CONSUMER PROTCTION LAW

Dr. SHAKUNTALA MISRA NATIONAL REHABILITATION UNIVERSITY

Lucknow

Faculty of Law

PROJECT TOPIC ON

“AWARENESS AND PROTECTION OF CONSUMER INTREST “

For

COURSE ON ‘CONSUMER PROTECTION LAW’

Submitted by

VAISHALI PATEL
154140057

Academic Session: 2019-20

Under the Guidance of

Mr. BHANU PRATAP SINGH

Faculty for CONSUMER PROTCTION Law

Faculty of Law

Dr. Shakuntala Misra National Rehabilitation University

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 CONSUMER PROTCTION LAW

ACKNOWLEDGMENT
I,VAISHALI PATEL student of B.Com LL.B(Hons*) 9th Semester has made this
assignment under the guidance ship of Bhanu pratap singh Sir, who is my subject
teacher for the CONSUMER PROTCTION Law. I would like to express my special
thanks of gratitude to her who gave me the golden opportunity to do this wonderful
project on the topic AWARENESS AND PROTECTION OF CONSUMER
INTREST, and also help me out with problems, which also helped me in doing a
lot of Research and I came to know about so many new things I am really thankful
to them.
I would also like to thank my friends for their constant support and help every
time.

Thanking You.
VAISHALI PATEL

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 CONSUMER PROTCTION LAW

CONTENTS IN BRIEF
CONTENTS PAGENO.

1. Introduction 3
2. Meaning of Consumer 3
3. Concept 4
4. Need for Consumer Protection 5-6
5. Rights of Consumer 6
6. Responsibilities of Consumer 7-9
7. Laws to protect interest of Consumers 10-11
8. Consumer Protection Act, 2019 12-17
9. Other means of Consumer Protection 18
10. Awareness programmes 18
11. Jaago Grahak Jaago Programme
12. Consumer Online Resource and 19-21
Empowerment Centre (CORE)
13. Conclusion 24
14. Biblography 25

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INTRODUCTION

We buy a variety of goods and services in our day-to-day life. Whatever we buy we pay for it
and derive satisfaction from its consumption and use. But sometimes we do not feel satisfied
with the product we buy. This may be on account of poor quality of the product, overcharging by
the shopkeeper, lower quantity of contents, misleading advertisement, and so on. Should we
allow these practices to continue? Obviously not; then is there any remedy for such
malpractices? The answer lies in the concept and practice of consumer protection, the rights and
responsibilities of consumers, legal provisions and mechanism for settlement of consumer
grievances.

MEANING OF CONSUMER

A consumer is a person who consumes or uses any goods or services.

Goods may be consumables like wheat flour, salt, sugar, fruit etc. or durable items like
television, refrigerator, toaster, mixer, bicycle etc. Services refer to items like electricity, cooking
gas, telephone, transportation, film show etc. Normally, it is the consumption or use of goods and
services that makes the person to be called as ‘consumer’. But in the eyes of law, both the person
who buys any goods or hires any service for consideration (price) and the one who uses such
goods and services with the approval of the buyer are
termed as consumers. For example, when a father buys apple for his son and the son consume
them, then the father as well as his son are treated as consumers. In other words, even the buyer
of goods and services whether he uses them himself or purchases them for consumption or use
by some other person(s) is treated as consumer in the eyes of law. However, a person who buys
goods for resale (like wholesaler, retailer, etc.) or for any commercial purpose is not treated as
consumer.

CONCEPT OF CONSUMER PROTECTION

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Consumer protection means safeguarding the interest and rights of

consumers.

In other words, it refers to the measures adopted for the protection of consumers from
unscrupulous and unethical malpractices by the business and to provide them speedy redressal of
their grievances. The most common business malpractices leading to consumer exploitation are
given below.
(a) Sale of adulterated goods i.e., adding something inferior to the product being sold.
(b) Sale of spurious goods i.e.,selling something of little value instead of the real product.
(c) Sale of sub-standard goods i.e., sale of goods which do not confirm to prescribed quality
standards.
(d) Sale of duplicate goods.
(e) Use of false weights and measures leading to underweight.
(f) Hoarding and black-marketing leading to scarcity and rise in price.
(g) Charging more than the Maximum Retail Price (MRP) fixed for the product.
(h) Supply of defective goods.
(i) Misleading advertisements i.e., advertisements falsely claiming a product or service to be of
superior quality, grade or standard.
(j) Supply of inferior services i.e., quality of service lower than the quality agreed upon.
The above instances show the exploitation of consumers in the context of goods and services. In
a democratic nation like India, should we allow this to happen? So the measures adopted by the
government or non-government organizations (NGOs) for safeguarding the interests of the
consumers constitute consumer protection.

