CONSUMER

PROTECTION ACT
2019
BACKDROP FOR ENACTMENT

• Though consumers had rights under Contract laws/Sale of

goods act, their remedy was to approach civil courts where
litigation costs were high and there was huge pendency of
cases.
• Under both laws, the rule was caveat emptor.
• Privity of contract was a prerequisite for a consumer under
both contracts.
OBJECTS OF THE ACT

•Better protection of the interests of consumers( by establishment of consumer

protection councils & forums for redressal of consumer complaints)
•Protection of the rights of consumers:
•Right to be protected against goods/services hazardous to life & property.
•Right to be informed about quality/quantity/potency/purity/price so as to protect
consumers against unfair trade practices.
•Right to access to goods/services at competitive prices.
•Right to be heard(at appropriate forums).
•Right to consumer education: magazines like “Upbokta Jagran”
•Right to seek redressal against unfair/restrictive trade practices or unscrupulous
exploitation.(Quasi-judiciary machinery for speedy redressal of consumer disputes at
District/State/National level)
DEFINITIONS-CONSUMER/
COMPLAINANT
• Consumer: Any person who buys any good for consideration
paid/promised/partly done or under deferred payment system but
excluding a person obtaining such goods for resale/ commercial
purpose. Any person hiring/availing services for a consideration
paid/promised/partly done or under deferred payment system
excluding a person availing such services for a commercial
purpose. Complainant means a consumer/any voluntary consumer
association registered under companies Act 1956 Central/State
Govt. or numerous consumers having same interest. In case of
death, legal heir or representative.
DEFINITIONS-GOODS/ SERVICE/
MANUFACTURER
• Goods as defined under Sale of Goods Act 1930.
• Service of any description available to potential users
including Banking, insurance, transport, processing, supply
of energy, boarding/entertainment/lodging etc.
• Manufacturer means a person who makes/manufactures
/assembles / does branding of any goods or part thereof.
• Trader is one who sells/distributes goods for sale, including
manufacturer & packaging Co.
DEFINITIONS-DEFECT/
DEFICIENCY
• Defect means any fault/ imperfection/ shortcoming in
quality/ quantity/ purity/ potency/standard to be maintained
under any law or under any contract, express or implied or
as claimed by trader.
• Deficiency means any fault/ imperfection/ shortcoming in
quality/nature/manner of performance required to be
maintained under law or undertaken to be performed in
pursuance of a contract.
CONSUMER EDUCATION-3 TIER
STRUCTURE
• Establishment of CPC(Consumer protection councils) at
District/State/National level.
• Educate the consumer & make him aware of his rights.
• The CPC at national level is headed by the union minister in
charge of consumer affairs while at the state level is the
state minister and at the District level it is the local MLA.
GROUNDS FOR COMPLAINT

• Complaint means allegation made in writing made

with a view to obtaining relief in respect of
• Restrictive Trade Practice.
• Unfair Trade Practice.
• Defect
• Deficiency
• Hazardous/dangerous goods
CONSUMER DISPUTES REDRESSAL AGENCIES

• District Forum(upto Rs.20 Lacs)

• State Forum( 20 lacs-Rs.1 crore)
• National Forum (> Rs.1 crore)
• Territorial jurisdiction, Constitution, Qualifications,
disqualifications, Limitation, Term, Appeal terms, Penalties,
frivolous/vexatious complaints
CONSTITUTION

• A District forum can have jurisdiction of one or more districts

while for State forum it could be one or more states.
• District forum---President + 2 members
• (1 woman)
• State Forum---President + 2 members
• (1 woman)
• National Forum—President + 4 members
• (1 woman)
QUALIFICATIONS

• President of District/State/National forums should have the

qualifications of a judge of District court/High court/Supreme
court respectively.
• Members must have an educational background & experience in
the field of commerce/economics/law.
• Minimum age is 35 years while the upper limit is 65 for
District,67 for state & 70 for National forum respectively.
• Tenure is 5 years.

• Appointments to District/State forums are made by State Govt.

while Central Govt. constitutes the National forum.
• Convicts or persons punished for moral turpitude, those
insolvent/unsound mind or dismissed from Govt. service/PSU are
TIME LIMITS(LAID DOWN
UNDER THE ACT)
• Dispatch of summons to parties: Within 21 days of filing complaint by
consumer.
• Filing defense: Within 30 days of receipt of summons (extendable by 15
days by forum)
• Testing of product at laboratory: 45 days for obtaining the test report of
laboratory or testing agency.
• Pronouncement of award: 3 months when no lab testing is required & 5
months when it is required.
• Satisfaction of award or filing appeal: 30 days from date of receipt of
award.
POWERS OF FORUMS TO ISSUE
ORDER
• Remove defects, replace goods, return price
• pay damages, remove deficiency in service, discontinue
restrictive/unfair trade practices, withdraw hazardous goods
etc, issue corrective advertisement or provide adequate
costs to parties.
APPEAL PROCEDURE

• When complainant is dissatisfied with an award ,he has to file an appeal

before the next higher forum, enclosing a copy of the lower court’s award
and by paying the necessary court-fee.
• When the respondent is dissatisfied with the award of District forum, he has
to appeal before the state forum after remitting Rs.25000 or 50% of the
award whichever is less within 30 days at the lower court. If any respondent
in state forum wants to appeal, he must remit Rs.35000 or 50% of award
and prefer appeal before National forum within 30 days. An order of the
National forum can be challenged in appeal before Supreme court by
remitting Rs.50000 or 50% of the award of State forum within 30 days.
PENALTIES

• Non-satisfaction of award within 30 days: Imprisonment for

one month or fine from Rs.2000 to Rs.10000 or both.
• Frivolous complaints : Fines up to Rs. 10000 imposed on
the complainant when the forum is convinced that the case
was filed without proper valid grounds. The would deter
people from approaching the forum needlessly.
DEFECTIVE LAPTOP

• Sachin purchased a brand new Dell laptop from Harsha Electronics,

Udupi on 28/2/2020. In a few weeks time, some of the keys did not
respond and it was handed over to the dealer for rectification. It was
cleaned, serviced and returned back. Later when the problem persisted,
the dealer got the manufacturer’s approval and replaced the keyboard
under warranty on 17/12/2020. However, in the month of Jan 2021, the
laptop again had problems with its keyboard. When it was taken to the
dealer, it was informed after examination by authorized technicians that
the mother-board costing Rs.20000 had to be replaced at customer’s cost.
Sachin feels that he needs to be given warranty benefits but dealer does
not relent. Does he have a remedy?