UNIT 8 Consumer Protection and Emerging Trends

Consumer Protection
The Consumer Protection Act is a crucial piece of legislation aimed at safeguarding the rights and interests of
consumers. Its nature, objectives, and scope can be understood as follows
Nature of the Consumer Protection Act
1. Protective Legislation: The act is primarily protective in nature, designed to defend consumers against exploitation
and unfair practices.
2. Consumer-Centric: It focuses on the rights and welfare of consumers, ensuring they receive fair treatment in the
marketplace.
3. Regulatory Framework: Establishes a structured regulatory framework for addressing consumer grievances and
disputes.
4. Enabling Environment: Promotes an environment where consumers can make informed choices and have access to
a fair marketplace.
Scope of the Consumer Protection Act
1. Wide Coverage: The act covers all goods and services, including those provided by public sector undertakings and
government agencies.
2. Comprehensive Rights: Enshrines various rights for consumers, including the right to safety, right to be informed,
right to choose, right to be heard, right to seek redressal, and the right to consumer education.
3. Consumer Redressal Forums: Establishes a three-tier redressal mechanism comprising District Forums, State
Commissions, and the National Commission for addressing consumer grievances.
4. Liability and Penalties: Defines the liability of manufacturers, service providers, and sellers, and prescribes penalties
for violations of consumer rights.
5. Unfair Trade Practices: Addresses issues related to unfair trade practices, restrictive trade practices, and misleading
advertisements.
6. E-commerce and Digital Transactions: With amendments, the act also extends to e-commerce and digital
transactions, ensuring consumers in the digital marketplace are protected.
Objectives Of Consumer Protection Act, 2019
The Act's principal goals are to safeguard consumer interests and create a solid and reliable process for resolving
consumer complaints.
The Act seeks to:
1. Prevent the marketing of goods that endanger life and property.
2. To protect customers from unfair business practices, educate them about the product's quality, potency, amount,
standard, purity, and price.
3. Create consumer protection councils to safeguard the interests and rights of consumers.
4. Whenever feasible, ensure that customers may access a trusted source of goods at reasonable costs.
5. Seek remedy for deceptive business practices or consumer abuse.
6. Defend the interests of consumers by designating authorities for the prompt and adequate handling and resolution
of consumer issues.
7. Establish the punishments for violations of the Act.
8. Listen to complaints and disputes, and make sure that consumer welfare is given proper attention in suitable
forums.
9. Educate customers about their rights by offering them consumer education.
10. Offer quick and efficient handling of customer concerns through alternative dispute resolution processes.
DEFINITIONS under Consumer Protection Act
1. Services (Section 2(42))
Services include any description of service made available to potential users and includes, but is not limited to, the
provision of facilities related to:
○ Banking
○ Financing
○ Insurance
○ Transport
○ Processing
○ Supply of electrical or other energy
○ Boarding or lodging or both
○ Housing construction
○ Entertainment
○ Amusement
○ Purveying of news or other information
Exclusions: Does not include rendering of any service free of charge or under a contract of personal service.
2. Defect (Section 2(10))
A defect refers to any fault, imperfection, shortcoming, or inadequacy in the quality, nature, or manner of performance
which is required to be maintained by or under any law in force or as claimed by the trader.
3. Deficiency (Section 2(11))
A deficiency means any fault, imperfection, shortcoming, or inadequacy in the quality, nature, and manner of
performance of any service which is required to be maintained by or under any law in force or has been undertaken to
be performed by a person in pursuance of a contract or otherwise in relation to any service.
4. Goods (Section 2(21))
Goods are defined as every kind of movable property other than actionable claims and money; and includes "food" as
defined in the Food Safety and Standards Act, 2006.
5. Consumer (Section 2(7))
A consumer is any person who:
● Buys any goods: This includes any person who 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. It also includes any user
of such goods other than the person who buys such goods, when such use is made with the approval of the
buyer.
● Hires or avails any services: This includes any person who hires or avails of any service for a consideration which
has been paid or promised or partly paid and partly promised, or under any system of deferred payment. It also
includes any beneficiary of such services other than the person who hires or avails of the services, when such
services are availed with the approval of the person who hires or avails of them.
Exclusions: A person is not considered a consumer if they obtain goods for resale or for any commercial purpose, or if
they avail of services for any commercial purposes. The exception is when goods bought and used are exclusively for the
purpose of earning a livelihood by means of self-employment.
Consumer Rights
The whole Consumer Protection Act, 2019 is the tree whose root is only and only the rights of the consumers. For these
rights to be entrusted with the consumers the whole act has been designed.