Examples of Consumer Exploitation in India

● The after sales service provider of the television set charged Rs. 200 as service charge
though he repaired the set within the warranty period.

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● The tickets issued to different passengers on the same day for the same journey showed
the same seat number
● Penalty of Rs. 50 was charged by SBI after issuing the chequebook to the customer
showing that the balance available in the account was less than the minimum required
balance for issue of chequebook.
● The supply of cooking gas cylinder to the consumers is found to be underweight.

NEED FOR CONSUMER PROTECTION

The necessity of adopting measures to protect the interest of consumers arises mainly due to the
helpless position of the consumers. There is no denying fact that the consumers have the basic
right to be protected from the loss or injury caused on account of defective goods and deficiency
of services. But they hardly use their rights due to lack of awareness, ignorance or lethargic
attitude. However in view of the prevailing malpractices and their vulnerability there to, it is
necessary to provide them physical safety, protection of economic interests, access to
information, satisfactory product standard, and statutory measures for redressal of their
grievances. The other main arguments in favour of consumer protection are as follows:
(a) Social Responsibility
The business must be guided by certain social and ethical norms. It is the moral responsibility of
the business to serve the interest of consumers. Keeping in line with this principle, it is the duty
of producers and traders to provide right quality and quantity of goods at fair prices to the
consumers.
(b) Increasing Awareness
The consumers are becoming more mature and conscious of their rights against the malpractices
by the business.There are many consumer organizations and associations who are making efforts
to build consumer awareness, taking up their cases at various levels and helping them to enforce
their rights.
(c) Consumer Satisfaction
Father of the Nation Mahatma Gandhi had once given a call to manufactures and traders to “treat
your consumers as god”. Consumers’ satisfaction is the key to success of business. Hence, the
businessmen should take every step to serve the interests of consumers by providing them quality
goods and services at reasonable price.

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(d) Principle of Social Justice

Exploitation of consumers is against the directive principles of state policy as laid down in the
Constitution of India. Keeping in line with this principle, it is expected from the manufacturers,
traders and service providers to refrain from malpractices and take care of consumers’ interest.
(e) Principle of Trusteeship
According to Gandhian philosophy, manufactures and producers are not the real owners of the
business. Resources are supplied by the society. They are merely the trustees of the resources
and, therefore, they should use such resources effectively for the benefit of the society, which
includes the consumers.
(f) Survival and Growth of Business
The business has to serve consumer interests for their own survival and growth. On account of
globalization and increased competition, any business organization, which indulges in
malpractices or fails to provide improved services to their ultimate consumer, shall find it
difficult to continue. Hence, they must in their own long run interest, become consumer oriented.
RIGHTS OF CONSUMERS
John F, Kennedy, the former USA President, in his message to consumer had given six rights to
consumers. These rights are (i) right to safety, (ii) right to be informed, (iii) right to choose, (iv)
right to be heard, (v) right to redress and (vi) right to represent. These rights had paved the way
for organized consumer movement in the USA and later it spread all over the world. In India, the
Protection Act, 1986 has also provided for the same rights to consumers. Let us have a brief idea
about these rights of consumers.
(a) Right to Safety
It is the right of the consumers to be protected against goods and services, which are hazardous
to health or life. For example, defective vehicles could lead to serious accidents. The same is true
of electrical appliances with sub-standard material. Only recently, there were mass protests and
boycott of soft drinks due to presence of hazardous pesticides beyond permissible limits. Thus,
right to safety is an important right available to the consumer, which ensures that the
manufacturers shall not produce and sell sub-standard and dangerous products.
(b) Right to be Informed
The right to be informed is an important component of consumer protection. The consumer must
be provided with adequate and accurate information about quality, quantity, purity, standard and

