CENTRAL UNIVERSITY OF SOUTH

BIHAR

SCOOL OF LAW AND GOVERNANCE

PROJECT ON : CONSUMER PROTECTION BILL,
2019
SUBMITTED TO: DR. DEO NARAYAN SINGH
(ASSISTANCE PROFESSOR, FACULTY OF LAW)

SUBMITTED BY: AMIT KUMAR

PROGRAMME: B.A.LL.B.
ENROLLMENT NO. : CUSB1913125015

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SUBJECT: LAW OF TORTS
SECTION: A, ROLL NO. : 015
TABLE OF CONTENTS

ACKNOWLEDGEMENT...................................................... 03
TABLE OF CASES.............................................................. 04
RESEARCH METHODOLOGY............................................. 05
INTRODUCTION................................................................ 06
INTRODUCTION OF THE ACT,1986................................... 08
ANALYSIS OF THE BILL…………………………………………..12
CONCLUSION……………………………………………………….13
CASES………………………………………………………………...14
BIBLIOGRAPHY……………………………………………………..

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 ACKNOWledgemenT
The success and final outcome of this project required a lot of guidance and assistance from
you, dear sir and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not
forget to thank you.
 I respect and thank Dr. Deo Narayan Singh for providing me an opportunity to do the
project work in Central University of South Bihar and giving me all support and guidance which
made me complete the project duly. I am extremely thankful to him for providing such a nice
support and guidance, although he had busy schedule managing the classes and meetings.At
last, I owe my deep gratitude to you that you have guided me all along, till the completion of my
project work by providing all the necessary information for developing a good system.

THANK YOU!
DR. DEO NARAYAN SINGH
[ASSISTANT
PROFESSOR,FACULTY OF LAW]
(SCHOOL OF LAW AND
GOVERNANACE)
CENTRAL UNIVERSITY OF
SOUTH BIHAR

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 TABLE OF CASES

S.L. NO. NAME OF CASES CITATION PAGE NO.

1. M/s. Godfrey Phillips India A.I.R. 2008 S.C 1828

Ltd. v. Ajay Kumar

2. K.S. Sidhu v. Senior I (2001) C.P.J. 144

Executive Engineer

3. Guljari Lal Agarwal v. The III (1996) C.P.J. (S.C.)

Accounts Officer

4. Vice Chairman, D.D.A. v. III (1995) C.P.J. 18

O.P. Gauba (N.C.)

5. Delhi Development III (1995 C.P.J.) 333

Authority v. I.S. Narula

6. Janak Mehta v. Allahabad I (1996) C.P.J. 149 (J&K

Bank S.C.D.R.C.)

7. Kamlesh Bansal v. Balaji III (1995) C.P.J. 510

Land Traders Delhi S.C.D.R.C.

8. Ethiopian Airlines v. A.I.R. 2011 S.C. 3495

Ganesh Narain Saboo

9. Justice Debendra Mohan A.I.R. 2008 Ori. 28

Patnaik v. State of Odissa

10. Central Bank Of India v. A.I.R. 2008 (NOC) 2768

Tadepalli PadmaJa (NCC)

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 RESEARCH METHODOLOGY

 Research Methodology: The project is based on the doctrinal method of research as

no field work done on this topic.

 Aims & Objectives: To do a depth analysis of Consumer Protection Bill,2019 and its
aims and objectives. To know Parliament’s power of formation of new rules for the
consumers of the country.The main objectives of the Act are to provide better and all
round protection to consumers and effective safeguards against different types of
exploitation such as defective goods, deficient services and unfair trade practices. It also
makes provisions for simple, speedy and inexpensive machinery for redressal of
consumer's grievances.
 Sources of Data: The whole project is made with the use of secondary source. The
following secondary sources of data have been used in the project:

1. Books
2. Websites

 Mode of Citation: The researcher has followed a uniform mode of citation throughout
the course of this research paper.

 Type of Study: For this topic, the researcher has opted for Descriptive and
Explanatory type of study as in this topic, the researcher is providing the descriptions of
the existing facts.

