10-04-2024

Consumer Protection Act, 2019

• Consumer Protection Act, 2019 is a law to protect the
interests of the consumers.
• Applies to whole of India
Consumer Protection Act, 2019

Compiled by Dr. Divya

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Consumer Protection Act, 2019 Definition Of Consumer

Aim of the Consumer Protection Act: “Consumer" means any person who —
(i) BUYS any goods for a consideration which has been
– paid or
• To promote and protect the rights of the consumers by
– promised or
establishing authorities for speedy, and simple redressal of – partly paid and partly promised, or
consumers’ disputes. – under any system of deferred payment
and INCLUDES
ANY USER of such goods when such use is made with the
approval of such person,
But does NOT INCLUDE a person who obtains such goods for
resale or for any commercial purpose.

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Definition Of Consumer
Meaning of Goods
“Consumer" means any person who—
(ii) HIRES or AVAILS of any SERVICE for a consideration
which has been
"goods" means every kind of movable property and
– paid or
– promised or includes "food" as defined in Food Safety and Standards
– partly paid and partly promised, or
Act, 2006;
– under any system of deferred payment
and INCLUDES
ANY BENEFICIARY when such services are availed of with
the approval of the first mentioned person,
but does NOT INCLUDE a person who avails of such service
for any commercial purpose.

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Definition Of Consumer
Meaning of Services
(a) the expression "commercial purpose" does not include
‘service’ means service of any description made use by a person of goods bought and used by him
available to potential users and includes banking, exclusively for the purpose of earning his livelihood, by
financing, housing construction, insurance, entertainment, means of self-employment
transport, supply of electrical and other energy, boarding (b) the expressions "buys any goods" and "hires or avails
and lodging, amusement, etc. any services" includes offline or online transactions
through electronic means or by teleshopping or direct
The services of doctors, engineers, architects, lawyers etc. are
selling or multi-level marketing;
included under the provisions of Consumer Protection Act.

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Meaning of Consumer Who is a N0T a Consumer?

1. As per the act; a person is called a consumer who avails the
A person who obtains;
services and buys any good (including food) for his use.
• goods free of charge
2. The goods should be for consideration (excludes goods
obtained by way of gift or will) • who avails services free of charge
3. A person who buys any good and avail any service for resale • who obtains goods for resale or for any commercial
or commercial purpose, is NOT considered a consumer purposes
unless it is used for earning livelihood through self-
• who avails services for any commercial purposes
employment.
• who avails services under contract of service
4. This definition covers all types of transactions i.e. online and
offline.

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Consumer Rights Consumer Rights

The Consumer Protection Act, 2019 provides 6 rights to (i) Right to Safety
the consumers The right to be protected against the marketing of goods,
products or services which are hazardous to life & property;
1. Right to Safety
(ii) Right to be informed
2. Right to be informed Right to be informed about the quality, quantity, potency,
purity, standard and price of goods, products or services, as
3. Right to Choose
the case may be, so as to protect the consumer against unfair
4. Right to be heard trade practices;
5. Right to Redressal (iii) Right to Choose
The right to be assured, wherever possible, access to a variety
6. Right to Consumer Education
of goods, products or services at competitive prices;

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Consumer Rights Product Liability

(iv) Right to be Heard ‘Product liability' is defined as the responsibility of

manufacturer or seller of product or service to compensate for
The right to be heard and to be assured that consumer's
any harm caused to a consumer by such defective product
interests will receive due consideration at appropriate fora
manufactured or sold or by deficiency in services relating to the
(v) Right to Redressal product.
The right to seek redressal against unfair trade practice or • Product seller also faces risk of product liability now.
restrictive trade practices or unscrupulous exploitation of • Product seller has now been defined to include a person who is
consumers involved in placing the product for a commercial purpose and
(vi) Right to Consumer Education includes e-commerce platforms as well.
The right to consumer awareness • However, product seller will not be liable where the product
has been misused, altered or modified. …CONTD

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Product Liability Restrictive Trade Practice