The six consumer rights are defined under the Section 2(9) of the Consumer Protection Act, 2019. These rights are
(i) the right to be protected
(ii) the right to be informed
(iii) the right to be assured,
(iv) the right to be heard
(v) the right to seek redressal
(vi) the right to consumer awareness.
The Right to be Protected
This right has been provided to protect the consumers from the hazardous goods or the goods which pose threat to the
life of consumers. This right has evolved out of the provisions of certain existing act which were enacted before the
enactment of the consumer protection act, 1985. The statutes such as-
● Prevention of Food Adulteration Act, 1954 which provides for prevention of food adulteration by laying down the
provisions of food, food inspectors. Restraint on sale/manufacture/import of certain item. The act also has penal
provisions for defaulters.
● Agriculture Produce (Grading and marketing) act, 1937 provides for grading and marking the agriculture produce so
as to ensure that the produce meets minimum level of standards as set out by this law and states the penalty for
non-conforming to the requirement of this law.
● Drugs and Cosmetics Act, 1940 regulates the import, manufacture, sale and standards of drugs and cosmetics, states
the minimum standard to be followed from manufacturing to packaging of drugs and cosmetics.
● Bureau of Indian Standards, Act 1986 provides for setting up a Bureau which is empowered to establish, publish and
promote Indian Standards of articles or processes. It also provides for mandatory certification of various products
ranging from electrical appliances like iron, heater and fan to food products like milk powder etc.
Recently, in September 2020 the consumer affair ministry announced that the imported toys need to pass the quality
testing set up by the ministry to get a nod for import in India. Bureau of Indian Standards (BIS) was asked to frame the
Quality Control Standard (QCS) for toys and its staff is also deployed at ports to take the sample and test.
The Consumer Protection Act, 2019 under section 20 empowers the central authority to recall the defective products or
where substantial evidence shows that the product was sold after indulging in unfair trade practices.
The Right to be Informed
● It Means 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 a decision. This will enable him to act wisely and responsibly and also
enable him to desist from falling prey to high pressure selling techniques.
● Unfair trade practices also include the spurious methods to sell the product. In a time, full of stories of food
adulteration, toxic chemical usage in cosmetics and food products and rising concerns of health and the subsequent
awareness among people has made it important for the manufacturer to print the relevant information so that a
consumer is aware enough of the thing being used by him.
● Therefore, we see different logos on the FMCG products such as the commonly known green and red symbols
denoting the type of food vegetarian or non-vegetarian, ‘CONTAINS CAFFINE’ logo can be seen on soft drinks bottles
and coffee and tea packets, Nutrition table and ingredients printed on the packaging of food products to inform the
health-conscious people specifically and also people in general, also Allergic Warnings are published so as to aware
the people with allergies etc.
● Advertisement, a highly pressurised selling technique has also affected the way people purchase goods. MNCs and
other big corporates with their ample funds use the concept of brand ambassadors to arouse the sentiments of the
consumers and it considerably increased the consumption of goods, in such circumstances it became necessary to
take solid steps to ensure the protection of interests consumers and to bind the sellers and service providers and
their ambassadors with such rules.
● The Consumer Protection Act, 2019 for the first time in the history of consumerism in India under section 21 has
stricter provisions for controlling the misleading and false advertisements and taking action on the endorser of the
brand. The Central Authority under the act has been empowered to impose the penalty for manufacturer or seller is
up to Rs10 Lakhs and two years of imprisonment and for subsequent offence it may rise to Rs50 Lakhs and five years
of imprisonment.
● For the endorser of such products a penalty can be imposed up to Rs10 Lakhs and one year imprisonment and for
any further offence the endorser can be banned also for a period of one year. No penalty will be imposed if the
endorser has exercised due diligence and has verified the veracity of the claim made by the product which is being
endorsed.
Right to be Assured or The Right to Choice
Economic reforms in early 1990 brought in plethora of options in almost all the goods and services. The increased
number of manufacturers for the same product ended the monopolistic practices and encouraged competition in the
market resulting in better options and competitive prices. Wherever possible consumers should get choices and a
variety of options with respect to price, quality in goods and services.
In 2003, the government enacted the Competition act, 2002 which aimed ‘to prevent practices having adverse effect on
competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure
freedom of trade carried on by other participants in markets’ it replaced the archaic Monopoly and Restrictive Trade
Practices Act, 1969.
It was introduced to avoid the formation of cartels, parallel pricing, controlling production to increase prices and any
other activity that have adverse effects on competition and which are anti-competitive. [17]Hence, today we see no
monopoly in certain sectors which are and now becoming essential for a human being such as FMCG, Electronics,
Apparels and etc.
