Notes
Notes
Notes
// This Act is regarded as the 'Magna Carta' in the field of consumer protection for checking
unfair trade practices, 'defects in goods' and 'deficiencies in services' as far as India is concerned. It has led to the establishment of a widespread network of
consumer forums and appellate courts all over India. // Aims and objectives of Consumer Protection Act : Consumer Protection Act, 2019 is a law to protect
the interests of the consumers. This Act provides safety to consumers regarding defective products, dissatisfactory services, and unfair trade practices.
Object of the Act: The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and
effective administration and settlement of consumers' dispute. // Salient features of Consumer Protection Act2019 : Empowering consumers: The new Act
will empower consumers and help them in protecting their rights through its various rules and provisions. ➤ Inclusion of the e-commerce sector:
The earlier Act did not specifically include e-commerce transactions, and this lacuna has been addressed by the new Act. E-commerce has been witnessing
tremendous growth in recent times. ➤ Time-bound redressal: The new Act by simplifying the resolution process can help solve the consumer grievances
speedily. A main feature of the Act is that under this, the cases are decided in a limited time period. Upholding consumer interests: For the first time, there
will be an exclusive law dealing with Product Liability. • Product liability provision will deter manufacturers and service providers from delivering defective
products or deficient services. Alternate dispute redressal mechanism: The provision of Mediation will make the process of dispute adjudication simpler and
quicker. Lack of differentiated approach: As per the proposed rules for the e-commerce businesses, companies are not allowed to "manipulate the price" of
goods and services offered on their platforms to gain unreasonable profit or discriminate between consumers of the same class or make any arbitrary
classification of consumers affecting their rights under the Act. // The new Act has widened the definition of 'consumer'. The Act proposes the establishment
of the Central Consumer Protection Authority (CCPA) as a regulatory authority. The new Act provides flexibility to the consumer to file complaints with the
jurisdictional consumer forum located at the place of residence or work of the consumer. The Act has introduced the concept of product liability.
Discuss the role of consumer protection councils in promoting rights of consumers. // The Consumer Protection Council (CPC) is an agency of the
Government of Nigeria with the mandate of addressing consumers' complaints, providing consumer education, and encouraging trade, industry, and
professional associations to develop and enforce quality standards designed to safeguard the interests of consumers. Its core activities are: to inform
consumers; to eliminate hazardous products from the market and ensure that products and services comply with required standards and to receive, mediate
and provide redress to consumer complaints. Main functions of Consumer Protection Council: Consumer protection councils help consumers in the
following ways: These councils guide the consumers on the method of filing cases in the consumer court. They also represent consumers in the consumer
courts. They also create awareness among the people regarding their rights as consumers // There are two Protection Councils. They are:.The State
Consumer Protection Council, The Central Consumer Protection Council. The National Consumer Disputes Redressal Commission (NCDRC). India, is a semi-
legal commission in India that was set up in 1988 under the Consumer Protection Act of 1986. Its administrative centre is in New Delhi. The commission is
headed by a sitting or retired judge of the Supreme Court of India. // The difference between consumer protection council and consumer court: The
difference between consumer protection council and consumer court is Consumer protection council has not any legal right and is a voluntary organization.
Whereas Consumer courts are three tier quasi-judicial machinery set up for redressing consumer disputes.// The activities of consumer protection councils:
In the project, The CPC is educating consumers about their rights and obligations; Facilitating dialogue with electricity distribution companies on standards,
codes, and guidelines for their operations; Establishing coordination platforms and regular meetings among relevant oversight and regulatory bodies; and
automating its complaint system. // Importance of consumer protection: Consumer protection makes markets work for both businesses and consumers,
Consumers need to be able to obtain accurate, unbiased information about the products and services they purchase. This enables them to make the best
choices based on their interests and prevents them from being mistreated or misled by businesses.
