On December 24th 1986 the Government of India to secure the interests of the

consumers enacted the Consumer Protection Act, 1986. It was later amended in
the years 1991, 1993, 2002. Recently, Consumer Protection Act, 2019 is enacted.

Consumer Protection Act, 1986

Consumer

"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
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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.
Consumer dispute

"Consumer dispute" means a dispute where the person against whom a

complaint has been made, denies or disputes the allegations contained in the
complaint.

"Complainant"—

(i) a consumer or
(ii) any consumer association registered under any law or
(iii) the Central Authority; or
(iv) some or more i.e. group of consumers, where there are number of
consumers having same interest; or
(v) the Central Government or the 2State Government; or
(vi) parent or legal guardian of consumer, in case of a consumer being a
minor, or
(vii) in case of death of any consumer, his legal representative

"Consumer Rights”

1. Right to Safety:

2. Right to Information

3. Right to Choice:

4. Right to be Heard or Right to Representation:

 5. Right to Seek Redressal:

6. Right to Consumer Education:

Unfair trade practice-

Unfair trade Practice means the practice of trade which is for the promoting the
sale, supply (or) use of any goods (or) for the arrangement of the any service,
adopts any unjustifiable and unfair technique or unfair or deceptive practice
including the following practices—
the practice of making any statement whether orally or in writing form or by the
any visible representation which

1. falsely representing the goods are of a particular standard, quantity, grade,

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quality, composition, style or model;
2. falsely represents that the services are of a particular standard, quality or
grade;
3. falsely represents any re-built, second-hand, renovated, reconditioned or
old goods as new goods;
4. represents that the goods or services have sponsorship, approval,
performance, characteristics, accessories, uses or benefits which such
goods or services do not have;
5. represents that the seller or the supplier has a sponsorship or approval or
affiliation which such seller or supplier does not have;
6. makes a false or misleading representation concerning the need for, or the
usefulness of, any goods or services;
 7. 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

"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.

CONSUMER PROTECTION COUNCILS

The object of Consumer Protection Council is to protect consumer rights.

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1. The Central Consumer Protection Council

The Central Council consist following members-

a. The Chairman (the in-charge minister) of the consumer affairs in the Central
Government
b. such numbers of other official or non-official members representing such
interests as may be prescribed.

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 Chairman may
think fit and shall observe such procedure in regard to the transaction of its
business as may be prescribed.

2. The State Consumer Protection Councils

The State Council consist following members-

(a ) the chairman who is the incharge minister of consumer affairs in the State
Government
(b ) such number of other official or non-official members representing such
interests as may be prescribed by the State Government.
(c) such number of other official or non-official members, not exceeding ten, as
may be nominated by the Central Government]
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Meetings of Central Council-

1. The State Council shall meet as and when necessary but not less than two
meetings shall be held every year.
2. The State Council shall meet at such time and place as the Chairman may think
fit and shall observe such procedure in regard to the transaction of its business as
may be prescribed by the State Government.]

3. District Consumer Protection Council

The District Consumer Protection Council consist following members-

(a) The Collector of the district is the Chairman; and
(b) such number of other official and non-official members representing such
interests as may be
prescribed by the State Government.

Meetings of District Council-

1. The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
2. The District Council shall meet as such time and place within the district as the
Chairman may think fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed by the State Government.
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National Commission ( sub-section (1) of section 53)

Jurisdiction

The pecuniary, territorial, appellate, revisional and review of jurisdiction are the
forms of jurisdiction.

1) Pecuniary Jurisdiction

The National Commission entertain all the matters where the value of goods or
service exceed ten crore rupees.

2) Territorial Jurisdiction
The National Commission entertain all complaints from the States of india except
Jammu and Kashmir. National Commission cant entertain if any complaint comes
from outside the India.

3) Appellate Jurisdiction

National Commission entertain appeals against the State Commissions orders and
appeal can be filled within thirty days from the State Commission order. If cause
of delayed is justified then appeals after 30 days may also be entertained.

4) Revisional Jurisdiction

This Central Commission can ask for the records in any consumer dispute which is
in pending or has been in pending before any State Commission only when some
wrong doings have come out against the orders of State Commissions.
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5) Review of Jurisdiction

If there is any error of judgment the National Commission can review its order.

Appeals against the Orders

If any party (complainant or opposite) is not satisfied with judgment given by

National Commission then the party can make appeal with the Supreme Court.
The procedure for filling an appeal against the National Commission is-

Appeal should be made in the Supreme Court against National Commission’s

order within 30 days from the date of order and the period of 30 days can be
extended for further 15 days.
National Commission entertains the appeal only when the appellant has
deposited in prescribed manner 50% of that amount.

Finality of orders

If no appeal has been made against the order made by National Commission, the
order of national commission is treated as final.

Penalty-

If a person does not comply with orders of the Commissions, he may face
imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs
one lakh, or both.

State Commission (sub-section (1) of section 42)

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Jurisdiction of State Commission

A State Commission decide only such matters which fall under jurisdiction of
state.

1) Pecuniary Jurisdiction

State Commission entertain all the matters in which the goods or services value
exceeds 1 crore to Rs.10 crores, but it should not go beyond one crore rupees.

2) Territorial Jurisdiction

The State Commission entertain all the com plaints coming from concerned State
in it’s geographical territory limit.

3) Appellate Jurisdiction
State Commission can entertain all the appeals made against the District Forum’s
order. If any party wont accept the order of District Forum then party can make
appeal to that State Commission concerned within 30 days from the date when
order was given to appellant.

4) Revisional Jurisdiction

This Commission can ask for the records of any consumer dispute pending in
before the District Forum only when some wrong doings have come out against
the District Forum’s orders or the Commission of State can transfer any case from
one District Forum to another District Forum of that state.

Appeals against the Orders

If any party (complainant or opposite), is not satisfied with the judgment of State
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Commission then the party can make appeal with the National Commission. The
procedure for filling an appeal against the State Commission’s order-

1. The appeal can be made with National Commission against the State
Commission’s order within thirty days from the date of order and these
thirty days period can be extended for further fifteen days.
2. State Commission entertains the appeal only when the appellant has
deposited in prescribed manner 50% of that amount in the manner as
may be prescribed.

Finality of orders

If there is no appeal which has been made against State Commission’s order then
the State Commission’s order is treated as the final order.
Penalty

If a person does not comply with orders of the Commissions, he may face
imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs
one lakh, or both.

District Consumer Forum (sub-section (1) of section 28)

Jurisdiction of District Forum

Any District Forum can only decide those matters which fall under its jurisdiction.
Jurisdiction of District Forum-

1) Pecuniary Jurisdiction
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The District Forum entertain all the matters in which the goods and services value
is up to one crore rupees.

2) Territorial Jurisdiction

The District Forum entertain all the complaints of it’s geographical territoroial
limit.

3) Appellate Jurisdiction

Consumer Protection Act does not give any power to the District Forums to hear
the appeals because it is a lowest agency in Consumer Court.

Procedure Relating to Consumer’s Complaint

Consumer Protection Act the procedure that would be followed by a District
Forum in dealing with a compliant is mentioned. A complaint that is filed may
either concern goods or services.

If any consumer is cheated and deceived because of unfair trade practices then
that consumer can lodge a complaint against the deceiving firm in the Consumer
Forum which is within jurisdiction where all the opposite parties reside or run the
business.

Appeals against orders

If any party (complainant or opposite) is not satisfied with judgment given by

lower Forum, can take his or her case to the higher court. The provision for filling
an appeal against the District Forum’s order -
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1. Against the District Forum’s order an appeal can be made to the
Commission of State within thirty days from the date of order and this
period can be further extended for fifteen days.

2. District Commission entertains the appeal only when the appellant has
deposited in prescribed manner 50% of that amount in the manner as may
be prescribed.

Finality of orders

If there is no any appeal that has been made against the the District Forum’s
order then such order is treated as the final order.
Penalties:
If a person does not comply with orders of the Commissions, he may face
imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs
one lakh, or both.

CONSUMER PROTECTION ACT, 2019

To address the new challenges and difficulties faced by consumers in this present
society which is digital age our Parliament of India on 6th August 2019, passed the
landmark Consumer Protection Bill, 2019 on 6th August 2019. This Consumer
Protection Act aim to provide the timely, effective administration & also the
settlement of the consumer disputes. The Consumer Protection Act, 2019 got the
consent of the Indian President, published in India’s official gazette on August 9 th
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2019. So, the New Act replaced the old Consumer Protection Act, 1986.

1.  Covers Transactions related to E-Commerce: The

New Act has 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. The earlier
Act did not specifically include e-commerce transactions, and this lacuna has been
addressed by the New Act.

2. 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). 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).

3. 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.
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4. Establishment of Central Consumer Protection Authority: The New Act

proposes the establishment of Central Consumer Protection Authority (CCPA)
under section 10 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.

5. Product Liability & Penal Consequences: The New Act has introduced the
concept of product liability and brings within its scope, the product manufacturer,
product service provider and product seller, for any claim for compensation. The
term 'product seller' is defined to include a person who is involved in placing the
product for a commercial purpose and as such would include e-commerce
platforms as well. The defense that e-commerce platforms merely act as
'platforms' or 'aggregators' will not be accepted. There are increased liability risks
for manufacturers as compared to product service providers and product sellers,
considering that under the New Act, manufacturers will be liable in product
liability action even where he proves that he was not negligent or fraudulent in
making the express warranty of a product. Certain exceptions have been provided
under the New Act from liability claims, such as, that the product seller will not be
liable where the product has been misused, altered or modified.

6. Unfair Trade Practices: The New Act introduces a specific broad definition of
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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.

7. 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.
- The New Act fixes liability on endorsers considering that there have been
numerous instances in the recent past where consumers have fallen prey to
unfair trade practices under the influence of celebrities acting as brand
ambassadors. In such cases, it becomes important for the endorser to take the
onus and exercise due diligence to verify the veracity of the claims made in the
advertisement to refute liability claims.

8. Provision for Alternate Dispute Resolution: The New Act provides for
mediation as an Alternate Dispute Resolution mechanism, making the process of
dispute adjudication simpler and quicker. This will help with the speedier
resolution of disputes and reduce pressure on consumer courts, who already have
numerous cases pending before them.