The Consumer protection Act is an Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and for matters connected therewith .A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unscrupulous and unethical practices of the businessmen. Some of these Acts are as follows:
(i) Drug Control Act, 1950
(ii) Agricultural Products (Grading and Marketing) Act, 1937
(iii) Industries (Development and Regulation) Act, 1951
(iv) Prevention of Food Adulteration Act, 1954
(v) Essential Commodities Act, 1955
(vi) The Standards of Weights and Measures Act, 1956
(vii) Monopolies and Restrictive Trade Practices Act, 1969
(viii) Prevention of Black-marketing and Maintenance of Essential Supplies Act, 1980
(ix) Bureau of Indian Standards Act, 1986
The main objectives of the Consumer Protection Act are to provide better and all-round protection to consumers and effective safeguards against different types of exploitation such as defective goods, deficient Services and unfair trade practices. It also makes provisions for a simple, speedy and inexpensive machinery for redressal of consumers’ grievances.
Important Features of the Consumer Protection Act
1. The Act applies to all goods and services unless specifically exempted by the Central Government.
2. It covers all the sectors – private, public and cooperative.
3. The provisions of the Act are compensatory in nature.
4. It provides adjudicatory authorities, which are simple, speedy and less expensive.
5. It also provides for Consumer Protection Councils at the National, State and District levels.
6. The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force.
Consumer Rights under the the Consumer Protection Act
Right to Safety
Means right to be protected against the marketing of goods and services, which are hazardous to life and property. The purchased goods and services availed of should not only meet their immediate needs, but also fulfil long term interests.
Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services. They should preferably purchase quality marked products such as ISI,AGMARK, etc
Right to be Informed
Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices under the Consumer Protection Act.
Consumer should insist on getting all the information about the product or service before making a choice or a decision. This will enable him to act wisely and responsibly and also enable him to desist from falling prey to high pressure selling techniques.
Right to Choose
Means right to be assured, wherever possible of access to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price. It also includes right to basic goods and services. This is because unrestricted right of the minority to choose can mean a denial for the majority of its fair share. This right can be better exercised in a competitive market where a variety of goods are available at competitive prices
Right to be Heard
Means that consumer’s interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumer’s welfare.
The Consumers should form non-political and non-commercial consumer organizations which can be given representation in various committees formed by the Government and other bodies in matters relating to consumers.
Right to Seek redressal
Means right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
Consumers must make complaint for their genuine grievances.Many a times their complaint may be of small value but its impact on the Society as a whole may be very large. They can also take the help of consumer organisations in seeking redressal of their grievances.
Right to Consumer Education
Means the right to acquire the knowledge and skill to be an informed consumer throughout life.Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation. They should know their rights and must exercise them. Only then real consumer protection can be achieved with success.
Consumer protection is a group of laws and organizations designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace. The laws are designed to prevent the businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in society. Consumer protection laws are a form of government regulation that aim to protect the rights of consumers.
Consumer Protection Act, 1986
The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to redress of consumer grievances. The Act seeks to promote and protects the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair trade practices, which may be practiced by manufacturers and traders.
The set-up of consumer forum is geared to provide relief to both parties, and discourage long litigation. In a process called ‘informal adjudication’, forum officials mediate between the two parties and urge compromise.
The Act applies to all goods and services unless specifically exempted by the Central Government. It covers all the sectors whether private, public or cooperative.
This Act has provided machinery whereby consumers can file their complaints which will be heard by the consumer forums with special powers so that action can be taken against erring suppliers and the possible compensation may be awarded to consumer for the hardships he has undergone.
The consumer under this law is not required to deposit huge court fees, which earlier used to deter consumers from approaching the courts. The rigours of court procedures have been replaced with simple procedures as compared to the normal courts, which helps in quicker redressal of grievances. The provisions of the Act are compensatory in nature.
consumer courts provide redress only in cases of products or services for personal use, defects in products used for commercial purposes are not entertained.
Basic rights of consumers include:
- Right to be protected against marketing of goods and services which are hazardous to life and property.
- Right to be informed about the quality, quantity, standard and price of goods or services so as to protect the consumer against unfair trade practices.
- Right to be assured, wherever possible, access to variety of goods and services at competitive prices.
- Right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums.
- Right to seek redressal against unfair trade practices.
- Right to consumer education.
Consumer redressal forum
Under the Consumer Protection Act, every district has at least one consumer redressal forum also called a consumer court. Here, consumers can get their grievances heard. Above the district forums are the state commissions. At the top is the National Consumer Disputes Redressal Commission in New Delhi.
A written complaint to the company is taken as proof that the company has been informed. The complaint must be backed by copies of bills, prescriptions and other relevant documents, and should set a deadline for the company to respond. Consumers can also complain through a consumer organisation.
- Claims of less than Rs. 20 lakh should be filed with district forum,
- Claims of Rs.20 lakh – Rs. 1 crore directly with the state commission,
- Claims of more than Rs. 1 crore with the National Commission.