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the price of the goods & services. Now-a-days the manufacturers provide detailed information
about the contents of the product, its quantity, date of manufacturing, date of expiry, maximum
retail price, precautions to be taken, etc. on the label and package of the product. Such
information helps the consumers in their buying decision and use of the product.
(c) Right to Choose
The right to choose provides that the consumer must be assured, whenever possible, access to a
variety of goods and services at competitive prices. If the market has enough varieties of
products at highly competitive prices, the buyers have an opportunity of wide selection.
However, incase of monopolies like railways, postal service and electricity supply etc. it implies
a right to be assured of satisfactory quality of service at a fair price.
(d) Right to be Heard
The rights to safety, information and choice will be frivolous without the right to be heard. This
right has three interpretations. Broadly speaking, this right means that consumers have a right to
be consulted by Government and public bodies when decisions and policies are made affecting
consumer interests. Also, consumers have a right to be heard by manufactures, dealers and
advertisers about their opinion on production, marketing decisions and any grievances of the
consumers. Now-a-days, most of the top manufacturers and firms have set up consumer service
cells to attend to consumers’ complaints and take appropriate steps for their redressal. Thirdly,
consumers have the right to be heard in legal proceedings in law courts dealing with consumer
complaints.
(e) Right to Seek Redressal
The consumers have been given the right of redressal of their grievances relating to the
performance, grade, quality etc. of the goods and services. If required, the product must be
repaired / replaced by the seller/ manufacturer. The Consumer Protection Act has duly provides
for a fair settlement of genuine grievances of the consumers. It has also set up a proper
mechanism for their redressal at district, state and national levels.
(f) Right to Consumer Education
It means the right to receive knowledge and skill to become informed consumer. In this direction
the consumer associations, educational institutions and the policy makers can play an important
part. They are expected to impart information and knowledge about

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(i) the relevant laws, which are aimed at preventing unfair trade practices, (ii) the ways and
means which dishonest traders and producers may adopt to deceive the consumers,
(iii) insistence on a bill or receipt at the time of purchase, and
(iv) the procedure to be followed by consumers while making complaints. Effective consumer
education leads to an increased level of consumer awareness and help them to enforce their
rights more effectively, and protect themselves against fraudulent, deceitful and grossly
misleading advertisement, labeling, etc.
OTHER CONSUMER RIGHTS.
1) Right to Basic Needs
Every consumer must be assured of the availability of items of basic necessity. That means the
basic needs of consumers such as drinking water, food items, pure air; transport, electricity,
health and education services must be fulfilled.
2) Right to healthy environment
In recent years, greater attention is being paid to this right because of deterioration of ecological
balance, deforestation, and environmental pollution. Therefore this is the right to be protected
against environmental pollution so as to enhance the quality of life.

RESPONSIBILITIES OF CONSUMERS
Consumer responsibilities include the following:
(a) Be quality conscious
To put a stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty
of every consumer to be conscious of the quality of product they buy. They should look for the
standard quality certification marks like ISI, Agmark, FPO, Woolmark, Eco-mark, Hallmark etc.
while making the purchases.

(b) Beware of misleading advertisements

The advertisement often exaggerates the quality of products. Hence, the consumers should not
rely on the advertisement and carefully check the product or ask the users before making a
purchase. Incase there are discrepancies, the same should be brought to the notice of the sponsors
and the appropriate authority, if need be.
(c) Responsibility to inspect a variety of goods before making selection

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The consumer should inspect a variety of goods before buying the goods and service. For this
purpose he/she should compare their quality, price, durability, after sales service etc. This would
enable the consumers to make the best choice within the limit of their own resources.
(d) Collect proof of transaction
The consumer should insist on a valid documentary evidence (cash memo/invoice) relating to
purchase of goods or availing of any services and preserve it carefully. Such proof of purchase is
required for filing a complaint. In case of durable goods the manufactures generally provide the
warrantee/guarantee card along with the product. It is the duty of consumers to obtain these
documents and ensure that these are duly signed, stamped and dated. The consumer must
preserve them till the warrantee/
guarantee period is over.
(e) Consumers must be aware of their rights
The consumers must be aware of their rights as stated above and exercise them while buying
goods and services. For example, it is the responsibility of a consumer to insist on getting all
information about the quality of the product and ensure himself/ herself that it is free from any
kind of defects.
(f) Complaint for genuine grievances
As a consumer if you are dissatisfied with the product/services, you can ask for redressal of your
grievances. In this regard, you must file a proper claim with the company first. If the
manufacturer/company does not respond, then you can approach the forums. But your claim
must state actual loss and the compensation claim must be reasonable. At no cost fictitious
complaints should be filed otherwise the forum may penalize you.

(g) Proper use of product/services

It is expected from the consumers that they use and handle the product/services properly. It has
been noticed that during guarantee period, people tend to reckless use of the product, thinking
that it will be replaced during the guarantee period. This practice should be avoided. Apart from
the responsibility enumerated above, the consumers should be conscious of their duty towards
other consumers, society and ecology and make responsible choice. In other words, their

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purchases and consumption should not lead to waste of natural resources and energy and
environmental pollution.

