Who is a consumer?

A person who buys any goods or services for a consideration, which has been paid or
promised or partly paid and partly promised, or under any system of deferred payment also
includes the user with approval of such goods or beneficiary of services.
As per Consumer Protection Act 2019, the expression “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.

IMPORTANT: Who is a not a consumer?

• A person who obtains;
• goods free of charge
• who avails services free of charge
• who obtains goods for resale or for any commercial purposes
• who avails services for any commercial purposes
• who avails services under contract of service

What Consumers Rights are guaranteed under Consumer Protection Act, 2019?
Consumer is having the following six consumer rights under the Act
• Right to Safety
• Right to be Informed
• Right to Choose
• Right to be heard
• Right to seek Redressal
• Right to Consumer Awareness

What are goods?

"goods" means every kind of movable property and includes "food" as defined in
the Food Safety and Standards Act, 2006

What are Consumer Disputes Redressal Agencies?

These are quasi-judicial bodies established under the Act to provide simple, speedy and
inexpensive redressal to the grievances of the consumers. These have been established at
three levels: District, State and National known as:
• District Consumer Disputes Redressal Commission or District Commission
• State Consumer Disputes Redressal Commission or State Commission
• National Consumer Disputes Redressal Commission or National Commission.

What is the pecuniary jurisdiction of Commissions?

CPA 2019
District Commission: Upto 1 cr
State Commission: 1 cr – 10 cr
National Commission: above 10 cr

What is meant by ‘deficiency’ under the Act?

"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;

. What is a misleading advertisement?

Misleading advertisement" in relation to any product or service, means an advertisement,
which—
a. falsely describes such product or service; or
b. 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
c. 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
d. deliberately conceals important information
15. Who all can be made liable for a misleading advertisement?
Manufacturers, advertising agencies, celebrity endorsers and publishers can be made liable.

What is e- Commerce?
E commerce under CP Act 2019 means buying or selling of goods or services Including
digital
products over digital or electronic network.

Can a consumer complaint be resolved through mediation?

Yes. Either at the first hearing after admission, or at later stage if the District Commission is
of the view that, there exists an element of settlement, can refer the complaint to Mediation
with the consent of the parties.
Also, parties at any stage of the complaint can opt for settlement through mediation.

37. Is there any fee to be paid for Mediation?

No, There is no fee prescribed for Mediation.

38. Can appeal be filed after settlement through mediation?

No appeal lies after the settlement of dispute through mediation.

"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-
(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
(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;
(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.