Business Regulatory Framework The Consumer Protection Act, 2019

Learning Objectives …
• To study the salient features of Consumer Protection Act of 1986 and 2019
• To understand the definition of consumer, complaint, services, defect and deficiency,
complainant, unfair trade practice and restrictive trade practice
• To learn the composition and working of Consumer Protection Councils
• To be able to explain the procedure to file complaint and procedure to deal with
complaint and reliefs available
• To elaborate the composition, jurisdiction, powers and functions of consumer dispute
redressal agencies
• To study the legal issues involved in E-contracts

3.1 Introduction
Today, the role of a consumer is very important in any economy. The entire philosophy
of marketing and business strategies revolve around the consumer. He is the nucleus around
which all business functions revolve. However, in the changing business world, the
consumers’ sovereignty became a myth due to various problems in the processing of
production, distribution of goods and also due to the general lack of awareness that existed
amongst consumers about their own rights. There are various laws which try to protect the
consumers’ interests and rights. They are, namely, Indian Penal Code, Indian Contract Act,
Sale of Goods Act, The Drugs and Cosmetics Act, The Indian Standards Institution
(Certification Marks) Act, The Drugs Control Act, The Standards of Weights and Measures Act,
and The Prevention of Food Adulteration Act being some of them. The procedure laid down
by these laws to protect consumers’ rights is not simple and easy and, hence, the effect of
such legislations to promote consumerism is not adequate. In 1969, the Monopoly and
Restrictive Trade Practices Act, was enacted to prevent concentration of economic power and
to control monopolistic and restrictive trade practices. However, the provisions of this act
were not found sufficient, to protect the consumer from either defective goods or/and
deficiency in services. To overcome such type of difficulty, the Indian Parliament passed a
very important legislation, namely, the Consumer Protection Act, 1986, to protect the
interests of the consumers in a better manner. Now the new law namely “The Consumer
Protection Act, 2019 is enacted by the parliament replacing the old Act of 1986. The present
Act also gives power to helpless consumer to fight for his rights vis-à-vis the powerful
business organisations. It does so, by affording the consumers concerned, a simple, speedy
and inexpensive way for redressing their grievances.
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Background of the Consumer Protection Act, 1986 and of 2019:

As per the principle of caveat emptor (i.e., buyer be aware), the buyer is expected to take
due precaution, before purchasing goods. He is expected to be knowledgeable and well-
informed. But, this position held relevance, a hundred years back when the buyer and seller
were more or less on an equal footing. However, in recent times, with the manufacturing
activities getting organised along larger and more systematic lines, this principle may have
lost much of its earlier relevance.
As a logical corollary, in today’s society, there is every possibility that a buyer could easily
be misled or deceived on account of his being relatively not well-organised. That apart, it is
found that he is neither knowledgeable nor well-informed. It was, therefore, found necessary
to protect and support the common consumers from the clutches of unscrupulous sellers.
This is so, since it was not easy for a common consumer to approach the civil court for
enforcing his rights. The need of the hour was thus for getting quick, cheap and speedy
justice to the consumers. Keeping the aforesaid in view, the guidelines for the protection of
consumers were adopted by the United Nations on 9th April, 1985. In accordance with these
guidelines, all the member countries were expected to make a suitable law. Accordingly, the
Consumer Protection Act, 1986, was enacted. The Act of 1986 intended to provide for better
protection of the interests of consumers and for the establishment of consumer protection
councils and other appropriate authorities for the settlement of consumers’ disputes and for
matters connected therewith. In other words, the object of the Consumer Protection Act, is to
protect the consumers from the exploitative and unfair practices of trade by providing
remedy that is inexpensive, easily accessible and speedy.
The Consumer Protection Act, 1986, was enacted on 24th December, 1986, after
prolonged efforts and sustained struggles of various social organisations. The Act came into
effect from 15th April, 1987. The establishment of redressal agencies in various states and
districts were unfortunately delayed till 1990. The Pune District Consumer’s Disputes
Redressal Forum, was established in January 1990. It was the first district forum to be
established in the country.
The Consumer Protection Act, 2019 was passed by the Parliament on 9th August 2019
and it extends to the whole of India except the State of Jammu and Kashmir. It has come into
force on 20 July 2020 while certain other provisions of the Act like establishing the Central
Consumer Protection Authority came into effect from 24 July 2020.The new Act is enacted
with a view to widen the scope of consumer rights and cover the field of E-Commerce, direct
selling, tele-shopping and other multilevel of marketing in the age of digitisation. This new
Act will empower consumers and help them in protecting their rights through its various
notified Rules and provisions like Consumer Protection Councils, Consumer Disputes
Redressal Commissions, Mediation, Product Liability and punishment for manufacture or sale
of products containing adulterant / spurious goods.
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The new Act aims to provide for protection of the interests of consumers and for the said
purpose, to establish authorities for timely and effective administration and settlement of
consumers’ disputes and for matters connected therewith or incidental thereto.
3.2 Salient Features of the Consumer Protection Act, 1986 and
2019
Salient Features of the Consumer Protection Act, 1986:
1. The Consumer Protection Act, 1986 is enacted to provide better protection of
interest to the consumer.
2. Being a social legislation, the objective is to provide inexpensive and speedy
justice to a small consumer.
3. To deliver justice without the assistance of lawyers and also without any fee for
poor people and with moderate fees for others.
4. The Consumer Protection Act applies to all goods and services unless specifically
exempted by the Central Government. It affords remedy if “a consumer is provided
with defective goods or deficiency in service.”
5. It covers all sectors, be it private, public or co-operative.
6. It envisages the formation of three-tier quasi-judicial machinery at national,
state and district levels for redressal of the consumers’ disputes.
7. The provisions of the Act are in addition to and not derogation of the provisions of
any law for the time being in force.
8. The Act intends to make provision for the establishment of consumer protection
councils and other authorities for the settlement of consumer disputes and for
matters connected therewith.
9. The Act provides power to the adjudicating panel to direct the trader/
manufacturer to remove the defect or replace the defective product with a new
one.
10. The Act provides for appointing a woman as a member on the judging panel.
11. The public utility services like Railways, Electricity, Telephone, Insurance etc. are
also covered under the Consumer Protection Act.
12. The Act has made provisions for imposing penalty as well as imprisonment
ranging from one month to three years and/or fine from ` 2,000 to ` 10,000 on the
party who does not comply with the orders passed by the Consumer Disputes
Redressal Forum.
The salient features of the New Act of 2019 are as under:
1. Wider definition of Consumer: It has widened the definition of ‘consumer’.
2. Establishment of CCPA: It proposes the establishment of the Central Consumer
Protection Authority (CCPA) as a regulatory authority to promote, protect and
enforce the rights of consumers. The CCPA will be empowered to conduct
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investigations into violations of consumer rights and institute complaints /

prosecution, order recall of unsafe goods and services, order discontinuance of unfair
trade practices and misleading advertisements, impose penalties on manufacturers/
endorsers/publishers of misleading advertisements.
3. Flexibility to File Complaint: It provides flexibility to the consumer to file complaints
with the jurisdictional consumer commission located at the place of residence or
work of the consumer.
4. Product Liability: This New Act introduces the concept of product liability and brings
within its scope, the product manufacturer, product service provider and product
seller, for any claim for compensation.
5. ADR Mechanism of Mediation: It provides for mediation as an ‘Alternate Dispute
Resolution Mechanism’ (ADR). For mediation, there will be a strict timeline fixed in
the rules. A complaint will be referred by a Consumer Commission for mediation,
wherever scope for early settlement exists and parties agree for it. Mediation will be
held in the Mediation Cells to be established under the aegis of the Consumer
Commissions. There will be no appeal against settlement through mediation.
6. UTP: It has armed the authorities to take action against unfair trade practices (UTP)
too.
7. Products and Services: It is applicable to all the products and services, until or unless
any product or service is especially debarred out of the scope of this Act by the
Central Government.
8. E-Commerce: Every e-commerce entity is required to provide information relating to
return, refund, exchange, warranty and guarantee, delivery and shipment, modes of
payment, grievance redressal mechanism, payment methods, security of payment
methods, charge-back options, etc. including country of origin which are necessary
for enabling the consumer to make an informed decision at the pre-purchase stage
on its platform. The e-commerce platforms have to acknowledge the receipt of any
consumer complaint within forty-eight hours and redress the complaint within one
month from the date of receipt under this Act.
9. Simplified Adjudication Process: The new Act provides for simplifying the
consumer dispute adjudication process in the consumer commissions, which include,
among others, empowerment of the State and District Commissions to review their
own orders, enabling a consumer to file complaints electronically and file complaints
in consumer Commissions that have jurisdiction over the place of his residence,
videoconferencing for hearing and deemed admissibility of complaints if the question
of admissibility is not decided within the specified period of 21 days.
10. No Fees: As per the Consumer Disputes Redressal Commission Rules, there will be no
fee for filing cases up to ` 5 lakh.
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11. E-Complaints and CWF: There are provisions for filing complaints electronically,
credit of amount due to unidentifiable consumers to Consumer Welfare Fund (CWF).
12. Furnishing Information to Government: The State Commissions will furnish
information to Central Government on a quarterly basis on vacancies, disposal,
pendency of cases and other matters.
13. Penal Provisions: The Act provides for punishment by a competent court for
manufacture or sale of adulterant/spurious goods. The court may, in case of first
conviction, suspend any license issued to the person for a period of up to two years,
and in case of second or subsequent conviction, cancel the license.
14. Rules for better execution of the Act: Under this new Act, besides general rules,
there are Central Consumer Protection Council Rules, Consumer Disputes Redressal
Commission Rules, Appointment of President and Members in State/District
Commission Rules, Mediation Rules, Model Rules and E-Commerce Rules and
Consumer Commission Procedure Regulations, Mediation Regulations and
Administrative control over State Commission and District Commission Regulations.
15. The Central Consumer Protection Council: The Central Consumer Protection
Council Rules are provided for constitution of the Central Consumer Protection
Council, an advisory body on consumer issues, headed by the Union Minister of
Consumer Affairs, Food and Public Distribution with the Minister of State as Vice
Chairperson and 34 other members from different fields. The Council, which has a
three-year tenure, will have Minister-in-charge of consumer affairs from two States
from each region- North, South, East, West, and NER. There is also provision for
having working groups from amongst the members for specific tasks.
16. Rights of the Consumers [Section 2(9)]: The Consumer Protection Act is intended
to protect the following rights of the consumer.
(i) Right to safety: This is a right to protection from making goods, product and
services, which are hazardous to life and property.
(ii) Right to information: This is a right to be informed about the quality,
quantity, purity, standard and price of the goods, product or services, so that
the consumers are protected from unfair trade practices.
(iii) Right to choose: This is a right to have access to a variety of goods, product
and services at competitive prices.
(iv) Right to be heard: This right to be heard and to be assured that consumers
interests will receive due consideration.
(v) Right to seek Redressal: This right is to stop or restrict unfair trade practices,
or unscrupulous exploitation of consumers.
(vi) Right to consumer education or the right to consumer awareness.
(vii) Right of speedy and simple redressal of consumer disputes.

