CONSUMER PROTECTIOON

LEARNING O BJECTIVES
you should un derstand:
ding
his chapter,
Protection
Consumer
ffor
Need or
Veed
R i g h t s o f C o n s u m e r s

C o n s u m e r R e s p o n s i b i l i t i e s

Consumer Protection
Methodsof 1986
Protection Act,
Consumer
Protection Act, 2019
Consumer
Consumer Organisations and NGOs
Role of
Rol

of marketing, consumer is treated as the king and business is

he moderm concept But in reality consumerS
satistaction to consumers.
o rovide maximum poSsible them. Misleading
due to their ignorance and lack of unity among
expioited are some
adulterated and unsafe products, underweighing, overcharging,
sments. businessmen
of consumers. Unscrupulous and greedy
eamples of exploitation
As a result, consumers are deprived of their basic rights.
ar consumers.

PROTECTION
NEEDFOR CONSUMER
www.
uction of consumers is necessary due to the following reasons:

basic purpose of business is to

Consumer
the purpose of business: The
is

2nd satisfy customers. Customer is the foundation of business and keeps it in

I n order to satisfy and retain customers, business must provide goods and
os of
right quality and quantity and at right prices.
to serve human beings
ess is means ofhuman welfare: Business exists
a

a n end in itself. It cannot survive and grow unless consumers and other
h are
served well.
iple objectives: Profit making cannot be the sole objective of business.
e t yconsumers.
y including business is expected to take care of the interests of all sections of

A.Grow
Condh social justice: Growth with social justice is the aim ofour country.
CO describes that the country is a socialist and secular democratic
Consumer rotection
s láidon
d protect is in accordance with the Directive Principles of State
down i s Our Constitution.
371
 372 ISC Commerce for Class XI

5. Stakeholder approach: The cooperation and support of several o.

involved in the functioning and sucecess of business. The groups includeo group
consumers, employees, public and government. They have a stake in busine
are, therefore, known as stakeholders. Business must protect the interests of SS and
Tests of all
stakeholders including customers. the
6. Responsibility with power: Business exercises considerable powe
and
influence over society. It ereates and moulds food, dress habits and life styles Ind
responsibility of business to use its power in such a way that the interests of s e
in general and consumers in particular are not damaged. society
7. Theory of trusteeship: According to Mahatma Gandhi, businessmen are trieto
of the society's wealth. They should use this wealth for the benetit of Istees
people. Gandhi
andhi
said,"A customer is the most important visitor on our premises. He is not dependent o
n
us, we are dependent on him. He is not an interruption in our work. He is the
purpoke
se
of it. He is not the outsider in our business. He is a part of it. We are not
doing him a

favour by serving him. He is doing us a favour by giving us an

opportunity to do so"
8. Business ethics: Leading business houses all over the world have been founded
on ethical values and they have followed high standards of ethies. Business withou
moral values cannot be tolerated for long in any civil society. Therefore, consumer
protection is the ethical obligation of business.
9. Self-interest: Since economic liberalisation and globalisation, Indian firms are
exposed to competition from multinational and imported products. They must provide
quality goods and become consumer-oriented to survive in the race ofcompetition.
Moreover, government has enacted laws to protect the interest of consumers. Business
firms which violate these laws are likely to lose customers and goodwill forever. It is,
therefore, in the interest of business itself to protect the rights of consumers.

5ARIGHTS OF CONSUMERS

The Consumer Protection Act provides for the following rights of consumers:
1. The Right to Safety: This is the right to be protected against the marketing
various risks involved in
of goods which are hazardous to life and property. There are

the consumption and use of products, such as food, drugs, toys, electrical appliances,
or even
sealed properly, may cause injury to life
etc. For example, gas cylinder, if not
risks.
death. The consumers have the right to get protection against such
them in
Products should not cause any physical danger to consumers or put
due to any reason. Consumers must have assurance regarding quality, reliability
difficulty common household items
now availableto
and performance. There are so many n
harmful substances. For example, artificial colours
consumers that contain potentially
liver. With the advancement of science
and technolog),
food products can damage the responsibility
consumer products have
become highly complex and intricate. Therefore,
on producers and
distributors.
for their safety should be fixed abou
Informed: The consumer has the right
to be informed
2. The Right to be
standard and goods he intends
price of the
the quality, quantity, potency, purity, and distributor to give compe
manufacturer
of the
purchase. It is the responsibility its ingredients, date of
manutactue
informations about (a) the product including
 Consumer Protection

