Index

Acknowledgment ii

Certificate iii

Declaration iv

Table of Cases v

List of Abbreviations vii

Table of Content viii

Chapter I

Introduction to The Consumer Protection Bill,2016 (Proposed Reform) in India.

Chapter II

Consumer protection laws in India.

Chapter III

Consumer protection laws in Afghanistan.

Chapter IV

International developments of consumer protection laws.

Chapter V

Analysis, Conclusion, Suggestion

1
 ACKNOWLEDGEMENT

The completion of my Dissertation thesis would not have been possible without the kind support and help
of my individual. I would like to extend my sincere thanks to all of them

This is not merely a formality but a medium to express my cordial gratitude to all those who have directly
or indirectly helped me in through the course of this work.

I extend first and foremost thanks to my parents who always support me It would be impossible for me to
complete this thesis if they hadn’t unconditionally extended their support.

I am highly indebted to my guide and supervisor Prof. Sujata Aria, Faculty, Symbiosis Law School, Pune,
for her guidance and contact supervisions as well as for providing necessary information regarding the
dissertation and also for her support in completing the dissertation. I also thank her for all encouragement,
freedom and support. Being an international student it would be very hard for me to complete this
dissertation without my guide.

I express my special gratitude and thanks to Dr. Shashikala Gurpur, Fulbright Scholar, Director,
Symbiosis Law School, Pune and Dean Faculty of Law, SIU, Pune who gave me an opportunity to be a
part of such prestigious institute.

I also thank to the Faculty members, Library staff and Computer Lab Staff, Symbiosis Law School for
their vital support and making me accessible to all the primary, secondary and electronic sources for the
completion of this dissertation.

Date-

Place- Pune

Name: Farah Kohistani

PRN: 18010143091.

LLM

2
 CERTIFICATE

This is to certify that this dissertation thesis entitled “Consumer Protection Bill,2018(Proposed
Reform)” in India, has been prepared by Ms. Farah Kohistani, LLM.

Second Semester, Roll No 91, (Batch 2018-2019) Symbiosis Law School, Pune under my supervision and
guidance. To my opinion the thesis is the original work completed after careful research and analysis of
the available literature and relevant data. This thesis is of the standard expected from a candidate for
L.L.M degree and we recommend that it be sent for evaluation.

Date:

Place: Pune.

Prof. Sujata Aria

Guide and Supervisor

3
 DECLARATION

I declare that the dissertation thesis entitled “Consumer Protection Bill 2018 (Proposed Reform)”
which is submitted for the award of the degree of L.L.M has not been submitted by me in any other
university for any degree or diploma. The present thesis has been prepared by me on the basis of original
research.

Date:

Place: Pune

Name: Farah Kohistani

PRN:18010143091

LLM

4
 TABLE OF CASES

 State of Karnataka v. Vishwabharti House Building Coop. Society and Others. AIR 2003
SC 1043: 2003 (1) CPJ 1 (SC).
 Spring Meadows Hospital v. harjal Ahluwalia. 1998 (4) SCC 39.
 H.V.D.A. v. Narendra Singh Doon, 1996 CCJ 303(Haryana).
 Pratibha Pradisthan and Ors vs. Manager Canara Bank and Ors, (2008),3561, SCC (2017).
 Ashatai v Shriram City Union Finance Ltd. Civil Appeal No. 3962 of 2019.II (2019) CPJ
49(SC).
 Chariot World Tour Limited v. K.R Gurudadhwajan. II. (2019) CPJ 271 (NC).
 Karnataka Power Transmission Corpn.v. Ashok Iron Works Pvt. Ltd. (2009) 3 SCC 240.
 M/S Nestle India Limited vs The Food Safety and Standards. (2015). 1688.BHCR.
 M/S Auto Tractor Ltd v. Jaidev Prasad Singh. (2003) 1 CPR 52 (NC).
 Hyundai Motors India Ltd v. Suresh Kumar Sharma and Anr. II (2019) CPJ 400 (NC).
 Ranveet Singh Bagga v.KLM Royal Dutch Airlines, (2000) 1 SCC 66.
 Ashitosh Bansal v. Birla Institute of management and Technology and Ors. First Appeal
No. 129 of 2019.
 Chandigarh Housing Board v. Avatar Singh, (2010) 10 SCC 194.
 Abdul Rahiman vs. Airline Travels and Haji Omrah and Ors. (2016) Appeal No 829 of
2019.
 Ram Balakrishnan vs Somitri Das. 2011.Vol No 236. 24 May 2018.
 Union of India v Nilesh Agarwal. 1991) 1 CPR 23(Raj.CDRC.
 Shilaben Ashwin kumar Rana vs. Bhavan K. Shah and Anr.04/02/2019.II (SC).
 M.C Katare v. Bombay Hospital and Medical and Others. 1. 2010 (1) CPR 269 (NC).
 Charan Kamal Chopra v Dr.R.K. Gupta and Anr. II (2019) CPJ 414 (NC).
 Backett v. Kingston bros. [1970] 1 QB 606.
 Spice jet Ltd. vs Ranju Aery. REVISION PETITION NO. 1396 OF 2016.
 Dr. Jay Prakash Gupta vs. Flipkart Internet PVT Ltd (2018) appeal no A/147 of 2018.

5
 List of Abbreviation

AIR All India Reporter

AC Appeal cases

CPA Consumer Protection Act

CPB Consumer Protection Bill

Del. Delhi

E-commerce Electronic Commerce

Pvt. Private

pp. Pages

SC Supreme Court

SCC Supreme Court Cases

SCJ Supreme Court Journals

Sec. Section

U.S United States

U.K United Kingdom

vs. Versus

6
 TABLE OF CONTENTS

Contents Page No

Chapter 1 01-13

Consumer Protection Bill, 2018 (Proposed Reform) in India

1.1 Introduction

1.2 Problem Statement

1.3 Research Objectives

1.4 Research Questions

1.5 Research Methodology

1.6 Literature Review

1.7 Scope

1.8 Limitations

1.9 Thematic Chapterisation

7
Chapter 2 14-69

Consumer Protection laws in India

2.1 Introduction

2.2 Consumer Protection Act,1986

2.2.1 Constitutional Validity of the Consumer Protection Act

2.2.2 Object of Enactment of Consumer Protection Act,1986

2.2.3 Concept of Consumer

2.2.4 Rights of Consumers

2.2.5. Responsibilities as a Consumer

2.2.6. Complaint

2.2.7 Goods under Consumer Protection Act,1986

2.2.8 Defective Goods

2.2.9 Manufacturer

2.2.10 Services

2.2.11. Deficiency in Services

2.2.12. Consumer Protection Councils under the Consumer Protection Act of

1986

2.2.13. Consumer Disputes Redressal System

2.2.14. Remedy

2.2.15. Penalties

2.2.16 Amendments to the Consumer Protection Act,1986

2.2.17. Relationship between Law of Torts and Consumer Law

8
2.3 The Consumer Protection Bill,2018

2.3.1 Object of Consumer Protection New Bill

2.3.2 The main points and key highlights of the Bill ,2018

2.3.3 Increase in financial jurisdiction of Forum and Commission

2.3.4 Establishment of a Regular Central Consumer Protection Authority

2.3.5 Orders that Central Consumer Protection Authority can pass:

2.3.6 Penalties

2.3.7 Product liability under Consumer Protection Bill,2018

2.3.8 Unfair Contract under Consumer Protection Bill,2018

2.3.9 Unfair trade practices under Consumer Protection Bill,2018

2.3.10 Mediation under Consumer Protection Bill,2018

2.3.11 E-commerce under the Consumer Protection Bill, 2018

2.3.12 Comparison table of Consumer Protection Act,1986 with Consumer

Protection Bill,2018

2.4 Consumer Protection in Electronic-Commerce

2.4.1 Consumer’s rights protection in online world.

2.4.2 Benefits of e-commerce to consumers

2.4.3 Growth of ecommerce without effective e-commercial legal mechanism (e

justice)

2.4.4 Absence of well-informed and structured Online Dispute Resolution

mechanism for victimized e-consumers

2.4.5 Consumer protection in e-commerce under the consumer protection

Bill,2018

2.4.6 Threats to the rights of consumers in online world

9
2.5 Conclusion

10
Chapter 3 70-80

Consumer protection laws in Afghanistan

3.1 Introduction:

3.2 Afghanistan Consumer Protection Act, 2016

3.2.1 Objective of the Consumer Protection Act,2016

3.2.2 Important definitions under the Act

3.2.3 Applicability of Consumer Protection Act,2016

3.2.4 Manufacturer liability under Consumer Protection Act,2016

3.2.5 Supplier liability under Consumer Protection Act ,2016

3.2.6 The manufacturer or distributor is required to make the following

information available before the transaction is made in relation to goods or
service

3.2.7 Some other liability of manufacturer, supplier and service provider under
Consumer Protection Act 2016

3.2.8 Advertisement under Consumer Protection Act 2016

3.2.9 E-commerce under Consumer Protection Act 2016

3.2.10 Consumer Protection Agency under Consumer Protection Act 2016

3.2.11 Commission to prevent the production and distribution of the expired date
products, low quality product and fake product under Consumer Protection Act
,2016

3.2.12 High Committee under Consumer Protection Act,2016

3.3 conclusion

11
Chapter 4 81-90

International developments of consumer protection laws

3.1 Introduction

3.2 United States of America(USA): Efforts toward achieving better consumer

protection mechanism President Kennedy’s declaration on consumer rights

3.3 European Union Guidelines on consumer protection

3.4 consumer laws in United Kingdom

3.5 Conclusion

Chapter 5 91-104

Analysis of consumer protection laws in India and Afghanistan

5.1 Introduction

5.2 Conclusion

5.3 Suggestions

Bibliography 105-108

12
 Chapter 1

1.1 INTRODUCTION

The Consumer Protection Act, 1986 (CPA) is an Act that protects the interests of consumers and
as such makes provision for the establishment of consumer councils and other authorities that
help in settlement of consumer disputes and matters connected therewith.

Unlike the law of torts which is not codified in India, there are certain legislations that have been
formulated to protect consumers’ interest. Some of the significant enactments that are aimed at
protection of such interests include the Sale of Goods Act, 1930, the Agricultural Produce
(Grading and Marketing) Act, 1937, the Drugs and Cosmetics Act, 1940, the Indian Standards
Institution (Certification Marks) Act, 1952, the Food Safety and Standards Act, 2006, the
Essential Commodities Act, 1955, the legal Metrology Act, 2009, etc.

The Consumer Protection Act, 1986, defines Consumer in Section 2(d) "consumer" as a person
who:"(a) 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 a 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.

Moreover, there are Remedies under the Consumer Protection Act, 1986, depending on the facts
and circumstances, the redressed forums may issue orders for one or more of the following
Relief(s): Removal of defects from the goods, replacement of the goods, refund of the price paid,
award of compensation for the loss or injury suffered, withdrawal of the hazardous goods from
being offered for sale or award for adequate costs to parties and removal of defects or
deficiencies in the services. The Consumer Protection Act, 1986, though a successful legislation
has many loopholes such as the first class magistrate status granted to the consumer forums has
not been implemented. Another issue is with respect to the lenient approach towards the
judgment debtor in various provisions of the act.

13
The subsequent amendments such as one in 2002, also didn’t pay heed to such loopholes.
Although aspects like liberalization, globalization and e-commerce have provided better quality
of goods and services to the consumers by providing them innumerable choices of products,
however these have subjected the consumers to various malpractices in the commercial
environment, hence, it has made the consumer more vulnerable.

In order to combat such vulnerability, the Consumer Protection Bill of 2018, was proposed in the
Lok Sabha on January 5th 2018. This Bill was needed to close the loopholes of Consumer
Protection Ac. of 1986. However, the question remains whether this Bill fills the lacunas of the
1986 Act. The object of 1986 Act was to protect Consumer’s interest and to give a speedy
redress to Consumers, but this Act didn’t provide provisions regarding Consumer fraud.
Moreover, a much better mechanism was required to get rid of all the amendments brought to the
1986 Act.

The Consumer Protection Bill of 2018 brought some new provisions and changes in Consumer
market place. In addition to this, this bill deals with false and misleading advertisements. The
Bill 2018 established a “Central Consumer Protection Authority” which will protect rights of
Consumers, it will work as an investigator and will have a director general as well. Furthermore,
this authority will deal with matters which are harmful to Consumers’ interest like unfair trade
practices, misleading advertisements and liability of an actor or actress through the
advertisement they participated in. This Bill also provides a definition for the misleading
advertisement.

Furthermore, the Consumer Protection Bill of 2018 defines product liability of endorsers which
was not included in Consumer Protection Act, 1986. Under this Bill, the endorsers are liable for
the product they want to advertise. Additionally, manufacturers, product sellers and suppliers are
liable for the product they have manufactured, supplied or sold. In contrast to the Consumer
Protection Act of 1986, which lacked any provisions regarding the “unfair contract” the Bill of
2018 provides a provision for “Unfair Contract”. This Bill protects rights of consumer in e-
commerce, which is one of the recent issues consumers are dealing with.

14
Furthermore, the definition of the “deficiency” under Consumer Protection Act, 1986 is not
broad, but in the Bill of 2018, they have expanded the definition of the “deficiency” as per
Clause 2(11), It includes negligence exercises or omission or commission and deliberate
withholding of relevant information which causes loss or injury to the Consumer. Under the Bill
of 2018, the disputes can be sent to the mediation cell to settle their disputes to avoid them going
into forums. Moreover, the bill of 2018 raised the pecuniary jurisdiction to protect more
Consumer’s rights.

1.2 PROBLEM STATEMENT

The researcher in the present dissertation shall focus on the existing mechanisms in Consumer
Protection Act, 1986, whether they are successful or not in protecting consumers’ rights and
analyze as to how the Consumer Protection Bill, 2018 is sufficient and influential enough to
achieve the relevant purposes. And finally comprehend what the new law will achieve and how it
should be better implemented.

1.3 RESEARCH OBJECTIVES

1. To critically analyze the existing consumer protection mechanisms in India.

2. To critically analyze the objectives and intentions/purposes of the proposed bill of 2018.

3. To critically analyze the impact of the enactment of the proposed legislation on the consumers.

4. To evaluate/trace the changes in the status of the producers and sellers with respect to the
product liability.

5. To evaluate whether some of the provisions under the new Consumer Protection Bill of 2018
can be adopted by Afghanistan.

1.4 RESEARCH QUESTIONS

15
 1. What are the existing mechanisms to protect consumers from “Unfair Trade Practices” in
India and whether there are any loopholes in the existing Consumer Protection Act, 1986
in India?
2. Can the proposed Consumer Protection Bill of 2018, address the inherent loopholes and
provide powerful protection for the citizens?
3. What is international developments of consumer laws?
4. What are legal mechanisms to protect rights of consumers’ in e-commerce?
5. What are the loopholes in the Afghanistan Consumer Protection Act, 2016 with respect to
the Indian Consumer Protection Act and Bill?

1.5 RESEARCH METHODOLOGY

Research methodology adopted in this research is of Doctrinal method which relies upon primary
sources including formal and authoritative record of law, constitutional provisions, legal rules,
statutory provisions framed by law making bodies, subordinate or subsidiary legislations framed
by administrative bodies, reported decisions of courts and tribunals or anybody having power to
decide a dispute.

Secondary sources consist of books, articles, legal encyclopedias, cases, official statistics,
relevant documents and other library based sources of information.

The researcher will use analytical and comparative approach for the purpose of this dissertation.
This approach is adopted to find out the best mechanism for consumer’s protection and for
comparative analysis of different countries with Indian system. Under this, the researcher would
Analyze the concept of Consumer Protection Bill, 2018 (proposed Reform) and the need for this
Bill. In addition, it will compare Consumer Protection laws with Afghanistan’s Consumer
Protection laws.

1.6 LITERATURE REVIEW

Research on the concept of Consumer protection new bill,2018 to fulfill the lacunas of Consumer
Protection Act,1986 has been important in recent years, several motifs such as product liability,
fake advertisements, unfair contracts, e-commerce have been important subject of extensive

16
research. To comprehend the consumer issues in recent years is the first step toward consumer
welfare and consumer protection.

Articles

1. Y. Babji [2019]. Consumer Relations-Consumer Rights and Responsibilities and

Law. This paper provides an analysis about consumer relations, outlined rights of
consumer. It focuses on issues of consumers in developing countries like India, The
Author talked about responsibilities of consumers which open a way for future
research to find out how to protect and promote more rights of consumers. This
research paper defines the responsibilities of consumer towards safe waste disposal
and to endorse safer product Eco-labelling. The author highlighted about consumer
bonding as well. How ever this research paper didn’t outline what is responsibilities
of manufacturer, product seller and service provider towards consumers1.

2. Nidisha.Garg [2019]. Analyzing the Consumer Protection Bill 2018. The Author
investigate about the salient features of Consumer Protection Bill 2018, The research
highlights the key provisions under the Bill 2018, This paper articulate about product
liability, endorsers liability, unfair contract, e-commerce under the Bill 2018.This
essay looks into highlighted provisions which is very necessary for consumer welfare
in present business environment. Through this research the researcher understands
about the product liability of manufacturer, endorsers, service, provider. How ever

1
-Y. Babji. Consumer Relations-Consumer Rights and Responsibilities and Law. Association of business
communicator of India.2019. http://www.abci.in/article-Consumer-relations.htm.

17
 there is no comparison between Consumer Protection Act 1986 and Consumer
Protection Bill 20182.

3. Ajeet Kurana [2019]. Advantages and Disadvantage of e-commerce. This paper

analysis the advantages and disadvantages of e-commerce for consumers, highlights
how new market, new business model effects consumers. The author outlined the
importance of e-commerce for consumers, the paper look into the way e-commerce
eliminate the geographical limitations, lower cost products and several other benefits
which is for consumer welfare. Through this research the researcher understands the
benefits of e-commerce for consumers that how e-commerce provides for consumers’
low cost products and services with variety of choices and it gives them opportunity
to compare the goods and services and have more choices. But this research paper
didn’t articulate about what exactly e-commerce is and didn’t give an overview of
which one is better traditional commerce or e-commerce3.

4. Chiral Jain [2018]. How the Consumer Protection Bill 2018 Overcome These
Loopholes. The author overview and discusses the lacunas of Consumer Protection
Act,1986 and why there is need for a new Act. This article critically analysis all the
loopholes in CPA,1986 and reveals the need for Consumer Protection Bill,2018. The
author outlined the purpose of CPA,1986 and than mentioned how development of
technology lead to an urgent need of a new successful mechanism to protect
consumer. He explained key highlights of Consumer Protection Bill, 2018.Base on
this paper the researcher concludes that there is a urgent need for enactment of the
new Bill 2018, so that it will help consumers to resolve their disputes easily,
Moreover, the research imply that the Bill,2018 attempt to achieve the aim of
protecting the interest of consumer. Though under this article the author mentioned

2
Nidhisha Garg.Analyzing the Consumer Protection Bill 2018.Ipleaders.2 jan,2019.
https://blog.ipleaders.in/Consumer-protection-bill-2018/
3
Ajeet Kurana. Advantages and Disadvantage of e-commerce. The Balance Small Business.23 Apr,2019.
https://www.thebalancesmb.com/ecommerce-pros-and-cons-1141609.

18
 that there are various other provisions as well that have been introduced under
Consumer Protection Bill,2018, however, he didn’t articulate that provisions4.

5. Jaskaran Singh [2018]. Consumer Protection Bill,2018: An Insight. Mondaq.

This article investigates about amendments of Consumer Protection Act,1986 and
reasons of it due to some absent of some provisions, the author explained about new
Bill,2018 and outlined how marketing and advertisement a brand or service by
endorsers mislead consumers. The article analysis the current business model and
proposed for enactment of Consumer Protection Bill, 2018 more ever addresses the
relevant impact of Bill on Consumers, product seller, manufacturer, service renders.
In addition, the author compared the Jurisdiction of Consumer Forums and result
there of Consumer Protection Act,1986 and Consumer Protection Bill,2018 and
concluded that the Bill is more effective for consumer’s interest. The conclusion the
researcher draws from the research is taking liable endorsers like celebrities for
misleading endorsements will protect rights of consumer in advance not only in
traditional commerce also e-commerce. Moreover, the researcher outlines from the
research that how misleading advertisement by celebrities is effecting on consumers
and how to stop it. Though the article didn’t mention about some other provisions like
unfair contract under Consumer Protection Bill 20185.

6. Shah Usman [2018]. Highlights of The Consumer Protection Bill 2018. The author
has reviewed the Consumer Protection Bill,2018 and defined e-commerce under the
provision of Consumer Protection Bill 2018.This article articulates about how rights
of consumer will be protected in online world through the Bill,2018,on the other hand
the author analyzed the other important provisions of the bill as well and explained
them broadly, Base on the research the researcher concludes that in context of internet
4
Chiral Jain. How the Consumer Protection Bill 2018 Overcome These Loopholes? I pleader.2018
https://blog.ipleaders.in/loopholes-Consumer-protection-Act-1986-Consumer-protection-bill-2018-overcome-
loopholes

5
Jaskaran Singh.Consumer Protection Bill,2018: An Insight.Mondaq.28 Nov,2018.
http://www.mondaq.com/india/x/759070/Dodd-
Frank+Wall+Street+Reform+Consumer+Protection+Act/Consumer+Protection+Bill+2018+An+Insight

19
 where parties located in different corners of world and do business shows how unsafe
is electronic commerce so that it shows that there is a need of regulations to regulate
these online businesses, so that it will avoid the fraud, unfair trade practice and more
restrictive trade acts in e-commerce. Nonetheless the author didn’t outline about some
online disputes and cases in e-commerce so that it would give a brief Idea about how
the disputes being solved in e-commerce6.

7. Sanjay Kumar Mangla [2017]. E-Commerce in the Context of Trade,

Competition and Consumer Protection in India. This article explained about
consumer awareness, protection and welfare the fast grow of e-commerce, benefits of
e-commerce, However, the author outlined about side effect of e-commerce and
mentioned that due to e-commerce the number of cases which are against consumers
increased. In addition the author articulate about sectors which are protecting
consumer welfare in e-commerce and outlined them which are Indian laws and e-
commerce United Nation Commission on International Trade Law (UNCITRAL)
Model Law in e-commerce and protection of consumers in e-commerce by
organizations like International Chamber of Commerce (ICC), International
Consumer Protection and Enforcement Network (ICEPEAN) to conclude this
research the researcher understands the Consumer problems in online world like
digital payments failure, fraud, delay of delivering, credit/debit card security, fake
advertisements and more issues regarding consumer issues, But under this article the
author didn’t give any brief overview of consumer protection in e-commerce under
the Consumer Protection Bill7.
8. G.I.S Sandu [1996]. Consumer protection in India: some areas of illusion. In this
journal the author states about the historical background of Consumer Protection Act
1986 from ancient period to the modern period. Through this research the researcher

6
Shah Usman. Highlights of The Consumer Protection Bill 2018.Mondaq.23 May,2018.
http://www.mondaq.com/india/x/704090/Dodd-
Frank+Wall+Street+Reform+Consumer+Protection+Act/Highlights+Of+The+Consumer+Protection+Bill+2018
7
Sanjay Kumar Mangla, Jill Atieno Juma, Ujjwal Kumar, and Jeetali Agnani. E-Commerce in the Context of Trade,
Competition and Consumer Protection in India. Cuts International.10 Aug,2017.
https://www.cutscitee.org/pdf/Discussion_Paper_E-
Commerce_in_the_Context_of_Trade_Consumer_Protection_and_Competition_in_India.pdf.

