Consumer Protection Act: Consumer Rights

Consumer Protection Act, 1986

• Enacted to shield consumers from unfair practices, substandard goods, and inadequate services.
• Establishes a swift avenue for resolving consumer grievances.

Key Objectives of the Act

• Safeguards consumer rights by ensuring product safety and service quality.
• Prevents businesses from deceiving or exploiting consumers.
• Creates Consumer Forums at District, State, and National levels for grievance redressal.
• Offers economical and quick dispute resolution methods.
• Targets misleading advertising, inflated pricing, and deceptive claims.
• Discourages companies from using fraudulent tactics.
• Holds manufacturers and service providers liable for flawed goods or deficient services.
• Enables consumers to seek replacements, refunds, or compensation.
• Educates consumers on their rights and duties.
• Raises awareness through initiatives like National Consumer Rights Day (December 24) and World Consumer Rights Day (March 15).

Genesis of the Consumer Protection Act, 1986

• Before 1986, consumers dealt with poor product quality and misleading ads.
• There was a lack of sufficient legal means to address complaints.
• Laws like the Indian Contract Act, 1872, Sale of Goods Act, 1930, and MRTP Act, 1969, did not offer adequate consumer safeguards.
• The 1986 Act was introduced as groundbreaking legislation to protect consumers from exploitation and defective goods.

Key Reasons for the Introduction of the Act

• There was a rise in businesses selling defective products, overcharging, and using misleading ads.
• Seeking legal recourse was a slow and costly process.
• Other laws focused on business regulation rather than consumer protection.
• Many countries had strong consumer protection measures, which influenced the need for similar laws in India.
• The Consumer Protection Bill, 1986, was passed on December 24, 1986, and this day is recognized as National Consumer Rights Day in India.

Consumer Protection Councils in India

• Advisory bodies exist at three levels: Central, State, and District.
• These councils advise the government on consumer rights but do not create laws.

Central Consumer Protection Council (Central Council)

• Established by the Central Government.
• Headed by the Minister of Consumer Affairs.
• Includes members appointed by the government.
• Meets at least once annually.
• Advises the government on nationwide consumer rights protection.

State Consumer Protection Council (State Council)

• Established by the State Government.
• Headed by the State Minister of Consumer Affairs.
• Includes government officials.
• Also includes non-official members such as experts and consumer rights activists.
• Up to 10 members are nominated by the Central Government.
• Meets at least twice a year.
• Advises on consumer rights within the state.

District Consumer Protection Council (District Council)

• Established by the State Government for each district.
• Headed by the District Collector.
• Includes both official and non-official members appointed by the government.
• Meets at least twice a year.
• Advises on consumer rights at the district level.

Nature and Scope of Remedies Under the Consumer Protection Act, 2019

• Provides a comprehensive framework to protect consumer rights.
• Offers remedies for unfair practices, defective products, or deficient services.
• Ensures fair business practices.
• Enhances consumer welfare.

Remedies under the Consumer Protection Act, 2019

• Focuses on compensating affected consumers and taking corrective actions.
• Ensures fair compensation rather than harsh penalties for businesses.
• Includes preventive measures against unfair trade practices and misleading ads.
• Imposes penalties, fines, and jail terms for unethical business conduct.
• Ensures swift resolution through Consumer Disputes Redressal Commissions (CDRCs) at various levels.
• E-filing and mediation make the process affordable and efficient.
• Covers all types of goods and services, including e-commerce, telecom, healthcare, and manufactured goods.
• Holds manufacturers, sellers, and service providers liable for defective products.
• Consumers can claim compensation for harm from defective products or misleading ads.

Remedies Against Defective Goods & Deficient Services

• The seller or manufacturer may be required to repair or replace the defective product.
• The consumer may receive a new product.
• A full refund may be issued.
• Monetary compensation can be claimed for losses or injuries.