Right to be heard
The Consumer Protection Act, 2019 defines this right as the right to be heard and be assured that consumer’s interests
will be receive due consideration before the appropriate forum. Every consumer has a right to raise their concerns
before the dedicated platform. The act establishes the dispute redressal commissions at district, state and national level
under Section 28, Section 42 and Section 53 of the act respectively.
The new Act provides the consumer with the facility to lodge a complaint in the jurisdictional consumer forum located
at the place of residence or work. This is different from the old practice of lodging complaint at the place of purchase or
the seller’ s office address as provided under Section 34(2)(d) of The Consumer Protection Act, 2019. The New Act will
allow consumers to complain electronically and to hear and / or hear parties through video-conferencing.
This method is easy and also reduces the inconvenience. Before, there was no video conferencing provision. The 2019
act also expands the definition of the consumer to include the e-commerce transactions which the earlier act did not
include. The definition now includes -any person who buys any goods, whether through offline or online transactions,
electronic means, teleshopping, direct selling or multi-level marketing- (Section 2(16) of the Consumer Protection Act,
2019).
The Right to Seek Redressal
This right is the most powerful object in the hands of consumers, it justifies the entire essence of the act which it aims to
satisfy. This right is provided against unfair trade practices, restrictive trade policies, and unscrupulous violation of
consumers. It also seeks to enforce all other rights provided to consumers in the act. The main objective of the right is to
provide a speedy and cost-efficient method of dispute redressal.
In the Right to be Heard, establishing consumer dispute redressal mechanism was a step in the direction of this right
while in the Right to Seek Redressal, the working of these commissions, the applicable jurisdiction, the mediation cell
and the system of appeal is the redressal infrastructure given by the act.
In C. Venkatachalam v. Ajit Kumar C. Shah and others 2011 the Supreme Court observed that: The Consumer
Protection Act, 1986 was enacted with the object and intention of speedy disposal of consumer disputes at a reasonable
cost, which is otherwise not possible in ordinary judicial/court system.
Section 35 & 38, Section 49, Section 59 of the act lay down the manner/procedure applicable to district, state, national
levels respectively.
The Right to Consumer Awareness
For the success of the aim of the Consumer Protection Act, 2019 it is necessary to aware the consumer with different
provisions of various statues which favour the protection and promotion of the consumer. An aware consumer forms
the basis of a highly competitive and malpractice free market order. Consumer education also plays an important role in
healthy development of society when faulty trade practices such as adulteration, hazardous chemical usage, and usage
of prohibited material are checked and an eye has been kept on them.
While utilizing the right many NGOs are established which provide legal assistance to the aggrieved consumers, educate
the consumers with important provisions which they can demand to be applied in daily life, and publish on the updates
in consumer protection field. A literate consumer is the king of market.
Case Laws:
1. Supriyo Ranjan Mahapatra v. Amazon Development Centre India (P) ltd. 2018
In this case the consumer ordered a Laptop from an e-commerce website for Rs129/- as offered instead of its
original price of Rs23,499/- later the order was cancelled by the e-commerce company citing the pricing issues and
the same was communicated to the consumer over a telephonic conversation.
Consumer attempted many a times to sought the exact reason of the cancellation, after no communication could be
established a legal notice was served which was also not responded. The consumer moved to District Consumer
Redressal Forum (now commission according to new act of 2019) where it was held that the e-commerce company
was not only negligent in rendering services but also included in unfair trade practices, thus consumer's case was
partly allowed and he got a total compensation of Rs12,000/-.
2. Tata Press Ltd v. Mahanagar Telephone Nigam Ltd. (Tata Press) 1995
the Supreme Court observed the right of the consumer as a recipient of commercial speech by stating, An
advertisement giving information regarding a life-saving drug may be of much more importance to the general
public than to the advertiser who may be having purely a trade consideration. Article 19(1)(a) not only guarantees
freedom of speech and expression, it also protects the rights of individuals to listen, read and receive the said
speech. Further, the Supreme Court also held that misleading and deceptive advertising would not fall within the
protection of Article 19.
3. Ernakulam Medical Centre v. P.R. Jayasree & Anr. 2020
The National Consumer Dispute Redressal Commission observed that -Releasing a dead body by a hospital to an
unrelated third person unquestionably constitutes deficiency in service within the meaning of Section 2(1)(g) and (o)
of Consumer Protection Act, 1986.