20
 understands about the historical background of the consumer protection laws.
However, the author didn’t mention about the amendments of the Act8.

Books

9. Dr.S.C. Tripathy [2017]. In his book the author brought out research defining the
importance of consumer on business premises and mentioned about how rights of
consumer are being exploited by the expansion of business activities. This book
indicates rights of consumers, some landmark cases. The study interpreted each
provision of Consumer Protection Act, 1986.This book outlined the need of more
provisions to protect consumers and open a way for more investigation and research
about the loopholes in CPA 1986.This research open a way to researcher to know
about loopholes in Consumer Protection Act,1986. But the author didn’t mention
about amendments that took place on Consumer Protection Act,19869.
10. Dr. JN BAROWALIA [2017]. In this book he gives commentary on Consumer
Protection Act,1986, The author gives the review section wise and interpreted each
and every section of CPA, in addition the main part of book is about the case laws
which are up to date, The author investigate about issues relating to economics and
commerce and how consumers face damage, Moreover, this book is very informative
since the information’s of this book is being supported by case laws. The research
assisted the researcher to know about issues of current commerce and effect of them
on consumer and under this book the researcher reaches to some landmark cases and
judgments, In addition through this book the researcher find out that since lots of
amendments to Consumer Protection Act,1986 there is an urgent need of new Act.
However, the author of this book didn’t suggest a new law he just give commentary10.
11. Devendra Mohan Mathur [2017]: The author explained about immense detail an
interdisciplinary book on Consumer law and outlined landmark cases of supreme
court which are up to date cases. He written about judgments of these cases as well.

8
G.I.S Sandu. Consumer protection in India: some areas of illusion. 1996.Journal of the Indian Law Institute, Vol.
38, No. 3 (July-September 1996), pp. 377-386
9
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition M/S Universal Book Traders.2017
10
Dr. J N BAROWALIA. Foreword by D K Jain. Commentary on the Consumer Protection Act. Sixth Edition.
Universal Law Publishing. 2017

21
 Moreover, the Author overview the important definitions of Consumer Protection
Act,1986, In addition he well-founded about Remedy Civil Code, His idea open way
for future research about remedies for consumers whose rights will be exploited. This
research give rise to analyze cases and find out in which cases there was need for a
new Act to be enacted11.
12. Prof. Ram Naresh Chaudhary [2017]: The author explained about consumerism
and provisions and procedures of dispute resolution Moreover, he mentioned about
how consumer can get speedy redress for their complaint, the book outlined certain
definitions under Consumer Protection Act 1986, He highlighted about Consumer
commission and redressal agencies. This book outlined scope and extent of the Act,
Additional Remedies, Supplementary Remedies, Alternative Remedy and Arbitration
clause. Moreover, the Author figure out the limitation of the Act, scheme of the Act,
Provident fund, Exceptions under CPA,1986, Consumer disputes, unfair trade
practices and more important provisions. To conclude this study, the author gave a
brief overview of the CPA,1986, which assist the researcher to understand the value
of consumers, rights of consumers and what is consumerism and how it started.
Nonetheless there is insufficient cases which had been solved under Alternative
Remedy12.

13. Prof(Dr.) V.K Agarwal [2016]. in his book he outlines about the importance of
Consumer Protection Act,1986 and mentioned that this Act provide inexpensive
justice to consumers the author attempt to write an exhaustive commentary on
Consumer Protection Act,1986 and also supplemented leading consumer cases. The
author interprets the definitions under the CPA,1986 provisions. The publication
summarizes the landmark cases which are beneficial for researcher’s research to
know more about CPA,1986.however, in this book the amendments on Consumer
Protection Act,1986 is missing13.

11
Devendra Mohan Mathur.Consumer Law Digest.3rd Edition. LAWMANN’s. 2017.
12
RAM NARESH CHAUDHARY. Consumer Protection Law (Provisions and Procedure). Second Revised and
Updated Edition. Regal Publications.
13
Prof.(Dr.) V.K. Agarwal. Law of Consumer Protection.3 rd Edition. Bharat Law House.2016.

22
 14. Gagandeep Kaur [2015]: The author in her book Jurisprudence of E-Commerce and
Consumers Protection in India outlined about rights of online consumers in online
shopping and address that there is no specific legal framework for consumer
protection in e-commerce, she focused on practical application of law in e-commerce
where in the role of law has been analyzed for protection of online consumers. The
author written about each and every aspect of e-commerce and online consumers. Her
dynamic ideas on study of cyber law and Consumer protection law is an incentive for
future research.
By this book the researcher sensitize about emerging trends in cyber law but also
about one of the most ignorant phenomenon of cyber cum consumer law
jurisprudence that is a shield to rights of online consumers in e-shopping, e-contract
and e-banking. Although a lot of literature is available on cyber law in India, but there
is hardly any study on e-commerce from legal perspective. This book opens a way for
research to know legal rights of consumer in online world, In addition this book
outlined websites where consumer can complaint online which made the job of
consumer’s easy, but the author didn’t mentioned anything regarding making of Bill
2015 which included e-commerce but due to some loopholes the Bill was rejected14.

1.7 SCOPE

However, the scope of this research is very wide, it is not exactly the same in its operations.
Since Consumer Protection Bill reform, is to provide greater clarity about how to protect and
promote rights of consumers, which type of contract terms can be assessed for fairness and
which cannot (the exemptions), how to take liable the product sellers, manufactures then to
maintain the existing levels of consumer protection liability and historical prospective of
Consumer Protection Act, 1986 and development in the legislation regarding consumer
protection. Moreover, the consumer redress mechanism and agencies and the loopholes in CPA
1986. Furthermore, how the Consumer Protection Bill, 2018 will be effective and bring changes
to status of consumers.

1.8 LIMITATIONS
14
Gagandeep Kaur, Jurisprudence of Ecommerce and Consumer Protection in India, First Edition, Satyam Law
International, 2015.

23
Within the given time frame and available resources the research on Consumer Protection Act
proposed reform is complicated subject, elaborating on concepts, issues, controversies and
judicial response is submitted but there are certain limitations which are ventured in the course of
research given below in this dissertation, because of lack of time I couldn’t do empirical
research.

1.9 THEMATIC CHAPTERISATION

CHAPTER ONE: INTRODUCTION TO THE CONSUMER PROTECTION BILL, 2018

(PROPOSED REFORM) IN INDIA

This chapter contains the introduction part of the research which deals with the statement of the
problem of the research, research questions and what are the objective of this research.
Moreover, it outlines about the research methodology and what is the scope of this study and
limitations of this research. This chapter include short details regarding every chapter of this
research paper and the researcher mention books and articles that have taken for literature
review.

CHAPTER TWO: CONSUMER PROTECTION LAWS IN INDIA

The second chapter of this research deals with the history of Consumer Protection laws in India,
starting from ancient period to medieval period and from medieval to the modern period and how
the Consumer Protection Act, 1986 came into force, in addition this chapter deals with the object
of Consumer Protection Act, 1986. Furthermore, this chapter provides all important definitions
under Consumer Protection Act, 1986, this research outlined about consumer protection councils,
consumer redressal agencies, at the end there are mentioned about remedies and penalties under
the act of 1986, and amendments to the act. The rise in international business and the speedy
development of electronic trade brought new systems to consumers, in respect to goods and
services but unfortunately these changes brought unfair trade practices as well, so for
strengthening the rights of consumer, a Consumer Protection Bill passed by the Parliament of
India, to protect more interests of consumers. The Consumer Protection Bill is made to replace
Consumer Protection Act 1986.The preamble of the Consumer Protection Bill,2018, specially
provides the protection of the interest of consumers and for the purpose contain provisions for

24
the establishment of regulator body, there are provisions for product liability of manufactures,
product liability of the product sellers and there are provisions regarding the liability of the brand
ambassadors under this bill. In addition, this bill contains provision for consumers’ rights
protection in e-commerce. This chapter outlines about the alternative disputes redressal
mechanism and have provisions concerning the mediation cell and states about the changes in
pecuniary jurisdiction of Consumer Protection laws.in the last of this chapter the researcher
compares the Consumer Protection Act, 1986 with the Consumer Protection Bill,2018 and
highlight the need for the Bill,2018. This chapter has demonstrated that exploitation of
consumers in the cyber space and how to protect them, and the exploitation of their rights in
cyber space represents the largest generation of illegal activities whereby the electronic
onslaught has narrowed down the legal latitude and the entire consumer protection jurisprudence
is facing legal, technical operational challenges, Moreover, this chapter outlined about the modes
of violation of rights of consumers in online shopping which can be termed as ‘old frauds in new
bottles’ issues concerning flaws in validity of e-contracts, fake e-advertisement, privacy of
sensitive information and data protection in e-banking have been described, at the last this
chapter explained how the Consumer Protection Bill,2018 will protect consumers in online
worlds and how the rights of consumers are protected in e-commerce under this bill.

CHAPTER THREE: CONSUMER PROTECTION LAWS IN AFGHANISTAN

This chapter deals with Afghanistan Consumer Protection Act,2016, and the researcher states
about the application of the Act, commencement of the Act, objective of the Act,2016.
Furthermore, the researcher states about certain important provisions like product supplier,
product manufacturer, liabilities under the Act. Additionally, this chapter deals with committees
and redressal agencies for consumer disputes. under the Act and explained penalties and explains
the prosecution follow ups under this Act.

CHAPTER FOUR: INTERNATIONAL DEVELOPMENTS OF CONSUMER

PROTECTION LAWS

This chapter shares out the international developments of consumer’s laws and regulations and
outlined how countries started the consumerism and how they started protecting consumer in

25
different areas. Furthermore, this chapter covers the laws in European Countries like United
Kingdom more ever, development of consumer laws and regulations in United States of
America, under this chapter the commencement of consumer law in USA is outlined and how
John F Kennedy started the defense mechanism of consumer by mentioning rights of consumers.

CHAPTER FIVE ANALYSIS, CONCLUSION AND SUGGESTIONS.

In the last chapter the researcher draws a comparison table of Afghanistan and India laws.
Additionally, concludes all the topics and give suggestions and recommendations for the
enactment of proposed reform. Furthermore, the researcher states about the importance of
Consumer Protection Bill, 2018. The researcher in this chapter explained that how this bill will
fulfill the lacunas of the Consumer Protection Act, 1986. Under this chapter suggestion for India
is outlined that what India should learn from other countries’ laws, and how Afghanistan can
provide a better act for its citizens.

Chapter 2

CONSUMER PROTECTION LAWS IN INDIA

2.1 INTRODUCTION

Historical Background of consumer protection laws in India: Ancient India witnessed the
supremacy of the Vedas as a religious text, coming from God himself. The Vedas was strictly
followed by the majority in the Ancient Indian society. Apart from the Vedas, this period also
gave rise to the Code of Chanakya, Manu Smriti, Narada Smriti and so on. These Ancient codes
contained provisions which sought to safeguard the interests of the Consumer, with the aim of
Consumer safety. The punishment was also granted when the Consumer-related provisions were
gone against.

Among the Dharmas, the most authoritative texts are:

 Manu Smriti
 Yajnavalkya Smriti

26
  Narada Smriti
 Bruhaspati Smriti
 Katyayana Smriti.

Among these, Manu Smriti was the most influential.

Consumer Protection was a primary concern in mid periods as well, during rules of
Muslims in India there were rules according to local conditions and these rules was very
stringent and there was system set for price enforcement which was made by sultan Alauddin
Khilji in market that everyone was obliged to follow all rules which was set by the sultan in
market. There were rules which were protecting Consumer’s rights.

But in the modern time when British regimes started ruling in India British rules took place of
old rules and the British legal system started administrating the India, despite the British legal
system was administrating in Indian market still India’s custom and tradition system was there
and both rules was combined. Moreover, during British regime some laws passed for consumer
protection, for instance, the Indian Contract Act 1872, the Sales of goods Act of 1930, the Drugs
and Cosmetic Act of 1940, the Usurious Loans Act of 1918, the Agriculture Procedure Act of
1937 and the Sale of goods Act of 1930, was the main source of Consumer protection for 55
years, It was also praised as “Consumer Charter”.

Moreover, the Indian Penal Code of 1860, provided Consumer Protection as well it deals with
the offences which is regarding to the use of false weights and measures the sale of harmful food
or drinks or sale of adulterated drug or food.

After India’s freedom from British Regime Consumer Protection legislation approved which was
including essential Commodities Act of 1955, Prevention of Food Adulteration Act of 1954, The
Standard of Weights and Measures Act of 1976. afterwards consumer had rights under Torts law
as well. In India, consumer justice is a part of social and economic justice as enunciated in the
constitution. Following the constitutional mandate a number of legislations15 have been enacted
in the field of consumer protection relating to standardization, grading, packaging and branding,
prevention of food adulteration, short weights and measures, hoarding, profiteering, etc.

15
see, E.G. Drug (Control Act, 1950.

27
Which are as followings:

 The Indian Contract Act of 1872.

 The Sale of Goods Act of 1930.
 The Indian Panel Code.
 The Drugs and Cosmetic Act of 1860,
 The Usurious Loans Act of 1918,
 The Agricultural Procedure (Grading and marketing Act) of 1937.
 The Prevention of goods Adulteration Act, 1954.
 The Plant Quarantine order,2003
 The Insecticides Act.
 The Food Adulteration Act, 1954.
 The Fruit Products Orders, 1955.
 The Essential Commodities Act of 1955.
 The Meat Food Product Order,1973.
 The Milk and Milk Product Order ,1992.
 The Standards on Weight and measurement Act,1976.
 The Bureau of Indian Standards Act, 1986 and some other Orders and Acts.
However later the government of India thought of a completely new law for consumer
protection, as the Law of Torts and Contract was not sufficient to protect rights of consumers so
that policy makers started crafting specific legislation for consumer protection as a result the
Consumer Protection Act of 1986, enacted which was the easiest way for consumers to get
access to justice.

The aim of ‘Consumer Protection Act’ of 1986 was to protect interest of Consumer and protect
their rights, to provide justice but less formal so Consumer gets a positive effect of this Act.
‘Consumer Protection Act’ of 1986 enacted by parliament of India in October,1986 and come
into force on 24 of December 198616.

16
Sunitha Kanipakam, Consumer Protection in India-special reference to the right to safety. Article in International
Journal of Advanced Research. research gate.

28
2.2 CONSUMER PROTECTION ACT,1986

In India the consumer movement started since 1960 which travelled a long distance to reach to
the middle class consumer in 1980. The making of Consumer Protection Act commenced in
January 1986, with an All India seminar held in New Delhi. In this seminar the representatives of
the State Governments, Central Ministers and voluntary consumer organisations actively
participated, consequently, legislative attempts were commenced. But to pursue or redress
consumer’s grievance through expensive machinery of litigation, it was realized to have statutes
which deal exclusively and practically with the consumer’s protection. Thus, the result of
legislative activism resulted into incorporation of the Consumer Protection Act, 1986. This Act
provides better protection of the interest of consumers and for that purpose to make provision for
the establishment of Consumer Councils and other authorities for the settlement of consumer’s
disputes and for matters connected therewith. The Consumer Protection Act, 1986 provides a
consumer a very economical remedy by way of speedy three-tier system of redressal of
grievance. The act contains no provision as a Court fees and necessity of engaging lawyers.
Thus, the parties can file complaint themselves or through any representative. Under the Act
Consumer has also an option to file complaint through recognized consumer association.

The year 1986 marked special in the filed of legislation of India for extending the principle of
‘locus-standi’ recognizing consumer’s interest through registered voluntary consumer
associations to seek remedy under the Consumer Protection Act,1986. This Act has been enacted
with the purpose of social benefit oriented legislation. The Act provides expeditious and
efficacious machinery for economical settlement of consumer disputes. There is direct
interference of the Central Government in consumer movement in India in public and social
interest apart from its ‘locus standi’ under section 2(1)(b)(iii) of the Consumer Protection
Act,1986.

Though, the Consumer Protection Act,1986 is in force since 24th December, 1986, about 33
years, but it still in its infancy. The benefit of this welfare legislation is yet to reach to the
common man as intended under the Act. It is mainly due to lack of educational awareness of

file:///Users/user/Downloads/CONSUMER_PROTECTION_IN_INDIA_-_A_SPECIAL_REFERENCE.pdf. (Last
visited on 30th Jan, 2019 at 09:23 am).

29
right of consumers. It is true that the Central Government has played a positive role in this filed
but still the movement of consumer is in its infancy. It cannot be said that consumer in India are
still unarmed. They have social beneficial legislation for the protection of consumer’s interest.

The Act mandates establishment of Consumer Protection Councils at the Centers as well as in
each state and District, with a view to promoting consumer awareness. The Central Council is
headed by Minister In-charge of the Department of Consumer Affairs in the Central Government
and the Sate Councils by the Minister-In-charge of the Consumer Affairs. The Act mandates
establishment of Consumer Protection Councils at the Center as well as in each State and
District, with a view to promoting consumer awareness. The Central Council is headed by
Minister-In-charge of the Department of Consumer Affairs in the Central Government and State
Councils by the Minister In-charge of the Consumer Affairs in the State Government. It also
provides for a 3-tier structure of the national and State Commission and district Forums for
speedy resolution for consumer disputes.

To provide inexpensive, speedy and summary redressal of consumer disputes, quasi-judicial

bodies have been set up in each District and State and at the national Level, called the District
Forum, the State Consumer Disputes Redressal Commissions, and the national Consumer
Disputes Redressal Commission respectively.

The remedy under the Consumer Protection Act is an alternative in addition to that already
available to the aggrieved persons/consumers by way of civil suit. In the
complaint/appeal/petition submitted under the Act, a consumer is not required to pay any court
fees but only a nominal fee. Consumer Forum proceedings are summary in nature. The endeavor
is made to grant relief to the aggrieved consumer as quickly as in the quickest possible, keeping
in mind the provisions of the Act which lay down time schedule for disposal of cases.

2.2.1 CONSTITUTIONAL VALIDITY OF THE CONSUMER PROTECTION ACT

Before the Supreme Court in the case of State of Karnataka v. Vishwabharti House Building
Coop. Society and Others17, the writ petitions was filed challenging that the parliament has no
legislative competence to establish a parallel hierarchy of consumer Courts vis-à-vis Civil Courts

17
AIR 2003 SC 1043: 2003 (1) CPJ 1 (SC).

30
in the absence of an amendment in Article 368 of the Constitution of India, 1950. The Supreme
Court opined that the Consumer Protection Act cannot be said to be unconstitutional. It may be
true that there does not exist any provision to Grant injunction.

Absence of such provision in the Court’s opinion would not render the statute ‘ultra vires’ the
Constitution or unworkable. The very fact that in a given case a Court and/or may otherwise take
recourse to the remedy of judicial review the interests of the parties must be held to have been
sufficiently safeguarded. The provisions relating the power to approach appellate Court a party
aggrieved by a decision of the forum/State Commissions as also under the power under Article
226/227 and 32 of the Constitution to the high Court and Supreme Court, respectively apart from
this Section 23 of the Consumer Protection Act provide adequate safeguards. Furthermore,
primarily the jurisdiction of the forum commission is to grant damages. In the event complainant
feels that he will have a better and effective remedy in a Civil Court he may seek an order of
injunction. He indisputably may file a suit in an appropriate civil court or may take recourse to
some other remedies as provided for in other statutes. Hence, the Supreme Court agreed with the
view taken by the Karnataka high Court that the provisions contained or found in the Consumer
Protection Act cannot be termed as unconstitutional.

In Spring Meadows Hospital v. Harjal Ahluwalia18, the Apex Court has said that extent of
persons covered by the expression “Consumer” for claiming compensation, a liberal approach is
desirable. Where a child was taken to a private hospital by his parents, said child as well as
parents could be covered by the expression “consumer” and both of them will be entitled to
claim damages on account of negligence on the part of the hospital, its members and doctors.

In the present case, interpretation of clause (ii) of Section 2(1)(d) was involved. In the said clause
a consumer would mean a person who hires or avails of any services and includes any
beneficiary of such services other than the person who hire or avails of the services. When a
young child is taken to a hospital by his parents and the child is treated by the doctor, parents
would come within the definition of “consumer” having hired the services and the young child
would also become consumer under inclusive definition being beneficiary of such services. The
definition clause being wide enough to include not only the person who hires the services but

18
1998 (4) SCC 39.

31
also the beneficiary of such services which beneficiary is other than the person who hires the
services, it was held that both child and his parents are consumer within the meaning of Section
2(1)(d)(ii) of the Consumer Protection Act, 198619.

2.2.2 OBJECT OF ENACTMENT OF CONSUMER PROTECTION ACT 1986, INDIA

The Consumer Protection Act, 1986 seeks to provide for the better protection of the interests of
Consumers and to achieve that objectives it makes provision for the establishment of Consumer
Council and other authorities for settlement of Consumer disputes and other matters relating
thereto. The objects and reasons for passing the said Act are in shorts as follows; -

a) The rights of Consumers are to be protected against marketing of goods which are
hazardous to life and property.
b) The rights of Consumers are to be informed to them about quality, quantity, potency,
standard and price of the goods against unfair trade practice.
c) The rights are to be assured, wherever possible, access to an authority of goods at
competitive prices.
d) The right is to be heard and to be assured the Consumer interests receive due
consideration at appropriate forums.
e) The right for redressal against unfair trade practices.
f) The right to consumer education is also to be provided.

These objects are promoted and protected by the Consumer protection council at center and
at the state level.to provide speedy and simple redressal to consumer disputes a quasi-judicial
machinery has been set-up at the district, state and central level. These quasi-judicial bodies
will observe the principle of natural justice and they are empowered to give reliefs of specific
nature and to award, whenever appropriate, compensation to Consumer. Penalties for non-
compliance of the orders passed by the quasi-judicial bodies have also been provided. These
objects are sought to be promoted and protected by the Consumer protection council to be

19
Dr.S.C Tripathy. The Consumer Protection Act.6th Edition M/S Universal Book Traders.2017. Pg.5.

32
 established at the central and state level. And to provide speedy and simple redressal to
Consumer disputes20.

2.2.3 CONCEPT OF CONSUMER

Generally, buyers and seller of goods are treated to be in the position of equality in the
eye of Law, but in large number of cases, the buyer, by virtue of haste, ignorance, gullibility,
inferior bargaining position or simple imprudence enters into transactions in which the goods
supplied or the term of the contract or both are unsatisfactory. In such case the buyer requires
special protection as Consumer.

