2.

Lock-out is due to an industrial dispute and continues during the period of dispute, Layoff is not
concerned with a dispute with the workmen.
Retrenchmenttermination by the employer of the service of workmen, the termination maybe
for any reason.  but not a measure of punishment by way of disciplinary action

Unit 3: Consumer Protection Law

 Jago Grahak Jago  Consumers are given expired products, and are not made aware of the
dangers they can be exposed to  affects trade and the economy as demand falls and sale
gets hampered.
 2019 act replaced the old Consumer Protection Act, 1986

Brief History of Consumer Protection Act in India

 Always been matter of great concern, ancient India  effective measures were initiated to
protect consumers from crimes in the market place  ancient law givers ably described
various kinds of unfair trade practices and also gave severe punishments for wrongdoers
 In medieval times  muslim rulers developed well organized market mechs to monitor
prices and supply of goods to the markets.
 TODAY  the civil justice system is tainted with deficiencies that discourage the consumer
from seeking legal recourse  the Consumer protection act of 1986  which provided easy
access to justice, had brought a legal revolution in india

Consumer Protection Act 2019

 A Law to protect the interest of consumers

o Has ways and means to solve consumer grievances speedily!
 AIM  To save the rights of the consumers by establishing authorities for timely and
effective administration and settlement of consumers’ disputes
 CONSUMER DEFINITION  a Person who avails the services and buy any good for self-use
 if person buys, a good or avail any service for resail than its not considered a consumer

Key features of the Consumer protection Act 2019:

1. Establishment of Central Consumer Protection Authority (CCPA):

a. Will protect, promote and enforce the rights of the consumers
b. CCPA will regulate cases related to Unfair Trade Practices, and Violations of
consumer rights
 c. CCPA have all rights to impose penalties on Violators and can pass orders to recall
goods etc.
d. CCPA will have an investigation wing  CCPA Headed by Director-General
2. Rights of Consumers:
Provides 6 Rights to the consumers:
a. the right to be protected against the marketing of goods, products or 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, products or services, as the case may be, so as to protect the
consumer against unfair trade practices
c. the right to be assured, wherever possible, access to a variety of goods, products or
services at competitive prices
d. the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate for
e. the right to seek redressal against unfair trade practice or restrictive trade practices
or unscrupulous exploitation of consumer
f. the right to consumer awareness

Deficiency of Service:  consumer can lodge a complaint under consumer protection act if
something is found to be DEFICIENT

 DEFINITION  any sort of imperfection, or defect in the feature, quality, amount, worth,
authenticity, its capacity or potential, and standard which is obligatory to be maintained and
regulated as per the laws and statutes in function or any agreement/contract claimed by the
seller, with respect to the products and goods, is known as deficiency.
 Willful and deliberate concealment of important information, omission or negligence of acts
by seller leading to injury or loss by seller also comes under deficiency of service
 Deficiency can be witnessed in any service sector where there is buyer-seller relationship
 Indian Judiciary on “Deficiency of Services” under Consumer protection Laws
o Indian Medical Association v V.P. Shanth
 Included medical profession and Medical negligence within the scope of the
consumer protection act.
 Consequently empowering the aggrieved to sue for damages for deficiency
in services
o Gurshinder Singh vs. Shriram General insurance Co. Ltd and ors.2020
 Held that insurance claims should not be declined on technical grounds, if
reason behind is satisfactorily explained and proved
 Also held that mere delay in intimating insurance company about theft must
not act as a valid ground to decline or repudiate the claim

Unfair Trade Practices

Its touted as unfair when  in order to promote its services or sale of its goods, supply and
distribution of its products, an entity uses illicit and illegal means to mislead the general public into
opting for in-genuine and deceptive goods and services.

