CONSUMER PROTECTION Act 2019

Concept of Consumer Protection

The concept of consumer protection is to safeguard the interests of the consumers. It adopts measures
to protect consumers from unethical malpractices by businesses and provide a swift redressal of their
grievances with regard to:
➢ Sale of adulterated goods such as adding inferior substances to the product being sold.
➢ Sale of counterfeit goods such as selling a product of lesser value than the real product.
➢ Sale of sub-standard goods that do not meet the prescribed quality standards.
➢ Sale of duplicate goods.
➢ Use of malfunctioning weights and measures that lead to underweight of products.
➢ Black marketing and hoarding that eventually leads to scarcity of the product
➢ Overcharging a product, i.e., charging a product above its Maximum Retail Price.
➢ Supplying of defective goods.
➢ Advertisements that are misleading, i.e., advertisements that falsely claim a product or a
service to be shown as superior quality, grade or standard when not in real.
➢ Supply of inferior services, i.e., quality of service lesser than the condition agreed.
NEED FOR CONSUMER PROTECTION
To protect the consumer from prevailing malpractices and from loss or injury from unsafe product and
to ensure:
a. Physical safety of consumer d. Access to information,
b. Consumer satisfaction, e. Social justice and
c. Survival & growth of businesses.

IMPORTANCE OF CONSUMER PROTECTION

Consumer protection has a wide scope. It not only includes educating consumers about their
rights and responsibilities, but also helps in getting their grievances redressed. It requires a
judicial machinery for protecting the interests of consumers.
Importance of consumer protection may be discussed for following groups:
From Consumers’ point of view
The importance of consumer protection from the consumers’ point of view can be
understood from the following points:
1. Consumer Ignorance: Due of widespread it becomes necessary to
educate them about the same so as to achieve consumer awareness.
2. Unorganized Consumers: Consumers need to be organized in the form of
consumer organizations which would take care of their interests.
3. Widespread Exploitation of Consumers: Consumers might be exploited by
unscrupulous, exploitative and unfair trade practices. Consumers need
protection against such malpractices of the sellers

From the point of view of Business

A business must also lay emphasis on protecting the consumers and to
satisfying them. This is important because of the following reasons:
1. Long-term Interest of Business: Enlightened businesses realize that it is in their
long-term interest to satisfy their customers. Satisfied customers not only lead to
repeat sales but also provide good feedback to prospective customers .
2. Business uses Society’s Resources: Business organizations use resources which
belong to the society. They, thus, have a responsibility to supply good products
and render effective and efficient services
3. Social Responsibility: A business has social responsibilities towards various
 interest groups. Thus, like other stakeholders, their interest has to be well taken
care of.
4. Moral Justification: It is the moral duty of any business to take care of consumer’s
interest and avoid any form of their exploitation.
5. Government Intervention: A business engaging in any form of exploitative trade
practices would invite government intervention or action. Thus, it is advisable
that business organizations voluntarily resort to such practices where the
customers’ needs and interests will well be taken care of.
THE C ONSUMER P ROTECTION ACT, 2019
Definition – The Consumer protection Act 2019 seeks to protect and promote the
consumers’ interest through speedy and inexpensive redressal of their grievances. The Act
confers certain rights to consumers with a view to empowering them and to protect their
interests.
Scope – It extends to the whole of India. It is applicable to all types of businesses whether
a manufacturer or a trader and whether supplying goods or providing services including
e-commerce firms.

