Unit 5

Consumer Protection Act

The consumer protection Act, 1986 is a milestone in the history of socio-
economic legislation in the country. It is one of the most progressive and
comprehensive pieces of legislations enacted for the protection of consumers.
It was enacted after in-depth study of consumer protection laws in a number of
countries and in consultation with representatives of consumers, trade and
industry and extensive discussions within the Government.
The main objective of the act is to provide for the better protection of
consumers. Unlike existing laws, which are punitive or preventive in nature, the
provisions of this Act are compensatory in nature. The act is intended to
provide simple, speedy and inexpensive redressal to the consumers’
grievances, and relief’s of a specific nature and award of compensation
wherever appropriate to the consumer. The act has been amended in 1993
both to extend its coverage and scope and to enhance the powers of the
redressal machinery.
The salient features of the Act are summed up as under:
 The Act applies to all goods and services unless specifically exempted by
the Central Government.
 It covers all the sectors whether private, public or cooperative.
 The provisions of the Act are compensatory in nature.
It enshrines the following rights of consumers (objectives)
Right to be protected against the marketing of goods and services, which are
hazardous to life and property.
 Right to be informed about the quality, quantity, potency, purity,
standard and price of goods or services so as to protect the consumer
against unfair trade practices;
 Right to be assured, wherever possible, access to a variety of goods and
services at competitive prices;
 Right to be heard and to be assured that consumers’ interests will
receive due consideration at appropriate forums;
  Right to seek redressal against unfair trade practices unscrupulous
exploitation of consumers; and
 Right to consumer education
 The Act envisages establishment of Consumer Protection Councils at the
Central and State levels, whose main objects will be to promote and
protect the rights of the consumers.
Structure:
 To provide simple, speedy and inexpensive redressal of consumer
grievances, the Act envisages a three- tier quasi-judicial machinery at the
National, State and District levels.
1. National Consumer Disputes Redressal Commission – known as
“National Commission”.
2. Consumer Disputes Redressal Commissions known as “State
Commission.
3. Consumer Disputes Redressal Forums- known as “District Forum.
 The provisions of this Act are in addition to and not in derogation of the
provisions of any other law for the time being in force.
Certain terms used in the Consumer Protection Act of 1986
a) Consumer — A consumer is one who purchases the commodities not for
trading but for self consumption. The definition of consumer given in Section
2(1) (d) of the act lays down the following points of a consumer:-
A consumer is:-
1. Any person who buys or hires/avails any service or goods for a
consideration.
2. Any user of the goods who may not have purchased it but uses it with
the approval of the person who has purchased the goods for
consideration.
3. Any person who is a beneficiary of such services with the consent of the
original consumer.
 4. Consideration for the goods is an important factor. Such consideration
must have actually been paid or promised or partly paid and partly
promised.
5. The intention of he present purchasing it should be consumption and not
sale.
b) Dispute — Consumer dispute has been covered under section 2(1)(e).Any
consumer has a right to seek remedy or file a complaint against the
manufacturer or trader in case of any dispute between the two.
According to section 2(1) (e), consumer dispute is a dispute where the person
against whom a complaint has been made and he denies the allegations
contained in such complaint.
c) Deficiency — Section 2(1)(g), of the Act defines a deficiency as, “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.
For making any complaint in respect of a service or service rendered, a
complaint has to prove that services suffer from deficiency. The consumer has
been given protection under this act from any kind of incompetence,
negligence, etc. and those responsible for deficiency are punished according to
the provisions of the Act.
d) Restrictive Trade Practice and Unfair Trade Practice — A consumer has a
free right to purchase any kind of good according to his needs in order to get
maximum satisfaction. According to section 2(1) (nn), a Restrictive trade
Practice, refers to any practice that requires a consumer to buy, hire or avail
any goods or services prior to buying, hiring or availing any other goods or
services.

