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• (i) requiring manifestly excessive security deposits to be given by a consumer for the
performance of contractual obligations; or
• (ii) imposing any penalty on the consumer, for the breach of contract thereof which is
wholly
• disproportionate to the loss occurred due to such breach to the other party to the
contract; or
• (iv) entitling a party to the contract to terminate such contract unilaterally, without
reasonable cause; or
• (v) permitting or has the effect of permitting one party to assign the contract to the
detriment of the other party who is a consumer, without his consent; or
• (vi) imposing on the consumer any unreasonable charge, obligation or condition which
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puts such consumer to disadvantage;
Restrictive Trade Practice
• Restrictive Trade Practice means a trade practice
which has or may have the effect of preventing,
distorting or restricting competition in any manner
• In particular any trade practice will be a restrictive
trade practice if it tends to –
• Obstruct the flow of capital or resources into the
common stream of production, or
• Bring about manipulation of prices, or conditions
of delivery or affect the flow of supplies in the
market relating to goods or services in such
manner as to impose on the consumers unjustified
costs or restrictions
Legal Environment of Business: Law of Competition 8
Unfair Trade Practice
• It means any trade practice which, for the
purpose of promoting the sale, use or
supply any goods or for the provision of
any services, adopts any unfair method or
unfair or deceptive practices
• A trade practice would be unfair if it
causes loss or injury to the consumers of
such goods or services, whether by
eliminating or restricting competition or
otherwise
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Legal Environment of Business: Law of Competition
Enumerated Unfair Trade Practices
• Misleading advertisements and false
representations
• Bargain sale offer without any such
intention
• Offering gifts or prizes, which in reality are
otherwise or not offered at all
• Non-conformation with product safety
standards
• Hoarding or destruction of goods
Salient Features
⚫ This Act is applicable on all the products and services, until or unless
any product or service is especially debarred out of the scope of this
Act by the Central Government.
⚫ This Act is applicable to all the areas whether private, public or
cooperative.
⚫ Three-tier Grievances Redressal Machinery:
Consumer courts have been established so that the consumers can
enjoy their rights. This Act presents Three- tier Grievances Redressal
Machinery:
(i) At District Level-District Forum
(ii) At State Level -State Commission
(iii) At National Level – National Commission
• To favour consumer protection and to encourage consumer’s awareness
there is a provision in this Act to establish Consumer Protection
Councils.
• A main feature of the Act is that under this, the cases are decided in a
limited time of period.
Who can file a complaint?
The following persons can file a complaint:
⚫ (a) a consumer;
⚫ (b) any recognised voluntary consumer association whether the consumer is a
member of that association or not;
(Ex. Consumer Organisations- (1) CERC (Consumer Education and Research
Centre), Ahmedabad (2) VOICE (Voluntary Organisation in the Interest of
Consumer Education), New Delhi, (3) Consumer Education Center,
Hyderabad, (4) Common Causes, New Delhi, etc.
⚫ (c) the Central or any State Government;
⚫ (d) one or more consumers where these are numerous consumers having same
interest, and
⚫ (e) Legal heir or representative in case of death of a consumer.
Agencies to settle the C.Disputes:
⚫ District consumer Dispute Redressal Forum
(Distict Forums) at the district level.
⚫ State Consumer Disputes Redressal
Commission (State Commission) at state levels, and
⚫ National Consumer Disputes Redressal
Commission (National Commission) at National
level .
District Forum
⚫ This is established by the state governments in each of its
districts.
⚫ (a) Composition: The district forums consist of a Chairman and
two other members one of whom shall be a woman. The district
forums are headed by the person of the rank of a District Judge.
⚫ (b) Jurisdiction: A written complaint can be filed before the
District Consumer forum where the value of goods or services
and the compensation claimed does not exceed Rs. 1 crore.
⚫ Appeal: If a consumer is not satisfied by the decision of the
District forum, he can challenge the same before the State
Commission, within 30 days of the order
State Commission
⚫ This is established by the state governments in their respective
states.
(iv) any loss of consortium or services or other loss resulting from a harm
“product manufacturer ” means a person who—
(iii) puts or causes to be put his own mark on any products made by any other
person; or
(iv) makes a product and sells, distributes, leases, installs, prepares, packages,
labels, markets, repairs, maintains such product or is otherwise involved in placing
such product for commercial purpose; or
(e) the product fails to contain adequate instructions of correct usage to prevent
any harm or any warning regarding improper or incorrect usage.
Endorsers liability:
⚫ The New Act fixes liability on endorsers considering
that there have been numerous instances in the recent
past where consumers have fallen prey to unfair trade
practices under the influence of celebrities acting as
brand ambassadors. In such cases, it becomes
important for the endorser to take the onus and
exercise due diligence to verify the veracity of the
claims made in the advertisement to refute liability
claims.
Conclusion
⚫ The Consumer Protection Act, 2019 when compared
with the 1986 Act shows that it provides for greater
protection of consumer interests taking into
consideration the current age of digitization.
⚫ The 2019 Act also deals with the technological
advancements in the industry, provides for easier filing
of complaints and also imposes strict liability on
businesses including endorsers for violating the
interest of the consumers.
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https://www.legitquest.com/legal-guide/top-7-consumer-protection-act-
cases