WHO IS A CONSUMER ?
1. A ‘consumer’ is generally understood as a person who uses or consumes goods or
avails of any service. Under the Consumer Protection Act 2019, a consumer is
a person who buys any goods or avails services for a consideration, which has
been paid or promised, or partly paid and partly promised, or under any scheme of
deferred payment.
2. It also includes any user of such goods or beneficiary of services if such use is
made with the approval of the buyer.
3. It applies to both offline and online transactions thr ough electr onic means or
by teleshopping or direct selling or multilevel marketing. However, any
person who obtains goods or avails services for resale or commercial
purpose is not treated as a consumer and is outside the scope of Consumer
Protection Act 2019.
(A) Complaint – Any allegation made by complainant for taking relief for any reason.
(B) Complainant – Following all are considered as complainant:
1. Any consumer/consumers.
2. A group/organization of consumers,
3. Any government central/state/local bodies.
4. Legal heirs or representative of consumer.
5. Parent or legal representative of minor
(C) Spurious/defective good – Good which is claimed as genuine’
(D) Unfair Practice – Any practice for promotion, sale, use or supply of dubious or low quality good
(E) Restrictive Trade Practice – All manipulatives tactics affecting price, flow of goods or putting
unjustified cost burden on consumers.
(F) Defect – Any fault, flaw, inadequacy in quality of product.
(G) Deficiency – Any fault, imperfection and insufficiency in the services provided by provider.
(H) Injury – Any harm illegally caused to a person in body, mind or property.
(I) Product - "goods" means every kind of movable property and includes "food" as defined in
clause (j) of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006;
CONSUMER RIGHTS UNDER C.P.A. 2019
The Consumer Protection Act 2019 provides for six rights of consumers. These rights include the
following:
1. Right to Safety: The consumer has a right to be protected against goods and services which
are hazardous to life, health and property. For example, electrical appliances which are manufactured
with substandard products or do not conform to the safety norms might cause serious injury. Thus,
consumers are educated that they should use electrical appliances which are ISI marked as this would
be an assurance of such products meeting quality specifications.
2. Right to be informed: The consumer has a right to have complete information about the
product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for
use, etc. It is because of this reason that the legal framework in India requires the manufactures to
provide such information on the package and label of the product.
3. Right to be assured: The consumer has the freedom to access variety of products at competitive
prices. This implies that the marketers should offer a wide variety of products in terms of quality,
brand, prices, size, etc. and allow the consumer to make a choice from amongst these.
4. Right to be heard: The consumer has a right to file a complaint and to be heard in case of
dissatisfaction with a good or a service. It is because of this reason that many enlightened business
firms have set up their own consumer service and grievance cells. Many consumer organizations are
also working towards this direction and helping consumers in redressal of their grievances.
5. Right to seek redressal: The consumer has a right to get relief against unfair trade practice of
restrictive trade practices or unscrupulous exploitation in case the product or a service falls short of
his expectations. The Consumer Protection Act 2019 provides for redressal to the consumers including
replacement of the product, removal of defect in the product, compensation paid for any loss or injury
suffered by the consumer, etc.
6. Right to Consumer Education: The consumer has a right to acquire knowledge and to be a
well-informed consumer throughout life. He should be aware about his rights and the reliefs available
to him in case of a product or service falling short of his expectations. Many consumer organizations
and some enlightened businesses are taking an active part in educating consumers in this respect.
CONSUMER RESPONSIBILITIES
The Consumer Protection Act empowers the consumer to fight against any unscrupulous, exploitative
and unfair, restrictive trade practices adopted by sellers. Consumer rights, by themselves, cannot be
effective in achieving the objective of consumer protection. Consumer protection can, in effect, be
achieved only when the consumers also understand their responsibilities.
1. A consumer should keep in mind the following responsibilities while purchasing, using and
consuming goods and services —
2. Be aware about various goods and services available in the market so that an intelligent and
wise choice can be made.
3. Buy only standardized goods as they provide quality assurance. Thus, look for ISI mark on
electrical goods, FPO mark on food products, Hallmark on jewelry, etc.
4. Learn about the risks associated with products and services, follow manufacturer’s
instructions and use the products safely.
5. Read labels carefully so as to have information about prices, net weight, manufacturing and
expiry dates, etc.
6. Assert yourself to ensure that you get a fair deal.
7. Be honest in your dealings. Choose only from legal goods and services and discourage
unscrupulous practices like black-marketing, hoarding, etc.
8. Ask for a cash memo on purchase of goods or services. This would serve as a proof of the
purchase made.
9. File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of
goods purchased or services availed. Do not fail to take an action even when the amount
involved is small.
10. Form consumer societies which would play an active part in educating consumers and
safeguarding their interests.
11. Respect the environment. Avoid waste, littering and contributing to pollution.