4. HDFC Bank Limited v. Balwinder Singh 2009
The National Consumer Dispute Redressal Commission expressed shock over the usage of physical means in form of
musclemen by the bank to recover the loan amount from the consumer and in the same process the musclemen
took the possession of the consumer’s car. The bank was held liable and the consumer was awarded exemplary
damages of Rs25,000.
Conclusion
How various developments that took place in 20th century and the role of stakeholders shaped the consumerism in
India and how the first milestone moment in the consumer protection field took place as the Consumer Protection Act,
1986. With the onset of globalization, the consumer movement took a new shape and today we see the enactment of a
new act that is the Consumer Protection Act, 2019 which is again a significant and yet diversified statute as it also
includes the penal provision for misleading advertisements and product endorsers.

It expands the definition of a consumer to include the users of the new concept of e-commerce, also when the world is
getting virtual and digitalized it is important to include the innovative methods so that no aggrieved consumer is left
behind. With the growing needs according to the changing time the rights of consumers also shape themselves and are
thus ever evolving. Fair, cheap and easy process of consumer redressal system is the only thing for which the entire
legislation is enacted.
Duties of consumer
Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do not understand their rights. So its
our duty to know about our rights and to use it in the right place.
Unorganized Consumers: In India consumers are widely dispersed and are not united. They are at the mercy of
businessmen. On the other hand, producers and traders are organized and powerful.
Spurious Goods: There is increasing supply of duplicate products. It is very difficult for an ordinary consumer to
distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by
ensuring compliance with prescribed norms of quality and safety. Always check the norms of the product.
False Advertising: Some businessmen give misleading information about quality, safety and utility of products.
Consumers are misled by false advertisement. To stop this, we the consumer have to know about the product.
Malpractices of Businessmen: Only consumer can avoid and stop the mal practises of the businessmen by opposing
them. So this is one of the duty of consume
The composition of the District Forum and the State Commission has been detailed out by the Consumer Protection Act,
1986. As for the National Commission, the Consumer Protection Rules, 1987, elaborates upon its composition.
Redressal Agencies Under The Consumer Protection Act
As far as the Consumer Redressal Forums are concerned, certain key changes have been brought by the 2019 Act such
as:-
i. Territorial Jurisdiction – The 2019 Act now provides an added advantage to the consumers by providing for filing of
complaints where the complainant resides or personally works for gain as against the 1986 Act which only provides for
filing of complaint where the opposite party resides or carry on business. This would help in removing the difficulties
faced by the consumers in seeking redressal of their grievances against businesses who may not have an office or
branch in their state.
ii. Pecuniary Jurisdiction – The 2019 Act also changed the pecuniary jurisdiction for the District, State and National
Commissions, respectively. The pecuniary limit for the District Commission has been increased to up to Rs.1 Crore from
up to Rs.20 Lakhs; for State Commission it has been increased to up to Rs.10 Crores from up to Rs.1 Crore; and for
National Commission the pecuniary jurisdiction has been increased to over and above Rs.10 Crores as against Rs.1 Crore
in the 1986 Act. In addition to this, the 2019 Act has also changed the manner for determining the pecuniary jurisdiction
for filing the Complaint. Now the pecuniary jurisdiction will be determined on the basis of the value of goods or services
paid as consideration as against the 1986 Act wherein, the pecuniary jurisdiction was determined as per the value of
goods and services as well as compensation claimed. This would help in doing away the practice of inflating the
compensation claimed so as to bring the complaint within the jurisdiction of State or National Commission.
iii. Alternate Dispute Resolution – Another provision introduced by the 2019 Act to ensure speedy resolution of
disputes is to provide for referring the disputes to mediation. As per the 2019 Act, the Consumer Forum shall refer the
matter to mediation on written consent of both the parties. For this purpose, the 2019 Act also provides for
establishment of a consumer mediation cell by the respective State Governments in each District Commission and State
Commission as well as at the National Commission by the Central Government.
Mediation
Chapter 5 Section 74 of the Consumer Protection Act, 2019 states that a Consumer Mediation Cell shall be established
by the Central Government at the national level and every state government shall establish Consumer Mediation Cell
exercising within the jurisdiction of that state. The mediator nominated to carry out the mediation shall conduct it
within such time and in such manner as may be specified by regulations.
Section 75 of the Act talks about the empanelment of the mediators. It states the qualifications, terms and conditions of
service, the procedure for appointing, and the fee payable to the empanelled mediators.
It is the duty of the mediator to disclose certain facts such as; any personal, financial or professional in the result of the
consumer dispute, the circumstances giving rise to their independence or impartiality and any other necessary
information for the protection of consumer rights.
iv. E-Complaints - The 2019 Act also provides for filing of Complaints before the District Forums electronically in
accordance with the rules which are yet to be prescribed by the Government.