and
use
taken in the
to be value of the
if any, reuse
precautions,
and
the
th serviceability
i n f o r m a t i o n

c..
elc
(b)
(b)
durability, Such
cificatio1s, etc.
product.
(C) strength,
product,
use of the to buy a

f the,
product.
and
in
risks the e x e r c i s e his
decisions
advertising,
effects
salnance ide from deceptive
iin
ntte
ellligently
to
a d u c t . ( a )t h e consumer
protect the consumer

the meant to
v?uldenable
goods
g h tto informati
warranties,
etc.
access to a variety of
and should be assured to sell
labelling The ccoonnss u m e r techniques
e ing Choose:
aggressive selling
seller should not products.
use
Righti the alternative
3.The This means should be freedom to choose from
s2mpetitive There at competiiv
of products
the consumer.
market. enough varieties
If choice.
in the make a free
the
p r o d u c tt o t
n
This
r e q u i r e sf r e e . consumers have the opportunity to dissatisfaction
market,
in the to register his
s areavailable

The consumer has a right to make

Right to
be Heard: includes the right
he forums. This right The
heard at appropriate bodies.
at complainthis in the government
and in other policy making
t and to representation Therefore, grievances
without the right to be heard.
meaningless
T tree rights are heard and considered.
must be:
aims of consumers m e a n s the right to get
claims and complaints
Seek Redressal: lt
and

5. The Right to
or sellers due to unfair trade practices and exploitation
by them.
manufacturers ofa
eied against if the performance, quality, etc.,
Teconsumer has been granted the right of redress
or taken back by the seller.
unsatisfactory. The product must be repaired, replaced
mduct is
doubts and grievances of consumers.
The right seek redressal will reduce post-purchase
to
aware of his
Education: The consumer must be made
6. The Right to Consumer
nehts and the remedies available to
him. This will help to make consumers conscious and
businessmen. An ignorant consumer cannot escape
motect themselves against frauds by
sellers.
cheating and may not come forward to seek redressal against malpractices by
1. The Right to Healthy Environment: Consumers have the right to be protected
against environmental pollution so as to improve the quality of life. This right includes
pruection against degradation of environment. Non-renewable resources of the country
eed to be conserved for future
generations.
CONSUMER RIGHTS AT A GLANCE
Right to safety: It is the right to be protected against the marketing of goods which are
hazardous to life and property.
Kight to information: It means the right to be informed about the quality, quantity,
Purly, Standard and price of goods. It seeks to protect consumers against fraudulent and
misleading advertising and labelling.
3 Right
ht to choice: It is the right to be assured access to a variety of products and services
at competitive prices.
4. R
t o be heard: It means the right to be heard and assured that consumer interests
wll receive full and sympathetic consideration at all appropriate forums.
ght to seek redressal: It is the right to get relief against unfair trade practices or
unscrupulous exploitation.
6. ght
Right toto education:
edu It means the right all about your rights as a consumer.
to know
ight to healthy environment: It is the right to a pollution-free environment.
 ISC Commerce for
Class XI
374
15.3 CONSUMER RESPONSIBILITIES

alone cannot be expected to

and voluntary organisations
Government
themselves will have to nd
forward and
assume some
come assumprote t
consumer rights. Consumers are as followe
their exploitation. These responsibilities
responsibilities stop
to
Consumers must be aware oftheir own rights. Theu
() Erercise the rights: must
exercise these rights while purchasing products and services from the mart
(i) Ask for full information: Before buying a product or service, consumers must
tkets
ask for complete information about the quality, utility, price, etc. This
ensure right purchase decisions. The consumers should not depend entire
will
ey
on the seller.
(iin) Be quality conscious: Consumers must look for quality certification mo
marks
like ISI, Agmark, FPO, Woolmark, Pure Cotton, etc. while making purchases
This will help to eradicate the problems of adulteration and spurious product

(iv) Insist on cash memo: give cash memo. Consumers need

A seller is bound to
cash memo as a proof of purchase for claiming compensation against defect
in the goods purchased. Moreover, by insisting on cash memo consumer
er
can ensure that the Government does not lose sales tax revenue
advertisements: Advertisements often exaggerate
() Don'Y get carried away by
the utility of goods and services. Therefore, they should compare the uses of
alternative products given in advertisements. The sponsor of the advertisemem
should be informed of discrepancy, if any.