The consumer protection act of 1986 provides for better protection of the
interests of consumers and also has provisions to protect their interests from
Unfair trade practices. Section 2(1)(r) states that an ‘unfair trade practice’
means a trade practice which for the purpose of prompting sale, use or supply
of any goods of for the provision of any service, adopts any unfair methods or
practice, which may include the following.
1. The practice of making on oral or written statement which:-
 Falsely represents that the goods are of a particular standard quality,
quantity, style, etc.
 Falsely represents the quality, quantity or grade of services.
 Falsely represents and old, re-built, renovated goods as new goods.
 Representing that the goods have certain characteristics, uses,
accessories, etc which they may not actually have
 Representing that the seller has a sponsorship or approval which is false
 Assuring of life of goods or giving a guarantee thereof without proper
checking
 Making a false representation which might seem to be a promise to
replace, maintain or repair an article
 Misleading regarding the price
 Giving misleading facts about goods or other traders
2. Permits the publication of any advertisement in any newspaper or magazine
for sale at a bargaining price in reference to ordinary price or other product
brand.
3. Permitting the offers of gifts or other items with the intention of charging the
amount from the transaction, partly or as a whole.
4. Permits the sale or supply of goods or services which do not comply with the
general standards set.
5. Boarding or destructing the goods or refusing to sell goods with a view to
raise the prices.

What is Consumer Protection Council? –

The Consumer Protection Council is a group that offers Indian consumers legal
support.
Central Consumer Protection Authority -Unlike other Councils, the Central
Consumer Protection Authority is abbreviated as CCPA. This kind of
commissioned body is wholly adjudicatory and quasi-judicial in nature; it is
neither solely regulatory, advisory, nor policy-making.

Council for Central Consumer Protection -According to the Consumer

Protection Act, the Central Government is given the authority to create a
Central Consumer Protection Authority, which is made up of the Chairman,
who is the Minister in charge of consumer affairs in the Central Government,
and as many other official and non-official members who represent various
interests as may be specified from time to time. Consumer Protection
Regulations 1987 are governed by the Consumer Protection Council of India.
The Central Minister in charge of Consumer Affairs serves as the Chairman of
this Council, which has a maximum membership of 150 people. This Council's
term lasts for three years.

The Consumer Protection Council's membership –

The Consumer Protection Council serves as a go-between between companies
and customers, supplying information about consumer rights as well as legal
interpretations of such rights.

The Consumer Protection Council's goals -It's time to study more about the
crucial duties and goals of the Consumer Protection Council now that you have
a basic understanding of its makeup.

How Can the Council Help? -

The Consumer Protection Council strives to safeguard customers from
dishonest business practises.

Powers –
As a government organisation, the Consumer Protection Council (CPC) is
authorised to bring legal action against those who violate consumer protection
laws.
MACHINERY FOR REDRESSAL OF GRIEVANCES
As previously said, a consumer can seek redressals in India if the seller violates
their consumer protection right. The redressal mechanism takes the role of
providing the remedy of the consumer. Under the Consumer Protection Act,
Chapter III provides the implementation of the redressal agencies. On the other
hand, Section 9 of the said act mentions the establishment of the said
agencies, which includes:
 District Forum (State government establish it in each district of the state
by notification)
 State Commission (State government establish it in each state by
notification)
 National Commission (Central government establish it by notification)
Redressal Agencies
District Forum State Commission National Commission

Supreme Court Judge as the

District Court Judge as the High Court Judge as the president (Appointed by the C
president. There must be two president. Must have two Government, appointment ca
other people not below 35 members not about 35 years be made with the consultatio
years of age. The members of age. The members must the Chief Justice of India. The
must have a university degree have a university degree and have four members, not abov
and know industry, commerce, know industry, commerce, years of age. They must have
public affairs, administration, public affairs, administration, university degree and must kn
and economics. and economics. industry, public affairs, econo
commerce, and administratio

The jurisdiction of such cases

The jurisdiction of such forums can exceed Rs 20 lakhs but The jurisdiction of such cases
must not exceed Rs 20 lakhs. must avoid exceeding Rs 1 exceed Rs 1 crore.
crore.

It is the faster way of disposing It also entertains appeals It entertains appeals of the st
cases because the amount district forums and pending commission. It can decide the
claim is less than cases of the said forums in the matters regarding the flaws m
National/State redressal state. The commission can State Commission.
forums. decide on the grounds of the
 flaws in the District Forums.