The word “Consumer” has acquired special significance under the law relating to consumer
protection. Thus, in the United Kingdom, United States of America, India and other European
Countries consumer protection law has received special significance in granting speedy remedies
to the consumers. A “Consumer” in some statutes is roughly defined as a private buyer from a
“commercial seller”21.

In India a child undergoing treatment as well as his parents are Consumers. The definition of
“Consumer” under section 2(1)(d) of the Consumer Protection Act,1986 is wide enough to
include not only person who hires or avails services, but also beneficiary of such services other
than the person who hires or avails services. A person who buys goods and uses them himself
exclusively for purpose of earning his livelihood by mean of self-employment is a ‘Consumer’22.
within the meaning of section 2(1)(d) of the Consumer Protection Act. In many cases a consumer
prefers to reject the goods and asks for the return of price paid for them. such rejection must be
firm and not hedged around with qualification23.

Consumer: Referred to a” person buys any good for a consideration that has been paid or
promised or partly paid and partly promised, or below any system of payment and includes any
user of such goods aside from the one who buys such goods for consideration paid or promised

20
Dr. Sadyojathappa S. Need for Consumer Protection Act in India in the Present Scenario. International Journal of
Engineering Research and Development. http://www.ijerd.com/paper/vol13-issue9/G1395558.pdf. (Last visited on
15th march, 2019 at 2:19pm).
21
see(English) Fair Trading Act,1973, Section 137(2), Consumer Protection Act,1986, section2(1)(d).
22
-Consumer Protection Act 1986. Sec 2(d).
23
Devendra Mohan Mathur.Consumer Law Digest.3rd Edition. LAWMANN’s. 2017.Pg 458.

33
or partly paid or partly promised, or below any system of payment once such use is formed with
the approval of such person however doesn't embody someone who obtains such goods for resale
or for any business purpose. Or any services for a consideration that has been paid or partly paid
and promised, or below any system of payment and embody any beneficiary of such services
aside from person who rent services for consideration paid or promised, or partly paid and
promised, or below any system of payment once such services are availed of with the approval of
the primary mentioned person however doesn't embody someone who avail of such services for
any business purpose”24.

In Gujarat Housing v. Akhil Bhartiya Grahak Panchayat, where Housing Development Board
was providing public services in housing, i.e., construction of houses. Development Board was
held to be consumer within the meaning of Consumer Protection Act ,1986.similarly, the
allottees of the housing scheme by method of auction carried out by Haryana Urban
Development Authority are the Consumers25.
Consumer may be a one who buys any goods to consume either as eatable or otherwise from a
store, business house, corporation, store, fair costs shop. In the case of Pratibha Pradisthan and
Ors vs. Manager Canara Bank and Ors26, on 7th march,2017 the appeal was dismissed since a
trust is not a person nor a Consumer so it can’t file a case under Consumer Protection Act
,198627.

2.2.4 RIGHTS OF CONSUMERS

The basic rights of Consumers were first recognized and defined on March 1962 by John F
Kennedy. The President of the United States of America, in his special message to the congress
on consumer protection, four basis rights such as the right to safety, right to be informed, right to
choose, and right to be heard were incorporated in the United Nation charter as human rights.
Later the International Organization of Consumers Union and the Confederation of Indian
Consumers organization added three more rights like right to healthy environment, right to

24
Dr.S.C Tripathy. The Consumer Protection Act.6th Edition M/S Universal Book Traders.2017. Pg.26.
25
H.V.D.A. v. Narendra Singh Doon, 1996 CCJ 303(Haryana) (Last visited on 7th Jan, 2019 at 9:00pm).
26
Pratibha Pradisthan and Ors vs. Manager Canara Bank and Ors, (2008),3561, SCC (2017) (Last visited on 9th
may, 2019 at 07:20 am).
27
https://indiankanoon.org/doc/183783273/. (Last visited on 7th Jan, 2019 at 8:40 pm).

34
consumer education and right to be redressed. In the National Convention of CICO, held at
Calcutta in 1991, a resolution was passed for the inclusion of another rights, the right to boycott
Moreover, right to basic needs in the latest addition to the rights of consumers. These rights,
declared and recognized internationally, it adds a new dimension to consumer protection. Each
of these rights tries to widen the scope of consumer protection. The consumer rights are
discussed in detail in the following paragraphs.

1-Right to safety: The consumers have the right to be protected against the marketing of goods
and services, which are hazardous to life and property. The purchased goods and services availed
of should not only meet their immediate needs, but also fulfill long term interests. Producers
need to strictly follow the required safety rules and regulations. There are many goods and
services that we purchase that require special attention to safety. Before purchasing, consumers
should insist on the quality of the products as well on the guarantee of the products and services.
They should preferably purchase quality marked products such as ISI, AGMARK, etc.

2- Right to choose: The consumer has right to be assured, wherever possible of access to variety
of goods and services at competitive price. In case of monopolies, it means right to be assured of
satisfactory quality and service at a fair price. It also includes rights to basic goods and services.
This is because unrestricted right of the minority to choose can mean a denial for the majority of
its fair share. This right can be better exercised in a competitive market where a variety of goods
are available at competitive prices. Any consumer who receives a service, has the right to choose
whether to continue to receive the service.

3-Right to be information: The consumer has the right to be informed about the quality,
quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair
trade practices. Consumer should insist on getting all the information about the product or
service before making a choice or decision. This will enable him to act wisely and responsibly
and also enable him to desist from falling prey to high pressure selling techniques. Consumer can
then complain and ask for compensation or replacement if the product proves to be defective in
any manner.

35
4-Right to be heard: This right assumes a significant place in law whenever there is a dispute
against any individual in the society; this means the right to representation, so that Consumer’s
interests receive full and sympathetic consideration against exploitative elements in the society.
Whenever a seller sells goods to a buyer or whenever one renders services to another, it become
his duty to give a patient hearing to the problem of the buyer or the receiver of the service.

5-Right to Consumer education: The consumer has right to acquire the knowledge and skill to
be an informed consumer throughout life. Ignorance of consumers, particularly of rural
consumers, is mainly responsible for their exploitation. They should know their rights and must
exercise them. The government or other organization should make attempt to educate citizens
about various aspects of consumer welfare. Only then real consumer protection can be achieved
with success.

6-Right to seek redressal: Consumer have the right to seek redressal against unfair trade
practices or unscrupulous exploitation. It also includes right to fair settlement of the genuine
grievances of the consumer. Consumer must make complaint for their genuine grievances. Many
times their complaint may be small value but its impact on the society as a whole may be very
large. They can also take help of consumer organizations in seeking redressal of their grievances.
A consumer can claim compensation for damage caused by any product or service. He or She
can file a case in the consumer court against the shopkeeper or manufacturer.

7-Right to healthy environment: This is the right to live and work in an environment which is
neither threatening nor dangerous and which permit a life of dignity and well-being.

8-Right to boycott: This is the right to boycott any goods or services or person, in the event of a
conflict with consumer interest.

9-Right to basic needs: It is the primary right of a Consumer as a human being. The survival of
an individual will be jeopardized if his/her basic needs are not met. Denial of this right results in
the denial of the very essence of material life to consumers. The idea of Consumerism starts from

36
the Act of consumption and the consumption priorities are meant for the fulfillment of the basic
needs of an individual28.

2.2.5. RESPONSIBILITIES AS A CONSUMER

 To get full information regarding quality and price before making online or normal
purchase
 Buying quality products at reasonable price.
 Read information carefully on the packets before purchase.
 Don’t feel tempted on misleading advertisements.
 To be careful about false and/or misleading advertisements.
 To purchase goods having ISI marks, Ag-Mark etc.
 Obtain proper receipt/cash memo for purchase made and guarantee/warranty card
duly-stamped and signed by the seller, wherever applicable29.
 Approach district forum, state commission or national commission for redressal of
Consumer grievances against sale of defective goods or deficient services or adoption
of unfair trade practices.
 Ensure date of manufacturing, expiry date, maximum retail price (MRP) etc. is
indicated on packaged commodities.
 Remember MRP is not a government fixed price and you can bargain.
 No one sell more than MRP.30

2.2.6. Complaint

In terms of Section 2(1)© of the Consumer Protection Act the expression “complaint” means any
allegation in writing made by a complainant against an unfair trade practice or a restrictive trade
practice which has been adopted by any trader, the goods bought by him or agreed to be bought

28
B Suresh Lal, Introduction to Consumers Right and Responsibilities. First Edition, Publisher Serials Publication,
pp. 295-329.
https://www.researchgate.net/publication/311562679_INTRODUCTION_TO_CONSUMER_RIGHTS_AND_RES
PONSIBILITIES. (Last visited on 10th march, 2019 at 5:50 pm).
29
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition/S Universal Book Traders.2017. Pg.14
30
Y. Babji. Consumer Relations-Consumer Rights and Responsibilities and Law. Association of business
communicator of India. http://www.abci.in/article-Consumer-relations.htm. (Last visited on 15th may, 2019 at
12:22pm)

37
by him, which suffers from one or more defects, the services hired or availed of or agreed to be
hired or availed of by him which suffers from deficiency in any respect, where a trader has
charged for the goods mentioned in the complaint a price in excess of the price fixed by or under
any law for the time being in force or displayed on the goods or any package containing such
goods; if goods which will be hazardous to life and safety when used, are being offered for sale
to the public in contravention of the provisions of any law for the time being in force requiring
traders to display information in regard to the contents, manner and effect of use of such goods,
with a view to seeking any relief before the forum/commission as provided under the Consumer
Protection Act.

2.2.7 GOODS UNDER CONSUMER PROTECTION ACT,1986

The Consumer Protection Act doesn’t define the term goods perse, but provide under section 2(i)
that “goods” means goods as defined in the Sales of Goods Act 1930 “. Section 2(7) of the sale
of goods Act 1930, defines “goods” as ‘goods’ means every kind of movable property other than
actionable claims and money: which includes stock and shares, growing crops, grass, and things
attached to or forming part of the land which are agreed to be served before sale or under the
contract of sale”31. this definition of goods as provided under the Sales of Goods Act 1930, states
that any item in order to qualify as goods:

(1) Must be movable:

(2) Includes

(a) Shares and stocks.

(b) Things attached to or forming part of land which can be severed or agreed to be severed
before the sale under the contract of sale.

(3) But doesn’t include actionable claim and money32.

31
Sales of Goods Act 1930.Sec 2(7). Act No 3. year of volume 1930.
32
Dr. J N BAROWALIA. Foreword by D K Jain. Commentary on the Consumer Protection Act. Sixth Edition.
Universal Law Publishing. 2017.Pg 531.

38
Moreover, Food Safety and Standards Act, 2006 also defined goods as “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;

2.2.8 DEFECTIVE GOODS

Section 2(1)(f) of the Act defines the term “defect”. The definition states,” 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 of time being in force under any contract, express
or implied or as is claimed by the trader in any manner whatsoever in relation to any goods”. The
coverage of this definition is very wide “defect” as has been defined above, states that in order to
be covered within its ambit, the “goods” must bear:

(1) Any fault, imperfection or shortcoming.

(2) Any fault, imperfection or shortcoming should be in the quality, quantity, potency,
purity or standard of the goods;

(3) This standard is with reference to a standard required:

(a) Under any law for the time being in force; or

(b) Claimed by the trade in any manner whatsoever in relation to any goods.

The definition provided above states that Act covers only defects specifically mentioned
above. Any type of defect not mentioned in the definition will not be entertained by the
Consumer forum. Also the definition specifies that the defect has to be in relation with
goods only and if any item does not fall within the definition of “goods” no defect can
be complained their in33.

In Case of Ashatai v. Shriram City Union Finance Ltd. The Ashatai filed complaint about the
deficiency in service which was delay in obtaining insurance policy of her husband by the

33
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition/S Universal Book Traders.2017. Pg.49.

39
finance company. Afterwards judgment came out it was proved that there was deficiency in
service under section(2) of the Act so the complainant was awarded compensation34.

In Case of Chariot World Tour Limited v. K.R Gurudadhwajan 35, where the complainant was
asked to share triple room despite a double room despite of payment for double room to the
Chariot World Tour Limited , which caused mental agony so that the complainant faced
deficiency in service, The complaint was allowed by district forum and dismissed appeal by the
State Commission so that the complainant awarded compensation and the revision petition was
dismissed.

In case of Karnataka Power Transmission Corpn.v v. Ashok Iron Works Pvt. Ltd36. The
contentious issue was whether negligence, delay and additional charges imposed by the
Karnataka Power Transmission Corporation (KPTC) to a consumer will fall under “defective
goods” or “deficiency in services” or both. The supreme Court held that electricity wouldn’t fall
under sale and purchase of goods within the meaning of section 2(1)(D)(i) of the Consumer
Protection Act. Therefore, no defective goods case could be made out. The court held that it
would fall under the head of services and stated: as indicated in the definition of “service” the
provision of facilities in connection with supply of electrical energy is a service .Supply of
electricity by the board or for that matter KPTC to a Consumer would be covered under
Section2(1)(o) being ‘service’ and if the supply of electrical energy to a consumer is not
provided in time as is agreed upon, then under Section2(1)(g), there may be a case for deficiency
in service37. In case of M/S Nestle India Limited vs The Food Safety And Standards38.on 13
August, 2015, the complaint was filed against Maggi instant noodles that it has excess lead and

34
Ashatai v Shriram City Union Finance Ltd. Civil Appeal No. 3962 of 2019.II (2019) CPJ 49(SC). (visited on 30 th
of may. 12:53pm)
35
Chariot World Tour Limited v. K.R Gurudadhwajan. Revision petition No.123 of 2019 against Order dated
24.7.2018 Appeal No 596 of 2017 of Karnataka State Consumer Disputes Redressal Commission. II. (2019) CPJ
271 (NC). (visited on 25th of may. 7:06pm)

36
Karnataka Power Transmission Corpn.v. Ashok Iron Works Pvt. Ltd. (2009) 3 SCC 240. (visited on 30th of Feb.
12:53pm)

37
Devendra Mohan Mathur.Consumer Law Digest.3rd Edition. LAWMANN’s. 2017.Pg 494.
38
M/S Nestle India Limited vs The Food Safety and Standards. (2015). 1688.BHCR.

40
artificial MSG in it and called Maggi as a defective good but after 29 sample test conducted from
instant noodles, the court decision was that there is no excess lead or artificial MSG in it39.

2.2.9 MANUFACTURER

The Term ‘Manufacturer’ has been defined in clause(f) of section 2(1) of the Act.
Manufacturer means a person who makes or manufactures any goods or parts there
of;(ii) does not make or manufacture any goods but assembles parts thereof made or
manufactured by others; or(iii) puts or causes to be put his own mark on any goods made
or manufactured by any any other manufacturer. The reference to assembled goods
makes it clear that person who produces final product from components manufactured
by others is to be treated as having manufactured that product.in such cases there is no
indication that actual manufacturer is also not liable, and it will follow that for the
purpose of Act40.

In M/S Auto Tractor Ltd v. Jaidev Prasad Singh41, the complaint was filed that there is
major defects in tractor, the complainant asked for refund, the State Commission passed
directions, to repair the tractor and remove defected parts and issue fresh warranty and
also rewarded Rs.10000/- as a compensation42.

In case of Hyundai Motors India Ltd v. Suresh Kumar Sharma and Anr 43, where the
complainant complaint about vehicle defect which was defective good, the steering
wheel was damaged and the defect part was the automatic locking of the steering wheel,
which is defected good under Section 2 of the Act, so the district forum awarded him
with Rs.15,84,104/- . After case analysis the court dismissed the revision petition.

39
DUllbonline.M/S Nestle India Limited vs The Food Safety and Standards on 13 August, 2015. Available at
https://dullbonline.wordpress.com/2017/07/25/ms-nestle-india-limited-vs-the-food-safety-and-standards-authority-
of-india-wpl-no-1688-of-2015/.(Last visited on 10th April, 2019 at 12:29pm)
40
Dr. J N BAROWALIA. Foreword by D K Jain. Commentary on the Consumer Protection Act. Sixth Edition.
Universal Law Publish. Pg. 533.
41
(2003) 1 CPR 52 (NC).
42
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition/S Universal Book Traders. 2017.Pg 194
43
Hyundai Motors India Ltd v. Suresh Kumar Sharma and Anr. Revision petition No 212 of 2019 against order
dated 12.10.2018 in Appeal No 864 of 2018 of Chhattisgarh State Consumer Disputes Redressal Commission. II
(2019) CPJ 400 (NC). (visited on 10 th of June. 12:53pm)

41
 2.2.10 SERVICES

Section 2(1)(o) of the Act defines “Service” as “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 , financial, insurance, transport, processing, supply
of electrical or other energy, board or lodging or both, housing construction,
entertainment, amusement or the purveying of news or other information, but does not
include the rendering of any services free of charge or under a contract of personal
service.”

Wide ranges of services are covered under the purview of the Act e.g.:

(1)” Medical services” the position has been settled by the supreme court in the case of
Indian Medical Association vs. V.P Shantha, where the court has said that the services
rendered free of cost, would fall under the ambit of “service” as defined in the Act, it
was only after the judgment of Supreme Court in Indian Medical Association vs. VP
Shantha, that medical profession has been brought under the purview of Consumer
Protection Act,1986 vide Section 2(1)(o), 1986, of the Act.

(2)”Electrical Services”, facilities in connection with the supply of electrical or other

energy is included in the definition of the word “service” under the Act44.

(3)”Air Service” offered by an Indian , foreign and private airline constitute “service”
for consideration under the Act and would not fall under a contract of personal service45.

(4) “Courier Services” are another services, which have come under the purview of the
Act and “deficiency in services” by the couriers can be subject matter of the complaints
under the Act.

44
Karnataka Power Transmission Corpn.v. Ashok Iron Works Pvt. Ltd, (2009) 3 SCC 240. (visited on 09th Feb,
2019 at 8:00am).
45
Ranveet Singh Bagga v.KLM Royal Dutch Airlines, (2000) 1 SCC 66. (visited on 09th Feb, 2019 at 8:30am).

42
 (5)” Baking and Financing Services” have been specifically included in the definition
of “services” under the Act. The same applies to “insurance” services” as well.

(6)” Railway Services” also come under the definition under the heading “transport and
facilities in connection with transport”.

(7) “Telephone Services” also form a part as services of any description since
consideration is paid for hiring of “telephone services” by the user.

(8) “Educational Services” i.e. imparting of education by an educational institution for

consideration falls within the ambit of “services” as defined in the Consumer Protection
Act 1986.

In case of Ashitosh Bansal v. Birla Institute of management and Technology and Ors46.
In this case where the complainant filed case for deficiency in service by the Birla
Institute of Management the complaint was that the his PDH extension denied by the
institute but after the facts of the case the judgment came out that since the petitioner
exceeded the 6 years’ period of PHD, so the college denied his extension. The petitioner
wont be awarded any compensation and the appeal dismissed.

(9) “Housing Construction” has been inserted formally in the definition of the term “service”
by the Amendment Act of 1993, and even bodies like the Housing and Development Board are
brought in the purview of the Act. Since the board renders such services to the public for a
consideration. Service related allotment of plot or construction of a flat was considered by the
supreme Court in 2010 and held:47

The court then considered the question whether public authorities are amenable to the
jurisdiction of the Consumer fora’s and answered the same in affirmative. An ancillary issue
considered by the court was whether housing construction or building activity carried on by a

46
Ashitosh Bansal v. Birla Institute of management and Technology and Ors. First Appeal No. 129 of 2019 against
Order dated 11.10.2019 in Complaint No.1247 of 2018 of Delhi State Consumer Disputes Redressal Commission
Decided on 18.04.2019(visited on 7th of June. 10:00am)
47
Chandigarh Housing Board v. Avatar Singh, (2010) 10 SCC 194. (visited on 16th Feb, 2019 at 11:00am).

43
private or statutory body was service within the meaning of Section 2(o) as it stood prior to
inclusion of the expression housing construction in the definition and it was observed.

As pointed earlier the entire purpose of widening the definition is to include in it not only day to
day buying and selling activity undertaken by a common man but even such activities which are
otherwise not commercial in nature yet they partake of a character in which some benefit is
conferred on the Consumer. Construction of a house or flat is for the benefit of person for whom
its constructed. He may do it himself or hire services of a builder or contractor. The latter being
for consideration is service as defined in the Act 198648.

In the case of Abdul Rahiman vs. Airline Travels and Haji Umrah and Ors 49. The judgment came
that there wasn’t violation of section 21(b) of Consumer Protection Act the case was dismissed
as in this case Abdul Rahiman who wanted to travel to Kuwait and apply for visa through the
Airline Travels and Haji Umrah and Ors company, the payable amount was Rs. 23000/- and the
respondent promised that if they will not be able to take visa they will refund the amount back.

As the Airline Travel agency was fail to fulfil the service and take visa of Kuwait for Abdul
Rahiman and didn’t refund the amount, so he filed case against the travel agency and demanded
Rs. 21000/-, but as responded refused to give the refund and apply back for visa for the appellant
the respondent finds out that the appellant Abdul Raheman was banned to go to Kuwait he
refused to refund the amount, afterward certain evidences the judgment came and ordered the
respondent to refund the amount Rs. 21000/- but the respondent said as Rs.8000/- is our service
charges we will just refund amount Rs. 13000/- so the petitioner was only entitled amount Rs.
13000/-.

However, the appellant appealed to the state commission and asked for Rs.3000/- more since he
mentioned that Rs. 8000/- is an excessive amount for service charging so the state commission
accept and entitled the appellant with more amount of Rs. 3000/- and the case was dismissed50.

2.2.11. DEFICIENCY IN SERVICES

48
Prof.(Dr.) V.K. Agarwal. Law of Consumer Protection.3 rd Edition. Bharat Law House.2016. Pg.52.
49
Abdul Rahiman vs. Airline Travels and Haji Omrah and Ors. (2016) Appeal No 829of 2019. (visited on 30 th of
may. 12:00pm)
50
Available at https://indiankanoon.org/doc/6444573/
. (Last visited on 10th Feb, 2019 at 10:10 pm).

44
Section 2(1)(g) of the Act defines “deficiency”. The provision states that “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.51”

The term “deficiency “as defined in the Act is used somewhat similarly to “defect” meaning
thereby any fault, imperfection, shortcoming etc.in nature of or manner of performance of
delivery of a service to Consumer as stipulated either by any law or by any contract between the
buyer and the service provider52.