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 INTRODUCTION
The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister of Consumer Affairs,
Food and Public Distribution, Mr. Ram Vilas Paswan on July 8, 2019.Indian Parliament, on 6 August
2019,has passed the ‘Consumer Protection Bill, 2019’ which aims to provide the timely and effective
administration and settlement of consumer disputes. The Consumer Protection Act, 2019 (New Act)
received the assent of the President of India and was published in the official gazette on 9 August 2019.
The New Act will come into force on such date as the Central Government may so notify. The New Act
seeks to replace the more than 3 (three) decades old Consumer Protection Act, 1986 (Act).
The new Act proposes a slew of measures and tightens the existing rules to further safeguard
consumer rights. Introduction of a central regulator, strict penalties for misleading
advertisements and guidelines for e-commerce and electronic service providers are some of the
key highlights. 

The new Act also covers a lot of new ground and revises the consumer protection framework to keep pace
with the dramatic changes that have taken place in the last three decades.

 Key reforms introduced in the 2019 Act include:

1.a new codified product liability framework (which hitherto existed in different sectoral
regulations)

2. extending the scope of the law to include online platforms and direct sellers.

3. and the establishment of a new consumer protection regulation - the Central Consumer
Protection Authority.

These consumer-friendly provisions will go a long way in making the dispute resolution process
more accessible.

  KEY FEATURES OF THE BILL INCUDE:

 Definition of consumer: A consumer is defined as a person who buys any good or

avails a service for a consideration.  It does not include a person who obtains a good for
resale or a good or service for commercial purpose.  It covers transactions through all
modes including offline, and online through electronic means, teleshopping, multi-level
marketing or direct selling.
 
 Rights of consumers: Six consumer rights have been defined in the Bill, including the
right to: (i) be protected against marketing of goods and services which are hazardous to
life and property; (ii) be informed of the quality, quantity, potency, purity, standard and
price of goods or services; (iii) be assured of access to a variety of goods or services at

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 competitive prices; and (iv) seek redressal against unfair or restrictive trade practices.
 
 Central Consumer Protection Authority: The central government will set up a
Central Consumer Protection Authority (CCPA) to promote, protect and enforce the
rights of consumers.  It will regulate matters related to violation of consumer rights,
unfair trade practices, and misleading advertisements.  The CCPA will have an
investigation wing, headed by a Director-General, which may conduct inquiry or
investigation into such violations.
 
 CCPA will carry out the following functions, including: (i) inquiring into violations of
consumer rights, investigating and launching prosecution at the appropriate forum; (ii)
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 in the Bill; (iii)
issuing directions to the concerned trader/ manufacturer/ endorser/ advertiser/ publisher
to either discontinue a false or misleading advertisement, or modify it; (iv) imposing
penalties, and; (v) issuing safety notices to consumers against unsafe goods and services.
 
 Penalties for misleading advertisement: The CCPA may impose a penalty on a
manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for
a false or misleading advertisement.  In case of a subsequent offence, the fine may extend
to Rs 50 lakh and imprisonment of up to five years.
 
 CCPA can also prohibit the endorser of a misleading advertisement from endorsing that
particular product or service for a period of up to one year. For every subsequent offence,
the period of prohibition may extend to three years.  However, there are certain
exceptions when an endorser will not be held liable for such a penalty.
 
 Consumer Disputes Redressal Commission: Consumer Disputes Redressal
Commissions (CDRCs) will be set up at the district, state, and national levels.  A
consumer can file a complaint with CDRCs in relation to: (i) unfair or restrictive trade
practices; (ii) defective goods or services; (iii) overcharging or deceptive charging; and
(iv) the offering of goods or services for sale which may be hazardous to life and safety. 
Complaints against an unfair contract can be filed with only the State and National  
Appeals from a District CDRC will be heard by the State CDRC.  Appeals from the State
CDRC will be heard by the National CDRC.  Final appeal will lie before the Supreme
Court.
 
