Summary

This document is an overview of the Consumer Protection Act of 2019. It outlines various sections, chapters and definitions included in the legislation. The act was enacted to address issues with consumer protection and outlines procedures for resolving consumer disputes. It also introduces product liability provisions and alternative dispute resolution methods, including mediation.

Full Transcript

# The Consumer Protection Act, 2019 ## CONTENTS | Sections | Pages | |---|---| | **CHAPTER I** | | | **PRELIMINARY** | | | 1. Short title, extent, commencement and application | 6 | | 2. Definitions | 6 | | **CHAPTER II** | | | **CONSUMER PROTECTION COUNCILS** | | | 3. Central Consumer Protection C...

# The Consumer Protection Act, 2019 ## CONTENTS | Sections | Pages | |---|---| | **CHAPTER I** | | | **PRELIMINARY** | | | 1. Short title, extent, commencement and application | 6 | | 2. Definitions | 6 | | **CHAPTER II** | | | **CONSUMER PROTECTION COUNCILS** | | | 3. Central Consumer Protection Council | 18 | | 4. Procedure for meetings of Central Council | 19 | | 5. Objects of Central Council | 19 | | 6. State Consumer Protection Councils | 19 | | 7. Objects of State Council | 19 | | 8. District Consumer Protection Council | 19 | | 9. Objects of District Council | 20 | | **CHAPTER III** | | | **CENTRAL CONSUMER PROTECTION AUTHORITY** | | | 10. Establishment of Central Consumer Protection Authority | 20 | | 11. Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners | 21 | | 12. Vacancy, etc., not to invalidate proceedings of Central Authority | 21 | | 13. Appointment of officers, experts, professionals and other employees of Central Authority | 21 | | 14. Procedure of Central Authority | 21 | | 15. Investigation Wing | 22 | | 16. Power of District Collector | 22 | | 17. Complaints to authorities | 22 | | 18. Powers and functions of Central Authority | 22 | | 19. Power of Central Authority to refer matter for investigation or to other Regulator | 23 | | 20. Power of Central Authority to recall goods, etc | 24 | | 21. Power of Central Authority to issue directions and penalties against false or misleading advertisements | 24 | | 22. Search and seizure | 25 | | 23. Designation of any statutory authority or body to function as Central Authority | 26 | | 24. Appeal | 26 | | 25. Grants by Central Government | 26 | | 26. Accounts and audit | 26 | | 27. Furnishing of annual reports, etc | 27 | | **CHAPTER IV** | | | **CONSUMER DISPUTES REDRESSAL COMMISSION** | | | 28. Establishment of District Consumer Disputes Redressal Commission | 27 | | 29. Qualifications, etc., of President and members of District Commission | 27 | | 30. Salaries, allowances and other terms and conditions of service of President and members of District Commission | 27 | | 31. Transitional provision | 27 | | 32. Vacancy in office of member of District Commission | 28 | | 33. Officers and other employees of District Commission | 28 | | 34. Jurisdiction of District Commission | 28 | | 35. Manner in which complaint shall be made | 29 | | 36. Proceedings before District Commission | 30 | | 37. Reference to mediation | 30 | | 37-A. Settlement through mediation | 30 | | 37-B. Recording settlement and passing of order | 30 | | 38. Procedure on admission of complaint | 31 | | 39. Findings of District Commission | 34 | | 40. Review by District Commission in certain cases | 35 | | 41. Appeal against order of District Commission | 35 | | 42. Establishment of State Consumer Disputes Redressal Commission | 35 | | 43. Qualifications, etc., of President and members of State Commission | 36 | | 44. Salaries, allowances and other terms and conditions of service of President and members of State Commission | 36 | | 45. Transitional provision | 36 | | 46. Officers and employees of State Commission | 36 | | 47. Jurisdiction of State Commission | 37 | | 48. Transfer of cases | 38 | | 49. Procedure applicable to State Commission | 38 | | 50. Review by State Commission in certain cases | 38 | | 51. Appeal to National Commission | 38 | | 52. Hearing of appeal | 39 | | 53. Establishment of National Consumer Disputes Redressal Commission | 40 | | 54. Composition of National Commission | 40 | | 55. Qualifications, etc., of President and members of National Commission | 40 | | 56. Transitional provision | 41 | | 57. Other officers and employees of National Commission | 41 | | 58. Jurisdiction of National Commission | 41 | | 59. Procedure applicable to National Commission | 42 | | 60. Review by National Commission in certain cases | 42 | | 61. Power to set aside ex parte orders | 42 | | 62. Transfer of cases | 42 | | 63. Vacancy in office of President of National Commission | 43 | | 64. Vacancies or defects in appointment not to invalidate orders | 43 | | 65. Service of notice, etc | 43 | | 66. Experts to assist National Commission or State Commission | 44 | | 67. Appeal against order of National Commission | 44 | | 68. Finality of orders | 45 | | 69. Limitation period | 45 | | 70. Administrative control | 45 | | 71. Enforcement of orders of District Commission, State Commission and National Commission | 46 | | 72. Penalty for non-compliance of order | 46 | | 73. Appeal against order passed under Section 72 | 46 | | **CHAPTER V** | | | 74. Establishment of consumer mediation cell | 47 | | 75. Empanelment of mediators | 47 | | 76. Nomination of mediators from panel | 47 | | 77. Duty of mediator to disclose certain facts | 48 | | 78. Replacement of mediator in certain cases | 48 | | 79. Procedure for mediation | 48 | | 80. Settlement through mediation | 48 | | 81. Recording settlement and passing of order | 48 | | **CHAPTER VI** | | | **PRODUCT LIABILITY** | | | 82. Application of Chapter | 49 | | 83. Product liability action | 49 | | 84. Liability of product manufacturer | 49 | | 85. Liability of product service provider | 49 | | 86. Liability of product sellers | 49 | | 87. Exceptions to product liability action | 50 | | **CHAPTER VII** | | | **OFFENCES AND PENALTIES** | | | 88. Penalty for non-compliance of direction of Central Authority | 51 | | 89. Punishment for false or misleading advertisement | 51 | | 90. Punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant | 51 | | 91. Punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods | 52 | | 92. Cognizance of offence by court | 52 | | 93. Vexatious search | 52 | | **CHAPTER VIII** | | | **MISCELLANEOUS** | | | 94. Measures to prevent unfair trade practices in e-commerce, direct selling, etc | 52 | | 95. Presidents, members, Chief Commissioner, Commissioner and certain officers to be public servants | 53 | | 96. Compounding of offences | 53 | | 97. Manner of crediting penalty | 53 | | 98. Protection of action taken in good faith | 53 | | 99. Power to give directions by Central Government | 54 | | 100. Act not in derogation of any other law | 54 | | 101. Power of Central Government to make rules | 54 | | 102. Power of State Government to make rules | 57 | | 103. Power of National Commission to make regulations | 58 | | 104. Power of Central Authority to make regulations | 59 | | 105. Rules and regulations to be laid before each House of Parliament | 59 | | 106. Power to remove difficulties | 60 | | 107. Repeal and savings | 60 | ## Statement of Objects and Reasons The *Consumer Protection Act, 1986* (68 of 1986) was enacted to provide for better protection of the interests of consumers and for the purpose of making provision for establishment of consumer protection councils and other authorities for the settlement of consumer disputes, etc. Although, the working of the consumer dispute redressal agencies has served the purpose to a considerable extent under the said *Act*, the disposal of cases has not been fast due to various constraints. Several shortcomings have been noticed while administering the various provisions of the said *Act*. ## Consumer Protection Act, 2019 The Act repeals the Consumer Protection Act of 1986. The *Act* provides for the establishment of an executive agency referred to as the *Central Consumer Protection Authority* (CCPA). The CCPA is established to promote, protect and enforce the rights of consumers, make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products, etc. The *Act* fills an institutional void in the regulatory regime extant. Currently, the task of prevention of or acting against unfair trade practices is not vested in any authority. This is provided for in a manner that the role envisaged for the *CCPA* complements that of the sector regulators and duplication, overlap or potential conflict is avoided. The *Act* envisages provisions for *product liability action* on account of harm caused to consumers due to a defective product or by deficiency in services. Further, provision of "Mediation" as an *Alternate Dispute Resolution Mechanism* has also been provided. ## Chapter I: Preliminary 1. **Short title, extent, commencement and application.** - The *Act* may be called the *Consumer Protection Act, 2019*. - The *Act* extends to the whole of India except the State of Jammu and Kashmir. - The *Act* shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different States and for different provisions of this *Act* and any reference in any such provision to the commencement of this *Act* shall be construed as a reference to the coming into force of that provision. - Save as otherwise expressly provided by the Central Government, by notification, this *Act* shall apply to all goods and services. 2. **Definitions.** - "Advertisement" means any audio or visual publicity, representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents; - "Appropriate laboratory" means a laboratory or an organisation- - recognised by the Central Government; or - recognised by a State Government, subject to such guidelines as may be issued by the Central Government in this behalf; or - 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; - "Branch office" means- - any office or place of work described as a branch by the establishment; or - any establishment carrying on either the same or substantially the same activity carried on by the head office of the establishment; - "Central Authority" means the Central Consumer Protection Authority established under Section 10. - "Complainant" means- - a consumer; or - any voluntary consumer association registered under any law for the time being in force; or - the Central Government or any State Government; or - the Central Authority; or - one or more consumers, where there are numerous consumers having the same interest; or - in case of death of a consumer, his legal heir or legal representative; or - in case of a consumer being a minor, his parent or legal guardian; - "Complaint" means any allegation in writing, made by a complainant for obtaining any relief provided by or under this *Act*, that - - an unfair contract or unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; - the goods bought by him or agreed to be bought by him suffer from one or more defects; - the services hired or availed of or agreed to be hired or availed of by him suffer from any deficiency; - 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 - - fixed by or under any law for the time being in force; or - displayed on the goods or any package containing such goods; or - displayed on the price list exhibited by him by or under any law for the time being in force; or - agreed between the parties; - the goods, which are hazardous to life and safety when used, are being offered for sale to the public- - in contravention of standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force; - where the trader knows that the goods so offered are unsafe to the public; - 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; - a claim for product liability action lies against the product manufacturer, product seller or product service provider, as the case may be; - "Consumer" means any person who- - 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 - 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,— - 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; - 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; - "Consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint; - "Consumer rights" includes - - the right to be protected against the marketing of goods, products or services which are hazardous to life and property; - the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices; - the right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices; - the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate fora; - the right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and - the right to consumer awareness. - "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 or product and the expression "defective" shall be construed accordingly. - "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 otherwise in relation to any service and includes - - any act of negligence or omission or commission by such person which causes loss or injury to the consumer; and - deliberate withholding of relevant information by such person to the consumer; - "Design", in relation to a product, means the intended or known physical and material characteristics of such product and includes any intended or known formulation or content of such product and the usual result of the intended manufacturing or other process used to produce such product; - "Direct selling" means marketing, distribution and sale of goods or provision of services through a network of sellers, other than through a permanent retail location; - "Director-General" means the *Director-General* appointed under sub-section (2) of Section 15; - "District Commission" means a *District Consumer Disputes Redressal Commission* established under sub-section (1) of Section 28; - "E-commerce" means buying or selling of goods or services including digital products over digital or electronic network; - "Electronic service provider" means a person who provides technologies or processes to enable a product seller to engage in advertising or selling goods or services to a consumer and includes any online market place or online auction sites; - "Endorsement", in relation to an advertisement, means - - any message, verbal statement, demonstration; or - depiction of the name, signature, likeness or other identifiable personal characteristics of an individual; or - depiction of the name or seal of any institution or organisation, which makes the consumer to believe that it reflects the opinion, finding or experience of the person making such endorsement; - "Establishment" includes an *advertising agency, commission agent, manufacturing, trading or any other commercial agency which carries on any business, trade or profession or any work in connection with or incidental or ancillary to any commercial activity, trade or profession, or such other class or classes of persons including public utility entities in the manner as may be prescribed*; - "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; - "Goods" 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* (34 of 2006). - "Harm", in relation to a product liability, includes-- - damage to any property, other than the product itself; - personal injury, illness or death; - mental agony or emotional distress attendant to personal injury or illness or damage to property; or - any loss of consortium or services or other loss resulting from a harm referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii), - but shall not include any harm caused to a product itself or any damage to the property on account of breach of warranty conditions or any commercial or economic loss, including any direct, incidental or consequential loss relating thereto. - "Injury" means any harm whatever illegally caused to any person, in body, mind or property. - "Manufacturer" means a person who — - makes any goods or parts thereof; or - assembles any goods or parts thereof made by others; or - puts or causes to be put his own mark on any goods made by any other person; - "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; - "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; - "Product manufacturer" means a person who — - makes any product or parts thereof; or - assembles parts thereof made by others; or - puts or causes to be put his own mark on any products made by any other person; or - 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 - designs, produces, fabricates, constructs or re-manufactures any product before its sale; or - being a product seller of a product, is also a manufacturer of such product; - "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 - - a manufacturer who is also a product seller; or - a service provider, - but does not include- - a seller of immovable property, unless such person is engaged in the sale of constructed house or in the construction of homes or flats; - 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; - a person who - - acts only in a financial capacity with respect to the sale of the product; - is not a manufacturer, wholesaler, distributor, retailer, direct seller or an electronic service provider; - 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; - "Product service provider", in relation to a product, means a person who provides any service in respect of such product; - "Regulations" means the regulations made by the National Commission, or as the case may be, the Central Authority; - "Regulator" means a body or any authority established under any other law for the time being in force; - "Restrictive trade practice" 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 goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include- - delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; - any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent for buying, hiring or availing of other goods or services; - "Service" means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; - "Member" includes the President and a member of the National Commission or a State Commission or a District Commission, as the case may be; - "Misleading advertisement" in relation to any product or service, means an advertisement, which- - falsely describes such product or service; or - gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or - conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or - deliberately conceals important information; - "National Commission" means the National Consumer Disputes Redressal Commission established under sub-section (1) of Section 53; - "Notification" means a notification published in the Official Gazette and the term "notify" shall be construed accordingly; - "Person" includes - - an individual; - a firm whether registered or not; - a Hindu undivided family; - a co-operative society; - an association of persons whether registered under the Societies Registration Act, 1860 (21 of 1860) or not; - any corporation, company or a body of individuals whether incorporated or not; - any