Explain the Common Law Principle of Product Liability with the help of decided cases. ANS: Product liability law provides the consumers with legal recourse
for any injuries suffered from a defective product. It is estimated that millions of people around the globe are negatively affected by defective products, and
that the manufacturers or sellers end up paying large amounts for products-liability insurance as well as damages. // The theory of caveat emptor, meaning
let the buyer beware, governed the general consumer law from 18th century up until early 20th century. Where the lifestyle was modest and all the
products that were locally made, and therefore any consumer who suffered any damages from a defective product could directly confront the manufacturer
and the intervention of courts or legislature was not required. However, with the changes in the means of production and consumption, such as industrial
revolution, technological developments, among others, have led to the development of products-liability law due to the rise in issues arising out of defective
products. // The modern market for consumers for goods as well as services have undergone drastic transformation with the emergence of global supply
chains, rise in international trade and the rapid development of e-commerce have led to not // Principles of product liability law: Product liability law finds
its origin in the common law concept of caveat venditor, meaning "let the seller beware", placing the onus on the seller for any problem that the buyer
might encounter with a service or product. Product liability implies the responsibility of a manufacturer or vendor of goods to compensate for injury caused
by defective merchandise that it has provided for sale. // CASE L AWS: Toyota: Cars: Toyota agreed to pay out US$1.1 billion to settle a class-action lawsuit
following the recall of millions of its cars in 2010 after a series of accidents and deaths allegedly caused by a "sticky" accelerator pedal. Lawyers pointed out
that a safety mechanism wasn't installed in many of its cars, which increased the chances of an accident if the accelerator malfunctioned.
Explain the liability of the doctors under Consumer Protection Act. // Medical Negligence' means - "Failure to exercise reasonable skill as per the general
standards and the prevalent situation is termed as medical negligence." Medical Services Within the Purview of Consumer Protection 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.// bench of Justices DY Chandrachud and Hima Kohli affirmed the Bombay High Court verdict which
held that doctors and healthcare service providers are covered under the ambit of the Consumer Protection Act. Supreme Court said healthcare services are
not excluded from Consumer Protection Act. The major change has been in the form of Consumer Protection Act. // A doctor performing his duty with due
care and caution could not be held liable for negligence. However, where error in judgement was due to negligent act, it shall then be termed breach of duty
and the doctor shall be held liable for his actions.// Liability of a doctor: The Supreme Court has reiterated that a Doctor providing free medical services on
behalf of the hospital cannot be sued under Consumer Protection Act for deceptive practices.// When does the doctor's liability arise? A medical
professional or hospital shall be held liable for all actions against the patients where they have not taken proper standard of care and it has resulted in
suffering on part of the patient. The burden of proof shall lie on the complainant to prove a case of negligence. They have to first establish that there was a
duty of care on part of the accused and that, there was breach of such duty.// Criminal liability: Under various provisions of Indian Penal Code, 1860 any
person who acts negligently or rashly that results in threat to human life or personal safety or; results in death of a person then the person shall be punished
with imprisonment and/or fine. However the court have observed that in a matter of negligence where a criminal case is being perused, the element of
"mens rea" must be shown to exist..
Explain the Historical and modern perspectives of Consumer Protection Movement. // Consumer Protection in Ancient Times India has an ancient history
of consumer protection. Consumer protection was part of its ancient culture and formed the core of its administration. Kautilya's 'Arthasasthra' was the
basic law of ancient India and the same was strengthened with provisions to protect consumers. Sale of commodities was organised in such a way that
general public was not put to any trouble. If high profits (for the ruler) put general public in trouble, then that trade activity was stopped immediately. For
traders, profit limit was to be fixed. Even for services timely response was prescribed; e.g. for sculptures, carpenter, tailor, washerman, rules for the
protection of consumer interest were given. Thus, for a washerman, it was said that he should return washed clothes in a given time period, i.e., light
coloured ones in five days, blue dark coloured in 6 days and silken, woollen or embroidered in 7 days. Failing this they had to pay fine. The Superintendent of
Commerce was to supervise weights and measures. For shortfall in weighing measuring, sellers were fined heavily. For adulterated things, the seller was not
only fined but also compelled to make good the loss. Indeed, the people in different parts of the country today celebrate in different ways the dates
dedicated to the remembrance of ancient periods during which, it is believed, people's welfare was the first concern of the rulers. 'Onam' in Kerala is one
such example. The folk songs relating to Onam celebrate the fact that during the rule of King Mahaballi, people were not at all exploited in any manner. It is
believed that there were not shortages or malpractices in weights or measures and nor excessive advertisements.
