Webinar report for ‘New Consumer protection Act 2019 which was held on March 15,

2021 AT 10 a.m.- 11:30 p.m. vide Zoom Meetings

Nandurbar Taluka Vidhayak Samiti’s college of Law, Institute of Legal Education and
Research, Nandurbar (MS) organised a national level webinar on ‘New Consumer protection
Act 2019 on March 15, 2021.

The key resource persons for this workshop was Dr Ermala Dayal- In-charge Principal, V T C
Law College and the moderator was Dr Shehnaz Bilimoria and Dr N D Chaudhari being the
organiser and Dr S.S. Hasani was the co-Ordinator of the webinar.

The programme began by greeting each other and Introductory speech by Coordinator Dr SS
Hasani and welcome speech to participants and resource person by ND Chaudhari. Dr.
Ermala Dayal, In-charge Principal, V.T. Choksi Sarvajanik Law College guided the participants
about the Topic of the webinar.

The Consumer Protection Act, 1986 (old Act) came into force in 1986 to protect the interests
of consumers in India for the first time.  This Act gave tranquil and quick advantages to
consumer complaints and helped safeguard their rights. At that time, internet was not in
widely usage and there were no online platforms for ecommerce. Due to which it was diar
need to intoduce new law to cover protection of consumer rights relating to modern
platforms. Government thought to change outdated law and recently, on 20 th July 2020 new
act came into force i.e. THE CONSUMER PROTECTION ACT, 2019. Previously, rights of
consumer were not adequately safeguarded, therefore, new law was required to consider
expanded scope. in the present era, all the citizens are consumer in one way or the other
and must understand what their rights are.

Background:
Before the existence of the Act of Protection of consumers rights, 1986, there were no
settled markets. At that time, Market overt was in existence which means open markets and
no presence of supply chain management. Huge grounds were present where vendors from
different places with their merchandise used to come to sell at that place and buyers used
to buy therefrom. There was no supply chain like Manufacturer-wholesaler-supplier-small
trader-consumer. Rule of caveat emptor- buyer beware was prevalent and it was buyer’s
responsibility to check the good before buying and seller was not responsible for fault or
defect realised later. Seller and buyer in win win situation. Initially it was possible, but it has
become difficult in present era where the long chain of supply exists. Consumer is not in
strong position as compared to in open market. It has become very easy for powerful and
economically sound manufacturer to easily manipulate consumer. Rule of caveat emptor is
not very much prevalent.

before enforcement of consumer protection act, Sale of goods act 1930 used to provide
limited safeguard to the rights of consumer in terms of Condition and warranties which
includes Implied condition and warranties. Sub section 1 & 2 of Sec 16 -1 is an exception to
the rule of caveat emptor.
sec 16(1) - buyer relies on the seller’s skill or judgment, and the goods are of a description
which it is in the course of the seller’s businessto supply (whether he is the manufacturer or
producer or not), there is an implied condition that the goods shall be reasonably fit for such
purpose:

In Baldry v. Marshall (1925), A consulted a car dealer and told him that he wanted to
purchase a car for touring purposes suggested that a Buggati car will be fit for the purpose.
Relying upon the statement, he bought the Buggati car. Later on, the car turned to be unfit
for the purpose of touring.

The Court observed that the suitability of the car for touring purpose was a condition
because it was so important that the non-fulfillment defeated the very purpose of defeated
the very purpose of purchasing the car. It was held that A was entitled to return the car and
get back the price paid.

Sec 16(2) Sale by description - Varley v Whipp 1900 - sale by description, varley wanted to
buy ripping mchine. Advertisement for sale of machine. Sale by description. Varley buys.
Machine was delivered, he saw it is in very bad confiton and not value for money. Goods not
matched with descriition. And asked for refund and court supported it.

Donoghue v Stevenson 1932 AC 562 Lord Atkin, the case involved Mrs May Donoghue
drinking a bottle of ginger beer in a café in Paisley, Renfrewshire. Unknown to her or
anybody else, a decomposed snail was in the bottle. She fell ill, and subsequently sued the
ginger beer manufacturer, Mr Stevenson`. Manufacturers owe the final consumer of their
product a duty of care (at least in the instance where the goods cannot be inspected
between manufacturing and consumption). There need not be a contractual relationship, or
privity, in order for the final consumer to sue in negligence.