 Jurisdiction of CDRCs: The District CDRC will entertain complaints where value of
goods and services does not exceed Rs.1 crore.  The State CDRC will entertain
complaints when the value is more than Rs. 1 crore but does not exceed Rs 10 crore. 
Complaints with value of goods and services over Rs 10 crore will be entertained by the
National CDRC.
 
 Product liability: Product liability means the liability of a product manufacturer,
service provider or seller to compensate a consumer for any harm or injury caused by a

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 defective goodor deficient service.  To claim compensation, a consumer has to prove any
one of the conditions for defect or deficiency, as given in the Bill.
 E-commerce under the radar 
E-commerce will now be governed by all the laws that apply to direct selling. The
guidelines propose that platforms like Amazon, Flipkart, Snapdeal etc will have to
disclose sellers’ details, such as their address, website, email, etc and other conditions
related to refund, exchange, terms of contract and warranty on their website to increase
transparency. 
 The onus of ensuring that no counterfeit products are sold on these platforms will also most
likely lie with the companies. If any such product is reported or recognised, the company could
be penalised. This move is fitting since cases of fake products sold through e-commerce
platforms is rampant. A survey by a social community platform LocalCircles conducted in
December last year showed that 38% respondents out of 6,923 were sold counterfeit products
from an ecommerce site in one year. These guidelines are open for public comment until 15
September. 

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 BRIEF INTRODUCTION ABOUT THE ACT,1986

The Consumer Protection Act was passed by the Parliament in 1986 and it came into force from
1987. Its purposes to protect consumers against defective goods, unsatisfactory services, unfair
trade practices, etc. The Act provides for three-tier machinery consisting of District Forum, State
Commission and National Commission. It also provides for the formation protection councils in
every state.

The consumers can file their complaints at the appropriate forum for quick redressal. The
complaint may relate to defective refrigerator or TV set, non-functional telephone, lack of due
cares in medical treatment and so on. Any service or product given free of charge is not covered
by the Act.

 Objects of the Consumer Protection Act, 1986

The preamble to the Act states that the Act is legislated to provide for better protection of the
interests of consumers and for that purpose to make provision for the establishment of
consumer councils and other authorities for the settlement of consumer's disputes and for
matters connected therewith. The CPA extends to the whole of India except the State of

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Jammu and Kashmir and applies to all goods and services unless otherwise notified by the
Central Government.

 The basic rights of consumers as per the Consumer Protection

Act (CPA) are:

1. Right to safety.
2. Right to be informed.
3. Right to choose.
4. Right to representation (or to be heard).
5. Right to seek redressal.
6. Right to consumer education.

1.Right to Safety :
It is the consumer right to be protected against goods and services which is hazardous to
health or life.

2.Right to be Informed:
The consumer has the right to be informed about the quality, quantity, purity, standard and
price of goods he intends to purchase. Therefore, the manufacture must mention complete
information about the product, its ingredients, date of manufacture, price, precaution of use,
etc. on the label and package of the product.

3.Right to Choose:
The consumer should be assured of freedom to choose from a variety of products at
competitive prices. Every consumer wants to buy a product on his free will. There should be
free competition in the market so that the consumer may make the right choice in satisfying
his needs.

4.Right to Representation (or to be Heard):

The consumer has right to register dissatisfaction with any product and get his complaint
heard. Most of the reputed firms have set up consumer service cells to listen to the
consumer’s complaint and take appropriate steps to redress their grievances.

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5.Right to Seek Redressal:
It is the right to seek redressal against any defect in goods or unfair trader suffered by the
consumer. If the quality and performance of a product falls short of seller’s claims, the
consumer has a right to certain remedies. The Consumer Protection Act requires that the
product must be repaired, replaced or taken back by the seller as provided under the contract
between the buyer and the seller.

6.Right to Consumer Education:

It means right of acquiring knowledge and being a well-informed consumer throughout his
life. He should also be made aware of his rights and the remedies available through publicity
in the mass media.

