all States and
Union Territories to constitute all the District Forums and the State Commissions within six
weeks.74 It appears that the State Government has paid scant regard to this statutory obligation.
This is the most unfortunate state of affairs, for they betrayed total lack of concern for the
constitution and functioning of the District Forums and State Commissions. There is no reason
as to why the State Government could not establish necessary redressal machinery in
accordance with the requirements of the Act.75 Such delay is highly undesirable and
inexplicable and may shake the confidence of the public in such legislation.76