Remedies For Unfair Trade Practices & Misleading Advertisements

• Courts may order businesses to cease deceptive ads, unfair contracts, or false claims.
• Companies may be forced to issue corrective ads.
• Celebrities and advertisers may face fines or bans if they promote false claims.

Remedies Against Hazardous Goods & Services

• Manufacturers may be ordered to recall hazardous products from the market.
• The government can permanently halt the sale of unsafe products.
• Compensation can be claimed for injury or death caused by a defective product.

Remedies for Consumer Harassment by Businesses

• Businesses may be ordered to pay compensation for mental stress due to poor service or delayed refunds.
• Companies that violate consumer rights may face serious fines or imprisonment in serious cases.

Criminal Penalties Under the Act

• Companies that mislead consumers can face fines up to ₹10 lakhs.
• They can also be banned from advertising for up to 3 years.
• Selling unsafe products may lead to imprisonment from 6 months to life.

Redressal Mechanism Under the Act

• Consumers can seek remedies through Consumer Disputes Redressal Commissions (CDRCs) at three levels.

Complaint Redressal Procedure Under the Consumer Protection Act, 2019

• The Consumer Protection Act, 2019, facilitates consumer complaint resolution for goods and services.
• The redressal mechanism is facilitated through District, State, and National Consumer Disputes Redressal Commissions.

Complaint Redressal Procedure Related to Goods

• The seller or manufacturer receives a copy of the complaint, requiring a 30-day response, extendable by 15 days.
• The District Commission assesses evidence from both parties if the claim is disputed.
• If the seller/manufacturer does not respond promptly, the complaint may be decided based on the consumer's evidence.
• The Commission obtains a sealed sample and sends it to a laboratory for technical analysis and testing, if required.
• The laboratory must submit the findings within 45 days.
• The complainant pays the testing fee in advance, reimbursable if the complaint is upheld.
• Either party can challenge lab findings by submitting written objections.
• If the complaint is found valid, the Commission can order the opposite party to remove the defect, replace the goods, refund the purchase price with interest, cover losses, and/or withdraw hazardous goods.
• Complaints not needing laboratory tests should be resolved within 3 months.
• Complaints requiring testing must be resolved within 5 months.

Complaint Redressal Procedure Related to Services

• The procedure is similar to that for goods but without mandatory lab testing.
• The service provider receives a copy of the complaint and must respond in 30 days, extendable by 15 days.
• If the service provider denies the allegations or does not respond, the Commission decides on the evidence.
• If the complainant misses hearings the complaint might be dismissed.
• The Commission can order the service provider to rectify the deficiency, provide an alternative service, refund charges, or pay compensation.
• Ideally complaints should be resolved within 3 months.

Additional Provisions

• The Commission can issue temporary orders during proceedings.
• Settlement can be achieved through mediation if both parties agree.
• Appeals can be made to the State Commission, National Commission, and ultimately the Supreme Court.

Order and Powers of the District Commission Under the Consumer Protection Act, 2019

• Consumer dispute resolution starts with the The District Consumer Disputes Redressal Commission (District Commission).
• The District handles consumer grievances related to defective goods, deficient services, and unfair trade practices.

Jurisdiction of the District Commission

• The District Commission handles complaints for goods/services valued up to ₹1 crore.
• A complaint can be filed where the opposing party resides/operates, where the cause of action arises, or where the complainant resides/works.

Powers of the District Commission

• Powers include judicial, procedural, and enforcement authority.
• It can summon and enforce attendance, examine witnesses, order document production, receive evidence, issue commissions, refer to labs, and pass interim orders.

Powers to Issue Orders Against Defaulters

• The District Commission can order defect removal, goods replacement, price refunds (with interest), pay compensation, grant damages, and discontinue unfair practices.
• It can also order the withdrawal of hazardous goods and cessation of misleading ads.