The three agencies will not look into a case which was filed two years post occurrence of the
unless the parties pardon themselves for such delay filing over a special period. This provisio
brought up to boost the accuracy of the agencies’ functions and they can provide fast deliver
of the solutions to the parties.
Powers of the Redressal Agencies
In terms of jurisdiction, all of the redressal forums have different powers.
Among them are the following:
 Examining, enforcing, and summoning the witness under oath;
 locating and producing any physical evidence;
 Receiving affidavit evidence;
 Requesting reports or test results from the appropriate authorities and
laboratories;
 Creating a commission to examine the witness;
 Enforcing any other powers delegated to the Central or State
Governments.
Conclusion
It is pretty clear that in a consumer society, there are bad actors that will take
advantage of the consumer’s needs, to make a profit. When the Star Wars
Battlefront 2 Scandal was first mentioned in the research paper, it highlights
how corporations will take advantage of the people’s love for the Star Wars
franchise to profits.
It is also worth mentioning that their impressionable audiences like children
whose canvases can change anytime. In other words, they can exploit children
in the online gambling schemes they call loot-boxes.

Jurisdiction: (SECTION 11)

 The District Forum shall have jurisdiction to entertain complaints where
the value of the goods or services and the compensation, if any, claimed
does not exceed rupees one crore. If the Central Government feels
necessary, it would provide other values as it deems fit.
  A complaint shall be instituted in a District Forum within the local limits
of whose jurisdiction:
1. the opposite party or each 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; or
2. 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;
 the cause of action, wholly or in part, arises; or
1. Residence or the workplace of the complainant.
 Mere dealing with claim by some at Regional Office would not furnish
part of cause of action.
 In cases of vacancy, the State Government may extend the jurisdiction of
a particular district commission, beyond that district to the one with a
vacancy.
 The functions of the District Commission would be ordinarily performed
at the headquarters or any other place as notified by the State
Government.
Powers:
Powers:
 The district commission has the power to entertain complaints and
charge fee in relation to the goods sold or agreed to be sold or the
services provided or agreed to be provided by:
1. The consumer of such goods or services; or
2. Any recognised consumer association; or
 One or more consumers in case where numerous consumers have the
same interest; or
1. the Central Government, the Central Authority or the State Government,
as the case may be.
 Every proceeding before the District Commission shall be conducted by
the President of that Commission and at least one member thereof,
sitting together and on receipt of a complaint made, the District
Commission may, by order, admit the complaint for being proceeded
with or reject the same (After an opportunity to be heard is given to the
complainant).
 If it appears to the District Commission that there are elements of
settlement which would be acceptable to both the parties, it may direct
the parties to give in writing consent to have their dispute settled by
mediation.
 Where the complaint is in reference to any goods, the commission would
pass the copy of the complaint to the opposite party named in the
complaint to get their version of the case. The same applies in case of
the services provided.
 In case of an allegation of a defect in a good which cannot be ascertained
without a test or proper analysis of the substance, the commission may
obtain a sample of the goods from the complainant, seal it and provide it
to the appropriate laboratory for analysing or testing, as the case may
be, for which a fee must be deposited by the complainant.
 The District Commission may also seek to settle the consumer dispute ex
parte, on the basis of evidence provided by the complainant, in the case
the party mentioned in the complaint fails to respond within the
prescribed time period.
 The commission may also provide for adjournment of the case, where
sufficient cause has been shown and recorded by the commission in
writing. It may also provide an interim order, if necessary, depending
upon the facts and circumstances of the case.
 The commission would have the same powers as vested under the CPC,
1908 in a civil court in matters namely:
1. Summoning of any witness or defendant or issuing of commissions for
examination of documents or any witness.
 2. Requiring production of a material or object as evidence or the
analysis/test report from the concerned laboratory.
 Matters prescribed by the Centre.
 In cases where the allegations of the complainant are proved, the
commission may order the opposite party:
1. To remove the defect as have been pointed out or to replace the goods
with new goods which are defect free
2. To return the complainant the price or the charges paid along with
interest and also provide the complainant with the compensation
awarded, for the loss and damage suffered due to the negligence of the
opposite party
 To pay an amount as a compensation in product liability
1. To remove the defects in the goods and deficiency in the services and
discontinue the unfair or restrictive trade practices.
2. To stop the manufacture, sale and offer of hazardous goods and services.
3. To pay a sum as determined by the commission in case of a large number
of consumers that might be affected but are not easily identifiable.
 To provide corrective advertisement an desist from issuing any
misleading
 advertisement.
 The Commission has the power to review the orders passed by it if they
have an error apparent on the face of the record, either by self-evaluation
or by an application of any of the parties.
 The District Forum would also have the power to grant punitive damages
depending upon the circumstances of the case.
This was the Composition, Jurisdiction and Power of the District Consumer Forum.