LAWS TO PROTECT INTERESTS OF CONSUMERS

Government of India has enacted more than 30 laws to improve the lot of consumers. Some of
these laws are summarized below.
1) The Contract Act, 1982.
This law prescribes the conditions in which promises made by parties to a contract (buyers and
sellers) shall be legally binding on each other. It also lays down the remedies available to one
party if the other party fails to honor his promise.
2) The Sales of Goods Act, 1930.
It provides some safeguards to buyers of goods in case goods do not fulfill the express or
implied conditions and warranties. The seller’s title to goods is not defective, the goods
correspond with description or sample of the goods of the right quality or fitness are the express
warranties.
3) The Essential Commodities Act, 1955.
This law seeks to ensure equitable distribution of essential commodities at reasonable price to
consumers. The Central Government is empowered to regulate production, supply, distribution,
storage, transport and prices of commodities, which are declared essential under this law.
4) The Prevention of Food Adulteration Act, 1954.
It was enacted to eradicate rampant evil of food adulteration and to ensure purity in food articles
so as to maintain public health.
5) The MRTP Act, 1969.
It was enacted to protect consumers from monopolistic, restrictive and unfair trade practices.
6) The Trade and Merchandise Marks Act, 1958.
It seeks to provide for the registration and better protection of trademarks and to prevent the use
of fraudulent marks on merchandise. It helps to protect consumers against products. In addition
to the above, the following laws also help to protect consumers:
1. Drug Control Act, 1950
2. Agricultural Products (Grading and Marketing) Act, 1937
3. Industries (Development and Regulation) Act, 1951
4. The Standards of Weights and Measures Act, 1956

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5. Prevention of Black-marketing & Maintenance of Essential Supplies Act, 1980

6. Bureau of Indian Standards Act, 1986
7.The Air (Prevention and Control of Pollution) Act, 1981.
8.The Water (Prevention and Control of Pollution) Act, 1974
9. The Indian Penal Code, 1861
10. The Hire- Purchase Act, 197

CONSUMER PROTECTION ACT 2019

Introduction
The Consumer Protection Act 2019 is a social welfare legislation, which was enacted as a result
of widespread consumer protection movement. The main object of the legislature in the
enactment of this act is to provide for the better protection of the interests of the consumer and to
make provisions for establishment of consumer councils and other authorities for settlement of
consumer disputes and matter therewith connected.
How act was enacted
The act was passed in Lok Sabha on 9th December, 1986 and Rajya Sabha on 10th December,
1986 and assented by the President of India on 24th December, 1986 and was published in the
Gazette of India on 26th December, 1986 and it came into force from 1 July, 1987.This act was
enacted in the 37th year of the Republic of India and was amended from time to time in the
following years i.e. 1991, 1993 and 2002.and it was totally amended in 2019.

Salient Features of Consumer Protection Act 2019

• Broadening the definition of “consumer”

The definition of “consumer” has been expanded to include persons who engage in offline or
online transactions through electronic means or by tele-shopping or direct selling or multi-level
marketing.1 In our transactions concluded in all media in any case covered by CPA 1986.

The definition now provides consumers with a remedy in case of multi-level marketing. Thus,
the seller at each level of multi-level marketing can be exposed to liability under CPA 2019 and
not restricted to only the manufacturer of the product but all entities involved at various stages of
production and marketing.

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When services are provided for free, the person availing the service will not be considered as a
consumer. Whether or not the service being provided is free is a question of fact and will have to
be evaluated on case to case basis.

• E-commerce

E-commerce has been defined as buying or selling of goods or services including digital products
over digital or electronic network.2 The central government has been authorized to take measures
and make rules to prevent unfair trade practices in e-commerce.3 In case of products being sold
through online platforms, without charging any fees separately amounts to providing services
needs to be ascertained. It is not clear whether off-shore e-commerce would also get covered and
eventual enforcement of CPA 2019 qua such entities.

• New grounds to file complaints

While the provisions of CPA 1986 prescribed six (6) major grounds to file complaints4, CPA
2019 has increased the count to seven (7)5, and also substantially modified one of the existing
grounds to file complaints as provided under Section 2(c)(i) of CPA 1986. The two key changes
are:

1. Introduction of Unfair Contracts & expansion of Unfair Trade Practices

In the previous legislation, a complaint could be filed only if an unfair trade practice or a
restrictive trade practice was adopted by any trader or service provider. Now “unfair contract”
has also been added which further broadens the ground to file complaints and allows consumers
to challenge contracts which are unfair, unilateral and unreasonable. Unfair contract has been
defined to include contracts between a manufacturer or trader or service provider on one hand,
and a consumer on the other, having such terms which cause significant change in the rights of
such consumer, including the following, namely:—
1. requiring manifestly excessive security deposits to be given by a consumer for the
performance of contractual obligations; or

2. imposing any penalty on the consumer, for the breach of contract thereof which is wholly
disproportionate to the loss occurred due to such breach to the other party to the contract; or

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3. refusing to accept early repayment of debts on payment of applicable penalty; or entitling a

party to the contract to terminate such contract unilaterally, without reasonable cause; or

4. permitting or has the effect of permitting one party to assign the contract to the detriment of
the other party who is a consumer, without his consent; or

5. imposing on the consumer any unreasonable charge, obligation or condition which puts such
consumer to disadvantage.

The above provisions would directly impact the financial institutions such as banks, as the apex
court has already stated that the Banks also get covered under the Act.8 This would specifically
take into account contracts entered with banks, e-commerce platforms where parties are not left
with any option but to agree to the standard terms to avail the services. With such a broad
subjective definition, it remains to be seen how courts would interpret in case of online contracts.

2. Expanding definition of “unfair trade practice”

While CPA 1986 had listed six (6) types of unfair trade practices, three (3) types of additional
unfair trade practices have now been added to the list which are as follows:
1. failure or non-issuance of a bill or a cash memo;

2. refusal to take back or withdraw defective goods or withdrawal or discontinuance of deficient

services or refusal to refund the consideration amount paid within the period as stipulated in
the bill or cash memo or receipt or in the absence of such stipulation, refusal to withdraw or
refund goods or services within thirty (30) days; and

3. disclosure of consumer’s personal information to any other person unless such disclosure is
made in accordance with the provisions of any law for the time being in force or in public
interest.

The provision fails to give any clarity whether information can be shared if consent is taken from
the consumers. The reliance will have to be placed on prevalent data protection law. The current
data protection law in India does not require any specific compliance for data sharing in case the
information is not in the nature of sensitive information i.e. relating to (i) passwords; (ii)
financial information; (iii) physical, physiological and mental health conditions; (iv) sexual
orientation; (v) medical records and history; (vi) biometric information; (vii) any detail relating
to the above, as provided to a body corporate for providing services; and (viii) any of the

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information received under the above by a body corporate, for processing or storing data under
lawful contract, or otherwise.

• Product Liability

There was no separate legislation governing ‘product liability’ in India, though it was addressed
under CPA 1986, if parties were included within the ambit of ‘consumer’. Insertion of “Product
Liability” as a separate chapter in CPA 2019 and a new ground for filing a complaint has been
one of the most significant additions to the act

Section 2(35) of CPA 2019 allows a person to make a claim of product liability against such
manufacturer, seller or service provider for such defective products. Product liability means the
responsibility of a product manufacturer or product seller, of any product or service, related to
the product to compensate for any harm caused to a consumer by such defective product
manufactured or sold or by deficiency in services relating to the product.

Who can be made liable:

CPA 2019 has gone a step forward and defined a product manufacturer13, product seller14 and
product service provider15 to provide clarity on who can be made liable for an action under
Chapter VI of CPA 2019.

Ingredients to initiate product liability action:

1. Product manufacturer will be liable if product contains a manufacturing defect, or defective in

design; or there is a deviation from manufacturing specifications; or does not conform to the
express warranty; or fails to contain adequate instructions of correct usage to prevent any harm
or any warning regarding improper or incorrect usage. Absence of negligence or fraud in
making express warranty of a product cannot be pleaded as a defence.
2. Product seller who is not a product manufacturer may be held liable if
(a) he has exercised substantial control over the designing, testing, manufacturing, packaging or
labelling of a product that caused harm; or
(b) he has altered or modified the product and such alteration or modification was the substantial
factor in causing the harm;