For the redressal of consumer grievances, the Consumer Protection Act 2019 provides for setting up of a three-tier
enforcement machinery at the District, State, and the National levels, known as the District Consumer Disputes
Redressal Commission, State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal
Commission. They are briefly referred to as the ‘District Commission’, ‘State Commission’, and the ‘National
Commission’, respectively. While the National Commission is set up by the Central Government, the State Commissions
and the District Forums are set up, by the State Government. The Figure on redressal agencies shows the hierarchical
structure of this three-tire machinery. Let us now see how the consumer grievances are redressed by the threetire
machinery:
1. District Commission:
District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration
does not exceed one crore rupees. Either on the first hearing or at any later stage, it appears to district commission that
there exists elements of settlement which may be acceptable to the parties, it may direct them to give their consent for
settlement of dispute through mediation within five days. In case the parties agree for settlement by mediation and give
written consent, the district commission refers the matter for mediation and the provisions relating to mediation shall
apply. However, in the event of failure of settlement by mediation proceeds with the complaint. If the complaint alleges
defect in goods which cannot be determined without proper analysis or test of goods, the commission obtains the
sample of goods, seal it and refer to the appropriate authority for analysis. In case of services, the dispute is settled
based on the basis of evidence brought to its notice by the complainant and can ask for any required information
document or records from the service provider for settlement. If any of the parties are not satisfied by the order of
District Commission can appeal against such order to the State Commission on the grounds of facts or law within a
period of forty five days from the date of order.
2. State Commission:
It is established by the respective state government and ordinarily function at the state capital. State Commission has a
jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds one crore but does
not exceed ten crore rupees. If any of the parties are not satisfied by the order of State Commission can appeal against
such order to the National Commission within a period of thirty days of such order.
3. National Commission:
The National Commission has territorial jurisdiction over the whole country. National Commission has a jurisdiction to
entertain complaints where value of goods or services paid as consideration exceeds ten crores of rupees. If any of the
parties are not satisfied by the order of National Commission can appeal against such order to the Supreme Court of
India within a period of thirty days of such order.
Relief Available
Where District or State or National Commission is satisfied about defect in goods, or deficiency in services on any unfair
trade practice or claim for compensation under product liability, issues an order:
(i) To remove the defect in goods or deficiency in service.
(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product, or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence
of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/ restrictive trade practice and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
(ix) To cease manufacture of hazardous goods and to desist from offering hazardous services. (x) Compensate for any
loss or injury suffered by consumer under product liability action and withdraw hazardous products from being offered
for sale etc.
However, every order of a district commission, the state commission or the national commission is deemed final if no
appeal for such order is made by any of the parties involved in dispute.
The 2019 Act:
National Consumer Dispute State Consumer Dispute District Consumer Dispute
Redressal Commission Redressal Commission Redressal Commission

Establishment S. 53 S. 42 S. 28

Composition S.54 President + 4 members S.42 President + 4 members S.28 President + 2 members

Term of 5 year term OR 70 CG to make CG to make rule

Salary or honorarium and Prescribed by the Central Prescribed by the State Prescribed by the State
allowances Government Government Government

Jurisdiction S.58 complaints exceeding S.47 Complaints > 1 cr and < S.34 Complaints < 1cr
10cr and appeals 10 cr ; appeals

Procedure S.59 Provisions relating to S.49 Provisions relating to Sections 35,36,37,38 and 39
complaints under section complaints under section Complaints can be made by
35,36,37,38 and 39 shall be 35,36,37,38 and 39 shall be the
applicable applicable consumer(/s)/recognized
 consumer association/CG.
The district commission
determines the admissibility
of the complaint made, after
hearing the complainant.
After admission, if it occurs
to the commission that
there are elements of
settlement occurring in the
case, it will refer the case to
mediation (with the parties’
consent) If the mediation
fails, the commission
follows the usual procedure
under Section 38 and 39.

Appeal S.62 To the Supreme Court S.51 To the National S.41 To the State
Commission Commission

Emerging Torts: Recognition of New Duties Towards the Persons Generally due to Industrialization, Urbanization,
Professionalism, Industrial Hazards, Scientific and Technical Advancements etc. under copra 2019
HEARING OF THE COMPLAINT [SEC. 38]
Where -
1. the Commission does not find that the matter may be settled through mediation;
2. the matter is one which shall not be referred to mediation; or
3. the matter is referred to mediation, but mediation fails, the Commission may proceed with the hearing of the
complaint
PROCEDURE IN COMPLAINT IN RESPECT OF GOODS [S. 38(2)]
Objections to the Complaint The Commission refers a copy of the complaint to the opposite party for its objections,
within 21 days.