Ex: portraying goods to be of good quality when actually they are inferior
Acc to Consumer Protection Act. E-commerce rules on unfair Trade Practices have been laid down
under the Consumer Protection (E-Commerce) Rules, 2020

 Rules are applicable to all e-commerce portals, inventories, marketplaces and other entities
involved in providing services to customers.
 E-commerce entities are mandatorily required to dispense information like Refund Policy,
Warranty, Exchange Rules, payment options, the mark/quality as portrayed and sellers are
liable accordingly
 These platforms are mandated to answer any query or complaint within 48hrs and shall
provide proper redressal to such consumer complaint within period of 1 month from date of
receipt
 Appointment of a grievance officer is compulsory

Product Liability

 Defined as responsibility of product seller or manufacturer to compensate the consumer for

any harm caused because of the defective or deficient product  it should meet reasonable
expectations
 Product should be both merchantable and marketable
 CPA 2019 is the first legislation that expressly defines and contains provisions related to
product liability
 Nature of Product Liability Law
o Statuary liability on manufacturers and product sellers  very strict in nature
o Derives base from Caveat Venditor  Seller must beware thereby making seller
liable for any harm caused by product to consumer.
o Privity of Contract  is no longer a requirement to sue for product liability
 Types of product Liability
o Manufacturing Defects
o Design Defects
o Marketing Defects
o Breach of Warranty

Remedies available to consumers under the Consumer Protection Act, 2019:

Any claim can be brought against them in case the consumer has suffered any kind of harm or injury
from using the defective product or product service

Remedies against a Product Manufacturer:  Section 84  conditions to claim

1. There is a Manufacturing Defect

2. There is a Design Defect
3. There is non-confirmation to an express warranty
4. There is a marketing defect  no warning of danger in the wrong usage was givent to the
consumer of the product
5. Case where certain specs were to be followed while manufacturing the product and they
have not been complied with

Unreasonably Dangerous goods are defective because they are likely to jeopardize the safety
Remedy against a Product Service provider:Section 85 a product service provider would be
liable if:

1. The service that was given wrt product was not of sufficient and good quality as was
required by law (as per the contract)
2. There was a conscious or negligent act or omission on part of the service provider resulting
in harm
3. Service provider was required to give warnings about some danger in using the product in a
wrong way which wasn’t given  causing Injury
4. There was a breach of warranty or terms of contract of service

Remedy Against a Product Seller:  Section 86  Liabilities by seller are:

1. There was an exercise of enough control by seller in the manufacturing, designing, testing
and labelling of the product
2. While selling product, seller made certain modifications to the manufactured product
3. There was no express warranty by the product manufacturer but seller gave on which wasn’t
met
4. A personal obligation may come on seller if manufacturer cannot be recognised or made
known.  Example Foreign manufacturer and Indian Seller
5. Product Seller did not take proper care of product, inspect or maintain them

Defences against Product Liability Claims:

Consumers may have ill motives in bringing up the claim or simply that the consumer was ignorant
of their own mistake  Unfair to hold manufacturer, or seller or the product service provider liable
 Section 87

In case the consumer himself had modified the sold product at the time of harm which caused the
harm/injury then the consumer cannot bring an action against the product seller

Defences available to a Product Manufacturer

In case product manufacturer hasn’t given adequate warnings and based on a claim brought against
them  its invalid if:

1. Employer bought the product to be used for work and warning were issued to the employer
but the employee was not aware of the same
2. Product was a component in a separate product  all warnings regarding component
product were given  harm was not caused by component product separately
3. Product was to be only used under guidance of an expert and warnings were given to expert
4. Consumer was not in his senses while using the product due to intake of intoxicated agent or
drug (not prescribed)
5. If any such characteristic or danger of a product is to be known by a reasonable consumer 
manufacturer is not compelled to give any warning of that danger
Online Shopping and Product Liability:

Liability on the defendant increases because here the consumer had no chance of looking or
examining the product and the consumer depended upon the seller to sell a product that works
properly and that does not cause any harm to the consumer.
even product Deliverer is to be considered

Liability of a product retailer or delivery service:

it was held that online retailers would be liable for any third-party defects of a product that is sold
on its website.
Examples when liability can be ascertained:
Product manufacturer or retailer would be liable for any kind of False Advertisement on the website

Many problems of shopping which there can be a liability of defendants eg:

 Receiving wrong product

 Damages in delivery
 Not delivered in time

Delivery of gray market items which are illegally sold and which are labelled with a non-actionable
warranty. Consumers can hold the seller liable for such fraud

Liability Related to Online Food Products:

Safety measures to be taken by the seller or manufacturer should be increased. Food traceability in
the case of online food products is important as it provides the possibility of identifying food that
has a safety-related defect

False and Misleading Advertisements:

Can be classified into 2 broad categories:

 Ads that hawk health cures and medications of questionable adequacy and health gadgets of
obscure quality and AID-related false claims
 Other kind of false and misleading ads, fraudulent and deceptive ads  non health related
 violating consumers rti and choice thereby causing monetary loss and intellectual agony