Concept of the rights of consumers can be traced in these case back in 1900. Consumer is
King. As per mam’s opinion, concept of Caveat emptor is misplaced in todays market.
Doctrine of caveat emptor cannot be applied strictly.

Reason of Celebration of World Consumer Rights day on 15 th march :

US President John F. Kennedy first outlined a vision of consumer rights in a special message
to Congress on 15 March 1962. This day is now celebrated as World Consumer Rights Day.
The said message is available online. Extract of the message: if prices are exorbitant, if drugs
are unsafe or worthless, if the consumer is unable to choose on an informed basis then
dollar is wasted.

UN Guidelines for consumer protection

The UN Guidelines for Consumer Protection were adopted by the UN General Assembly in
1985. These were brought up to date in 2015 when the General Assembly adopted the
revised UN Guidelines for Consumer Protection. These guidelines are an important tool,
giving added legitimacy to the principles of consumer rights and practical support and
guidance for the development of consumer protection around the world.
The Consumer Protection Act, 1986 is repealed by the section 107 of The Consumer
Protection Act, 2019.

Reason of enactment of new act?

The 1986 Act was introduced in India's transforming marketplace. The archaic law was
focused on providing safeguards considering the conventional mode of doing business. Post
1986, the style, and extent of business have expanded in directions which was inconceivable
three decades ago. New age marketplace has changed completely with the advent of
internet and technology. It has made consumers vulnerable to new threats of exploitation,
heightening the need for a new consumer law. The 1986 Act could never anticipate
consumer courts adjudicating over over e-commerce transactions. The reach of the Act has
been extended not only to goods and services but also to digital products bought or sold
over digital network

Changes in new Act

1. Enhancement in Pecuniary Jurisdiction

Three trial quasi-judicial consumer dispute redressal mechanism is established.

Commission
District Consumer Dispute
Redressal Commission
State Consumer Dispute
Redressal Commission
National Consumer Dispute
Redressal Commission
Jurisdiction
Where the value of the goods or services paid as
consideration does not exceed one crore rupees.
Where the value of the goods or services paid as
consideration, exceeds rupees one crore, but does
not exceed rupees ten crore
Where the value of the goods or services paid as
consideration exceeds rupees ten crore.

DC-
Power to review
Order- an error apparent on the face of record
Either of its own motion or on application made by any parties within 30 days of order

Appeals
State commission hears appeal against DC and NC- Against appeal state commission and the
appeal shall lie to supreme court against the National commission. The order in original, in
each case, only one appeal is provided. Second appeal is not allowed. Jurisdiction of SC to
admit SLP remains unaffected.

Pre requisite for filing appeal to reduce frivolous appeals

Pre deposit of 50% of amount is mandatory to file appeal. No waiver possible. Provisions
introduced to reduce frivolous appeals.
Alternate Dispute Resolution Mechanism:

The CP Act provides for the establishment of a Consumer Mediation Cell at each level i.e.
District, State and National Commission.

Every mediation cell shall maintain a list of empalled mediators, a list of cases handled by
the cell, record of proceedings.

Natural legal principle:

Nemo judex In causa sua

It shall be the duty of the mediator to disclose any personal, professional, or financial
interest in the outcome of the consumer dispute. The main reason being psychology. One
cannot objectively decide a matter when his interest is involved, and it comes out mostly
biased.

Audi alteram parterm- no man should be condemned unheard.

Central consumer protection authority for regulating the laws on Consumer Protection:
A Central Consumer Protection Authority (“Central Authority”) shall be established to
regulate matters relating to violation of rights of consumers, unfair trade practices and false
or misleading advertisements which are prejudicial to the public interest and the
consumers. At New delhi, it is established, web presence is not there. On paper it is
established.
Powers and functions of Central Authority.—
(1) The Central Authority shall—
(a) protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rightsunder this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in
unfair trade practices;
(c) ensure that no false or misleading advertisement is made of any goods or
services which contravenes the provisions of this Act or the rules or regulations made
thereunder;
(d) ensure that no person takes part in the publication of any advertisement
which is false or misleading.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the
Central Authority may, for any of the purposes aforesaid,--
(a) inquire or cause an inquiry or investigation to be made into violations of consumer
rights or unfair trade practices, either suo motu or on a complaint received or on the
directions from the Central Government;
(b) file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State Commission
or the National Commission, as the case may be, in respect of any allegation of violation
of consumer rights or unfair trade practices;
 (d) review the matters relating to, and the factors inhibiting enjoyment of,
consumer rights, including safeguards provided for the protection of consumers under
any other law for the time being in force and recommend appropriate remedial measures
for their effective implementation;
(e) recommend adoption of international covenants and best international practices on
consumer rights to ensure effective enforcement of consumer rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisationsand other institutions working in the
field of consumer rights to co-operate and work with consumer protection agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as may be
necessary, to prevent unfair trade practices and to protect consumers' interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or
unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments
on consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect consumers'
interest.