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(c) he has made an express warranty of a product independent of any express warranty made by a
manufacturer and such product failed to conform to the express warranty made by the product
seller which caused the harm;
(d) the product has been sold by him and the identity of product manufacturer of such product is
not known, or if known, the service of notice or process or warrant cannot be effected on him or
he is not subject to the law which is in force in India or the order, if any, passed or to be passed
cannot be enforced against him; or (e) he failed to exercise reasonable care in assembling,
inspecting or maintaining such product or he did not pass on the warnings or instructions of the
product manufacturer regarding the dangers involved or proper usage of the product.
3. Product service provider may be liable if (a) the service provided was faulty or imperfect or
deficient or inadequate in quality, nature or manner of performance which is required to be
provided by or under any law for the time being in force, or pursuant to any contract or
otherwise; or (b) there was an act of omission or commission or negligence or conscious
withholding any information which caused harm; or (c) the service provider did not issue
adequate instructions or warnings to prevent any harm; or (d) the service did not conform to
express warranty or the terms and conditions of the contract.
CPA 2019 while defining a ‘product’ has specifically excluded human tissues, blood, blood
products and organs. CPA 2019 also lists down certain exceptions to “product liability” action,
in circumstances where the products have been misused, or if the product being purchased by the
employer for use at the workplace did not adhere to installation warnings or instructions, or if the
nature of the product is such that the user should have known the associated dangers, etc.
• Introduction of Central Consumer Protection Authority as the new regulator
Section 10 of CPA 2019 seeks to establish a central authority, the Central Consumer Protection
Authority (“CCPA”) to promote, protect, and enforce the rights of consumers qua misleading
advertisements and unfair trade practices as a class. One of the primary reasons for establishing
CCPA is to fill an institutional void in the existing regulatory regime. An investigative wing is
envisaged to be formed under the aegis of CCPA, which shall carry out inquiries and
investigations in matters relating to consumer rights, unfair trade practices and misleading
advertisements.
Under the provisions of CPA 2019, CCPA is mandated to carry out the following functions:

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1. inquiring into violations of consumer rights, investigating and launching prosecution at the
appropriate forum;

2. passing orders to recall goods or withdraw services that are hazardous, reimbursement of the
price paid, and discontinuation of the unfair trade practices, as defined under the relevant
provisions of CPA 2019;

3. issuance of directions to the concerned trader/ manufacturer/ endorser/ advertiser/ publisher to

either discontinue a false or misleading advertisement, or modify it;

4. imposition of penalties, and;

5. issuance of safety notices to consumers against unsafe goods and services and guidelines to
prevent unfair trade practices

6. spread and promote awareness and research on consumer rights and

7. recommend adoption of international covenants and best international practices on consumer

rights to ensure effective enforcement of consumer rights

The district collectors have also been empowered to conduct such investigations that affect
interests of consumer as a class under CPA 2019. They can investigate or inquire at the instance
of a complaint or on a reference made by CCPA. The district collectors have also been provided
powers akin to CCPA’s but unlike CCPA they cannot initiate action suo moto. The establishment
of a central authority and initiating action as a class comes as an additional mode of relief which
can be exercised along with individual consumers filing complaints to address their grievances
thereby having two parallel proceedings.

• False or misleading advertisements

CCPA has also been empowered to take actions against false or misleading advertisements.
CCPA can impose a penalty of up to INR1 million, and up to INR 5 million for every subsequent
violations. It is important to note that such penalty can be imposed on endorsers too, thereby
bringing actors/actresses in the scope of penalty. However, the endorser would be exempted
from any liability if s/he establishes that they undertook due diligence to verify the veracity of
the claims before endorsing the same. Therefore, endorsers/actors/celebrities will also have to
conduct a thorough due diligence/ research before signing up for any advertisements.

• Deletion of Healthcare from definition of services

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The CPA 2019 in its current form does not explicitly specify healthcare in the list of services
listed in the definition of ‘service’, even though the earlier version of the consumer protection
bill as passed by the Lok Sabha had included it. An amendment was recently introduced in the
Parliament to remove healthcare from the list of services (“Healthcare Amendment”) following
stiff opposition from the medical fraternity which expressed apprehension that the CPA 2019
would be misused against them.

• Increase in the pecuniary jurisdiction of the commissions

The pecuniary jurisdiction of all three commissions have been raised under CPA 2019. The
changes are reflected in the table below:

Sr. No. Commissions CPA 1986 CPA 2019

1. District Upto USD 28,000 Upto USD 1,40,000

2. State USD 28000-1,40,000 USD 1,40,000- USD

14,00,000

3. Central USD 1,40,000 or more Above USD 14,00,000

– 14,00,00,00

The increase in the pecuniary jurisdiction of all three commissions is an encouraging step as it
should attract lesser number of claims in appellate commissions to an extent, thereby ensuring
swifter disposal of cases,

• Mediation

The CPA 2019 now provides for settlement of disputes by way of mediation in case there is a
possibility of settlement at the stage of admission of complaint or at any later stage, if acceptable
to both parties. A mediation cell will be attached to each district, state and National Commission
and its regional Benches for quick resolution.