The opposite party has to present the objections within 30 days.
The Commission has the power to extend the time by a maximum of 15 days. Where the opposite party admits the
liability, the Commission may pass a suitable order and dispose of the complaint.
If the opposite party -
1. presents objections and denies or disputes the allegations; or
2. fails to present objections the Commission shall proceed to hear the complaint and dispose of it.
Reference of Sample Goods to Appropriate Laboratory
If the alleged defect in goods cannot be determined without proper analysis or test of the goods, the Commission shall
obtain a sample of the goods from the complainant.
The sample so obtained shall be sealed and authenticated in the manner as may be prescribed by Rules.
The Commission shall ask the complainant to deposit the specified fees. Then the sealed and authenticated sample shall
be referred to the appropriate laboratory along with
1. fees deposited by the complainant; and
2. a direction that such laboratory to make an analysis or test.
Sec. 2(2) defines ‘Appropriate Laboratory’ as a laboratory or an organisation—
1. recognised by the Central Government; or
2. recognised by a State Government, subject to such guidelines as may be issued by the Central Government
in this behalf; or
3. established by or under any law for the time being in force, which is maintained, financed or aided by the
Central Government or a State Government for carrying out analysis or test of any goods with a view to
determining whether such goods suffer from any defect.
On receiving the report from the laboratory, a copy shall be given to the parties. If any party has any objection to the
correctness of the report, it shall have an opportunity to present the objections to the report. Both the parties shall
have an opportunity to argue in favour of and against the report. After hearing both the parties, the Commission shall
make suitable order to dispose of the complaint. If the defect of goods need not be referred to appropriate
laboratory, the Commission shall adopt the procedure in complaints in respect of services.
PROCEDURE IN COMPLAINT IN RESPECT OF SERVICES [S. 38(3)] Objections to the Complaint
The Commission refers a copy of the complaint to the opposite party for its objections, within 21 days.
The opposite party has to present the objections within 30 days. The Commission has the power to extend the time by a
maximum of 15 days.
Where the opposite party admits the liability, the Commission may pass a suitable order and dispose of the complaint.
If the opposite party
1. presents objections and denies or disputes the allegations; or
2. fails to present objections the Commission shall proceed to hear the complaint and dispose of it.
RECORDING OF EVIDENCE [SEC. 38(5) AND (6)]
The Commission shall settle the consumer dispute on the basis of evidence brought to its notice by the parties.
The complaint shall be heard by the Commission on the basis of affidavit and documentary evidence placed on record.
Where an application is made for hearing or for examination of parties in person or through video conferencing, the
Commission may allow the same.
Proviso to Sec. 38(6) puts two conditions for examination of witnesses:
1. the applicant must show sufficient cause for examination of witnesses, and
2. the Commission must record reasons in writing for allowing the application.
TIME FRAME FOR DISPOSING OF COMPLAINT [SEC. 38(7)]
Sec. 38(7) requires that every complaint shall be disposed of as expeditiously as possible. The Commission shall
endeavour to decide the complaint within a period of
1. three months from the date of receipt of notice by opposite party where the complaint does not require analysis or
testing of commodities and
2. five months if it requires analysis or testing of commodities.
Ordinarily, the Commission shall not give adjournments to the parties. But where there is sufficient reason, the
Commission may give adjournments subject to payment of costs by the party seeking adjournment to the opposite
party.
FINDINGS OF THE DISTRICT COMMISSION [SEC.39]
Where the District Commission is satisfied
1. that the goods complained against suffer from any of the defects specified in the complaint or
2. that any of the allegations contained in the complaint about
(a) the services or
(b) any unfair trade practices, or
3. claims for compensation under product liability are proved, it shall issue suitable order against the opposite party.
A. IN CASES OF DEFECTIVE GOODS AND SERVICES WHERE THE SAMPLE GOODS ARE REFERRED TO APPROPRIATE
LABORATORY
The Commission may order the opposite party to
1.to remove the defect pointed out by the appropriate laboratory from the goods in question; or
2. to replace the goods with new goods of similar description which shall be free from any defect; or
3. to return to the complainant the price, or, as the case may be, the charges paid by the complainant along
with such interest on such price or charges as may be decided.
IN CASE OF OTHER GOODS, AND SERVICES
Where the goods are not referred to appropriate laboratory, and in case of services, the Commission may order the
opposite party to remove
1. the defect from the goods or
2. deficiency from the services.