Penal Powers for Non-Compliance

• Defying District Commission orders may result in 1 month to 3 years imprisonment.
• It can also result in fines of ₹25,000 to ₹1 lakh, or both
• The District Commission has the powers of a Judicial Magistrate of First Class to try offences under the Act.

Orders and Enforcement of Decisions

• The District Commission enforces every order as a decree of a Civil Court.
• Penal provisions apply when orders are not followed within specified time.

Review and Appeals

• The District Commission can review its own orders if there is an error.
• Appeals can be made to the State Commission within 45 days.

Timeframe for Complaint Disposal

• Complaints should be resolved within 3 months if no testing is needed.
• It extends to 5 months if testing or analysis of goods/services is needed.

State Consumer Disputes Redressal Commission (State Commission)

• The State Consumer Disputes Redressal Commission (State Commission) is an intermediate forum.
• This commission handles grievances beyond District Commission jurisdiction.
• It serves as an appellate body.

Jurisdiction of State Commission

• The State Commission handles complaints where the value of goods or services exceeds ₹1 crore but does not exceed ₹10 crore.
• Hears appeals against District Commission orders.
• Reviews cases from District Commissions if they lacked or overstepped jurisdiction, or acted illegally.

Structure and Composition

• The State Government establishes the State Commission.
• It consists of a President and at least four members, including one woman.
• Benches with one or more members can be formed by the President.

Powers of the State Commission

• Adjudicatory powers include orders for refunds, replacements, or compensation.
• It can also declare unfair contract terms null and void.
• The Commission can summon witnesses and examine evidence.
• The Appellate Powers include hearing appeals against District Commission orders.
• Case Transfer and Review involve transferring cases between District Commissions.
• The Power to review its own orders in cases of apparent error.

Enforcement Powers

• Orders must be followed like a civil court decree.
• Penalties can also be applied for failure to comply with imposed orders.

Appeals and Review Process

• Appeals may be made to the National Commission within 30 days by a person in disagreement of a state commission order.
• Appeals can be made only if 50% of the penalty is deposited.
• Appeals must be disposed of within 90 days.

Administrative Control

• State Commission has authority within it's jurisdiction over all district commissions.
• There is also monitoring of case pendency.
• The State Government and National Commission receive reports on dispute progress.

Timeframe for Case Disposal

• Cases must be disposed of within 3 or 5 months in cases needing laboratory testing.
• Preferably appeals should be disposed of within 90 days,

National Consumer Disputes Redressal Commission (National Commission)

• The National Consumer Disputes Redressal Commission (NCDRC) is the highest level for resolving consumer issues,
• It has original, appellate, and supervisory jurisdiction.
• The goal is to ensure justice and enforce the rights of consumers.

Jurisdiction of the National Commission

• It can hear complaints higher than ₹10 crore, hears appeals against state commission orders, unfair contract cases valued at more than ₹10 crore.
• Also reviews State Commissions to ensure laws were applied.
• Hears appeals against orders of the Central Authority.

Structure and Composition

• The Central Government starts the National Commission.
• It must include a president and at least 4 memebers including one woman.
• For case hearings, the president can constitute benches with one or more members.

Powers of National Commission

• Extensive judicial and administrative powers.
• Can hear high-value complaints, declares unfair contract terms null and void, issues binding orders for compensation.
• Summons witnesses, examines evidence, and issues orders as per civil court procedures. The Commission can hear appeals against orders of State Commissions.

Authority of the National Commission

• It can overturn, modify, or uphold orders from State Commissions.
• Can call for case records to ensure legal compliance.
• Case Transfer and Review involves transferring cases from one State Commission to another or from a District.
• Can review its own orders for errors.
• Must enforce like civil court decrees
• Also orders can result in penalties, fines, or imprisonment
• Complaints should be resolved within 3 months (5 months if its a laboratory tests)
• Appeals can be made to the Supreme Court within 30 days (if 50% of the penalty is desposited)
• Appeals must be resolved in 90 days