(vi) File complaints: When

ignores his exploitation by traders, he
a consumer

business practices. Therefore, consumers

should file
encourages corrupt
complaints for redressal of their genuine grievances.
Know Your Responsibility
and price before making any purchases.
Obtain full information regarding quality
advertisement.
Be careful about false and/or misleading
marks like ISI/Agmark, etc. as and where available for
Purchase goods having quality
safety and quality. card duly
receipt/cash memo for purchases made and guarantee/warranty
Obtain proper
and signed by the seller,
wherever applicable.
stamped of defective
Consumer Forum for redressal of consumer grievances against sale
Approach restrictive trade practices.
goods or deficient services or adoption of unfair or

PROTECTION
5.4 METHODS OF cONSUMER Business community can
is
1. Self-Regulation by
(Self-help):
Business
self-discipline. Business should adopt codea
ensure c o n s u m e r protection
through
They should formulate app
and
manner.
behave in a more responsible
conduct so as to Self-control will help to avoid government control. lta
consumer-oriented marketing. ness

play a vital role in ensuring that busiu

associations and chambers of
commerce can

firms do not exploit consumers.

 Consumer Protection 375
(wareness:
ss:
aess: The himself must be alert and
consumer
The cons
mer well-informed.
by sspeaking and acting against all forms of
ohts by
O w n
ights exploitation.
is help and consumers rs must not permit dishonest businessmen
theves help
to

pame
Assoc
r
c i a t ions: Consumers of the country must unite themselves to
i o n s

sacated consumers should raise their voice and participate

educated c o n s u

inCOnsumer nisations.
Consumer associations and anisations.

s)can educate
non-government
educate and awaken consumers. These bodies can take a
a l fo fc o n s u m e r s .
Consumer movement in India is, however, in its
e o v e r r u r a lp u b l
public is not volved in consumer movement.
rilrol (Legislative Measures): Government has passed several
inernmentrd of consumers. All the wings of the government-legislature,
cor
of
protection
can
assistin consumer protection.
he
measures provided provided by the Government for protecting consumers in

ZVCNDelo

India Radio.and
Radio Doordarshan telecast regular programmes on
India
Alltection.
P u b l i c i n y :

Film documentaries and video documentaries have been

sumer
protec

educate consumers. The Ministry publishes a quarterly journal

ared to e d u c a t e

directories and brochures on consumer affairs. World

hoktaJagaran, lagaran',
celebrated on 15th March every year.
er Rights Day is
Self-regulation

Consumer protection Consumer self-help

Govermment control

Consumer associations

Fig. 15.1 Means of Consumer Protection

and in order
Awards: Government of India offers awards to youth women

wencourage their participation in consumer protection.

introduced
Lnironment-friendly products: An 'eco-mark"'scheme has been
adverse
to reduce impact of products
unonvale manufacturers and importers authorised to use the
M ne environment. Under the scheme, producers are
conditions.
Umark label on products which satisfy the prescribed
Consumer welfure fund: Government of India has created a fund for the welfare
education, training and
cons
Consumers. This fund is to be utilised on consumer