COMPENSATION OR DAMAGES
In addition to the above order, the Commission may order the opposite party to pay such amount as may be awarded
by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the
opposite party. The Commission has the power to grant punitive damages in such circumstances as it deems fit.
B. IN CASES OF PRODUCT LIABILITY CLAIMS
In a product liability action under Chapter VI the Commission may order the opposite party to pay such amount as may
be awarded by the Commission as compensation.
C. IN CASES OF UTP OR RTP
The Commission may order the opposite party to
1. discontinue the unfair trade practice or restrictive trade practice and
2. not to repeat them.
D. IN CASES OF HAZARDOUS OR UNSAFE GOODS
The Commission may order the opposite party
1. not to offer the hazardous or unsafe goods for sale; or
2. to withdraw the hazardous goods from being offered for sale; and
3. to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature.
ORDER FOR COMPENSATION IN CASE OF HAZARDOUS OR UNSAFE GOODS
The Commission may order the opposite party to pay such sum as may be determined by it, if it is of the opinion that
loss or injury has been suffered by a large number of consumers who are not identifiable conveniently.
The minimum amount of sum so payable shall not be less than 25% of the value of such defective goods sold or service
provided to such consumers;
Any amount so obtained shall be credited to such fund and utilised in such manner as may be prescribed.
E. IN CASES OF MISLEADING ADVERTISEMENTS
In case of misleading advertisement the Commission may order the opposite party
1.to cease and desist from issuing any misleading advertisement; or
2.to issue corrective advertisement to neutralise the effect of misleading advertisement at the cost of the opposite party
responsible for issuing such misleading advertisement;
In all cases, the District Commission has the power to provide for adequate costs to parties.
FINALITY OF ORDERS [SEC. 68]
Sec. 68 lays down that every order of a District Commission or the State Commission or the National Commission, as the
case may be, shall, if no appeal has been preferred against such order under the provisions of this Act, be final.
ENFORCEMENT OF ORDERS [SEC. 71]
Sec. 71 lays down that every order made by a District Commission, State Commission or the National Commission shall
be enforced by it in the same manner as if it were a decree made by a Court in a suit before it.
Provisions of Order XXVI of the Civil Procedure Code, 1908 relating to the execution of decrees shall be applicable to
such enforcement of orders.
PENALTY FOR NON-COMPLIANCE OF ORDER [SEC. 72]
Failure to comply with any order made by the District Commission or the State Commission or the National Commission,
as the case may be, attracts
1. imprisonment for a term which shall not be less than one month, but which may extend to three years, or
2. fine, which shall not be less than twenty-five thousand rupees, but which may extend to one lakh rupees, or
3. both.
The District Commission, the State Commission or the National Commission, as the case may be, have the power of a
Judicial Magistrate of First Class for the trial of the offence of non-compliance of their orders. For that purpose, they
shall be deemed to be Judicial Magistrates of First Class for the purposes of the Code of Criminal Procedure, 1973.
The trials by the Commissions shall be summary trials, and the orders passed by the Commissions in such trials are
appealable.
Addressing the Liability and Regulatory Implications of Emerging Technologies: “Torts of the Future,” including
autonomous vehicles, commercial use of drones, private space exploration, the sharing economy, and the Internet of
Things
Autonomous Vehicles (AVs):
● These are self-driving cars that can navigate and operate without human intervention using a combination of
sensors, cameras, artificial intelligence, and machine learning algorithms.
Commercial Use of Drones:
● This refers to the utilization of unmanned aerial vehicles (UAVs) for business purposes such as aerial
photography, agriculture monitoring, package delivery, and infrastructure inspection.
Private Space Exploration:
● Involves non-governmental entities (private companies) engaging in the exploration, exploitation, and
commercialization of outer space. Examples include companies like SpaceX and Blue Origin conducting space
missions.
Sharing Economy:
● An economic model where individuals can rent or share access to goods and services, typically facilitated by a
digital platform. Examples include ride-sharing services like Uber and home-sharing services like Airbnb.
Internet of Things (IoT):
● A network of physical objects embedded with sensors, software, and other technologies to connect and
exchange data with other devices and systems over the internet. Examples include smart home devices like
thermostats, lights, and security cameras.
Liability Issues:
 ● These refer to the legal responsibilities and obligations that arise when someone is harmed or property is
damaged. In the context of emerging technologies, liability issues focus on determining who is at fault and
responsible for compensation in the event of an accident or failure.
