Consumer Protection Act,

2019
S.RAKESH KUMAR
ROLL NO:100923672025
MBA 1st Year
NIZAM COLLEGE
[email protected]
Introduction
Every human being buy a variety of goods
and services in their day-to-day life. Whatever
they buy have to pay for it and derive
satisfaction from its consumption and use.
But sometimes they do not feel satisfied with
the product they buy. This may be on account
of poor quality of the product, overcharging
by the shopkeeper, lower quantity of
contents, misleading advertisement, and so
on.
Concept of Consumer Protection
Consumer protection means safeguarding the interest and
rights of consumers. In other words, it refers to the measures
adopted for the protection of consumers from unscrupulous
and unethical malpractices by the business and to provide
them speedy redressal of their grievances.

Need for Consumer Protection –

• Social Responsibility
• Increasing Awareness
• Consumer Satisfaction (trader should treat consumer as god)
• Principle of Social Justice
• Principle of Trusteeship
• Survival and Growth of Business
Ways and Means of Consumer Protections
 Lok Adalat
Public Interest Litigation
Redressal Forums and Consumer
Protection Councils
 Awareness Programme
Consumer Organisations
 Consumer Welfare Fund
 Legislative Measures
Consumer Organisations
Some of the important Consumer Organisations that have been playing an
active role in taking up consumer cause are:
 CERC (Consumer Education and Research Centre), Ahmedabad
 VOICE (Voluntary Organisation in the Interest of Consumer Education),
New Delhi
 CGSI (Consumer Guidance Society of India), Mumbai
 CAG (Consumer Action Group), Chennai
 CUTS (Consumer Unity and Trust Society), Jaipur
 Common Cause, New Delhi
 Consumer Education Centre, Hyderabad
 Karnataka Consumer Service Society, Bangalore
 Kerala State Consumers Coordination Committee, Cochin
These organisations are collecting data on different products and testing
them, investigating into the problems of consumers, publishing and
distributing brochures and journals, organising consumer awareness
programmes, filing complaints, suits and writ petitions on behalf of the
consumers, etc.
Rights of the Consumers
 John F, Kennedy, the former USA President, in his message
to consumer had given FOUR rights to consumers on March
15th 1962. . These rights are- (i) right to safety, (ii) right to
be informed, (iii) right to choose and (iv) right to be heard.
 March 15th _World Consumer Rights Day.
 Jan 24th – National Consumers Rights Day
 These rights had paved the way for organised consumer
movement in the USA and later it spread all over the world.
 In India, the Consumer Protection Act, 1986 has also
provided for the same rights to consumers. These rights are
(i) right to safety, (ii) right to be informed, (iii) right to
choose, (iv) right to be heard, (v) right to redress and (vi)
right to represent. Let us have a brief idea about these
rights of consumers.
(1) Right to Safety:
A consumer has the right to safety against
such goods and services as are hazardous to
his health, life and property.
For example, spurious and sub­standard
drugs; appliances made of low quality raw
material, such as, electric press, pressure
cooker, etc. and low quality food products like
bread, milk, jam, butter, etc. The consumers
have the right to safety against the loss
caused by such products.
(2) Right to be Informed/Right to
Representation:
A consumer has also the right that he should
be provided with all the information on the
basis of which he decides to buy goods or
services. Such information relate to quality,
purity, potency, standard, date of
manufacture, method of use, etc. of the
commodity. Thus, a producer is required to
provide all such information in a proper
manner, so the consumer is not cheated.
(3) Right to Choose:
A consumer has the absolute right to buy any
goods or services of his choice from among
the different goods or services available in
the market.
In other words, no seller can influence his
choice in an unfair manner. If any seller does
so, it will be deemed as interference in his
right to choice.
(4) Right to be Heard:
A consumer has the right that his complaint be
heard.
Under this right, the consumer can file a complaint