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3.3 Important Definitions

A. Who is a ‘consumer’?
According to the Oxford Dictionary, the meaning of a ‘consumer’ is a purchaser of goods
or services. A consumer is a person who buys any commodities to consume either as an
eatable or otherwise from shop, business house, corporation, store, fair prices shop.
According to the Section 2(7) of the Consumer Protection Act, 2019, "consumer" means
any person who:
(i) buys any goods for a consideration which has been paid or promised or partly paid
and partly promised, or under any system of deferred payment and includes any
user of such goods other than the person who buys such goods for consideration
paid or promised or partly paid or partly promised, or under any system of
deferred payment, when such use is made with the approval of such person, but
does not include a person who obtains such goods for resale or for any commercial
purpose; or
(ii) hires or avails of any service for a consideration which has been paid or promised
or partly paid and partly promised, or under any system of deferred payment and
includes any beneficiary of such service other than the person who hires or avails of
the services for consideration paid or promised, or partly paid and partly promised,
or under any system of deferred payment, when such services are availed of with
the approval of the first mentioned person, but does not include a person who
avails of such service for any commercial purpose.
Explanation: For the purposes of this clause,
(a) the expression "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;
(b) the expressions "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;
In this definition, the consumer is not only a purchaser of goods or hirer of services, but
even those who use the goods or who are beneficiaries of services with the approval of the
person who purchased the goods or who hired services are included in it.
The Supreme Court, while elaborating on the term ‘consumer’ has observed in the case
of Morgan Stanley Mutual Fund vs. Kartick Das that the consumer is one who consumes.
The meaning of the word consumer is broadly stated in the above definition so as to include
anyone who consumes goods or services at the end of the chain of production. The
comprehensive definition aims at covering every man who pays the money as the price or
cost of the goods and services. In short, any person who
1. Buys goods for consideration, or
2. Hires or avails of any service for consideration, is a consumer.
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A railway passenger, a parent who brings the child to the hospital, flat or house
purchaser, a patient in hospital, an employee who is a member of Employees’ Provident Fund
Scheme, a nominee under a policy of life insurance, a person using electricity etc. are termed
as consumer.
However, one has to keep in mind that a person who buys goods for resale or
commercial purposes or avails services for commercial purposes is specifically, excluded from
the definition of ‘consumer’. It has been held by the Supreme Court in various cases that
consumer forums have the requisite power to decide whether or not a person is a consumer
and has valid grounds for relief.
Who is not a ‘consumer’?
The word consumer does not include
(a) One who buys goods or avails services for commercial purposes; or
(b) One who has not himself purchased the goods. It means a person cannot make a
complaint unless he has actually purchased the goods or availed of the services. It
is to be noted that this condition is not applicable in the case of complaints made
by voluntary consumer associations or by the government. For this purpose, the
voluntary consumer association is not required to be registered with any authority.
B. Complaint’ [Section 2(6)]:
"Complaint" means any allegation in writing, made by a complainant for obtaining any
relief provided by or under this Act, that −
(i) an unfair contract or unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provider;
(ii) the goods bought by him or agreed to be bought by him suffer from one or more
defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him suffer
from any deficiency;
(iv) a trader or a service provider, as the case may be, has charged for the goods or for
the services mentioned in the complaint, a price in excess of the price −
(a) fixed by or under any law for the time being in force; or
(b) displayed on the goods or any package containing such goods; or
(c) displayed on the price list exhibited by him by or under any law for the time
being in force; or
(d) agreed between the parties;
(v) the goods, which are hazardous to life and safety when used, are being offered for
sale to the public −
(a) in contravention of standards relating to safety of such goods as required to
be complied with, by or under any law for the time being in force;
(b) where the trader knows that the goods so offered are unsafe to the public;

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(vi) the services which are hazardous or likely to be hazardous to life and safety of the
public when used, are being offered by a person who provides any service and who
knows it to be injurious to life and safety;
(vii) a claim for product liability action lies against the product manufacturer, product
seller or product service provider, as the case may be;
It is to be noted that the definition of trader is wide and it includes manufacturer also.
C. ‘Consumer disputes’ [Section 2(8)] :
‘Consumer dispute’ means a dispute where the person against whom a complaint has
been made, denies or disputes the allegations contained in the complaint.
The allegations mentioned in the complaint referred above, may pertain to ‘defect in
goods’, ‘deficiency in services’, overcharging, sale of hazardous goods, adoption of unfair
trade practices and restrictive trade practices. Consumer dispute is the dispute between two
persons, wherein one of them is the consumer and, another is, generally, a seller or service
giver. This act empowers the consumer to claim compensation for the losses he suffered, due
to defective goods or deficiency in services.
D. ‘Defect’ [Section 2(10)]
"Defect " means any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained by or under any law for the time being
in force or under any contract, express or implied or as is claimed by the trader in any
manner whatsoever in relation to any goods or product and the expression "defective " shall
be construed accordingly;
As a consumer dispute presupposes an existing contract between consumer and seller/
manufacturer/trader, defect in quality, potency, purity or standard is required to be
examined, either from the ‘requirement under any law in force’ at the relevant time or ‘terms
and conditions of the contract’, whether expressed or implied.
E. ‘Deficiency’ [Section 2(11)]
"Deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance which is required to be maintained by or under any law
for the time being in force or has been undertaken to be performed by a person in
pursuance of a contract or otherwise in relation to any service and includes--
(i) any act of negligence or omission or commission by such person which causes loss
or injury to the consumer; and
(ii) deliberate withholding of relevant information by such person to the consumer;
From the above definitions, it is clear that the term ‘defect’ relates to the goods and
‘deficiency’ relate to the services.
The said ‘deficiency’ is expected as per existing law and the contract (written/oral and
implied) between the parties. Any breach of contract constitutes the deficiency in services
and cause for compensation under the Consumer Protection Act. However, the services
rendered free of charge are not within the purview of the Consumer Protection Act.
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The circumstances mentioned below have been held by the various judicial authorities/
courts to be deficiency in services.
1. Insurance: A default or negligence in regard to settlement of an insurance claim,
would constitute deficiency in services on the part of insurance company.
2. Banking: If ornaments kept in a bank’s locker are found lost, then, the bank is
liable for deficiency in services. Issuing demand draft without a signature of its
manager is held to be deficiency in service.
3. Medical negligence: Doctors are held guilty of medical negligence only when they
fall short of the standard of reasonable care.
4. Transport services: Any defect in the food supplied in air travel by airlines is
regarded as a deficiency in air ticket.
5. Housing services: Delay in handing over delivery of possession of flat to the
consumer by the promoter/builder, despite of payment of full price.
6. Electricity: Disconnecting the supply of electricity without prior notice is a
deficiency in services.
7. Courier: Loss of a consignment by a courier company, is held to be deficiency in
services.
8. Post: Late delivery of a Speed Post or Registered A.D. letter is held to be deficiency
in services.
In this Act, unless the context otherwise requires,--
F. 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;
G. Appropriate Laboratory:
[Section 2(2)] "appropriate laboratory" means a laboratory or an organisation −
(i) recognised by the Central Government; or
(ii) recognised by a State Government, subject to such guidelines as may be issued by
the Central Government in this behalf; or
(iii) established by or under any law for the time being in force, which is maintained,
financed or aided by the Central Government or a State Government for carrying
out analysis or test of any goods with a view to determining whether such goods
suffer from any defect;
H. Design:
[Section 2(12)] "design ", in relation to a product, means the intended or known physical
and material characteristics of such product and includes any intended or known formulation
or content of such product and the usual result of the intended manufacturing or other
process used to produce such product;
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I. Direct Selling:
[Section 2(13)] "direct selling" means marketing, distribution and sale of goods or
provision of services through a network of sellers, other than through a permanent retail
location;
J. E-Commerce:
[Section 2(16)] "e-commerce” means buying or selling of goods or services including
digital products over digital or electronic network;
K. Electronic Service Provider:
[Section 2(17)] "electronic service provider" means a person who provides technologies
or processes to enable a product seller to engage in advertising or selling goods or services
to a consumer and includes any online market place or online auction sites;
L. Endorsement:
[Section 2(18)] "endorsement", in relation to an advertisement, means--
(i) any message, verbal statement, demonstration; or
(ii) depiction of the name, signature, likeness or other identifiable personal
characteristics of an individual; or
(iii) depiction of the name or seal of any institution or organisation, which makes the
consumer to believe that it reflects the opinion, finding or experience of the person
making such endorsement;
M. Establishment:
[Section 2(19)] "establishment" includes an advertising agency, commission agent,
manufacturing, trading or any other commercial agency which carries on any business, trade
or profession or any work in connection with or incidental or ancillary to any commercial
activity, trade or profession, or such other class or classes of persons including public utility
entities in the manner as may be prescribed;
N. Express Warranty:
[Section 2(20)] "express warranty" means any material statement, affirmation of fact,
promise or description relating to a product or service warranting that it conforms to such
material statement, affirmation, promise or description and includes any sample or model of
a product warranting that the whole of such product conforms to such sample or model;
O. Goods:
[Section 2(21)] "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 (34 of 2006);
P. Harm:
[Section 2 (22)] "harm", in relation to a product liability, includes −
(i) damage to any property, other than the product itself;
(ii) personal injury, illness or death;
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(iii) mental agony or emotional distress attendant to personal injury or illness or

damage to property; or
(iv) any loss of consortium or services or other loss resulting from a harm referred to in
subclause (i) or sub-clause (ii) or sub-clause (iii), but shall not include any harm
caused to a product itself or any damage to the property on account of breach of
warranty conditions or any commercial or economic loss, including any direct,
incidental or consequential loss relating thereto;
Q. Injury:
Section 2(23) "injury" means any harm whatever illegally caused to any person, in body,
mind or property;
R. Manufacturer:
[Section 2 (24)] "manufacturer" means a person who −
(i) makes any goods or parts thereof; or
(ii) assembles any goods or parts thereof made by others; or
(iii) puts or causes to be put his own mark on any goods made by any other person;
S. Mediation:
[Section 2 (25)] "mediation" means the process by which a mediator mediates the
consumer disputes;
T. Misleading Advertisement:
[Section 2(28)] "misleading advertisement" in relation to any product or service, means
an advertisement, which −
(i) falsely describes such product or service; or
(ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature,
substance, quantity or quality of such product or service; or
(iii) conveys an express or implied representation which, if made by the manufacturer
or seller or service provider thereof, would constitute an unfair trade practice; or
(iv) deliberately conceals important information;
U. Person:
[Section 2 (31)] "person" includes −
(i) an individual;
(ii) a firm whether registered or not;
(iii) a Hindu undivided family;
(iv) a co-operative society;
(v) an association of persons whether registered under the Societies Registration Act,
1860 (21 of 1860) or not;
(vi) any corporation, company or a body of individuals whether incorporated or not;
(vii) any artificial juridical person, not falling within any of the preceding sub-clauses;
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V. Product:
[Section 2(33)] "product" means any article or goods or substance or raw material or any
extended cycle of such product, which may be in gaseous, liquid, or solid state possessing
intrinsic value which is capable of delivery either as wholly assembled or as a component part
and is produced for introduction to trade or commerce, but does not include human tissues,
blood, blood products and organs;
Section 2(34): "product liability" means the responsibility of a product manufacturer or
product seller, of any product or service, to compensate for any harm caused to a consumer
by such defective product manufactured or sold or by deficiency in services relating thereto;
Section 2(35): "product liability action" means a complaint filed by a person before a
District Commission or State Commission or National Commission, as the case may be, for
claiming compensation for the harm caused to him;
Section 2(36): "product manufacturer" means a person who--
(i) makes any product or parts thereof; or
(ii) assembles parts thereof made by others; or
(iii) puts or causes to be put his own mark on any products made by any other person;
or
(iv) makes a product and sells, distributes, leases, installs, prepares, packages, labels,
markets, repairs, maintains such product or is otherwise involved in placing such
product for commercial purpose; or
(v) designs, produces, fabricates, constructs or re-manufactures any product before its
sale; or
(vi) being a product seller of a product, is also a manufacturer of such product;
Section 2(37): "product seller", in relation to a product, means a person who, in the
course of business, imports, sells, distributes, leases, installs, prepares, packages, labels,
markets, repairs, maintains, or otherwise is involved in placing such product for commercial
purpose and includes −
(i) a manufacturer who is also a product seller; or
(ii) a service provider, but does not include −
(a) a seller of immovable property, unless such person is engaged in the sale of
constructed house or in the construction of homes or flats;
(b) a provider of professional services in any transaction in which, the sale or use
of a product is only incidental thereto, but furnishing of opinion, skill or
services being the essence of such transaction;
(c) a person who −
(I) acts only in a financial capacity with respect to the sale of the product;
(II) is not a manufacturer, wholesaler, distributor, retailer, direct seller or an
electronic service provider;