To file the complaint:
- Complaint is to be filed within two years of buying the product or using the service.
- Complaint needs to be in writing. Letters should be sent by registered post, hand-delivered, by email or fax. Don’t forget to take an acknowledgment.
- The complaint should mention the name and address of the person who is complaining and against whom the complaint is being filed. Copies of relevant documents must be enclosed.
Appeal is a legal instrumentality whereby a person not satisfied with the findings of a court has an option to go to a higher court to present his case and seek Justice. In the context of consumer forums:
- An appeal can be made with the state commission against the order of the district forum within 30 days of the order which is extendable for further 15 days. (Section 15)
- An appeal can be made with the National Commission against the order of the state commission within 30 days of the order or within such time as the National Commission allows. (Section 19)
- An appeal can be made with The Supreme Court against the order of the National Commission within 30 days of the order or within such time as the Supreme Court allows. (Section 23)
Penalties
The consumer courts (district court, state commission and National Commission) are given vast powers to enforce their orders. If a defaulter does not appear in court despite notices and reminders, the court may decide the matter in his absence. The forum can sentence the defaulter to a maximum of three years’ imprisonment and impose a fine of Rs. 10,000. Forums can issue warrants to produce defaulters in court. They can use the police and revenue departments to enforce orders.,
The Consumer Protection Act, 2019 is an Act to protect the interests of consumers by promoting and enforcing the rights of consumers as a class, for the prevention of unfair trade practices and for matters connected therewith or incidental thereto.
The Act provides for the establishment of a Central Consumer Protection Authority, State Consumer Protection Authorities and District Consumer Protection Councils for the purpose of protecting and promoting the rights of consumers.
The Act also provides for the establishment of Consumer Disputes Redressal Commissions at the National, State and District levels for the settlement of consumer disputes.
The Act provides for the following sub-topics:
- Consumer Protection Councils
- Consumer Disputes Redressal Commissions
- Consumer Protection Authority
- Unfair Trade Practices
- Misleading Advertisements
- Product Liability
- Consumer Education and Awareness
- Research and Development
- International Cooperation
- Offences and Penalties
- Miscellaneous
Consumer Protection Councils
Consumer Protection Councils are established at the National, State and District levels. The function of the Consumer Protection Councils is to promote and protect the rights of consumers. The Councils are also responsible for educating consumers about their rights and responsibilities.
Consumer Disputes Redressal Commissions
Consumer Disputes Redressal Commissions are established at the National, State and District levels. The function of the Consumer Disputes Redressal Commissions is to settle consumer disputes. The Commissions have the power to award compensation to consumers who have been wronged.
Consumer Protection Authority
The Central Consumer Protection Authority is established at the National level. The function of the Central Consumer Protection Authority is to protect and promote the rights of consumers. The Authority is also responsible for enforcing the provisions of the Consumer Protection Act.
Unfair Trade Practices
Unfair trade practices are practices that are unfair to consumers. The Consumer Protection Act prohibits unfair trade practices. Some examples of unfair trade practices are:
- Misleading advertisements
- False claims about products or services
- Deceptive pricing
- Bait-and-switch tactics
Misleading Advertisements
Misleading advertisements are advertisements that are false or misleading. The Consumer Protection Act prohibits misleading advertisements. Some examples of misleading advertisements are:
- Advertisements that make false claims about products or services
- Advertisements that are not clear and unambiguous
- Advertisements that are likely to mislead consumers
Product Liability
Product liability is the liability of a manufacturer or seller for damage caused by a defective product. The Consumer Protection Act provides for product liability. Under the Act, a manufacturer or seller is liable for damage caused by a defective product if the product is not of a good quality or if it does not meet the standards set by the law.
Consumer Education and Awareness
Consumer education and awareness is the process of educating consumers about their rights and responsibilities. The Consumer Protection Act provides for consumer education and awareness. The Act requires the Central Government and the State Governments to take measures to educate consumers about their rights and responsibilities.
Research and Development
Research and development is the process of developing new products and services. The Consumer Protection Act provides for research and development. The Act requires the Central Government and the State Governments to take measures to promote research and development in the field of consumer protection.
International Cooperation
International cooperation is the cooperation between countries in the field of consumer protection. The Consumer Protection Act provides for international cooperation. The Act allows the Central Government to enter into agreements with other countries for the promotion of consumer protection.
Offences and Penalties
The Consumer Protection Act provides for offences and penalties for contravention of the provisions of the Act. Some of the offences under the Act are:
- Misleading advertisements
- False claims about products or services
- Deceptive pricing
- Bait-and-switch tactics
The penalties for contravention of the provisions of the Act include imprisonment, fine, or both.
Miscellaneous
The Consumer Protection Act also provides for miscellaneous provisions such as:
- The appointment of officers
- The establishment of Consumer Protection Fund
- The power to make rules
- The power to give directions
- The power to review orders
What is a consumer?
A consumer is a person who buys goods or services for personal use.
What is a product?
A product is a good or service that is offered for sale.
