CONSUMER PROTECTION

HANDBOOK

Presented By- Keziah Thomas (19010126171)

Nandita Thomas (19010126172)
Rachana Shetty (19010126173)
Mrinalini Ajay (19010126180)

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CONSUMER PROTECTION HANDBOOK
 TABLE OF CONTENTS

1. INTRODUCTION
2. CONSUMER RIGHTS
3. THE 2019 AMENDMENT OF THE ACT
4. WHEN, WHERE AND HOW TO APPROACH THE RIGHT FORUM &
CONSUMER DISPUTE REDRESSAL COMMISION (CDRC)
5. PROCEDURE TO FILE COMPLAINT UNDER CPA, 2019
6. CASE LAWS
7. CONCLUSION
8. REFRENCES
9.

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CONSUMER PROTECTION HANDBOOK
1. INTRODUCTION

The imbalance of power between a consumer and the compatible with globalization and digitalization of
producer or a company has led to the drastic products and services and has also substantially
exploitation of the consumer by producing products increased the scope of protection for consumers. This
that are of low quality, adulteration etc. Consumer Act aims to promote the economic interest, welfare
protection laws began in India with the aim to protect and satisfaction of the consumers.
the consumers and to prioritize their satisfaction.
Before the 1950s such protection was provided
through various regulations that were present in the
English law. Following the enforcement of the Indian
Constitution multiple legislations were also created
for the same. Unfortunately, none of these legislations
helped to fully tackle the problem and exploitation of
consumers still remained in different parts of India.
Taking inspiration from the framework that was laid
down by the United Nations, the Consumer Protection
Bill 1986 was discussed and eventually became the It seeks to protect the rights and responsibilities of the

Consumer Protection Act 1986. This Act did not push consumers like the right to protection from goods

aside the previous laws that were created with the which are hazardous in nature, from unfair trade

same objective instead it simply acted as an extra practices and from exploitation. This Act also

layer of consumer protection. Throughout the years provides the consumers a forum to address their

this Act has faced quite a few amendments but in grievances and take necessary actions. Through the

2019 it was replaced by the Consumer Protection Act Consumer Protection Act better security is being

2019. Replacement of the act was made necessary due provided to the rights of the consumer and their

to the impact that development and technology had on interests. It has played a major role in overcoming the

people. The new Act is unequal power balance which was seen between the
seller and the consumer.

2. CONSUMER RIGHTS

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CONSUMER PROTECTION HANDBOOK
The rights of the consumer under Section 2(9) of the
Consumer Protection Act includes:
1. Right to safety
2. Right to choose
3. Right to be informed
4. Right to be heard
5. Right to redressal
If the rights of the consumer are infringed, then the
consumers can file a complaint to the
consumer forum. The circumstances under which
consumers can make a complaint includes:
1. when the goods and services that the customer is
purchasing or agreed to purchase has one
or more defects.
2. when a trader or the person providing the service
engages in unfair or restrictive practices
of trade.
3. when a trader or service provider charges a price
that is higher than the price shown on the
goods or the price set by some statute.
4. If the goods and services that that are hazardous,
knowingly or unknowingly cause
injury to health, safety or life.