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(III) leases a product, without having a reasonable opportunity to inspect and

discover defects in the product, under a lease arrangement in which the
selection, possession, maintenance, and operation of the product are
controlled by a person other than the lessor;
Section 2(38): "product service provider", in relation to a product, means a person who
provides any service in respect of such product;
Section 2(39): "regulations" means the regulations made by the National Commission,
or as the case may be, the Central Authority;
Section 2 (45) "trader", in relation to any goods, means a person who sells or distributes
any goods for sale and includes the manufacturer thereof, and where such goods are sold or
distributed in package form, includes the packer thereof;
W. ‘Service’ [Section 2(42)]:
"Service" means service of any description which is made available to potential users and
includes, but not limited to, the provision of facilities in connection with banking, financing,
insurance, transport, processing, supply of electrical or other energy, telecom, boarding or
lodging or both, housing construction, entertainment, amusement or the purveying of news
or other information, but does not include the rendering of any service free of charge or
under a contract of personal service;
It is clear from the above definition that ‘services rendered free of charge’ is excluded
from the definition of ‘service’. Besides that ‘rendering of services under the contract of
personal service’ is also excluded. At this stage, we must know the difference between
‘Contract of Service’ and ‘Contract for Service’. Contract of personal services is excluded from
the definition of ‘service’. In contract of service, the master can order or require what is to be
done and how it is to be done. This is a ‘contract of personal service’ and, hence, not covered
by Consumer Protection Act because a master can always terminate the services of such
servants at any time, and, therefore, he may not have any occasion where he has to complain
about services. However, in a ‘contract for service’, the person cannot order what is to be
done or how it is to be done. For example, professional services, such as doctor-patient or
lawyer-client relationship. Therefore, the ‘doctor-patient’ relationship is a ‘contract for
service’ and, hence, is covered under the Consumer Protection Act.
According to various judicial pronouncements, all professional services, services of
advocates, share brokers, Provident Fund Commissioner etc., are held as “Contract for a
Service’ and hence, covered under the Consumer Protection Act. At the same time,
‘conducting university/board examinations’, ‘registration of document by government’ etc.,
are held as to be no services.
X. Complainant [Section 2(5)]
"Complainant" means −
(i) a consumer; or
(ii) any voluntary consumer association registered under any law for the time being in
force; or
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(iii) the Central Government or any State Government; or

(iv) the Central Authority; or
(v) one or more consumers, where there are numerous consumers having the same
interest; or
(vi) in case of death of a consumer, his legal heir or legal representative; or
(vii) in case of a consumer being a minor, his parent or legal guardian;
All the above mentioned entities can file a complaint with a District Commission. Where
a group of persons having same interest, takes collective action in the judicial forum, it is
called as ‘class action’.
Under the Consumer Protection Act, ‘class action’ is allowed to a group of consumers.
Similarly, any recognised voluntary consumers association can also be a complainant. Any
voluntary consumer association registered under law, such as, Companies Act, Society’s
Registration Act, Co-operative Societies Act, will be considered as recognised consumer’s
association and, hence, is eligible to be a complainant under the Consumer Protection Act.
Before taking such a ‘class action’ prior permission of the consumer commission is necessary.
The State/Central Government can file complaint in the Consumer Forum either in its
individual capacity or as a representative of consumers’ interests in general.
Section 2 (46) "unfair contract" means a contract between a manufacturer or trader or
service provider on one hand, and a consumer on the other, having such terms which cause
significant change in the rights of such consumer, including the following, namely:
(i) requiring manifestly excessive security deposits to be given by a consumer for the
performance of contractual obligations; or
(ii) imposing any penalty on the consumer, for the breach of contract thereof which is
wholly disproportionate to the loss occurred due to such breach to the other party
to the contract; or
(iii) refusing to accept early repayment of debts on payment of applicable penalty; or
(iv) entitling a party to the contract to terminate such contract unilaterally, without
reasonable cause; or
(v) permitting or has the effect of permitting one party to assign the contract to the
detriment of the other party who is a consumer, without his consent; or
(vi) imposing on the consumer any unreasonable charge, obligation or condition which
puts such consumer to disadvantage;
Y. Unfair Trade Practice (Section 2(47)]:
"Unfair trade practice" means a trade practice which, for the purpose of promoting the
sale, use or supply of any goods or for the provision of any service, adopts any unfair method
or unfair or deceptive practice including any of the following practices, namely:
(i) making any statement, whether orally or in writing or by visible representation
including by means of electronic record, which −

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(a) falsely represents that the goods are of a particular standard, quality, quantity,
grade, composition, style or model;
(b) falsely represents that the services are of a particular standard, quality or grade;
(c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods
as new goods;
(d) represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, uses or benefits which such goods or services do not
have;
(e) represents that the seller or the supplier has a sponsorship or approval or affiliation
which such seller or supplier does not have;
(f) makes a false or misleading representation concerning the need for, or the
usefulness of, any goods or services;
(g) gives to the public any warranty or guarantee of the performance, efficacy or
length of life of a product or of any goods that is not based on an adequate or
proper test thereof:
Provided that where a defence is raised to the effect that such warranty or guarantee is
based on adequate or proper test, the burden of proof of such defence shall lie on the
person raising such defence;
(h) makes to the public a representation in a form that purports to be −
(A) a warranty or guarantee of a product or of any goods or services; or
(B) a promise to replace, maintain or repair an article or any part thereof or to
repeat or continue a service until it has achieved a specified result, if such
purported warranty or guarantee or promise is materially misleading or if
there is no reasonable prospect that such warranty, guarantee or promise will
be carried out;
(i) materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided, and,
for this purpose, a representation as to price shall be deemed to refer to the price
at which the product or goods or services has or have been sold by sellers or
provided by suppliers generally in the relevant market unless it is clearly specified
to be the price at which the product has been sold or services have been provided
by the person by whom or on whose behalf the representation is made;
(j) gives false or misleading facts disparaging the goods, services or trade of another
person.
Explanation: For the purposes of this sub-clause, a statement that is,
(A) expressed on an article offered or displayed for sale, or on its wrapper or container;
or
(B) expressed on anything attached to, inserted in, or accompanying, an article offered
or displayed for sale, or on anything on which the article is mounted for display or
sale; or
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(C) contained in or on anything that is sold, sent, delivered, transmitted or in any other
manner whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by, and only by, the person
who had caused the statement to be so expressed, made or contained;
(ii) permitting the publication of any advertisement, whether in any newspaper or
otherwise, including by way of electronic record, for the sale or supply at a bargain
price of goods or services that are not intended to be offered for sale or supply at
the bargain price, or for a period that is, and in quantities that are, reasonable,
having regard to the nature of the market in which the business is carried on, the
nature and size of business, and the nature of the advertisement.
Explanation: For the purpose of this sub-clause, "bargain price" means,
(A) a price that is stated in any advertisement to be a bargain price, by reference to an
ordinary price or otherwise; or
(B) a price that a person who reads, hears or sees the advertisement, would reasonably
understand to be a bargain price having regard to the prices at which the product
advertised or like products are ordinarily sold;
(iii) permitting −
(a) the offering of gifts, prizes or other items with the intention of not providing
them as offered or creating impression that something is being given or
offered free of charge when it is fully or partly covered by the amount
charged, in the transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of
promoting, directly or indirectly, the sale, use or supply of any product or any
business interest, except such contest, lottery, game of chance or skill as may
be prescribed;
(c) withholding from the participants of any scheme offering gifts, prizes or other
items free of charge on its closure, the information about final results of the
scheme.
Explanation: For the purpose of this sub-clause, the participants of a scheme shall be
deemed to have been informed of the final results of the scheme where such results are
within a reasonable time published, prominently in the same newspaper in which the scheme
was originally advertised;
(iv) permitting the sale or supply of goods intended to be used, or are of a kind likely
to be used by consumers, knowing or having reason to believe that the goods do
not comply with the standards prescribed by the competent authority relating to
performance, composition, contents, design, constructions, finishing or packaging
as are necessary to prevent or reduce the risk of injury to the person using the
goods;

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(v) permitting the hoarding or destruction of goods, or refusal to sell the goods or to
make them available for sale or to provide any service, if such hoarding or
destruction or refusal raises or tends to raise or is intended to raise, the cost of
those or other similar goods or services;
(vi) manufacturing of spurious goods or offering such goods for sale or adopting
deceptive practices in the provision of services;
(vii) not issuing bill or cash memo or receipt for the goods sold or services rendered in
such manner as may be prescribed;
(viii) refusing, after selling goods or rendering services, to take back or withdraw
defective goods or to withdraw or discontinue deficient services and to refund the
consideration thereof, if paid, within the period stipulated in the bill or cash memo
or receipt or in the absence of such stipulation, within a period of thirty days;
(ix) disclosing to other person any personal information given in confidence by the
consumer unless such disclosure is made in accordance with the provisions of any
law for the time being in force.
In short, we can say that, Unfair trade practice means any unfair or deceptive method or
practice adopted by a seller for the purpose of promoting the sale, use or supply of any
goods or for the provision of any service. Such unfair trade practice will include, inter alia,
making false or misleading representations about the standard/quality/quantity/grade,
falsely representing old goods as new goods, non-compliance of product safety standard,
hoarding, or destruction of goods etc.
The term ‘spurious goods’ referred in above definition is defined in Section 2(43) of the
Consumer Protection Act. Accordingly, “spurious goods” mean such goods which are claimed
to be genuine, but are actually not so.
Z. Restrictive Trade Practice [Section 2(41)]
‘Restrictive trade practice’ means a trade practice which tends to bring about
manipulation of price or its conditions of delivery or to affect the flow of supplies in the
market relating to goods or services, in such a manner, as to impose on the consumers
unjustified costs or restrictions and shall include
(a) Delay beyond the period agreed to by a trader in supply of such goods or in
providing the services which has led or is likely to lead to rise in the price;
(b) Any trade practice which requires a consumer to buy, hire or avail of any goods or,
as the case may be, services as condition precedent to buying, hiring or availing of
other goods or services.
3.4 Consumer Protection Councils (Sections 3 to 9)
In the object clause of the Consumer Protection Act, 1986 it was mentioned that the Act
is to provide for better protection for the interest of the consumer and for that purpose to
make provision for the establishment of consumer councils and other authorities for the
settlement of consumers’ disputes. Even, the Consumer Protection Act, 2019 provides for
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formation of Central Consumer Protection Council at national level, (Section 3), State
Consumer Protection Council in each state, (Section 6), and, District Consumer Protection
Council headed by the Collector of the District, (Section 8). The minister in-charge of
consumer affairs in the Central Government shall be the Chairman of National Council and, it
has other official and non-official members [Section 3(2)].
The Central Council is supposed to meet at least once in a year (Section 4) and State
Consumer Council is expected to meet twice a year (Section 6). The District Council shall
meet as and when necessary but not less than two meetings shall be held every year
(Section 8). The objects of state consumer protection councils and the district consumer
councils are to promote and protect the rights of the consumers as mentioned in the above
clauses (a) to (f) of Section 6. A ‘standing working group’ of up to thirty members out of
central council can be formed to monitor the implementation of the recommendations of the
central council.
The detailed provisions are discussed as under.
A. The Central Consumer Protection Council [Section 3]
Establishment: The Central Government shall, by notification establish with effect from
such date as it may specify in such notification, a council to be known as the Central
Consumer Protection Council (hereinafter referred to as the Central Council).
• Composition [Section 3]:
The Central Council shall consist of the following members, namely:
(a) The Minister in-charge of the consumer affairs of the Central Government, who
shall be its Chairman, and
(b) Such number of other official or non-official members representing such interests
as may be prescribed.
As per above provision the Central government has made rules namely ‘Central
Consumer Protection Council) Rules, 2020’ (which came into effect from 20th day of July,
2020). As per these rules.
Composition of Central Council (Rule 3): The Central Government shall, by notification
in the Official Gazette, establish the Central Council which shall consist of the following
members, not exceeding thirty-six, namely:
(a) the Minister in-charge of Consumer Affairs in the Central Government who shall be
the Chairperson of the Central Council;
(b) the Minister of State (where he is not holding independent charge) or Deputy
Minister in charge of Consumer Affairs in the Central Government who shall be the
Vice-Chairperson of the Central Council;
(c) the Minister in-charge of Consumer Affairs of two of the States from each region as
mentioned in Schedule I to be changed by rotation on expiration of the term of the
Central Council on each occasion;
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[SCHEDULE I contains following regions namely −