Indian laws and regulations on Misleading Adverts:

1. Consumer Protection Act 2019

a. Provides for Establishing CCPA to prevent unfair business practices in e-commerce
 have power to investigate etc
b. As per legislation all e-commerve platforms must confirm receipt of any complaint
within 48hrs and resolve them within 1 month
ecommerce platforms need to give information about refunds exchanges
c. Legistlation optimises process of resolving consumer disputes at the consumer
council  if acceptance issue is not resolved within 21days  a complaint can be
filed in consumer commissions that have jurisdiction over the residence
d. New law also provides mechanism for solving disputes through mediation and
simplifies the arbitration procedure
2. The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply, and Distribution) Act, 2003 (CTP Act)
 a. Prevents direct or oblique advertisement of cigarette or tobacco merchandise in all
styles of audio, visual and print media and presents that any individual in
contravention might be at risk
3. The Cable Television Networks (Regulations) Act, 1995 CTN act
a. Prohibits anyone form rebroadcasting programs through cable tv unless guidelines
provide for the same
b. Cable providers must ensure that no ad is aired which is offensive to viewers’
decency, morality and religious susceptibilities
4. Other Laws that apply to adverts include
a. Doordarshan/All India Radio (AIR) Advertisement Code
b. Drugs and Cosmetics Act, 1940, Drugs (Control) Act, 1950
c. Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954
d. Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994
e. Pharmacy Act, 1948
f. Prize Competitions Act, 1955
g. Emblems and Names (Prevention of Improper Use) Act, 1950
h. Indecent Representation of Women (Prohibition) Act, 1986
i. Code of Ethics for Advertising in India (ASCI Code), issued by the Advertising
Standards Council of India (ASCI)

E-Commerce:

Rapid developments in the modern age retail trade and technology have led to a marketplace which
is accessible by a click of a button and is no longer shackled by the rigours of distance, location,
space constraints, opening hours, stock limitations or logistical challenges

Applicability  E-commerce Entity “Any person who owns operates or manages digital or
electronic facility or platform for electronic commerce, but doesn’t include a seller offering his goods
or services for sale on a marketplace e-commerce entity”

Rules apply to:

 All goods and services bought or sold over digital or electronic network (including digital
products)
 All models of e-commerce  marketplace and inventory models
 All e-commerce retail, including multi-channel single brand retailers
 All forms of unfair trade practices across all models of e-commerce

Intent to include all forms of ecommerce entities  B2C, B2B. B2B2C  whether or not
incorporated in india  but offering goods and services to consumers in India

Key Obligations Applying to Ecommerce Entities and Sellers:

 E-commerce entities:
o The rules prescribe an elaborate framework for ecommerce entities to oversee and
prevent any unfair trade practices or misleading advertisements on part of the
sellers on their platform and obligate them to ensure that they do not engage in any
price manipulation and have in place adequate internal mechanism for the redressal
of complaints by consumers.
 o Government has now created a uniform governing code for all e-commerce entities
in India (with or without foreign investment) and resolved the abovementioned
disparity.

 Explicit and Affirmative Consent of the Consumers

o Ecommerce entities are now required to obtain an express consent from its
consumers for the purchase of any good or service offered on its platform and this
consent can no longer be recorded automatically, not even in the form of pre-ticked
checkboxes.
o A consumer typically accepts the terms and conditions of the marketplace (which
are often structured as a click wrap agreement) only once at the time of making an
account with such marketplace (and not at the time of every purchase) and these
terms and conditions continue to apply every time the consumer makes a purchase
on the marketplace.
o this requirement appears to be more relevant in cases/in respect of marketplaces
which allow the consumers to shop and check out from the website as a „guest’
without any registration.
e-commerce entities that allow a consumer to checkout as a „guest‟ would now
need to ensure that
o For GUEST  before a consumer checks out with the purchase, the consumer is
presented with the terms and conditions of such purchase and is offered with an
opportunity to read and provide his/her express consent for such purchase
 Price Manipulation:
o Price of goods or services cannot be manipulated to gain unreasonable profits,
underlying intent behind this is to ensure a level playing field is maintained for all
sellers and no unfair method or deceptive practices are adopted by an e-commerce
entity
o Listing goods at a price higher than MRP is an offence under the CPA
o All e-commerce entities  would now need to ensure that all sellers compete
without any favouritism or bias in a transparent manner
 Consumer Discrimination and Disclosure of Preferential Treatment to Sellers
o E-commerce entities need to ensure there isn’t any discrimination b/w consumers of
same class or make any classification among consumers which directly/indirectly
affects the rights of consumers
o There is no Clarity under E-Commerce rules on what constitutes a same class of
consumers or same category of sellers and how an e-commerce entity can segregate
it consumers or sellers into classes
o Therefore, the discretion in respect of classifying consumers into different classes or
sellers into different categories seems to be with the e-commerce entities and (in
practice) may be driven by parameters such as volume of sales/purchase, period of
association and type of products/services), subject to the rider that same treatment
has to be ensured to all consumers or sellers (as the case may be) forming part of „a
particular class‟.
 Cancellation Charges  No charges can be levied on a consumer unless similar charges are
borne by an entity if it unilaterally cancels an order placed by a consumer for any reason
  Timely Refunds all requests must be done within A REASONABLE PERIOD OF TIME 
what constitutes this differs from one person to another, one commerce entity to another

