You all know that our life is full of different and unique things which happen to us
on a daily basis. And when it comes to household and day-to-day family life trips
to the supermarket, online shopping is just so common and has become a part of
our life.
There are so many people in our country who doesn't even know about what all
consumer rights they own. The Consumer Protection Bill, 2019 seeks to
strengthen the rights of consumers and everyone should know them.
Consumer Protection Bill, 2019
The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister
of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan on July 8,
2019. The Bill replaces the Consumer Protection Act, 1986.
Existing Rights of consumers:
There were a total of 6 consumer rights which have been defined in the
Consumer Protection Bill, and those are:
● Right to Safety
● Right to be Informed
● Right to Choose
● Right to be Heard
● Right to Seek redressal
● Right to Consumer Education
So, now in addition to the existing consumer rights, there are five new consumer
rights you get as a consumer.
1. Right to file a complaint from anywhere
According to this new right, consumers can now file a complaint with the District
Consumer Commission or State Consumer Commission from anywhere, home,
office or while on a weekend trip. Presently, the consumers are required to file a
case only at the place where the product was purchased or where the seller of
the product has his registered office. The consumer affairs ministry will now
frame rules for electronic filing of complaints and specify norms for paying the
required fee digitally. This will reduce harassment of consumers to a great extent.
2. Right to seek compensation under *product liability
Any complainant can file a case against the manufacturer or seller of a product
for any loss caused to the complainant on account of a defective product, which
applies to all services. If there is a manufacturing defect or the product in
question does not conform to the express warranty the manufacturer or the seller
will be held liable. This provision brings e-commerce under its ambit.
3. Right to protect consumers as a class
If you have a complaint that relates to violation of consumer rights or unfair trade
practices or misleading advertisements that are prejudicial to the interests of
consumers as a class, you can do two things. Forward the complaint in writing or
in electronic mode to district collector or the commissioner of regional office or
the Central Consumer Protection Authority (CCPA) for class action.
4. Right to seek a hearing using video conferencing
According to this, any complaint will be presented before the district commission
based on an affidavit and documentary evidence placed before it. If an
application has been forwarded by a consumer for hearing through video
conference, the commission can allow for this provision.
5. Right to know why a complaint was rejected
No commission can reject a complaint without hearing the complainant. The
commission, in fact, must decide about admitting or rejecting a complaint within
21 days, by which if it is not decided then the complaint is deemed as having
been admitted.
Product liability under the CPA 2019
Sections 82 to 87, appearing in Chapter VI of CPA 2019, provide an all-
encompassing scheme which would apply to every claim for
compensation under a product liability action.
CPA 2019, expressly or by necessary implication, does not indicate
that these new provisions of product liability will also apply to product
liability actions already pending before various consumer fora.
However, since these provisions create new rights and liabilities, there
is a presumption in law that they are prospective in operation.
CPA 2019 defines product liability as “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”.
A product liability action can be filed against a ‘product manufacturer’
or a ‘product service provider’ or a ‘product seller’, as the case may
be. CPA 2019 defines each of these expressions in very wide terms to
bring within their fold every possible aspect of a product liability claim.
CPA 2019 also delineates the situations in which they will be held
liable.
Few such situations are summarized below. While the situations
envisaged under the CPA 2019 are quite exhaustive, there is nothing
to indicate that these would be the only situations where liability will
arise. It, however, remains to be seen how the courts will interpret
these provisions.
Liability of a product manufacturer
A product manufacturer shall be liable, if –
(i) the product contains a manufacturing defect; or
(ii) the product is defective in design; or
(iii) there is a deviation from manufacturing specifications; or
(iv) the product does not conform to the express warranty; or
(v) the product fails to contain adequate instructions of correct usage
to prevent harm or any warning regarding improper or incorrect usage.
Liability of a product seller
A product seller (who is not a product manufacturer) shall be liable, if –
(i) he has exercised substantial control over the designing, testing,
manufacturing, packaging or labelling of a product that caused harm;
or
(ii) he has altered or modified the product and such alteration or
modification was the substantial factor in causing the harm; or
(iii) he has made an express warranty of a product independent of any
express warranty made by a manufacturer and the product failed to
conform to such warranty; or
(iv) the product has been sold by him and the identity of product
manufacturer of such product is not known, or if known, the service of
notice or process or warrant cannot be effected on him or he is not
subject to the law which is in force in India or the order, if any, passed
or to be passed cannot be enforced against him; or
(v) he failed to exercise reasonable care in assembling, inspecting or
maintaining such product.
Liability of a product service provider
A product service provider shall be liable, if –
(i) the service provided by him was faulty in quality, nature or manner
of performance; or
(ii) there was an act of omission or commission or negligence or
conscious withholding of any information which caused harm; or
(iii) the service provider did not issue adequate instructions or
warnings to prevent any harm; or
(iv) the service did not conform to express warranty or the terms and
conditions of the contract.
Exceptions to a product liability action
CPA 2019 also envisages some specific defences to a product liability
action. Few of the defences are summarized below:
(i) The product was misused, altered or modified at the time of
harm. Curiously, as per this exception, there cannot be a product
liability action against a product seller. This is somewhat intriguing,
since this exception should equally apply to a product manufacturer or
a product service provider.
(ii) In any product liability action based on the failure to provide
adequate warnings or instructions, the product manufacturer will not
be liable, if-
● The product was purchased by an employer for use at the workplace
and the product manufacturer had provided warnings or instructions to
the employer; or
● The product was sold as a component or material to be used in another
product and necessary warnings or instructions were given by the
product manufacturer to the purchaser of such component or material,
but the harm was caused to the complainant by use of the end product
in which such component or material was used; or
● The product ought to have been used only by or under the supervision
of an expert; or
● The complainant, while using the product, was under the influence of
alcohol etc.
(iii) A product manufacturer will not be liable for failure to instruct or
warn about a danger which is obvious or commonly known to the user
of such product.
Even prior to CPA 2019, in most product liability actions, one or more
of the above defenses were taken. These defenses now have statutory
recognition. CPA 2019 does not say that the defences set out are the
only defenses to any product liability action. It, however, remains to be
seen how the courts will interpret these provisions.