(1) Eastern Region - to consist of the States of Bihar, Chattisgarh, Jharkhand,
Odisha, and West Bengal,
(2) Western Region - to consist of the States of Goa, Gujarat, Maharashtra,
Madhya Pradesh and Rajasthan.
(3) Northern Region - to consist of the States of Haryana, Himachal Pradesh,
Punjab, Uttar Pradesh and Uttarakhand.
(4) Southern Region - to consist of the States of Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu and Telangana.
(5) North Eastern Region – to consist of the States of Arunachal Pradesh, Assam,
Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim]
(d) an administrator (whether designated as administrator or Lieutenant Governor) of a
Union territory, to represent that Union territory, as mentioned in Schedule II, to be
changed by rotation on expiration of the term of the Central Council on each
occasion;
[SCHEDULE II contains - The Union territories of the Andaman and Nicobar Islands,
Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Jammu and Kashmir, Ladakh,
Lakshadweep, Puducherry, the National Capital Territory of Delhi.]
(e) two Members of Parliament − one from the Lok Sabha and one from the Rajya
Sabha;
(f) representatives of Departments of the Central Government, autonomous
organisations or regulators concerned with consumer interests, not exceeding five
to be nominated by the Central Government;
(g) the Chief Commissioner of the Central Consumer Protection Authority;
(h) the Registrar, National Consumer Disputes Redressal Commission, New Delhi;
(i) representatives of consumer organisations not exceeding five, to be nominated by
the Central Government;
(j) representatives with proven expertise and experience who are capable of
representing consumer interests, drawn from amongst consumer organisations,
consumer activists, research and training organisations, academicians, farmers,
trade or industry, not exceeding five, one from each of the regions specified in
Schedule I, of whom at least one shall be a woman;
(k) the Secretaries in-charge of Consumer Affairs in the States, not exceeding three, to
be nominated by the Central Government;
(l) the Secretary in-charge of Consumer Affairs in the Central Government shall be the
Member-Secretary of the Central Council.
Term of Central Council (Rule 4): The term of the Central Council shall be three years:
Provided that the Central Council shall continue to function for a further period of three
months or till it is reconstituted, whichever is earlier.
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Vacancy caused by resignation (Rule 5 and 6): If any member resigns, his vacancy may
be filled by a fresh appointment from the same category of members by the Central
Government. Such a new member shall hold office only for the period of time that the
original member would have been entitled to hold office had the vacancy not occurred.
Working Groups (Rule 7): The Central Council may constitute from amongst its
members working groups so as perform its functions and assign the task to such groups. The
working groups will be given time frame to complete the task. The working groups shall
report to the Chairperson of the Central Council. The working group shall cease to function
on the completion of the task for which it was constituted.
Meetings of Central Council for transaction of business (Rule 8): The meetings of the
Central Council shall ordinarily be held in the National Capital Territory of Delhi, however, the
Central Council is empowered to hold its meetings at any other place in India, if it is
expedient so to do.
Procedure for meetings of the Central Council (Section 4):
The Central Council shall meet as and when necessary, but [at least one meeting] of the
council shall be held every year [Section 4(1)].
The Central Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as may be
prescribed [Section 4(2)].
Objects of Central Council (Section 5)
The objects of the Central Council shall be to render advice on promotion and protection
of the consumers' rights under this Act the Consumer Protection.
B. The State Consumer Protection Councils (Section 6):
Establishment [Section 6(1)]:
Every State Government shall, by notification, establish with effect from such date as it
may specify in such notification, a State Consumer Protection Council (hereinafter referred to
as the State Council) for such State to be known as the State Council. [Section 6(1)]. for
example, Consumer Protection Council for Maharashtra.
Composition of State Council [Section 6(2)]: The State Council shall be an advisory
council and consist of the following members, namely:
(a) the Minister-in-charge of Consumer Affairs in the State Government who shall be
the Chairperson;
(b) such number of other official or non-official members representing such interests
as may be prescribed;
(c) such number of other official or non-official members, not exceeding ten, as may
be nominated by the Central Government.
Number of Meetings [Section 6(3)]:
The State Council shall meet as and when necessary but not less than two meetings shall
be held every year.

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Time and Place of Meeting [Section 6(4)]: The State Council shall meet at such time
and place as the Chairperson may think fit and shall observe such procedure in regard to the
transaction of its business, as may be prescribed.
Objects of the State Council (Section 7):
The objects of every State Council shall be to render advice on promotion and protection
of consumer rights under this Act within the State.
C. The District Consumer Protection Council (Section 8):
Establishment [Section 8(1)]:
The State Government shall, by notification, establish for every District with effect from
such date as it may specify in such notification, a District Consumer Protection Council to be
known as the District Council. [Section 8(1)].
Composition [Section 8(2)]:
The District Council shall be an advisory council and consist of the following members,
namely:
(a) the Collector of the district (by whatever name called), who shall be the
Chairperson; and
(b) such number of other official and non-official members representing such interests
as may be prescribed.
Number of Meetings:
The District Council shall meet as and when necessary but not less than two meetings
shall be held every year [Section 8(3)].
Time and Place of Meetings [Section 8(4)]:
The District Council shall meet at such time and place within the district as the Chairman
may think fit and shall observe such procedure in regard to the transaction of its business as
may be prescribed.
• Objects of the District Council (Section 9):
The objects of every District Council shall be to render advice on promotion and
protection of consumer rights under this Act within the district.
3.5 Procedure under the Consumer Protection Act regarding
Consumers’ Disputes Redressal (Sections 35 to 38)
3.5.1 Procedure to File a Complaint (manner in which complaint
shall be filed)
Under the Consumer Protection Act, a three-tier system (at District level, at State level
and at National level) has been provided for the redressal of consumers’ disputes. The details
regarding this system and machinery provided for the same has been discussed in the next
topic of this unit.
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Procedure before the District Commission: The procedure to file a complaint under
this Act is given in Section 35, which is reproduced as under.
(1) A complaint, in relation to any goods sold or delivered or agreed to be sold or
delivered or any service provided or agreed to be provided, may be filed with a District
Commission by:
(a) the consumer,
(i) to whom such goods are sold or delivered or agreed to be sold or delivered
or such service is provided or agreed to be provided; or
(ii) who alleges unfair trade practice in respect of such goods or service;
(b) any recognised consumer association, whether the consumer to whom such goods
are sold or delivered or agreed to be sold or delivered or such service is provided
or agreed to be provided, or who alleges unfair trade practice in respect of such
goods or service, is a member of such association or not;
(c) one or more consumers, where there are numerous consumers having the same
interest, with the permission of the District Commission, on behalf of, or for the
benefit of, all consumers so interested; or
(d) the Central Government, the Central Authority or the State Government, as the case
may be:
Provided that the complaint under this sub-section may be filed electronically in such
manner as may be prescribed.
Explanation: For the purposes of this sub-section, "recognised consumer association"
means any voluntary consumer association registered under any law for the time being in
force.
(2) Every complaint filed under sub-section (1) shall be accompanied with such fee and
payable in such manner, including electronic form, as may be prescribed.
Proceedings before District Commission (Section 36):
(1) Every procedure before the District Commission shall be conducted by the
President of that Commission and at least one member thereof, sitting together:
Provided that where a member, for any reason, is unable to conduct a proceeding
till it is completed, the President and the other member shall continue the
proceeding from the stage at which it was last heard by the previous member.
(2) On receipt of a complaint made under section 35 (1), the District Commission may,
by order, admit the complaint for being proceeded with or reject the same.
Provided that a complaint shall not be rejected under this sub-section, unless an
opportunity of being heard has been given to the complainant.
Provided further that the admissibility of the complaint shall ordinarily be decided
within twenty-one days from the date on which the complaint was filed.
(3) Where the District Commission does not decide the issue of admissibility of the
complaint within the period so specified, it shall be deemed to have been admitted.
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Reference to Mediation (Section 37): (1) At the first hearing of the complaint after its
admission, or at any later stage, if it appears to the District Commission that there exists
elements of a settlement which may be acceptable to the parties, except in such cases as
may be prescribed, it may direct the parties to give in writing, within five days, consent to
have their dispute settled by mediation in accordance with the provisions of Chapter V of this
Act. (2) Where the parties agree for settlement by mediation and give their consent in
writing, the District Commission shall, within five days of receipt of such consent, refer the
matter for mediation, and in such case, the provisions of Chapter V of this Act, relating to
mediation, shall apply.
The above provision further makes it clear that if the affected consumer, because of his
ignorance, helplessness, poverty or illiteracy fails to move the Commission for protection of
his rights and interests, any of the recognised voluntary consumer associations will be
competent to knock the doors of the forum to protect the consumer rights. Moreover, if the
same interest is involved, many consumers can come together and move the Consumer
Forum. This approach of the legislation is in tune with the principle of Public Interest
Litigation evolved by our Supreme Court. The provision upholds the concept of a democratic
welfare state and an effective role of consumers’ organisations is useful in protecting the
rights of consumers.
A complaint can also be sent through registered post, courier, fax, and speed post or
electronic way. There should be four copies of the complaint on plain paper, in addition to a
copy for the opposite party.
Fee for Making Complaints. [Rule 7 of the Consumer Protection Rules, 2020]:
(1) Every complaint filed under sub-section (1) of section 35 or under sub-clauses (i)
and (ii) of clause (a) of sub-section (1) of section 47 or under sub-clauses (i) and (ii) of clause
(a) of sub-section (1) of section 58 shall be accompanied by a fee, as specified in the table
given below, in the form of crossed Demand Draft drawn on a nationalised bank or through a
crossed Indian Postal Order in favour of the President of the District Commission or the
Registrar of the State Commission or the Registrar of the National Commission, as the case
may be, and payable at the respective place where the District Commission, State
Commission or the National Commission is situated, or through electronic mode as per
arrangement made by the Commission concerned.
(2) The District Commission or the State Commission, as the case may be, shall credit
the amount of fee received by it under sub-rule (1) to the Consumer Welfare Fund of the
State and where such Consumer Welfare Fund is not established, into the appropriate
account of the State Government, and the National Commission shall credit such amount of
fee received by it to the Consumer Welfare Fund of the Central Government.
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Table 3.1: District/State/National Commission.