• Penalties

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The quantum of monetary penalty, in case of defiance of any order of commissions, have also
been raised under the provisions of CPA 2019. The commissions can now impose fines ranging
from USD 350 to USD 1400, whereas earlier they could have only imposed fines in the range of
USD 28- USD 140.

• Miscellaneous Provisions

Apart from the afore-mentioned changes, CPA 2019 has introduced ADR mechanisms to resolve
the disputes. Mediation cells have been attached to all the three commissions. Matters shall be
referred to mediation cells if the parties’ consent to it. In event of failure to settle the dispute, the
respective commissions shall continue to adjudicate the dispute. CPA 2019 now allows
consumers to file complaints in the district commission where they reside or work for gain.

OTHER MEANS OF CONSUMER PROTECTION

The following are the various ways and means of consumer protection followed in India.
(a) Lok Adalat
Lok Adalats are the effective and economical system for quick redressal of the public grievances.
The aggrieved party can directly approach the adalats with his grievance, and his issues are
discussed on the spot and decisions are taken immediately. The consumers may take the
advantage of this system to solve their problems. Cases of electricity billing, telephone billings,
road accidents etc. can be taken up in Lok Adalat for spot settlement. Infact, Indian Railways,
Mahanagar Telephone Nigam Limited and Delhi Vidyut Board hold Lok Adalat regularly to
settle user’s grievances on the spot.
(b) Public Interest Litigation
Public Interest Litigation (PIL) is a scheme under which any person can move to the court of law
in the interest of the society. It involves efforts to provide legal remedy to un-represented groups
and interests. Such groups may consist of consumers, minorities, poor persons, environmentalists
and others. Any person or organization, though not a party to the grievances, can approach the
court for remedial action in case of any social atrocities.
(c) Consumer Protection Councils (CPC)
The Consumer Protection Act 2002, was amended in 2019 which provides for setting up of
Consumer Protection Council at district, state and national level for promotion and protection of

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the rights of the consumers as laid down in Section 6 of the Act. The councils are required to
give wide publicity to the rights of consumers, the procedures for filling complaints by them and
provide inputs to consumer movement in the country.
(d) Consumer Organizations
Consumer organizations have been active all over the world to promote and protect consumer
interests. A number of such organizations have also been set up in recent years in different parts
of India. It is felt that neither it is possible to discipline all members of the business community
through moral sanctions and a code of fair business practices nor can administrate orders and
legislative provisions to ensure consumer protection without the active involvement of consumer
associations. Now with an increasing number of consumer organizations involved in consumer
protection, the consumer movement is getting a foothold in India and helping individuals to seek
quick and adequate redressal of their grievances. Look at the box for some of such consumer
organizations.
Consumer Organizations
Some of the important Consumer Organizations that have been playing an active role in taking
up consumer cause are:
● CERC (Consumer Education and Research Centre), Ahmedabad
● VOICE (Voluntary Organization in the Interest of Consumer Education), New Delhi
● CGSI (Consumer Guidance Society of India), Mumbai
● CAG (Consumer Action Group), Chennai
● CUTS (Consumer Unity and Trust Society), Jaipur
● Common Cause, New Delhi
● Consumer Education Centre, Hyderabad
● Karnataka Consumer Service Society, Bangalore
● Kerela State Consumers Coordination Committee, Cochin
These organizations are collecting data on different products and testing them, investigating into
the problems of consumers, publishing and distributing brochures and journals, organizing
consumer awareness programmes, filing complaints, suits and writ petitions on behalf of the
consumers, etc.
(e) Consumer Welfare Fund

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The government has created a consumer welfare fund for providing financial assistance to
strengthen the voluntary consumer movement in the country particularly in rural areas. This fund
is mainly used for setting up facilities for training and research in consumer education, complaint
handling, counseling and guidance mechanisms, product testing labs, and so on.