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CONSUMER PROTECTION HANDBOOK
3. THE 2019 AMENDEMENT
sold is referred to as product liability. The aim of
THE 2019 AMENDMENT OF THE CONSUMER
PROTECTION ACT
The Consumer Protection Act 2019 (CPA) was passed
by the Indian Parliament on 6th August, 2019 and it
received presidential assent on 9th August 2019. The
Act came into force on 20th July, 2019. The
Consumer Protection Act of 1986 was repealed in the
CPA 2019. A number of changes were brought about
in the amendment.
1. The definition of “consumer” was given under the
CPA 1986 but the CPA 2019 has broadened the
definition of a “consumer” expressly including goods
or services availed through online transactions using
any electronic means, teleshopping, direct selling and
multi-level marketing. The CPA 1986 did not
expressly include online transactions and
teleshopping. Moreover, the term “good” was also
broadened and it included all kinds 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.
2. The concept of product liability was also
introduced. The duty of a product manufacturer or
seller to compensate a customer for any damage
caused by a faulty product produced or
CONSUMER PROTECTION HANDBOOK
product liability is to alert the product's manufacturer
or seller that they are not permitted to engage in
activities that cause a damage to consumers.
Manufacturers and suppliers of goods and services
will be held responsible if the product has a
manufacturing flaw, a design defect or a deviation
from the manufacturer's specifications. Sections 82-87
of the CPA 2019 include an all-encompassing scheme
that will extend to anything in a product liability
action for compensation.
3. It widened the scope of unfair trade practice by
including the following within its ambit:
• failure to issue a bill or receipt
• refusal to accept a good returned within 30 days
• disclosure of personal information given in
confidence, unless required by law or in public
interest.
4. The concept of unfair contracts was also amended.
Unfair contracts were introduced in Section 2 (46) of
the Consumer Protection Act, 2019.
Conditions that determine an unfair contract
include:
 When terms of contract are tilted towards the
interest of the buyers.
 When excessive deposits are imposed.
 When the bank refuses to accept repayment of
debts before time.
 When there is a Unilateral termination of the
contract.
 When unreasonable charges are imposed.
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5. In the CPA 1986, there were no provisions
regarding E-commerce. However, the 2019
amendment has defined direct selling, e-commerce
and electronic service provider. E- commerce has
been defined for the purpose of including buying and
selling of goods and services through any digital or
electronic network.
6. The act also introduced E-filing. It lays down
provisions permitting consumers to file complaints
electronically or through the process of E-filing. The
proceedings and Evidence can be done through video-
CONSUMER PROTECTION HANDBOOK
conferencing thereby giving procedural ease and
reducing hassle for the consumers.
7. Alternate dispute redressal mechanism, Jurisdiction
for filing of a complaint, Pecuniary jurisdiction of
Commissions, Appeal from an order of District
Commission and State Commission, Appeal when
there is a substantial question of law involved, Power
to declare terms of any contract as void, Power to
review orders, penalties, quorums, The Central
Consumer Protection Authority are the other
amendments made in the CPA 2019.
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4. WHEN, WHERE AND HOW TO APPROACH THE RIGHT FORUM

violation of consumer rights, unfair trade practices, or

The Central Consumer Protection Authority (CCPA)
false or misleading advertisements that are prejudicial
has been incorporated to Chapter III of the 2019 Act
to the interests of consumers as a class may be
in order to administer issues regarding consumer
submitted to any of the authorities, which include the
rights violations, unfair trade practices, and false or
District Collector, the Commissioner of Regional
misleading advertisements that are injurious to the
Office, or the Central Authority, in writing or
interests of the public and consumers, as well as to
electronically.
encourage, safeguard, and enforce consumer rights.
Section 17 asserts that a grievance pertaining to a

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CONSUMER PROTECTION HANDBOOK
CONSUMER DISPUTE REDRESSAL COMMISION (CDRC)

The CDRC has the authority to handle complaints

about unfair and restrictive commercial practices,
faulty goods and services, overcharging, and items
that endanger life and safety. It must be established on
three levels:
1. District Commission- has the authority to hear
complaints if the value of the goods and services
given as compensation does not exceed one crore
The complaint can be filed with the relevant
rupees.
authorities by the person or organization listed
2. State Commission- will have authority to hear
below: -
complaints if the monetary value exceeds one crore
 Any consumer who received the goods or
rupees but does not exceed ten crore rupees.
services
3. National Commission- should have the authority to
 A set of consumers who share a common
hear complaints if the amount
interest in the subject.
paid exceeds 10 crore rupees.
 Consumer Associations
 State Government or Central Government
 Central Authority

5. PROCEDURE TO FILE COMPLAINT UNDER CPA,

2019
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CONSUMER PROTECTION HANDBOOK

Step 1- Prior to submitting the complaint, the
complainant should provide a notification to the
opposing party outlining the flaws/deficiencies in the
products or services delivered. If the parties are
unable to reach an agreement, the complainant may
submit a complaint with a
jurisdiction authority/forum.
Step 2- The Complaint must be submitted within the
Pecuniary and Territorial Jurisdiction.
Step 3- Complaints can be made in writing or
electronically. The aggrieved party may file a
complaint on https://consumerhelpline.gov.in/.
Step 5- District Commission- filed within the 2 years
from the date of dispute. State Commission- filed
within 45 days from the date of order of District
Commission. National Commission- must be executed
within 30 days of receiving the order from the lower
forum
Step 6- In the case of the Registrar of relevant
Commissions, the Court costs must be paid in
the form of a Demand Draft. The appellant must pay a
Demand Draft of Rs. 5,000/- for the
National Commission.