Sr. Value of goods and services paid as a consideration Amount of
No. fee payable
(in `)
1. Up to 5 lakh rupees Nil
2. Above rupees 5 lakhs and up to Rupees 10 lakhs ` 200
3. Above rupees 10 lakhs and up to Rupees 20 lakhs ` 400
4. Above rupees 20 lakhs and up to Rupees 50 lakhs ` 1000
5. Above rupees 50 lakhs and up to Rupees 1 Crore ` 2000
6. Above rupees 1 crore and up to Rupees 2 Crore ` 2500
7. Above rupees 2 crore and up to Rupees 4 Crore ` 3000
8 Above rupees 4 crore and up to Rupees 6 Crore 4000
9 Above rupees 6 crore and up to Rupees 8 Crore 5000
10 Above rupees 8 crore and up to Rupees 10 Crore 6000
11. Above rupees 10 crore ` 7500
A consumer must sign a complaint paper.
On receipt of a complaint with prescribed fees as mentioned in the above table, it has to
be admitted or refused within twenty-one days. A complaint shall not be rejected unless an
opportunity of being heard has been given to the complainant.
3.5.2 Procedure to deal with Complaint [Section 38]
Procedure on Admission of Complaint:
(1) The District Commission shall, on admission of a complaint, or in respect of cases
referred for mediation on failure of settlement by mediation, proceed with such complaint.
If a complaint is admitted, a copy is expected to be sent to the ‘opposite party’ by
District Commission within twenty-one days from the date of its admission. An opposite
party means a party against whom a complaint is made.
(2) Thereafter, the District Commission shall direct the opposite party to give his
version of the case within a period of thirty days or such extended period not exceeding
fifteen days as may be granted by it; Under the provisions of this Act, the granting of
personal hearing is not mandatory at the District Commission level. However, such personal
hearing is normally given in the interests of justice.
Denial of Allegations by Opposite Party:
Where the opposite party on receipt of a complaint (a) denies or disputes the allegations
contained in the complaint, or (b) fails to take any action to represent his case within the
time given by the District Commission, the District Commission shall proceed to settle the
consumer disputes in the following manner.
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(1) Relating to any goods where analysis or test is required: Where the
complaint contains an allegation, regarding defect in the goods which cannot be determined
without proper analysis or test of the goods, the District Commission has to follow the
following line of action.
(a) Obtaining sample and sending it to the appropriate laboratory: The District
Commission has to obtain a sample of the goods from the complainant, seal it,
authenticate it and send it to the appropriate laboratory for analysis or test to find
out whether any defect as alleged in the complaint exists or not. Such report is
expected from laboratory within a period of forty-five days or any such extended
period as may be granted by the District Commission.
(b) Deposit of fees: The complainant has to deposit to the credit of the Commission
such fees as may be specified, for payment to the appropriate laboratory for
carrying out analysis or test in relation to the goods.
(c) Forwarding a report to opposite party: Once the District Commission receives
the report from such laboratory, the District Commission will have to send a copy
of such report to the opposite party with some remarks.
(i) Objections to the findings of laboratory report: If any of the parties
dispute the correctness of the findings of such laboratory, the District
Commission is empowered to ask the opposite party or complainant to
submit in writing, his objections with regard to such report.
(ii) Hearing of both parties: After giving the complainant and opposite party, a
reasonable opportunity of being heard, the District Commission shall issue
appropriate order.
Form of Complaint
The Consumer Protection Act does not prescribe any specific format to be followed for
filing a complaint. A complaint’s content should be clear, lucid and easy to follow. It is better
if all the necessary things are clearly mentioned in the complaint. A complaint should
preferably be in the following format.
Before the Hon. District Forum/State/National Commission (as applicable)
• Name and full address of complainant
• Name and full address of opposite party/parties
• Background of complaint
• Defect or deficiency observed
• Efforts on the part of complainant to sort out grievances (especially, when a notice
was sent or letters were written etc.)
• Whether already approached other jurisdiction of forum like civil court, Mediation
etc.
• Proof in support of complaint
• Jurisdiction

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• Limitation
• Relief claimed, for example, removal of defect, replacement, compensation, interest,
punitive damages etc.
• Place, date and signature
The Act also provides consumers the option of filing complaint electronically. To
facilitate consumers in filing their complaint online, the Central Government has set up the E-
Daakhil Portal, which provides a hassle-free, speedy and inexpensive facility to consumers
around the country to conveniently approach the relevant consumer Commission, dispensing
the need to travel and be physically present to file their grievance. E-Daakhil has many
features like e-Notice, case document download link & VC hearing link, filing written
response by opposite party, filing rejoinder by complainant and alerts via SMS/Email.
Presently, facility of E-Daakhil is available in 544 consumer commissions, which includes the
National Commission and consumer commissions in 21 states and 3 UTs.
Procedure for Service of Notice:
As per Section 28-A of the old Act of 1986, a notice can be issued by Registered Post
Acknowledgement Due (RPAD) or through recognised courier service or by other means of
transmission, including fax message. The acknowledgement or any other receipt purporting
to be signed by the opposite party or his agent or by the complainant is received by the
District Forum or State/National Commission, shall be declared that the notice has been
received by the opposite party.
Where the notice was properly addressed, pre-paid and duly sent by registered post
acknowledgement due, a notice is presumed to have been served.
Complaint to Consumer Commission:
A complaint in relation to goods sold or delivered or to be sold or delivered or any
service provided or agreed to be provided may be filed with the consumer commission (i.e.
District Commission or State/National Commission.) Hence, it would be better to see the
meaning of ‘complaint’.
Time Limit for filing Complaint
A complaint to the any consumer Commission must be filed within two years from the
date on which cause of action has arisen. However, the District Forum, State Commission, or
National Commission can entertain a complaint after this period of two years, if the
complainant satisfies the commission that he had sufficient cause for not filing complaint
within such period. The forum will have to record reasons while condoning such delay
(Section 69).
(2) Relating to any goods where test is not required or relating to any service:
Where the opposite party, on receipt of a copy of the complaint,
(a) Denies or disputes the allegations contained in the complaint, or
(b) Omits or fails to take any action to represent his case, the District Commission
has power to settle the consumer dispute
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(i) On the basis of evidence given by both the parties, if the opposite party
denies or disputes the allegations made in the complaint, or
(ii) Ex parte on the basis of evidence brought to its notice by the
complainant, where the opposite party failed to represent his case within
the time given by the Forum [Section 38(3)]
If the complainant fails to appear on the date of hearing before the District Commission,
the Commission shall decide the complaint on merits.
Some general provisions applicable to above two situations, i.e., (1) and (2)
• Principles of natural justice not mandatory: The proceedings discussed in the
above points shall not be called in question in any court on the ground that the
principles of natural justice have not been complied with. In other words, it is not
obligatory upon the District Commission to follow the principles of natural justice
[Section 38(5)].
• Time limit for decision: Every complaint shall be heard as expeditiously as
possible and efforts shall be made to decide the complaint within a period of three
months from the date of receipt of notice by opposite party, where the complaint
does not require any analysis or testing of commodities and within five months if
it requires analysis or testing of commodities. The District Commission will have
to record in writing the reasons if it fails to decide the case within the stipulated
time. [Section 38(7)].
• No adjournment: No adjournment shall be ordinarily granted by the District
Commission unless sufficient cause is shown and the reasons for grant of
adjournment have been recorded in writing by the Commission. The proviso to
Section 38(7) restricts the adjournments and empowers the Commission to make
such orders as to the costs occasioned by the adjournments.
Similarly, in the case of appeals to the State Commission and the National
Commission, the adjournment are restricted and these commissions are
empowered to make such orders as to the costs occasioned by the adjournments.
• Interim order: During the pendency of the proceedings before the District
Commission, if it appears to be necessary, it may pass such interim orders as is just
and proper in the facts and circumstances of the case. [Section 38(8)]
Powers of the District Commission [Section 38(9)]:
For the purposes of this section, the District Commission shall have the same powers as
are vested in a civil court under Code of Civil Procedure, 1908, while trying a suit in respect of
the following matters, namely
(i) The summoning and enforcing the attendance of any defendant or witness and
examining the witness on oath;
(ii) The discovery and production of any document or other material object producible
as evidence;
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(iii) The reception of evidence on affidavits;

(iv) The requisitioning of the report of the analysis concerned or test from the
appropriate laboratory or from any other relevant source;
(v) Issuing of any commission for the examination of any witness, or document and
(vi) Any other matter which may be prescribed by the Central Government.
Judicial Proceedings Section 38(10): Every proceeding before the District Commission
shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of
the Indian Penal Code, and the District Commission shall be deemed to be a criminal court
for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
Where the complainant is a consumer referred to in sub-clause (v) of clause (5) of
section 2, the provisions of Order I Rule 8 of the First Schedule to the Code of Civil
Procedure, 1908 shall apply subject to the modification that every reference therein to a suit
or decree shall be construed as a reference to a complaint or the order of the District
Commission thereon. [Section 38 (11)]
In the event of death of the complainant or opposite party, the substitution of parties
will be made as per Order XXII of the First Schedule to the Code of Civil Procedure Code,
1908. [Section 38(12)]
3.5.3Reliefs available to the Consumers [Section 39]
(Findings of the District Commission)
Relief one can get from the Consumer Commission [Section 38(1)]:
(1) Where the District Commission is satisfied that the goods complained against
suffer from any of the defects specified in the complaint or that any of the allegations
contained in the complaint about the services or any unfair trade practices, or claims for
compensation under product liability are proved, it shall issue an order to the opposite party
directing him to do one or more of the following, namely:—
(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, as the case may be, the charges paid by
the complainant along with such interest on such price or charges as may be
decided;
(d) 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: Provided that the District Commission shall have the power to grant
punitive damages in such circumstances as it deems fit;
(e) to pay such amount as may be awarded by it as compensation in a product
liability action under Chapter VI of the Act;

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(f) to remove the defects in goods or deficiencies in the services in question;

(g) to discontinue the unfair trade practice or restrictive trade practice and not to
repeat them;
(h) not to offer the hazardous or unsafe goods for sale;
(i) to withdraw the hazardous goods from being offered for sale;
(j) to cease manufacture of hazardous goods and to desist from offering services
which are hazardous in nature;
(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: Provided that the minimum amount of sum so payable shall not be
less than twenty-five per cent. 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.
(2) Any amount obtained under section 38(1) shall be credited to such fund and
utilised in such manner as may be prescribed.
Conduct of the Meetings of the District Commission:
In any proceeding conducted by the President and a member and if they differ on any
point or points, 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: Provided that 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. [Section 38 (3)]
Every order made by the District Commission under Section 38 (1) shall be signed by the
President and the member who conducted the proceeding: Provided that where the order is
made as per majority opinion under Section 38(3), such order shall also be signed by the
other member. [Section 38 (4)]
Review by District Commission in certain Cases [Section 40]: The District Commission
shall have the power to review any of the order passed by it if there is an error apparent on
the face of the record, either of its own motion or on an application made by any of the
parties within thirty days of such order.
Enforcement of Orders of the Commissions (Section 71): Every order made by a
District Commission, State Commission or the National Commission shall be enforced by it in
the same manner as if it were a decree made by a Court in a suit before it and the provisions
of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 shall, as far as may be,
applicable, subject to the modification that every reference therein to the decree shall be
construed as reference to the order made under this Act.
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Penalty for non-compliance of order [Section 72 (1)]: Whoever fails to comply with
any order made by the District Commission or the State Commission or the National
Commission, as the case may be, shall be punishable with imprisonment for a term which
shall not be less than one month, but which may extend to three years, or with fine, which
shall not be less than 25000 rupees, but which may extend to 1 lakh rupees, or with both.
Power of a Judicial Magistrate of first class [Section 72(2)]: Notwithstanding
anything contained in the Code of Criminal Procedure, 1973, the District Commission, the
State Commission or the National Commission, as the case may be, shall have the power of a
Judicial Magistrate of first class for the trial of offences under sub-section (1), and on
conferment of such powers, the District Commission or the State Commission or the National
Commission, as the case may be, shall be deemed to be a Judicial Magistrate of first class for
the purposes of the Code of Criminal Procedure, 1973.
Section 73(3): Save as otherwise provided, the offences under Section 72(1) shall be
tried summarily by the District Commission or the State Commission or the National
Commission, as the case may be.
3.6 Consumer Disputes Redressal Agencies
(Composition, Jurisdiction, Powers and Functions)
For the purpose of resolution of the consumer’s disputes, the Consumer Protection Act,
makes provision for the three-tier remedial machinery for speedy redressal of consumer
disputes.
Consumer Disputes Redressal Agency: The Consumer Protection Act, contains the
provision for setting up of ‘Consumer Disputes Redressal Agency’ at district level, state level
and national level. In this regard, new Act provides for the establishment of such agencies,
namely:
(a) A District Consumer Dispute Redressal Commission to be known as the ‘District
Commission’ is required to be established by the state government in each district.
[Sec.28]
(b) The Consumer Disputes Redressal Commission to be known as the ‘State
Commission’ established by state government with the prior approval of the central
government in the state.
(c) A National Consumer Disputes Redressal Commission established by the central
government.
3.6.1 District Commission (District Consumer Disputes
Redressal Commission) (Section 28)
Composition:
(1) This Commission is to be established in each district of the state by notification.
However the State Government may, if it deems fit, establish more than one District
Commission in a district.

