RECENT CHANGES IN

CONSUMER LAWS IN INDIA

IMPACT ON BUSINESS
ORGANIZATIONS

GROUP 8
CONSUMER LAWS IN

INDIA
AN OVERVIEW
Consumer Protection Act 1986
Consumer Rights & Complaint redressal
Consumer Protection (E-commerce ) Rules

Unfair Trade practices includes misleading

2020
advertisemnts Provide Information to consumers
Acknowledge Consumer complaint within

Consumer Protection Act 2019 48 hours

Sellers cannot refuse to take back goods
Definition & Rights of Consumer
E-commerce and deep discounts
Establishment of central
Penalties for advertisements Product

liability
Consumer protection authority
 CONSUMER PROTECTION
ACT 2019
KEY FEATURES
Definition of Consumers
A person who buys goods or avails a service in exchange for a
consideration
Covers transactions through all modes- online and offline
including electronic means, teleshopping or telemarketing
Rights Based Approach
Consumer rights are defined and protected in the act
They should have information of the quality, quantity, standard, and
prices of goods or services
Can access goods & services at competitive prices
Seek redressal for unfair trade practices
 ESSENTIAL PROVISIONS IN CPA 2019
CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)
The CCPA will have the right to take suo-moto actions, recall products, order reimbursement of the
price of goods/services, cancel licenses, impose penalties and file class-action suits
It can conduct inquiries on matters relating to violations of consumer rights, unfair trade practices, and
misleading advertisements.
CENTRAL CONSUMER PROTECTION COUNCIL
Acts as an advisory body and may meet as and when necessary, however, they must hold at least one meeting
every year
The Council, which has a three-year tenure, will have a Minister-in-charge of consumer affairs from two
States from each region – North, South, East, West, and NER.
STATE CONSUMER PROTECTION COUNCILS
Members of the State Council are Minister-in-charge of the Consumer Affairs, any number of
official or non-official members representing necessary interests under the Act and The Central
Government may also appoint not less than ten members for the purposes of this Act
The State Councils must hold at least two meetings every year
DISTRICT CONSUMER PROTECTION COUNCILS
Members of the State Council are the collector of that district will be appointed as the Chairperson
of the District Council and any other members representing necessary interests under the Act
 MAJOR CHANGES IN CPA 2019
Advertisement
Clearly defines what constitutes an endorsement: as
any message or depiction
Act empowers the CCPA to hold an endorser
personally liable in the event of misleading
advertisements
The CCPA can impose a penalty of ₹10 lakh on not
just the manufacturers or traders, but also the
endorsers
Unfair Contracts
The Bill defines contracts unfair if they have terms
which cause significant change in the rights of
consumer
The State Commission jurisdiction entertains 'unfair
contracts´, where the value of goods or services paid
does not exceed ₹10 crore
The Standing Committee has right to terminate unfair
contracts´ as a separate consumer right
Product Liability
Recognizes product liability as a core area for
consumer protection for the first time
It refers to the liability of a service provider to
compensate a consumer for harm or injury caused by
any defect in goods
The liability of manufacturers is stricter as compared
to service providers
E-commerce
The Central Government would now prescribe rules
for preventing fraud and unfair trade practices in e-
commerce and direct selling
The amended definition of a 'consumer´ recognizes
transactions conducted through all modes, whether
offline or online, through electronic means,
teleshopping, multi- level marketing or direct selling
 MAJOR CHANGES IN CPA 2019
Disputes Resolution Consumer Complaint
Consumer mediation cells to be attached to each The Bill allows for District and State
District State and the National Commission Commissions to now exercise territorial
Consumer disputes could be referred to the cells if jurisdiction in the place where the complainant
they are deemed fit for settlement by the resides or is employed
concerned Commission The mediation cell has This step benefits consumers since jurisdiction
responsibility to produce a report quarterly before earlier used to depend upon the seller´s place of
the commission that it is attached with work
It makes matters simpler on the question of
jurisdiction in e- commerce transactions
Monetary Threshold
It sets out the monetary limits or thresholds up to
which courts or adjudicating authorities can
entertain claims
The complaints can be entertained by various
commissions based on the value of goods and
services:
A) District Commission: Not exceeding 1 Crore
B) State Commission: 1 Crore - 10 Crore
C) National Commission: Exceeding 10 Crore
SKINCARE BRAND 'FAIR &
LOVELY'