against all those things which are prejudicial to his
interest.
First, their rights mentioned above (Right to
Safety; Right to be informed and Right to choose)
have relevance only if the consumer has the right
to file his complaint against them.
These days, several large organisations have set up
Consumer Service Cells with a view to providing
the consumer the right to be heard.
(5) Right to Seek Redressal:
This right provides compensation to the
consumers against unfair trade practice of
the seller.
For instance, if the quantity and quality of the
product do not conform to those promised by
the seller, the buyer has the right to claim
compensation.
Several redressal are available to the
consumer by way of compensation, such as
free repair of the product, taking back of the
product with refund of money, changing of
the product by the seller.
(6) Right to Consumer Education:
Consumer education refers to educating the
consumer constantly with regard to their rights. In
other words, consumers must be aware of the
rights they enjoy against the loss they suffer on
account of goods and services purchased by them.
Government has taken several measures to educate
the consumers.
For instance, Ministry of Civil Supplies publishes a
quarterly magazine under the title “Upbhokta
Jagran”. Doordarshan telecasts a programme like
the “Sanrakshan Upbhokta Ka” and apart from this,
Consumer Day is observed on March 15 every year.
Consumer Sec.2(d)
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 services 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 services other than
the person who 1[hires or avails of] the services for consideration paid or
promised, or partly paid and partly promised, or under any system of
deferred payments, when such services are availed of with the approval of
the first-mentioned person;
 Explanation : For the purposes of sub-clause (i), "commercial purpose" does
not include use by a consumer of goods bought and used by him exclusively
for the purpose of earning his livelihood, by means of self-employment;
Sec. 2(e) "consumer dispute" means a dispute
where the person against whom a complaint has been
made, denies or disputes the allegations contained in
the complaint;
Sec. 2 (f) "defect" 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, express or implied, or as is claimed by
the trader in any manner whatsoever in relation to
any goods;
Ex: Turmeric powder sold with mixture of yellow
colour.
Sec. 2 (g) "deficiency" 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
Goods and Services
The term ‘goods’ under this Act has the same meaning
as under the sale of goods Act. Accordingly it covers
all types of movable property other than money and
includes stocks and shares, growing crops, etc.
The term ‘service’ means service of any description
made available to potential users and includes
banking, financing, housing construction, insurance,
entertainment, transport, supply of electrical and
other energy, boarding and lodging, amusement, etc.
The services of doctors, engineers, architects, lawyers
etc. are included under the provisions of Consumer
Protection Act.
Instances of Consumer exploitations :
The most common business malpractices leading to consumer
exploitation are given below.
 (a) Sale of adulterated goods i.e., adding something inferior
to the product being sold.
 (b) Sale of spurious goods i.e., selling something of little
value instead of the real product.
 (c) Sale of sub-standard goods i.e., sale of goods which do
not confirm to prescribed quality standards.
 (d) Sale of duplicate goods.
 (e) Use of false weights and measures leading to
underweight.
 (f) Hoarding and black-marketing leading to scarcity and
rise in price. (g) Charging more than the Maximum Retail
Price (MRP) fixed for the product.
 (h) Supply of defective goods.
 (i) Misleading advertisements i.e., advertisements falsely
Agencies to settle the C.Disputes:
District consumer Dispute Redressal Forum
(Distict Forums) at the district level.
State Consumer Disputes Redressal
Commission (State Commission) at state
levels, and
National Consumer Disputes Redressal
Commission (National Commission) at
National level .

We Have Three-tier Grievances Redressal Machinery

District Forum
 This is established by the state governments in each of its
districts.
 (a) Composition: The district forums consist of a Chairman
and two other members one of whom shall be a woman.
The district forums are headed by the person of the rank of
a District Judge.
 (b) Jurisdiction: A written complaint can be filed before the
District Consumer forum where the value of goods or
services and the compensation claimed does not exceed Rs.
20 lakh.
 Appeal: If a consumer is not satisfied by the decision of the
District forum, he can challenge the same before the State
Commission, within 30 days of the order
State Commission
This is established by the state governments in their respective
states.

(a) Composition: The State Commission consists of a President

and not less then two and not more than such number of
members as may be prescribed, one of whom shall be a women.
The Commission is headed by a person of the level of High
Court judge.
(b) Jurisdiction: A written complaint can be filed before the
State Commission where the value of goods or services and the
compensation claimed exceeds Rs. 20 lakh but does not exceed
Rs. One crore.
(c) Appeal: In case the aggrieved party is not satisfied with the
order of the State Commission he can appeal to the National
Commission within 30 days of passing of the order.
National Commission
 The National commission was constituted in 1988 by the central
government. It is the apex body in the three tier judicial
machinery set up by the government for redressal of consumer
grievances. Its office is situated at Janpath Bhawan (Old Indian Oil
Bhawan), A Wing, 5th Floor, Janpath, New Delhi.
 (a) Composition: It consists of a President and not less than four
and not more than such members as may be prescribed, one of
whom shall be a woman. The National Commission is headed by a
sitting or retired judge of the Supreme Court.
 (b) Jurisdiction: All complaints pertaining to those goods or
services and compensation whose value is more than Rs. one
crore can be filed directly before the National Commission.
 (c) Appeal: An appeal can be filed against the order of the
National Commission to the Supreme Court within 30 days from
the date of order passed.
 It may be noted that in order to attain the objects of the
Consumers Protection Act, the National Commission has also been
conferred with the powers of administrative control over all the
State Commissions by calling for periodical returns regarding the
What are the reliefs available to
consumers?
 Depending on the nature of complaint the and relief sought by the
consumer, and the facts of the case, the Redressal
Forum/Commission may order one or more of the following reliefs:
 (a) Removal of defects from the goods or deficiencies in services
in question.
 (b) Replacement of the defective goods.
 (c) Refund of the price paid.
 (d) Award of compensation for loss or injury suffered.
 (e) Discontinuance of unfair trade practices or restrictive trade
practice or not to repeat them.
 (f) Withdrawal of hazardous or dangerous goods from being
offered for sale.
 (g) Provision of adequate costs to aggrieved parties.
 The Consumer Protection Act, 2019
(Act No. 35 OF 2019)
The Digital Era of commerce and digital branding, as well
as a new set of customer expectations, digitization has
provided easy access, a large variety of choice, convenient
payment mechanisms, improved services and shopping as
per convenience. However, along the growth path it also
brought in challenges related to consumer protection.
Keeping this in mind and to address the new set of
challenges faced by consumers in the digital age, the Indian
Parliament, passed the landmark Consumer Protection Act,
2019 which aims to provide the timely and effective
administration and settlement of consumer disputes.
The Consumer Protection Act, 2019 (New Act) replace the
more than 3 (three) decades old Consumer Protection Act,
1986 (Act).
The Consumer Protection Act, 2019
Key Highlights
Widened the definition of 'consumer‘: The definition
now includes any person who buys any goods, whether
through offline or online transactions, electronic means,
teleshopping, direct selling or multi-level marketing
Enhancement of Territorial Jurisdiction: The 2019 Act
now provides an added advantage to the consumers by
providing for filing of complaints where the complainant
resides or personally works for gain as against the 1986
Act which only provides for filing of complaint where the
opposite party resides or carry on business. This would
help in removing the difficulties faced by the consumers
in seeking redressal of their grievances against
businesses who may not have an office or branch in their
state.
Enhancement of Pecuniary Jurisdiction:
Revised pecuniary limits have been fixed under the
New Act. Accordingly, the district forum can now
entertain consumer complaints where the value of
goods or services paid does not exceed INR
10,000,000 (Indian Rupees Ten Million).(i.e. one
Crore)
 The State Commission can entertain disputes where
such value exceeds INR 10,000,000 (Indian Rupees
Ten Million) but does not exceed INR 100,000,000
(Indian Rupees One Hundred Million), and
The National Commission can exercise jurisdiction
where such value exceeds INR 100,000,000 (INR One
Hundred Million)(i.e.10 Crores).
E-Complaints :
The 2019 Act also provides for filing of Complaints before
the District Forums electronically in accordance with the
rules which are to be prescribed by the Government.
E-Filing of Complaints: The New Act provides flexibility to
the consumer to file complaints with the jurisdictional
consumer forum located at the place of residence or work
of the consumer. This is unlike the current practice of
filing it at the place of purchase or where the seller has its
registered office address. The New Act also contains
enabling provisions for consumers to file complaints
electronically and for hearing and/or examining parties
through video-conferencing. This is aimed to provide
procedural ease and reduce inconvenience and
harassment for the consumers.
Establishment of Central Consumer
Protection Authority:
The New Act proposes the establishment of a
regulatory authority known as the Central
Consumer Protection Authority (CCPA), with wide
powers of enforcement. The CCPA will have an
investigation wing, headed by a Director-General,
which may conduct inquiry or investigation into
consumer law violations.
- The CCPA has been granted wide powers to take
suo-moto actions, recall products, order
reimbursement of the price of goods/services, cancel
licenses and file class action suits, if a consumer
complaint affects more than 1 (one) individual.
Unfair Trade Practices:
The New Act introduces a specific broad
definition of Unfair Trade Practices, which
also includes sharing of personal information
given by the consumer in confidence, unless
such disclosure is made in accordance with
the provisions of any other law.
Penalties for Misleading Advertisement:
The CCPA may impose a penalty of up to INR
1,000,000 (Indian Rupees One Million) on a
manufacturer or an endorser, for a false or misleading
advertisement. The CCPA may also sentence them to
imprisonment for up to 2 (two) years for the same. In
case of a subsequent offence, the fine may extend to
INR 5,000,000 (Indian Rupees Five Million) and
imprisonment of up to 5 (five) years. The CCPA can
also prohibit the endorser of a misleading
advertisement from endorsing that particular product
or service for a period of up to 1 (one) year. For every
subsequent offence, the period of prohibition may
extend to 3 (three) years.
Conclusion
The Consumer Protection Act, 2019 when
compared with the 1986 Act shows that it
provides for greater protection of consumer
interests taking into consideration the
current age of digitization.
The 2019 Act also deals with the
technological advancements in the industry,
provides for easier filing of complaints and
also imposes strict liability on businesses
including endorsers for violating the interest
of the consumers.
THE END