…CONTD
• Restrictive Trade Practice means a trade practice which
• The scope of defect and deficiency has been expanded to tends to bring about manipulation of price or its
include conditions of delivery or to affect flow of supplies in the
– non-conformance to express warranty or specifications, market relating to goods or services in such a manner as to
– design defect, impose on the consumers unjustified costs or restrictions
– failure to provide adequate instructions or warnings to and shall include—
prevent any harm etc. • (i) delay beyond the period agreed to by a trader in supply
of such goods or in providing the services which has led or
is likely to lead to rise in price;
• (ii) any trade practice which requires a consumer to buy,
hire or avail of any goods or, as the case may be, services
as condition precedent for buying, hiring or availing of
other goods or services;

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Unfair Trade Practice Unfair Trade Practice

• falsely representing any re-built, second-hand, renovated,
• "unfair trade practice" means a trade practice which, for the reconditioned or old goods as new goods
• Advertising sale/supply at a bargain price of goods/services not
purpose of promoting the sale, use or supply of any goods
intended to be offered
or for the provision of any service, adopts any unfair
• Producing counterfeit goods or offering inferior services.
method or unfair or deceptive practice • offering of gifts, prizes or other items with the intention of not
providing them
• Non-issuance of bill/memo for the products or services received.
• Refusing to take back defective goods or withdraw deficient
services and failing to refund the amount
• Disparaging goods/services/trade of another person.

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Unfair Trade Practice Consumer Dispute

• Represents that seller/supplier has sponsorship or approval or
affiliation that he doesn’t have • “Consumer Dispute" means a dispute where the person
• Giving any warranty or guarantee of performance, not based on against whom a complaint has been made, denies or
its adequate/ proper test disputes the allegations contained in the complaint.
• Knowingly Selling that do not comply with prescribed standards
of performance

• Hoarding or destruction of goods, refusal to sell

• Unlawfully disclosing personal information of a consumer

• Offering of gifts, prizes or other items with the intention of not

providing them

• False/misleading representation concerning need for, or usefulness

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Complaint Complaint
“Complaint" means any allegation in writing that-
(v) the goods, which are hazardous to life and safety when used,
(i) an unfair contract or unfair trade practice or a restrictive
trade practice has been adopted by any trader or service provider; are being offered for sale to the public—
(ii) the goods bought by him or agreed to be bought by him suffer (a) in contravention of standards relating to safety of such
from one or more defects; goods as required to be complied with by law;
(iii) the services hired or availed of or agreed to be hired or availed (b) where the trader knows that the goods so offered are unsafe
of by him suffer from any deficiency; to the public;
(iv) a trader or a service provider has charged for the goods or (vi) the services which are hazardous or likely to be hazardous to
services a price in excess of the price— life and safety of the public when used, are being offered by a
(a) fixed by law
person who provides any service and who knows it to be
(b) displayed on goods or any package containing such goods
injurious to life and safety;
(c) displayed on the price list exhibited by him by law
(d) agreed between the parties; …CONTD …CONTD

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…CONTD Complaint Unfair

contract or
unfair trade
(vii) a claim for product liability action lies against the product practice or Goods
Product restrictive suffer
manufacturer, product seller or product service provider; liability trade practice from
claim defects
Note: product liability action may be brought by a consumer
for any harm caused to the consumer by such defective product Services
Services COMPLAINT
manufactured/sold or by deficiency in services relating to the suffer from
hazardous any
product against to life deficiency
– a product manufacturer or
– a product service provider or
– a product seller Goods
Excessive
hazardous
price
to life and
charged
safety

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Who Can Be Complainant?

• Consumer CONSUMER PROTECTION ACT
1 2019
2 • Registered Voluntary Consumer Association
Consumer Central Consumer
3 • Central Government or any State Government Protection Dispute
Consumer
• Legal Heir or Legal Representative of deceased Councils Protection Redressal
4 consumer (Councils) Authority Commissions
(Central (Commissions)
• Parent or Legal Guardian in case consumer is Authority)
5 minor National National Commission
• One or more Consumers having the same interest Council
6 State Commission
State Council
7 • Central Authority (CCPA) District Council District Commission

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Central Consumer Protection Authority (CCPA) Central Consumer Protection Authority (CCPA)
• Also known as Central Authority. Functions of CCPA
 Conduct inquiry or investigation into violation of consumer
• Established by Central Government rights or unfair trade practices
• Is the Central regulator for consumer Protection.  Initiate suo-moto proceedings against violators
 Recall products or discontinue services and provide refunds
• It regulate matters relating to violation of rights of to consumers
consumers, unfair trade practices and false/misleading  Order reimbursement of the price of goods/services
 Impose Penalties
advertisements which are prejudicial to interests of public  eg penalty on manufacturer against misleading & false
and consumers advertisement and against any endorser of such advertisement
 File class-act
• It promotes, protects and enforces rights of consumers as  Issue safety notices to consumers against unsafe goods &
a class. services