and complaint-
guidance
land Consumer education, setting up counselling,
adling facilities., setting up of product testing laboratories, etc.
Lok adalats: In a lok adalat, the aggrieved consumer can directly present
f n matter and take the
The officials of the concerned firm discuss
It is a
ppropriate
dy decisions. This method
saves time and money of people.
*edySOrnomical
and economi redressal system. Delhi Development Authority, Delhi
Iransp ort Corporation,
POration, Mahanagar Telephone Nigam
Limited and Indian
Ralway organ
ganise lok adalats firom time to time.
376 ISC Commerce for Class XI
( Public interest litigation: In this system, any individual or
organisation.
writ petition in the court in the interest of a weak individual or grou can e
may not be able to seek legal remedy his
on own.
onsumers, minoe
Consumers,
poor, environmentalists, students are examples on whose behalf Such n , minorities,
alf such petitions
have been filed for remedial action.
(g) Consumer redressal forums: The Consumer Protection Act,
a judicial machinery for redressal of
1986, Drov
consumer grievances.
District F
State Commissions and National Commission have been
and economical settlement
set up for rums
for speedy
of consumer disputes.
15.5 CONSUMER PROTECTION ACT, 1986
The Consumer Protection Act, 1986, was
passed to promote and protect the rights.
customers. It seeks to provide a speedy and simple redressal to consumer ts of
Consumer Protection Act has specified consumer rights given above. It grievances T
provides for th
setting up of a three-tier quasi-judicial machinery. This machinery has been
to provide time-bound relief to consumers. Remedies available
authorised
consumer are:
to an aggrieveded
(a) Removal of defects in goods or deficiency in
service
(b) Replacement of defective goods with new goods of similar
description.
(c)Refund of price by the seller.
(d) Payment of compensation by seller for any loss suffered by the consumer
(e) Withdrawal of hazardous goods from the market.
f) Discontinuance of unfair and restrictive trade practices.
The Consumer Protection Act makes provision for the setting up ofthe following
authorities:
1. District Forum: The State Governments are required to establish District
Forums in each district. The important features of District Forum are as under:
(a) Each District Forum consists of a chairman and two members appointed
by the State Government. It has the powers of a civil court for enquiring
into any complaint, i.e., summoning and enforcing attendance of witnesses
examining them on oath, receiving documents, evidence, etc.
(b) A District Forum can receive consumer complaints where the value of goous

or services and the compensation claimed is not more than 25 lakhs.

services
complaint can be filed by a consumer to whom goods are sold
or
(c) The
rendered, or any recognised.consunmer association.
(d) On receiving the complaint, the District Forum shall refer the complaint
the opposite party concerned, and send the sample of goods for testing
laboratory. The opposite party is the seller, manufacturer or any organisa
against whom the complaint has been filed. there

(e) The District Forum after being satisfied that the goods are defectiveor cing
is some unfair trade practice can issue an order to the opposite party
 le thedefect or replace the Consumer Protection 377
i cmpens, nsation to the
nsumer for lossgeods, or
return the
arder of the District or
injury, etc. price paid,
Forum
r 1ihun
30da
30 days can be filed to
the State
State Commission is set
sion: State
d10 the boundaries of the up by the State
concerned.Government
s Testricted

state and
he working
of a
t h m

State The Consumer

Commission as under:
don7

lgys

sion shall
47

e
e Commission: consist of a President
of a ioh Cou
High Court and two other who either is or
has been
udge
ointedby athe State Government members. All the three
shall be
se complaints can be filed where the h of gor
sation claimed is more than 20 lakhsvalue 0s rvices and
ainst
The
the orders of any
against the
appeals
(
District Forum
S t a t e Commission.
can also be filed before

State
The
State ommission is required to refer the
rty ncened and send the sample of
ncerned and complaint to the
goods for retesting in a opposite
necessary laboratory,
he
ate Commission after
being satistied that the
goods were
issue
ISSue order directing
an une
opposite party to either remove thedefective
onlace
Teplac the goods or return the price defect,
paid, or pay compensation to the
omsumer for loss or injury, etc.

eson who is aggrieved by the order

of the State
Commission can appeal
s order to the National Commission within
30
days.
Vufional Commission: The National Commission is set
ma. The salient features up by the Central
and provisions of the Act pertaining to the National
are given below:
i shall consist of a
President who is or has been a Judge of the
LDunt and four
other members Supreme
appointed by the Central Government.
ACOmplaints pertaining to those goods or services and
aue 1S more than 100 lakhs can be filed. compensation whose
C against Appeals the order of any
Lommission can also be filed
before the National Commission.
TheNaional Commission
shall have the
aling with cases and follow the same powers as that of a Civil Court
wemment. procedures prescribed by the Central
The Naic
hdCommission
afe has the power to issue orders for recall of defective
e the products for
replacement or removal of deficiency in service. It can
loss ormanufacturer comply with safety provisions and pay compensation
rrloss
inijury causea.
aagainst the order
Out r f
378 ISC Commerce for Class XIl

