Consumer Protection Act an overview:

The consumer movement in India is as old as trade and commerce. In Kautilya‟s Arthashastra,
there are references to the concept of consumer protection against exploitation by the trade
and industry, short weighment and measures, adulteration and punishment for these offences.
However, there was no organized and systematic movement actually safeguarding the interests
of the consumers. With the advent of the 20th century due to rapid industrialization and
multifaceted development in India after the Independence, there appeared a flood of
consumer goods and services in the Indian Market, which almost changed the relationship
between the consumer and the trader. Technological advancements in the field of media led to
flooding of advertisements of goods and services further worsening the otherwise grim
situation. Lack of consumer awareness, illiteracy, poverty, etc. further led to the exploitation of
consumers . Awareness of consumer rights varies in different regions in the country. It is very
poor especially among the population in rural and far-flung areas of the country. Compared to
the developed countries, the levels of consumer awareness in such a vast country with a large
population like India is much lower. This is rooted in economic inequality, low levels of literacy
and ignorance. Because of this, consumers are not able to assert their rights and on many
occasions are exploited by the trade and industry and service providers. Protecting and
promoting the welfare of consumers has thus become one of the major concerns. Globalisation
and liberalisation of trade and business has resulted in many products and services being
available to the consumers. Growth in economy has resulted in increase in the purchasing
power of the middle class section, which is the largest segment of the population. This has
necessitated giving high priority for the protection of the consumers and promotion of
responsible consumer movement in the country. Modern technological growth and
complexities of the sellers‟ techniques, existence of a vast army of middlemen and unethical
and untruthful advertisements have aggravated the situation of consumer exploitation. The
consumer has to be aware of his rights and play a key role. The success of consumerism is a
strong function of consumer awareness and to avoid exploitation consumer must become
knowledgeable.

The main objectives of the consumer protection programme are:-

(i) To create suitable administrative and legal mechanisms which would be within the easy
reach of consumers and to interact with both Government and non-Governmental
Organizations to promote and protect the welfare of the consumers.

(ii) To involve and motivate various sections of society including consumer organizations,
women and youth to participate in the programme.
(iii)To generate awareness among consumers about their rights and responsibilities, motivate
them to assert their rights so not to compromise on the quality and standards of goods and
services and to seek redressal of their disputes in consumer fora, if required.

(iv) To educate the consumers as to be aware of their rights & social responsibilities

The rights of consumer which are being sought to be promoted and protected through the
legislative mandate available under the Consumer Protection Act, 1986 inter- alia include:

(a) The right to be protected against marketing of goods and services which are hazardous to
life and property;

(b) The right to be informed about the quality, quantity, potency, purity, standard and price of
goods or services, as the case may be to protect the consumer against unfair trade practices;

(c) The right to be assured, wherever possible to access to variety of goods and services at
competitive prices;

(d) The right to be heard and to be assured that consumers interests will receive due
consideration at appropriate fora;

(e) The right to seek redressal against unfair trade practices or restrictive trade practices or
unscrupulous exploitation of consumers; and

(f) The right to consumer education

From all these rights, it is the right to consumer education that can be said to be of paramount
importance, since this is the gateway through which all the rights can be secured. An aware
consumer not only protects his own rights but also induces efficiency in the economy which
enables a country to become globally competitive.

The Salient Features of the Act are as under:

(i) The Act provides for establishing three-tier consumer dispute redressal machinery at the
national, state and district levels.

(ii) It applies to all goods and services.

(iii) It covers all sectors, whether private, public or any person.

(iv) The Act provides for relief of a specific nature and also for compensation to the consumer
as appropriate.
 (v) The Act also provides for setting up of Consumer Protection Councils at the Central, State
and District levels, which are advisory bodies to promote and protect the rights of the
consumers.

(vi) The provisions of the Act are in addition to and not in derogation of the provisions of any
other law for the time being in force.

Consumer Protection Act 2019

Consumer Protection Act, 2019 is a law to protect the interests of the consumers. This act was
inevitable to resolve a large number of pending consumer complaints in consumer courts
across the country. It has ways and means to solve the consumer grievances speedily.

What is the Definition of the consumer?

As per the act; a person is called a consumer who avails the services and buys any good for self-
use. Worth to mention that if a person buys any good and avail any service for resale or
commercial purpose, is not considered a consumer. This definition covers all types of
transactions i.e. online and offline.

Key features of the Consumer Protection Act, 2019

1. Establishment of the Central Consumer Protection Authority (CCPA):
The act has the provision of the Establishment of the CCPA which will protect, promote and
enforce the rights of consumers. The CCPA will regulate cases related to unfair trade practices,
misleading advertisements, and violation of consumer rights.

The CCPA will have the right to impose a penalty on the violators and passing orders to recall
goods or withdraw services, discontinuation of the unfair trade practices and reimbursement of
the price paid by the consumers.

The Central Consumer Protection Authority will have an investigation wing to enquire and
investigate such violations. The CCPA will be headed by the Director-General.

Rights of consumers:
The act provides 6 rights to the consumers;
i. To have information about the quantity, quality, purity, potency, price, and standard of goods
or services.
ii. To be protected from hazardous goods and services.
iii. To be protected from unfair or restrictive trade practices.
iv. To have a variety of goods or services at competitive prices
Prohibition and penalty for a misleading advertisement:
The Central Consumer Protection Authority (CCPA) will have the power to impose fines on the
endorser or manufacturer up to 2-year imprisonment for misleading or false advertisement
(Like Laxmi Dhan Warsha Yantra).

Worth to mention that repeated offense, may attract a fine of Rs 50 lakh and imprisonment of
up to 5 years.

Consumer Disputes Redressal Commission:

The act has the provision of the establishment of the Consumer Disputes Redressal
Commissions (CDRCs) at the national, state and district levels.

The CDRCs will entertain complaints related to;

i. Overcharging or deceptive charging

ii. Unfair or restrictive trade practices
iii. Sale of hazardous goods and services which may be hazardous to life.
iv. Sale of defective goods or services

Who are consumers’ examples.

• A jeep was purchased to run it as a taxi. The question was whether the buyer of the jeep
was a consumer under the Act. The Rajasthan State Commission held that to use the
jeep as a taxi with the object to earn profits was a commercial purpose, and therefore,
the buyer/user was not a consumer within the meaning of the Act. [Smt. Pushpa
Meena v. Shah Enterprises (Rajasthan) Ltd. (1991) 1 CPR 229].
• L Ltd. purchased a computer system from Z. The computer system was giving constant
trouble and Z was not attending it properly. L Ltd. filed a complaint against Z with the
National Commission. Z contended that L Ltd. was not a consumer under the Act
because computer system was used for commercial purposes. L Ltd. argued that
computer system was not directly used of commercial purposes rather it was used to
facilitate the work of the company. The Commission rejected the argument on the
grounds that the system made part of the assets of the company, and its expenses were
met by it out of business income. Thus the said purchase was a purchase for commercial
purposes and L Ltd. was held not to be a consumer under the Act.
• A buys a truck for plying it as a public carrier by himself, A is a consumer.
• A buys a truck and hires a driver to ply it, A is not a consumer.
• A has one cloth shop. He starts another business of a photocopier and buys a photocopy
machine therefor. He hasn’t bought this machine exclusively for the purpose of earning
livelihood. He is not a consumer under the Act.
• A passenger getting railway reservation after payment is hiring service for consideration.
• A landlord neglected and refused to provide the agreed amenities to his tenant. He filed
a complaint against the landlord under the Consumer