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(2) Each District Commission shall consist of:

(a) a President; and
(b) not less than two and not more than such number of members as may be
prescribed, in consultation with the Central Government.
The Central Government has power to make rules to provide for the qualifications,
method of recruitment, procedure for appointment, term of office, resignation and removal
of the President and members of the District Commission (Section 29).
The State Government is empowered to make rules to provide for salaries and
allowances and other terms and conditions of service of the President, and members of the
District Commission (Section 30).
Qualifications for appointment of President and member of District Commission:
(As per the rules framed by the Central government in 2020)
(Rule-4)
(1) The District Commission shall consist of:
(a) A person who is qualified to be a District Judge to be nominated by the state
government, to be its President.
(b) Two other members, one of whom shall be a woman, who shall have the
following qualifications, namely:
(i) be not less than thirty-five years of age,
(ii) possesses a bachelor’s degree from a recognised university,
(iii) is a person of ability, integrity and standing, and having special
knowledge and professional experience of not less than fifteen years in
consumer affairs, law, public affairs, administration, economics,
commerce, industry, finance, management, engineering, technology,
public health or medicine .
Disqualification for appointment of President or member of State Commission and
District Commission (Rule-5): A person shall be disqualified for appointment as the
President or a member of a State Commission or District Commission if he:
(1) he has been convicted and sentenced to imprisonment for an offence which
involves moral turpitude; or
(2) he has been adjudged to be insolvent; or
(3) he is of unsound mind and stands so declared by a competent court; or
(4) he has been removed or dismissed from the service of the State Government or
Central Government or a body corporate owned or controlled by such Government;
or
(5) he has, in the opinion of the State Government, such financial or other interest as is
likely to prejudicially affect his functions as the President or a member.

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Procedure of appointment of President and members of the State Commission and the
District Commission (Rule-6):
Appointment by State Government:
(1) The President and members of the State Commission and the District Commission
shall be appointed by the State Government on the recommendation of a Selection
Committee, consisting of the following persons, namely:
(a) Chief Justice of the High Court or any Judge of the High Court nominated by him
Chairperson;
(b) Secretary in charge of Consumer Affairs of the State Government – Member;
(c) Nominee of the Chief Secretary of the State—Member.
(2) The Secretary in charge of Consumer Affairs of the State Government shall be the
convener of the Selection Committee.
Appointment of President/member of the commission will not become invalid just
because vacancy in the Selection committee was vacant except Chairperson of such
committee.
(3) The process of appointments shall be initiated by the State Government at least six
months before the vacancy arises.
The advertisement of such a vacancy shall be published in leading newspapers and in
such other manner as per the direction of the State Government. After following due process
of selection, committee makes recommendation of panel of names of candidates to the
government for appointment in the order of merit for the consideration of the State
Government as per requirement to fill such vacancy in District or state commission.
Term of Office of Office of President or Member:
The President and every member of the State Commission and the District Commission
shall hold office for a term of four years or up to the age of sixty-five years, whichever is
earlier and shall be eligible for reappointment for another term of four years subject to the
age limit of sixty five years, and such reappointment is made on the basis of the
recommendation of the Selection Committee (Rule 10).
Terms and Conditions of Service:
The State Government may, by notification, make rules to provide for salaries and
allowances and other terms and conditions of service of the President, and members of the
District Commission.(Section 30)
Jurisdiction of the District Commission (Section 34):
The term ‘jurisdiction’ is nothing but the authority or legal power to hear and decide the
cases. Hence, a given judicial authority decides the cases on which it has jurisdiction. The
jurisdiction would also depend on the value of the subject matter and the place of the
dispute.
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1. Monetary Jurisdiction [Section 34(1)]:

The District Commission shall have jurisdiction to entertain complaints where the value of
the goods or services paid as consideration does not exceed 50 lakh rupees.
The Central Government deems it necessary so to do, it may prescribe such other value,
as it deems fit.
2. Territorial Jurisdiction [Section 34(2)]:
A complaint shall be instituted in a District Commission within the local limits of whose
jurisdiction,
(a) 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
(b) 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 District Commission is given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.
The District Commission shall ordinarily function in the district headquarters and may
perform its functions at such other place in the district, as the State Government may, in
consultation with the State Commission, notify in the Official Gazette from time to time.
[Section 34(3)]
Limitation to File a Complaint:
A complaint is required to be lodged within two years from the date on which the cause
of action has arisen (Section 69).
(1) The District Commission, the State Commission or the National Commission shall
not admit a complaint unless it is filed within two years from the date on which the cause of
action has arisen.
(2) However, a complaint may be entertained after the period specified in sub-section
(1), if the complainant satisfies the District Commission, the State Commission or the
National Commission, as the case may be, that he had sufficient cause for not filing the
complaint within such period:
Provided that no such complaint shall be entertained unless the District Commission or
the State Commission or the National Commission, as the case may be, records its reasons
for condoning such delay.
Powers and Functions of the District Commission: (Sections 36 to 38)
1. The District Commission has to follow the procedure laid down in Section 36 and
38 the purpose of disposal of a complaint in respect of consumer’s disputes
(already discussed).
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2. To decide the complaint within three months from the date of receipt of notice by
opposite party. In the case of a complaint where chemical laboratory reports are
required, then, in such a case, the complaint has to be decided within a period of
five months [Section 38(7)].
3. During the pendency of a case, if necessary, it may pass such interim order as is just
and proper in a particular case [Section 38(8)].
A similar procedure is supposed to be followed for National and State
Commissions.
4. Powers under Section 38(9): The powers of the District Commission are similar to
that of the civil court. Some of them are as under:
(i) To summon and enforce the attendance of defendants/witnesses and
examining the witnesses;
(ii) To discover and produce any document/object and material used as evidence;
(iii) To receive evidence on affidavit;
(iv) The requisitioning of the report of the analysis concerned or test from the
appropriate laboratory;
(v) To issue any commission for the examination of any witness or document;
(vi) Any other matter prescribed.
5. Once deficiency in services or defect in goods is proved in the proceedings before
the District Commission, then, the Commission has power to issue orders and
thereby direct the opposite party [Section 39(1)].
(a) To remove the defect from goods;
(b) To replace the goods with new goods;
(c) To return to the complainant the price/charges which he has paid ;
(d) To pay compensation to complainant (i.e., consumer);
(e) To remove deficiencies in services;
(f) To discontinue unfair trade practices or restrictive trade practices;
(g) To withdraw hazardous goods from the market;
(h) To stop manufacturing hazardous goods;
(i) To issue corrective advertisements to neutralise the effect of misleading
advertisement etc.
(j) To provide for adequate costs to parties; and
(k) To cease and desist from issuing any misleading advertisement.
6. Continuing proceeding by another member of the Commission: As per
Section 36(1), every proceeding was expected to be conducted by the President of
the District Commission and, at least one member thereof sitting together, and, if
such member could not conduct the proceedings, the President and the other
members shall continue the proceeding from the stage, at which it was last heard
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by the previous member. With this provision, delay in disposal of the cases can be
avoided.
7. Every order of the District Commission mentioned hereinabove, must be signed by
the President and the member or members who conducted the proceedings
[Section 39(4)].
8. Additional powers of the consumer Commissions (i.e., National Commission, State
Commission and District Commission).
The aforesaid Commissions have the following additional powers.
(a) To require certain persons to produce any books, accounts, documents or
commodities and get them examined by an officer specified in this behalf;
(b) To obtain information required for the purpose of the proceedings from any
person;
(c) To authorise any officer to enter and search any premises and seize from
premises such books, papers, documents and commodities as are required for
the purpose of proceedings under the Act. Provided that such seizure shall be
communicated to the said Commission, as the case may be, as soon as it is
made or within a period not exceeding seventy-two hours of making such
seizure after specifying the reasons in writing for making such seizure.
(d) On examination of such seized documents or commodities, these
Commissions have the power to order the retention thereof or to return them
to the party concerned.
[Rule 9 of the Consumer Protection Rules, 15 July 2020]
3.6.2 State Commission (State Consumers’ Disputes Redressal
Commission) (Section 42)
Establishment:
(1) The State Government shall, by notification, establish a State Consumer Disputes
Redressal Commission, to be known as the State Commission, in the State.
Place of Functioning:
(2) The State Commission shall ordinarily function at the State capital and perform its
functions at such other places as the State Government may in consultation with
the State Commission notify in the Official Gazette:
Provided that the State Government may, by notification, establish regional
benches of the State Commission, at such places, as it deems fit.
Composition:
(3) Each State Commission shall consist of:
(a) a President; and
(b) not less than four or not more than such number of members as may be
prescribed in consultation with the Central Government.
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Rules making Authority with Central Government: The Central Government may, by
notification, make rules to provide for the qualification for appointment, method of
recruitment, procedure of appointment, term of office, resignation and removal of the
President and members of the State Commission (Sec.43)
Qualifications for Appointment of President and Members of the State Commission:
(As per Rules framed by the Central Government dated 15 July,2020)((Rule 3):
(1) A person shall not be qualified for appointment as President, unless he is, or has
been, a Judge of the High Court;
(2) A person shall not be qualified for appointment as a member unless he is of not
less than forty years of age and possesses:
(a) an experience of at least ten years as presiding officer of a district court or of
any tribunal at equivalent level or combined service as such in the district
court and tribunal:
Provided that not more than fifty percent of such members shall be
appointed; or
(b) a bachelor’s degree from a recognised university and is a person of ability,
integrity and standing, and has special knowledge and professional
experience of not less than twenty years in consumer affairs, law, public
affairs, administration, economics, commerce, industry, finance, management,
engineering, technology, public health or medicine:
(3) At least one member or the President of the State Commission shall be a woman.
Disqualification for Appointment of President or Member of State Commission and
District Commission (Rule-5):
A person shall be disqualified for appointment as the President or a member of a State
Commission or District Commission if he:
(1) has been convicted and sentenced to imprisonment for an offence which involves
moral turpitude; or
(2) has been adjudged to be insolvent; or
(3) is of unsound mind and stands so declared by a competent court; or
(4) has been removed or dismissed from the service of the State Government or
Central Government or a body corporate owned or controlled by such Government;
or
(5) has, in the opinion of the State Government, such financial or other interest as is
likely to prejudicially affect his functions as the President or a member.
Who Appoints the President and Members of the Commissions?
Procedure of Appointment (Rule-6):
(1) The President and members of the State Commission and the District Commission
shall be appointed by the State Government on the recommendation of a Selection
Committee, consisting of the following persons, namely: –

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(a) Chief Justice of the High Court or any Judge of the High Court nominated by
him Chairperson;
(b) Secretary in charge of Consumer Affairs of the State Government – Member;
(c) Nominee of the Chief Secretary of the State-Member.
(2) The Secretary in charge of Consumer Affairs of the State Government shall be the
convener of the Selection Committee.
(3) No appointment of the President, or of a member shall be invalid merely by reason
of any vacancy or absence in the Selection Committee other than a vacancy or
absence of the Chairperson.
(4) The process of appointments shall be initiated by the State Government at least six
months before the vacancy arises.
(5) If a post falls vacant due to resignation or death of a member or creation of a new
post, the process for filling the post shall be initiated immediately after the post has
fallen vacant or is created, as the case may be.
(6) The advertisement of a vacancy inviting applications for the posts from eligible
candidates shall be published in leading newspapers and circulated in such other
manner as the State Government may deem appropriate.
(7) After scrutiny of the applications received till the last date specified for receipt of
such applications, a list of eligible candidates along with their applications shall be
placed before the Selection Committee.
(8) The Selection Committee shall consider all the applications of eligible applicants
referred to it and if it considers necessary, it may shortlist the applicants in
accordance with such criteria as it may decide.
(9) The Selection Committee shall determine its procedure for making its
recommendation keeping in view the requirements of the State Commission or the
District Commission and after taking into account the suitability, record of past
performance, integrity and adjudicatory experience.
(10) The Selection committee shall recommend a panel of names of candidates for
appointment in the order of merit for the consideration of the State Government.
(11) The State Government shall verify or cause to be verified the credentials and
antecedents of the recommended candidates.
(12) Every appointment of a President or member shall be subject to submission of a
certificate of physical fitness as indicated in the annexure appended to these rules,
duly signed by a civil surgeon or District Medical Officer.
(13) Before appointment, the selected candidate shall furnish an undertaking that he
does not and will not have any such financial or other interest as is likely to affect
prejudicially his functions as a President or member.