Salient Features of the Consumer Protection Act

(The Act applies to all goods and services unlesS specifically exempted
Government of India. exempted by the
(ii) It covers all sectors whether private, public or
cooperative.
(iin The Act provides remedy in addition to those available
under other laws,
words, the provisions of the Act are compensatory in nature. In
other
st

(iv) The Act

prescribes consumer
rights relating to safety,
representation, redressal and education. information, cho:
noice,
()The Act provides for a three-tier judicial
machinery
and National Commission. In addition, Consumer District
Forum, State Commisci
Protection Councils have ons
at both Central and State levels. These been . set
are advisory bodies. tup
(vi) The term 'consumer' is defined as (a) one who buys goods or hires
consideration; (b) any user of such goods with the approval of buyer and services fo
services which is availed of with the approval of the hirer of the beneficiarya
uses goods bought or services hired
services, and (c) any one wh
exclusively for ensuring livelihood by self-emplovment
(vin A complaint can be filed
by a consumer or any voluntary consumer organisation which
is registered by the Government.
(vii) A complaint must be filed within two years of the purchase of goods or hire of
service
(ix)
Complaints can be filed with respect to (a) fraudulent practices of traders and
manufacturers; (b) defective goods; and (c) deficiency of service.
(a) Every complaint must be disposed of as speedily as possible and within three months.
If the complaint requires analysis or testing of
goods, it must be disposed of within
five months.

Who is a Consumer?
Consumer means any of the following persons:
1. A 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 defemed
payment. The term includes any other user of such goods when such use is made
with the approval of the buyer. The term 'consumer', however, does not include
person who obtains such goods for resale or for any commereial pupose
2. A person who hires or avails of any services for consideration which has been
paid or promised, or partly paid and partly promised, or under any system or

deferred payment. The term includes any other beneficiary of such servic
with the approval of the first mentioned person. But a consumer does o
include a person who avails of such services for any commercial purpos

Who is not a Consumer?

not
According to the Consumer Protection Act, 1986 the following persons are
consumers.
) The person who obtains goods for resale or commercial purposes.
(i) The person using goods without the approval of the buyer.
 eficiary
ho is bene
of service without the approval of the hirer
person
d serice who
abtains
obtai goods/services without consideration.
hepersom
Complaint?

Fie
a complaint
under the Act
a
file
an
under the Companies Act,
onsumer; o r

umeconsumer association registered

Voluntary consumer

other law for the time being in force; or

der any
9 5 6o r u n d e r

orany State Government; or

6 overnment
the
theC e n t r a l
where there are numerous c o n s u m e r s having
o n eo r m o r e
r e

consumers,
consumers

S a m ei n t e r e s t ; o r

consumer, his legal heir representative.

or
ath of a
means any allegation in writing made by a complainant
mplaint
m case

aplaint
or a restrictive trade practice has been adopted by
fair
trade
trade practice
practice

provider:
an service

or
amy
trader
agreed to be bought by him suffer fromn one or more
hotcht
gO0dsb ou by him or

detects;
of, or agreed to be hired or availed of, by him suffer
vices.
hired or availed
deficiency
in any respect;
fom
service provider, as the case may be, has charged for the goods or

a trader or
complaint, a price in excess of the price-
mentioned in the
for the services
under any law for the time being in force;
o) fixed by or

package containing such goods;

b) displayed on the goods any
or
for the
on the price list
exhibited by him by or under any law
() displayed
time being in force;
0) agreed between the parties.

"goods which will be hazardous to life and safety when used are being offered
for sale to the public:
incontravention of any standards relating of such goods as
to safety
required to be complied with, by or under any law for the time being in
force,
6) if the with due diligence that the goods so
netradertrader could have known
offered unsafe
Services which
are to the public.
of th hazardous, are be hazardous to life and safety
or likely to
the public when
when used, are being offered by the service provider which
such person could have known with due diligence to be injurious to life and
ion
Safety
With a view
to under the Act;
obtaining
Defect: 1t means any relief provided by or

qantity eans any fault, imperfection or shortcoming in the quality,

 for Class XI
380 ISC Commerce
or under any contract. e
the time being in force
under any law for expres
oever o
or
or as is claimed by
the trader in any manner whatsoeyver inin
implied, relation
to any goods.
shortcoming or inadeqUacy:
Deficiency: It means any fault, imperfection,
quality,nature and manner performance which is required to be main
of
force or has been undera
by or under any law for the time being in
contract or otherwise in rel
be performed by a person in pursuance of a
to any service.