The State Commission – Composition and Power

Every State has a State Commission under, Consumer Protection Act and
according to Section-17 of this Act, the pecuniary jurisdiction of the State
Commission states that the complaints and issues where the value of goods or
services and the value of the compensation claim may exceed to Rs. 20 lakhs it
should be less than Rs. 1 crore.

Composition of the State Commission

The State Commission shall consist, the following-

1. A President, who is or has been a judge of a High Court and he shall be

appointed by the State Government and

2. Two other members, out of which one of them shall be women. The two
members shall have the following qualification.

 Members should not less than 35 years of age.

 Possess a bachelor’s degree from a recognized university.

 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, accountancy, commerce, public affairs,
industry or administration.

It is provided that 50% of the members should have judicial background.

Disqualifications of Members

A person shall be disqualified for appointment as member, if he:

 Has been sentenced for imprisonment or convicted for an offence or,

 Is an insolvent or,

 Is of unsound mind or,

 Has been removed from service from government or,

 Has such other disqualifications as may be prescribed by the State

Government.

Appointment of Members
 1. Every appointment that is stated above must be made by the State
Government on the recommendations of the Selection Committee
consisting of the following:-

 The President of the State Commission is considered as the Chairman;

 Secretary, Law Department of the State- Member; and

 Secretary, in charge of the department dealing with consumer Affairs of

the state -member.

When , the President has not constituted a Bench comprising of a single member
, a single member does not have the authority to allocation of any business to
itself under , the Consumer Protection Act.

Establishment of Benches-

The jurisdiction, powers of state commission may be exercised by Benches,

A bench may be constituted by the president , with one or more than one
member. The provision of more benches has been introduced by the Consumer
Protection Act, 2002.

Salary and Terms of Service

 The salary and other allowances payable to the members and their other
terms of service, shall be such as may prescribed, by the State
Government.

 Every member of the state shall hold the office for a tenure of 5 years or
upto the age of 67 years, whichever is the earlier.

 A member shall be eligible for re-appointment of another term of 5 years

or upto the age of 67 years.

 A member may resign his office in writing by addressing it to the State

Government . His vacancy may be filled as per the above mention
procedure.
In the case of, Justice Debendra Mohan Patnaik v. State of Orissa, the
question came out that , related to the reduction of salary of the President of
the State Commission, to the extent of pension he received as retired judge of
High Court . Holding the reduction as illegal and a constitutional infraction in
view of Article 221(2) of the constitution of India, the Odisha High observed , that
pension is not a bounty but it is a part of one’s owns earning , which is retained
and given after superannuation as per rules and thus indefeasible right is
created. The right cannot be taken away or abridge in any manner in course of a
subsequent employment unless statute under which the employment is made
specifically provide such abridgement .

Jurisdiction of the State Commission

1. Pecuniary Jurisdiction- This refers that the , State shall entertain those
complain, where the value of goods and services and compensation,
claimed exceeds Rupees 20 Lakhs , but does not exceed 1 crore.

Before the Amendment Act, 2002 , the jurisdiction was from above 5 lakhs. There
will be a lesser number of direct complaints by , increase in the amount of the
jurisdiction.

2. To entertain appeal, against the orders of any Direct Forum within the
State and also,

3. To call for the records and pass appropriate orders in any customer
dispute , which is pending before or has been decided by any District
Forum, within the State. Such power can be exercised where it appears to
the State commission that such direct Forum has exercised a Jurisdiction
not vested in it by law or has failed to exercise a jurisdiction so vested , or
has acted in exercise of its jurisdiction illegally or with material
irregularity.

Conclusion

The Consumer Protection Act, has protected customers/consumers from getting

exploited by huge traders and companies. The Consumer Protection Act has
proved to be a helping hand for the consumers. Under the Consumer Protection
Act, there are six rights , which protect the consumers from getting exploited by
hazardous goods , also to get right information about the product , to choose the
right product. Most importantly , the consumer needs to be careful and aware of
the product and services which they are availing.