What is a service?
A service is an activity that is performed for a fee.
What is a warranty?
A warranty is a promise made by a seller to a buyer that the product will meet certain standards or be free from defects.
What is a guarantee?
A guarantee is a promise made by a seller to a buyer that the product will meet certain standards or be free from defects, and that the seller will take certain actions if the product does not meet those standards.
What is a refund?
A refund is a return of Money that a buyer has paid for a product or service.
What is an exchange?
An exchange is a process in which a buyer returns a product and receives a different product in return.
What is a return?
A return is a process in which a buyer returns a product and receives a refund.
What is a complaint?
A complaint is a statement of dissatisfaction with a product or service.
What is a dispute?
A dispute is a disagreement between a buyer and a seller.
What is a lawsuit?
A lawsuit is a legal action that is filed in court.
What is arbitration?
Arbitration is a process in which a neutral third party (the arbitrator) makes a decision about a dispute.
What is mediation?
Mediation is a process in which a neutral third party (the mediator) helps the parties in a dispute to reach a resolution.
What is a consumer protection agency?
A consumer protection agency is a government agency that is responsible for protecting consumers from unfair or deceptive business practices.
What are the rights of consumers?
Consumers have the right to be treated fairly by businesses. They have the right to be informed about the products and services that they are buying. They have the right to be able to return products that they are not satisfied with. They have the right to be able to get a refund or exchange for products that are defective. They have the right to complain about products and services that they are not satisfied with. They have the right to file a lawsuit if they believe that their rights have been violated.
What are the responsibilities of consumers?
Consumers have the responsibility to be informed about the products and services that they are buying. They have the responsibility to read the terms and conditions of any contract that they sign. They have the responsibility to use products and services in a safe and responsible manner. They have the responsibility to report any problems with products or services to the appropriate authorities.
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Which of the following is not a right of a consumer under the Consumer Protection Act?
(A) The right to be informed about the quality, quantity, price, and other relevant features of goods or services.
(B) The right to choose goods or services of his/her choice.
(C) The right to be heard and to be given a fair and reasonable opportunity to present his/her case.
(D) The right to be compensated for any loss or damage suffered due to unfair trade practices or defects in goods or services. -
Which of the following is not a remedy available to a consumer under the Consumer Protection Act?
(A) The consumer can file a complaint with the Consumer Disputes Redressal Commission (CDRC).
(B) The consumer can file a complaint with the District Consumer Disputes Redressal Forum (DCDF).
(C) The consumer can file a complaint with the State Consumer Disputes Redressal Commission (SCDRC).
(D) The consumer can file a complaint with the National Consumer Disputes Redressal Commission (NCDRC). -
Which of the following is not a function of the Consumer Protection Act?
(A) To provide for the establishment of Consumer Disputes Redressal Agencies for the settlement of consumer disputes.
(B) To provide for the protection of the interests of consumers.
(C) To promote and ensure the rights of consumers as a class.
(D) To provide for the establishment of a Central Consumer Protection Council and State Consumer Protection Councils. -
Which of the following is not a type of consumer dispute?
(A) Disputes between consumers and sellers.
(B) Disputes between consumers and manufacturers.
(C) Disputes between consumers and service providers.
(D) Disputes between consumers and distributors. -
Which of the following is not a ground for filing a complaint under the Consumer Protection Act?
(A) The goods or services are not of the quality promised.
(B) The goods or services are not of the quantity promised.
(C) The goods or services are not of the price promised.
(D) The goods or services are not of the description promised. -
Which of the following is not a remedy available to a consumer under the Consumer Protection Act in case of a defective product?
(A) The consumer can ask for a replacement of the product.
(B) The consumer can ask for a refund of the price paid.
(C) The consumer can ask for a repair of the product.
(D) The consumer can ask for compensation for any loss or damage suffered. -
Which of the following is not a remedy available to a consumer under the Consumer Protection Act in case of a deficiency in service?
(A) The consumer can ask for a replacement of the service.
(B) The consumer can ask for a refund of the price paid.
(C) The consumer can ask for a repair of the service.
(D) The consumer can ask for compensation for any loss or damage suffered. -
Which of the following is not a function of the Consumer Protection Councils?
(A) To promote and protect the rights of consumers.
(B) To advise the Central and State Governments on matters relating to consumer protection.
(C) To conduct research on consumer protection issues.
(D) To provide information and advice to consumers on consumer protection matters. -
Which of the following is not a duty of a seller under the Consumer Protection Act?
(A) To provide the consumer with a copy of the invoice.
(B) To provide the consumer with a warranty for the goods or services.
(C) To provide the consumer with a guarantee for the goods or services.
(D) To provide the consumer with a receipt for the goods or services. -
Which of the following is not a duty of a manufacturer under the Consumer Protection Act?
(A) To ensure that the goods are of good quality.
(B) To ensure that the goods are safe.
(C) To ensure that the goods are durable.
(D) To ensure that the goods are fit for the purpose for which they are intended.