https://www.youtube.com/watch?v=UleAplrdp4M
In September 2019, the Indian fairness cream market was worth about 450 million U.S. dollars. Over the years, HUL´s Fair
& Lovely has created an image for being a skin lightening cream. Undoubtedly, there are numerous other players in the
market, but Fair & Lovely faced a lot of backlash on social media for its feeble choice of brand name.
Gradually many people grew tired of the regressive and misleading advertisements which blatantly propagated colourism.
#AllShadesAreLovely trend started a couple of years back. People demanded a change in narrative that ONLY fair is lovely.
SKINCARE BRAND 'FAIR &
LOVELY'

The company changed the name of its flagship fairness cream from 'Fair and Lovely' to 'Glow and Lovely' in July 2020. Some
believed it was a big step forward by HUL, others believe it's only an eyewash and there should be a complete ban on skin- tone
oriented products.
The issue behind deceptive advertising and the sale of fairness goods is easy to comprehend. The ad campaigns design their
marketing around the target´s insecurities imposed on by society.
The ads even try to equate fairness with beauty and good skin-health. To the contrary, fariness creams have carcinogenic
chemicals that may cause skin allergy, skin degradation, liver and kidney problems and even skin cancer.
 SENSODYNE

Most of us have watched ‘dentists’ from other countries recommending Sensodyne. In this case, CCPA said that
it was illegal for practicing doctors in India to endorse any product or drug publicly. However, GSK was able to
circumvent this regulation by showing ‘practicing dentists’ in foreign countries endorsing the product. CCPA
said it’s against the rules.
CCPA has also demanded an investigation into Sensodyne’s claims of “recommended by dentists worldwide”,
“world’s no.1 sensitivity toothpaste” and “clinically proven relief, works in 60 seconds”
The Consumer Protection Regulator CCPA in India ordered GlaxoSmithKline (GSK) Consumer Healthcare Ltd to
discontinue its advertisements of Sensodyne products in India for flouting norms. and misleading claims.
The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on eyewear maker Sure
Vision India for a misleading advertisement, which claimed its products improve eyesight naturally and eliminate
eye strain, and directed it to discontinue the commercial.Sure Vision made false claims in the advertisement that
its products improve eyesight naturally, eliminate eye strains, exercises the ciliary muscles and it is the world's
best unisex correction apparatus, it noted.
According to the CCPA, "The company was not able to substantiate its claims related to the efficacy of the
product made out in the advertisement"
Gillette India Limited Vs. Reckitt Benckiser (India)

Pvt. Ltd. CS(OS) 251/2016

The Plaintiff is Gillette India Ltd., which produces and markets hair removal razors under the

"VENUS" and "SIMPLY VENUS" trademarks. The razors used by the plaintiff have a normal light

blue colour.
Reckitt Benckiser (India) Pvt. Ltd., the defendant, produces and markets hair removal creams under the

brand name "VEET." In its advertisement was showing a comparison between razor and hair removing

cream; the razor used was similar to the Gillette razor and was of blue color.
KEY FACTS
The plaintiff brought a suit in that matter contending that it is

harming the reputation of razors and therefore defaming the company

product.

To which the defendant company said that the shape and size of the
razor shown in their advertisement is different and that the issue of

using foam also doesn't stand as the same has been practiced by

plaintiff in their advertisement.

JUDGEMENT
The Delhi High Court stated that regarding the color of the razors used in the

defendant's ad, there is an immediate correlation upon seeing the razors in the

defendant's contested ad and those of the plaintiff in that it is not anticipated that

the average consumer will place any emphasis on the shape of the razors in the

impugned advertisement's fleeting images.

The court ordered for Ad interim injunction to protect the rights of the parties to the

suit, since there could not be a perfect solution to the problem until the parties

complete their pleadings.
 CONCLUSION
Lorem ipsum sit amet.

Celebrity Advertising Consumer Charter

Guidelines for celebrity endorsement is Organizations should provide

required consumer charter of goods & services

Strengthening the authorities Omnichannels of Business

Filling of vacancies and Strengthening Social Commerce - Many businesses

CCPA are using social media for business
THANK
YOU