INFORMATION TECHNOLOGY ACT

The Information Technology Act, 2000 or ITA, 2000 or IT Act, was notified on
October 17, 2000.  It is the law that deals with cybercrime and electronic
commerce in India.  In 1996, the United Nations Commission on International
Trade Law (UNCITRAL) adopted the model law on electronic commerce (e-
commerce) to bring uniformity in the law in different countries.  Further, the
General Assembly of the United Nations recommended that all countries must
consider this model law before making changes to their own laws. India became
the 12th country to enable cyber law after it passed the Information Technology
Act, 2000.

While the first draft was created by the Ministry of Commerce, Government of
India as the Ecommerce Act, 1998, it was redrafted as the ‘Information
Technology Bill, 1999’, and passed in May 2000. 

Information Technology Act 2000, has 13 chapters, 94 sections and 4 schedules.

–  First 14 sections deals with some legal aspects concerning digital signature. 

Further other sections deal with certifying authorities who are licensed to issue
digital signature certificate. 

Sections 43 to 47 provide for penalties and compensation.

Sections 48 to 64 deals with Tribunals a appeal to high court.

Section 65 to 79 of the act deals with offences.  Section 80 to 94 deals with

miscellaneous of the Act

OBJECTIVE OF INFORMATION TECHNOLOGY ACT

Grant legal recognition to all transactions done via electronic exchange of data
or other electronic means of communication or ecommerce, in place of the
earlier paper-based method of communication.  Give legal recognition to digital
signatures for the authentication of any information or matters requiring legal
authentication  Facilitate the electronic filing of documents with Government
agencies and also departments  Facilitate the electronic storage of data  Give
legal sanction and also facilitate the electronic transfer of funds between banks
and financial institutions  Grant legal recognition to bankers under the Evidence
Act, 1891 and the Reserve Bank of India Act, 1934, for keeping the books of
accounts in electronic form.

FEATURES OF INFORMATION TECHNOLOGY ACT

All electronic contracts made through secure electronic channels are legally
valid.

Legal recognition for digital signatures.

Security measures for electronic records and also digital signatures are in place

A procedure for the appointment of adjudicating officers for holding inquiries

under the Act is finalized

Provision for establishing a Cyber Regulatory Appellant Tribunal under the Act.
Further, this tribunal will handle all appeals made against the order of the
Controller or Adjudicating Officer.

An appeal against the order of the Cyber Appellant Tribunal is possible only in
the High Court

Provision for the appointment of the Controller of Certifying Authorities (CCA) to

license and regulate the working of Certifying Authorities. The Controller to act
as a repository of all digital signatures.

The Act applies to offences or contraventions committed outside India  Senior

police officers and other officers can enter any public place and search and
arrest without warrant

Provisions for the constitution of a Cyber Regulations Advisory Committee to

advise the Central Government and Controller.

ELECTRONIC GOVERNANCE

It is the use of electronic means, to promote good governance. It connotes the

implementation of information technology in the government processes and
functions so as to cause simple, moral, accountable and transparent governance.
It entails the access and delivery of government services, dissemination of
information, communication in a quick and efficient manner.

BENEFITS OF E-GOVERNANCE

Reduced corruption
High transparency

Increased convenience

Growth in GDP

Direct participation of constituents

Reduction in overall cost.

Expanded reach of government

TYPES OF INTERACTIONS IN E- GOVERNANCE

G2G (Government to Government): When the exchange of information and

services is within the periphery of the government, is termed as G2G interaction.
This can be both horizontal, i.e. among various government entities and vertical,
i.e. between national, state and local government entities and within different
levels of the entity. G2C (Government to Citizen): The interaction amidst the
government and general public is

G2C interaction. Here an interface is set up between government and citizens,

which enables citizens to get access to wide variety of public services. The
citizens has the freedom to share their views and grievances on government
policies anytime, anywhere.

G2B (Government to Business): In this case, the e-governance helps the business
class to interact with the government seamlessly. It aims at eliminating red-
tapism, saving time, cost and establish transparency in the business
environment, while interacting with government.

G2E (Government to Employees): The government of any country is the biggest

employer and so it also deals with employees on a regular basis, as other
employers do. ICT helps in making the interaction between government and
employees fast and efficient, along with raising their level of satisfaction by
providing perquisites and add-on benefits.