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Removal of President or Member of State Commission or District Commission from

office (Rule-8):
(1) The State Government shall remove from office any President or member, who:
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially
his functions as a member; or
(e) has so abused his position as to render his continuance in office prejudicial to
public interest:
Provided that where a President or member is proposed to be removed on any ground
specified in clauses (c) to (e), the President or member shall be informed of the charges
against him and given an opportunity of being heard in respect of those charges.
Term of Office of President or Member. (Rule-10): The President and every member
of the State Commission and the District Commission shall hold office for a term of 4 years
or up to the age of 65 years, whichever is earlier and shall be eligible for reappointment for
another term of four years subject to the age limit of sixty five years, and such reappointment
is made on the basis of the recommendation of the Selection Committee.
Jurisdiction of the State Commission (Section 47):
1. Pecuniary Jurisdiction: The State Commission shall have jurisdiction to entertain
complaints where the value of the goods or services and compensation, if any, claimed
exceeds ` 50 lakhs but does not exceed ` 2 crore [Section 47(1) (a)(i)]. [Notification
dated 30th Dec.2021]
2. Appellate Jurisdiction: (Section 41): Any person aggrieved by an order made by the
District Commission may prefer an appeal against such order to the State Commission on
the grounds of facts or law within a period of 45 days from the date of the order, in such
form and manner, as may be prescribed. However, the State Commission may entertain
an appeal after the expiry of the said period of 45 days, if it is satisfied that there was
sufficient cause for not filing it within that period:
Provided that no appeal by a person, who is required to pay any amount in terms of an
order of the District Commission, shall be entertained by the State Commission unless
the appellant has deposited 50% of that amount in the manner as may be prescribed:
Provided also that no appeal shall lie from any order passed under sub-section (1) of
Section 81 by the District Commission pursuant to a settlement by mediation under
Section 80.
3. Revisional Jurisdiction: [Section 47(1)(b)]: The State Commission shall have
jurisdiction 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.
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(a) has exercised a jurisdiction not vested in it by law, or

(b) has failed to exercise a jurisdiction so vested or,
(c) has acted in exercise of its jurisdiction illegally or with material irregularity.
4. Territorial Jurisdiction: Section 47(4): A complaint can be filed in a State Commission
within the local limits of whose jurisdiction:
(a) 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
(b) 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 in such case, the
permission of the State Commission is given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.
Benches of State Commission:
1. The jurisdiction, powers and authority of the State Commission may be exercised
by Benches thereof, and a Bench may be constituted by the President with one or
more members as the President may deem fit. The senior-most member shall
preside over the Bench. [Section 47(2)].
2. Decision by Majority; Where the members of a Bench differ in opinion on any point,
the points shall be decided according to the opinion of the majority, if there is a
majority, but if the members are equally divided, they shall state the point or points on
which they differ, and make a reference to the President who shall either hear the point
or points himself or refer the case for hearing on such point or points by one or more
of the other members and such point or points shall be decided according to the
opinion of the majority of the members who have heard the case, including those who
first heard it:
In such a case, the President or the other members, as the case may be, shall give
opinion on the point or points so referred within a period of one month from the
date of such reference. [Section 47(3)].
Powers and Functions of State Commission:
(1) As discussed earlier in the note of ‘jurisdiction’ it is clear that, the State Commission
has authority (a) to decide the complaints of the consumers where claimed amount
is from ` 50 lakhs to ` 2 crore, (b) to decide appeals against the order of District
Commission, (c) to pass appropriate orders, where District Commission acted
without jurisdiction and failed to exercise jurisdiction or exercised the jurisdiction
illegally or with material irregularity.
(2) Some special powers are conferred on State Commission by the new Act, and they
are as under.
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Transfer of Cases: On the application of the complainant or of its own motion, the
State Commission may, at any stage of the proceeding, transfer any complaint
pending before the District Commission to another District Commission within the
State if the interest of justice so requires [Section 48].
Procedure applicable to State Commission (Section 49):
(1) The provisions relating to complaints specified under sections 35, 36, 37, 38 and 39
and discussed earlier shall, with such modifications as may be necessary, are also
applicable to the disposal of complaints by the State Commission.
(2) In addition, the State Commission may also declare any terms of contract, which is
unfair to any consumer, to be null and void
Review by State Commission in Certain Cases :
The State Commission has the power to review any of the order passed by it if there is an
error apparent on the face of the record, either of its own motion or on an application made
by any of the parties within thirty days of such order. (Sec.50)
Appeal to National Commission (Section 51):
(1) Any person aggrieved by an order made by the State Commission in exercise of its
powers may prefer an appeal against such order to the National Commission within
a period of 30 days from the date of the order in the prescribed form and manner.
However, the National Commission shall not entertain the appeal after the expiry of
the said period of 30 days unless it is satisfied that there was sufficient cause for
not filing it within that period.
It is to be noted that no appeal by a person, who is required to pay any amount in
terms of an order of the State Commission, shall be entertained by the National
Commission unless the appellant has deposited 50% of that amount in the
prescribed manner.
(2) Save as otherwise expressly provided under this Act or by any other law for the
time being in force, an appeal shall lie to the National Commission from any order
passed in appeal by any State Commission, if the National Commission is satisfied
that the case involves a substantial question of law.
(3) In an appeal involving a question of law, the memorandum of appeal shall precisely
state the substantial question of law involved in the appeal.
(4) Where the National Commission is satisfied that a substantial question of law is
involved in any case, it shall formulate that question and hear the appeal on that
question:
Provided that nothing in this sub-section shall be deemed to take away or abridge
the power of the National Commission to hear, for reasons to be recorded in
writing, the appeal on any other substantial question of law, if it is satisfied that the
case involves such question of law.
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(5) An appeal may lie to the National Commission under this section from an order
passed ex parte by the State Commission.
Time Limit to decide and Hearing of Appeal (Section 52):
An appeal filed before the State Commission or the National Commission, as the case
may be, shall be heard as expeditiously as possible and every endeavour shall be made to
dispose of the appeal within a period of 90 days from the date of its admission: Provided that
no adjournment shall ordinarily be granted by the State Commission or the National
Commission, as the case may be, unless sufficient cause is shown and the reasons for grant
of adjournment have been recorded in writing by such Commission:
The State Commission and the National Commission have powers to pass orders as to
the costs occasioned by the adjournment, as may be specified by regulations:
In case, an appeal being disposed of after the period so specified, the State Commission
or the National Commission will have to record in writing the reasons for the same at the
time of disposing of the said appeal.
3.6.3 The National Consumers’ Disputes Redressal Commission
(Section 53)
National Commission: The National Commission, headquartered at New Delhi is at the
top in the three-tier hierarchy of the consumers’ disputes redressal system.
Establishment: The Central Government shall, by notification, establish a National
Consumer Disputes Redressal Commission, to be known as the National Commission.
[Section 53(1)].
Regional Benches of National Commission [Section 53(2)]: The National Commission
shall ordinarily function at the National Capital Region and perform its functions at such
other places as the Central Government may in consultation with the National Commission
notify in the Official Gazette:
Provided that the Central Government may, by notification, establish regional
Benches of the National Commission, at such places, as it deems fit.
Composition (Section 54):
The National Commission shall consist of:
(a) a President; and
(b) not less than four and not more than such number of members as may be
prescribed.
Power of Central Government to make rules (Section 55):
(1) The Central Government may, by notification, make rules to provide for
qualifications, appointment, term of office, salaries and allowances, resignation,
removal and other terms and conditions of service of the President and members
of the National Commission:
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Term or Tenure of President/Member: the President and members of the National

Commission shall hold office for such term as specified in the rules made by the Central
Government but not exceeding 5 years from the date on which he enters upon his office
and shall be eligible for re-appointment:
Provided that no President or members shall hold office as such after he has attained
such age as specified in the rules made by the Central Government which shall not exceed:
(a) in the case of the President, the age of 70 years;
(b) in the case of any other member, the age of 67 years.
"(1A) Notwithstanding anything contained in sub-section (1), the qualifications,
appointment, term of office, salaries and allowances, resignation, removal and the other
terms and conditions of service of the President and other members of the National
Commission appointed after the commencement of the Tribunal Reforms Act, 2021, shall be
governed by the provisions of the said Act." [This provision-(1A) is inserted by the Tribunals
Reforms Act, 2021 dated 13.08.2021, w.e.f. 04.04.2021].
(2) Neither the salary and allowances nor the other terms and conditions of service of
President and members of the National Commission shall be varied to his disadvantage after
his appointment.
As per the provisions of old Consumer Protection Act:
1. The National Commission shall consist of:
(a) a person who is or has been a Judge of the Supreme Court, to be appointed by the
Central Government, who shall be its President. However, such an appointment
must be made after consultation with the Chief Justice of India;
(b) not less than four, and not more than such number of members, as may be
prescribed, and one of whom shall be a woman, who shall have the following
qualifications, namely:
(i) be not less than thirty-five years of age;
(ii) possess a bachelor’s degree from a recognised university; and
(iii) be persons of ability, integrity and standing and have adequate knowledge
and experience of at least ten years in dealing with problems relating to
economics, law, commerce, accountancy, industry, public affairs or
administration. However, not more than fifty percent of the members shall be
from amongst the persons having being a judicial background. Here, the
expression ‘judicial background’ means a person having knowledge and
experience for at least a period of ten years as a Presiding Officer at the
district-level court or any tribunal at an equivalent level.
The disqualifications of the members of National Commission are similar to those
already discussed under the earlier topic of ‘State Commission – Disqualifications of
members’.
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Number of Members in National Commission.: The National Commission shall consist of a

President and not less than four members and not more than eleven members, of whom at
least one member shall be a woman. (Rule 15 of the C.P. Rules, 2020)
Who appoints members of a National Commission?
2. Appointment of a Member: Every appointment of a member of a National
Commission shall be made by the Central Government on the recommendation of a
Selection Committee consisting of the following, namely:
(a) a person who is a Judge of the Supreme Court,
to be nominated by the Chief Justice of India − Chairman
(b) the Secretary in the Department of Legal Affairs in the
Government of India − Member
(c) Secretary of the Department dealing with Consumer
Affairs in the Government of India − Member
Jurisdiction of National Commission (Section 58):
Pecuniary Jurisdiction: The National Commission shall have jurisdiction to entertain
complaints where the value of goods or services paid as consideration and compensation, if
any claim exceeds ` 2 Crore. [Section 58(1)(a)(i)]. [As per government notification dated 30
Dec.2021] It can also entertain complaints against unfair contracts, where the value of goods
or services paid as consideration exceeds 2 crore rupees;
Appellate Jurisdiction: The National Commission is having the jurisdiction to entertain
appeals against the order of any State Commission, within 30 days from the date of the
order. It has also power to entertain appeals against the orders of the Central Authority;
Revisional Jurisdiction: The National Commission shall have 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 state Commission (a) has exercised a jurisdiction not vested in it by law; or (b) has failed
to exercise a jurisdiction which was vested in it; or (c) has acted illegally or with material
irregularity while exercising its jurisdiction.
The National Commission can exercise such revisional jurisdiction, either of its own
motion or on the application of the party.
Powers and Functions of National Commission:
(1) As discussed earlier in the note ‘jurisdiction’ it is clear that, the National
Commission has power (a) to decide the complaints of the consumers where the
amount claimed is above ` 2 crore, (b) to decide appeals against the order of the
State Commissioners, (c) to pass appropriate orders where State Commission acted
without jurisdiction or failed to exercise jurisdiction or exercised the jurisdiction
illegally or with material irregularity.