Explain the Sale of Goods Act: // The object of the contract of sale is always the goods. This is codified in Sections 6, 7, and 8 of the Sales of Goods Act,
1930. Consequently, adid sort of movable property falls within the ambit and definition of the "goods" provided for in Section 2(7) of the Sales of Goods Act,
1930. Goodwill, patents, trademarks, copyrights, and more are known as movable assets. Although, the Act excludes actionable claims and assets. The Act
deals with movable property subject-matter and not about selling immovable assets. The transaction concerning immovable property, such as sales, rentals,
gifts, etc., is regulated by a separate Act, known as the Transfer of Property Act, 1882. // Essentials of the contract of sale: The contract for the sale of
goods is a contract between the buyer and the seller agreeing to trade goods for a profit. Section 4(1) of the Sales of Goods Act, 1930 describes the phrase
'Contract ofSale' as a contract for the sale of goods under which the seller transfers or agrees to move the goods to the purchaser for a price. The definition
shows that the essential elements involved in the transfer of ownership at a price include two parties to the contract who are willing to trade their goods or
services in order to receive a common benefit i.e. price. // There are some features that must co-exist to form a contract for the sale of goods under the Sale
of Goods Act, 1930. There have to be at least two parties, the seller and the buyer. The subject- matter of the contract should definitely be goods that
include only movable property. // Sale and agreement to sell: In the sale of goods, the asset is passed directly from the seller to the buyer. The word 'sale' is
defined in Section 4(3) of the Sale of Goods Act, 1930. In the contract of sale, the property and the goods are passed from the seller to the buyer, and the
contract is known as the sale. In an agreement to sell, the ownership of the goods shall not be transferred immediately. First, the conditions need to be
fulfilled, then it can be transferred. The term 'agreement to sale' is specified in Section 4(3) of the Sale of Goods Act, 1930, which says that in a contract of
sale, the transition of the property or goods takes place at a certain time or pursuant to the requirement that has to be satisfied.
What is the Impact of RERA Act on Consumer rights? // A Real Estate Regulatory Authority (RERA) has been established under this Act in each state in order
to regulate the sector and act as a body for speedy grievance redressal.. The Act mandates the registration of all real estate projects where the area of land
is above 500 square metres, or eight apartments. Promoters or the builder/developer must register with RERA along with necessary documents such as
sanctioned plan, project details, approvals, and certificates of the projects etc. // With respect to customers or homebuyers, the act grants the following
Rights: Misleading advertisement: If a customer pays advance for a project based on the information in the brochure or advertisement which is misleading
and makes false claims, then the promoter is obliged to compensate the customer by repaying them along with interest if the customer wishes to withdraw
from the project. The penalty for the same can go up to 5% of the project cost. // Advance more than 10%: It is not legal for the promoter to accept an
amount more than 10% of the property's cost as advance from the customer efore entering into a written agreement for sale and registering the same. The
sale agreement must contain specifications of the property, dates of milestones & possession, manners of payment, interest applicable in case of default,
etc. // Carpet Area: The price of the property is to be calculated on the basis of carpet area. The term carpet area was given a clear definition under this Act.
It is defined as 'the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or
verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.'// Builder insolvency : To
protect customers from the risk of builder insolvency, the builder must deposit 70% of the amount realized for the project into a separate bank account.