Grievance Redressal Officer:

Mandatory for e-commerce entitites to appoint a grievance redressal officer and details are required
to be displayed on the online platforms  this officer needs to acknowledge complint withing 48hrs
of receipt of complaint and redress the complaint within 1 month of date of receipt

Nodal Person of Contact:

There must be a nodal person of contact or alternate senior designated functionary to ensure
compliants within CPA and e-commerce rules

The requirement to identify and designate a senior official for overseeing and ensuring compliance
under the consumer protection law

Complaint Token  essential to provide a ticket number for each consumer complaint to track the
status of their complaint

Sellers  obligations cast onto sellers listing goods / services are:

 Written Contract:
o Mandatory for a seller to enter into a written contract with an e-commerce entity in
order to undertake any sale of goods and services on the platform of such e-
commerce entity.
 False or Misleading Advertisements:
o Each seller needs to ensure that
 it does not impersonate itself as a consumer and post reviews about the
goods or services sold by it or misrepresent the quality or any features of
any goods or services
 it would not refuse to take back the goods or refuse to refund the sale
consideration, where the goods or services in question are defective
 it would not advertise the goods or services offered in such a manner that
are inconsistent with the actual characteristics of such goods or services
 The images/description used in advertisements of goods or services offered,
are consistent with the actual characteristics of such goods or services
 Grievance Redressal Officer  extended to Sellers too
 Disclosure: To weed out unscrupulous sellers
o information includes the legal name and address of the seller, contact details,
customer care number, applicable GSTIN, PAN, MRP breakup, postage and handling
charges, conveyance charges, applicable taxes, country of origin and expiry date of
the goods

Consumer Complaint Redressal Mechanism

In case of deficiency in services, the consumer can approach consumer courts constituted in the act
3 Tier system of courts where aggrieved consumers can approach as per valuation of matter in
concern

Steps for Consumer to claim

1. Grievance Redressal mechanism of Service provider: first step is to approach grievance

redresal mechanism of service provider or authority of service provider
2. Sending of Legal notice: Prior to availing of statutory remedies and approaching the
Consumer Forum, it is advisable that the aggrieved consumer exhausts any alternative legal
remedies available to them
3. File Consumer Complaint before appropriate forum: If the service provider fails to comply
with the terms and conditions mentioned in the legal notice or disagrees to compensate for
the loss caused, the complainant has the right to file a legal complaint in the Consumer
forum.

CPA introduced  Central Consumer Protection Authorities

Central Authority shall consist of a Chief Commissioner and such number of other Commissioners as
may be prescribed, to be appointed by the Central Government to exercise the powers and
discharge the functions under this Act.
Central Authority shall consist of a Chief Commissioner and such number of other Commissioners as
may be prescribed, to be appointed by the Central Government to exercise the powers and
discharge the functions under this Act.

Consumer Dispute Redressal Commission (CDRC)

CDRC is empowered to resolve complaints with respect to unfair and restrictive trade practices,
defective goods and services, overcharging and goods which are a hazard to life and safety.

 District Consumer Disputes Redressal Commission (previously known as the District Forum):

Mediation  Alternate dispute resolution mechanism in order to resolve the consumer dispute in a
much faster way without having to approach the Commissions

Unit 5: NSPE Code of Ethics:

Fundamental Canons: