The background , Nature, Scope of Consume Protection Act 2019

Consumer Protection Act, 2019 The new Consumer Protection Act was passed
by Parliament in 2019. It came into force in July 2020 and replaced the
Consumer Protection Act, 1986
The Digital Age has ushered in a new era of commerce and digital branding, as
well as a new set of customer expectations. Digitization has provided easy
access, a large variety of choices, convenient payment mechanisms, improved
services and shopping as per convenience. However, there are also associated
challenges related to consumer protection.
To help address the new set of challenges faced by consumers in the digital
age, the Indian Parliament passed the landmark Consumer Protection Bill,
2019 which aims to provide timely and effective administration and
settlement of consumer disputes.
Background (General Assembly of The UN resolution in 1985.)
• Consumer markets for goods and services have undergone drastic
transformation since the enactment of the Consumer protection Act 1986.
• The emergence opf global supply chains , rise of international trade and the
rapid development of e-commerce, tele marketing , multi level marketing
have led to new delivery systems for goods and services.
• Consumes are now vulnerable to new forms of unfair trade and unethical
business practices , misleading advertisements
• Framework of the Act: the CPA Act 1986 was brought in the background of
world-wide movement for consumer protection,
• The Act is benevolent piece of legislation: It is meant to provide a simple ,
inexpensive and speedy justice to the consumers complaints against defective
goods , deficiency in service and unfair trade practice or the restrictive trade
practice and misleading advertisements.
Act is social legislation : is a piece social legislation to provide a forum to the
consumers who are taken for a ride y suppliers of goods and services.
The Act of 2019 is applicable to the whole of India.
The object of the Act of 2019
An Act to provide for protection of the interests of consumers and for the said
purpose to establish authorities for timely and effective administration and
settlement of consumer’s disputes and for matters connected therewith or
incidental thereto.
Salient Features of Consumer Protection Act, 2019
1. It is applicable to all goods, services unless specifically exempted by the
Central Government.
2. It covers all sectors, Private, public as well as cooperative.
3. It provides three tier machinery for settling Consumer grievances. Such as
Unfair or restrictive trade practices;
Defective goods or services;
Overcharging or deceptive charging; and
The offering of goods or services for sale which may be hazardous to life
and safety and misleading advertisements
4. It provides for six consumer rights
5. Inclusion of E-commerce transactions in consumer & service
The new consumer protection act broadened the scope of the definition of
consumer and services stipulated therein. The new act includes-commerce,
direct selling or multi-level marketing, online advertising, selling and purchasing
of goods on the internet within the ambit of “Goods and Service”, which was not
specifically provided in the earlier three-decade-old regimen of The Consumer
Protection Act 1986.
6. Availability of the remedy to file a suit as a class
Under the purview of the new consumer act, now a consumer can file a suit
before the appropriate consumer forum as a class of people. Section 18 of the
new consumer protection Act 2019 provides an opportunity to a consumer to file
a suit as a class action on behalf of a large group of affected persons whereas the
said remedy were not provided for, in the earlier Consumer protection Act.
7. Inclusion of Product Liability
8. Filling of Complaint through electronic Mode
In the old Consumer Protection Act, the consumer has to file the complaint where the
seller office is registered or at the place of purchase. But the new act brought about
various new things with it, the same being, that now a consumer can file a complaint
through electronic means and the consumer can even file complaints with the
consumer a forum where the consumer resides or where consumers work. The new
consumer protection Act further provides provisions for adjudication through video
conferencing means in order to robust and strengthen the process and also reduce and
the harassment of consumer.
9. Provision for Alternate Dispute Resolution such s Mediation
10. Unfair Trade Practices
The new Consumer Protection Act provides the wider and broader definition of unfair
trade practices.
11. Establishment of the Central Consumer Protection Authority (CCPA):
• One of the major changes in the new Consumer Protection Act is that the new Act
proposes the establishment of a regulatory authority namely Central Consumer
Protection Authority (CCPA
 The CCPA is entrusted with a wide array of powers including enforcement of
Suo-Moto actions, recalling of products, cancellation of licenses if required, filing
of class actions cases if there are numerous consumers affected by a single cause
of action. The CCPA will further have an investigation wing, which will be headed
by the Director-General, and may conduct investigations and inquiries into
violations of consumer Laws.
12. Imposing Penal Action against Misleading Advertisement
13. Unfair Contracts: The term of an unfair contract was not provided in the old
Consumer Protection Act 1986. According to the new Consumer Protection Act
2019, a contract between two parties deemed as an unfair contract if it causes
prejudice to the right of the consumer in any manner. It pertinent to note that
cases relating to the unfair contract can only be heard by the State and National
consumer forum.
14. Jurisdiction of the CDRC: The pecuniary jurisdiction of the Commissions has
been enhanced in comparison with the Consumer Protection Act, 1986.
15. Consumer Dispute Redressal Commission:
The Act provides for setting up of a Consumer Dispute Redressal Commission
(CDRC), which shall be set up at the district, state and national level
(Commissions). The CDRC is empowered to resolve complaints with respect to
unfair and restrictive trade practices, defective goods and services, overcharging
and goods which are a hazardous to life and safety.
The purpose and scope of the Act: the CPA Act 1986 , is to promote the cause
of the consumers and provide for an effective mechanism for redressel of the
consumers related grievances within a reasonable time. The authorities
exercise quasi-judicial powers. The awards of damages is aimed at bringing
about qualitative change in the attitude of the service provider. To servie the
purpose of the Act, various quasi judicial forums are set up at the district ,
State and National forums, observing the principles of natural justice are
empowered to give relief of a specific nature and to award, whenever
appropriate, compensation to the consumers and to impose penalties for
non-compliance with their orders.
In the case of State of Karnataka v. Vishwabharathi House Building
Co-operative Society, 2003, SCC, the SC dealt with the object of the consumer
protection Act: to provide expeditious adjudication of consumer's complaints
by adopting summary procedure.
 According to the CPA Act 2019, The term Complainant means:
(i) A consumer; or
(ii) Any voluntary consumer association registered under any law for the time
being in force; or
(iii) The central government or any State Government; or
 (iv) The Central authority; or
(v) One or more consumer, where thre are numerous consumers having the same
interest; or
(vi) In case of death of a consumer, his legal heir or legal representative; or
(vii) In case of a consumer being a minor , his parent or legal guardian;

The Definition “Complaint” under CPA 2019 and valid requisites to file
complaint under the CPA Act 2019
Under Section 2 Clause 6 of CPA 2019, Complaint is defined as:
Any allegation in writing, made by a complainant for obtaining any relief provided
by or under this Act, that-
(i) An unfair contract or unfair trade practice or a restrictive trade practice has
been adopted by any trader or service provider;
(ii) The goods bought by him or agreed to be brought by him suffer from one or
more defects;
(iii) The services hired or availed of or agreed to be hired or availed of by him
suffer from any deficiency;
(iv) A trader or a service provider, as the case may be, has charged for the goods
or for the services mentioned in the complaint, a price in excess of the price
– (a) fixed by or under any law for the time being in force’
(b) displayed on the goods or any package containing such goods; or
( c) displayed the price list exhibited by him by or under any law for
the time being in force; or
(d) agreed between the parties;
(v) The goods, which are hazardous to life ad safety when used, are being
offered for sale to the public –
(vi) (a) in contravention of standardises relating to safety of such goods as
required to be complied with, by or under any law for the time being in
force;
 (b) where the trader knows that the goods so offered ae unsafe to the
public;
(vi) The services which are hazardous or likely to be hazardous to life and
safety of the public when used, are being offered by a person who provides
any service and who knows it to be injurious to life and safety;
vii) a claim for product liability action lies against the product manufacturer,
product seller or product service provider, as the case may be;
A Consumer Complaint can be made either in a written manner or in electronic
mode to the District Collector, the Commissioner of the regional office, or the
Central Authority. In the case of violation of consumer rights, a complainant
can approach the District Forum, State Commission, or the National
Commission. Also, if the complainant is not satisfied with the order passed by a
Consumer Court, he can file an appeal in the higher Court.
 A consumer complaint shall consist of the following details:
1. Name and address of the complainant and the opposite party.
2. The date on which the goods were purchased or services availed, details of such
goods and services and the amount paid for the same.
3. The subject of the complaint, whether it was an unfair trade practice, defective
goods were supplied, deficiency in services provided.
4. The bills and receipts of the concerned product or service.
5. The relief to be sought under the Act.
6. Signature of the complainant or his authorized agent.
Online Consumer Complaint
1. A consumer can be filed both offline as well as online manner. A consumer
complaint can be filed online by registering on the website of the national consumer
helpline through, consumerhelpline.gov.in. A complainant can register himself as a
consumer by filling in the required details such as name, email, contact number, and a
password.
2. After registration, the consumer can log in with the help of log-in details
and passwords. Then, the consumer should click on ‘register your complaint’
and should further fill the details regarding the complaint and upload the
required documents. There are different grievance portals in different
sectors.
3. Once the complainant registers itself as a consumer, he can also call on the
National Consumer Helpline number to register his complaint or send a
message .
4. A complainant can also register his grievance through the NCH.
5. The complainant will be provided with a unique id after registering the
complainant. With the help of this unique id, the consumer can track the
status of his complaint.
6. The required fee for the consumer complainant can be paid through an
online payment gateway.
Who can file the complaint?
one or more consumers can file a consumer complaint; any registered
voluntary consumer association, the Central or State Government, heirs, or
legal representatives of the consumer. Where the consumer is a minor, his
parent or legal guardian can file the complaint.
Limitation period: the complaint shall be filed within two years from the date
on which the cause of action has arisen. This is known as the limitation period
for filing the complaint:
Jurisdiction of Consumer Forums:
The consumer should file his complaint to a consumer forum, which has both
territorial and pecuniary jurisdiction to decide the matter.
Territorial Jurisdiction:
Complaint should be instituted with a district forum (Section 11), state
commission (Section 17), or national commission (Section 21) within the local
limits of whose jurisdiction.
The opposite party or in case of more than one opposite party, one of the
opposite parties resides or carries on business or personally works for gain.
Pecuniary Jurisdiction:
• Consumer complaints can be filed with respect to the claim value
enumerated as below:
• District forum – up to 1 crore(Now 50 lakhs)
• State Commission – 1 crore to 10 crores(50 lakhs to 2 crores)
• National Commission – more than 10 crores (more 2 crores)
• The award pronounced by the national commission can be challenged before
the Supreme Court.
Court Fees for a consumer complaint under Consumer Protection Law:
• As per the Consumer Protection (twenty-second amendment) Rules, 2018,
the fee structure for filing a consumer complaint has been revised as per the
following:
• 1. Cases of value up to Rs. 5 Lakh- No fee.
• 2. Cases of the value of Rs. 5 Lakh-10 Lakh- Rs 200
• 3. Cases of value exceeding Rs 10 Lakh- Rs 400
• A complainant is not required to pay any fee for filing an appeal in the State
Commission or National Commission.
Maintainability of second complaint on the same cause of action .
Indian Machinery Co. v. M/s Ansal Housing and Construction Ltd.,2016, SC
Applicability of res judicata:
In this case, The National Commission has taken the view in the impugned
order that the second complaint would not be maintainable.
But The SC held that, The fact that the case was not decided on merits and
was dismissed in default of non-appearance of the complainant cannot be
overlooked and, therefore, it would be permissible to file a second complaint
explaining why the earlier complaint could not be pursued and was dismissed
in default.”. That being so, and in view of the decision rendered by this Court,
with which we have no reason to disagree, we are of the opinion that the
second complaint filed by the appellant was maintainable on the facts of this
case.
 The definition of Complainant under CPA 2019
According to Section 2 clause (5) of the CPA, Complainant means:
(i) A consumer; or
(ii) Any voluntary consumer association registered under any law for t time
being in force; or
(iii) The Central Government or any State government; or
(iv) The Central Authority; or
(v) One or more consumers, where there are numerous consumers having the
same interest; or
(vi) in case of death of a consumer, his legal heir or legal representative; or
(vii) In case of a consumer being a minor, his parent or legal guardian
Let’s understand the definition of complainant through some simple illustrations.
Scenario 1
A farmer who grew potatoes availed the facilities of a cold storage company for six
months to preserve the crop. For this, he deposited the sum of Rs 12,000. After two
months, the farmer came to know that the potatoes had completely spoiled since the
company had failed to protect the stock. The cold store was not kept at the required
cooling temperature by the company. The farmer suffered a loss of Rs 4 lakhs. The
company denies all allegations. Now the farmer wants to file a consumer complaint
against the company. Let’s look at another scenario.
Scenario 2
A consumer NGO files a consumer complaint on behalf of an illiterate woman against a
bank for loss of ornaments kept in the locker. This locker is availed by the woman and
maintained by the bank.
Scenario 3
A number of persons were allotted residential plots by a housing society at a tentative
price. After more than 10 years, fresh demands were made by the society, threatening
dispossession of the allottees in case of non-payment of the demand. One consumer,
who was among the allottees, files a consumer complaint against the society,
representing all the allottees as cases of all were identical.
Scenario 4
The Government of India files a class action against a multi-national company
manufacturing food products, on behalf of millions of consumers on the grounds
of misleading advertisement and sale of hazardous products that was injurious
to health.
Scenario 5
Where a child was admitted to the hospital by the parents and the child was
diagnosed with a disease. During the treatment, the child was not administered
a test dose as was the protocol of the treatment. Consequently, the child
developed severe complications to which the child succumbed. The parents of
the minor child file a consumer complaint on the grounds of negligence and
deficiency in service on the part of the hospital.
Now as illustrated we have five situations. We have to assess if they can be a
complainant? In order to make access to consumer justice to the common man a
reality, the framers of the Act brought certain legal entities to represent
common consumers to file consumer complaints before the courts.
Having discussed the definition of the term “complainant”,
In Scenario 1, the farmer having availed the facilities of the cold storage plant in
the capacity of self-employment is a consumer and hence a complainant.
In Scenario 2, the Consumer NGO assisting the illiterate woman in proceeding
with a legal action against the bank for negligence can be a complainant,
provided the NGO is a registered legal entity.
As seen in Scenario 3, one or more among the allottee of the residential plot can
file a complaint on behalf of all like a representative suit since the aggrieved
parties have a common grievance. This is also called class-action suits Further,
the Consumer Protection Act allows the appropriate government and the Central
Authority to file a suo moto consumer complaint in the larger interest of public
health and safety.
And lastly, as seen in Scenario 5, the parent of a deceased child can file a
consumer complaint, being legal representative of the child. To summarise this,
a complainant can be a consumer, voluntary consumer association, the
government itself, representative of similarly situated consumers, the Central
Consumer Protection Authority, legal heirs of a consumer, parent or legal
guardian of a minor. In the
 Who can't be a complainant
1. Person who is not affected as a consumer but is interested as a general
member of the public.
Consumer Education and Research Society, Ahmedabad v. Indian Airlines
Corporation, a voluntary consumer organisation filed a complaint. This was done
based on a newspaper report that passengers travelling by flight from Calcutta to
Delhi were made to stay at the airport and the flight was delayed by 90 minutes
causing great inconvenience to the passengers. It was held that such a general
complaint cannot be entertained. No passenger who boarded that plane came
forward or authorised the complainant to make a complain.
2. An unregistered association cannot be a complainant as well.
3. Also, a consumer cannot file a complaint both in his individual capacity and
through a representation complaint against the same person or business on the
same matter: Ambrish Kumar Shukla was one such case. Here the consumer filed
a complaint on behalf of and for the benefit of numerous consumers having a
common grievance against a construction company. Here the consumer had filed
a complaint both in individual capacity as well as representation complaint
against the opposite party on the same subject-matter.
The National Commission held more than one complaint will not be entertained
on behalf of or for the benefit of consumers having the same interest, i.e. a
common grievance and seeking the same or identical complaint against the same
person.
Case law on class action complaints/PIL
Mumbai Grahak Panchayat v. Lohia Machines Ltd., 1991, NC

• Lohia Machine Ltd had collected deposits for booking scooters, but defaulted
in delivering the vehicles. The Mumbai Grahak Panchayat (MGP) filed a case
against the company in 1989, and this went up to the National Consumer
Disputes Redressal Commission, which provided relief to the 931
complainants. But MGP asked for "general relief'", on the grounds that, apart
from the complainants it had represented, there may be many more who had
not received the promised scooter. It turned out that 4.22 lakh consumers
had applied for a refund but were not party to the case. These people also,
eventually, got compensation. Following this, the president of the
commission recommended to the Centre to frame a law permitting even a
single consumer to espouse the cause of "other similarly circumstanced"
consumers. An amendment in 1993 accordingly incorporated this point.
Case: Punjab National Bank, Bombay v. K.B. Shetty, II(1991) (NC)( for PIL)

K B Shetty received a message from his bankers, Punjab National Bank, Goregaon
Branch, Mumbai, that his locker had been found open. He and his wife rushed to the
bank, and the locker was examined in the presence of the bank staff. It was found that
10 pieces of gold jewellery,, were missing. .
Shetty made several representations to the bank officials to compensate him for the
loss caused by their negligence. He also complained to the president of the All Indian
Bank Depositors Association and the police to no avail. Frustrated, Shetty filed a
complaint with the Maharashtra State Consumer Disputes Redressal Commission. The
Bank tried to escape liability for its negligence by raising several technical objections.
The Commission, however, came to the conclusion that the Bank had been deficient in
its services as it had failed to protect the contents of its locker due to negligence, and
awarded Shetty compensation of Rs 1,26,017.
The matter went up in appeal to the National Commission where several technical
objections were raised again. The Commission was caustic on the subject of the Bank
making specious objections to oppose the complaint. The other objections were
brushed aside and the order of the State Commission was upheld.
What are Consumer Rights and Responsibilities?
According to the Consumer Protection Act definition, consumers are given specific
rights and obligations that they can exercise as well as have to abide by regularly.
Let us take a look at those, one by one.
A proper understanding of the rights given to consumers through CPA Act 2019
will help in further developing an idea on which grievances will be resolved and
which will not. The rights are defined by the section 2(9) of CPA Act 2019
Rights of the consumer
1. be protected against the marketing of goods, products or services which
are
hazardous to life and property;
2. be informed about the quality, quantity, potency, purity, standard and
price
of goods, products or services;
3. be assured, wherever possible, access to a variety of goods, products or
 4. be heard and to be assured that consumers' interests will receive due
consideration at appropriate fora;
5. seek redressal against unfair trade practice or restrictive trade practices
or unscrupulous exploitation of consumers; and
6. consumer awareness.
Introduction of "e-commerce" and "electronic service provider
 Responsibilities of a Consumer declared by Goverments:
1. Be aware of various goods and services available in the market so that an intelligent
and wise choice can be made.
2. Buy only standardized goods as they provide quality assurance.
3. Learn about the risks associated with products and services, follow manufacturer's
instructions and use the products safely.
4. Read labels carefully so as to have information about prices, net weight,
manufacturing and expiry dates, etc.
5. Assert yourself to ensure that you get a fair deal.
6. Be honest in your dealings. Choose only from legal goods and services and
discourage unscrupulous practices.
7. Ask for a cash memo on purchase of goods or services.
8. File a complaint in an appropriate consumer forum in case of a shortcoming in the
quality of goods purchased or services availed.
9. Form consumer societies which would play an active part in educating consumers
and safeguarding their interests.
10. Respect the environment.
Additional responsibilities are:
1. Responsibility to be aware – A consumer has to be mindful of the safety and
quality of products and services before purchasing.
2. Responsibility to think independently– Consumer should be well concerned
about what they want and need and therefore make independent choices.
3. Responsibility to speak out- Buyer should be fearless to speak out their
grievances and tell traders what they exactly want
4. Responsibility to complain- It is the consumer’s responsibility to express and
file a complaint about their dissatisfaction with goods or services in a sincere and
fair manner.
5. Responsibility to be an Ethical Consumer- They should be fair and not engage
themselves with any deceptive practice.
Definition of Consumer under Consumer protection Act 2019
Section 2(7), Consumer Protection Act, 2019, Defines a
“consumer” means any person who;
(i) buys any goods for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes
any user of such goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly promised, or under any
system of deferred payment, 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; or
(ii) hires or avails of any service for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment and includes any beneficiary of such service other than the person who
hires or avails of the services for consideration paid or promised, or partly paid
and partly promised, or under any system of deferred payment, 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.
Explanation.—For the purposes of this clause,—
(a) the expression “commercial purpose” does not include use by a person of
goods bought and used by him exclusively for the purpose of earning his
livelihood, by means of self-employment;
(b) the expressions “buys any goods” and “hires or avails any services” includes
offline or online transactions through electronic means or by teleshopping or
direct selling or multi-level marketing.
According to Section 2(7) of the Consumer Protection Act, 2019, a consumer
means a person who buys goods for consideration or avails services for
consideration. But it does not include buying of goods or services for the
purpose of resale or for commercial use. However, the definition includes within
its purview, purchase of goods or services for the purpose of earning a livelihood
or self-employment. And most importantly, it must be noted that the definition
of “consumer” applies to transactions made through online/electronic means as
much as it applies to conventional purchase of goods and services through
brick-and-mortar system.
However, in the recent years, the Supreme Court and National Commission have
further clarified the scenarios under which consumer complaints are
maintainable even where the goods are meant for commercial purposes. In C.P.
Moosa v. Chowgle Industries Ltd., 2001, NC, the appellant had purchased EPABX
system for his hotel with warranty and annual maintenance contract. There was
a deficiency in service during the warranty period and AMC period. The National
Commission held that the case falls within the definition of consumer. And
therefore the appellant was entitled to compensation.
What may be observed from the above illustrations is that where the purchase
of goods is unrelated to the business, for example, a hotel purchasing a
computer for the purpose of billing, such cases can still be brought within the
definition of “consumer”. But a company whose business activities include
development of software programme and makes use of computers for the
purpose of business development, cannot be treated as “consumer”. So person
purchasing the laptop for the purpose of resale and using it for running his
business, both these don’t fit into the definition of a consumer.
Suppose if a person runs a restaurant and he buys vegetables from Reliance
Fresh for his restaurant. Here, there’s direct nexus between buying vegetables
and serving food in the restaurant. Hence it will commercial in nature and will
not come under consumer law.
Where there is no such nexus between the purchase and profit-making activity
and the goods actually undergo a transformation or conversion, then the person
could be considered as a consumer. So if a publishing house has given contract
to a restaurant to supply packed lunch for its staff every day, there is no nexus is
ordering food from a restaurant and running a publication house. Hence, in this
case, though food is provided in large quantity, it won’t be called commercial
activity because it has no nexus with the business of the publishing company. So
the publishing house or its employees consuming food will be consumers.
 Other example, if a dentist buys a dental chair for his small individual set up,
he’ll be a consumer. But, if a dental chair is bought for a hospital or clinic, it will
be for commercial purposes. Hence, the hospital or clinic will not be a consumer.
The reason is that it’s for commercial purposes, even if it’s a charitable hospital,
yet a purchase made for its use will be commercial in nature and hence does not
come under consumer law.
But, when goods are bought for commercial purposes and such purchase satisfy
the following criteria that
1) the goods are used by the buyer himself,
2) exclusively for the purpose of earning his livelihood,
3) by means of self-employment
In such cases, it would not be termed as use for commercial purposes under the
Act. The user is recognised as a consumer. Importantly, the Act intends to save
the interest of small businesses/consumers who buy goods for self-employment
and use it themselves to earn their livelihood such as farmers, taxi drivers,
photocopiers, etc. But when goods are purchased for large scale manufacturing
or generation of profit, those cases are excluded from the purview of the Act
Hence, where it is small businesses or consumers who buy goods for
self-employment and the buyer uses goods for himself, by employing himself for
earning his livelihood, will be considered as consumers. So, even if there is a
nexus between the purchase and profit-making activity, they would be
considered as consumers
Laxmiben Laxmichand Shah v. Sakerben Kunj Chandan (2001) CPJ 7 (SC) A tenant
is not a consumer
The appellant approached the National Consumer Disputes Redressal
Commission, claiming compensation on the ground that the respondent had
failed to render services to the appellant. The National Commission found that
the appellant was tenant of the respondents and that as per the terms of the
lease agreement dated 15th December, 1967, there was no provision in the said
agreement wherein the respondent agreed to render any sort of services to the
appellant.
In the grounds of appeal filed in this Court, it was contended that the appellant
had hired the services to the respondent-landlord in respect of cleaning,
repairing and maintenance of the subject building for consideration. But we do
not find any such clause in the terms of the lease. The National Commission was
therefore right in coming to the conclusion that the appellant was not a
consumer as defined in the Consumer Protection Act, 1986.On the facts of this
case, therefore, it is clear that the appellant is not a consumer. The appeal is
therefore dismissed.

In Pushpa Meena v. Shah Enterprises,1989, in this case, a jeep was purchased to

run it as a taxi. The question before the Rajasthan State Commission was
whether the buyer of the jeep was a consumer under the Act. The Commission
held that to use the jeep as a taxi with the object to earn profits was a
commercial purpose. And therefore, the buyer was not a consumer within the
meaning of the Act.
This was not a welcoming decision. Now the tendency of the courts is to help
the self employed consumers , even though they used them for earing profits.
.
 Case: Faqir Chand Gulati v. Uppal Agencies Pvt. Ltd., (2008), whether a land
owner, who enters into an agreement with a builder, for construction of an
Apartment Building and for sharing of the constructed area, is a `consumer'
entitled to maintain a complaint against the builder as a service-provider?
this question was dealt by Supreme Court and held that, In the appeal against
the order of the National Consumer Disputes Redressal Commission, which has
approved the view of the State Consumer Disputes Redressal Commission,
Hyderabad which held that the complainant was not a “consumer” within the
definition under Section 2(1)(d) of the Consumer Protection Act, 1986, as the
agreement of the appellant with the respondents was a joint venture, the bench
of Dipak Misra and N.V. Ramana, JJ remitted the matter back to the State
Commission as both the Commissions erred in holding that the claim of the
appellant was not adjudicable as the complaint could not be entertained under
the Act inasmuch as the parties had entered into an agreement for construction
and sharing flats which had the colour of commercial purpose.
The SC held that the land owner is a consumer under the Act.
Definition of Unfair contract under the CPA Act 2019
Section 2(46) defines “unfair contract” means a contract between a manufacturer or
trader or service provider on one hand, and a consumer on the other, having such
terms which cause significant change in the rights of such consumer, including the
following, namely—
(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
(iii) refusing to accept early repayment of debts on payment of applicable penalty; 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
puts such consumer to disadvantage.
The term goods and services in CPA Act 2019
According to Section 2(21), means every kind of movable property and includes
food as defined in clause (j) of sub-section (1) of Section 3 of the Food Safety and
Standards Act, 2006.
The term goods is defined under Sale of Goods Act , 1930 other than money and
includes stocks ad shares, growing crops etc.
Human needs are vast and varied. We are surrounded by a wide range of goods
and services such as our daily groceries, vehicles, electronic gadgets, availing of
medical facilities, mobile services, insurance and the like. Now, the term “goods”
under the Consumer Act, 2009 is defined under as every kind of movable property
and includes "food". Thus, it’s a very wide definition which includes everything
from needle to space rocket!
As for the term “food”, the Food Safety and Standards Act, 2006 provides a very
comprehensive definition. The Act defines food as any substance, whether
processed, partially processed or unprocessed, which is intended for human
consumption. It includes primary food, genetically modified or engineered food
or food containing such ingredients, infant food, packaged drinking water,
alcoholic drink, chewing gum, and any substance, including water used in the
food during the manufacture, preparation or treatment. However, food does not
include animal feed, live animals unless they are prepared or processed for
human consumption; it does not also include plants prior to harvesting, drugs
and medicinal products, cosmetics, narcotic or psychotropic substances.
II Service: The term “Service” means service of any description which is made
available to a potential user. The Act brings out a list of services which are
included under the purview of the Act. These include services such as banking,
financing, insurance, transport, processing, supply of electrical or other energy,
boarding, lodging or both, housing construction, entertainment, amusement or
the purveying of news or other information.
The provision explicitly excludes the following services from its ambit:
• services rendered free of cost
• contracts of personal service
For instance, if an owner of a restaurant invites customers to try out a new
cuisine and provide their feedback, it does not amount to services within the
ambit of the Act since it is provided free of cost. The expression “personal
service” relates to such services that are of a personal nature. based on the
relationship of master and servant. There is in these cases an obligation to obey
orders with respect to the work to be performed. Also, in these cases, one also
usually specifies the mode and manner of performance.
Therefore, it stands to reason that when the services are being performed as per
the directions of the master, he can’t really complain against the services being
performed.
This contrasts with the expression of “contract for personal service”. Here the
person availing the service can only specify what needs to be done, but not how
it needs to be done. Such services are more of a professional or technical nature.
For example, when one engages a doctor that would be a contract for services.
But when one employs, say, a chef that would be a contract for personal
services. Though one can file a consumer complaint for deficiency of services
against a medical practitioner, one would not be able to do so against one’s chef.
The present technology-driven age provides for contemporary forms of products
that are provided in a digitised form. For instance, software licence, online
gaming, electronic books and availing of cloud service are all based on licensing
or subscription models. Some businesses also offer both goods and services as
unified or bundled package. For instance, a computer along with its hardware
and software components bundled as a single package. Technically, these
products do not fit completely either under the definition of goods or services.
Hence, The new Consumer Protection Act, 2019 brings such products under the
nomenclature of “Digital Products” and so they are covered. However, it doesn’t
specifically define the term “digital products”
To sum up, services rendered free of cost and contracts of personal service is
not covered under the Act.
The Act deals with five major themes or kinds of consumer complaints:
1. unfair trade practice,
2. restrictive trade practice,
3. defect in goods,
4. deficiency in service,
5. product liability.
I Unfair trade Practices under CPA 1986 and 2019
Definition of Unfair Trade Practice Under Consumer Protection Act, 1986
Section 2(1) (r) of Consumer Protection Act, 1986 also defines the term ‘unfair trade practice’.
It reads:
"unfair trade practice" means a trade practice which, for the purpose of promoting the sale,
use or supply of any goods or for the provision of any service, adopts any unfair method or
unfair or deceptive practice including any of the following practices, namely;—
(1) the practice of making any statement, whether orally or in writing or by visible
representation which,—

(i) falsely represents that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new
goods;
(iv) represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which
such seller or supplier does not have;
(vi) makes a false or misleading representation concerning the need for, or the usefulness of,
any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life
of a product or of any goods that is not based on an adequate or proper test thereof;
Provided that where a defence is raised to the effect that such warranty or guarantee is based
on adequate or proper test, the burden of proof of such defence shall lie on the person raising
such defence;
viii) makes to the public a representation in a form that purports to be—

(i) a warranty or guarantee of a product or of any goods or services; or

(ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or
continue a service until it has achieved a specified result, if such purported warranty or
guarantee or promise is materially misleading or if there is no reasonable prospect that
such warranty, guarantee or promise will be carried out;

(ix) materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided, and, for
this purpose, a representation as to price shall be deemed to refer to the price at which
the product or goods or services has or have been sold by sellers or provided by
suppliers generally in the relevant market unless it is clearly specified to be the price at
which the product has been sold or services have been provided by the person by
whom or on whose behalf the representation is made;

(x) gives false or misleading facts disparaging the goods, services or trade of another
person.
Unfair Trade Practice under The Consumer Protection Act, 2019:
Clause (47) of Section 2 of The Consumer Protection Act, 2019 defines ‘Unfair Trade
Practice’ as: –
“Unfair trade practice” means a trade practice which, for the purpose of promoting
the sale, use or supply of any goods or for the provision of any service, adopts any
unfair method or unfair or deceptive practice including any of the following practices,
namely
(i) creating any statement, whether or not orally or in writing or by visible
representation together with by means that of electronic record, which—
(a) incorrectly represents that the products square measure of a selected customary,
quality, quantity, grade, composition, vogue or model;
(b) incorrectly represents that the services square measure of a selected customary,
quality or grade;
(c) incorrectly represents any re-built, second-hand, renovated, reconditioned or recent
product as new goods;
(d) represents that the products or services have support, approval, performance,
characteristics, accessories, uses or advantages that such goods or services don’t have;
(e) represents that the vendor or the provider contains a support or approval or
affiliation that such trafficker or provider doesn’t have;
(f) makes a false or deceptive illustration regarding the necessity for, or the quality of,
any product or services
(g) provides to the general public any assurance or guarantee of the performance,
efficacy or length of lifetime of a product or of any product that’s not supported an
adequate or correct take a look at thereof:
Provided that wherever a defence is raised to the result that such warranty or
guarantee is predicated on adequate or correct take a look at, the burden of proof of
such defence shall lie on the person raising such defence;
(h) makes to the general public an illustration during a kind that purports to
be—
(A) a guaranty or guarantee of a product or of any product or services; or
(B) a promise to exchange, maintain or repair a piece of writing or any part therefrom
or to repeat or continue a service till it’s achieved a specified result, if such supposed
assurance or guarantee or promise is materially deceptive or if there is no affordable
prospect that such assurance, guarantee or promise are going to be carried out;
(i) materially misleads the general public regarding the worth at that a product
or like products or product or services, are or square measure, usually
oversubscribed or provided, and, for this purpose, an illustration on value shall
be deemed to visit the worth at that the product or product or services has or
are oversubscribed by sellers or provided by suppliers typically within the
relevant market unless it’s clearly such to be the worth at which the
merchandise has been oversubscribed or services are provided by the person by
whom or on whose behalf the illustration is made;
(j) provides false or deceptive facts uncomplimentary the products, services or
trade of another person.
Explanation. —For the needs of this sub-clause, an announcement that’s,—
(A) expressed on a piece of writing offered or displayed purchasable, or on its
wrapper or container; or
(B) expressed on something connected to, inserted in, or related to, an article
offered or displayed purchasable, or on something on that the article is mounted
for display or sale; or
(C) contained in or on something that’s oversubscribed, sent, delivered, transmitted or
in any other manner whatever created offered to a member of the general public, shall
be deemed to be an announcement created to the general public by, and solely by, the
one that had caused the statement to be therefore expressed, created or contained;
(ii) allowing the publication of any ad, whether or not in any newspaper or otherwise,
together with by manner of electronic record, for the sale or supply at a bargain price
of products or services that don’t seem to be meant to be offered for sale or provide at
the bargain price, or for an amount that’s, and in quantities that are, reasonable,
having relevancy the character of the market during which the business is carried on,
the character and size of business, and therefore the nature of the advertisement.
Explanation. —For the aim of this sub-clause, “bargain price, means that, —
(A) a value that’s explicit in any ad to be a bargain price, by respect to a standard value
or otherwise; or
(a) the giving of gifts, prizes or alternative things with the intention of not providing
them as offered or making impression that one thing is being given or offered freed
from charge once it’s totally or part lined by the amount charged, within the group
action as a whole;
(b) the conduct of any contest, lottery, game of probability or talent, for the purpose of
promoting, directly or indirectly, the sale, use or provide of any product or any business
interest, except such contest, lottery, game of probability or talent as could also be
prescribed;
(c) withholding from the participants of any theme giving gifts, prizes or alternative
things freed from charge on its closure, the data regarding final results of the theme.
Explanation.—For the aim of this sub-clause, the participants of a theme shall be
deemed to possess been help of the ultimate results of the theme wherever such
results square measure within an affordable time revealed, conspicuously within the
same newspaper during which the theme was originally advertised;
(iv) allowing the sale or provide of products meant to be used, or are of a kind
seemingly to be utilized by shoppers, knowing or having reason to believe that the
goods don’t befits the standards prescribed by the competent authority regarding
performance, composition, contents, design, constructions, finishing or packaging as
square measure necessary to stop or scale back the chance of injury to the person
victimisation the goods;
(v) allowing the billboard or destruction of products, or refusal to sell the goods or to
form them offered purchasable or to produce any service, if such hoarding or
destruction or refusal raises or tends to boost or is meant to boost, the cost of these or
alternative similar product or services;
(vi) producing of spurious product or giving such product purchasable or
adopting deceptive practices within the provision of services;
(vii) not issue bill or money memorandum or receipt for the products
oversubscribed or services rendered in such manner as could also be prescribed;
(viii) refusing, when merchandising product or rendering services, to require
back or withdraw defective product or to withdraw or discontinue deficient
services and to refund the thought therefrom, if paid, inside the amount
stipulated within the bill or money memorandum or receipt or within the
absence of such stipulation, inside a amount of thirty days;
(ix) disclosing to other person any personal info given in confidence by the buyer
unless such revealing is formed in accordance with the provisions of any law for
the time being in force.
M/s. Hindustan Liver Limited Bombay v/s The M.R.T.P. commission, (1997) SC:
SC held in this case that the term ‘trade practice’ is wide enough to include any trade
practice even if it is in relation to carrying on the trade.
To summerise: “Unfair Trade Practices” means a trade practice for the purpose of
promoting sale, use or supply of goods or for service adopts any unfair or deceptive
practices.
• 2(1) (r) of the Consumer Protection Act, 1986 enumerates the concept of unfair trade
practices.
• It means a practice of making any statement either orally, written or by visible
representation.
• Falsely represents the goods and service to be of a particular standard, quality, grade,
quantity, composition or style.
• Falsely represents any rebuilt second hand, renovated, old goods as new.
• Represents the goods or services to have sponsorship, approval performance, uses or
benefits which it doesn’t have.
• Represents the seller or supplier to have sponsorship which it doesn’t have.
• Makes false or misleading statements concerning the need for good and services.
• Gives or makes false assurance to the public of a guarantee which is not based
on the adequate or proper test.
• Makes false representation to replace, maintain or repair an article.
• Misleads the public concerning the price at which products are accordingly
sold, gives false or misleading facts disparaging the goods, services or trade of
another person.
• Permits the publication of any advertisement whether in any newspaper or
otherwise, for selling at a bargain price but actually, they are not offered for
sale.
• Permits the offering of gifts, prizes or other items with the intention of not
providing them as offered or charging for the same.
• Permits the sale or supply of goods intended to be used by consumer knowing
that it doesn’t conform to the standards prescribes by the competent
authority.
• Permits hoarding or destruction of goods.
• Manufacturing spurious goods or offering such goods for sale or adopting
deceptive trade practices.
 The new Act CPA 2019, adds three types of practices to the list, namely: failure
to issue a bill or receipt; refusal to accept a good returned within 30 days;
and disclosure of personal information given in confidence, unless required by
law or in public interest. Contests/ lotteries may be notified as not falling under
the ambit of unfair trade practices.
Basic ingredients of “unfair trade Practice”:
In case of Ludhiana Improvement Trust v. Shakti Co.op. House Building Society
Ltd, SC 2009, it was held by SC that the basic ingredients of “Unfair Trade
Practice “ are:
(i) It must be trade practice;
(ii) The trade practice must be employed for the purpose of promoting the sale,
use or supply of any goods or for the provisions of any service; and
(iii) The trade practice adopts any unfair method or unfair or deceptive practice
including any of the practices enumerated in clauses (1) to (6) of Section
2(1)( r) of the CPA , 1986.
Provided the complainant is able to establish that he is a “consumer” within the
meaning of the Consumer under this Act.
Case: United Breweries Limited v. Mumbai Grahak Panchayat (2007) NC,

The Mumbai Grahak Panchayat lodged a complaint against United Breweries

Limited as well as Western Railway for engaging in unfair trade practices by
prevalently displaying/ exhibiting false, misleading, and surrogate liquor
advertisements on the coaches of Western Railway trains and thereby seeking
abolishment of the same.
Alcoholic drinks such as Bagpiper, London Pilsner, and Derby Special Whisky and
Beer were all produced by United Breweries. According to the commercial, the
tag line for Bagpiper was “India’s No. 1 and the World’s No. 3”. It was observed
by the National Consumer Disputes Redressal Commission, that the said tag line
used in the commercial matches with the description Bagpiper whisky and not
Bagpiper soda. Furthermore, it was found that there was no Bagpiper soda
available in the market.
The Railway Authorities were notified of the complaint, but they refused to stop
the advertisement, stating that Agreements had already been signed.
Dissatisfied with the explanation, a complaint was filed with the State
Commission against United Breweries Limited and Western Railways, seeking the
discontinuance of the allegedly deceptive advertisements for Bagpiper, London,
Pilsner, and Derby Special on Western Railway trains.
That the ASCI was also approached by the complainant regarding the Bagpiper
soda and London Pilsner advertisements. ASCI sustained the complaints ruling
that the advertisement is misleading due to ambiguity, serves as a surrogate
advertisement for an alcoholic beverage brand, and violates the Code for
Self-Regulation of Advertising Content in India. A written request was issued to
the advertiser to remove the advertisements at the earliest.
Uptron India Ltd. v. Mrs. Sheema & Associate (1995) :- It was held in this case
that where the students were falsely lured to pay a huge amount of tuition fees,
but all went futile due to mismanagement of organizers, it is known as unfair
trade practices. To conclude:
• It contains false and misleading statement;
• Effect of representation on common man;
• The representation leads a reasonable person to a wrong conclusion.
• Constituents of Unfair Trade Practices:
• Misleading and false advertisement:
• Numerous deceptive, disruptive and misleading are followed to increase sales
and in turn, they mislead the consumers.
• False advertisements offering gifts, high investments, heavy discounts have
always misled people.
• Unsafe and Hazardous Products:-
• Low-quality products.
• High price.
• False weights and measures.
• Sellers cheat consumers by using defective and weighing machines.
• Sellers release less quantity of goods and this led to increasing in demand and
sale of goods at a very high price.
• Produces release goods in the market at a low price, and this can cause serious
health issue to consumers.
• Falsifying trademarks is another form of unfair trade practice carried on by the
manufactures.
• Generally, manufacturers tend to copy well-known trademarks and in the
process of doing so, delivers low-quality products to consumers.
• All the above constitute unfair trade practice.
Illustrations of Unfair Trade Practices:
• A dress has been used for 2 months and is now being sold by a seller as a new
dress.
• The battery of a mobile phone is guaranteed to work well for one year but
wears away in a month.
• A geyser that is not ISI approved has an ISI mark.
• A table of Rs. 500 is sold online with Rs. 600 delivery charge, but the good is
claimed by the seller to be free of cost.
II A restrictive trade practice definition under Section 2(1)(nnn) of the
Consumer Protection Act, 1986 and the definition of Restrictive Trade Practice
is defined by Section 2(41) of CPA 2019 are similar
Means a trade practice which tends to bring about manipulation of price or its
conditions of delivery or to affect flow of supplies in the market relating to good
or services in such a manner as to impose on the consumers unjustified costs or
restrictions and shall include:
(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 led to rise in the prices.
(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 good or services;
Explanation : Restrictive trade practices are targeted at the consumers who are
burdened with restriction and unjustified costs through the practices of the trader. The
trader manipulates the price or the conditions of delivery of the product which results
in restrictive trade practice. This affects the supply of goods and services in the market
and includes:
A likely or definite rise in the price of a commodity due to the delay of the trader to
provide the good or service.
A compulsion to purchase, hire or avail any good or service in order to obtain any
other good or service.
Illustrations of Restrictive Trade Practices:
1. A trader accumulates his stock of food grains in order to increase the price of the
grains in the market so that he can sell it at a higher price.
2. A compulsion to purchase, hire or avail any good or service in order to obtain any
other good or service.
 3. where a car dealer who has tied up with an insurance company sells the car
with a precondition that the customer must purchase insurance of the
particular company along with the car. Or a gas distribution agency who offers
to provide gas connection to its customers only if they purchase a gas stove
from the dealer. These offers tend to limit the consumer’s right to choice.
So, a consumer who is not satisfied with the insurance policy or quality of the
gas stove may file a complaint under the category of restrictive trade practice.
These arrangements are also called “tie-in agreements”.
However, not all bundled products constitute restrictive trade practice. Some
products offered as a single unit at a composite price may also be beneficial to
the consumer. For example, a furniture dealer selling sofa at Rs 20,000 and bed
at Rs 15,000 has a composite offer to sell both sofa and bed for Rs 30,000 only.
Here the choice is open to the customer to buy the products single or
composite. And such offers, being beneficial to the consumer, does not amount
to a restrictive trade practice.
Difference Between Unfair Trade Practice and Restrictive Trade Practice:
An unfair trade practice is the deceitful and misleading representation of goods
and services which portrays a false image of the product. Information regarding
utility, quality and standard, style etc of goods and services may be twisted
under this practice.
Restrictive Trade Practice, however, is when traders try to change the flow of
money in the market in order to maximize their profits and to gain an upper
hand in the market competition. Here, independent sellers hike their collective
profits by limiting supply by controlling selling prices or the prices of purchased
inputs. This is the primary difference in unfair trade practice and restrictive
trade practice.
An unfair trade practice is defined under Section 2(1)(r) of the Consumer
Protection Act, 1986, whereas, Restrictive trade practice is defined under Section
2(1)(nnn).
This is the fundamental difference between the two, unfair trade practices being
a broader concept.
 • In order to buy a television from trader X, one needs to buy a table first
Case: Sikka Gas Agency vs Satyendra Prasad ,2017
He alleged that in February 2015, the gas agency stopped supply of cylinders at
his home. He stated when he visited the agency to book a cylinder, his request
was turned down. He said the agency stated that the name against which the gas
connection was issued and the one mentioned on his Aadhar Card were
different. His name as mentioned in connection passbook is Satinder Kumar, but
in Aadhar Card it is Satyendra Prasad.
He complained that he had submitted an affidavit with the gas agency, which
stated that his real name was Satyendra Prasad and as such correction could be
made in their record. He stated that instead he was forced to buy a new gas
connection by paying Rs 5,300.
The forum stated that as the opposite party was in commanding position it
compelled the complainant to apply for a fresh gas connection, under the threat
of non-supply of the refill. The forum held the gas agency responsible for
deficiency in service.
 Defect and deficiency under CPA 2019

III Defect : Section 2(10) of CPA 2019 defines “defect” , which means any fault,
imperfection or shortcoming in the quality, quantity, potency , purity or standard
which is required to be maintained by or under any law for the time being in
force or under any contract, expressed or implied or as is claimed by the trader
in any manner whatsoever in relation to any goods or products and he
expression “defective” shall be construed accordingly.
Illustration: A consumer purchases an air-cooler manufactured say by
Company X for Rs 20,000. The air-cooler had a warranty for one year. Within two
months of purchase, the air-cooler failed to cool the air and the main motor
subsequently burst. The said air-cooler having manufacturing defects, the
consumer approached the manufacturer to rectify the defects in the air-cooler.
Neither did the manufacturer rectify the defects nor replace the defective cooler
despite repeated requests. The consumer can file a complaint against the
company. This can be a good example of a complaint constituting a defect in
goods.
Now, such defect may be a manufacturing defect or a defect in quantity or
standard of products. While interpreting the term “manufacturing defect”, the
National Commission in the case of Maruti Udyog Ltd. pointed to the definition
to mean as: “An unintended aspect of the finished product due to error or
omission in assembly or manufacture, that causes injury.”
So in the earlier illustration, the air-cooler had a manufacturing defect for which
the consumer approached the forum to remove the defect in goods or replace it
with a new one. To illustrate a general defect, a computer supplied which is not
in accordance with specifications spelt out in the quotation, though having paid
the same price as specified in the quotation can also amount to defect in goods
within the meaning of the Act. It was held in the case of Farooq Hazi Ismail
Saya that household appliances which are not in accordance with the prescribed
standards of ISI are unsafe and hence defective.
In the recent Maggi case, the Department of Consumer Affairs had filed a
complaint against Nestle India Ltd.
• One of the grounds for complaint was defect in goods. There were three
reasons to hold the company liable on such grounds:
• The tastemaker in the Maggi noodles was found to have lead content in
contravention of all standards relating to safety of such goods as required to
be complied with, by or under the law.
• The product also contained monosodium glutamate (MSG) in excess though
the packaging contained a label which said, “No added MSG”.
• The company sold “Maggi Oats Noodles” without the necessary risk
assessment and product approval as mandated under the Food Safety and
Standards Act, 2006.
In all such cases of defect in goods, the consumer may file a complaint against
the manufacturer or trader or both, depending on the nature of the defect.
 III Deficiency: It is defined by Section 2(11) of the CPA 2019, means any fault,
imperfection, shortcoming or inadequacy in the quality, nature and manner of
performance which is required to be maintained by or under any law for the time being
in force or has been undertaken to be performed by a person in pursuance of a
contract or otherwise in relation to any service and includes:
(i) Any act of negligence or omission or commission by such person which causes loss
or injury to the consumer; and
(ii) Deliberate withholding of relevant information by such person to the consumer.
Under the Consumer Protection Act, 2019, a complaint can be filed when a consumer
detects deficient in a service. However, the threshold of deficiency must fall under the
ambit of the definition of deficiency given under the Consumer Protection At, 2019.
Deficiency of service can be witnessed in any service sector, where there is buyer-seller
relationship, such as, railways, banks, legal aid, electricity, construction, education,
transportation, aviation, hospitality, restaurants, entertainment etc. Deficiency of
service can have minor to grave consequences, ranging from inconvenience or
harassment to mental or physical injury to death, thereby leading to legal
consequences.
A service to be deficient has to fall under the following criteria
• That service should be made available and accessible to the potential buyers, which
means that service has to be provided not only to the actual buyer but also to those
who are capable of using it.
1. The service should not be free of charge, such as any medical services
provided by government hospitals is not a service according to the Consumer
Protection Act.
2. Wilful and deliberate concealment of important information, commission, or
negligence of acts by the seller may lead to any injury or loss to the
customers/consumers.
3. Any of such acts which a prudent and prompt seller is supposed not to do, but
he deliberately does its opposite, such acts also include deficiency.
4. should not be under the personal service contract.
Hence, if any service has been found deficient under the above-mentioned
criteria then it will be awarded compensation under the Act. So any action and
service not falling under this definition and the criteria provided under the Act
will not be considered as deficient service.
There may be also some unavoidable circumstances that are beyond the limit of
control of the person who is performing the service. If such circumstances stop a
person from delivering or completing service of the desired and required quality,
nature, and manner such persons will not be compensated or penalized under
the Act.
The circumstances like where X agreed to provide internet connection facility to
Y but due to curfew he unavoidably prevailed from delivering the service. Hence,
in such cases, the person will not be liable for the deficient service.
The Act imposes strict liability on the manufacturer for causing harm by its
defective products. So this means that the consumers can file suit against the
manufacturer without proving that the manufacturer was negligent. The mere
necessity is to prove the defect in the product and the damage or injury was
caused by the product or service only.
Thus the suit can be filed against the person or entity which has provided
deficient services to an individual or a group of persons. According to the
pecuniary value of the case, the complaint has to be filed in the district forum,
state forum, or national commission.
But in case if the act of respondent is found to be in good faith then he will not
be entitled to the relief for deficiency in service under the Act. The delivery of
deficient service should be considered and decided in each case according to the
facts and circumstances of the case for which no hard and fast rule cannot be
laid down.
In a case, i.e.Lucknow Development Authority v. Roop Kishore Tandon, the
failure of a Housing Board to give possession of the flat after receiving the price
and after registering it in favour of the allottee was held to be deficiency in
service. Similarly, in Airpak Couriers case, a consignment of important papers
was handed over to the courier M/s Airpak Couriers (P) Ltd. The consignment
did not reach its destination. The State Commission held it to be a case of
deficiency in service and granted compensation. In the digital age, there are
several complaints against e-commerce companies on the grounds of
deficiency in service due to late delivery of goods/services, delivery of products
not as per description, non-refund, etc.
In a case brought before the National Commission in Rediff.com, it was held
that not providing sufficient information on the website of the e-commerce
business, thereby causing inconvenience to the consumer is also deficiency in
service.
 case: Nandhlal Lohariya v. Jagdish Chand Purohit and others, SC, 2021
Services of a Lawyer
The petitioner filed three complaints against BSNL through his three Counsels
which were rejected by the District Consumer Forum on merit. Aggrieved, he
inturn went onto file complaint against his Counsels citing 'deficiency in
service' on their part in contesting his cases before the District Consumer Forum
and claimed for a compensation of ₹15 lakhs.
The complaint was duely dismissed by the District Consumer Forum and the
order was later upheld by the State and National Consumer Dispute Redressal
Commission as well.
The present petition before Supreme Court is against the National Consumer
Dispute Redressal Commission's (NCDRC) order upholding the above decision.
The Court on the outset noted that the complaints against BSNL came to be
dismissed on merits and there was no negligence on the part of the advocates at
all. Stating that loosing and winning is part of the process and outcomes can't be
predicted in advance, the Court said:
"In every litigation, either of the party is bound to lose and in such a situation
either of the party who will lose in the litigation may approach the consumer fora
for compensation alleging deficiency in service, which is not permissible at all“
Insurance:
Gurshinder Singh v Shriam General Insurance Co. Ltd and Ors, it was ruled that
with a reasonable and satisfactory explanation, insurance claims were not to be
declined due to technical grounds. It was further opined by the Court that if the
insurance claim is declined by the Insurer because of untimely intimation of
occurrence of theft/robbery, it would be considered as a technical ground of
rejection and the same would be unjust and not fair, if the respective claim in
question has already been verified. Hence, it was held by the Court that, mere
delay in intimating the insurance company about the theft must not act as a valid
ground to decline or repudiate the insurance claim, which has already been
proved to be genuine.
•
Indian Medical Council v V.P. Shanta, 1995 SC
This case is a result of medical negligence from medical profession. This
landmark decision recognized patient’s rights through giving them the consumer
status where complaints could be lodged in a case of deficiency in the field of
medical services under the Consumer Protection Act, 1986. The liability of doctor
and hospital management arises when a patient is admitted. The standard duty
of care must be maintained by the hospital. When a patient is admitted, he/she
is also considered as a consumer.
The Supreme Court emphasized on the interest and safeguards of patients
which is given the upmost importance.
Identify the similarities between the definition of manufacturer and trade under
the CPA 2019

According to Section 2 (24) "manufacturer" means a person who-

(i) makes any goods or parts thereof; or
(ii) assembles any goods or parts thereof made by others; or
(iii) puts or causes to be put his own mark on any goods made by any other
person;
According to Section 2(45) "trader", in relation to any goods, means a person
who sells or distributes any goods for sale and includes the manufacturer
thereof, and where such goods are sold or distributed in package form, includes
the packer thereof;
 Product Liability under the CPA 2019
Before passing the CPA Act 2019, there was no comprehensive legislation to cover the
aspect of product liability. A product liability claim was lodged within the existing laws
of contract and tort. Absent a specific regime governing product liability, such claims
were founded and derived from legislations such as the Sale of Goods Act, 1930;
the Consumer Protection Act, 1986; and the Indian Contract Act, 1872 and Indian Penal
Code and so on. These claims were also based on case laws, both in the civil and
criminal aspects, leading to much confusion and different approaches.
Certain sector-specific laws touching upon principles of product liability such as
the Drugs and Cosmetics Act, 1945 and the Prevention of Food Adulteration Act,
1954 (which stood repealed by the Food Safety and Standards Act, 2006) were also
relied upon.
This has now been addressed to a large extent by The Consumer Protection Act, 2019 .
A product liability action can be filed against a ‘product manufacturer’ or a ‘product
service provider’ or a ‘product seller’, as the case may be. CPA 2019 defines each of
these expressions in very wide terms to bring within their fold every possible aspect of
a product liability claim. CPA 2019 also delineates the situations in which they will be
held liable.
Definitions for the concepts pertaining to product liabilty
According to Section 2(33) , A "product" means any article or goods or substance
or raw material or any extended cycle of such product, which may be in gaseous,
liquid, or solid state possessing intrinsic value which is capable of delivery either
as wholly assembled or as a component part and is produced for introduction to
trade or commerce, but does not include human tissues, blood, blood products
and organs;
According to Section 2(34), "product liability" means the responsibility of a
product manufacturer or product seller, of any product or service, to
compensate for any harm caused to a consumer by such defective product
manufactured or sold or by deficiency in services relating thereto;
According to Section 2(35), "product liability action" means a complaint filed by
a person before a District Commission or State Commission or National
Commission, as the case may be, for claiming compensation for the harm caused
to him;
According to Section 2(36) "product manufacturer" means a person who-
(i) makes any product or parts thereof; or
(ii) assembles parts thereof made by others; or
(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
(v) designs, produces, fabricates, constructs or re-manufactures any product before its
sale; or
(vi) being a product seller of a product, is also a manufacturer of such product;
According to Section 2(37) "product seller", in relation to a product, means a person
who, in the course of business, imports, sells, distributes, leases, installs, prepares,
packages, labels, markets, repairs, maintains, or otherwise is involved in placing such
product for commercial purpose and includes-
(i) a manufacturer who is also a product seller; or
(ii) a service provider,
but does not include-
(a) a seller of immovable property, unless such person is engaged in the sale of
constructed house or in the construction of homes or flats;
(b) a provider of professional services in any transaction in which, the sale or use
of a product is only incidental thereto, but furnishing of opinion, skill or services
being the essence of such transaction;
(c) a person who-
(I) acts only in a financial capacity with respect to the sale of the product;
(II) is not a manufacturer, wholesaler, distributor, retailer, direct seller or an
electronic service provider;
(III) leases a product, without having a reasonable opportunity to inspect and
discover defects in the product, under a lease arrangement in which the
selection, possession, maintenance, and operation of the product are controlled
by a person other than the lessor;
According to Section 2(38) "product service provider", in relation to a product,
means a person who provides any service in respect of such product;
 Section 82 to 87 of Chapter VI of the CPA 2019 deals with product liability
• According to Section 82, this chapter shall apply to every claim for
compensation under a product liability action by a complainant for any harm
caused by a defective product manufactured by a product manufacturer or
service by a product service provider or sold by a product seller.
• According to Section 83, a Product liability action may be brought by a
complainant against a product manufacturer or a product service provider or a
product seller, as the case may be, for any harm caused to him on account of a
defective product.
• According to Section 84,
(1) the product manufacturer will be liable in the following circumstances:
(a) The product contains a manufacturing defect; or
(b) The product is defective in design; or
(c) There is a deviation from manufacturing specifications; or
(d) The product does not conform to the express warranty; or
(a) The product fails to contain adequate instructions of correct usage to prevent any
harm or any warning regarding improper or incorrect usage.
(2) A product manufacturer shall be liable in a product liability action even if he proves
that he was not negligent or fraudulent in making the express warranty of a product.
Section 85, this section provides for the grounds on which a product service provider
shall be liable in a product liability action:-
A product service provider shall be liable in product liability action, if-
(a) The service provided by him was faulty, or imperfect or deficient or inadequate in
quality, nature or manner of performance which is required to be provided by or
under any law for the time being in force or pursuant to any contract or otherwise;
or
(b) There was an act of omission or commission or negligence or conscious
withholding any information which caused harm; or
(c) The service provider did not issue adequate instructions or warnings to prevent any
harm; or
(d) The service did not conform to express warrant or the terms o the contract.
 Section 86 of CPA 2019 , elaborated the Liability of a product seller
A Product seller , who is not a product manufacturer shall be liable if:
(i) He has exercised substantial control over the designing, testing, manufacturing
packaging or labelling of a product that caused harm or
(ii) He has altered or modified the product and such alteration or modification was the
substantial factor in causing the harm; or
(iii) He has made express warranty independent of any express warranty made by the
manufacturer and the product failed to conform to such warranty made by the
product seller which caused the harm; or
(iv) The product has been sold by him and the identity of product manufacturer of such
product is not known, or if known, the service of notice process or warrant cannot
effected on him or he not subject to the law which is in force in India or the if any,
passed or to be passed cannot be enforced against him or
(v) He has failed to exercise reasonable care in assembling, inspecting or maintaining
such product or he did not pass on the warnings or instructions of the product
manufacturer regarding the dangers involved or proper usage of the product while
selling such product and such failure was the proximate cause of the harm.
 Section 87: this Section provides for exceptions to product liability Action:
(1) A product liability action cannot be brought against the product seller if, at
the time of harm , the product was misused , altered or modified .
(2) In any product liability, action based on the failure to provide adequate
warnings or instructions, the product manufacturer shall not be liable, if-
(a) The product was purchased by an employer for use at the workplace and the
product manufacturer had provided warnings or instructions to such
employer;
(b) The product was sold as a component or material to be used in another
product and necessary warnings or instructions were given by the product
manufacturer to the purchaser of such component or material, but the harm
was caused to the complainant by use of the end product in which such
component or material was used;
(c) The product was one which was legally meant to be used or dispensed only
by or under the supervision of an expert or a class of experts and the
product manufacturer had employed reasonable means to give the warnings
or instructions for usage of such product to such expert or class of experts; or
 (d) The complainant while using such product, was under the influence of
alcohol or any prescription drug which had not been prescribed by a medical
practitioner.
(3) A product manufacturer shall not be liable to instruct or warn about a
danger which is obvious or commonly known to the user or consumer of such
product or which, such user or consumer, ought to have known, taking into
account the characteristics of such product.
In other circumstances it is left to the courts to interpret the provisions and
circumstances.
Cases: General Motors, a well-known car manufacturing company faced a
product liability suit in 2014 with respect to faulty ignition switch in many of its
automobile models. The faulty switch was reported to shut off the engine during
driving or disable power steering and brakes and even prevent airbags from
inflating that had caused several accidents and deaths. Likewise, a well-known
chocolate manufacturing company was sued for insects found in the chocolate.
To sum up, when compared to the Ac of 1986, CPA 2019 is more
comprehensive and in tune with the consumer protection regimes elsewhere
around the world. There is clear shift in principle of buyer beware to seller
beware. product liability refers to an action brought by a consumer for
personal injury caused by the use of the product, which could be a design
defect, manufacturing defect or even a failure to warn. The parties liable for
product liability under the Consumer Protection Act, 2019 are product
manufacturer, product service provider and product seller. The Act also
provides for exceptions to Product Liability Act.
CPA 1986 CPA 2019
1. Ambit of Law: All goods and services, including
telecom and housing construction, and
All goods and services for all modes of transactions (online,
consideration, while free and teleshopping, etc.) for consideration.
personal services are excluded. Free and personal services are
excluded.
2. Unfair trade Practices:
Includes six types of such practices,
The new Act adds three types of
like false representation, misleading practices to the list, namely: failure to
advertisements issue a bill or receipt; refusal to accept
a good returned within 30 days;
and disclosure of personal information
given in confidence, unless required by
law or in public interest. Contests/
lotteries may be notified as not falling
under the ambit of unfair trade
practices.
CPA 1986 CPA 2019

3. Product Liability: Claim for product liability can be made

against manufacturer, service provider, and
In the earlier Act there were no seller. Compensation can be obtained by
provisions regarding the product proving one of the several specified
liability. In the earlier Act Consumerconditions in the Act.
could approach the Civil Court but
not to the Consumer Court. The new Act adds three types of practices
to the list, namely:
failure to issue a bill or receipt;
4. Unfair trade Practices:
refusal to accept a good returned within
30 days; and
Includes six types of such practices, disclosure of personal information given in
like false representation, misleading confidence, unless required by law or in
advertisements public interest.
Contests/ lotteries may be notified as not
CPA 1986 CPA 2019
5. Consumer Protection The new Act makes CPCs advisory
Councils(CPCs): bodies for promotion and
CPCs promote and protect the rights protection of consumer rights.
of consumers. They are established at Establishes CPCs at the District,
the district, state, and national level. State and National Level.

6. Unfair Contracts: Defined as contracts that cause

significant change in consumer
No Provision rights. Lists six contract terms
which may be held as unfair.
7. Alternative Dispute Redressal
Mechanism Mediation cells will be attached to
No Provision the District, State, and National
Commissions
CPA 1986 CPA 2019
Establishes the Central Consumer
8. Regulator: Protection Authority (CCPA) to
promote, protect, and enforce the
rights of consumers as a class. CCPA
No Provision: may: issue safety notices; pass orders
to recall goods, prevent unfair
practices, and reimburse purchase
price paid; and impose penalties for
false and misleading advertisements.
9. Pecuniary Jurisdiction of Commissions:
District: Up to Rs 20 lakh;
District: Up to Rs one crore;
State: Between Rs 20 lakh and up to Rs
one crore; State: Between Rs one crore and up
National: Above Rs one crore. to Rs 10 crore;
National: above Rs 10 crore.
CPA 1986 CPA 2019
10. Composition of Commissions: District: Headed by a president and at
least two members.
District: Headed by current or former State: Headed by a president and at
District Judge and two members. least four members.
State: Headed by a current or former National: Headed by a president and
High Court Judge and at least two at least four members
members.
National: Headed by a current or
former Supreme Court Judge and at
least four members.
Defines direct selling, e-commerce and
11. E. Commerce: electronic service provider. The central
No Provision government may prescribe rules for
preventing unfair trade practices in
e-commerce and direct selling.
CPA 1986 CPA 2019
12. Penalties:
If a person does not comply with If a person does not comply with
orders of the Commissions, he may orders of the Commissions, he
face imprisonment between one may face imprisonment up to
month and three years or fine three years, or a fine not less than
between Rs 2,000 to Rs 10,000, or Rs 25,000 extendable to Rs one
both. lakh, or both.

13. Appointments: No provision for Selection

Committee. Central Government
Selection Committee (comprising a will appoint through notification.
judicial member and other officials)
will recommend members on the
Commissions.
CPA 1986 CPA 2019
Jurisdiction to file a complaint:
Complaint could be filed in a Complaint can be filed in a
consumer court where the seller’s consumer court where the
office is located. complainant resides or work.

Mis-leading Advertisement A separate provision has been

Earlier there was no sepera provision provided regarding Mis-leading
for the misleading or false and false promotion of the
advertisement. product.
The role of Voluntary consumer organizations in protecting and promoting the
consumer interest
Today, consumer organizations are playing a dominating role in engaging the
consumers to lift their voice against exploitation by the business individual who
sells inferior and faulty products. In educational institutions also consumer rights
are taught, to prepare the student’s courses of study by keeping in view the
interests of the consumers in the society
Consumer organizations are the focused group that seek to protect people from
the corporate abuse led by the business owners - like unsafe products, predatory
lending, false advertising and pollution to the environment. Consumer
Organizations may even operate through the protests.
Various consumer organizations and non-government organizations set up for
non-profit motive have a strong role in promoting the interests of the consumers.
It can be summed up as under:
1. Educating the general public and educating the consumers, about consumer
rights by organizing training programmes, seminars & workshops.
(2) Accelerating Consumer Awareness. To accomplish this task following efforts
are made:
(i) To publish brochures, journals and monographs.
(ii) To arrange conferences, seminars and workshops.
(iii) To educate consumers to help themselves.
(iv) To provide special education to women about consumerism.
(v) To encourage to follow desirable consumption standards.

(3) Collecting Data on Different Products and testing them:

These organisations collect samples of different products from time to time and
test them. After that the results of the tests are declared to public. In this way,
these organisations provide prior information to consumers about the
authenticity of product and protect them. Apart from this, these organisations
also work in conducting investigation/ research on consumer’s problems.
(4) Filing Suit on Behalf of Consumers:
Whenever a consumer fails to raise his voice of protest regarding his complaints, these
consumers’ organisations come to his rescue and file a case in the court. By rendering
this service to the consumers, the consumers get a feeling that they are not alone in
their struggle. They also run voluntary complaint centres for the guidance of
consumers.

(5) Organizing Protests against Adulteration etc:

The consumers’ organisations play a significant role in eliminating the evils of
adulteration, hoarding, black- marketing, and under-weight selling. Whenever there is
an unnecessary rise in the prices of certain things, the consumers’ organisation raise a
voice of protest against it. Consumer organisations prepare films and cassettes related
to adulteration in food products, ill effects of medicines and Acts related to consumer
protection. Many a times exhibitions are arranged to bring awareness among the
consumers against spurious and adulterated products. Nowadays consumer
organisations are playing a major role in encouraging consumers to raise their voice
against faulty and inferior products through social media platforms.
(6) Helping Educational Institutions:
These organizations tell the educational institutions the way to prepare courses
of study keeping in view the interests of the consumers. They stress the fact that
a special article on consumers’ interest should always be added to the courses
on general study.
(7) Promoting Network of Consumer Associations:
Consumer organisations are trying to grow their numbers. They want to cover all
the regions of the country so that consumers of all the regions are benefited by
their services. Their effort is to form a federation at the apex level and then
through the medium of the federation reach state and district level.
(8) Extending Support to Government:
Consumer organisations by informing the government agencies about
adulteration, artificial scarcity, inferior quality products and other such evils,
help the government. This in turn helps the government to conduct proceedings
in time.
In this way we find that the consumers’ organisations play a significant role in
providing protection to the consumers.
Few popular consumer organizations are
• Akhil Bhartiya Grahak Panchayat,
• Consumer Guidance Society of India,
• All India Consumer Protection Organization,
• The Consumers Eye
• India, United India Consumer’s Association,
• Grahak Shakti,
• Coordinated Action of Consumer & Voluntary Organizations,
• Consortium of South India Consumer Organizations (COSICO),
• Consumer Awareness, Protection and Education Council (Cape Council),
Consortium of South India Consumer Organizations (COSICO).
• The Ministry of Consumer Affairs, Government of India, has also started a
consumer awareness program called 'Jago Grahak Jago'.
 Consumer Protection Councils under CPA 2019
The Consumer Protection Council is a consumer protection agency of India
established under Consumer Protection Act 2019 to promote and protect the
consumer’s interests. The purpose of the council is to achieve success when
Indian consumers can be described as well protected, getting their moneys
worth, knowledgeable about the marketplace and its mechanisms, vigilant
about what takes place in it, assertive about their rights and conscious of the
responsibilities. Its core activities are to inform consumers to eliminate
hazardous products from the market and ensure that product and services
comply with required standards and to receive, mediate and provide redress to
consumer complaints.
The ‘consumer protection Act 2019 has established Consumer Protection Council
and State levels for protecting consumer’s interests and spreading awareness.
The object of the Councils, as per the Act , shall be to promote and protect the
rights of the consumers such as:
 • Protection from marketing hazardous goods and services,
• Informed about the quality, quantity, potency, purity, standard and price of
goods and services,
• To protect the consumer against unfair trade practices,
• Access to a variety of goods and also services at competitive prices,
• The right to be heard,
• To be assured that consumer’s interests receive due consideration,
• The right to seek redressal against unfair trade practices or also restrictive or
also unscrupulous exploitation of consumer and
• The right to consumer education.
Under the old CPA 1986, the object of the CPCs was to promote and protect the
rights of consumers. They are established at the district, state, and national
level.
But the new Act of 2019, makes CPCs advisory bodies for promotion and
protection of consumer rights. Establishes CPCs at the District, State and
National Level.
 Composition and functions of Consumer Protection Councils under CPA 2019
Section 3 : Central Consumer Protection Council. - this section provides for
establishment of a central Consumer protection Council by the central
government , which shall be advisory council. It also provides for its
composition.
(1) The Central Government shall, by notification, establish with effect from such
date as it may specify in that notification, the Central Consumer Protection
Council to be known as the Central Council.
(2) The Central Council shall be an advisory council and consist of the following
members, namely:-
(a) the Minister-in-charge of the Department of Consumer Affairs in the Central
Government, who shall be the Chairperson; and
(b) such number of other official or non-official members representing such
interests as may be prescribed.
Section 4. Procedure for meetings of Central Council. -
(1) The Central Council shall meet as and when necessary, but at least one
meeting of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the Chairperson may think
fit and shall observe such procedure in regard to the transaction of its business as may
be prescribed.
Section 5. Objects of Central Council. - The objects of the Central Council shall be to
render advice on promotion and protection of the consumers' rights under this Act.
Section 6. State Consumer Protection Councils. - (1) Every State Government shall, by
notification, establish with effect from such date as it may specify in such notification, a
State Consumer Protection Council for such State to be known as the State Council.
(2) The State Council shall be an advisory council and consist of the following members,
namely:-
(a) the Minister-in-charge of Consumer Affairs in the State Government who shall be
the Chairperson;
(b) such number of other official or non-official members representing such interests as
may be prescribed;
(c) such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two meetings
shall be held every year.
(4) The State Council shall meet at such time and place as the Chairperson may think fit
and shall observe such procedure in regard to the transaction of its business, as may be
prescribed.
Section 7- Objects of State Council. - The objects of every State Council shall be to
render advice on promotion and protection of consumer rights under this Act within
the State.

Section 8- District Consumer Protection Council. - (1) The State Government shall, by
notification, establish for every District with effect from such date as it may specify in
such notification, a District Consumer Protection Council to be known as the District
Council.
(2) The District Council shall be an advisory council and consist of the following
members, namely:-
(a) the Collector of the district (by whatever name called), who shall be the
Chairperson; and
(b) such number of other official and non-official members representing such interests
as may be prescribed.
(3) The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district as
the Chairperson may think fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed.
Section 9. Objects of District Council. - The objects of every District Council shall
be to render advice on promotion and protection of consumer rights under this
Act within the district.
 Central Consumer Protection Authority
The Consumer Protection Act, 2019, provides a new channel for consumers to
file on matters relating to violation of consumer rights, unfair trade practices and
false or misleading advertisements. This is called the Central Consumer
Protection Authority, (CCPA in short). The CCPA provides for setting up of an
Investigation Wing in the Central Authority. It is headed by a Director-General
and other members who conduct inquiries or investigations into consumer
complaints. And the CCPA is vested with powers to order recall of goods or
withdrawal of services which are hazardous, dangerous or unsafe; and
reimbursement of prices of goods or services so recalled to the purchasers; and
discontinuation of practices which are unfair and prejudicial to consumers'
interests.
CCPA’s has the power to issue directions against false or misleading
advertisements including imposition of penalties, that provides search and
seizure powers to the Authority.
According to the Act , the central government has to set up a Central Consumer
Protection Authority.
What is the Central Consumer Protection Authority?
The authority is being constituted under Section 10(1) of The Consumer
Protection Act, 2019.
The object of the Act is to protect the rights of the consumer by cracking down
on unfair trade practices, and false and misleading advertisements that are
detrimental to the interests of the public and consumers and to regulate the
matters relating to violation of the rights of the consumers and to promote,
protect and enforce the rights of consumers as a class.
It will be headquartered in the National Capital Region of Delhi but the central
government may set up regional offices in other parts of the country.
Composition:
It will have a Chief Commissioner as head, and such number of other commissioners as
may be prescribed, to be appointed by Central Government to exercise the powers and
discharge the functions under this Act. The CCPA will have an Investigation Wing that
will be headed by a Director General.
Section 13 provides that the Central Government shall provide the Central Authority
such number of officers and other employees as it considers necessary for the efficient
performance of its function under this legislation , and empower the Central
Government to prescribe the salary and allowances and the other terms and
conditions of service of the officers and other employees of the Central Authority and
also empowers the Central Authority to engage, in accordance with the procedure
specified by regulations, such number of experts and professionals to assist it in the
discharge of its functions.
Section 17 elaborates on the procedure to make a complaint to authorities: A
complaint relating to violation of consumer rights or unfair trade practice, or false or
misleading advertisement which are prejudicial to the interest of consumers as a class,
may be forwarded either in writing or in electronic mode, to any one of the authorities
namely, the District Collector or the Commissioner o regional office or the Central
Authority.
Section 18 defines the powers and functions of Central Authority:
(1) The Central Authority shall--
(a) protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in unfair
trade practices;
(c) ensure that no false or misleading advertisement is made of any goods or services
which contravenes the provisions of this Act or the rules or regulations made there
under;
(d) ensure that no person takes part in the publication of any advertisement which is
false or misleading.
(2) Without prejudice to the generality of the provisions contained in sub-section (1),
the Central Authority may, for any of the purposes aforesaid,--
a) inquire or cause an inquiry or investigation to be made into violations of consumer
rights or unfair trade practices, either suo motu or on a complaint received or on the
directions from the Central Government;
(b) file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State
Commission or the National Commission, as the case may be, in respect of any
allegation of violation of consumer rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of, consumer
rights, including safeguards provided for the protection of consumers under any other
law for the time being in force and recommend appropriate remedial measures for
their effective implementation;
(e) recommend adoption of international covenants and best international practices
on consumer rights to ensure effective enforcement of consumer rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;

(h) encourage non-Governmental organisations and other institutions working in the

field of consumer rights to co-operate and work with consumer protection agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as may be
necessary, to prevent unfair trade practices and to protect consumers' interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or unsafe
goods or services;
(k) advise the Ministries and Departments of the Central and State Governments on
consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect consumers'
interest.
 Under Section 19, CCPA has the power to Inquire or investigate into matters
relating to violations of consumer rights or unfair trade practices suo motu, or
on a complaint received, or on a direction from the central government.
Under Section 20, the CCPA has the power to recall goods or withdrawal of
services that are “dangerous, hazardous or unsafe. Pass an order for refund the
prices of goods or services so recalled to purchasers of such goods or services;
discontinuation of practices which are unfair and prejudicial to consumer’s
interest”.
Under Section 21, the CCPA is given the authority to ban the endorser of a false
or misleading advertisement from making endorsement of any products or
services in the future, if the authority is satisfied after investigation that any
advertisement is false or misleading and it is prejudicial to any consumer the
interest of any consumer or is in contravention of consumer rights, it may issue
orders or issue directions to the concerned trader or manufacturer or endorser
or advertiser or publisher , as the case may be to discontinue such
advertisement or to modify the same in such manner and within such time as
may be specified in that order.
In cases of false and misleading advertisements, the CCPA may impose a penalty on a
manufacturer or endorser of up to Rs 10 lakh For subsequent offences, the fine may
extend to Rs 50 lakhs.
Further it may order , prohibit the endorser of false and misleading advertisement from
making endorsement of any product or service for a period that may extend to one year.
The ban may extend up to three years in every subsequent violation of the Act.
Section 22 discusses on search and seizure by the Authority
If after a preliminary inquiry, the Director General or any other officer authorised by him
on his behalf, or the District-Collector as the case may be , if there is any reason to
believe that any person has violated any consumer rights, or committed unfair trade
practice, or causes any false/misleading advertisement, the authority can search the
premises and seize the goods.
According to Section 24, if a person aggrieved by any order passed by the Central
Authority under section 20 and 21 , may file a Appeal to the National Commission within
a period of 30 days from the date of receipt of such order.
District Collectors too, will have the power to investigate complaints of violations of
consumer rights, unfair trade practices, and false or misleading advertisements.
For manufacture, selling, storage, distribution, or import of adulterated
products, the penalties are:
• If injury is not caused to a consumer, fine up to Rs 1 lakh with imprisonment up
to six months.
• If injury is caused, fine up to Rs 3 lakh with imprisonment up to one year.
• If grievous hurt is caused, fine up to Rs 5 lakh with imprisonment up to 7 years.
• In case of death, fine of Rs 10 lakh or more with a minimum imprisonment of 7
years, extendable to imprisonment for life.
To sum up, the Central Consumer Protection Authority has been established
under the Consumer Protection Act, 2019. The Investigation Wing of the
Authority is vested with powers to inquire and investigate into matters relating
to violation of consumer rights, unfair trade practices and false or misleading
advertisements. The Authority may impose severe penal action against both
manufacturer and endorser for false and misleading advertisements..
 The powers and functions of District Collector
Power of District Collector. - The District Collector (by whatever name called) may, on
a complaint or on a reference made to him by the Central Authority or the
Commissioner of a regional office, inquire into or investigate complaints regarding
violation of rights of consumers as a class, on matters relating to violations of
consumer rights, unfair trade practices and false or misleading advertisements, within
his jurisdiction and submit his report to the Central Authority or to the Commissioner
of a regional office, as the case may be.
Complaints to authorities. -Section 17: A complaint relating to violation of consumer
rights or unfair trade practices or false or misleading advertisements which are
prejudicial to the interests of consumers as a class, may be forwarded either in writing
or in electronic mode, to any one of the authorities, namely, the District Collector or
the Commissioner of regional office or the Central Authority.
District Consumer Protection Council. - (1) The State Government shall, by
notification, establish for every District with effect from such date as it may specify in
such notification, a District Consumer Protection Council to be known as the District
Council.
• (2) The District Council shall be an advisory council and consist of the following
members, namely:-
• (a) the Collector of the district (by whatever name called), who shall be the
Chairperson; and
(b) such number of other official and non-official members representing such interests
as may be prescribed.
Search and seizure - (1) For the purpose of conducting an investigation after
preliminary inquiry under sub-section (1) of section 19, the Director-General or any
other officer authorised by him in this behalf, or the District Collector, as the case may
be, may, if he has any reason to believe that any person has violated any consumer
rights or committed unfair trade practice or causes any false or misleading
advertisement to be made, shall,-
• (a) enter at any reasonable time into any such premises and search for any document
or record or article or any other form of evidence and seize such document, record,
article or such evidence;
• (b) make a note or an inventory of such record or article; or
• (c) require any person to produce any record, register or other document or article.
 Escalation of a complaint
According to Section 2(8) of CPA 2019, a “Consumer dispute “ means a dispute where
the person against whom a complaint has been made, denies or disputes the
allegations contained in the complaint.
it can be seen that Consumer Forum is not the only way to resolve consumer
complaint. Hence before filing a complaint in consumer forums , it is advisable to
exhaust other options available to a consumer to resolve his disputes. Complaint
escalation can start with as simple as approaching the customer care service of the
business or manufacturer. And most businesses would have an escalation mechanism
such as Executives, Grievance Officers, Branch Managers, etc. who are authorised to
resolve consumer disputes on behalf of the organisation. Consumers can also seek
assistance from recognised Voluntary Consumer Associations or District Information
Centres or even National Consumer Helpline as to how they can approach the problem
and escalate the grievance. If the consumer is dissatisfied with the personal complaint
made against the manufacturer or trader or service provider, he or she has the option
to seek a resolution through alternate dispute resolution mechanisms like mediation,
Ombudsman or Lok Adalat. Despite all these efforts, if the grievance remains
unresolved, the consumer always has the option to knock on the doors of the
Consumer Forum.
consumer complaint can be escalated both at the internal level within the business
entity and before regulatory authorities.
 Generally, manufacturers provide for customer care details on the packaging or on the invoice.
Which may be a toll-free number or email address and even physical address of the place of
business, to which the consumer may communicate his or her concern. The consumer must
first approach the customer care to help resolve the problem. If the consumer is not very clear
at this point about what remedy he or she may ask for, it's good to approach a qualified
organisation such as consumer groups or legal professional to advise on what would be a
suitable remedy.
There are also District Consumer Information Centres that provide information about how and
whom should the consumer approach to redress grievance. It would also be a good practice to
complain at the earliest so that the settlement may be possible.
some store refund policies may allow a 7-day return of goods. If consumer approach later than
the stipulated period, he may lose the right to get the money back.
The Consumer Protection Act, 2019, provides a new channel for consumers to file on matters
relating to violation of consumer rights, unfair trade practices and false or misleading
advertisements by setting up Central Consumer Protection Authority, which has various
powers
Complaints can be made to various government initiatives and regulatory bodies that aid and
assist consumers to resolve disputes with business entities. These government agencies will
not always intervene to settle consumer grievance but may contact the company to open up
communication. For example, if the consumer has a grievance regarding usage and tariff with a
telecom service provider, he/she may complain to the Telecom Regulatory Authority of India.
They may ask the service provider for an explanation of its position. And then, there is
the National Consumer Helpline, which is a government initiative, where consumers
can call on a national toll-free number to seek information, advice or guidance
regarding queries or complaints. Consumers can also register with the national
consumer helpline and submit their grievance through the NCH portal.
There are also a number of regulatory authorities that have set up exclusive consumer
grievance settlement bodies that address sector-specific consumer issues. Like, the
Telecom Regulatory Authority of India, i.e. TRAI (in short), has established the Telecom
Consumer Complaint Monitoring System to enable consumers to procure information
about whom to approach, to file a complaint against telecom service providers in India.
TRAI does not handle individual consumer complaints but forwards the same to the
service provider. And then, the banking and insurance sectors have established a
system of Ombudsman for expeditious and inexpensive resolution of consumer
complaints relating to banking transactions and insurance.
Suppose a consumer experiences a deficiency in service with a bank such as
high-interest rate on loans or inordinate delay in payment or collection of cheques, he
or she would approach the bank as a first step to redress the grievance. On being
dissatisfied with the bank’s response or approach to resolution, the consumer
may escalate the complaint to the Banking Ombudsman, who is appointed by
the Reserve Bank of India.
Similar is the case with insurance companies. An aggrieved consumer can
escalate the complaint to the insurance ombudsman, who is appointed by the
Insurance Regulation and Development Authority of India.
Consumers can also directly approach the government agencies for specific
grievance. Like for instance, a consumer is dissatisfied with the quality of a food
product or finds it adulterated, he/she can complain to the Food Safety and
Standards Authority of India. Or if it is a housing or real estate related issues, the
consumer or home buyer can approach the Real Estate Regulation Authority.
Apart from these, there is also the popular Lok Adalat, which is one of the
alternate dispute resolution mechanisms. Here, cases pertaining to consumer
grievances are brought before the Lok Adalat for settlement. It is a forum where
disputes pending in a court of law as well as those at pre-litigation stage are
settled or compromised amicably.
The Centre in December 2021, has amended the monetary jurisdiction of
consumer commissions, with the district commissions having jurisdiction to
entertain complaints where value of goods or services paid as consideration
does not exceed Rs 50 lakh. The state commissions will have jurisdiction to
similar complaints with value of goods or services between Rs 50 lakh and Rs 2
crore, and the National Commission over Rs 2 crore.
 District Consumer Disputes Redressal Commission
Section 28 to 41 of CPA 2019, defines the constitution of the DCDRC:
Section 28: Establishment of District Consumer Disputes Redressal Commission.—(1)
The State Government shall, by notification, establish a District Consumer Disputes
Redressal Commission, to be known as the District Commission, in each district of the
State:
Provided that the State Government may, if it deems fit, establish more than one District
Commission in a district.
(2) Each District Commission shall consist of—
(a) a President; and
(b) not less than two and not more than such number of members as may be prescribed,
in consultation with the Central Government.
Qualifications, etc., of President and members of District Commission. - The Central
Government may, by notification, make rules to provide for the qualifications, method of
recruitment, procedure for appointment, term of office, resignation and removal of the
President and members of the District Commission.
Salaries, allowances and other terms and conditions of service of President and
members of District Commission. - The State Government may, by notification, make
rules to provide for salaries and allowances and other terms and conditions of service
of the President, and members of the District Commission.
Section 34 elaborates on the Jurisdiction of District Commission. - (1) Subject to the
other provisions of this Act, the District Commission shall have jurisdiction to entertain
complaints where the value of the goods or services paid as consideration does not
exceed one crore rupees (now it is 50 lakhs)
• Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit.
• (2) A complaint shall be instituted in a District Commission within the local limits of
whose jurisdiction,-
• (a) the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or
• (b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on business or
has a branch office, or personally works for gain, provided that in such case the
permission of the District Commission is given; or
• (c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.
(3) The District Commission shall ordinarily function in the district headquarters
and may perform its functions at such other place in the district, as the State
Government may, in consultation with the State Commission, notify in the
Official Gazette from time to time.
Section 35- Manner in which complaint shall be made. - (1) A complaint, in
relation to any goods sold or delivered or agreed to be sold or delivered or any
service provided or agreed to be provided, may be filed with a District
Commission by-
(a) the consumer,-
(i) to whom such goods are sold or delivered or agreed to be sold or delivered or
such service is provided or agreed to be provided; or
(ii) who alleges unfair trade practice in respect of such goods or service;
(b) any recognised consumer association, whether the consumer to whom such
goods are sold or delivered or agreed to be sold or delivered or such service is
provided or agreed to be provided, or who alleges unfair trade practice in
respect of such goods or service, is a member of such association or not;
(c) one or more consumers, where there are numerous consumers having the
same interest, with the permission of the District Commission, on behalf of, or
for the benefit of, all consumers so interested; or
(d) the Central Government, the Central Authority or the State Government, as
the case may be:
Provided that the complaint under this sub-section may be filed electronically in
such manner as may be prescribed.
Section 36- Proceedings before District Commission. - (1) Every proceeding
before the District Commission shall be conducted by the President of that
Commission and atleast one member thereof, sitting together:
(2) On receipt of a complaint made under section 35, the District Commission
may, by order, admit the complaint for being proceeded with or reject the same:
Provided that a complaint shall not be rejected under this section unless an
opportunity of being heard has been given to the complainant:
Provided further that the admissibility of the complaint shall ordinarily be
decided within twenty-one days from the date on which the complaint was filed.
(3) Where the District Commission does not decide the issue of admissibility of the
complaint within the period so specified, it shall be deemed to have been admitted.
Section 37.-Reference to mediation. - (1) At the first hearing of the complaint after its
admission, or at any later stage, if it appears to the District Commission that there
exists elements of a settlement which may be acceptable to the parties, except in such
cases as may be prescribed, it may direct the parties to give in writing, within five days,
consent to have their dispute settled by mediation in accordance with the provisions of
Chapter V.
Every complaint shall be heard by the District Commission on the basis of affidavit and
documentary evidence placed on record:
Every complaint shall be disposed of as expeditiously as possible and endeavour shall
be made to decide the complaint within a period of three months from the date of
receipt of notice by opposite party where the complaint does not require analysis or
testing of commodities and within five months if it requires analysis or testing of
commodities:
Section 39- Findings of District Commission. - (1) Where the District Commission is
satisfied that the goods complained against suffer from any of the defects specified
in the complaint or that any of the allegations contained in the complaint about the
services or any unfair trade practices, or claims for compensation under product
liability are proved, it shall issue an order to the opposite party directing him to do one
or more of the following, namely:-
(a) to remove the defect pointed out by the appropriate laboratory from the goods in
question;
(b) to replace the goods with new goods of similar description which shall be free from
any defect;
(c) to return to the complainant the price, or, as the case may be, the charges paid by
the complainant along with such interest on such price or charges as may be decided;
d) to pay such amount as may be awarded by it as compensation to the consumer for
any loss or injury suffered by the consumer due to the negligence of the opposite party:
Provided that the District Commission shall have the power to grant punitive damages
in such circumstances as it deems fit;
(e) to pay such amount as may be awarded by it as compensation in a product liability
action under Chapter VI;
(f) to remove the defects in goods or deficiencies in the services in question;
(g) to discontinue the unfair trade practice or restrictive trade practice and not to
repeat them;
(h) not to offer the hazardous or unsafe goods for sale;
(i) to withdraw the hazardous goods from being offered for sale;
(j) to cease manufacture of hazardous goods and to desist from offering services which
are hazardous in nature;
(k) to pay such sum as may be determined by it, if it is of the opinion that loss or injury
has been suffered by a large number of consumers who are not identifiable
conveniently:
Provided that the minimum amount of sum so payable shall not be less than twenty-five
per cent. of the value of such defective goods sold or service provided, as the case may
be, to such consumers;
(l) to issue corrective advertisement to neutralise the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such misleading
advertisement;
(m) to provide for adequate costs to parties; and
(n) to cease and desist from issuing any misleading advertisement.
(2) Any amount obtained under sub-section (1) shall be credited to such fund and
utilised in such manner as may be prescribed.
Section 40- Review by District Commission in certain cases. - The District
Commission shall have the power to review any of the order passed by it if there
is an error apparent on the face of the record, either of its own motion or on an
application made by any of the parties within thirty days of such order.
Section 41- Appeal against order of District Commission. - Any person aggrieved
by an order made by the District Commission may prefer an appeal against such
order to the State Commission.
 State Commission
Section 42 to 52 of CPA 2019, various provisions relating to State Commission. Under
Section 42 , the Act provides for establishment of one State Commission in each State.