 Redressal Machinery under the Act

Consumer Protection Councils...

The interests of consumers are enforced through various authorities set up under the CPA.
The CPA provides for the setting up of the Central Consumer Protection Council, the State
Consumer Protection Council and the District Forum.

1.Central Consumer Protection Council

The Central Government has set up the Central Consumer Protection Council, which consists
of the following members:
(a) The Minister in charge of Consumer Affairs in the Central Government who is its
Chairman, and
(b) Other official and non-official members representing varied interests. The Central council
consists of 150 members and its term is 3 years. The Council meets as and when necessary
but at least one meeting is held in a year.

2.State Consumer Protection Council

The State Council consists of:
(a) The Minister in charge of Consumer Affairs in the State Government who is its
Chairman, and (b) Other official and non-official members representing varied
interests. The State Council meets as and when necessary but not less than two meetings
must be held every year.

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 The CPA provides for a 3-tier approach in resolving consumer disputes. The District Forum
has jurisdiction to entertain complaints where the value of goods / services complained
against and the compensation claimed is less than Rs. 20 lakhs, the State Commission for
claims exceeding Rs. 20 lakhs but not exceeding Rs. 1crore and the National Commission for
claims exceeding Rs.1 crore.

 District Forum
Under the CPA, the State Government has to set up a district Forum in each district of the
State. The government may establish more than one District Forum in a district if it deems
fit.
Each District Forum consists of:
(a) A person who is, or who has been, or is qualified to be, a District Judge who shall be its
President
(b)Two other members who shall be persons of ability, integrity and standing and have
adequate knowledge or experience of or have shown capacity in dealing with problems
relating to economics, law, commerce, accountancy, industry, public affairs or
administration, one of whom shall be a woman.
The District Forum can entertain complaints where the value of goods or services and the
compensation, if any, claimed is less than rupees twenty lakhs. However, in addition to
jurisdiction over consumer goods services valued upto Rs.20 lakhs, the District Forum also
may pass orders against traders indulging in unfair trade practices, sale of defective goods or
render deficient services provided the turnover of goods or value of services does not exceed
rupees twenty lakhs.

 State Commission
The Act provides for the establishment of the State Consumer Disputes Redressal
Commission by the State Government in the State by notification.
Each State Commission shall consist of:
(a) A person who is or has been a judge of a High Court appointed by State Government (in
consultation with the Chief Justice of the High Court ) who shall be its President;
(b) Two other members who shall be persons of ability, integrity, and standing and have
adequate knowledge or experience of, or have shown capacity in dealing with, problems
relating to economics, law, commerce, accountancy, industry, public affairs or
administration, one of whom must be a woman.

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Every appointment made under this is made by the State Government on the
recommendation of a Selection Committee consisting of the President of the State
Commission, Secretary -Law Department of the State and Secretary in charge of Consumer
Affairs in the State.
The State Commission can entertain complaints where the value of goods or services and the
compensation, if any, exceeds Rs. 20 lakhs but does not exceed Rs. 1crore.
The State Commission also has the jurisdiction to entertain appeal against the orders of any
District Forum within the State.
The State Commission also has the power to call for the records and appropriate orders in
any consumer dispute which is pending before or has been decided by any District Forum
within the State if it appears that such District Forum has exercised any

 National Commission
The Central Government provides for the establishment of the National Consumer Disputes
Redressal Commission. The National Commission shall consist of:-
(a) A person who is or has been a judge of the Supreme Court, to be appoint by the Central
Government (in consultation with the Chief Justice of India ) who be its President;
(b) Four other members who shall be persons of ability, integrity and standing and have
adequate knowledge or experience of, or have shown capacity in dealing with, problems
relating to economics, law, commerce, accountancy, industry, public affairs or
administration, one of whom shall be a woman.