In the case of Ram Balakrishnan vs. Somitri Das on may 24, 2018, where the Ram Balakrishnan
was an NRI and who was living in USA, the complainant complained that the apartment he
booked with payable amount of 98,13,760/- the delivery of possession of the apartment which
was located in Hyderabad was delayed so the Ram Balakrishnan asked for cancelation of the
contract and refund amount of Rs. 76,48,940/- that he had already paid to the contractor with
interest, as opposite party refused and said the Section 21 of the Consumer Protection Act 1986,
the NCDRC didn’t have pecuniary jurisdiction and they said the complainant is an NRI so it
wont come under section 2(1)(d) of the Act. But as per the evident from section 21,17,11 of the
Act, and in view of said detection NCDRC ordered that, the opposite party shall refund the
amount of complainant with compensation of 10% per annum, and Rs. 10000/- as cost of the
litigation to complainant. Not delivering the possession of apartment on time is deficiency in
service53. Furthermore, in case of Union of India v Nilesh Agarwal 54, a complaint was made
averring that there were access charges in the telephone bill. The Rajasthan State Commission
held that the complainant who is a subscriber is a ‘Consumer’ and the telephone service provided

51
Consumer Protection Act,1986. Sec (2). (g). Act No 68 of 1986.
52
Devendra Mohan Mathur.Consumer Law Digest.3rd Edition. LAWMANN’s. 2017.Pg 535.
53
Ram Balakrishnan vs Somitri Das. 2011.Vol No 236. 24 May 2018.
54
(1991) 1 CPR 23(Raj.CDRC). see also Mahanagar Telephone Nigam ltd. V. Ghevar Chand sesamal Sonigara
(1992) II CPR 427(NCDRC). (visited on 30th may, 2019 at 11:00am)

45
by the Telecom Department is a ‘service’ for which he pays rent and over-billing of telephone is
‘deficiency in service’ within the meaning of the Act55.

2.2.12. CONSUMER PROTECTION COUNCILS UNDER THE CONSUMER

PROTECTION ACT OF 1986

The central government is required by the Act to establish by notification a council to be known
as the Central Consumer Protection Council. Its composition is as follows:

(a) the Minister accountable of the Consumer Affairs within the Central Government, who
shall be its Chairman, and
(b) Such range of different official or non-official members representing such interests as is
also prescribed.

Objects of the Central Council: The object of Central Council is to protect the rights of
consumers:

a- Right to be protected against the marketing of services and goods which are harmful
to Consumer’s life and property and to defend.
b- Right that Consumer must be informed about all characteristics of the product for
example the quality of the product the quantity, potency, purity, standard etc. which
help to protect Consumers from unfair trade practice.
c- Right to be sure where possible accession of variety of goods and services at
competitive prices in competitive market.
d- Right to be heard in forums and make sure that Consumer’s benefits will receive due
consideration at proper forums.
e- Right to seek redressal in opposition to unfair trade practices or exploitation of
Consumers.
f- Right to Consumer education, Consumer complete education about their rights they
have56.

55
Prof.(Dr.) V.K. Agarwal. Law of Consumer Protection.3 rd Edition.Bharat Law House.2016. Pg.53.
56
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition/S Universal Book Traders.2017. Pg. 132-137.

46
The State Consumer Protection Councils: - [ The state Government shall], by the notification,
establish with effect from such date as it may specify in such notification, a Council to be known
as the Consumer Protection Council for (hereinafter referred to as the State Council).

The State Council shall consist of following members, namely: -

(a) The Minister in charge of Consumer affairs within the government who shall be its
Chairman;
(b) Such variety of different official and non-official groups representing such interests as could
also be prescribed by the government.
Object of the State Council: The objects of each State Council shall be promote and protect
among the State, the rights of the consumers set down in clause a and f of section 657.

District Consumer Protection Council:

The District Consumer Protection Council (hereinafter mentioned because the District Council)
shall contains the subsequent members, namely
a-Collector of district.

b-Official and non-official members.

Object of District Consumer Protection Forum: To protect and promote within the districts rights
of the Consumers laid down in clauses (a) to( f) section six58.

2.2.13. CONSUMER DISPUTES REDRESSAL SYSTEM

There are three consumer disputes redressal Agencies. Which are as following: -

 Consumer Dispute Redressal Forum to be known as the “District Forum”,

 Consumer Dispute Redressal Commission to be known as the “State Commission,

57
RAM NARESH CHAUDHARY. Consumer Protection Law (Provisions and Procedure). Second Revised and
Updated Edition. Regal Publications. Pg. 46.
58
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition/S Universal Book Traders. 2017.Pg 141-145.

47
  National Consumer Dispute Redressal Commission to be known as, National
commission, of these agencies in the lowest stage lies the District Forum and in highest
stage lies the National Commission.

Each Consumer Disputes Redressal Agency with its establishment corporation, jurisdiction,
procedure, powers, functions and other related matters are dealt with separately under different
chapters.

Composition of Consumer Redressal Agencies

 The district consumer forum is consisting of one district judge
 Two outstanding member with adequate experience and have enough knowledge in laws
relating to commerce, economy, industrial laws, etc. so they can solve issue related these
matters
 One of these members shall be lady

In addition, The District Forum has jurisdiction to solve those cases where the value of goods
or services the compensation does not exceed Rs. 20lakh. Moreover, the complaint will be
filed in District Forum if the complaint filed by consumer the opposite party resides business
in that district.

The State Consumer Commission

 the State Consumer Commission should be consisting of judge of a High Court

 Two outstanding member with adequate knowledge in solving problems relating
economic, Industry, public administration
 one of these member shall be lady

Furthermore, the State Consumer Commission has jurisdiction to solve those cases where the
value of good or service the compensation doesn’t exceed Rs 20lakh to 1 crore. The state
consumer commission has jurisdiction to entertain appeal against orders of District Forums.

48
National Consumer Commission

 The National Consumer Commission is consisting of a person who has been judge of
Supreme Court
 This judge has been appointed by Central Government and works as President of the
National Commission
 The National Consumer Commission is consisting of four members with adequate
knowledge in laws related to the industry, economy, and commerce and have knowledge
of how to solve issues related to these cases and one of whom shall be women

Moreover, National Consumer Commission has the jurisdiction to solve those cases where the
value of goods or services and compensation claimed start from one crore and more.
Furthermore, the national commission has the jurisdiction of to entertain appeal against orders of
District Forums. Additionally, the State Commission can be called for records by National
Central Commission.

2.2.14. Remedy

The complaint to a redressal agency can be filed by

 Consumer
 Consumer Association
 Consumer who have same interest

Orders that the Redressal Agency might issue to the opposite party:

a) To eliminate the defect.

b) To replace the defective goods with the same new good without defect.
c) To return the price of the goods or charges paid.
d) To give reimbursement to the consumer who filed complaint.
e) To eliminate the deficiencies in service provided to consumer.
f) To stop unfair trade practices.
g) To stop trading hazardous products.
h) To eliminate the hazardous products, supply for sale.

49
 2.2.15. PENALTIES

 if the person or trader against whom a complaint is made and he is fail to shut out to
comply with any order by redressal agencies such person will be punished or penalty, and
the punishment will be imprisonment of not more than 3 years and fine of not more than
10000 rupees or both.

2.2.16 AMENDMENTS TO THE CONSUMER PROTECTION ACT,1986

For making this Act more effective certain amendments have been made

a) Exclusion of the jurisdiction of the Consumer Disputes Redressal Agencies in respect of

certain claims;
b) Provisions for creation of benches of the national commission and state commission.
c) Prescribing the period of limitation for admitting complaints;
d) No adjournment to be ordinarily allowed;
e) Enhancing the pecuniary limits of jurisdiction of the Consumer Disputes redressal
agencies;
f) Provisions for charging of fees in respect of complaints;
g) Provisions for depositing security money against the amount of compensation before
admission of appeal;
h) Engagement of legal practitioner;
i) Prescribing minimum qualifications for members of Consumer Disputes Redressal
Agencies;
j) Extending the provisions of the Act to service providers indulging in unfair or restrictive
trade practices;
k) Bringing sale of spurious goods or services within the meaning of unfair trade practices.
l) Provision for recovery of amount ordered;
m) Provision for issue of interim order;
n) Provision for substitution of legal heir or representative as a party to the complainant or
the opposite party in the event of death of anyone of them.

50
Consumer Protection (Amendment) Act, 2002

Important Changes brought to the Act of 1986, are as following:

 The restrictive trade practices include delay of supply of goods or services and
cartelization which is rising of prices.
 Amendments of 2002, brought more stringent provision regarding unfair trade practices.
 There are provisions regarding misleading advertisement.
 District Forum, State Consumer Commission, National Consumer Commission can deal
and solve cases where the compensation of it can be higher than what its mentioned in
Consumer Protection Act 1986.
 If complainant dies than the substitution of the death person can file complaint on behalf
of the victim.
 Traders who trades hazardous products or services will be liable
 Liability of suppliers of products and services is made clear in Amendment Act 2002.
 Consumer Protection Act 2002 amendment defined manufacturing as assembling parts of
goods made by others or putting one’s own mark or any manufactures by others.
 Consumer Amendment Act 2002 brought more stringent provision regarding to stop
manipulation of prices, to stop delay in supply of goods or delay in delivery of goods and
services. And affect the flow of supply of goods in market with under costs.’
 Under Consumer Protection Amendment 2002 misleading conduct and misleading
services under the unfair trade practices and it would be treated as unfair trade practices
and trade will be liable of his practice.
 Consumer Protection amendments also covers the unfair treatment to the consumer.
 Consumers who were victim of schemes of offering gifts, free of charge deliveries and
all.

51
2.2.17. RELATIONSHIP BETWEEN LAW OF TORTS AND CONSUMER LAW

Liability under the Consumer Protection Act 1986: After the case of Indian Medical
Association v. VP Shanta the court brought the medical profession under services.

This defines relationship between patients and medical professionals as contractual under
Consumer Protection Act,1986, consequently under the Consumer Protection Act there is
provision of the procedure-free where injured Consumer asks for compensation. In the case of
Shilaben Ashwin kumar Rana vs. Bhavan K. Shah and Anr. The supreme court entitled the
appellant with Rs. 17 lakhs rupees. The court mentioned that it was medical negligence which
reduced a child to vegetative state in the case of Shilaben Ashwin kumar Rana vs. Bhavan K.
Shah and Anr, a child of 2.5 years old who was a patient of physical and mental abnormality due
to medical negligence the patient lead to vegetative state, so thus the mother of child Mrs.
Shilaben Ashwin kumar Rana plead for compensation for further nursing care of the child
,because of deficiency in service and doctor negligence59.Moreover, In M.C Katare v. Bombay
Hospital and Medical and Others60, where in surgery for removal of fibular implant and right
ankle arthrodesis resulting into death of patient during course of operation as she developed life
threatening complication of pulmonary Embolism as a relief measure. The complained filed by
husband of deceased alleging negligence on the part of surgeon, anesthesiologist and the
hospital. In this case deceased aged about 30 years having swelling in her right ankle was to be
operated upon. However , no tests prescribed by surgeon to conform or rule out possibility of the
patient being a case of Deep Venous Thrombosis (DVT).whether it could be said that surgeon
committed any negligence is not entertaining suspicion about the deceased suffering from
DVT,it was held by the National Commission in affirmative but no negligence proved on the part
of anesthesiologist61.In case of Charan Kamal Chopra v Dr.R.K Gupta and Anr62, In this case

59
Shilaben Ashwin kumar Rana vs. Bhavan K. Shah and Anr.04/02/2019.II (SC). (visited on 25th may, 2019 at
10:00am)
60
1. 2010 (1) CPR 269 (NC). (visited on 26th May, 2019 at 11:00am)
61
DR.S.C. Tripathy. The Consumer Protection Act. Sixth Edition M/S Universal Book Traders.2017. Pg. 85.
62
Charan Kamal Chopra v Dr.R.K. Gupta and Anr. Revision Petition No.1942 of 2018 against order dated 1.5.2018
in Appeal No. 8 of 2017 of Haryana State Consumer Disputes Redressal Commission decided on 18.4.2019. II
(2019) CPJ 414 (NC). (Last visited on 25th may, 2019 at 09:22 am).

52
where the petitioner alleged the medical negligence by Doctor while operating the patient’s
kidney, the alleged was that since the doctor’s negligence it caused death of patient, after the
analysis of the case the found out that the death of patient was because of uremia leading to
renal failure not Doctor’s negligence, so the revision petition dismissed.

Product Liability under the Law of Torts

With the growth of industries, there has been considerable increase in cases of loss or injury to
consumers as a result of supply of defective products by the manufacturer. The Consumers are
becoming conscious of their rights and there is every hope of increasing this tendency of taking
help of voluntary organization for conducting their claims for damages in the Consumer forums.
The liability in respect of defective goods in India is based on negligence of the manufacturer of
goods.

The law of torts signifies violation of great variety of rights and duties and so it’s very difficult to
give a concise and complete definition of it. It’s based on common law of England which is
unwritten and un codified law.it is very growing law and the courts are expanding its horizon
continuously by recognizing new torts. Torts is a civil wrong but this torts is different from
breach and contract or breach of trust or other equitable obligations, this torts is redress able by
an action for unliquidated damages. The law of Torts is concerned with those situations where
the activities of persons cause or threaten to the interests of others. the law of Torts aims at
adjusting losses which results from ever increasing activities of persons living in common
society by providing compensation for harm suffered by persons as a result of conduct of others.
Law of Torts have direct link in Consumer’s right protection when there was no Consumer
Protection Act 1986 the rights of Consumer were protected by the law of Torts. Moreover,
Consumer is a person and the aim of the Law of Torts is protect persons from those activities
which are threatened to the interest of persons. Moreover, there are certain conditions which
must exist before a person is held liable in torts after examining various definitions the elements
which have come before us are in fact the conditions on which Tortious liability is determined.
The conditions are

1-Wrongfull act.

2-Legal damage.

53
3-Legal remedy.

1- Wrongful act To determine liability in torts it must be proved that the act done by the
defendant was a wrongful act, a wrongful act is an act which is done without any lawful
justification and it becomes wrongful act only when there is violation of legal rights of
another for example to violate right of safety of a Consumer, Tortious liability thus arises
by both an act or an admission to do an act for example by doing an act which is
prohibited or by violating another’s legal right or violating one’s own duties, thus where
legal duty by the wrongdoer in both the situations his act constitutes a Torts
2- Legal damage: damage is the direct result of the defendant’s wrongful act but there is a
distinction between damage and damages ‘damage ‘means harm done by a person by the
wrongful act of the defendant act, while compensation which is given to the plaintiff is
known as damages. The main aim of law of Torts is to protect from harm being caused to
the property, body and prestige of a person. Thus an action for damages lies for
infringement of individual’s legal tights.

Legal damage can be illustrated by two maxims

A. DAmnnum Sine Injuria it means harm which is caused without violation of legal
rights for instance the loss of property doesn’t cause any’ damage’
b. Injuria sine damnum means violation of legal right without any damage to the plaintiff.

3-Legal Remedy a Torts is a civil wrong for which the remedy is an action for unliquidated
damages, thus the main remedy for a Torts is an action for damages.

Most of the time the negligence causes to harm so according to the law of Torts negligence has
two meaning it’s a mode of committing certain Torts for example trespass, nuisance of
defamation.in this sense negligence involves certain mental elements on the part of the defendant
towards the consequences of his act, he intends those consequences.

54
Negligence also means as an independent Torts.in this sense it means a conduct which causes
damage without anything in mind, in modern times, negligence is considered in the second sense
that is, as an independent Torts63.

Liability under the Law of Torts

Law of Torts protects the interest of patients it applies despite the medical services provide free
services, in a situation where the services offered by hospital doesn’t come under the provision
of Consumer Protection Act,1986, So the plaintiff can apply for negligence under the law of
Torts.

And successfully claims compensation the examples of those negligence like transfusion of
blood of incorrect groups, leave a mop in the patient’s abdomen after operation.

Product Liability under the Law of Torts

With the growth of industries, there has been considerable increase in cases of loss or injury to
Consumers as a result of supply of defective products by the manufacturer. The Consumer as a
result of supply of defective products by the manufacturer. The Consumers are becoming
conscious of their rights and there is every hope of increasing this tendency of taking help of
voluntary organization for conducting their claims for damages in the Consumer forums. The
liability in respect of defective goods in India is based on negligence of the manufacturer of
goods64.

63
Aakarsh. Shah. Medical Negligence. Academike. Available At https://www.Lawctopus.com/academike/medical-
negligence/. (Last visited on 25th April, 2019 at 10:12 am)
64
Anita Yadav. Medical Negligence and Consumer rights an analysis. Research Gate. Available At:
https://www.researchgate.net/publication/271519519_Medical_Negligence_and_Consumer_Rights_an_ANALYSIS
. (Last visited on 15th April, 2019 at 9:34 am).

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Definition of Negligence

Negligence is the omission to do something which a reasonable man guided upon those
considerations which ordinarily regulate the conduct of human affairs, would do, or doing
something which a prudent and reasonable man would not do. This means careless conduct.
Moreover, to prove that an action is negligence the plaintiff has to prove three essentials to prove
the liability of defendant

 Legal duty to take care

 Breach of the mentioned duty
 Damage to the plaintiff as a result of breach of duty.

A case of wrongful intent is that where the doer foresees the consequences of his action, desires
them and therefore acts in such a way that they may happen. on the other hand, one is guilty of
negligence where as a negligent person is one who doesn’t sufficiently desire to avoid
consequences.

If we take in consideration the medical negligence we can see the relationship of Consumer
protections law and law of Torts.

After understanding the above mentioned concepts, its important to view the Consumer
Protection Bill,2018. The Consumer Protection Bill,2018 was passed by parliament by 20th of
Dec,2018, to fulfill the loopholes in Consumer Protection Act 1986, but the question is whether
the Consumer Protection Bill,2018 will fulfill the lacunas of the 1986 Act or not.

2.3 THE CONSUMER PROTECTION BILL,2018

The object of Act 1986 is to protect Consumer’s interest and to give a speedy redress to
Consumers, but this Act don’t provide provision regarding Consumer frauds. Moreover, there are
lots of amendments to the Act. Accordingly, there was a need of better mechanism to protect
Consumer’s interests and rights in this period of time. The Consumer Bill of 2018 brought some
new provisions with changes in consumer market places. Furthermore, this Bill deals with false
and misleading advertisements as well. In addition, there is provision regarding the online
shopping plus consumer’s rights protection in e-commerce which is a very important issue in this
era, since thousands of consumers do shopping through online websites, consequently this Bill

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protects their rights in online world. The Bill of 2018, establishes a Central Consumer Protection
Authority, which will protect rights of Consumers, it will work as an investigator and will have a
director general as well, this authority will deal with matters which are harmful to Consumers’
interests; like unfair trade practices, misleading advertisement and liability of celebrities.
Consequently, this Bill has provisions for product liability that manufacturer, product seller,
product supplier can be take liable of their product that they manufacture, supply or sell. In the
Consumer Protection Act,1986 there is no provision regarding the “unfair contract” but under the
Bill of 2018, there is provision for “unfair contract”. Additionally, under the Consumer
Protection Act of 1986, the definition of the “deficiency” is not broad but beneath the Bill of
2018, they have expanded the definition of the “deficiency” as per Clause 2(11) it include
negligence exercises or omission or commission and deliberate withholding of relevant
information which causes loss or injury to the Consumer. On the other hand, the Bill of 2018
contains Alternative Disputes Resolution, where disputes can be send to the mediation cell so if
the parties could settle their disputes in mediation cell subsequently there will be no need for
them to go the forums, and the bill of 2018, raised the pecuniary jurisdiction so that would
protect more Consumer’s rights65.

2.3.1 OBJECT OF CONSUMER PROTECTION NEW BILL

The rise in international business and the speedy development of electronic trade brought new
systems to consumers, in respect to goods and services but unfortunately these changes brought
unfair trade practices as well, so for strengthening the rights of consumer, a Consumer Protection
Bill passed by the parliament of India to protect more interests of consumers. This Consumer
Protection Bill is prepared to replace Consumer Protection Act 1986.

2.3.2 THE MAIN POINTS AND KEY HIGHLIGHTS OF THE BILL 2018

There are some important points under the Bill as following:

 The eligibility of the complaint shall be decided within 21 days.

 Under the Bill it’s preferred to parties to solve their issues through mediation cell.
65
Chiral Jain. How the Consumer Protection Bill 2018 Overcome These Loopholes? I
pleader.https://blog.ipleaders.in/loopholes-Consumer-protection-Act-1986-Consumer-protection-bill-2018-
overcome-loopholes. (Last visited on 15th May, 2019 at 7:10 am).

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  In the Consumer Protection Bill of 2018, certain authorities have given to the Central
Consumer Protection Authority to impose penalties, reimburse purchase price paid,
power to recall good, file class action suit.
 Manufacturer, product supplier, product sellers and service provider are liable for any
defected good or deficiency in services.
 In the Consumer Protection Bill, 2018, they have given clear definition for unfair trade
practices especially in contract loans and restrictive trade practices.
 In the Consumer Protection Bill,2018, if anybody shares the personal information of
consumer he would be treated as unfair trade practices.
 If a person won’t follow the compliance of orders of forum or commission they will be
penalized Rs.25, 000/ to Rs.1lakh, or they might go to jail up to 3years or both.
 Under the Bill, there is provision for false and misleading advertisement, if a
manufacturer does false and misleading advertisement they will penalize up to Rs.10lakh.
 Under Consumer Protection Bill, 2018 there is punishment for endorsers which would be
banning them for advertising for 1-3 years.
 Under the Bill of 2018, there is certain provision for protection of consumers in online
world, according to the bill consumer can make legal action against seller of defected
goods in electronic commerce as well. A consumer is able to file electronically and this
new law led to fast disposal of grievances. According to the Bill of 2018, the plaintiff can
file case online from his residence place which will be e-filling and for hearing of the
case there will be video conferencing.
 The healthcare service has been removed from the services under Consumer Protection Bill 2018.
It has been removed from the list of services.

2.3.3 INCREASE IN FINANCIAL JURISDICTION OF FORUM AND COMMISSION

 District Commission: Value of goods and services doesn’t exceed Rs.1 crore.
 State Commission: Value of goods and services exceed Rs.1 crore but don’t exceed
RS.10 crores.
 National Commission: Value of goods and services exceed 10 crores.

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2.3.4 ESTABLISHMENT OF A REGULAR CENTRAL CONSUMER PROTECTION
AUTHORITY

The bill provides Central Consumer Protection Authority (CCPA), which would be executive
agency, this agency will solve matters regarding violation of rights of consumers, such as unfair
trading and will take liable the manufacturers and service providers for defective good or
deficiency in services. This agency will protect and promote rights of consumers. Moreover,
there is option of electronic mode in CCPA, if a complainant wants to file a complaint they can
write complaint physically or they can do it in electronic mode as will and file complaint online.

2.3.5 ORDERS THAT CENTRAL CONSUMER PROTECTION AUTHORITY CAN

PASS:

 Return of goods which are hazardous or unsafe.

 Withdrawal of services which are dangerous.
 Stopping the practices which is unfair trade practices.
 CCPA can penalize for false and misleading advertisement.

However, there are some exceptions Central Consumer Protection Authority (CCPA) doesn’t
penalize such as

 If the endorser has done due diligence to verify the veracity of the claims made in the
advertisement that he/she endorsed
 If person would be able to prove that his aim was ordinary course of business.

2.3.6 PENALTIES

Under the Bill of 2018, there are penalties regarding manufacturing, selling, storing, importing,
spurious products.