Withdrawal from the account can be made according to the level of completion of the project. // Right to full refund: In case the promoter does not
complete the project within the due date or discontinues, the customer has the right to opt-out of the project and is entitled to a full refund of the amount
paid along with interest payable from the due date of completion till the amount is refunded. // To obtain the information: The customer is entitled to
obtain the information relating to sanctioned plans, layout plans along with the specifications approved by the competent authority, status of completion,
and all other such information as provided in this Act or the agreement for sale signed with the promoter. Aggrieved persons can file complaint against
promoters and agents under RERA
Explain the importance of consumer protection from the point of the view of consumer? // Consumer protection provides information to the ignorant
customers regarding rights and remedies available to them. It spreads awareness so that consumer can know about the various redressal agencies where
they can approach to protect their interests. The importance of consumer protection from the consumers point of view can be understood from the
following points: Consumer awareness: In the light of widespread ignorance of consumers about their rights and reliefs available to them, it becomes
necessary to educate them about the same so as to achieve consumer awareness. Protection against malpractices or exploitation of sellers: Consumers must
be Compensated for impurities in cold drinks exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products,
adulteration, false and misleading advertising, hoarding, black-marketing etc. Consumers need protection against such malpractices of the sellers. contracts:
The Unfair Act introduced 'unfair contract' under Section 2(46) of the Act, which includes contracts requiring excessive security deposits to be given by the
consumer for the performance of contractual obligations. However, the inclusion of unfair contracts in the Act would enable the consumer to file complaints
in such cases and would also keep the fraudulent businesses in check. Territorial jurisdiction: The Act enables the consumers to file complaints where the
complainant resides or personally works for gain thus it would benefit the consumers in seeking redressal for their grievances when their rights have been
violated. False and misleading advertisements: The Act defines the term 'false and misleading advertisements' and also lays down strict penalties for such
acts or omissions. * Product liability: The term 'product liability' has been defined by this Act, which states that it is the duty of the product manufacturer,
service provider or seller to compensate for any harm caused to a consumer by such defective product manufactured or service provided to the consumer.
Mediation and alternative dispute resolution: The Act enables the consumer to opt for mediation and alternative dispute resolution mechanisms for speedy
and effective settlement of consumer disputes. * E-filing of complaints: The Act also facilitates e-filling of the complaints and seeking video conference
hearings by the Commission. Thus, providing convenient means for the consumers to voice their grievances. The enactment of the Act was paramount and it
changed the ambit of protecting the rights of consumers in the country.
Describe the Drugs and Cosmetics Act: The Drugs and Cosmetics Act of 1940 is an act enacted by the Indian Parliament that regulates the import,
manufacture, and distribution of medicines in the country. The Act's principal goal is to ensure that drugs and cosmetics that are being sold in India are safe,
effective, and meet state quality standards. The associated Drugs and Cosmetics Rules, 1945, provide provisions for categorising drugs into schedules, as well
as guidelines for storage, sale, display, and prescription of each category. // Objectives of the Act: The D&C Act was passed on April 10, 1940, with the main
goal of allowing the import, manufacture, distribution, and sale of drugs and cosmetics. // The Act governs the import of medications into India, ensuring
that no substandard or counterfeit drugs enter the nation. The statute forbids the manufacture of inferior or counterfeit drugs in the country. //
The Act mandates the sale and distribution of pharmaceuticals by only trained and competent individuals, as well as the manufacture, sale, and distribution
of Ayurvedic, Siddha, Unani, and Homeopathic drugs. // The Act's provisions govern the import, manufacturing, sale, and distribution of cosmetics. // To
have drug inspectors visit licenced premises regularly. Controlling the standards of pharmaceuticals and cosmetics by collecting samples and studying them
in recognised laboratories. The Drugs and Cosmetics Rules, 1945 are the regulations enacted by the Indian government in response to the Drugs and
Cosmetics Act, 1940. These rules classify medicines following certain timetables and provide the storage, sale, display and prescription guidance for each
timetable. The Drugs and Cosmetics Rules of 1945 includes clauses for classifying drugs into schedules, as well as guidelines for storing, selling, displaying,
and prescribing each schedule. The terms of licences are detailed in Rule 67. The labelling restrictions are found in Rule 97. In matters relating to the
technical specifics of drugs, the Drugs Technical Advisory Board is the highest decision-making body. The Drugs and Cosmetics Act of 1940 established the
board.
Consumer rights under sec 2(9) of CPA 2019
Unfair trade practice sec 2(47) of CPA 2019