Legal Aspect of Business

CONSUMER PROTECTION ACT, 2019 Presentation

Jeebak Dutta Choudhury

Roll No. 05
MBA (IB) 2019-22 Kolkata
Trimester VI
Course co-ordinator – Dr. Sanjay Kumar
May 2022
CONTENTS  INTRODUCTION
 Definition of Consumer
 Concept of Consumer Protection

 CONSUMER RIGHTS

 INSTANCES OF CONSUMER EXPLOITATION

 CPA, 1986
 Salient Features
 Agencies to settle Consumer disputes
 Reliefs available to consumers
 CPA, 2019
 Key Highlights
 Unfair Trade Practices & Product Liability

 CONCLUSION

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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 for resale or a good or service for
commercial purpose.  It covers transactions through
all modes including offline, and online through
electronic means, teleshopping, multi-level
marketing.

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 Concept of Consumer Protection

Consumer protection means safeguarding the interest &

rights of the consumers. In other words it refers to measures
adopted for the protection of consumers from unethical
malpractices by the business & to give them speedy
redressal of their grievances.

Need for Consumer Protection :-

 Social Responsibility
 Increasing Awareness
 Consumer Satisfaction (trader should treat consumer as God)
 Principle of Social Justice
 Principle of Trusteeship
 Survival & Growth of business

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Rights of the Consumers

1. Right to Safety
2. Right to be informed / Right to representation
3. Right to Choose
4. Right to be heard
5. Right to seek redressal
6. Right to Consumer Education

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 Instances of Consumer Exploitations

 Sale of adulterated goods i.e. adding something inferior to product being sold.
 Sale of sub-standard goods i.e. sale of goods which do not confirm to the
prescribed product standards.
 Sale of duplicate goods.
 Use of false weights & measures leading to underweight.
 Hoarding & black-marketing leading to scarcity & rise in prices.
 Charging more than MRP fixed for the product.
 Supply of defective goods.
 Misleading advertisements i.e. advertisements falsely claiming a product or
service to be of superior quality, grade or standard.

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 The Consumer Protection Act, 1986

Salient Features :-
• It applies to all goods, services and unfair trade
practices unless specifically exempted by the Central
Government.
• It covers all sectors-private, public or co-operative.
• It provides for establishment of consumer Who can file a complaint?
protection councils at the Central, State and District
 A consumer
levels to promote and protect the rights of
consumers.  Any recognized voluntary consumer association
• It provides a statutory recognition to the six rights of  Central & State Govt.
consumers.  One or more consumers where numerous
consumers having same interest.
 Legal heir or representative in case of death of
actual consumer.

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 Agencies to Settle Consumer Disputes

District Consumer Dispute Redressal Forum :- State Consumer Dispute Redressal Forum :-

Composition: District Forum consists of Chairman & two Composition: State Forum consists of President & not less than two or
other persons one of whom shall be a woman. These not more than prescribed number, one of whom shall be a woman.
forums are headed by a person of the rank District Judge. These forums are headed by a person of the rank HC Judge.

Jurisdiction: A written complaint can be filed before the Jurisdiction: A written complaint can be filed before the State Forum
District Forum where the value of goods & services and where the value of goods & services and compensation claimed
compensation claimed does not exceed Rs. 20 lacs. exceeds Rs. 20 lacs upto One Crore.

Appeal: If a consumer is not satisfied by the decision of Appeal: If a consumer is not satisfied by the decision of State Forum,
District Forum, he can challenge the same before State he can appeal to the National Commission within 30 days of passing
Commission within 30 days of the order. the order.

National Consumer Dispute Redressal Forum :-

Composition: State Forum consists of President & not less than four or not more than prescribed number, one of whom
shall be a woman. These forums are headed by a sitting or retired Judge of SC.
Jurisdiction: A written complaint can be filed before the National Forum where the value of goods & services and
compensation claimed exceeds Rs. One Crore.
Appeal: An appeal can be filed against the order of the National Commission to the SC within 30 days of passing the order.
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 Reliefs Available to Consumers

Depending on the nature of complaint & relief sought by the consumer & the facts
of the case, Consumer Forum may order one or more of the below reliefs :-
 Removal of defects from the goods or deficiencies in the services in question.
 Replacement of defective goods.
 Refund of the price paid.
 Award of compensation for loss or injury suffered.
 Discontinuation of unfair trade practices or restrictive trade practices.
 Withdrawal of hazardous or dangerous goods from being offered for sale.
 Provision of adequate costs to the aggrieved parties.

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 The Consumer Protection Act, 2019

Key Highlights :-
• Widened the definition of consumer : It now includes any person who buys any goods, whether
through offline or online transactions, electronics means, tele-shopping, direct selling, MLM.
• Enhancement of territorial jurisdiction : The 2019 Act provides added advantage for consumers by
providing for filling of complaints where the complainant resides or personally works for gains against
the 1986 Act which only provides for filling of complaints where the opposite party resides or carries
on business.
• Enhanced Pecuniary Jurisdiction
• Alternate Dispute Resolution (ADR) : As per 2019 Act, Consumer Forum shall refer the matter to
mediation on written consent of both the parties. For this purpose the 2019 Act also provides for the
establishment of Consumer Mediation Cell by the respective State Govt. in each District & State
Commission.
• E-Complaints

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 Unfair Trade Practices & Product Liability

 The new Act introduces a specific broad definition of unfair trade practices, which includes sharing of
personal information given by the consumer in confidence, unless such disclosure is made in
accordance with the provisions of any other law.

 The new Act has introduced concept of Product liability & brings within its scope the product
manufacturer, the service provider, & product seller for any claim for compensation.

 “Product Seller” is a person who is involved in placing the product for a commercial purpose and as
such would include e-commerce platforms as well.
 There are increased liability risks for manufacturers as compared to the service producers & product
sellers, considering that under the new Act manufacturers will be liable in product liability, action
even where he proves that he was not negligent or fraudulent in making the express warranty of a
product.
 Certain exceptions have been provided under the new Act that product sellers will not be liable
where the product has been misused, altered or modified.

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 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 filling of complaints & also imposes strict liability on
businesses including endorsers for violating the interest of consumers.

Thank You
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