 If no injury is caused to the consumer, the CCPA penalizes and punishes up to one lakh
penalty and up to six-month imprisonment.
 If consumer gets minor injury, the CCPA penalizes up to Rs.3 lakhs penalty and up to
one year of imprisonment.

59
  If consumer gets grievous injury, the CCPA penalizes and give punishment of Rs.5 lakhs
and imprisonment up to 7 years.
 If consumer dies due to defective good or deficiency in services, the CCPA gives penalty
of Rs.10 lakhs, and imprisonment up to 7 years and it might extend to lifetime
imprisonment.

In the Bill some factors are mentioned that would decrease or increase the amount of
penalty:

 The population affected by such advertisement, it will examine that how much this
advertisement was effective and how many people got defected.
 The area affected by the advertisement.
 The duration of the advertisement.
 The vulnerability of the class of person.
 The gross revenue from the sales effected by virtue of such offence.

According to the bill of 2018, if someone wants to appeal from order of CCPA they are allowed
to do it within 30 days from the date of order.

2.3.7 PRODUCT LIABILITY UNDER CONSUMER PROTECTION BILL 2018

The manufacturer would have held liable, if the product is Defective in manufacturing, Defect in
design of the product, Pervert from manufacturing specifications., If there would be insufficient
instruction of how to use the product. The service provider liability under Consumer Protection
Bill,2018, is deficiency in services providing, like inadequate, inequality in service providing,
Moreover, Negligence and being careless during service providing, Inadequate information and
instruction to use of services or inadequate warnings to prevent any harm, Omission of such
information which led to cause harm or injury. Under the new Bill of 2018, if a consumer have
complaint against a product or against a service provider the product manufacturer or service
provider will be liable if the product has any defect or the design of the product is not the same
as said before, alteration from manufacturing specification, product has insufficient information
and instruction which causes Consumer harm, as well as this the service provider is also liable if
he provides a faulty service, inadequate service, the quality of service not good, not able to

60
provide the service on time. Moreover, he will be liable if there is an action of negligence which
caused harm and inadequate instruction of how to use the service. The same is with the product
seller, the product seller will be liable in case of substantial control over the designing
packaging, etc. of product, or if the product seller changed and alter the product or made any
other separate warranty which caused harm to the Consumer.

in case of M/S Nestle India Limited vs. The Food Safety and Standards 66 in May 2015, India
witnessed a nationwide food scare, since Maggi says no added MSG on the packet which is
monosodium glutamate.

 On March 30,2014 a Maggi sample was sent for testing and they find out MSG and
lead as well, recall of Maggi products in north Indian state of Uttar Pradesh on June
2015, and some retailers withdraw the stock.
 On 1st of June, 2015 Nestle held a press conference after testing 125 million packets
and stated that the noodles are safe to eat so after four days later on 5th of June FSSAI
had ordered NIL to withdraw all nine variants of Maggi instant noodles from the
market terming ahem unsafe and hazardous for human consumption.
 Nestle India Limited (Nil) appointed Suresh Narayanan on October 2015, to solve the
crises, nestle claimed that it had cleared three lab test mandated by a court in the
western state and would prelaunch Maggi by Nov 2015. In this case, the manufacturer
was liable for the defect in good and false labelling by writing no MSG on the
packet67.

The product seller liability under consumer protection bill 2018

The liability of product seller is as below:

66
M/S Nestle India Limited vs. The Food Safety and Standards. May,2015
https://indiankanoon.org/docfragment/66718388/?formInput=maggi%20noodles
67
Nidhisha Garg.Analyzing the Consumer Protection Bill 2018.Ipleaders.https://blog.ipleaders.in/Consumer-
protection-bill-2018/. (Last visited on 22th May, 2019 at 4:12 pm).

61
  The product seller will be liable, if the seller exercised significant management and
control on testing, manufacturing or labeling that product which caused harm.
 If the seller brought new changes to the product, or altered the product and the
modification by the product seller caused harm.
 If the seller made a separate warranty, which failed to conform to the express
warranty which led to harm.
 If the product seller sold the product that its manufacturer is unknown and the product
caused injury of defected consumer.
 If the seller isn’t able to maintain product, and not able to provide the instructions of
the products which led to harm.

2.3.8 UNFAIR CONTRACT UNDER CONSUMER PROTECTION BILL 2018:

There is provision for unfair contract term under The Consumer Protection Bill,2018, it defined
unfair contracts as “Contract between a manufacturer or trader or service provider on one hand
and a consumer on the other having such term which cause to harm consumer’s right”. These
terms are as below:

 Asking for evidently, excessive security deposits.

 Inflict and impose the unrelated penalty to the consumer for violation of rules of the
contract.
 Refusing of accepting early compensation of debts on payment of an applicable
penalty.
 Force the opposite party to terminate the contract without any reason
 Permitting one party to delegate the contract to harm the consumer.
 Imposing unreasonable charges on consumer which might exploit rights of consumer.

Moreover, under the Consumer Protection Bill,2018 you can file complaint for unfair contracts
with the state commission or national commission.

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2.3.9 UNFAIR TRADE PRACTICES UNDER CONSUMER BILL 2018

Under the Bill of 2018, the unfair trade practices terms expanded and there are three more types
of unfair trade practices such as:

a) For not issuing cash memos to consumers, or bill to the consumer of products or
services they want to take.
b) Refusing after selling goods to take back or refusing after rendering services.
c) Revealing personal information about consumer information, which was given in
confidence by the consumer.

2.3.10 MEDIATION UNDER CONSUMER PROTECTION BILL 2018

Consumer Protection Bill provides mediation provision for disputes, if the parties agreed to go
for mediation instead of court they are allowed to go because mediation is Alternative Dispute
Redressed mechanism. Under the Bill of 2018, it states that if they didn’t accept the mediators
order than they can go to the court.

2.3.11 ECOMMERCE UNDER THE CONSUMER PROTECTION BILL 2018

Under the bill of 2018 consumer will be protected from online world unfair trade practices like
telemarketing, unfair trading, direct selling, multilevel marketing.so basically e-commerce
sometimes causes unfair trading so the bill made provisions to protect the interest of the
consumer. The bill gives power to the central government to take measures against unfair trading
in e-commerce.

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2.3.12 COMPARISON TABLE OF CONSUMER PROTECTION ACT,1986 WITH
CONSUMER PROTECTION BILL,2018

Provision 1986 Act 2018 Bill

Scope of law • All goods and services for • All goods and services,
consideration. including telecom and
• housing construction,
Free and personal services are and all modes of
excluded. transactions (online,
teleshopping, etc.) for
consideration.
•
Free and personal services are
excluded.

Unfair trade practices* Includes six types of such • Adds three types of
practices, like false practices to the list,
representation, misleading namely: (i) failure to
issue a bill or receipt;
advertisements.
(ii) refusal to accept a
good returned within
30 days; and (iii)
disclosure of personal
information given in
confidence, unless
required by law or in
public interest.
•
Contests/ lotteries may be
notified as not falling under

64
 the ambit of unfair trade
practices.

Product liability No provision. • Claim for product liability

can be made against
manufacturer, service
provider, and seller.
•
Compensation can be
obtained by proving one of
the several specified
conditions in the Bill.

Unfair contracts No provision • Defined as contracts that

cause significant
change in consumer
rights.
•
Lists six contract terms which
may be held as unfair.

Central Protection
 Councils • CPCs promote and protect • Makes CPCs advisory
the rights of bodies for promotion
(CPCs) consumers. and protection of
• consumer rights.
CPCs established at the •
district, state, and national Establishes CPCs at the
level. district, state and national
level.

Regulator • Establishes the Central

Consumer Protection
No provision. Authority (CCPA) to
promote, protect, and
enforce the rights of
consumers as a class.
•
CCPA may: (i) issue safety
notices; (ii) pass orders to
recall goods, prevent unfair
practices, and reimburse

65
 purchase price paid; and (iii)
impose penalties for false and
misleading advertisements.

Pecuniary jurisdiction
 of • District: Up to Rs 20 lakh. • District: Up to Rs one

• crore.
Commissions • State: Between Rs 20 lakh •
and up to Rs one • State: Between Rs one
crore. crore and up to Rs 10
• crore.
National: Above Rs one •
crore. National: Above Rs 10 crore.

Composition • District: Headed by current • District: Headed by a

or former District President and at least
of
 Commissions
Judge and two two members.
members. •
• • State: Headed by a
• State: Headed by a current President and at least
or former High Court four members.
Judge and at least two •
members. National: Headed by a
• President and at least four
National: Headed by a members.
current or former Supreme
Court Judge and at least four
members.

Appointment Selection Committee No provision for Selection

(comprising a judicial Committee. Central
member and other officials) government will appoint
will recommend members on through notification.
the Commissions.

Alternate dispute
 redressal No provision. Mediation cells will be

attached to the District, State,
mechanism
and National Commissions.

66
Penalties If a person does not comply If a person does not comply
with orders of the with orders of the
Commissions, he may face Commissions, he may face
imprisonment between one imprisonment up to three
month and three years or fine years, or a fine not less than
between Rs 2,000 to Rs Rs 25,000 extendable to Rs
10,000, or both. one lakh, or both.

E-commerce No provision. • Defines direct selling, e-

commerce and
electronic service
provider.
•
• The central government
may prescribe rules
for preventing unfair
trade practices in e-
commerce and direct
selling.

This Bill focuses on the concept of e-commerce, so for the clear understanding of the Bill
concept of e-commerce should be clear. Hence, this chapter will further discloses the
concept of ecommerce.

2.4 CONSUMER PROTECTION IN ELECTRONIC-COMMERCE

while law could never have been divorced from other disciplines, the technology-law interface
has surely freed jurisprudence from the clutches of solitude. Technology advancements have
necessitated the Indian Legal system adapting to change and embrace technical phenomenon so
that order and harmony is preserved. It is not easy to change conventional shopping paradigm
which involves going to shopping malls and purchase it. However, online shopping is in trend
and national judicial bodies must device appropriate regulatory standards for it. There has been a
plethora of legal mechanisms to promote consumer protection in the traditional marketplace.
These legal mechanisms are physical marketing oriented and not up to the requirements of the
electronic marketplace. The consumers in online world can only be protected when Indian legal

67
system would be able to respond to challenges for the consumers, therefore, there is a need to
develop new strategies that can promote consumer confidence in this new online environment68.

E-Consumer: is defined as a person who buys or purchases or consumes goods or services by

using digital medium, Internet or any other electronic platform.

The nature of e-commerce is conductive to creating a context in which disputes are more likely
than in face to face transaction. These disputes must be resolved in an economically efficient
manner; employing processes that the participant to the dispute accepts as fair.in the “real world”
there are excess of Consumer Protection regulations and judicial processes that protect the
Consumers from the full market forces of sellers. In addition, the market forces are restrained in
terms of standard form contracts unreasonably shift liability to Consumers or impose obligation
on Consumers.in the real world through Consumer Protection legislation and court, government
are willing to reform Consumer contracts to conform to reasonable Consumer expectations,
However, in the online contracting several issues are still unresolved69. Moreover, no mandatory
Protection has been provided to Consumers against offences like phishing, pharming, cyber
money laundering, ATM frauds and other financial frauds wherein innocent Consumers are
cheated and defrauded. Exploitation of the rights of e-commerce in online shopping has grown
from a cesspool into a huge iceberg like: fake e-advertisement, defective delivery of goods extra
charges, delay delivery of products and many more sophisticated frauds.one of the characteristics
of online frauds is that these are transnational and faceless unlike the conventional crimes. Often
investigation end up in vacuum due to the very nature of these frauds and for the lack of effective
legislative framework in combating the same.in the relatively brief “history” of e-commerce,
courts have responded to the needs of e-commerce in a manner that kept pace with the need for
e-commerce to be governed by settled principles of law70.In case of Spice jet Ltd. vs Ranju

68
Aditi Lahiri. Consumer Protection in E-commerce in India. Amie Legal. Available at:
https://amielegal.com/consumer-protection-in-e-commerce-in-india/. (Visited on 21 May,2019 at
1:27pm).
69
Gagandeep Kaur, Jurisprudence of Ecommerce and Consumer Protection in India, First Edition, Satyam Law
International, 2015, Pg:198.
70
Sanjay Kumar Mangla, Jill Atieno Juma, Ujjwal Kumar, and Jeetali Agnani. E-Commerce in the Context of
Trade, Competition and Consumer Protection in India. Cuts International.10 Aug,2017. https://www.cuts-
citee.org/pdf/Discussion_Paper_ECommerce_in_the_Context_of_Trade_Consumer_Protection_and_Competition_in
_India.pdf. Pg. 9-11. (Visited on 21 May,2019 at 09:21pm).

68
Aery71, on 7 February, 2017 the Revision Petition was filed against the judgment of UT State
CDRC where the fact of this case was that the Ranju Aery booked tickets from spice jet their
connecting flight online but while returning back the connecting flight was canceled but the
airline didn’t do any arrangements for them and forcibly asked to book ticket from another
airline so she book 5 tickets Rs. 80.885/- for five people. Moreover, as they reached late due to
flight cancelation they missed the connecting bus to Chhattisgarh as well, the complaint filed by
the complainant alleged the deficiency of service by the Spice jet and asked for compensation
and refund the judgment came where the Opposite Party should award the complainant Rs.
80.885/- of tickets Moreover, 20.000/- for refund with the 12% annum Moreover, 1.5 lakh for
mental harassment of complainant and 22.000 for litigation charges. But in 2017 the Opposite
party filed revision petition however, after further analysis the court dismissed the revision
petition.

2.4.1 CONSUMER’S RIGHTS PROTECTION IN ONLINE WORLD

Consumer is the focal point of the nation’s economy cycle as other activities center around it . In
a competitive economy it is Consumer who decides the success or failure of a business either by
buying or not buying the product. Consumer orientation is an essential ingredient of marketing.
The modern concept of marketing emphasizes that the marketing policies should be based on the
needs of Consumers and aim at achieving the organizational goals through Consumer satisfaction
and wellbeing. The Consumer orientated efforts of an organization will lead to planning for cost
reduction. adoption of a new technologies, new ideas and strategies which are in the interest of
Consumers and the organization. While Consumerism is not a new phenomenon, it has become
widespread over the course of the 20th century and particularly in recent decades. The influence
of neoliberal capitalism has made citizens of capitalist countries extraordinarily wealthy
compared to those living under other economy system. The wildfire spread of the Consumer life-
style around the world marks the most rapid and fundamental change in day-to-day existence the

71
Spice jet Ltd. vs Ranju Aery. REVISION PETITION NO. 1396 OF 2016(Against the Order dated 29/12/2015 in
Appeal No. 347/2015.Available at
http://document.manupatra.com/Tribunals%20and%20Commissions/consumer/2001-
2004/consumer2017/CF201716021715513826.htm. (Visited on 21 June,2019 at 09:21pm).

69
human species has ever experienced. There is rise of materialism specifically from the
technological aspect. At this time compact disc players, digital media, personal computers, and
cellular phones, all has integrated into everyday lifestyle of Indians. A shift away from values of
community, spirituality and integrity and toward competition, materialism and disconnection has
occurred.

Therefore, Consumer Protection in cyberspace is gaining attention all around the world.it is time
to acknowledge rights of online Consumers in legal enactment. Recognition of rights of online
Consumer in legal enactments recognition of rights of online Consumers can be considered as a
step towards fulfillment of objectives of second and fourth generation of human rights72.

In case of G. Jyotheeswar v Flipkart Internet Pvt.Ltd 73, the complainant filed case for deficiency
of service by the Flipkart Online Shopping Company, where the complainant ordered a smart
phone from Flipkart website, the Flipkart courier partner delivered it to the wrong address as the
consumer informed the Flipkart, the Flipkart blamed the consumer and said due to incorrect
address the smart phone will not be delivered so the consumer filed the cased of deficiency in
service, after the judgment came the deficiency of service was proved so the forum awarded the
complainant compensation and provide the MI 41 gray color smart phone.

2.4.2 BENEFITS OF E-COMMERCE TO CONSUMERS

The benefits of e-commerce to consumers are as below:

1-Electronic commerce is highly economical, unlike the brick and mortar environment, in e-
commerce there is no need of physical store space, insurance or infrastructure investment. All
that is required is an idea, a unique product and a well-designed web store front to reach cyber
customers.

2-Electronic commerce enables customers to shop or do other transactions 24 hours a day, all
year around, from almost every location.

72
Sanjay Kumar Mangla, Jill Atieno Juma, Ujjwal Kumar, and Jeetali Agnani. E-Commerce in the Context of
Trade, Competition and Consumer Protection in India. Cuts International.10 Aug,2017.
https://www.cutscitee.org/pdf/Discussion_Paper_ECommerce_in_the_Context_of_Trade_Consumer_Protection_an
d_Competition_in_India.pdf.Pg. 9-11
73
Available at https://www.casemine.com/search/in?q=e-commerce+flipkart. (Visited on 21 June,2019 at 09:21pm).

70
3-Electronic commerce provides customers with more choices; they can select variety of
products from many vendors at reasonable prices.

4-Electronic commerce frequently provides customers with less expensive products and services
by allowing them to shop from far places with quick comparison.

5-E-Commerce emphasizes better and quicker customer services. It digitalized products and
allows quick delivery.

6-It has become possible for customers to interact with other customers in electronic
communities and exchange ideas as well as compare experiences74.

2.4.3 GROWTH OF ECOMMERCE WITHOUT EFFECTIVE E-COMMERCIAL

LEGAL MECHANISM (E JUSTICE)

The most significant aspect of the internet is the economic phenomenon of e-commerce, that is,
the purchase and sale of goods and services using the internet. The ability of buyers to instantly
shop and compare among legions of competing throughout the world, coupled with the ability of
vendors to quickly and inexpensively market to millions of potential Consumers, makes e –
commerce extreme the ability of vendors to quickly and inexpensively market to millions of
potential Consumers, makes e –commerce extremely efficient and desirable. Despite advantages
that e commerce offers increased internet sales activity also brings with it an increase in internet
legal disputes75.

E-commerce without e-justice is irrelevant. Those e-commerce disputes must be resolved

efficiently, fairly and securely so that online Consumers can place full confidence in e-commerce
markets. The internet must be viewed as a trustworthy online global marketplace fully operating
under the rule of law. For this to occur, the principles of fairness, accessibility and equity

74
Ajeet Kurana. Advantages and Disadvantage of e-commerce. The Balance Small Business.23 Apr,2019.
https://www.thebalancesmb.com/ecommerce-pros-and-cons-1141609. (Visited on 22 may,2019 at 08:00pm).
75
Available at https://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf. (Visited on
27 May,2019 at 08:21pm).

71
available in most physical courts must also be within reach of disputes arising out of online
transactions. If E-commerce disputes cannot be resolved efficiently, then many of the economic
and convenience advantages of e-commerce will be threatened due to legal enforcement risks
and resulting business uncertainties. It is need of hour to adapt to pre-internet legal systems to
adjudicate post –internet online legal disputes.

The fact is that traditional litigation, in a physical court chosen by either the online seller or the
online buyer, is rarely the optimum forum for resolving an online dispute, especially if the item
purchased was relatively cheap. The average online transaction amount ranges from hundred to
one lakh rupees because most of the products include small products to laptops and electronics.
A traditional lawsuit is often not an economically worthwhile endeavor for an aggrieved party;
given the significant time and cost involved in such a lawsuit. Traditional litigation in a physical
court to resolve an online dispute typically ends up subjecting disputants to comparatively
expensive, inefficient and time –consuming lawsuits, often with unpredictable or unsatisfactory
results. Without a truly accessible and cost-effective legal system to resolve disputes arising out
of online transactions, e-commerce participants’ end up having to buy and sell at their own peril,
relying principally on the good –faith performance of their internet transaction counterparts or on
the vagaries of antiquated pre-internet legal system. Consequently, many internet Consumers risk
suffering a violation of their rights-such as paying for an item that does not get delivered or
defective or expired or unsatisfactory, substandard quality-because seeking justice in a physical
court for an online transaction gone awry becomes a very difficult and often an impractical
undertaking76.

Moreover, some Consumers choose not to enter e-commerce markets at all and instead choose to
conduct all of their transactions exclusively in traditional physical or non-internet markets.

After years of indifference the cyber security policy of India has been finally released by the
government of Indian. The central government has declared the national cyber security policy,
2013 on 2nd July, 2013.

76
Gagandeep Kaur, Jurisprudence of Ecommerce and Consumer Protection in India, First Edition, Satyam Law
International, 2016, Pg:199

72
This policy includes the national Critical information infrastructure Protection center (NCIPC),
National Cyber Coordination Centre (NCCC), National intelligence Grid etc. Some of the areas
covered by the policy include:

(1) Cyber security skills development

(2) Cyber crises Crisis management plan

(3) Critical Infrastructure Protection

(4) Preferential treatment on Domestic Hardware software,

(5) Security Issues of its equipment,

(6) Engaging in public private partnerships to strengthen Cyber securities in India,

(7) Cyber Warfare,

(8) Cyber Terrorism,

(9) Cyber Espionage,

(10) Protecting information and building capabilities to prevent cyber-attacks.

It has also rightly touched the aspects of global co-operation and coordination in the cyber
security field. The objectives of the NCSP, 2013 include creation of a ‘Cyber Ecosystem’ in the
country, encouraging open standards, strengthening of regulatory framework, securing e-
governance services, Critical infrastructure Protection,

Promotion of research and development in cyber security, spreading cyber security awareness,
providing fiscal benefits to businesses for adoption of standard security practices and processes,
developing effective public private partnerships and collaborative engagements through technical
and operational cooperation. The policy calls for developing a dynamic legal framework and
periodically reviewing it to address the cyber security challenges arising out of technological
developments in cyber space. The policy plans to operate as 24x7 national level computer
emergency response team to function as a nodal agency for coordination of all efforts for cyber
security emergency response and crisis management. It has incorporated many good policy

73
decisions that can go a long way in improving the cyber security of India. However, till it is
made operational and is actually implemented, it would remain mere paper work. Thus, the real
challenge is to make the national cyber security policy, 2013 operational at the ground level. In
India there very few cyber security institutions. That have the capability to effectuate the
ambitious cyber security policy of India. Similarly, there are many more techno-legal and social
issues that a good and holistic cyber security policy must incorporate. This NCSP policy, 2013 is
focused on several major issues expect Consumer concern in cyberspace.77

2.4.4 ABSENCE OF WELL-INFORMED AND STRUCTURED ONLINE DISPUTE

RESOLUTION MECHANISM FOR VICTIMIZED E-CONSUMERS

The continued high growth rate of e-commerce is likely to be compromised, if online purchasers
are not protected within a legal construct that generates confidence in the internet. Therefore, the
rule of law must keep pace with the growth of the internet so that the online Consumers can have
full confidence in the legitimacy of e-commerce, and the realistic ability to pursue a practical and
effective legal resource whenever necessary. It is argued that best way to resolve e-commerce
disputes involves using the very convenient and efficient mode in which these transactions are
made in the first place that is the internet. Online Dispute Resolution (ODR) can solve many
intractable cost and inefficiency problems associated with trying to adjudicate e-commerce
disputes using traditional litigation in physical courtrooms, ODR can offer online buyers and
sellers the necessary confidence, convenience, fairness and security to support the growth and
stability of e-commerce.