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(2) Following powers have also been conferred on National Commission by the
Consumer Protection Act, 2019, which are as under:
(a) Power to set aside Ex parte Orders: Where an order is passed by the
National Commission ex parte against the opposite party or a complainant, as
the case may be, the aggrieved party may apply to the Commission to set
aside the said order in the interest of justice [Section 61].
(b) Transfer of Cases: On the application of the complainant or of its own
motion, the National Commission may, at any stage of the proceeding, in the
interest of justice, transfer any complaint pending before the District
Commission of one State to a District Commission of another State or before
one State Commission to another State Commission [Section 62].
(c) Benches: The jurisdiction, powers and authority of the National Commission
may be exercised by Benches thereof and a Bench may be constituted by the
President with one or more members as he may deem fit. The senior-most
member of the Bench shall preside over the Bench. [Sec. 58(2)]
Decision by Majority: Where the members of a Bench differ in opinion on any point,
the points shall be decided according to the opinion of the majority, if there is a majority, but
if the members are equally divided, they shall state the point or points on which they differ,
and make a reference to the President who shall either hear the point or points himself or
refer the case for hearing on such point or points by one or more of the other members and
such point or points shall be decided according to the opinion of the majority of the
members who have heard the case, including those who first heard it:
Provided that the President or the other member, as the case may be, shall give opinion
on the point or points so referred within a period of two months from the date of such
reference. [Section 58(3)]
(d) Vacancy in the office of President: When the office of President of the
National Commission is vacant or a person occupying such office is, by reason
of absence or otherwise, unable to perform the duties of his office, these shall
be performed by the senior-most member of the National Commission:
Provided that where a retired Judge of a High Court or a person who has
been a Judicial Member is a member of the National Commission, such
member or where the number of such members is more than one, the senior-
most person amongst such members, shall preside over the National
Commission in the absence of President of that Commission (Section 63)
(3) Power and procedure applicable to the National Commission (Section 59):
(1) The provisions relating to complaints under sections 35, 36, 37, 38 and 39 as
discussed earlier shall, with such modifications as may be considered
necessary, be applicable to the disposal of complaints by the National
Commission.

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(2) Without prejudice to sub-section (1), the National Commission may also
declare any terms of contract, which is unfair to any consumer to be null and
void.
Power to Review (Section 60): The National Commission shall have the power to
review any of the order passed by it if there is an error apparent on the face of the record,
either of its own motion or on an application made by any of the parties within thirty days of
such order.
Appeal against the order of National Commission [Section 67]: Any person,
aggrieved by an order made by the National Commission in exercise of its powers conferred
under Section 58, may prefer an appeal against such order to the Supreme Court within a
period of 30 days from the date of the order. However, the Supreme Court may entertain an
appeal after the expiry of the said period of 30 days if it is satisfied that there was sufficient
cause for not filing it within that period:
Provided that 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.
Finality of Order (Section 68): Every order of a District Commission or the State
Commission or the National Commission, as the case may be, shall, if no appeal has been
preferred against such order under the provisions of this Act, be final.
3.6.4 General Powers and Functions of Consumers’ Disputes
Redressal Agencies
The provisions regarding administrative control and enforcement of orders of these
consumers’ disputes redressal agencies are given in Section which are reproduced as under.
(I) Administrative Control (Section 70):
(1) The National Commission shall have the authority to lay down such adequate
standards in consultation with the Central Government from time to time, for better
protection of the interests of consumers and for that purpose, shall have
administrative control over all the State Commissions in the following matters,
namely:
(a) monitoring performance of the State Commissions in terms of their
disposal by calling for periodical returns regarding the institution, disposal
and pendency of cases;
(b) investigating into any allegations against the President and members of a
State Commission and submitting inquiry report to the State Government
concerned along with copy endorsed to the Central Government for
necessary action;
(c) issuance of instructions regarding adoption of uniform procedure in the
hearing of matters, prior service of copies of documents produced by one
party to the opposite parties, furnishing of English translation of judgments
written in any language, speedy grant of copies of documents;
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(d) overseeing the functioning of the State Commission or the District

Commission either by way of inspection or by any other means, as the
National Commission may like to order from time to time, to ensure that the
objects and purposes of the Act are best served and the standards set by the
National Commission are implemented without interfering with their quasi-
judicial freedom.
(2) Monitoring Cell: There shall be a monitoring cell to be constituted by the
President of the National Commission to oversee the functioning of the State
Commissions from the administrative point of view.
(3) The State Commission shall have administrative control over all the District
Commissions within its jurisdiction in all matters referred to in sub-section (1).
(4) Furnishing Information to Government: The National Commission and the State
Commissions shall furnish to the Central Government periodically or as and when
required, any information including the pendency of cases in such form and
manner as may be prescribed.
(5) The State Commission shall furnish, periodically or as and when required to the
State Government any information including pendency of cases in such form and
manner as may be prescribed.
II. Enforcement of orders of District Commission, State Commission and National
Commission [Section 71]:
Every order made by a District Commission, State Commission or the National
Commission shall be enforced by it in the same manner as if it were a decree made by a
Court in a suit before it and the provisions of Order XXI of the First Schedule to the Code of
Civil Procedure, 1908 shall, as far as may be, applicable, subject to the modification that every
reference therein to the decree shall be construed as reference to the order made under this
Act.
Power to Impose Penalty for Non-compliance of Order (Section 72):
(1) Whoever fails to comply with any order made by the District Commission or the
State Commission or the National Commission, as the case may be, shall be
punishable with imprisonment for a term which shall not be less than one month,
but which may extend to three years, or with fine, which shall not be less than
25,000 rupees, but which may extend to 1 lakh rupees, or with both.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the
District Commission, the State Commission or the National Commission, as the
case may be, shall have the power of a Judicial Magistrate of first class for the trial
of offences under sub-section (1), and on conferment of such powers, the District
Commission or the State Commission or the National Commission, as the case may
be, shall be deemed to be a Judicial Magistrate of first class for the purposes of the
Code of Criminal Procedure, 1973.
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(3) Save as otherwise provided, the offences under sub-section (1) shall be tried
summarily by the District Commission or the State Commission or the National
Commission, as the case may be.
Appeal against the Order Passed under Section 72: (Section 73)
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
where an order is passed under sub-section (1) of section 72, an appeal shall lie,
both on facts and on law from:
(a) the order made by the District Commission to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court.
(2) Except as provided in sub-section (1), no appeal shall lie before any court, from any
order of a District Commission or a State Commission or the National Commission,
as the case may be.
(3) Every appeal under this section shall be preferred within a period of thirty days
from the date of order of a District Commission or a State Commission or the
National Commission, as the case may be:
Provided that the State Commission or the National Commission or the Supreme Court,
as the case may be, may entertain an appeal after the expiry of the said period of thirty days,
if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the
said period of thirty days.
3.6.5 Appeals against the Orders of the Commission
(1) Power of the State Commission to decide appeals (Section 41)
Any person aggrieved by the order of District Forum has authority to prefer an appeal
against such order to the State Commission within a period of 45 days from the date of
order, in such form and manner as may be prescribed. However, the State Commission may
entertain an appeal after the expiry of the stipulated period of 45 days if it is satisfied that
there was sufficient cause for not filing it within that period, provided that no appeal by a
person, who is required to pay any amount in terms of the District Forum, shall be
entertained by the State Commission unless the appellant has deposited in the prescribed
manner 50% of that amount:
Provided also that no appeal shall lie from any order passed under sub-section (1) of
section 81 by the District Commission pursuant to a settlement by mediation under
Section 80 (Section 45).
(2) Power of the National Commission to decide Appeals (Section 51):
(1) Any person aggrieved by an order made by the State Commission may prefer an
appeal against such order to the National Commission within the period of 30 days
from the date of order in such form and manner as may be prescribed.
It is to be noted that the National Commission may entertain an appeal after the
expiry of the stipulated period of 30 days if it is satisfied that there was sufficient
cause for not filing it within that period.

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However, no appeal by the person who is required to pay any amount in terms of
an order of the State Commission shall be entertained by the National Commission
unless the appellant has deposited in the prescribed manner 50% of the amount.
(2) Save as otherwise expressly provided under this Act or by any other law for the
time being in force, an appeal shall lie to the National Commission from any order
passed in appeal by any State Commission, if the National Commission is satisfied
that the case involves a substantial question of law.
(3) In an appeal involving a question of law, the memorandum of appeal shall precisely
state the substantial question of law involved in the appeal.
(4) Where the National Commission is satisfied that a substantial question of law is
involved in any case, it shall formulate that question and hear the appeal on that
question:
Provided that nothing in this sub-section shall be deemed to take away or abridge
the power of the National Commission to hear, for reasons to be recorded in
writing, the appeal on any other substantial question of law, if it is satisfied that the
case involves such question of law.
(5) An appeal may lie to the National Commission under this section from an order
passed ex parte by the State Commission.
(3) Appeal in the Supreme Court (Section 67):
Any person, aggrieved by an order made by the National Commission in exercise of its
powers, may prefer an appeal against such order to the Supreme Court within a period of 30
days from the date of order. The Supreme Court may entertain an appeal after the expiry of
the stipulated period of 30 days if it is satisfied that there was sufficient cause for not filing it
within that period.
As per Act, no appeal by the 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 the
person has deposited in the prescribed manner 50% of that amount.
It is to be noted that there is no provision of appeal in case where National Commission
decides under its appellate jurisdictions, i.e., when it decides appeals against the order of
State Commission. In short, in all cases, only one appeal is allowed. In other words, the
second appeal is not allowed, but revision petition to National Commission is possible.
With regard to appeal mechanism it may be concluded that, an appeal against the
decision of the District Commission can be filed before the State Commission and appeal
against the decision of State Commission can be filed before the National Commission and
appeal against the decision of the National Commission can be filed before the Supreme
Court. Every appeal to State Commission must be filed within 45 days and to the National
Commission or Supreme Court within 30 days. The procedure for filing an appeal is similar to
that of a complaint, except that the application should be accompanied by the orders of the
District or State Commission. The reasons for filing appeal should be mentioned. The period
of 45 or 30 days, as the case may be, to file an appeal may be extended for valid reasons.
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QUESTIONS FOR DISCUSSION

1. What are the salient features of the Consumer Protection Act, 2019?
2. Who is a ‘consumer’? Who is not a ‘consumer’? Explain in brief various kinds of
‘consumer disputes’ under the Consumer Protection Act, 2019.
3. What are the ingredients of ‘unfair trade practices’ and ‘restrictive trade
practices’?
4. What are the objects and functions of ‘consumer protection council’? Explain in
brief their ‘composition’ and ‘procedure for meetings’.
5. Explain in brief ‘composition’ and ‘jurisdiction’ of Consumer Disputes Redressal
Agencies under the Consumer Protection Act, 2019.
6. What are the powers of redressal agencies under the Consumer Protection Act,
2019 to grant relief to the aggrieved consumer?
7. What are the basic rights of consumers provided under Consumer Protection Act,
2019?
8. What is a ‘complaint’ under Consumer Protection Act, 2019?
9. Define the terms ‘defect’ and ‘deficiency in services’ with illustrations.
10. Write a note on the ‘Central Consumer Protection Council’ or the ‘State
Consumer Protection Council’.
11. Briefly narrate the procedure to file a complaint to the District Consumer Disputes
Commission as stated in Consumer Protection Act, 2019.
12. What is the nature of proceedings before the District consumer Commission?
13. What are the reliefs available to the consumers under the provisions of the
Consumer Protection Act, 2019?
14. State the legal provisions relating to ‘appeals against the orders of the District
Commission, State Commission and National Commission’.
✱✱✱

3.50