ConsumerProtectionAct2019 Final
ConsumerProtectionAct2019 Final
Important Definitions –
1) Advertisement – Section 2(1)
Advertisement means any –
audio or visual publicity,
representation,
endorsement or
pronouncement
made by means of light, sound, smoke, gas, print, electronic media, internet or website and
includes any notice, circular, label, wrapper, invoice or such other documents.
4) Consumer –
For consideration paid or
promised or partly paid partly
promised or under any system of
Buys goods; or deferred payment and includes
any user of such goods when such
use is made with the approval of
such person
Consumer means a
person who For consideration paid or
promised or partly paid partly
promised or under any system of
deferred payment and includes
Avail services any beneficiary of such service
when such services are availed of
with the approval of the first
mentioned person
Note –
Consumer does not includes a person who buys goods or avails service for commercial purpose.
“Commercial purpose” does not include use by a person of goods bought and used by him exclusively
for the purpose of earning his livelihood, by means of self-employment
“buys any goods” and “hires or avails any services” includes offline or online transactions through
electronic means or by teleshopping or direct selling or multi-level marketing.
Consumer Rights –
the right to be informed
about the quality,
the right to be protected quantity, potency, purity, the right to be assured,
against marketing of standard and price of wherever possible, access
goods and services which goods, or services so as to variety of goods and
are hazardous to life and to protect the consumer services at competitive
property against unfair trade prices;
practices;
B) Power of DC –
a) On receipt of a complaint, the District Commission may admit the complaint
for being proceeded with or reject the same.
b) A complaint shall not be rejected unless an opportunity of being heard has
been given to the complainant.
F) Powers of DC –
District Commission shall have the same powers as are vested in a civil court under
the Code of Civil Procedure, 1908 while trying a suit in respect of the following
matters –
(a) the summoning and enforcing the attendance of any defendant or witness and
examining the witness on oath;
(b) requiring the discovery and production of any document or other material
object as evidence;
(c) receiving of evidence on affidavits;
(d) the requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(e) issuing of commissions for the examination of any witness, or document; and
(f) any other matter which may be prescribed by the Central Government.
Note –
Every proceeding before the District Commission shall be deemed to be a judicial
proceeding
Findings of Where the District Commission is satisfied that –
District the goods complained against suffer from any of the defects specified in the
Commission – complaint; or
Section 39 that any of the allegations contained in the complaint about the services or any
unfair trade practices is correct; or
claims for compensation under product liability are proved
Then it shall issue an order to the opposite party directing him to do one or more of the
following –
a) to remove the defect pointed out by the appropriate laboratory from the goods in
question;
b) to replace the goods with new goods of similar description which shall be free
from any defect;
c) to return to the complainant the price or the charges paid by the complainant
along with such interest on such price or charges as may be decided;
d) to remove the defects in goods or deficiencies in the services in question;
e) to discontinue the unfair trade practice or restrictive trade practice and not to
repeat them;
f) not to offer the hazardous or unsafe goods for sale;
g) to withdraw the hazardous goods from being offered for sale;
h) to cease manufacture of hazardous goods and to desist from offering services
which are hazardous in nature;
i) to pay such amount as may be awarded by it as compensation to the consumer
for any loss or injury suffered by the consumer due to the negligence of the
opposite party
j) to pay such amount as may be awarded by it as compensation in a product
liability action
k) to pay such sum as may be determined by it, if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not identifiable
conveniently. it may be noted that the minimum amount of sum so payable shall
not be less than25% of the value of such defective goods sold or service
provided, as the case may be, to such consumers;
l) to issue corrective advertisement to neutralise the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such
misleading advertisement;
m) to provide for adequate costs to parties; and
n) to cease and desist from issuing any misleading advertisement.
Note –
If there is difference in opinions of president and a member then they shall state
the point or points on which they differ and refer the same to another member for
hearing on such point or points and the opinion of the majority shall be the order
of the District Commission.
The other member shall give his opinion on such point or points referred to him
within a period of one month from the date of such reference.
Every order made by the District Commission shall be signed by the President and
the member who conducted the proceeding.
Review by District DC has the power to review any of the order passed by it if there is an error apparent on
Commission in the face of the record, either of its own motion or on an application made by any of the
Certain Case – parties within 30 days of such order
Section 40
Appeal against 1) Any person aggrieved by an order made by the District Commission may prefer an
order of District appeal against such order to the State Commission within a period of 45 days.
Commission – 2) State Commission may entertain an appeal after the expiry of the said period of
Section 41 forty-five days, if it is satisfied that there was sufficient cause for not filing it within
that period
Topic Explanation
Establishment of SG has the power to establish a State Consumer Disputes Redressal Commission, to be
State Commission known as the State Commission, in the State
– Section 42
Composition of SC Each State Commission shall consist of –
– a) a President; and
b) not less than 4 or not more than such number of members as may be prescribed in
consultation with the Central Government.
Qualifications, The Central Government may, by notification, make rules to provide for the –
etc., of President a) qualifications,
and members of b) method of recruitment,
State Commission c) procedure for appointment,
d) term of office,
e) resignation and removal
of the President and members of the State Commission.