artificial juridical person, not falling within any of the preceding sub-clauses; - "Prescribed" means prescribed by rules made by the Central Government, or, as the case may be, the State Government; - "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; - "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; - "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; - "Product manufacturer" means a person who - - makes any product or parts thereof; or - assembles parts thereof made by others; or - puts or causes to be put his own mark on any products made by any other person; or - 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 - designs, produces, fabricates, constructs or re-manufactures any product before its sale; or - being a product seller of a product, is also a manufacturer of such product; - "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 - - a manufacturer who is also a product seller; or - a service provider, - but does not include- - a seller of immovable property, unless such person is engaged in the sale of constructed house or in the construction of homes or flats; - 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; - a person who - - acts only in a financial capacity with respect to the sale of the product; - is not a manufacturer, wholesaler, distributor, retailer, direct seller or an electronic service provider; - 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; - "Product service provider", in relation to a product, means a person who provides any service in respect of such product; - "Regulations" means the regulations made by the National Commission, or as the case may be, the Central Authority; - "Regulator" means a body or any authority established under any other law for the time being in force; - "Restrictive trade practice" 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 goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include- - delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; - any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent for buying, hiring or availing of other goods or services; - "Service" means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; - "Member" includes the President and a member of the National Commission or a State Commission or a District Commission, as the case may be; - "Misleading advertisement" in relation to any product or service, means an advertisement, which- - falsely describes such product or service; or - gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or - conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or - deliberately conceals important information; - "National Commission" means the National Consumer Disputes Redressal Commission established under sub-section (1) of Section 53; - "Notification" means a notification published in the Official Gazette and the term "notify" shall be construed accordingly; - "Person" includes - - an individual; - a firm whether registered or not; - a Hindu undivided family; - a co-operative society; - an association of persons whether registered under the Societies Registration Act, 1860 (21 of 1860) or not; - any corporation, company or a body of individuals whether incorporated or not; - any artificial juridical person, not falling within any of the preceding sub-clauses; - "Prescribed" means prescribed by rules made by the Central Government, or, as the case may be, the State Government; - "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; - "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; - "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; - "Product manufacturer" means a person who — - makes any product or parts thereof; or - assembles parts thereof made by others; or - puts or causes to be put his own mark on any products made by any other person; or - 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 - designs, produces, fabricates, constructs or re-manufactures any product before its sale; or - being a product seller of a product, is also a manufacturer of such product; - "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 - - a manufacturer who is also a product seller; or - a service provider, - but does not include- - a seller of immovable property, unless such person is engaged in the sale of constructed house or in the construction of homes or flats; - 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; - a person who - - acts only in a financial capacity with respect to the sale of the product; - is not a manufacturer, wholesaler, distributor, retailer, direct seller or an electronic service provider; - 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; - "Product service provider", in relation to a product, means a person who provides any service in respect of such product; - "Regulations" means the regulations made by the National Commission, or as the case may be, the Central Authority; - "Regulator" means a body or any authority established under any other law for the time being in force; - "Restrictive trade practice" 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 goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include- - delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; - any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent for buying, hiring or availing of other goods or services; - "Service" means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; - "Member" includes the President and a member of the National Commission or a State Commission or a District Commission, as the case may be; - "Misleading advertisement" in relation to any product or service, means an advertisement, which- - falsely describes such product or service; or - gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or - conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or - deliberately conceals important information; - "National Commission" means the National Consumer Disputes Redressal Commission established under sub-section (1) of Section 53; - "Notification" means a notification published in the Official Gazette and the term "notify" shall be construed accordingly; - "Person" includes - - an individual; - a firm whether registered or not; - a Hindu undivided family; - a co-operative society; - an association of persons whether registered under

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