W hom the Complaint can be Filed?

Against
file complaint under the Consumer Protection Act, 1986, a
A 'consumer' can a
gainst
the following
1. Trader: The term "trader" in relation to any goods means a person who selle
distributes any goods for sale and where such goods are sold or distributed in packa

form, includes the packer thereo

2. Manufacturer: The term "manufacturer"
means a person who:

(i) makes or manufactures any parts thereof; or

goods or

(ii) does not make or manufacture any goods but assembles parts thereofmade
or manufactured by others and claims the assembled product to be goods
manufactured by him; or

(iii) puts or causes to be put his own mark on any goods made or manufactured
manufacturer and claims such goods to be goods made or
by any other
manufactured by him.

3. Supplier (whether private or public or a cooperative) of services.

15.6 CONSUMER PROTECTION ACT, 2019

with its
comes in to force from 20 July 2020,
The Consumer Protection Act, 2019
Protection Authority
establishment of the Central Consumer
salient features including the
enforce the rights of consumers.
(CCPA) to promote, protect and
Establishment of the CCPA: The CCPA
will protect, promote and entorce
1. trade practices,
cases related to unfair
c o n s u m e r s . The CCPA will regulate
therights of
violation of consumer rights.
misleading advertisements and
It is empowered to:
Conduct investigations into violations of consumer rights and insiuu

complaints/prosecution.

.Order recall of unsafe goods and services.

Order discontinuance ofunfair trade practices
and misleading advertisemenl
manufacturers/endorsers/publishers of misleaus
Impose penalties on

advertisements.
 Consumer Protection 381
F-commerce
Rules on E -
Trade Practices: The government will
and Unfair
whose broad
e
umer Protection (E-commerce) Rules, 2020 under the Act
C o n s u m e r

grven
N below:

are
Sions
mmerce entities are required to provide information to consumers relating8
toreturn, refund, refund,exchange, warranty and guarantee, delivery and shipment,
of payment, grievanc redressal mechanism. payment methods,
security
modes
moo

f payment
of ngyment methods, charge-back options and country of origin.
The Consumer Protection (E-commerce) Rules, 2020 are mandatory and are
The
not advisories.

Sellers cannot
refuse to take back goods or withdraw services or refuse
efunds, if such goods or services are defective, deficient, delivered late or
if they do not meet the description on the platform.
The rules also pronibit the e-commerce companies from manipulating the
price of the goods or services to gain unreasonable profit through unjustined

prices
3. Product Liability: A manufacturer or product service provider or product
sler will be held responsible to compensate for injury or damage caused by defective
ndut or deficiency in services. Basis for product liability action:
mOdua

Manufacturing defect.
Design defect.
Deviation from manufacturing specifications.
Notconfoming to express warranty.
Failing to contain adequate instructions for correct use.
Service provided-faulty, imperfect or deficient.
4. Punishment for Manufacture or Sale of Adulterated/Spurious Goods:
In case of the first conviction, a competent court may suspend any licence
issued to the person for a period of up to two yearS and in case of second or
subsequent conviction, may cancel the licence permanently.
5. Alternate Dispute Resolution Mechanism of Mediation:
A complaint will be referred by a Consumer Commission for mediation.
wherever scope for early settlement exists and parties agree for it.
The mediation will be held in the Mediation Cells which will be established

under the aegis of the Consumer Commissions.