___________________________________________________________________________

 ANALYSIS OF THE BILL…

 This Act may be called the Consumer Protection Act, 2019.
 It extends to the whole of India including the union territory of Jammu and
Kashmir.
 It shall come into force on such date as the Central Government may, by
notification, appoint and different dates may be appointed for different States
and for different provisions of this Act and any reference in any such
provision to the commencement of this Act shall be construed as a reference
to the coming into force of that provision save as otherwise expressly
provided by the Central Government, by notification.

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  This Act shall apply to all goods and services.

 VARIOUS TYPES OF CONSUMERS EXPLOITATION

 FALSE ADVERTISING
 DECEPTIVE PRICING  
 DECEPTIVE BILLING
 MISUSE OF CUSTOMER DATA

There is a very leading case related to the false advertising where the man just sued a FAIRNESS
CREAM and won Rs 15lakhs.  From promising fairness in a few days to a few weeks, these products are
promoted by the icons of the film industry. Emami’s Fair & Handsome was one of the first fairness
products for men in India, a District Consumer Court in Delhi recently said that the ‘Fair & Handsome’
ads by Shahrukh Khan are misleading and directed Emami to pay an amount of Rs 15 lakh as punitive
damages.

In India, an aware consumer is still far from being empowered. Cut-throat competition coupled
with the greed to be the first, has led manufacturers, sellers and service providers deliver poor quality
products and services, often followed with unethical practices to run away from responsibility. Although
Consumer Protection Bill, 2019 gives consumers the legal weapon to protect themselves, lack of guidance
and clear understanding of the procedure to be adopted render consumers helpless. Thus, despite the
intent, they are unable to seek redressal under the Act.
This course makes aware consumers empowered. It helps lawyers and law students get familiar with the
detailed procedure to file a consumer grievance, process of approaching a Consumer Forum, detailed
descriptions of laws that are applicable, accompanied illustrations and case studies to facilitate
understanding.

 CONCLUSION

 The position is that only those services come within this Act, for which specific payment is been
made such as electricity , telephones , banking, goods of general use, vehicles etc thus the doctors
as well as hospitals including those where treatment is given free such as government hospitals ,
do not come within the Act. The Act incorporates only the supply of hazardous goods, but it does
not impose any strict liability who supply such goods.

So, I think that the bill is not covering the whole area in which a consumer may be affected.
Thus the government should revise the bill and add the missing provisions by which a consumer
may feel comfortable in availing any service or in buying any good.

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  CASES RELATED TO CONSUMER...

1. M/s. Godfrey Phillips India Ltd. v. Ajay Kumar 1:- In this case, The respondent
filed a complaint in respect of an advertisement given by the appellant, alleging unfair trade
practices. The advertisement was issued in newspapers and magazines in 1999 for the cigarettes
manufactured and sold by it under the brand name of "Red & White" in respect of which the
directions have been issued.

The impugned advertisement apart from showing the packet of cigarettes with the aforesaid
brand name stated "Red & White smokers are one of a kind". The advertisement also shows the
smiling face of actor Akshay Kumar holding a cigarette. It also contains the statutory warning
"Cigarette smoking is injurious to health" as well as price of the pack. The complaint was
dismissed by the District Forum as the complainant had also filed a suit in relation to the
impugned advertisement in the Civil Court.

"The case of the complainant is that smoking of cigarette by Akshay Kumar with the slogans
used in advertisement would detract the people from the statutory warning. Seeing comparative
size of the letters etc. the statutory warning in our view loses its prominence which is usurped by
more prominent and attractive Akshay Kumar et al and is sufficient to detract the attention of the
viewers from the statutory warning to the image of Akshay Kumar with the slogan indicating
smokers of Red and White cigarette could be super actor performing all the film stunts without
duplicates."

Thus the court held that the advertisement was misappropriate and violating, so the cigarette
manufacturing company held liable and Shri Ajay Kumar, the petitioner, was paid a sum of
Rs.20,000/- by way of compensation and Rs.5,000/- as cost."

2. K.S. Sidhu v. Senior Executive Engineer:- In this case, the

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. Law of Torts R.K. BANGIA

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