REDRESS AL AGENCIES A V A I L A B L E
CONSUMER P ROTECTION ACT
1. District Commission:
1. District commission has a jurisdiction to entertain complaints where value of goods or services
 paid as consideration does not exceed one crore rupees.
2. Either on the first hearing or at any later stage, it appears to district commission that there
exists elements of settlement which may be acceptable to the parties, it may direct them to
give their consent for settlement of dispute through mediation within five days.
3. In case the parties agree for settlement by mediation and give written consent, the district
commission refers the matter for mediation and the provisions relating to mediation shall
apply.
4. However, in the event of failure of settlement by mediation proceeds with the complaint. If
the complaint alleges defect in goods which cannot be determined without proper analysis or
test of goods, the commission obtains the sample of goods, seal it and refer to the appropriate
authority for analysis.
5. In case of services, the dispute is settled based on the basis of evidence brought to its notice
by the complainant and can ask for any required information document or records from the
service provider for settlement.
6. If any of the parties are not satisfied by the order of District Commission can appeal against
such order to the State Commission on the grounds of facts or law within a period of forty five
days from the date of order.
2. State Commission:
1. It is established by the respective state government and ordinarily function at the state capital.
2. State Commission has a jurisdiction to entertain complaints where value of goods and services
paid as consideration exceeds one crore but does not exceed ten crore rupees.
3. If any of the parties are not satisfied by the order of State Commission can appeal against such
order to the National Commission within a period of thirty days of such order.
3. National Commission:
1. The National Commission has territorial jurisdiction over the whole country.
2. National Commission has a jurisdiction to entertain complaints where value of goods or
services paid as consideration exceeds ten crores of rupees.
3. If any of the parties are not satisfied by the order of National Commission can appeal against
such order to the Supreme Court of India within a period of thirty days of such order.
Redressal Mechanism at a glance
Basis District Commission State Commission National Commission
Meaning A consumer dispute A consumer dispute A consumer dispute redressal
redressal forum at the redressal forum at the State forum at the National level
district level establish by level established by the establish by the Central
State Government is State Government is known Government by notification is
known as District as State Commission. known as National Commission.
Commission.
Territorial Territorial Jurisdiction of It can entertain original It can entertain original cases as
Jurisdiction District Commission is cases as well as appeals well as appeals against the order
entire district in which it against the order of District of State Commission and the
is established. Commission which are Central Authority which are
within the geographical within the geographical limits of
limits of the state. the state.
Composition Not less than two and not Not less than four and not Not less than four and not more
more than such member more than such member of than such number of members as
of members as may be members as may be may be prescribed, in
prescribed, in consultation prescribed, in consultation consultation with the Central
with the Central Govt. with the Central Govt. Government.
Monetary Complaints can be filed if Complaints can be filed if Complaints can be filed if value
Jurisdiction value of goods/services is value of goods/services is of goods/services is more than
up to Rs.1 crore. more than Rs.1 crore & less Rs.10 crore.
than Rs.10 crore.