setlement through mediation.
There will be no appeal against
Adjudication Process:
6. Simplification of the Consumer Dispute
and District CommiSSions
to review their ouwn
Empowering the State
and in coneu.
.Enabling a consumer to file complaints ciceroncally
mer
place his reside
over the of
commissions that have jurisdiction
nce.
and deemed admissibility of.
Video-conferencing for hearing if
not decided within the specifPlaunts
the question of
admissibility is
period of specified
21 days.
382 ISC Commerce for ClassX
7. Other Rules and
Regulations:
As per the Consumer Disputes Redressal CommiSSIon Rules, there.
Abe
no fee for filing cases up to 5 lakh.
The credit of the amount due to unidentifiable consumers will go
go to the
Consumer Welfare Fund (CWF).
State Commissions will furnish information to the Central Governm
quarterly basis on vacancies, disposal, the pendency of cases and other m rmment
Apart from these general rules, there are Central Consumer Protection C
(CCPC) Rules: Council
It will be an advisory body on consumer ISSues, headed by the tn
Minister of Consumer Affairs, Food and Public Distribution with
Minister of State as Vice Chairperson and 34 other members f the
from
different fields.
It will have a three-year tenure and will have Minister-in-charge t
consumer affairs from two States from each region: North, South, Fat
ast
West and North-East Region.
The Bill replaces the Consumer Protection Act, 1986. Key features of the Bi
include:
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
resale or a good or service for commercial purpose.
An Act to provide for protection of the interests of consumers and for the said
and effective administration and settlement
purpose, to establish authorities for timely
of consumers' disputes and for matters connected therewith or incidental thereto.
Distinction between Consumer Protection Act, 1986 and Consumer Protection Act, 2019

Consumer Protection Act, Consumer Protection Act

No. Basis of
1986 2019
Distinction
Ambit of law All goods and services for All goods and services, including
.
consideration, while free telecom and housing construction,
and personal services are and all modes of transactions
for
excluded. (online, teleshopping, etc.)
consideration. Free and personal
services are excluded.
of
The Act adds three types
2. Unfair trade Includes six types of new
falure
practices (i.e., such practices, like false practices to the list, namely:
refusal to
deceptive representation, misleading to issue a bill or receipt; within 30
returned
practices to advertisements. accept a good
of personal
promote the sale, days and disclosure
information given in confidence,
use or supply of a
in publie
good or service) unless required by law or
Contests/lotteries may be
interest.
the
notified as not falling under
ambit of unfair trade practices.
 Consumer Protection
383
N o provisioon Claim for product liability can be
product liability
ity made against manufacturer, service
provider and seller. Compensation
be obtained by proving o n e of
can
the several specified conditions in
the Act.
No provision Defined as contracts that cause
/Unfair contracts
significant change in consumer

rights.
which
Lists six
may be held as unfair.
contract terms

and protect The n ew Act akes CPCs

CentralProtection CPCs promote
rights of consumers. advisory bodies for promotion
the
C o u n c i l s ( C P C s )

are
established at the | and protection o f c o n s u m e r rights.
They
state and national Establishes CPCs a t the District,
district,
State and National Level.
level.
E s t a b l i s h e s the Central Consumer
No provision
Protection Authority (CCPA) to
R e g u l a t o r

and enforce the

promote, protect
as a class.
rights of consumers

notices;
CCPA may: safety
issue
recall goods, prevent
pass orders to
and reimburse
unfair practices
and impose
purchase price paid;
and m i s l e a d i n g
penalties for false
advertisements.
State:
District: Up to ? one crore;
20 lakh;
Up to and up t o 10
Pecuniary
District:
Between 20 lakh Between onecrore 10 crore.
jurisdiction o f
State:
crore;
National: above
one crore;
to
and up
one
C o m m i s s i o n s
Above
National:

president
crore.
District: Headed by a
current State:
District:
Headed by least two members;
Composition o f and at least
former District Judgee president and
at
or Headed by a
Commissions
and two
members;
State: | members;
N
Naat
tiio
on a l :
He
H ea
adde d

current or ff
o ou
urr least four
and at
Headed by aa
by a president
Court Judge
former High members.
members;
least two
and at
National:
Headed by a

former Supreme
current or
and at least
Court Judge
Selection
four members.
provision
for
Committee | No Go
G ov
veer
rnnm
meen
ntt
Central
|Appointment Selection Committee.
n
noot
tiif
fiic
caat
tiio
onn.
.