The State Commission will ordinarily function at the State capital. But, it may perform
its functions at such other places, as the State Government may, in consultation with
the State Commission, notify in the Official Gazette. The State Government may, by
notification, establish regional benches of the State Commission also. The State
Commission is vested with original, appellate and revisional jurisdiction. The State
Commission is also vested with power to review any of the order passed by it if there is
an error apparent on the face of the record.
Each State Commission shall consist of—
(a) a President; and
(b) not less than four or not more than such number of members as may be prescribed
in consultation with the Central Government.
Section 44- Salaries, allowances and other terms and conditions of service of President
and members of State Commission. - The State Government may, by notification, make
rules to provide for salaries and allowances and other terms and conditions of service
of the President and members of the State Commission.
Section 47- Jurisdiction of State Commission. - (1) Subject to the other
provisions of this Act, the State Commission shall have jurisdiction-
• (a) to entertain-
• (i) complaints where the value of the goods or services paid as consideration,
exceeds rupees one crore, but does not exceed rupees ten crore☹now it is
above 50 lakhs and below 2 crores).
• Provided that where the Central Government deems it necessary so to do, it
may prescribe such other value, as it deems fit;
• (ii) complaints against unfair contracts, where the value of goods or services
paid as consideration does not exceed ten crore rupees;(now it is 2 crores)
• (iii) appeals against the orders of any District Commission within the State; and
• (b) to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any District Commission within
the State, where it appears to the State Commission that such District
Commission has exercised a jurisdiction not vested in it by law, or has failed to
exercise a jurisdiction so vested or has acted in exercise of its jurisdiction
illegally or with material irregularity.
Section 51- Appeal to National Commission. - (1) Any person aggrieved by an order
made by the State Commission in exercise of its powers, may prefer an appeal against
such order to the National Commission within a period of thirty days from the date of
the order in such form and manner as may be prescribed:
National Commission
Section 53 grants power to central Government to establish National Consumer
Disputes Redressal Commission. - (1) The Central Government shall, by notification,
establish a National Consumer Disputes Redressal Commission, to be known as the
National Commission.
(2) The National Commission shall ordinarily function at the National Capital Region and
perform its functions at such other places as the Central Government may in
consultation with the National Commission notify in the Official Gazette:
Section 54. Composition of National Commission. - The National Commission shall
consist of-
(a) a President; and
(b) not less than four and not more than such number of members as may be
prescribed.
Section -55. Qualifications, etc., of President and members of National
Commission. - (1) The Central Government may, by notification, make rules to
provide for qualifications, appointment, term of office, salaries and allowances,
resignation, removal and other terms and conditions of service of the President
and members of the National Commission:
Section -58. Jurisdiction of National Commission. - (1) Subject to the other
provisions of this Act, the National Commission shall have jurisdiction-
(a) to entertain-
(i) complaints where the value of the goods or services paid as consideration
exceeds rupees ten crore( now exceeds 2 crore rupees).
Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services paid
as consideration exceeds ten crore rupees;
(iii) appeals against the orders of any State Commission;
(iv) appeals against the orders of the Central Authority; and
(b) to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any State Commission where it
appears to the National Commission that such State Commission has exercised a
jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so
vested, or has acted in the exercise of its jurisdiction illegally or with material
irregularity.
(2) The jurisdiction, powers and authority of the National Commission may be
exercised by Benches thereof and a Bench may be constituted by the President
with one or more members as he may deem fit
Section 61- Power to set aside ex parte orders. - Where an order is passed by
the National Commission ex parte, the aggrieved party may make an application
to the Commission for setting aside such order.
Section-62. Transfer of cases. - On the application of the complainant or of its
own motion, the National Commission may, at any stage of the proceeding, in
the interest of justice, transfer any complaint pending before the District
Commission of one State to a District Commission of another State or before one
State Commission to another State Commission.
Section -66. Experts to assist National Commission or State Commission. - Where the
National Commission or the State Commission, as the case may be, on an application
by a complainant or otherwise, is of the opinion that it involves the larger interest of
consumers, it may direct any individual or organisation or expert to assist the National
Commission or the State Commission, as the case may be.
Section -67. Appeal against order of National Commission. - Any person, aggrieved by
an order made by the National Commission, may prefer an appeal against such order
to the Supreme Court within a period of thirty days from the date of the order.
Section 68: Finality of orders. - Every order of a District Commission or the State
Commission or the National Commission, as the case may be, shall, if no appeal has
been preferred against such order under the provisions of this Act, be final.
Section 69. Limitation period. - (1) The District Commission, the State Commission or
the National Commission shall not admit a complaint unless it is filed within two years
from the date on which the cause of action has arisen.
Notwithstanding anything contained in sub-section (1), a complaint may be
entertained after the period specified , if the complainant satisfies the District
Commission, the State Commission or the National Commission, as the case may be,
that he had sufficient cause for not filing the complaint within such period:
Section 70. Administrative control. - (1) The National Commission shall have the
authority to lay down such adequate standards in consultation with the Central
Government from time to time, for better protection of the interests of
consumers and for that purpose, shall have administrative control over all the
State Commissions in the following matters, namely:-
(a) monitoring performance of the State Commissions in terms of their disposal
by calling for periodical returns regarding the institution, disposal and pendency
of cases;
(b) investigating into any allegations against the President and members of a
State Commission and submitting inquiry report to the State Government
concerned along with copy endorsed to the Central Government for necessary
action;
(c) issuance of instructions regarding adoption of uniform procedure in the
hearing of matters, prior service of copies of documents produced by one party
to the opposite parties, furnishing of english translation of judgments written in
any language, speedy grant of copies of documents;
(d) overseeing the functioning of the State Commission or the District
Commission either by way of inspection or by any other means, as the National
Commission may like to order from time to time, to ensure that the objects and
purposes of the Act are best served and the standards set by the National
Commission are implemented without interfering with their quasi-judicial
freedom.
(2) There shall be a monitoring cell to be constituted by the President of the
National Commission to oversee the functioning of the State Commissions from
the administrative point of view.
(3) The State Commission shall have administrative control over all the District
Commissions within its jurisdiction in all matters referred to in sub-section (1).
(4) The National Commission and the State Commissions shall furnish to the
Central Government periodically or as and when required, any information
including the pendency of cases in such form and manner as may be prescribed.
(5) The State Commission shall furnish, periodically or as and when required to
the State Government any information including pendency of cases in such form
and manner as may be prescribed.
Section 71. Enforcement of orders of District Commission, State Commission
and National Commission. - Every order made by a District Commission, State
Commission or the National Commission shall be enforced by it in the same
manner as if it were a decree made by a Court in a suit before it and the
provisions of Order XXI of the First Schedule to the Code of Civil Procedure, 1908
(5 of 1908) shall, as far as may be, applicable, subject to the modification that
every reference therein to the decree shall be construed as reference to the order
made under this Act.
Section 72. Penalty for noncompliance of order. - (1) Whoever fails to comply
with any order made by the District Commission or the State Commission or the
National Commission, as the case may be, shall be punishable with imprisonment
for a term which shall not be less than one month, but which may extend to three
years, or with fine, which shall not be less than twenty-five thousand rupees, but
which may extend to one lakh rupees, or with both.
The Composition of state commission with special reference to their qualification,
disqualification, re-appointment and resignation of a member
The Act envisages three layers of redressal commission, i.e.
District Consumer Dispute Redressal Commission or (District Commission),
State Consumer Disputes Redressal Commission or (State Commission), and
National Consumer Dispute Redressal Commission (or National Commission).
They are also called “quasi-judicial bodies” and they are vested with the powers of a
civil court.
In exercise of the powers conferred by Section 101 of the Consumer Protection Act,
2019, the Central Government hereby authorised to make rules, which are called the
Consumer Protection (Qualification for appointment, method of recruitment,
procedure of appointment, term of office, resignation and removal of the President
and members of the State Commission and District Commission) Rules, 2020.
Qualifications for appointment of President and members of the State Commission.—
(1) A person shall not be qualified for appointment as President, unless he is, or has
been, a Judge of the High Court;
(2) A person shall not be qualified for appointment as a member unless he is of not less
than forty years of age and possesses—
(a) an experience of at least ten years as presiding officer of a district court or of any
tribunal at equivalent level or combined service as such in the district court and
tribunal: Provided that not more than fifty percent of such members shall be
appointed; or
(b) a bachelor’s degree from a recognised university and is a person of ability, integrity
and standing, and has special knowledge and professional experience of not less than
twenty years in consumer affairs, law, public affairs, administration, economics,
commerce, industry, finance, management, engineering, technology, public health or
medicine:
(3) At least one member or the President of the State Commission shall be a woman.
Qualifications for appointment of President and member of District Commission.—
(1) A person shall not be qualified for appointment as President, unless he is, or has
been , or is qualified to be a District Judge.
(2) A person shall not be qualified for appointment as member unless he- (a) is of not
less than thirty-five years of age;
(rest of the details are same as State Commission)
Disqualification or Removal of President or Member of State Commission or
District Commission from office.—
(1) The State Government shall remove from office any President or member,
who—
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially
his functions as a member; or
(e) has so abused his position as to render his continuance in office prejudicial to
public interest:
Provided that where a President or member is proposed to be removed on any
ground specified in clauses (c) to (e), the President or member shall be informed
of the charges against him and given an opportunity of being heard in respect of
those charges.
Resignation by President or Member of State Commission or District
Commission.—
The President or any member may, by writing under his hand addressed to the
State Government, resign his office at any time:
Provided that the President or member shall, unless he is permitted by the State
Government to relinquish office sooner, continue to hold office until the expiry of
three months from the date of receipt of such notice or until a person duly
appointed as a successor enters upon his office or until the expiry of his term of
office, whichever is the earliest.
Procedure for inquiry of misbehavior or incapacity of President or Member of
State Commission or District Commission.—
(1) If a written complaint is received by the State Government, alleging any
definite charge of misbehavior or incapacity to perform the functions of the office
in respect of the President or a Member of the State Commission or District
Commission, the State Government shall make a preliminary scrutiny of such
complaint.
• (2) If on preliminary scrutiny, the State Government is of the opinion that
there are reasonable grounds for making an inquiry into the truth of any
misbehavior or incapacity of the President or a Member of the State
Commission or District Commission, it shall make a reference to the National
Commission in the case of State Commission and to the State Commission in
the case of District Commission to conduct the inquiry.
• (3) The National Commission or the State Commission, as the case may be,
shall complete the inquiry within three months or such further time as may be
specified by the National Commission.
• (4) After the conclusion of the inquiry, the National Commission or the State
Commission, as the case may be, shall submit its report to the State
Government stating therein its findings and the reasons therefor on each of the
charges separately with such observations on the whole case as it may think fit.
(5) The National Commission or the State Commission, as the case may be, shall
not be bound by the procedure laid down by the Code of Civil Procedure, 1908
but shall be guided by the principles of natural justice and shall have power to
regulate its own procedure, including the fixing of date, place and time of its
inquiry.
Term of office of President or Member.—
The President and every member of the State Commission and the District
Commission shall hold office for a term of four years or up to the age of sixty-five
years, whichever is earlier and shall be eligible for reappointment for another
term of four years subject to the age limit of sixty five years, and such
reappointment is made on the basis of the recommendation of the Selection
Committee.
The role and powers of the National Commission with respect to appeals and
administration. Whether an Appeal is permitted on an order passed by
National Commission.
(Administrative Control by National commission is explained in previous slides
under Section 70).
Any appeal against order of the District Commission, whether relating to
question of law or fact can be made to the State Commission within 45 days
from the date of order. And an appeal against an order of the State Commission
can be made to the National Commission only if it relates to a substantial
question of law, and it should be made within 30 days from the date of order.
Generally, no appeal lies against an interlocutory order. But, the State
Commission or National Commission may call for records and pass appropriate
orders in any case, where it appears that the District Commission or State
Commission respectively, has exercised a jurisdiction not vested in it by law; or
has failed to exercise a jurisdiction so vested; or has exercised jurisdiction with
illegally or material irregularity. Timeline for disposal of appeals is 90 days.
Section -24. Appeal. - A person aggrieved by any order passed by the Central
Authority under sections 20 and 21 may file an appeal to the National
Commission within a period of thirty days from the date of receipt of such order.
Section -41. Appeal against order of District Commission. - Any person
aggrieved by an order made by the District Commission may prefer an appeal
against such order to the State Commission on the grounds of facts or law within
a period of forty-five days from the date of the order, in such form and manner,
as may be prescribed:
Provided that the State Commission may entertain an appeal after the expiry of
the said period of forty-five days, if it is satisfied that there was sufficient cause
for not filing it within that period:
Provided further that no appeal by a person, who is required to pay any amount
in terms of an order of the District Commission, shall be entertained by the State
Commission unless the appellant has deposited fifty per cent of that amount in the
manner as may be prescribed:
Provided also that no appeal shall lie from any order passed under sub-section (1) of
section 81 by the District Commission pursuant to a settlement by mediation under
section 80.
Section -47. Jurisdiction of State Commission. - have the power to entertain appeals
against the orders of any District Commission within the State;
Section- 51. Appeal to National Commission. - (1) Any person aggrieved by an order
made by the State may prefer an appeal against such order to the National Commission
within a period of thirty days from the date of the order in such form and manner as
may be prescribed:
Provided that the National Commission shall not entertain the appeal after the expiry
of the said period of thirty days unless it is satisfied that there was sufficient cause for
not filing it within that period:
Provided further that no appeal by a person, who is required to pay any amount in
terms of an order of the State Commission, shall be entertained by the National
Commission unless the appellant has deposited fifty per cent. of that amount in the
manner as may be prescribed.
(2) Save as otherwise expressly provided under this Act or by any other law for
the time being in force, an appeal shall lie to the National Commission from any
order passed in appeal by any State Commission, if the National Commission is
satisfied that the case involves a substantial question of law.
(3) In an appeal involving a question of law, the memorandum of appeal shall
precisely state the substantial question of law involved in the appeal.
(4) Where the National Commission is satisfied that a substantial question of law
is involved in any case, it shall formulate that question and hear the appeal on
that question:
Provided that nothing in this sub-section shall be deemed to take away or
abridge the power of the National Commission to hear, for reasons to be
recorded in writing, the appeal on any other substantial question of law, if it is
satisfied that the case involves such question of law.
(5) An appeal may lie to the National Commission under this section from an
order passed ex parte by the State Commission.
52. Hearing of appeal. - An appeal filed before the State Commission or the National
Commission, as the case may be, shall be heard as expeditiously as possible and every
endeavour shall be made to dispose of the appeal within a period of ninety days from
the date of its admission:
• Provided that no adjournment shall ordinarily be granted by the State Commission or
the National Commission, as the case may be, unless sufficient cause is shown and
the reasons for grant of adjournment have been recorded in writing by such
Commission:
• Provided further that the State Commission or the National Commission, as the case
may be, shall make such orders as to the costs occasioned by the adjournment, as
may be specified by regulations:
• Provided also that in the event of an appeal being disposed of after the period so
specified, the State Commission or the National Commission, as the case may be,
shall record in writing the reasons for the same at the time of disposing of the said
appeal.