The methods of online Dispute Resolution and include cyber-negotiation, cyber-mediation and
cyber arbitration. In India websites such as Cyber settle (htpp:/www.cybersettle.com), settlement
Online (htpp:/settlementonline.com) Mediate.com (htpp:/www.mediate.com) online
arbitrators.com (htpp:/onlinearbitrators.com), Channel CNBC AWAAZPEHREDAR
(pehredar@network18online.com) offer services that are entirely online and focus on negotiation
as well as mediating monetary settlements and online Consumer disputes. Indian council of
Arbitration (htpp:/www.icaindia.co.in) has panel of well-known arbitrators, mediators and
conciliators. The bitter fact is that these modes are not so popular as well as people are less

77
Gagandeep Kaur, Jurisprudence of Ecommerce and Consumer Protection in India, First Edition, Satyam Law
International, 2016, Pg:200

74
aware about these modes of online dispute resolution. The Internet must be perceived as a safe
and legitimate global marketplace, where buyers and sellers can have meaningful access to
competent and convenient legal enforcement mechanisms that adequately protect their legal
rights and minimize their economic risks. Because traditional litigation in physical courtrooms is
often expensive in these types of cases, aggrieved parties often choose to forego their legal
remedies because a formal lawsuit is just not worth it. Therefore, a comprehensive ODR system
should be embraced because it is uniquely adapted to fairly and efficiently resolve e-Commerce
disputes in an accessible, cost-effective online forum that overcomes the physical and cost
barriers associated with traditional litigation78.

In India several Consumer groups have taken this problem seriously and come up with
organization to make shopping on the internet a safe experience.to raise one voice against online
frauds they have formed online portals to listen to the complaints of Consumer. Anyone can log
in and submit complaint with complete facts and documentation. Some of the leading National
Level, non-governmental and non-profit Organization working in India are:

http:/www.nationalConsumerhelpline.in,http:/www.Consumerdaddy.com,http:/www.indianCons
umers.org,http:/www.core.nic.in,http:/www.legalhelpindia.com, http:/www.cag.org.

This Online dispute resolution mechanism must be taken seriously and strengthened for the
resolution of various internet frauds. By providing the appropriate incentives, Government must
encourage the private sector to create ODR policies41 and procedure that are fair, comport with
due process and build e-Consumer confidence.

The primary reason for failure of many e-commerce websites offering various commercial
services has been lack of faith among online Consumers. One of the fears of the online
Consumer is whether the online institution is trustworthy. After all, if online Consumer is
agreeing to arbitrate through an ODR institution, the very thought that the online arbitrator’s
decision would be binding on the person and can enforced as a decree of the court, is in itself

78
Available at:
http://ijal.in/sites/default/files/IJAL_Volume_7_Issue_1_Kashish_Sinha_&_Manisha_Gupta.pdf. (Visited
on 20may,2019 at 01:00am).

75
very scary. The parties would never physically see the arbitrator and there is always an
apprehension of partiality and bias.it is, therefore, must that the ODR institution is able to
generate e-trust and e-confidence among the online Consumers. Towards this effort ODR
services must follow some following guidelines.
(1)All information and disclosures should be accurately and completely stated to parties,

(2) ODR should disclose the minimum basic information like organizational information, terms,
conditions, disclaimers of services and pre –requisite for use of service like geographical location
or membership etc.

(3) Disclosure as to the costs for the process and what portion of the cost each party will bear are
necessary,

(4) In order to reveal impartiality this mechanism must unwrap its relationship with other
organizations to online Consumers,

(5)ODR institutions must give their privacy, Confidentiality, Member of panel, Neutrality of
Members, Qualification and experience of its members and (6) it must explain jurisdiction where
complaints can be brought, and any relevant jurisdictional limitations79.

2.4.5 CONSUMER PROTECTION IN E-COMMERCE UNDER THE CONSUMER

PROTECTION BILL 2018.

The Definition of E-commerce under the Consumer Protection Bill 2018 is as below:

“buying or selling of goods or services including digital products over digital or electronic
network”.
Due to advancement and progress of E-commerce the government of India introduced Consumer
Protection Bill 2018. The objective of the Bill is to safeguard rights of Consumer and to protect
their rights in e-commerce as well. The rise of international trade and the advancement in
ecommerce had changed the delivery system for goods and services, the progress of e-commerce
broad up the business and provided opportunities for Consumers, how ever, these online

79
Gagandeep Kaur, Jurisprudence of Ecommerce and Consumer Protection in India, First Edition, Satyam Law
International, 2015, Pg:198

76
businesses and online services brought unfair trade business practices as well for instance
multilevel marketing, direct selling, tele marketing, misleading advertisement etc. For protecting
Consumers from these unfair trade practices the Bill give power to center to make and provide
measures to protect Consumers in e-commerce.

Under the Bill 2018 the E-commerce entities would be:

1-Mandated to share with Consumers the main features of their term and conditions in a
simplified and easily understandable form

2-To Aware Consumers the term and condition governing their arrangements and venders.

Additionally, under the Bill of 2018, consumers can fill e-complaint electronically and they can
file complaint in Consumer court of the area of residence. Moreover, for follow up and hearing
process now they can do it through video conference and e-filling, so the e-commerce traders
will face huge liability since the consumer Protection Bill empower interest of consumers, In
addition, under the new Bill the consumer will be protected from fraudulent sales, fake products
and other unfair trade practices which is against consumers’ welfare80.

In the case of DR. Jay Prakash Gupta vs. Flipkart Internet Pvt. Ltd on 3rd of August,2018, the
judgment came out that there was deficiency in service of IFB oven company so the respondent
is ordered to refund the Consumer’s money which is Rs.8998/-, plus Rs.2000/- litigation cost to
the appellant within 30 days. As the facts of the case were that Dr. Jay Prakash Gupta complaint
against Flipkart Internet PVT LTD the complaint was that the complainant ordered an IFB @#L
Microwave Convection Oven from online shopping Flipkart on cash on delivery, the
Microwave Oven was delivered by the 28.10.2016. Moreover, they have told that with 2-5 days
of official days the technician of IFB microwave convection Oven will come and do the
installation and demo but they failed to fulfil their promise, so the appellant filed case for refund
and compensation of Rs.50000/- and Rs.15000/- as cost of litigation but the respondent said that

80
Shah Usman. Highlights of The Consumer Protection Bill 2018.Mondaq.23 May,2018.
http://www.mondaq.com/india/x/704090/Dodd-
Frank+Wall+Street+Reform+Consumer+Protection+Act/Highlights+Of+The+Consumer+Protection+Bill+2018.
(Visited on 05th june,2019 at 07:00pm).

77
we would deliver the service, if the appellant give us appointment to do the installation in official
working hours which was from 8:00am to 9:00 pm but the appellant was asking the service after
10:00pm which is not official working hour however the Dr. Jay Prakash Gupta rejected and said
no one send me any official email regarding that81. As looking to the case the Consumer rights is
not protecting in online world due to the insufficient laws regarding Consumer Protection in e-
commerce however under this Bill there is stringent liability for manufacturer service providers
and product seller. Which is for Consumer’s interest.

2.4.6 THREATS TO THE RIGHTS OF CONSUMERS IN ONLINE WORLD

The potential of internet, electronic communication, digital information gathering and electronic
shopping are numerous, and several years ago many people who would have thought to have
been excluded from the unprecedented opportunities now embrace the dot.com world. With this
‘e’-revolution electronic commerce has emerged as the potential emblem of a new worldwide
virtual economy82.In this online shopping, on one hand, Consumers are tendered convenience,
quickness and global choice in services, goods and more importantly, in price. However, on the
other hand, the internet implies new hazards for Consumers in the environment of e-marketing.
The consequences of shopping in the borderless world of the internet function differently from
the offline world in various ways. The position of the Consumer in an electronic environment is
primarily weaker when it comes to issue concerning privacy, payments and online
transactions.83Consumer usually lack the opportunity to obtain sufficient information about the
identity of the supplier, the term and conditions of any transaction, detail of delivery cost, the
quality of the goods or services and fair timely and affordable dispute resolution. For
transactions involving small purchases, there may be an absence of any practical means of
redress in the event of a dispute. This problem is accentuated further on the Internet as a
consequence of the possible cross-border dimension of the transaction. The Internet has
improvement transparency in prices and brand selection, but so much to transparency in quality
of products and services. The e-consumer is also more manipulated as a result of polished

81
Dr. Jay Prakash Gupta vs. Flipkart Internet PVT Ltd (2018) appeal no A/147 of 2018. (Visited on 15 june,2019 at
03:21am).
82
J.E.J. Prins, “Consumer, Liability, and Online World”, Information and Communication Technology Law, Vol 12,
No 2, June,2003, pp143-164 at P.142.
83
Ibid., p146

78
marketing strategies and he/she has less control on what exactly happens with data, information
and communication processes84.

Broadly speaking, violations of Rights of Consumers in Cyber space are covered under the term
‘electronic Crimes’. Electronic crime refers to the use of the information and Communication
technologies to commit ‘traditional’ offences by exploiting new opportunities ushered by
‘Network Revolution’ illegal activities in the Cyber World are rested on a matter of opportunities
and based on the assumption that ‘crime follows opportunity ‘Electronic crimes differ from
traditional crimes, mainly with regard to the location of the offender in relation to the scenes of
the crime. Information technology has a “democratic nature” meaning that anyone can use it, as
long as one possesses a minimum level of knowledge. The accessibility and user-friendliness of
information and communication infrastructure provide a fertile ground for offenders to commit
illegal activities hundreds of miles away from their location. Moreover, detection of electronic
crime is often more difficult in case of information theft and cheating in network in network
world. In fact, its especially white collar crime that benefits from the advent technology, since
white collar offenders usually have both technical knowledge and access to technical means. in
this context, it is observed that is not only “old crimes in new bottles” that need to be recognized,
however, also new types of acts what can be characterized as “illegal activities” in cyberspace.
There is no unified approach as to how an electronic crime is defined. However, from a legal
perspective, violation of Rights of Consumers can be categorized as under:

1. Security and Trust related Offences: Illegal collection, storage, disclosure of personal-
search information of Consumer;
2. Content related Offences: Tempting fake advertisement, misdiscription of quality details,
Non-Disclosure of terms and conditions of online contract in detail;
3. Contractual Contravention: Contracts concluded by Consumers with faceless, speechless
and virtual web-sites without any negotiation.

84
Gagandeep Kaur. Threats to the Rights of Consumers in E-Banking in India: An Overview. Available at:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2983199. (Visited on 6th April,2019 at 10:00am).

79
 4. Financial and Economic Crimes with Consumer: Offences relating to Credit Card, smart
card, ATM, Debt Card Frauds, Unauthorized Access, phishing, Pharming and sabotage85.

2.5 CONCLUSION

The Consumer Protection Act is being a beneficial legislation and this Act was enacted to
provide for better protection of the interest of consumer and for empowerment of consumer by
making them aware about their rights and responsibilities. Moreover, the provisions of this Act is
effective, inexpensive and speedy redressal system for consumers. Under the Act there is
provision for three tier systems as we mentioned below The District Forum, State Commission
and national Commission. This Act strengthening of forward markets and Forward Markets
Commission and formulate Standards and Strengthen Conformity Assessment of Products and
services. In addition, this Act helped consumers to conduct their case by them, This Act is
beneficial to protect the consumers from the exploitation and to save them from the exploitation
and to save them from adulterated and substandard goods and deficiency in services and to
safeguard their interest. The remedy under the Consumer Protection Act is an alternative in
addition to that already available to the aggrieved persons by way of civil suit. In the complaint
submitted under the Act, a consumer is not required to pay any court fees but only a nominal fee.
Consumer Forum proceedings are summary in nature. The endeavor is made to grant relief to the
aggrieved consumer as quickly as in the quickest possible. Furthermore, the object of Act of
1986, was to protect consumer’s interest and to give a speedy redress to consumers, but this Act
don’t provide provision regarding consumer frauds. Moreover, there are lots of amendments to
the Act so there was a need of better mechanism to protect consumer’s interests and rights. The
Consumer Bill 2018 brought some new provisions with changes in consumer market places. The
Bill 2018 establishes a Central Consumer Protection Authority which will protect rights of
consumers, it will work as a investigator and will have a director general as well, this authority
will deal with matters which are harmful to consumer’s interest like unfair trade practices,

85
Ioannis Lianos, Despoina Mantzari, Gracia Marín Durán, Amber Darr and Azza Raslan. The Global Governance
of Online Consumer Protection and E-commerce. World Economic Forum.March,2019.
http://www3.weforum.org/docs/WEF_Consumer_Protection.pdf. (Visited on 8th April,2019 at 12:00am).

80
misleading advertisement and liability of an actor or actress through the advertisement the had
advertised, CCPA deals with issues like unfair trade practices, misleading advertisement CCPA
has power to pass order if they find out any prejudice that might cause damage to consumer.

This Bill provide provision regarding the misleading advertisement and defined the misleading
advertisement Moreover, product liability of endorsers which was missing in 1986 Act.so that
manufacturer, product seller, supplier can be take liable of their product they manufactured,
supplied or sell. In the Consumer Protection Act 1986 there is no provision regarding the “unfair
contract” but in the Bill 2018 there is provision for “unfair contract” so under the bill the plaintiff
can ask for compensation for unfair contract from manufacturer, supplier, service provider.
Moreover, under the 2018 Bill there is a specific definition for “unfair contract” and it mentioned
about the six contract term that are unfair.

in the Consumer Protection Act 1986 the definition of the “deficiency” is not broad, however, in
the Bill 2018 they have expanded the definition of the “deficiency” as per Clause 2(11) it include
negligence exercises or omission or commission and deliberate withholding of relevant
information which causes loss or injury to the consumer. Under the Bill of 2018 the disputes can
be send to the mediation cell, so if the parties could settle their disputes in mediation cell so there
will be no need for them to go the forums. The bill raised the pecuniary jurisdiction so that
would protect more consumer’s rights.

Moreover, under the bill the Central Protection Council (CCPCs) was for protection of
consumer’s right but under the new bill they made Central Protection Council advisory board
bodies which will promote consumer’s right beside protecting them.

In addition, under the Consumer Protection Bill 2018 the Pecuniary jurisdiction of commission
raised for more protection of consumer’s rights, in district level it raised up to Rs. 1crore in state
level it raised up to Rs. 1crore -10crore and in national level it raised above Rs. 10 crores.
Additionally, under the Consumer Protection Act 1986 there isn’t any provision for Alternative
dispute redressal mechanism but under the Consumer Protection Bill there is mediation cell
which helps consumers to solve their disputes in a short time. In the other hand for protecting
interest of consumers under the bill the penalties duration raised up. Afterwards, the enactment
of the Consumer Protection Act,1986 was an important in the country. This law has been made

81
to provide for the better Protection and Promotion of Consumer rights through the establishment
of Consumer Councils and Quasi-judicial machinery. Under this Act, Consumer Disputes
Redressal Agencies have ben setup throughout the country with the District Forum at the District
level, State Commission at the State level and National Commission at the National level to
provide simple, inexpensive and speedy justice to the Consumer with complaints against
defective goods, deficient services, unfair and restrictive trade practices, However, all these
Protections are provided to Consumers in physical world. Expressly online Consumers in cyber
marketing are not mentioned under the Consumer Protection Act, 1986. But there is provision for
consumer protection in e-commerce under the Consumer Protection Bill,2018. This Bill will deal
with unfair trade practices in online world, in addition there is provision regarding ecommerce
which is a very important in this century since thousands of consumers do shopping through
online sites so this Bill protect their rights in online world.

Chapter 3

82
 CONSUMER PROTECTION LAWS IN AFGHANISTAN

3.1 Introduction

Afghanistan is a developing country consumers are under privileged of their rights since in
Afghanistan Consumer are not satisfied with the goods and services which is provided by
businesses, the large group of consumers are under privileged of their rights and they are not
aware of their rights, the quality of product is very low in Afghanistan like petrol, oil, food,
medicines, other important goods and services have very low quality which are harmful to health
of Consumers.

Afghanistan is suffering from poverty and there is economy conflict, moreover countries across
the world like Pakistan, India and China export the low quality of goods and services to
Afghanistan, so Afghanistan has changed to a dumping center. Afghan consumers are victim of
deceptive trade practices and adulterated commodities on a regular basis. They are victim of
hazardous products, unfair trade practices, because they have less access to redress, and
cartelization level is very high in Afghanistan, due to low corporate governance and lack of
legislation to deal with these issues.

For protecting the rights of Consumers Afghanistan established the competition promotion and
Consumer protection general Directorate with in the Ministry of commerce and industry, The
Competition Promotion and Consumer Protection Directorate(CPCPGD) drafted the Consumer
protection legislation and sent it to the ministry of justice and after that they decided to send to
the parliament of Afghanistan for ratification so in 2016 the Consumer Protection Act,2016
enacted by president Ashraf Ghani86.

But, there is need for implementation of this Act, to protect consumer’s rights. But due to
numerous loopholes in this Act, it is difficult to implement, for instance, the rights of
Consumers, which are right to safety, right to education, right to be heard, right to be informed,

86
Ahmad Masoud. Afghanistan is in dime need of Consumer rights protection. Wadsom.
https://wadsam.com/afghan-business-news/afghanistan-is-in-dire-need-of-Consumer-rights-protection-867/.
(Last visited on 6th Feb, 2019 at 3:12 pm).

83
right to choose, right to redress, right to healthy environment. But all these rights are not covered
under Consumer Protection Act 2016.

The Consumer Protection Act,2016 is under revision. protection of consumers in Afghanistan

assist it to achieve and maintain adequate protection for their population as consumers,
Moreover, protecting consumer will help to facilitate production and distribution patterns
responsive to the need of consumer in Afghanistan, it will encourage and support high level of
ethical conduct for businessman who produces and distributes goods and services to Consumers.
Moreover, it facilitates the development of independent Consumer group.

It will additionally encourage the development of market conditions which led to provide
consumers with greater choice of lower prices. Furthermore, it promotes sustainable
consumption in Afghanistan. Consumer Protection is one of the important matters nowadays in
Afghanistan, since for a long period of time it was the most forgotten issue in Afghanistan. The
implementation of Consumer Protection Act,2016 will have led to fair competition and good
governance and bring more democracy in Afghanistan, it will build the trust of consumer on
quality and safety of domestic products., if the domestic products have good quality it will attract
consumers’ interest.

3.2 AFGHANISTAN CONSUMER PROTECTION ACT, 2016

The Consumer Protection Act, 2016 of Afghanistan was prepared by Parliament and enacted by
President of Afghanistan Ashraf Ghani in 2016.It consists of 4 chapters and 50 sections.

Chapter One: This chapter contains objective of Consumer Protection Act, about the
commencement and application of the act, furthermore it lists some important definitions which
are related to the Consumers and broadly mentions about the enforcement area and application
mechanism of this Act. Moreover, it also states which organ has authority for application of the
Act.

Chapter Two: Chapter two of Consumer Protection Act,2016 contains liability of manufacturer,
liability of product supplier, under this Act its mentioned about which information to be given to
the consumer, also this Act forbids giving wrong information to the customers by the
manufacturer or product supplier. In addition to this, in this chapter it mentions about prohibition

84
of the manufacturing and supplying of hazardous products and prohibition of the manufacturing
and supplying of products with misleading information. Adding to this, it prohibits the
misleading advertisement and ordered to give the mentioned gifts on the exact time they mention
in their advertisements. Furthermore, it prohibits the product seller not to ask for money for
products which are not asked by consumers, apart from this in this chapter it introduces about e-
commerce and how to do business through electronic device. Moreover, this chapter states about
responsibilities of manufacturer, product seller and service providers toward the consumer. In
last of this chapter it prohibits manufacturers and product sellers and service provider not to put
unfair conditions to the consumers.

Chapter Three: In chapter three of the Consumer Protection Act 2016 it comments about how
to withdraw a complaint and what are the ways to do, on the other hand, it cites that consumers
can take the advice of the experts in some cases. Under this chapter, there is a provision
regarding commission on preventing of the producing of the products with expired dates, bad
quality, and fake products. Moreover, in this chapter it states about the job and responsibilities of
the commission, their authorities, it also cites about reporting to departments related to
consumer’s issues and this Act ordered for fading of expired products.

This chapter states that the high committee of consumer protection, what are the job and
responsibilities of the high committee and how the high committee bring resolution for disputes.
Additionally, what are the evidences under which the committee can solve the disputes.
Moreover, about decision of the high committee regarding the hazardous products and harmful
services. This Act prohibits hazardous products, if products are not safe the government can
collect the hazardous products and stop the harmful services. Under this chapter there is
provision regarding voluntary collection of hazardous products and cancellation of the collection
of product in case the manufacturer or product supplier or service provider proves that the
product or service is not harmful, if there is a harmful product the government is able to circulate
the information in the market so the consumer would be able to avoid it and the responsible
organs can circulate the name of the manufacturer, product supplier and service provider so the
consumer would be aware. Apart from this under this chapter it states that, if the manufacturer
doesn’t stop manufacturing or the product seller don’t stop selling the hazardous product or

85
service provider don’t stop providing harmful service it will be referral to the competent
authority and respected court and if these traders would be able to justify so the court can
comment issued constitution.

Chapter Four: This chapter explains the prosecution follow ups, and under this chapter it states
that consumers have right to create associations to protect their rights. under this act it’s the
confidentiality of the consumer information is very stringent no one is allowed to share personal
information of the customer.

3.2.1 OBJECTIVE OF THE CONSUMER PROTECTION ACT,2016

The objective of this Act is to protect consumer from misleading act and fraud and protect
consumers from unfair trade practices. This act provides protection of rights of consumer and the
rights are as below

 Right to education, to have enough education regarding the good or services the
consumer is taking.
 Right to be assured of quality and quantity and the safety of goods or services.

3.2.2 IMPORTANT DEFINITIONS UNDER THE ACT

Consumer: Consumer is a person who uses items or services for its own acidities’ or public
services.

Advertisement: Advertisement are for depreciable awareness and promotion of goods and
services

Complainant: Complainant is a natural or legal person who complains to competent authorities

in relation to goods and services which are defected or nonstandard services.

Compliant: Complaint is an objection filed by a complaint in nonstandard kind or services in

writing to the competent authority.

Contract: Contract is a written or oral agreement between the depot and the manufacturer or
supplier for the purpose of supplying the goods or supplying the service.

86
Production: Production is the creation, extraction, extraction, processing or packaging of the
goods.
Manufacturer: Manufacturer is a person or decree that created, extracted, extracted, processed
or packaged the goods.
Supply: Supply is selling in cash or on installments, exchanges and rentals of the kind or
service, with the exception of the gift unless the gift has been made for commercial advertising.
Supplier: Supplier is a Person who supplies the goods and services.
Service: Performing the affairs stated in the contract is in accordance with accepted criteria and
a system supplying a need of public such as, communications, transport or utilities such
electricity.
Hazardous products: Hazardous products is a product that, despite the use or use of it in
accordance with the guidelines, causes physical harm to be depreciated.