aa
judicial through
(comprising w i l l appoint
will
other officials)
member and
will recommend members

on the Commissions.
384 ISC Commerce for Class Xll

10. Alternate No provision Mediation cells will be

attarh.
dispute redressal tothe District, State tached
and Natio
mechanism Commissions. ional
11. Penalties If a does not | If a person does not ComeL
person
comply with orders of the orders of the Commiei
Commissions, he may face | may face imprisonment he
imprisonment between three years, or a fine not up
less
one month and three years
dable to Z th
25,000 extendak onme
han
or fine between { 2,000 to or both.
10,000, or both.
12 E-commerce No provision Defines direct selling,
and electronic service e-commerce
central government may provider. The
rules for prescribe
preventing unfair
trade
practices in e-commerce and direct
selling

15.7 ROLE OF CONSUMER ORGANISATIONS AND NGOS

Consumer organisations
associations are voluntary associations of
or
consumerss.
About 500 consumer associations have been formed in different
parts of the cOuntry
However, only a few of them have become prominent. Some of them are Voice (New
Delhi), Common Cause (New Delhi), Consumer Guidance Society of India
(Mumbai,
Consumer Education and Research Center (CERC) Ahmedabad, Consumer Utility
and
Trust Society (CUTS) Jaipur. The Consumer Coordination Council has been s
an apex body of consumer organisations in India. Its main tasks are:
) Making consumers aware of their rights and responsibilities.
i) Educating consumers about the remedies available to them for protecting their
rights.
(ii) Collecting data on different products and testing them.
iv) Publishing journals, brouchers and monographs on consumer afairs.
(V) Arranging talks, seminars, conferences and workshops on issues conceming
consumers.

(vi) Organising exhibitions on spurious and adulterated products.

(vii) Organising protests and boycotts against adulteration, underweight, prnce
rigging, etc.

(vii) Producing films and cassettes on food adulteration, drug misuse, etc.

(ix) Running counselling and guidance centres for consumers.

fof
) Filing suits, complaints and writ petitions before the courts on benal
Consumers.
 an-orenment OTciety.
intCarrPayahildy
Society. For
Consumer Protection385
nt Organisation:
For
i r e n ts e c
ctions of example, Child
children. Press can Child planisations
Relief and You formed to
reo f
poor play a vital role in (CRY) CRYed

nelre* national
ewspapers car arry
consumer a consumer worksonsum
ost been
ntroduced subject
come
protection. For
as aa s u h r complaint column
rotection
hasty
has
University
(IGNO of in every week.
(IGNOU) has developed study schools and colleges.
a
nereducatiOn.
Open
comprehensive syllabus for
SUMMARY
u m e rp r o t e c t i o important because business exists to
is

wealth, consumers have legal rights, media satisfy human needs,

trustees ofwea
uste hts as to safety, information, choice, exposure and competition.
onsumersh a v
onment. consumers:also have responsibilities. heard, redressal and education,
Mtye n v i r o n

gon Selfrea on by businessmen, consumer

self-help, consumer associations and
of
the consumer protection.
c o n t r o l
are means

Consumer
Protection Act, 1986, provides for setting up of District Forum, State
Consunal Commission and Consumer Protection Councils.
o n s , N a t i o n a

sions an
neTorganIsations and NGOs can play a vital role for consumer protection.

EXERCISEs
Answer Type Q u e s t i o n s

necessary to protect consumers?Gi any three reasons.

Why is it
consumer?
Who is a
rights of a consumer.
Enumerate the
of a consumer.
Sate any two responsibilities Act?
under the Consumer Protection
are available to
consumers
What remedies
a Type Questions ISC, 2016, 2018]
Explain the need for consumer protection.
consumers.
tplain the rights and responsibilities of Act for redressal
Consumer Protection the
under
e various authorities set up
of consumer grievances.
Act.
the salient features of the Consumer Protection
n the field of consumer
protection.
Dscusst Oconsumer
organisations in
of his responsibilities
as
wel
"A rights but
consumer should not only be a w a r e of his
assumed?
you agree? What responsibilities should be Later a laboratory
these were pure.
Aaopkeeper sold: before
spices, claiming that should you
have taken
o u some

OWedtha
precautions
owed that these were adulterated. What tha wrong act?