Under Setion-58. National Commission has the jurisdiction to entertain . - appeals

against the orders of any State Commission; and appeals against the orders of the
Central Authority; and
Section- 67. Appeal against order of National Commission. - Any person,
aggrieved by an order made by the National Commission in exercise of its
powers conferred 58, may prefer an appeal against such order to the Supreme
Court within a period of thirty days from the date of the order:
• Provided that the Supreme Court may entertain an appeal after the expiry of
the said period of thirty days if it is satisfied that there was sufficient cause for
not filing it within that period:
• Provided further that no appeal by a person who is required to pay any amount
in terms of an order of the National Commission shall be entertained by the
Supreme Court unless that person has deposited fifty per cent. of that amount
in the manner as may be prescribed.
Section -68. Finality of orders. - Every order of a District Commission or the State
Commission or the National Commission, as the case may be, shall, if no appeal
has been preferred against such order under the provisions of this Act, be final.
Section -101. Power of Central Government to make rules. - (1) The Central
Government may, by notification, make rules for carrying out any of the
provisions contained in this Act.
About the form and the manner in which appeal may be preferred to the State
Commission under section 41;
(y) the form and manner of filing appeal to the National Commission, and the
manner of depositing fifty per cent. of the amount before filing appeal.
Transfer of Complaints from one commission to another
Section 48 - Transfer of cases. - On the application of the complainant or of its
own motion, the State Commission may, at any stage of the proceeding, transfer
any complaint pending before a District Commission to another District
Commission within the State if the interest of justice so requires.
Section -62. Transfer of cases. - On the application of the complainant or of its
own motion, the National Commission may, at any stage of the proceeding, in
the interest of justice, transfer any complaint pending before the District
Commission of one State to a District Commission of another State or before one
State Commission to another State Commission.
Section 24 of the Code of Civil Procedure, provides for general powers of
transfer of suits from one court to another, by the High Court or District Court.
And the Supreme Court is competent to transfer cases from one State to another
under Section 25 of the Code of Civil Procedure. The reason for the transfer may
be that a particular court in which the suit or proceeding is instituted has no
jurisdiction to try it. After admitting the case, if the opposite party, sincerely or
with a bona fide motive desires to transfer the case to a court or tribunal, the
party will have to approach the superior court in revision immediately after the
admission of the complaint and not by appeal against final order.
Further, Section 48 authorises the State Commission to transfer complaint
pending before the District Commission to another District Commission within
the State where the complainant applies for transfer or suo motu.
The underlying object of transfer of cases is that the interest of justice is met.
And where the complainant wants to transfer the complaint from the District
Commission of one State to a District Commission of another State or before one
State Commission to another State Commission, the opposite party may apply,
or the National Commission may suo motu transfer the case under Section 62.
To sum up, the Consumer Protection Act provides for transfer of pending
complaints from one District Commission to another District Commission within
the State or from one State Commission to another State Commission, where
the complainant applies for transfer orsuo motu.
The underlying object of transfer of cases is that the interest of justice is met .
 Limitation Period
Section- 69. Limitation period. - (1) The District Commission, the State
Commission or the National Commission shall not admit a complaint unless it is
filed within two years from the date on which the cause of action has arisen.
• (2) Notwithstanding anything contained in sub-section (1), a complaint may be
entertained after the period specified in sub-section (1), if the complainant
satisfies the District Commission, the State Commission or the National
Commission, as the case may be, that he had sufficient cause for not filing the
complaint within such period:
• Provided that no such complaint shall be entertained unless the District
Commission or the State Commission or the National Commission, as the case
may be, records its reasons for condoning such delay.
The limitation period under the Regulations is as follow:
(1) Subject to the provisions of Sections 40, 41, 50, 51, 60, 67 and 69, the period of
limitation in the following matters shall be as follows;
• Revision Petition shall be filed within 90 days from the date of receipt of certified
copy of the order.
• Application for setting aside the ex-parte order under Section 61 or dismissal of the
complaint in default shall be maintainable if filed within thirty days from the date of
the order or date of receipt of the order.
• An application for review under Sections 40, 50 and 60 shall be filed to the District
Commission, the State Commission and the National Commission, respectively, within
thirty days from the date of the order.
• The period of limitation for filing any application for which no period of limitation has
been specified in the Act or the rules or in these regulations shall be thirty days from
the date of the cause of action or the date of knowledge.
(2) Subject to the provisions of h Act, the Consumer Commission may condone the
delay in filing an application or a petition referred to in sub-regulation(1) if valid and
sufficient reasons to its satisfaction are given.
 The Procedure followed for the provision of Review in respective Commissions
Section-40. Review by District Commission in certain cases. - The District Commission
shall have the power to review any of the order passed by it if there is an error
apparent on the face of the record, either of its own motion or on an application made
by any of the parties within thirty days of such order.
Section-50. Review by State Commission in certain cases. - The State Commission shall
have the power to review any of the order passed by it if there is an error apparent on
the face of the record, either of its own motion or on an application made by any of the
parties within thirty days of such order.
Section-60. Review by National Commission in certain cases. - The National
Commission shall have the power to review any of the order passed by it if there is an
error apparent on the face of the record, either of its own motion or on an application
made by any of the parties within thirty days of such order.
Unless otherwise ordered by the Consumer Commission, an application for
review shall be disposed of by circulation without oral arguments, as far as practicable
between the same members who had delivered the order sought to be reviewed.
Procedure for Institution of complaints, appeals and revision petitions.-
• Where a Complaint is filed in the , it shall be filed in three sets with additional
sets equal to the number of opposite parties.
Where a Complaint or Appeal or Revision Petition is filed in the National
Commission, it shall be filed in two sets and the sets for the Opposite parties or
respondents shall be filed within a week of admission of such case or issuance of
notice to the opposite parties.
Every complaint shall clearly contain particulars of dispute and the relief claimed
and shall also be accompanied by copies of such documents as are necessary to
prove the claim made in the complaint.
• Nomenclature to be given to the complaints, appeals etc. -A complaint shall be
referred to as Consumer Complaint or C.C., an appeal shall be referred to as
First Appeal or F.A., Revision Petition as R.P., Execution Application as E.A.,
Appeal in Execution matters as A.E., Transfer Application as T.A., Review
Application as R.A., Interim Application as I.A. and Miscellaneous Application as
M.A., followed by the number and the year of filing.
 Exparte order Passed on Merits not to be set aside
Section- 61. Power to set aside ex parte orders. - Where an order is passed by the
National Commission ex parte, the aggrieved party may make an application to the
Commission for setting aside such order.
The Commission is duty bound to decide the complaint on merits if the
complainant fails to appear on the date of hearing.
A Commission may out rightly dismiss the case, if, it does not have
requisite jurisdiction, be it pecuniary or territorial.
Otherwise, Every order passed by a Commission has to be on merits,
irrespective of the fact, whether or not, the defendant appears before the
Commisssion and defends himself.
If the defendant appears before the Commission and states that he does
not want to defend himself, that will not enable the Commission to give
an automatic decree in favour of the plaintiff. The Commission can, after
It is important to note that if, the Commission finds that matter before it is
complex and it would require legal assistance to decide the matter on merits
then the court, on its own motion, can appoint an advocate to assist it, and such
advocate is called amicus curiae.
Even after filing its written statement submits before the court that he does not
want to litigate the case further, as a matter of his own choice, then Defendant
will be set ex-parte and his counsel will be discharged, but still court is duty
bound to render its judgment on merits, taking cognizance of material on record
which includes the written statement filed by the Defendant.
And such Ex parte order Passed on Merits not to be set aside.
In Maharashtra Hybrid Seeds Co. Ltd. vs Alavalapati Chandra Reddy and Others,
1988, The Supreme Court observed that the National Commission should have
discussed the matter on merits and then disposed of the same after considering
the question of law raised before the commission.
 Offences and Penalties Under CPA Act 2019
Sections 88 to 93 , of Chapter VII od CPA Act 201988 elaborates on Offences and
Penalties
Section 88 Penalty for noncompliance of direction of Central Authority. - Whoever,
fails to comply with any direction of the Central Authority under sections 20 and 21,
shall be punished with imprisonment for a term which may extend to six months or
with fine which may extend to twenty lakh rupees, or with both.
89. Punishment for false or misleading advertisement. - Any manufacturer or service
provider who causes a false or misleading advertisement to be made which is
prejudicial to the interest of consumers shall be punished with imprisonment for a term
which may extend to two years and with fine which may extend to ten lakh rupees; and
for every subsequent offence, be punished with imprisonment for a term which may
extend to five years and with fine which may extend to fifty lakh rupees.
90. Punishment for manufacturing for sale or storing, selling or distributing or
importing products containing adulterant. - (1) Whoever, by himself or by any other
person on his behalf, manufactures for sale or stores or sells or distributes or imports
any product containing an adulterant shall be punished, if such act-
(a) does not result in any injury to the consumer, with imprisonment for a term which
may extend to six months and with fine which may extend to one lakh rupees;
(b) causing injury not amounting to grievous hurt to the consumer, with imprisonment
for a term which may extend to one year and with fine which may extend to three lakh
rupees;
(c) causing injury resulting in grievous hurt to the consumer, with imprisonment for a
term which may extend to seven years and with fine which may extend to five lakh
rupees; and
(d) results in the death of a consumer, with imprisonment for a term which shall not be
less than seven years, but which may extend to imprisonment for life and with fine
which shall not be less than ten lakh rupees.
(2) The offences under clauses (c) and (d) of sub-section (1) shall be cognizable and
non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the court may, in case of
first conviction, suspend any licence issued to the person referred to in that
sub-section, under any law for the time being in force, for a period up to two years, and
in case of second or subsequent conviction, cancel the licence.
91. Punishment for manufacturing for sale or for storing or selling or distributing or
importing spurious goods. - (1) Whoever, by himself or by any other person on his
behalf, manufactures for sale or stores or sells or distributes or imports any spurious
goods shall be punished, if such act-
(a) causing injury not amounting to grievous hurt to the consumer, with imprisonment
for a term which may extend to one year and with fine which may extend to three lakh
rupees;
(b) causing injury resulting in grievous hurt to the consumer, with imprisonment for a
term which may extend to seven years and with fine which may extend to five lakh
rupees;
(c) results in the death of a consumer, with imprisonment for a term which shall not be
less than seven years, but may extend to imprisonment for life and with fine which
shall not be less than ten lakh rupees.
(2) The offences under clauses (b) and (c) of sub-section (1) shall be cognizable and
non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the court may, in case of
first conviction, suspend any licence issued to the person referred to in that
sub-section, under any law for the time being in force, for a period up to two years, and
in case of second or subsequent conviction, cancel the licence.
Section-92. Cognizance of offence by court. - No cognizance shall be taken by a
competent court of any offence under sections 88 and 89 except on a complaint
filed by the Central Authority or any officer authorised by it in this behalf.
Section-93. Vexatious search. - The Director General or any other officer,
exercising powers under section 22, who knows that there are no reasonable
grounds for so doing, and yet-
(a) searches, or causes to be searched any premises; or
(b) seizes any record, register or other document or article, shall, for every such
offence, be punished with imprisonment for a term which may extend to one
year, or with fine which may extend to ten thousand rupees or with both.
 Express warranty
Section- 20 “express warranty" means any material statement, affirmation of
fact, promise or description relating to a product or service warranting that it
conforms to such material statement, affirmation, promise or description and
includes any sample or model of a product warranting that the whole of such
product conforms to such sample or model;
Appropriate laboratory
Section 2(2) defines "appropriate laboratory" means a laboratory or an
organisation-
• (i) recognised by the Central Government; or
• (ii) recognised by a State Government, subject to such guidelines as may be
issued by the Central Government in this behalf; or
• (iii) established by or under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a State
Government for carrying out analysis or test of any goods with a view to
determining whether such goods suffer from any defect;
The powers of National Commission and Central Authority to make regulations
under CPA 2019
Section-103. Power of National Commission to make regulations. - (1) The National
Commission may, with the previous approval of the Central Government, by
notification, make regulations not inconsistent with this Act to provide for all matters
for which provision is necessary or expedient for the purpose of giving effect to the
provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such
regulations may make provisions for-
(a) the costs for adjournment to be imposed by the District Commission
(b) the costs for adjournment to be imposed by the State Commission or the National
Commission,
(c) the maintenance of any other information by the consumer mediation cell under
section 74;
(d) the manner of submission of quarterly report by consumer mediation cell to the
District Commission, the State Commission or the National Commission under section
74;
(e) the qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empanelled mediators, the
fee payable to empanelled mediator, the terms and conditions for
empanelment, the code of conduct for empanelled mediators, the grounds on
which, and the manner in which, empanelled mediators shall be removed or
empanelment shall be cancelled and the other matters relating thereto under
sub-section (2) of section 75;
(f) the conditions for re-empanelment of mediators for another term under
sub-section (3) of section 75;
(g) the other facts to be disclosed by mediators under clause (c) of section 77;
(h) the time within which, and the manner in which, mediation may be
conducted under sub-section (3) of section 79; and
(i) such other matter for which provision is to be, or may be, made by regulation.
Section -104. Power of Central Authority to make regulations. - (1) The Central
Authority may, with the previous approval of the Central Government, by
notification, make regulations not inconsistent with this Act, for the purpose of
giving effect to the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power,
such regulations may provide for all or any of the following matters, namely:-
(a) the procedure for engaging experts and professionals and the number of such
experts and professionals under section 13;
(b) the procedure for transaction of business and the allocation of business of
the Chief Commissioner and Commissioner under section 14;
c) the form, manner and time within which, inquiries or investigation made by
the Director-General shall be submitted to the Central Authority under section
15; and
(d) such other matter for which provision is to be, or may be, made by
regulation.
Section-105. Rules and regulations to be laid before each House of Parliament:
Every rule and every regulation made under this Act shall be laid, as soon as may
be after it is made, before each House of Parliament, while it is in session, for a
total period of thirty days which may be comprised in one session or in two or
more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or regulation or both Houses agree that the
rule or regulation shall thereafter have effect only in such modified form or be of
no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done
under that rule or regulation.
 Provisions relating to establishment of Mediation under CPA 2019
According to Section 2(25) "mediation" means the process by which a mediator
mediates the consumer disputes;
Section 2(26) "mediator" means a mediator referred to in section 75;
Consumer cases can also be referred to mediation. In the landmark judgement of M/s.
Afcon Infra Ltd.and Others v. M/s Cherian Varkey Construction and Others, the
Supreme Court has clearly stated, that consumer cases can be referred to mediation for
quick and speedy redressal.
Section-37. Reference to mediation. - (1) At the first hearing of the complaint after its
admission, or at any later stage, if it appears to the District Commission that there
exists elements of a settlement which may be acceptable to the parties, except in such
cases as may be prescribed, it may direct the parties to give in writing, within five days,
consent to have their dispute settled by mediation in accordance with the provisions of
Chapter V.
(2) Where the parties agree for settlement by mediation and give their consent in
writing, the District Commission shall, within five days of receipt of such consent, refer
the matter for mediation, and in such case, the provisions of Chapter V, relating to
mediation, shall apply.
Section -38. Procedure on admission of complaint. - (1) The District Commission shall,
on admission of a complaint, or in respect of cases referred for mediation on failure of
settlement by mediation, proceed with such complaint.
Section-74. Establishment of consumer mediation cell. - (1) The State
Government shall establish, by notification, a consumer mediation cell to be
attached to each of the District Commissions and the State Commissions of that
State.
(2) The Central Government shall establish, by notification, a consumer
mediation cell to be attached to the National Commission and each of the
regional Benches.
(3) A consumer mediation cell shall consist of such persons as may be prescribed.
(4) Every consumer mediation cell shall maintain-
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by regulations.
(5) Every consumer mediation cell shall submit a quarterly report to the District
Commission, State Commission or the National Commission to which it is
attached, in the manner specified by regulations.
Section-75. Empanelment of mediators. - (1) For the purpose of mediation, the
National Commission or the State Commission or the District Commission, as the
case may be, shall prepare a panel of the mediators to be maintained by the
consumer mediation cell attached to it, on the recommendation of a selection
committee consisting of the President and a member of that Commission.
(2) The qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empanelled mediators, the
fee payable to empanelled mediator, the terms and conditions for
empanelment, the code of conduct for empanelled mediators, the grounds on
which, and the manner in which, empanelled mediators shall be removed or
empanelment shall be cancelled and other matters relating thereto, shall be
such as may be specified by regulations.
(3) The panel of mediators prepared under sub-section (1) shall be valid for a
period of five years, and the empanelled mediators shall be eligible to be
considered for re-empanelment for another term, subject to such conditions as
may be specified by regulations.
Section-76: of mediators from panel. - The District Commission, the State
Commission or the National Commission shall, while nominating any person
from the panel of mediators referred to in section 75, consider his suitability for
resolving the consumer dispute involved.
Section-77: Duty of mediator to disclose certain facts. - It shall be the duty of
the mediator to disclose-
(a) any personal, professional or financial interest in the outcome of the
consumer dispute;
(b) the circumstances which may give rise to a justifiable doubt as to his
independence or impartiality; and
(c) such other facts as may be specified by regulations.
Section -79: Procedure for mediation. - (1) The mediation shall be held in the
consumer mediation cell attached to the District Commission, the State
Commission or the National Commission, as the case may be.
and shall be guided by the principles of natural justice.
The mediator so nominated shall conduct mediation within such time and in
such manner as may be specified by regulations and shall be guided by the
principles of natural justice.
Section: 80. Settlement through mediation. - (1) Pursuant to mediation, if an
agreement is reached between the parties with respect to all of the issues
involved in the consumer dispute or with respect to only some of the issues, the
terms of such agreement shall be reduced to writing accordingly, and signed by
the parties to such dispute or their authorised representatives.
(2) The mediator shall prepare a settlement report of the settlement and
forward the signed agreement along with such report to the concerned
Commission.
(3) Where no agreement is reached between the parties within the specified
time or the mediator is of the opinion that settlement is not possible, he shall
prepare his report accordingly and submit the same to the concerned
Commission.
Section: 81. Recording settlement and passing of order. - (1) The District
Commission or the State Commission or the National Commission, as the case
may be, shall, within seven days of the receipt of the settlement report, pass
suitable order recording such settlement of consumer dispute and dispose of the
matter accordingly.
(2) Where the consumer dispute is settled only in part, the District Commission
or the State Commission or the National Commission, as the case may be, shall
record settlement of the issues which have been so settled and continue to hear
other issues involved in such consumer dispute.
(3) Where the consumer dispute could not be settled by mediation, the District
Commission or the State Commission or the National Commission, as the case
may be, shall continue to hear all the issues involved in such consumer dispute.
List of matters that cannot be submitted or referred to mediation under any
circumstances. The list is as follows: -
• The matters relating to medical negligence resulting in grievous injury or death.
• Offenses relating to defaults committed, for which applications of
compounding of offenses has been filed by one or more parties.
• Cases involving serious allegations of fraud, fabrication of documents, forgery,
impersonation, and coercion.
• Cases relating to criminal prosecution and of non-compoundable offenses.
• Cases involving public interest litigation.
• In any case other than those mentioned under this rule, the Commission
before which the suit is lis pendens may choose to not refer the dispute for
mediation if it appears to the Commission that no scope of a settlement exist
which may be acceptable to the parties or else mediation might not be an
effective or appropriate tool having regard to the circumstances of each case.