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Consumer Dispute Redressal Commission Consumer Dispute Redressal Commission

(Consumer Commissions) (Consumer Commissions)

• There is a 3-tiered consumer dispute redressal system at the • Resolve consumer complaints related to:

national, state and district levels for redressal of consumer i. Overcharging or deceptive charging

complaints. ii. Unfair or restrictive trade practices

• These include: iii. Sale of hazardous goods and services which may be

i. National Commission hazardous to life.

ii. State Commission iv. Sale of defective goods or services

iii. District Commission

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Consumer Commissions and Pecuniary How to make complaint

Jurisdictions:
• Identify pecuniary jurisdiction: Based on Value of
Consumer Value of Goods/Services paid as Goods/Services in complaint identify the pecuniary jurisdiction
Commission Consideration of:
of Consumer Commission where complaint has to be filed.
District Upto ₹1 crore
• Identify territorial jurisdiction: A complaint may be filed in a
Commission (not exceeding ₹1 crore)
District/State Commission in whose territorial jurisdiction:
State Commission Upto ₹10 crore (exceeding ₹1 crore
But not exceeding ₹10 crore) (a)any of the opposite parties, at the time of complaint,
actually & voluntarily resides, or carries on business or has
National Exceeds ₹10 crore
Commission a branch office, or personally works for gain, provided that
in such case permission of District Commission is given; or
National Commission hears appeals against orders of
(b) the cause of action, wholly or in part, arises; or
• State Commission and
(c) the complainant resides or personally works for gain.
• Central Consumer Protection Authority (CCPA).

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How to make complaint Reliefs District Commission Can Provide

(Orders u/s 39)
• Period of limitation: The complaint must be filed within 2
years but there is a provision for condonation of delay under
the Act.
• Electronic filing: Complaint may be filed electronically in
such manner as may be prescribed. To pay amount as
To To
• Fees: Every complaint filed shall be accompanied with To RETURN COMPENSATIO
REMOVE REPLACE
to the N to consumer for
prescribed fees and payable in prescribed manner, including the defects goods with
complainant any loss/injury
or deficiency new goods of
the PRICE suffered due to
electronic form. from the similar
negligence of
goods or description or charges
paid by him opposite party
services in free from any
with interest including Punitive
question defect
Damages

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Reliefs That District Commission Can Provide (Orders Reliefs That District Commission Can Provide (Orders
U/S 39) U/S 39)

-To withdraw To issue

HAZARDOUS goods To PAY SUCH
To from being offered for
CORRECTIVE SUM as may be
DISCONTINUE ADVERTISEM determined by DC,
sale ENT to To cease and desist
the unfair trade if loss /injury has To Provide for
- To not offer neutralise the from issuing any
practice or the hazardous goods for effect of
been suffered by a adequate
MISLEADING
restrictive trade sale misleading large number of COSTS to parties
ADVERTISEMENT
practice and not advertisement at consumers who are
-To cease NOT identifiable
to repeat it manufacture of cost of opposite
party conveniently
hazardous goods

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APPEALS APPEALS
CPA provides for a system of appeals to provide recourse to parties to a • No appeal against any order passed by the District
consumer dispute who are not satisfied with order passed by particular
Consumer Commission. Commission pursuant to a settlement by mediation between
Appeal against order of the parties
National Commission • Appeal by a person, who is required to pay any amount in
Appeal against order terms of an order of the district/state commission shall be
of State Commission Appeal against
Appeal against order order passed by entertained by the state/National commission ONLY if the
of District Commission Can be filed the National appellant has deposited 50% of that amount in the prescribed
before the Commission may
be filed before the manner.
Can be filed before National
Commission on a Supreme Court • An appeal filed before the State/National Commission shall be
State Commission of India within 30
within whose substantial disposed of within 90 days from the date of its admission.
question of law days from date of
jurisdiction the order.
District Commission within 30 days
functions within 45 from date of NOTE: National Commission can hear appeals against the order of
days from date of order.
order. Central Consumer Protection Authority (CCPA)..

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