AWARENESS PROGAMMES
To increase the level of awareness among the consumers the Government of India has initiated
various publicity measures.
1.PUBLICATIONS-
The Ministry of Civil Supplies has brought out a number of booklets/brouchers to educate
consumers. A quarterly journal ‘UPBHOKTA JAGRAN’ has been started
2.NATIONAL AWARDS-
The Ministry of Civil Service has instituted two national awards- ‘NATIONAL YOUTH
AWARDS’ AND ‘NATIONAL AWARD ON CONSUMER PROTECTION’. The first award is
for the persons in the age group of 15-35 doing outstanding work in the field. The second award
is for Voluntary consumer organizations doing outstanding work in the field.
3.AUDIO-VEDIO MEASURES-
Doordarshan is telecasting fortnightly programmed ‘SANRAKSHAN UPBHOKTA KA’ and
several other programmes to educate consumers.
4.CONSUMER DAY-
Consumer Day is observed every year on 15th March. Exhibitions, seminars etc. are held on this
date to educate the consumers of their rights.
JAAGO GRAHAK JAAGO PROGRAMME(WAKE UP CONSUMER)
DCD initiated a multi - media campaign for the Department of Consumer Affairs to generate
awareness on consumer rights. The campaign features the popular programme “Jaago Grahak
Jaago” which has done great public service. The programme has apprised consumers of the tricks
used by mischievous persons, traders, businessmen and service providers to cheat them.
The campaign also informs consumers about product safety, product defects, food adulteration,
and environmental hazards. This programme has been on air since May 2005. In addition,
several public service advertisements on consumer rights are telecast from eight Kendras in eight
States in an equal number of languages and dialects. Realising the need for empowering

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consumers, the government has approved a scheme of Rs 409 crore during the 11th five-year
Plan on the awareness campaign aimed at helping the emergence of consumers who irrespective
of age, socio-economic class or gender are empowered enough to make free, fair, and informed
choices of products or services. Under its "Jago Grahak Jago" initiative, the department has tried
to reach consumers through print advertisements in national as well as regional newspapers, TV
spots in Doordarshan and private channels, audio spots in All India Radio and private FM
channels.

CONSUMER ONLINE RESOURCE AND EMPOWERMENT

CENTRE (CORE)

In 2005, the government set up the Consumer Online Resource and Empowerment Centre
(CORE) - External website that opens in a new window to provide fast and convenient grievance
redressal services as well as consumer resources to the citizens of India. The Consumer
Coordination Council - External website that opens in a new window, a premier organization in
the field of consumer movement of India, recommended the setting-up of the CORE Centre.

With a view to promote Consumer Sovereignty, CORE works in the interest of consumers to
resolve their complaints and avoid unnecessary litigation for brands. It is both an effective one
point source for complaint redressal as well as a nodal agency to protect the interests of Indian
Consumers.

NATIONAL CONSUMER HELPLINE

Moreover, a National Toll Free Number has been provided to offer guidance to citizens on all
consumer related issues. One may dial now, for more information about consumer courts,
consumer organizations and procedure for redressal.

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CONCLUSION

The success of the consumer movement in India depends on the vigilance of the consumer with
regard to their rights and responsibilities. As consumers become more conscious of their rights,
they are able to voice their concerns better. As is evident, CPA 2019 has made several changes to
the erstwhile CPA 1986. CPA 2019 has widened the reach of consumer protection regime in
India. The changes made vide CPA 2019 seem to further empower consumers by leveraging
responsibilities not only on their counterparts, i.e., the sellers, manufacturers, service providers,
but also the endorsers of such products. It also attempts to address the issues that were not
comprehensively touched upon by CPA 1986, such interests of consumers as a class, etc.

CPA 2019 has also attempted to ease and fasten the process of consumer disputes resolution by
increasing the pecuniary jurisdiction of the commissions, attaching mediation cells, increasing
the members of the commissions, imposing higher penalties etc.

The ramifications of CPA 2019 cannot be precisely gauged beforehand, as many new concepts
have been introduced. However, what can definitely be said is that everyone involved in a
transaction, other than the consumer, will have to be more careful, and cautious than ever before

It is very difficult to stop exploitations by any consumer single handedly. The consumers have to
collectively act against such malpractices and take the help of consumer organizations and the
government agencies. Infact, consumer protection essentially needs consumer awareness,
education and guidance.

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BIBLIOGRAPHY
1. Gupta, C.B & N.R. Nair. Marketing Management. New Delhi Sultan &
Chand & Sons.
2. Chabra, T.N.& S.K. Grover. Marketing Management. New Delhi: Dhanpat
Rai & Co.
3. www.nos.org/srsec319new/319EL24.pdf
4. www.ddindia.gov.in/About+DD/DD+DCD/dddcd
5. http://ncdrc.nic.in/1_1.html
6. http://www.nishithdesai.com

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