CONSUMER

PROTECTION

Copyright © 2023 by McGraw Hill Education (India) Private Limited

 WHO IS A CONSUMER?
 Section 2 Consumer Protection Act, 2019 (CPA)
 One who buys goods or avails services, for a
consideration.
 The definition makes it clear that the person becomes
a consumer through a contractual relationship.
 Consumer must not use goods for a ‘commercial
purpose’ i.e. used for the purpose of earning his
livelihood.
 The CPA essentially deals with the scope of the term
‘consumer’.
 The CPA provides for reconciling the overlap between
these specialized laws and the Act. (Section 3)

Copyright © 2023 by McGraw Hill Education (India) Private Limited

 CONSUMER DISPUTE REDRESSAL Three Types of Consumer
AGENCY Courts
 Section 2(c) defines a complaint.
 Forums entertain cases involving defective goods i.e.
not in conformity with the contract or standards set by
law, National State District
 Deficient services Consumer Consumer Consumer
 An unfair or restrictive trade practice which has been Disputes Disputes Disputes
adopted, Redressal Redressal Redressal
 Goods hazardous to life and safety are being offered for Commission Commission Forum
sale,
 A price higher that that mentioned on the package or as
required by the law, is being charged,
 The contract has an unfair term
 Compensation to the consumer should be paid according
to the principals of the contract law.

Copyright © 2023 by McGraw Hill Education (India) Private Limited

 ADVERTISING AND UNFAIR TRADE
PRACTISES
 Section 2(r)- “unfair trade practice”, Sec. 14(1)(f) is the remedy. What are other words
 An act of unfair trade practice must contain a false statement and be
for disparaging?
misleading
 Advertising a false warranty is also an unfair trade practice.
Derogatory, Derogative,
 Comparative Advertising- disparaging goods of others- unfair trade Contemptuous, Disdainful,
practice.
Scornful, Deprecatory,
 Disparagement on its own is not an unfair trade practice. It becomes Pejorative, Uncomplimentary
unfair trade practice if the disparagement is caused by ‘false and
misleading facts’,
 False bargain, false claim of a gift and holding of games, contests or
schemes for sales promotion
 Unfair contract terms – Sec. 2(46)

Copyright © 2023 by McGraw Hill Education (India) Private Limited

 Dabur India Ltd., Delhi vs Colortek
Meghalaya Private Ltd., 2010 (44)
PTC 254
The Court mentioned the points to consider in deciding
whether a commercial leads to disparagement:
 The intent of the advertisement- this can be understood
from its story line and the message sought to be conveyed.
 The overall effect of the advertisement- does it promote the
advertiser’s product, or does it disparage or denigrate a rival
product?
 In this context… an unfavorable comparison might not
necessarily affect the story line and message of the
advertised product or that as its overall effect,
 The manner of advertising- is the comparison by and large
truthful or does it falsely denigrate or disparage a rival
product?
Copyright © 2023 by McGraw Hill Education (India) Private Limited
 THE COMPETITION ACT,
2002 (CA)
 Law to maintain competition in the economy
 Creates the Competition Commission and the
office of the Director General Investigation and
Research for enforcing the law. (Sec. 26 CA)
 Commission has the duty to eliminate practices
having adverse effect on competition, promote and
sustain competition, protect the interest of
consumers and ensure freedom of trade carried on
by other participants in markets in India.

Copyright © 2023 by McGraw Hill Education (India) Private Limited

 AGREEMENTS AMONG
ENTERPRISES

MRTP Act, 1969

HORIZONTAL VERTICAL
AGREEMENTS- AGREEMENTS-
between two or between two or
more enterprises more enterprises at Competition Act,
at the same stage of different stages or
production chain levels of the 2002
production chain

 Section 3- Prohibition of agreements Anti-competitive

agreements. (includes bid rigging/collusive bidding)

 Section 4- Abuse of dominance

Copyright © 2023 by McGraw Hill Education (India) Private Limited