Jurisdiction of State Commission shall have jurisdiction to entertain complaints –
State Commission a) where the value of the goods or services paid as consideration exceeds rupees 1
– Section 47 crore but does not exceed 10 crore rupees.
b) complaints against unfair contracts, where the value of goods or services paid as
consideration does not exceed ten crore rupees;
c) appeals against the orders of any District Commission within the State; and
Note –
SC shall also has the power to call for the records and pass appropriate orders in
any consumer dispute which is pending before or has been decided by any District
Commission within the State where it appears to the State Commission that such
District Commission has exercised a jurisdiction not vested in it by law, or has
failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction
illegally or with material irregularity.
jurisdiction, powers and authority of the State Commission may be exercised by
Benches constituted by the President with one or more members as the President
may deem fit.
Jurisdiction State commission where case to be filed –
where case A complaint shall be instituted in a District Commission within the local limits of whose
should be filed – jurisdiction –
the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or
any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on business
or has a branch office, or personally works for gain, provided that in such case the
permission of the State Commission is given; or
the cause of action, wholly or in part, arises; or
the complainant resides or personally works for gain.
Procedure 1) Provisions relating to complaints under sections 35, 36, 37, 38 and 39 shall, with
applicable to such modifications as may be necessary, be applicable to the disposal of
State Commission complaints by the State Commission
– 2) The State Commission may also declare any terms of contract, which is unfair to
Section 49 any consumer, to be null and void.
Review by State SC has the power to review any of the order passed by it if there is an error apparent on
Commission in the face of the record, either of its own motion or on an application made by any of the
Certain Case – parties within thirty days of such order.
Section 50
Appeal to 1) Any person aggrieved by an order made by the State Commission may prefer an
National appeal against such order to the National Commission within a period of 30 days.
Commission – 2) National Commission may entertain an appeal after the expiry of the said period of
Section 51 30 days, if it is satisfied that there was sufficient cause for not filing it within that
period
Topic Explanation
Establishment of CG has the power to establish National Consumer Disputes Redressal Commission, to be
National known as the National Commission.
Commission –
Section 53
Composition of National Commission shall consist of–
NC – Section 54 a) a President; and
b) not less than 4 and not more than such number of members as may be prescribed.
Qualifications, The Central Government may, by notification, make rules to provide for the –
etc., of President a) qualifications,
and members of b) method of recruitment,
National c) procedure for appointment,
Commission – d) term of office,
Section 55 e) resignation and removal
of the President and members of the National Commission.
Tenure of office –
a) President and members of the National Commission shall hold office for a
maximum period of 5 years and shall be eligible for reappointment.
b) President or members shall not hold office as such after he has attained such age
as specified in the rules made by the Central Government which shall not exceed –
1) in the case of the President, the age of 70;
2) in the case of any other member, the age of 67 years
Jurisdiction of National Commission shall have jurisdiction to entertain complaints –
National 1) where the value of the goods or services paid as consideration exceed 10 crore
Commission – rupees.
Section 58 2) complaints against unfair contracts, where the value of goods or services paid as
consideration exceeds ten crore rupees;
3) appeals against the orders of any state commission; and
4) Appeals against the orders of the Central Authority
Note –
NC shall also has the power to call for the records and pass appropriate orders in
any consumer dispute which is pending before or has been decided by any State
Commission where it appears to the National Commission that such District
Commission has exercised a jurisdiction not vested in it by law, or has failed to
exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally
or with material irregularity.
Jurisdiction, powers and authority of the National Commission may be exercised
by Benches constituted by the President with one or more members as the
President may deem fit.
Procedure 1) Provisions relating to complaints under sections 35, 36, 37, 38 and 39 shall, with
Applicable to such modifications as may be considered necessary, be applicable to the disposal
National of complaints by the National Commission.
Commission – 2) National Commission may also declare any terms of contract, which is unfair to any
Section 59 consumer to be null and void.
Review by NC has the power to review any of the order passed by it if there is an error apparent on
National the face of the record, either of its own motion or on an application made by any of the
Commission in parties within thirty days of such order
Certain Cases –
Section 60
Power to set Where an order is passed by the National Commission ex parte, the aggrieved party may
aside ex parte make an application to the Commission for setting aside such order.
Orders –
Appeal against 1) Any person, aggrieved by an order made by the National Commission may prefer
Order of National an appeal against such order to the Supreme Court within a period of 30 days from
Commission – the date of the order.
Section 67 2) Supreme Court may entertain an appeal after the expiry of the said period of thirty
days if it is satisfied that there was sufficient cause for not filing it within that
period.
3) No appeal by a person who is required to pay any amount in terms of an order of
the National Commission shall be entertained by the Supreme Court unless that
person has deposited 50% of that amount in the manner as may be prescribed.
Miscellaneous –
Experts to Assist National Commission or State Commission – Section 66
Where the National Commission or the State Commission, on an application by a complainant or
otherwise, is of the opinion that it involves the larger interest of consumers, it may direct any individual
or organisation or expert to assist the National Commission or the State Commission.