Relief Available
Where District or State or National Commission is satisfied about defect in goods, or deficiency in
services on any unfair trade practice or claim for compensation under product liability, issues an order:
1. To remove the defect in goods or deficiency in service.
2. To replace the defective product with a new one, free from any defect.
3. To refund the price paid for the product, or the charges paid for the service.
4. To pay a reasonable amount of compensation for any loss or injury suffered by the consumer
due to the negligence of the opposite party.
5. To pay punitive damages in appropriate circumstances.
6. To discontinue the unfair/ restrictive trade practice and not to repeat it in the future.
7. Not to offer hazardous goods for sale.
8. To withdraw the hazardous goods from sale.
9. To cease manufacture of hazardous goods and to desist from offering hazardous services.
10. Compensate for any loss or injury suffered by consumer under product liability action and
withdraw hazardous products from being offered for sale etc.
However, every order of a district commission, the state commission or the national
commission is deemed final if no appeal for such order is made by any of the parties
involved in dispute.
Role of Consumer Organizations and N.G.O.
In India, several consumer organization and non-governmental organization (NGOs) have been set
up for the protection and promotion of consumers’ interests. Non-governmental organizations are
nonprofit organizations which aim at promoting the welfare of people. They have a constitution of
their own and are free from government interference. Consumer organizations and NGOs perform
several functions for the protection and promotion of interest of consumers. These include:
1. Educating the general public about consumer rights by organizing training programs,
seminars and workshops.
2. Publishing periodicals and other publications to impart knowledge about consumer problems,
legal reporting, reliefs available and other matters of interest.
3. Carrying out comparative testing of consumer products in accredited laboratories to test
relative qualities of competing brands and publishing the test results for the benefit of
consumers.
4. Encouraging consumers to strongly protest and take an action against unscrupulous,
exploitative and unfair trade practices of sellers.
5. Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking
legal remedy.
6. Filing complaints in appropriate consumer courts on behalf of the consumers.
7. Taking an initiative in filing cases in consumer courts in the interest of the general public,
not for any individual.
8. Consumer unity and Trust Society (CUTS), Jaipur.8 Certification Marks Issued for different
products in India
Following are some of the quality marks used in India
1. AGMARK – AGMARK is a certification mark used for agricultural products in India. This mark
assures that the product conforms to a set of standards approved by the Directorate of Marketing and
Inspection of the Government of India. Currently, AGMARK standards cover quality guidelines for
various products like essential oils, vegetable oils, pulses, cereals, fruits, vegetable and semi-
processed products like Vermicelli.
2. ISI – ISI Mark is a certification mark used for industrial products in India. This mark assures that
the product conforms to Indian Standards and is issued by the Bureau of Indian Standards (BIS). This
mark is both mandatory and voluntary. Mandatory ISI certification products consist of electrical
appliances, medical equipment, steel products, stainless steel, chemicals, fertilizers, cement, LPG
cylinder, batteries, and packed drinking water.
3. BIS Hallmark – The BIS Hallmark is a marking system, set up to certify the purity of gold jewellery
and gold coins. This mark was introduced for gold in the year 2000 and for silver jewellery in 2005.
BIS certified gold jewellery comes with a BIS stamp.
4. FPO Mark – It is compulsory to have an FPO Mark on all processed fruit products sold in India. The
example of processed fruit products are fruit jams, packaged fruit beverages, crushes, squashes,
pickles, dehydrated fruit products, and fruit extracts. The FPO mark confirms that the product was
manufactured in a hygienic ‘food-safe’ environment and is fit for consumption.
5. The green and brown dot – The green or brown dot is a common mark, printed on almost all food
products. The brown dot on the packed food item indicates that the food is non-vegetarian. On the
other hand, the green dot indicates that the food in the package is vegetarian. These symbols should be
placed at a prominent place on the package.
6. India Organic Certification – The India Organic Certification is a label provided to farm products
processed in India. The certification mark guarantees that an organic food product adheres to the
National Standards for Organic Products. It assures you that the product or the raw materials used in
the product, were grown through organic farming, without using any chemical fertilizers, pesticides,
or induced hormones.
7. Ecomark – This mark is issued by the BIS to those products which conform to a set of standards
aimed at causing the least impact on the ecosystem.
8. FSSAI Logo – Food Safety and standard authority of India is one of the obligatory requirements,
which is not a mark of certification but signifies a valid license for food business operators (FBO) as
per the guidelines given under Food Safety and Standards (FSS) Act, 2006. It is now mandatory as per
FSS Act to display it on your label as it signifies that the product is hygienic and approved. Every
FBO in the country must obtain a 14- digit registration or license number. The FSSAI Logo and
license number shall be displayed on the label of food package in contrast colour to the background.
Following pictures show the quality standard marks of different products.