Regulatory Considerations:
● These involve the creation and enforcement of laws and guidelines to ensure the safe and ethical use of
emerging technologies. Regulatory considerations are crucial for protecting public safety, privacy, and consumer
rights while promoting innovation.
Specific Terms Explained:
1. Strict Liability:
o A legal principle that holds a party responsible for damages or harm caused by their actions or products, regardless
of fault or intent. In the context of AVs and drones, manufacturers could be held strictly liable for defects.
2. No-Fault Insurance:
o An insurance system where policyholders are compensated by their own insurance company regardless of who
caused the accident. This is proposed for AVs to streamline compensation processes.
3. FAA (Federal Aviation Administration):
o The U.S. government agency responsible for regulating all aspects of civil aviation, including the commercial use of
drones. It sets rules and guidelines to ensure safe and lawful drone operations.
4. Outer Space Treaty:
o An international treaty that forms the basis of international space law, governing the activities of states in the
exploration and use of outer space. It includes provisions on liability for damages caused by space objects.
5. Cybersecurity:
o Measures and protocols implemented to protect internet-connected systems, including hardware, software, and
data, from cyber attacks. Critical for the safety and reliability of IoT devices.
6. Privacy Violations:
o Incidents where personal information is accessed, collected, or used without the individual's consent, often a
concern with drones and IoT devices capturing and sharing data.
Addressing the Liability and Regulatory Implications of Emerging Technologies
Emerging technologies such as autonomous vehicles, commercial use of drones, private space exploration, the sharing
economy, and the Internet of Things (IoT) present unique liability and regulatory challenges. Here's an overview of the
implications for each technology:
Autonomous Vehicles
Liability Issues:
Autonomous vehicles (AVs) are expected to significantly reduce accidents, potentially saving thousands of lives each
year. However, determining liability in the event of an accident remains complex. States like California and Nevada have
laws that place liability on the "operator" of the AV, defined as the person who controls or engages the technology.
Questions arise about the degree of control the human driver had and whether they could have prevented the accident.
Regulatory Considerations:
The National Highway Traffic Safety Administration (NHTSA) has issued guidelines to facilitate the safe introduction of
AVs. These include frameworks for data sharing, privacy, cybersecurity, and ethical issues. The NHTSA acknowledges the
need for a balance between encouraging innovation and ensuring public safety .
Commercial Use of Drones
Liability Issues:
The rapid expansion of drone usage for commercial purposes raises significant liability concerns, particularly regarding
collisions, privacy invasions, and property damage. Determining liability involves assessing whether the operator
complied with Federal Aviation Administration (FAA) regulations and whether the drone was operated negligently.
Regulatory Considerations:
The FAA regulates commercial drone operations, requiring operators to obtain specific certifications and adhere to
operational limitations to ensure safety and privacy. These regulations are designed to mitigate risks and provide a clear
legal framework for liability issues.
Private Space Exploration
Liability Issues:
Private space exploration presents novel liability issues, particularly related to accidents during launch and re-entry, as
well as potential damage caused by space debris. Liability can involve multiple parties, including private companies,
government agencies, and international stakeholders.
Regulatory Considerations:
Regulation of private space activities is governed by national space laws and international treaties such as the Outer
Space Treaty. These regulations aim to ensure that private entities operate safely and that liability for damages is clearly
defined and manageable.
Sharing Economy
Liability Issues:
The sharing economy, exemplified by platforms like Uber and Airbnb, blurs the lines between personal and commercial
activities, complicating liability determinations. Issues include accidents involving ride-sharing vehicles and injuries or
damages occurring in rented properties.
Regulatory Considerations:
Regulatory responses vary widely, with some jurisdictions imposing stringent requirements on sharing economy
platforms to ensure safety and accountability. These regulations often mandate insurance coverage, background checks
for service providers, and adherence to health and safety standards.
Internet of Things (IoT)
Liability Issues:
The IoT involves interconnected devices that collect and share data, raising concerns about data breaches, privacy
violations, and potential physical harm if devices malfunction. Determining liability involves evaluating whether
manufacturers implemented adequate security measures and whether users followed recommended practices.
Regulatory Considerations:
Regulations are evolving to address the unique challenges of the IoT. These include standards for device security, data
protection laws, and guidelines for consumer transparency. Effective regulation aims to protect consumers while
fostering innovation in the IoT sector.
Conclusion
Addressing the liability and regulatory implications of these emerging technologies requires a balanced approach that
encourages innovation while protecting public safety and consumer rights. As these technologies evolve, so too must
the legal frameworks that govern them, ensuring that liability is fairly apportioned and that regulations are adaptable to
future advancements.