3.2.3 APPLICABILITY OF CONSUMER PROTECTION ACT,2016

 Producer and supplier of domestic products or services.
 An external producer and distributor who has an agency inside the country and who
(consumer) suffers from the effects of his deportation or detention within the country.
 Government-owned enterprises or corporations whose income-generating activities are
related to the supply of goods or services within the country.

3.2.4 MANUFACTURER LIABILITY UNDER CONSUMER PROTECTION ACT 2016

1- Matching of the goods with the specifications listed on the label.
2- Match the goods in terms of quality and vitality with the sample.
3- Goods should not be defected.
4- Safety of the goods or service in accordance with the previously provided undertaking
5- Submission of the goods. or supply of depreciated service during the agreed term.
6- Manufacturer is liable to matched goods or service with technical regulations.

87
3.2.5 SUPPLIER LIABILITY UNDER CONSUMER PROTECTION ACT 2016
1. The supply of goods or service without interruption to consumer.
2. Ensuring the existence of facilities and facilities for restoration of goods.
3. Deliver service with skill and caution
4. The supplier is required to weigh or measure the goods or service according to the
official measurement unit of the state in front of the consumer.
5. If the supplier already gives information about the defected good and consumer accepted
consumer can’t return it or can’t ask for redress.

3.2.6 THE MANUFACTURER OR DISTRIBUTOR IS REQUIRED TO MAKE THE

FOLLOWING INFORMATION AVAILABLE BEFORE THE TRANSACTION IS
MADE IN RELATION TO GOODS OR SERVICE

1. Basic Specifications.
2. Size of the event.
3. How to use.
4- Installation and maintenance instructions.
5. Original composition and content.
6. Protective instructions.
7. Warranty of goods
8. Gentian gender.
9. Depreciation period of the good.
10. Other required information
3.2.7 SOME OTHER LIABILITY OF MANUFACTURER, SUPPLIER AND SERVICE
PROVIDER UNDER CONSUMER PROTECTION ACT 2016

The supplier is liable to write the MRP of product in Afghani rupees only, and write it on top pf
product. Moreover, the service provider is oblige and liable to elaborate the exact amount of the
service in Afghani rupees.

88
In addition foreign manufacturer or service provider is obliged to write the instruction of use of
product or service in Official languages of Afghanistan.
All manufacturing companies, product sellers of specially designed food and beverages should
specify the characteristics, composition, production location, production history and expiry dates
in official languages of the country.

Manufacturer is not allowed to provide unrealistic information to consumer under

Consumer Protection Act 2016 which are as following

1 - Technical regulations (mandatory standards), quantity, quality, manufacturer, type and use of
goods.
2- Feature of use and service, especially goods or service.
3. Warranty and guarantee of goods
4. The country of production.
5. Supply of goods or service
6- Having the healing properties of drugs.
7-The attribute of the safety of a goods or service.

Supplier is not allowed to provide unrealistic information to consumer under Consumer

Protection Act 2016 which is as following

 Types, technical regulations, quantity and quality of service and the provision of it by a
person who is a trainee, specialist or skill.
 New goods, production, process.
 Restoration of the goods to the exact time
 Price of goods or service.
 Selling of goods or services which are in discount. Change of work place or termination
of trade.
 The supplier cannot force consumer to accept goods or services.

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3.2.8 ADVERTISEMENT UNDER CONSUMER PROTECTION ACT 2016

 The manufacturer or supplier cannot publish non-realistic advertisements in relation to

goods or service.
 manufacturer or supplier may not disclose related advertisements in a manner comparable
with advertisements by other manufacturers or suppliers, through the mentioning of a
name, image and particulars of goods or service in their own interest, so as to cause
injury or insult.
 a producer or supplier cannot advertise related information in relation to good or service
that is opposed to Islamic values.
 Advertisement must be easy to understand and it should be in one of the languages of the
country.
 The supply should be same as advertisement:
(1) A manufacturer or supplier may declare the supply of the item or service at a specified price
at a given time, capable of supplying it.
(2) The supplier of the product is obligated to supply the item within the period specified in the
notice and for the price and quantity, taking into account the nature of the good or service that it
has declared.
(3) The supplier or manufacturer may not provide the alternative of the good or service declared.

3.2.9 E-COMMERCE UNDER CONSUMER PROTECTION ACT 2016

Manufacturers or Suppliers are required to provide the supplier with the right to make the
following information available prior to the sale of the item or service:
1. Name, reputation and affiliation.
2. Full details of good or service.
3. The use of good and the dangers of it.
4. Good or service delivery time.
5 place of delivery.

90
6. Price of good or service.
7. Total expenses of the good or service, including price, remuneration, delivery and tax.
8 Versions and After Sales Services.
9- Contract terms.
10- The terms and terms of termination.
11. The right to claim compensation for damages arising from the breach of the relevant
agreement.
12. Conduct a dispute
3.2.10 CONSUMER PROTECTION AGENCY UNDER CONSUMER PROTECTION
ACT 2016

Duties and responsibilities of the consumer protection agency is as following:

1-to make consumer protection policies.

2- To make Legislative documents on support for consumer protection.
3. Supervising and avoiding the sale of non-standard products.
4. Identify and establish violations of the provisions of this law.
5- Reviewing the complainant's complaint and making the decision in the field.
6-Providing information about the rights and responsibilities of consumers and aware them from
their rights.

3.2.11 COMMISSION TO PREVENT THE PRODUCTION AND DISTRIBUTION OF

THE EXPIRED DATE PRODUCTS, LOW QUALITY PRODUCT AND FAKE
PRODUCT UNDER CONSUMER PROTECTION ACT 2016
The commission is consist of
1. Chief of the Commission.
2- Representative of the Attorney General's Office as a member.
3- Representative of the Ministry of Interior as a member.
4. Representative of the Ministry of Public Health as a member.
5- Representative of the Ministry of Agriculture, Irrigation and Malting as a member.
6. Representative of the Ministry of Finance as a member.
7. Representative of the Ministry of Economy as a member.

91
8. Representative of the National Directorate for Standardization as a member.
9. Representative of the municipality as a member.
10. Representative of the Chamber of Commerce and Industry of Afghanistan.

Responsibilities of the Commission

1. Supervision and market review to prevent the supply expired products. Low quality and fake
product.

2. Seal the declassification of the expired products, Low quality and fake product.

3. Requests for documents shall relate to the suspect good, and to the extent that it is obtained by
the Laboratory within a period of (7) working days.

4. Sample collection of samples for quality assurance by the relevant authorities.

3.2.12 High Committee under Consumer Protection

In order to regulate affairs in support consumers, the High Committee of the Supreme Court,
composed of the Presidents and the Fourth Members.
Responsibilities of High Commission under Consumer Protection Act,2016
The committee is required to perform the following in order to handle the complaint
2. Adopt the necessary measures for the manufacturer or distributor of the offense.
1- Reviewing the cases received from the administration and issuing orders in the field.
3. The issuance of a decree on the inclusion of the perpetrators of the offenses listed on the
website or other relevant publications prior to the implementation of the said order.
4. Summoning the parties to submit a complaint to the committee.
5. Preventing fraudulent and unethical acts of the producer or distributor.
6. The fine is limited to a maximum of 30% of the price of the product or service.

92
3.3 CONCLUSION

During the last years Afghanistan, adopted or is in the process of enacting competition and
consumer protection laws, there is improvement in their awareness and day by day they have
find out the value of laws for trading and business. Afghanistan has come to recognize the
benefits that could be calculated and derived from consumer protection laws enforcement. The
establishment of legal framework in order to protect consumer rights increased in last years in
Afghanistan, but due to insecurity and corrupted government its very tough to implement Acts in
Afghanistan. The economic situation is very bad in Afghanistan, due to war from several years
its not easy to implement laws in Afghanistan, doing business became very tough in Afghanistan,
most of people live under poverty and traders import the low quality of products and give low
service here, since current economic situation in Afghanistan is not in a good condition. In
addition most of people in Afghanistan are unaware of their rights, consumers don’t know what
are their rights and how they can ask for redressal if they get harm by a product , however, after
the new President Ashraf Ghani Ahmadzai, the Parliament members started making policies and
so on made an Act, for protecting consumer’s rights in Afghanistan, and send the act to president
for enactment accordingly the President enacted the Act and, the Act is enforceable from the date
of enactment of the Act. How ever this Act has some loopholes and lacunas and need some
amendments. Comparing India’s Consumer Protection Laws with Afghanistan demonstrate that
if the new bill passes in India, then Afghanistan should adopt the provisions from this Bill, since
there are numerous loopholes under the Consumer Protection Act of Afghanistan, for instance
under the Act there is no provision regarding mediation cell for consumer’s alternative dispute
resolution is missing , which is one of the speedy way for consumer’s dispute resolution. In a
short period of time. Moreover, under the Act they have given very limited rights to consumers
which is right to education about product and right to be assured of quality, quantity, potency
etc., some important rights are missing from this Act for example:

 Right to be heard.
 Right to be informed.

93
  Right to be in good environment.
 Right to choose.
There is protection from hazardous products but there is no specific provision for protection of
consumer from hazardous products and services, on the other hand, under the Act there is no
liability for endorser for advertisement which are misleading and no penalty and compensation
for them. Consumer Protection Act 2016 have certain provision for Ecommerce how ever its just
about the responsibilities of manufacturer, product supplier and service provider but nothing is
mentioned about penalties and pecuniary jurisdiction for online frauds. Under the act the term
unfair contract is missing87.

87
Available at: http://www.moj.gov.af/en

94
 Chapter 4

INTERNATIONAL DEVELOPMENTS OF CONSUMER PROTECTION LAWS

3.1 Introduction

In the latter half of the 20th century there was a development of a universal advocacy for
improving the administrative and legal norms in the area of consumer protection. The advocates
of consumer protection stressed upon the role of governments in the protection of consumers in
the modern market, in particular in the areas of policy-making, legislation and the development
of institutional capacity for the enforcement of consumer law. The President of United States J F
Kennedy, during his speech in the United States Congress stated that: Consumers by definition,
include us all; they are the largest economic group, affecting and affected by almost every public
and private economic decision yet they are only important group whose views are often not
heard.

He emphasized the need for the recognition of certain basic rights for the consumer as an integral
part of the international law and policy, and creating an obligation for all the member states of
United Nation to enforce the same in their domestic jurisdiction. In the protection and
enforcement of consumer rights especially in the developing countries.

3.2 UNITED STATES OF AMERICA(USA): EFFORTS TOWARD ACHEVING

BETTER CONSUMER PROTECTION MECHANISM PRESIDENT KENNEDY’S
DECLARATION ON CONSUMER RIGHTS

The United Nation took up the task to develop some common basic principles for enhancing
consumer rights. The development of consumer law jurisprudence in United States also stems
down from the common law origin of contract and tort law. However in US the rigid contract
rule of privity was set aside in the case of MacPherson v. Buick Motor Co.88In this case the
plaintiff was injured while he was driving the car, brought from a retailer, which fell to pieces,
causing the car to crash. He brought action for negligence against the manufacturer. The court
upheld the plaintiff ’s claim on the ground that liability arose if the nature of the thing is such

88
217 NY 382,111 NE 1050.

95
that it is reasonably certain to place life and limb in peril when negligently made, it is a thing of
danger, and in such cases the manufacturer of such dangerous goods cannot escape liability
under the privity of contract rule. In US the Macpherson judgment became the basic for a general
rule imposing liability upon any supplier for remuneration of any chattel. But the modern law of
consumer protection is a legal reform effort addressing certain inadequacies in the traditional
legal doctrine. The Consumer Product Safety Act was enacted. Paul’s Boyer, a distinguished
author, in his article on ‘Consumer Movement”89 has mentioned about the modern consumer
movement. The relevant following extract is in structure and is reproduced as: “The modern
consumer movement arose in the Progressive Era, as citizens concerned about unsafe products
and environmental hazards used lobbying, voting, and journalistic expose to press for
government protection”. In the same vein, the Consumer Union (1936), publisher of Consumer
Reports, tests products for safety, economy, and reliability, to give consumers an objective basis
for choice. Such socially engaged consumerism actually had long historical antecedents,
including revolutionary era patriots who had boycotted English tea and textiles and abolitionists
who had refused to purchase goods made of slave-produced cotton. Consumer activism revived
in the late 1960s, flourished in the 1970s. and, despite a conservative backlash against
government regulation, survived in diminished form in the 1990s. A by-product of 1960 social
activism, consumer advocates insisted on citizen’s rights to safe and reasonably priced goods and
services and to full disclosure of product information. The lawyer Ralph Nader gained fame for
“unsafe at Any Speed” (1965). Which detailed safety hazards plaguing General Motors’(GM)
Corvair automobile. Using $425,000 won in an invasion—of-privacy- suit against GM in 1970,
Nader founded numerous consumer groups, nicknamed “Nader’s Raiders” that pursued legal
challenges to unsafe products and demanded greater government protection for consumer. The
Occupational Safety and Health Administration (1970), and the Consumer Product Safety
Commission (1972) attested to the movement’s success but modern movement downplayed the
power of consumers to effect social change. Ralph Nader played an extremely important role in
consumer movement in the United States of America. A note appeared and stated that (an extract
is reproduced), “Ralph Nader has been called the nation’s nag. He denounced soft drinks for
containing excessive amounts of sugar. He warned Americans about the health hazards of red

89
Oxford Companion to United States History, Oxford University Press,2001.

96
dyes used as food colorings and of nitrates used as preservatives in hot dogs. He even denounced
high heels. Since mid 1960s. Ralph Nader has been the nation’s leading consumer advocate”90.

The defense mechanism of consumer for the first time inherent by the United States of America,
they had started improvement of monopoly capitalism, so forth formed a commission by the
name of Federal Trade Commission(FTC) for protection of consumers. This commission was
formed in Sep 26,1914 and the Federal Trade Commission Act was signed by president
Woodrow Wilson and it was opened for customers on 16th march 1915. The aim of FTC was the
competition in the market and protect rights of consumers in the market and it works with
Consumer protection authority and competition governance. In the USA it started in 19th century
the government bureaucracies effecting consumers, which caused to begin the promotion of (Bill
of Rights) by president John F Kennedy and FTC was working to administrate Consumer
protection laws.

There are several laws in US state and federal laws for protection of Consumer’s rights for
instance Fair Credit Reporting, Truth in Lending Act, Federal Food, Drug, Cosmetic Act, Fair
Credit Billing Act, all these are governed under FTC, the Food and Drug Administration and US
Department of Justice. The idea of consumer protection wasn’t new in USA there were laws
regarding food purity in late 1890s and Early 1900s. Rise in consumer credit and product safety
awareness encouraged much legislation regarding Consumer protection in 1970s.In 1938 Food
and Drug and Cosmetic Act enacted by congress, Moreover, in 1962 President John F. Kennedy
defined rights of Consumer and later President Gerald Ford added right of Consumer
education91.

90
America in Ferment: The Tumultuous 1960s- Ralph Nader and the Consumer Movement.
91
Lexington Law. A History of Consumer Rights and Improvements. Lexington Law. Available at
https://www.lexingtonLaw.com/blog/credit-repair/history-Consumer-rights-improvements.html. (Last visited on
15th Jan, 2019 at 4:12 pm).

97
3.3 EUROPEAN UNION GUIDELINES ON CONSUMER PROTECTION

The European legal system had started to adapt their legal order to challenges posed by the
emerging consumer market during 1960 and 1970s. But this effort gained momentum with the
emergence of the European economic integration. The European Community of States framed a
draft Directive on Product Liability in 1970 and after a series of negotiation adopted it in
1985.This Directive was a significant attempt to achieve the harmonization of the consumer laws
among the member States of the European Union. The preamble to this directive states:

Whereas approximation of the laws of the Member States concerning the liability of the producer
for damage caused by the defectiveness of his products is necessary because the existing
divergences may distort competition and affect the movement of goods within the common
market and entail a differing degree of protection of the consumer against damage caused by a
defective product to his health or property.

The preamble to the Directive seeks to justify the approximation of laws by arguing the
divergence between the laws of different member States may distort competition and effect the
free movement of goods within the common market and entail a differing degree of protection of
the consumers under the different existing legal regimes on consumer protection in Member
States.

The Directive accordingly provides in its first Article that “ The producer shall be liable for
damage caused by a defect in his product.”92The category of producers as per The Directive
includes all those in the supply chain from the manufactures down and also includes any person
who presents himself as a producers by affixing his name or trademark, As per article 3 of the
directive:

1. “Producer” means the manufacturer of a finished product, the producer of any raw
material or the manufacturer of a component part and any person who, by putting his
name, trade mark or other distinguishing feature on the product presents himself as its
producer.

92
Article 1 of the Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and
administrative provisions of the member States concerning liability for defective products.

98
 2. Without prejudice to the liability of the producer, any person who imports into the
Community a product for sale, hire, leasing or any form of distribution in the course of
his business shall be deemed to be a producer within the meaning of this Directive and
shall be responsible as a producer.
3. Where the producer of the product cannot be identified, each supplier of the product shall
be treated as its producer unless he informs the injured person, within a reasonable time,
of the identify of the producer or of the person who supplied him with the product. The
same shall apply, in case of an imported product, if this product doesn’t indicate the
identity of the importer referred to in paragraph 2, even if the name of the producer is
indicated.
The European Committee Directive applies to all member States in the European Union and
several newly admitted states have also adopted the same either through amending their existing
laws or bringing a new legislation based on the Directive. The other important laws that relate to
consumer protection framework in the EU are Unfair Term in Consumer Contract Directive and
Unfair Commercial Practice Directive. Both these Directives aim to protect the consumer’s
economic interest, and the Consumer Product Safety Directive is also relevant with reference to
protecting health and physical safety of the consumer The EU establish the ground rules of the
internal consumer market and a vision for social and economic progress for the member States.

A report of directive outlined on 29 may,2017 and it was for finding out weather this directive is
protecting rights of consumer so after the report came out the commission proposed to revised
the laws in EU in April 2018 .Moreover, the Directive follow the New Deal For Consumer
Package, he final adoption of the revised laws might be in autumn 201993.

3.4 CONSUMER LAWS IN UNITED KINGDOM

United Kingdom has a long history of consumer protection laws. Consumer law has its roots in
laws regulating trade date back centuries, Law consists of common law (decisions made by
judges over the years) and statute law (decisions made by parliament).

93
Consumer Guarantees. Available at https://europa.eu/youreurope/business/dealing-with-customers/consumer-
contracts-guarantees/consumer-guarantees/index_en.htm. (Last visited on 15th June, 2019 at 4:12 pm).

99
Common Law: History of the United Kingdom consumer movement can be traced back from
several leading judgment of the English courts including the landmark decision of Carlill v.
Carbolic Smoke Ball Company94. In this case a rule for manufacturers liability for minimum
quality standard for product was upheld. A select committee in 1856 recommended that a cheap
and easy remedy, by a summary charge before a magistrate, should be afforded to consumers
who received adulterated or falsely described food. This suggestion was taken up in the
Merchandise Marks Act 1887. Section 17 of the Act provides as follows:

That a person applying a trade description to a product was deemed to warrant that it was true, so
that a false trade description constituted breach of both criminal and civil law. Other important
case establishing manufacturers liability was also decided leading to the globally significant case
of Donoghue v. Stevenson95

Where the consumer claimed to have suffered injury as well as result of drinking from a bottle of
ginger-beer containing a decomposed snail. Over a strong dissent the majority held that the
manufacturer would be liable. The case didn’t herald strict liability but it facilitated more claims
than were provided under the nineteenth century approach.

Lord Aktin enunciated the manufacturer’s duty of care in the following words: The preparation
or putting up of the products will result in an injury to the consumer’s life or property, owes a
duty to the consumer to take that reasonable care. This case is regarded as the foundation of the
“Product Liability Law” in UK.

The Organized English consumer movement started after the second world war. The Labour
party for the first time gave slogan of “battle for the consumers” in the parliament. In the decade
of 1960, number of legislations were introduced in Britain for the protection of the consumers.
The Consumer Safety Act 1978 was enacted.

Statute law: It is a more recent phenomenon but very helpful for consumers, because most
statute laws extend the rights that people have in common law by laying down specific
conditions. Virtually all law that matters to consumers today has been introduced since the

94
[1893] 1 Q B 256.
95
[1932] A C 562.

100
1970s. There were about dozens of significant acts and many more regulations, the most
significant of these Acts were:

1. The Unfair Contract Term Act 1977

2. Consumer Protection Act 1987
3. The Supply of Goods and Services Act 1982
4. Trade Descriptions Act 1968.

1.Unfair Contract Terms Act 1977

The Unfair Contract Terms Act, regulated Contracts by restricting the operation and legality of
some contracts terms. I extended to nearly all forms of contract and one of its most important
functions was limiting the applicability of disclaimers of liability. The terms extend to both
actual contract terms and notice that are seen to constituted a contractual obligation. The Act
rendered terms excluding or limiting liability ineffective or subject to reasonableness. Depending
upon nature of the obligation purported to be excluded and weather the party purporting to
exclude or limit business liability, acting against consumer. It was normally used in conjunction
with the Unfair Term in Consumer Contracts Regulations 1999(Statutory Instrument 1999
No.2083), as well as the Sale of Goods Act 1979 and the Supply of Goods and Services Act
198296.

2-Consumer Protection Act 1987

This legislation derives from the European Community Directive of 12 July 1985.It was a form
of government regulation which was protecting the interests of consumers.

Part I: of this Act was empowering consumers to claim compensation for death, injury or damage
to property over 275 pound if a product they use turns out to be faulty. Action is usually against
the manufacturer or producer, but the consumers can also sue the retailer if it wont tell you who
the manufacturer is. This another strict liability law, but claims for injury were complicated.

The regulations framed under the Consumer Protection Act empowered the state to also regulate
distance selling. These regulations were applying to most contracts made at a distance. They
96
Lowe and Woodroffe, Consumer Law and Practice, Sweet and Maxwell, 10 th Edition, 2016. Pg.133-145

101
require consumers to be given a certain amount of information before they commit themselves to
the deal. They also provided a cancellation period. The actual length of the cancelation period.
However, depends on weather or not the required information has been given. If not, it’s three
months and seven working days. Under the regulation if a consumer is sent any unsolicited
goods, he is entitled to treat them as an unconditional gift. The rights of the seller are
extinguished. And they commit a criminal offence if they demand payment for them or otherwise
threaten legal proceedings.

Part II: of the Consumer Protection Act 1987(as amended by the General Product Safety
Regulation 1994) were imposing a duty on all producers and distributors of goods to ensure that
their products are safe.

Part III: part three of this law made it an offence to display a misleading price.