3.
Class actions are not prevalent in india. Trend is started after new act.
Dicourage false/misleading advt. keen eye

Awareness is spread by this webinar

Powers of district collector

Sovereign functions
Act not to apply to sovereign activities like
1. Dispensing justice
2. Maintaining armed forces
3. Conductin c&AG
4. Elections to parliament or state legislature

CPA provisions are addition to and not in derogation of any other law. Provision of contract
act would apply to compaint filed under CPA. CPA is general act and not special one. Special
provisions in special act will prevail over it.

e.g.
Railwys consumer tribunal
Jurisdiction in respect if complaints on acc of deficiency in service due to loss, destruction of
goods entrusted to railway lies exclusively with railway claims tribunal.

Railway passenger travelling on payment fare is a consumer. Deficiency in service, go to

consumer commission.

Conducting examination is not service.

Statutory board conducting examination is not providing any service to student. Examinee is
not a consumer.

No complaint can be lodged against Municipal corporation. Failure to Carry out statutory
duty of proper maintenance roads or drains can not be entertained under CPA.Payment of
taxes is not hiring of service. Alternatives Remedy are there. In Municipal Council, Ratlam v.
Shri Vardhichand & Others, writ of mandamus was issued.

No complaint against court for delay. Even if a litigant pays court fees, He is not hiring
services of court. The court is exercising sovereign functions of dispensation of justice.
Complaint against court for delay in judgement is not maintainable in consumer
commission.

Principle of Vicarious liability applies in consumer protection act, too.

Inclusion of E-commerce transactions: Regulation of ecommerce

Under the 2019 Act E-commerce transactions are included for adjudication under direct
sales. The Consumer Protection (E-commerce) Rules, 2020, further elucidates the right and
liabilities involved in e-commerce. E.g. Amazon, flipkart, Uber, Ola,

Ecommerce rule to be read

Models of e commerce business

B2C- GOODS: FLIPKART, AMAZAON ETC, SERVICE: OLA, UBER
C2C- sale of second hand good – ebay, old
B2B – indiamar. Com, trucker.com

Definition of consumer rights,

The CP Act has also broadened the definition of “Consumer” to include a person who “buys
any goods” and “hires or avails any services” through offline or online transactions, such as
electronic means or by teleshopping or direct selling or multi-level marketing.

Rights of a Consumer:

The rights of a Consumer have been defined under the CP Act and also include:

1. Protection against the marketing of goods, products or services which are hazardous
to life and property;
2. Protection against unfair trade practices by being informed about the quality,
quantity, potency, purity, standard and price of goods, products or services;
3. Access to a variety of goods, products or services at competitive prices;
4. Consumer’s interests will receive due consideration at the appropriate fora;
5. To seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers.

Complainant:
The definition of “Complainant” shall extend to parents or legal guardians of a minor who is
a consumer.

Franchise is not consumer.

Q&A session
Ms. Anisha Sahuwala asked, 2019 moved to caveat bandite
Sale goods act- buyer beware
Consumer protect act- seller beware
New consumer act has provision for appeal, 50% of amount to be deposited prior. Frivolous
complaints to be taken care of in roots. Here, seller be aware and buyer beware. Trying to
keep balance.
Class action suit is introduced. Both are being taken care of. Clarity will be there after
judgements on new acts.

Resource person shared her personal experiences where many time non veg food was
delivered instead of veg.
Pizza company case in delhi. Wrong pizza delibered.
Mams personal experience – restaurant- ordered veg, delivered non veg. – no bill was
charged
Flying to Singapore, non veg food delivered.

Vote of thanks.
Available on youtube due to limitation of 100 participants in zoom platform.