Step 4- The following details should be included in

the complaint:
• The complainant& and opposing party’s full
names and contact information.
• The date and time of the purchase of products
or the provision of services.
• Case-specific facts constituting the cause of
action.
• Specifics of the dispute
• Remedy sought
• Copies of papers corroborating the
complainant’s claim.

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CONSUMER PROTECTION HANDBOOK
6. CASE LAWS substantiated with any comparative data in order to
prove that they were the. Number one training
institute. Hence, the advertisement was misleading,
and it was against clause C, D of ASCI code.
1. Horlicks Ltd. v. Zydus Wellness Products Ltd
(1)
4. Pepsi Co. Inc. v. Hindustan Coca Cola Ltd
On the basis that the advertising comparing Complan
(3)
to Horlicks was misleading and insulting, the High
In this case it was held that certain factors had to be
Court issued an interim order prohibiting Zydus from
kept in mind while deciding the question of
broadcasting it.
disparagement including:
• Intent of the commercial
2. Indian Medical Association v V.P. Shantha
• Manner of the commercial
and others (2)
• Story line of the commercial and the message sought
The cases arose after the Indian Medical Association
to be conveyed.
filed a writ petition with the Supreme Court, asking
the court to rule that the Consumer Protection Act
does not apply to the
medical profession. In their final decision, the court
ruled those medical professionals are covered by the
Consumer Protection Act.

3. Frankfinn Aviation Services Pvt. Ltd. Case

A complaint was filed against this company, which
was endorsed by the famous actress, Alia Bhatt. In
their advertisement, they claimed to be world’s
number 1 training institute for air hostesses.

It was found that they made this claim was not

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CONSUMER PROTECTION HANDBOOK
7. CONCLUSION
The E-commerce Rules 2020 certainly gives more
power to the consumers and further strengthens their
rights. These rules have come at the right time. There
have been many cases where sellers have tried to get
money by manipulating the prices of goods, especially
during the ongoing pandemic. These rules will stop a
practice that harms customers and makes essential
commodities inaccessible to them. In addition, e-
commerce regulations prohibit sellers from posting
fake reviews of products on the Marketplace. This
will prove to be a good move as very often fake good
reviews and defective quality goods are given high
ratings, affecting the consumers.
"add-on fees." Many times, sellers advertise low
prices at the beginning of the purchase process, but
later, many additional charges, taxes, charges, which
are unavoidable, are levied/discovered at the end. This
concept is called 'drip pricing' and is used by many
online sellers to capture the interest of consumers and
mislead them by citing low prices. Overall, the E-
commerce Rules 2020 has managed to cover the
relevant issues that have plagued the e-commerce
industry for a long time.

Establishing such a robust grievance redressal

mechanism was the need of the hour. The government
has taken a step in the right direction by introducing
the E-commerce Rules 2020. There were no rules that
existed to regulate the

ever-growing e-commerce industry. The regulations

regarding unfair trade practices and false advertising
align with the Consumer Protection Act, 2019.
However, the e-commerce rules 2020 are not devoid
of flaws. They do not discuss the issue of delivery
charges which are sometimes exorbitant. Some ceiling
should be imposed on sellers charging delivery
charges. Another issue that hasn't been resolved is

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CONSUMER PROTECTION HANDBOOK
8. FOOTNOTES & REFERENCES:

Footnotes:
1. 2020 AIR CC 2416
2. 1996 AIR 550, 1995 SCC (6) 651
3. (2003) 27 PTC 305

References

1. Priyanka Ajjannavar, Procedure to File Complaint Under Consumer Protection

(Amendment) Act, 2019, 06 August 2020, https://www.mondaq.com/india/dodd-frank- consumer-
protection-act/973520/procedure-to-file-complaint-under-consumer-protection-
Amendment-act-2019
2. Suchita Shukla, Consumer Protection Act, 2019: A Primer, December 24, 2020,
https://www.scconline.com/blog/post/2020/12/24/consumer-protection-act-2019-a-primer/
3. Nitsh Desai article New Consumer Protection Law In India : Broadening The Horizon
http://www.nishithdesai.com/information/research-and-articles/nda-hotline/nda-hotline-single-
view/article/new-consumer-protection-law-in-india-broadening-the horizon.html?
No_cache=1&chash=761270d01627de9ff2d1e43c52c5c21b

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