3-Supply of Goods and Services Act 1982

The most important law covering services was the Supply of Goods and Services Act 1982.that
was covering work done and products supplied by tradesmen and professionals. It was applying
not only to builders and plumbers but to dentists, restaurants, hairdressers, in fact anybody who
is supplying a service you pay for. Like the Sale of Goods Acts, this law was also imposing strict
liability on any materials used. If an electrician puts in a faulty light switch. It’s irrelevant
whether he knew the switch wasn’t right97.

4-Trade Description Act 1968

The most important criminal consumer law is the Trade Description Act 1968.This makes it a
criminal offence to apply a false trade description to goods, or otherwise to supply goods which
have been falsely described. It applies to any description a trader might make; it could be an
advert or on a sign or label, in a shop window or a verbal description from a sale assistant. The
Act also applies to services, but here an offence is only committed if a description is “reckless”
as well as false.

5-The Consumer Rights Act 2015

97
see decision of Backett v. Kingston bros. [1970] 1 QB 606.

102
This Act was introduced by Jo Swinson MP in UK and enacted by parliament of the UK, The
Act came into force on 1st of Oct, 2015.This Act nullified the other legislation like The Sale of
Goods Act, Unfair Term in Consumer Contract Regulations and The Supply of Goods and
Services Act. This Act gives clear shopping rights, modernize the laws, and provisions under this
Act are more stringent for offenders. Under this Act the quality of product should meet the
standard which is set under the Act:

 Quality of the product should be satisfactory.

 The products and services should be the way it described before the purchase.
 The product and service should be fit for consumer’s aim to buy it98.
Moreover, this Act have three parts: Part 1 contains provisions regarding contracts of good,
digital content, services. Part 2 contains provisions of Unfair term. Part 3 contains other
miscellaneous provisions.

This legislation is combination of

 Unfair Terms in Consumer Contracts Regulations 1999.

 Unfair Contract Terms Act 1977.
 Sale of Goods Act 1979.
 Supply of Goods and Services Act 1982.

The Consumer Right Act 2015 protects rights of consumers and give them more rights99.

3.5 Conclusion
The Governments should provide more stringent laws for elaborating and strengthening
consumer protection policies and legislation. They are also intended to encourage international
cooperation in this field. Taking into account the interests and needs of consumers in all
countries, particularly those in developing countries, recognizing that consumer often face
imbalance in developing countries, recognizing that consumers often face imbalance in economic

98
Giliker, P. The Consumer Rights Act 2015.Open Access. Available at : https://research-
information.bristol.ac.uk/files/86580475/Revised_Giliker_Consumer_Rights_Act_2015.pdf

. (Last visited on 30th may, 2019 at 02:10 pm).

99
Ibid.

103
terms, educational level and bargaining power, and bearing in mind that consumer should have
the rights of access to non hazardous products, as well as the importance of promoting just
equitable and sustainable economic and social development, The Governments should maintain
adequate infrastructure to develop, implement and monitor consumer protection policies. Special
care should be taken to ensure that measures for consumer protection are implemented for the
benefit of all sectors of the population, particularly the rural population. Governments should
cooperate to improve the conditions under which essential goods are offered to consumers,
giving due regard to both price and quality.

how ever UN guidelines for consumer protection have the following objectives:

I. To assist countries in achieving or maintaining adequate protection for their population as

consumers;
II. To facilitate production and distribution patterns responsive to the needs and desires of
consumers;
III. To encourage high levels of ethical conduct of those engaged in the production and
distribution of goods and services to consumers;
IV. To assist countries in curbing abusive business practices by all enterprises at the national
and international levels which adversely affect consumers;
V. To facilitate the development of independent consumer group
VI. To promote sustainable consumption;
The United Nations agreed in July,2015 to make change in the existing UN Guidelines for
Consumer Protection to further strength the position of consumers in area such as electronic
commerce, financial services, public utilities. Good business practices and international
cooperation. Furthermore, the new guidelines will also attempt to bridge the gap between the
protection of Online and Offline consumers. It is hoped that the set of new UN Guidelines on
Consumer Protection will be adopted by the UN General Assembly in due course.

104
 Chapter 5

ANALYSIS OF CONSUMER PROTECTION IN INDIA AND AFGHANISTAN

5.1 Introduction

This table is a comparison of the Consumer Protection Act of 1986 and Consumer Protection
Bill,2018 of India versus the Consumer Protection Act,2016 of Afghanistan. This table compares
provisions regarding scope of law, unfair trade practices, product liability, Central Protection
Council, regulator, pecuniary jurisdiction of commission, composition of Commission,
appointments of commission, Alternative Dispute Resolution, penalties, ecommerce, rights of
consumers in Indian Consumer Protection Act 1986, Consumer Protection Bill of 2018 of India
with Afghanistan Consumer Protection Laws.

Provision Consumer Protection Consumer Protection Bill Consumer Protection

Act 1986 India 2018 India Act 2016 Afghanistan.

Scope of law • All goods and services • All goods and services,  All good and
for including telecom services in
consideration. and housing Consideration
• construction, and all but doesn’t
Free and personal modes of transactions
include housing
services are excluded. (online, teleshopping,
etc.) for contraction.
consideration.  Free and
• personal
services are

105
 Free and personal services are excluded.
excluded.

Unfair trade  Includes six • Adds three types of  No provision for

practices. types of such practices to the list, definition of
practices, like namely: (i) failure to Unfair Trade
false issue a bill or receipt; Practice.
(ii) refusal to accept a
representation,
good returned within  No provision for
misleading 30 days; and (iii) failure to issue a
advertisements. disclosure of personal bill ,refusal of
information given in accepting goods
confidence, unless within 30 days.
required by law or in
public interest.
•
Contests/ lotteries may be
notified as not falling under
the ambit of unfair trade
practices.

Product liability  No provision. • Claim for product liability • Claim for product
can be made against liability can be
manufacturer, service made against
provider, and seller. manufacturer,
• service provider,
Compensation can be and seller.
obtained by proving one of
the several specified
conditions in the Bill.

Unfair contracts  No provision • Defined as contracts that  No provision.

cause significant
change in consumer
rights.
•
Lists six contract terms which
may be held as unfair.

106
Central • CPCs promote and • Makes CPCs advisory  No provision.
protect the rights bodies for promotion
Protection
 Councils
of consumers. and protection of
(CPCs) • consumer rights.
CPCs established at the •
district, state, and Establishes CPCs at the
national level. district, state and national
level.

Regulator • Establishes the Central  No provision.

Consumer Protection
 No provision. Authority (CCPA) to
promote, protect, and
enforce the rights of
consumers as a class.
•
CCPA may: (i) issue safety
notices; (ii) pass orders to
recall goods, prevent unfair
practices, and reimburse
purchase price paid; and (iii)
impose penalties for false and
misleading advertisements.

Pecuniary • District: Up to Rs 20 • District: Up to Rs one  The fine is

lakh. crore.
jurisdiction
 of limited to a
• •
Commissions • State: Between Rs 20 • State: Between Rs one maximum of
lakh and up to crore and up to Rs 10
Rs one crore. crore. 30% of the price
• •
National: Above Rs one National: Above Rs 10 crore. of the product
crore. or service.

Composition • District: Headed by • District: Headed by a  National

current or former President and at least Commission
of
 Commissions
District Judge two members. Chief of the
and two •
members. • State: Headed by a commission.
• President and at least
• State: Headed by a four members. 2- Representative of the
current or former • Attorney General's
High Court National: Headed by a
Judge and at President and at least four Office as a member.
least two members. 3- Representative of the
members.
• Ministry of Interior as a
National: Headed by a

107
 current or former member.
Supreme Court Judge
4. Representative of the
and at least four
members. Ministry of Public
Health as a member.
5- Representative of the
Ministry of Agriculture,
Irrigation and Malting
as a member.
6. Representative of the
Ministry of Finance as
a member.
7. Representative of the
Ministry of Economy
as a member.
8. Representative of the
National Directorate for
Standardization as a
member.
9. Representative of the
municipality as a
member.
10. Representative of the
Chamber of Commerce
and Industry of
Afghanistan

Appointment  Selection  No provision for  In order to

Committee Selection
regulate affairs
(comprising a Committee. Central
judicial government will in support
member and appoint through
consumers, the
other officials) notification.
will high Committee
recommend
of the Supreme
members on the
Commissions.

108
 Court,
composed of the
Presidents and
the Fourth
Members, is
created.

Alternate  No provision.  Mediation cells will  No Provision.

dispute
 redressal be attached to the
District, State, and
mechanism
National
Commissions.
Penalties  If a person does  If a person does not  The fine is
not comply comply with orders limited to a
with orders of of the maximum of
the Commissions, he 30% of the price
Commissions, may face of the product
he may face imprisonment up to or service.
imprisonment three years, or a  No
between one fine not less than Rs imprisonment.
month and 25,000 extendable
three years or to Rs one lakh, or
fine between both.
Rs 2,000 to Rs
10,000, or both.
E-commerce  No provision. • Defines direct selling, e-  Define about
commerce and what
electronic service Information
provider. should
•
manufacturer,
• The central government
may prescribe rules product seller,
for preventing unfair service provider
trade practices in e- should provide.
commerce.

109
Rights of  Right to  Right to choose.  Right to
Consumers. education.
choose.  Right to safety
 Right to be
 Right to safety  Right to be assured.
 Right to be informed.
informed.  Right to be heard.
 Right to be  Right of education.
heard.  Right to health
 Right of environment.
education.  Right to boycott.
 Right to health  Right to basic
environment. needs.
 Right to
boycott.
 Right to basic
needs.

5.2 Conclusion

The Consumer Protection Bill 2018 enacted by parliament to fulfill the loopholes in Consumer
Protection Act. In Consumer Protection Act 1986 telecom and housing construction and online
shopping is missing, ecommerce which is a very important in this century since thousands of
consumers do shopping through online sites is missing ,Moreover, no specific provision for
ambassadors who do misleading advertisement in addition under the Consumer Protection Act
there is no definition for misleading advertisement Moreover, product liability of endorsers
which was missing in 1986 Act, there is no provision regarding the “unfair contract” but in the
Bill 2018 there is provision for “unfair contract”. Under the Consumer Protection Act 1986 the
definition of the “deficiency” is not broad it just covered a small part of deficiencies. under the
bill the Central Protection Council (CCPCs) was for protection of consumer’s right but it doesn’t
promote consumer’s right. Beneath the Consumer Protection Act 1986 there isn’t any provision
for Alternative dispute redressal mechanism which could help consumers speedy redressal.

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The Consumer Protection Bill seeks to provide for better protection of the interests of consumers
and for the purpose, to make provision for the establishment of consumer Authorities for the
settlement of consumer disputes and for matters connected therewith.

It seeks, inter alia, to promote and protect the rights of consumer in physical plus online world
such as, -

a) the right to be protected against marketing of goods and services which are hazardous to
life and property.
b) The 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;
c) The right to be assured, wherever possible, access to variety of goods and services at
competitive price;
d) The right to be heard and to be assured that consumers ‘interests will receive due
consideration an appropriate forum;
e) The right to seek redressal against unfair or restrictive trade practices, or unscrupulous
exploitation of consumers;
f) Right to consumer education.
Furthermore, This Bill 2018 is necessary to provide speedy and simple redressal to consumer
disputes. In India, every statute is presumed to be for achieving ideals of the preamble of the
Constitution and of the Directive Principle of State Policy laid down in part IV of the
Constitution or as an aid for their achievement. Consumer justice is a part of social and economic
justice as enunciated in the Constitution.

The Consumer Protection Bill, being a piece of socio-economic legislation should be liberally
construed so as to advance the object of the Bill and fulfil the aims to be achieved thereby.
Moreover, the purpose of the Bill as revealed in the statement of objects and reason is plain. The
aims to achieve the object of providing better protection to the consumers, who is whole lot of
the society; and to establish Regulation Central Consumer Protection Authority(CCPA).to
promote and protect rights of consumer and Mediation Cell for speedy redressal of consumer
disputes.

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The Bill 2018 add certain provision for protecting rights of consumers it added those provisions
which are missing in Consumer Protection Act,1986.The most important provisions are product
liability, consumer protection in e-commerce and unfair contracts under the product liability if
the consumer face any injury , harm or damage from defected good or deficiency in service they
can claim for compensation from manufacturer, product seller, service provider so under this Bill
if the consumer claims for compensation they should prove one of those condition which is
mentioned under the Bill 2018.

Moreover, under this Bill,2018 rights of consumers are protected in online world as well, since
protecting rights of consumer in online world is very important meanwhile in India internet
revolution and Information technology has build inroads in all walks of human life. The most
outstanding development in this area has been the geometric expansion of trade and commerce
through the Internet or web. As a result, consumers have also entered into new cyber marketing
via online shopping because sometimes consumer become the victim of fraud and misleading
advertisement in online world due to lack of recognition of rights of e-commerce in cyber-cum-
consumer protection jurisprudence in India, no appropriate, systematic, transparent and reliable
for online consumer dispute redressal mechanism. Moreover, absence od awareness and
education among consumers regarding remedy against violation of their rights in cyberspace.
Most of respondents don’t prefer to go to court for fraud in minor amount of shipping in addition
lack of screening of registration, authenticity and documentation of e-Commerce web sites that
are selling goods and products.

On the other hand, E-Banking frauds are very common in day to day transactions. However,
reporting of these minor frauds that involves small amount is very less. Most of the time, fraud
involving major amount are reported with police.as a result several respondents are silent victims
of cyber financial frauds.

It is realized that Internet has become part and parcel of our lives and people use it, cherish it and
deeply involved with it without having any awareness about its side-effects, cheatings, frauds,
offences, illegal activities, and violation of rights in the cyber marketing. And when due to
negligence of online shoppers anything wrong happens then people impose full responsibilities
on legal and judicial system.in the present research the Consumer Protection Bill 2018 is
proposed in Indian legislations which would protect consumer’s right in online world as well.

112
In addition, under this Bill There is provision of unfair contract under consumer protection bill
2018 it defined unfair contracts as” Contract between a manufacturer or trader or service
provider on one hand and a consumer on the other having such term which cause to harm
consumer’sright”.so under this provision consumers complaint for unfair contract as well.

To conclude all the Consumer Protection Bill,2018 have some important key points which is for
consumer welfare.

1. This bill will deal with Unfair Trade Practices and Restrictive Trade practices more
strictly like defective good, deficiency in service and misleading advertisements.
2. The Consumer Protection Bill,2018 give amenable and more accountability to consumers
under the Consumer Protection Act,1986 the liability of manufacturer, service provider
and product seller was just for one group of customers but under the Bill,2018 it will take
into account all consumers who face damage and harm.
3. The penalties become more stringent under the Bill 2018, which would stop
manufacturer, service provider for wrongful and unfair trade practice.
4. The Bill is giving more power to consumer since the consumer dispute to be heard by a
single organization and more important there is mediation cell for speedy resolution for
consumer disputes,
5. This Bill deals with manufacturer, product seller, service render who do wrongful act in
e-commerce and help consumer to solve their disputes and redress and they would be
able to ask for compensation.
6. This Bill take liable endorsers who do misleading advertisement, any star who endorse a
brand and mislead consumers would be liable and give penalty for their wrongful act.
7. The Bill of 2018, will form Central Consumer Protection Authority (CCPA) o promote,
protect the rights of the consumers as a class.

5.3 Suggestions

5.3.1 Suggestion for India for Protection of Consumer

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As Compare to the India some other countries like USA, UK have strict rules on manufacturers
and service providers for instance USA has stringent rules for manufacturer and product seller
who sell drugs and have very extreme punishment for the manufacturer and seller who will be
guilty. Moreover, the one of the rights of consumer which is right to be in good environment is
protecting more stringently in other countries like USA, Australia and some Europe Countries as
well.

 The government of India should follow some principles which is worldwide for
protection of consumers:
1) Provide sufficient information for consumers.
2) There should be no discrimination against part of the population based on region, income
level, culture.
3) Put up more efforts for consumer’s welfare.
4) Marketing practices should not be against society’s benefits.
These principles are very important for protection of consumers. Moreover, the researcher has
written some suggestions under this research which might be helpful.

 The Government of India should pass the Consumer Protection Bill 2018, which is made
for the benefits of consumers and protect them. As day by the the advanced technology
brought so much changes to our life its very meaningless to follow Act of 20h century
 The government of India should make stricter rules and regulations for false
advertisements which is one of the highlighted issue in India, which consumers deal with
it everyday.
 Consumer are connected to the small business more than the large businesses, India
should control both large business and small business, the concentration of India
government is more in large business and the small manufactures, product sellers and
service providers are continuing their business the way it is going on, there should be
strict rules for them so that the consumers will not face damage or harm, for instance an
owner of shopkeeper can close their shop any time they want, or they don’t sell their
product if the customer doesn’t have change with him/her, these issues exploit rights of
consumers.

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 As compare to the other countries India doesn’t look after consumer’s interest and it just
assists consumers after consumer face any harm or damage or deficiency in service.
 India should promote consumer’s rights broadly.
 The grant of compensation and damages to the customers by the
buyer Forums created the defaulter responsible towards the consumers and make them
aware that there are laws which would take action against them, if they work against
consumer’s welfare. Unless and till individuals are made awake to the laws enacted for
his or her betterment. There's an urgent need on a part of individual customers to
be more aware of their rights. Whereas the state is handily cursed for the half-hearted
implementation of those laws, consumers, too, can't brush aside their responsibility on
this front; the customers ought to fight for his or her rights and follow their
duties similarly.
 There should be prohibition for unfair trade practices, like misleading and
false advertisements and false misrepresentations, cut price sales, bait and
switch merchandising, providing of gifts and prizes with intention of not providing them,
conducting promotional contests, supply goods that don't fits safety standards
and billboard and destruction of products.
 It has been more advised that, to make consumer’s trust on the entire mechanism, the
members of the forums ought to be chosen impartially and inconsiderately of their
allegiance to political parties. equally the strength of judicial officers ought
to be enhanced consequently.

 In recent period of time it is shows that consumer facing problem against insurance
companies, hospitals, travel agencies, airlines, e-commerce, banks so there is need for
protection of rights of consumers so there should be a mechanism which would be able to
make coordination between NGO’s and consumer organizations. So that It established
that some inbuilt institutional mechanisms to redress consumer.
 The government should change their policies and start implementing laws which will
achieve the desired objects. As soon as government establish the redressal mechanism the
soon the consumers will get access to justice.
 A provision must be added for granting the consumer a right of withdrawal in respect of
online shopping within the seven working days without being required to give any
explanation of the seller has failed to provide conformation of the order within stipulated

115
 time. If the consumer has already been required to give any explanation if the seller has
failed to provide conformation of the order within stipulated time. If the consumer has
already paid the price, then he/she must be refunded.
 The customer must be given the right to cancel online contract if on delivery of
purchased goods, the goods received are not as they are shown in the advertisement or
features of goods and different from prescription. Once canceled, the buyer’s obligations
under the agreement must be extinguished and the seller must be required to refund all
consideration paid by the buyer within 30 days.
 Well framed procedure is required for admission of complaint by online consumers. As
the nature of disputes is different in physical commerce from digital commerce, therefore,
procedure given in section 12 and (1) (e) of the Consumer Protection Act,1986 is not
appropriate for disputes in online world from the perspective of time, speed and advanced
technology. The Consumer Protection Act, 1986 is on the lines of Civil Procedure
Code,1908 which it self is very slow. So if the government enact the Consumer
Protection Bill,2018 it will help consumer’s online disputes to be sorted out.
 Its important to mention here that online web-stores of various brands have no connection
with their outlets in physical market. Online market has emerged as a different segment
of economy. For example, if a person has purchased a pant from online and she/he want
to change the sweater in its size color or it is defective, then, physical outlet of
‘sportking’ don’t entertain any complaint. It is suggested that with complete proof of
billing interaction of online consumer with physical store of that brand must be allowed.
It will boost trust of consumers in online shopping.
 The healthcare service has been removed from the services under Consumer Protection
Bill 2018. It has been removed from the list of services, it is believed that this change has
been brought to the Bill since the law has been used against the medical profession so the
group of medical professionals were against it so because of that it has been removed.
However, the main purpose of the bill is to protect rights of consumer in overall
removing of healthcare from services might increase medical negligence. The health care
services should be under Consumer Protection Bill, since the main objective of this Bill is
protection of consumer, a health service taker is also a consumer.

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5.3.2 Suggestions for Afghanistan for Consumer Protection

The consumer protection laws in Afghanistan is very less and insufficient the rights of consumer
are not protected in Afghanistan well. There are some suggestions that might help Afghanistan to
protect rights of the consumers.

 The government of Afghanistan should concentrate in implementation of Consumer

Protection Act,2016.
 The government of Afghanistan should make some stringent rules and laws for
consumer’s welfare and interest.
 There are extreme loopholes and lacunas in Afghanistan Consumer Protection Act,2016
like missing of mediation cell, product liability of endorser, some rights of consumers are
missing as well like right to be heard, right to be in good environment, right to be
informed, right to choose, so the government should take action and provide provisions
for these important matters.
 The Government of Afghanistan ought to create and implement rules
of penalization additional severe in order that manufacturer and product seller and service
provider consider before adopting fraudulent practices. Furthermore, redress
procedure ought to be created additional logical, straightforward enough to be understood
by a large range of customers. any procedures shall thus have designed as
to have simple handling and fast disposal of cases.

 Nowadays online shopping has become current shopping style in Afghanistan.

Educated category began to get product and avail services through online services.
However, there's no sufficient regulation in this regard. it is therefore, it's become
necessary to create the amendment within the Consumer Protection Act,
2016 concerning online shopping and to stop the exploitation of the consumer at massive.
 The government should provide seminars for consumer awareness regarding their rights
and assist consumers to get education about the laws that are for their protection.
 Consumers in Afghanistan are one of the most group of people whose rights exploited
everyday, but still due to insufficient laws the consumer protection mechanism is fail in

117
 there. So if the government make strict provisions for awarding compensation and
damages to consumers whose rights has been exploited, the manufacturers, product
sellers and service providers will concentrate to provide better products and rend good
service for consumers.
 The government of Afghanistan should make a policy for enacting of a new Act for
consumer protection or should bring many amendments to Consumer Protection
Act,2016.
 It should find the area of exploitation of rights of consumer and try to make remedies for
it. like unfair trade practices, restrictive trade practices.
 There should be Visual Programs for Presenting consumer Education.
Majority of the members are unaware of the consumer protection measures and areas of
consumer exploitations. However, as far because the extent of awareness regarding the
Consumer Protection Act is taken into account, they're aware only to the smallest
amount extent. Furthermore, majority of the members having school level education
and who belongs to rural areas have less awareness of these legislative measures and
areas of consumer exploitations. Thus the organizations can use effective visual
tools like slide show, short films, to make awareness among people.
 Financial assessment should be provided for consumers who file case of exploitation.
 There should be no charges for consumer litigation.

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Statues:
 Consumer Protection Act,1986
 Consumer protection Bill,2018
 Consumer Protection Act,2016
 Sales of Goods Act,1930
 Food Safety and Standards Act, 2006
 The Constitution of India


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