Consumer Protection Act 2019

11-12-2022
CONSUMER
PROTECTION ACT 2019
ADVERTISEMENT- SECTION 2(1)
Means Includes
Any audio or visual

Notice,
Circular,
Publicity, Light, Label,
Representation, Sound, Wrapper,
Endorsement Smoke,gas, Invoice,
Pronouncement Print,Electronic Or
Media, Internet or Other such documents
website
CA MAYUR AGARWAL-8888022200 1
11-12-2022
APPROPRIATE LABORATORY-
SECTION 2(2)
Laboratory or Organization
Recognized by Recognized by Established under law

CG SG and financed by CG/SG
COMPLAINANT- SECTION 2(5)
CONSUMER CENTRAL GOVT. LEGAL

STATE GOVT REPRESENTATIVE
CENRAL AUHTORITY
In case of death
of consumer
VOLUNTARY CONSUMER ONE OR MORE CONSUMER PARENT OR
ASSOCIATION WITH SAME INTEREST GUARDIAN
Registered Association If Consumer is a

Minor
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COMPLAINT- SECTION 2(6)
Unfair Trade Deficiency in Hazardous Claim for product

Practice/Restrictive Service Services liability action
trade Practice
Hazardous Prices charged in

Defect or Defects
Goods excess of
in the goods
Registered Association
Fixed by Displayed Displayed Agreed
Law on on between
Goods Price List parties
CONSUMER- SECTION 2(7)
In Case of Goods In Case of Service
Means Includes Means Includes
Buys any Goods User of Goods Hire of Avails any service Any beneficiary of service
Consideration
Paid Promised Partly Paid System of Deferred

or Promised Payment
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CONSUMER RIGHTS-SECTION 2(9)
Right to be Right to be Right to access Right to seek Right to Right to consumer

Protection heard to variety redressal Information awareness
Marketing of Variety
goods, Quality,
Of Quantity,
services,products Goods,
which are Purity,
Service Standard,
Hazardous to life At Competitive Price
Prices
DEFECT-SECTION 2(10)
Means
Any Quality, Which is required

Fault, Quantity, to be maintained
Imperfection, Potency,Purity,
Shortcoming Standard
Under any Under any

Law Contract
Expressed Implied
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DEFICIENCY-SECTION 2(11)
Means Includes
Any Fault,
Imperfection, Negligence or Omission by Deliberate withholding
Shortcoming Person causing loss or injury relevant information
Or
Inadequacy
Quality, Under any

Nature Which is required Law
And Expressed
to be maintained
Manner of
Performance Under any
Contract Implied
Marketing, Goods and Through

Means Network of
Distribution, services
Sale sellers
DIRECT SELLING-
SECTION 2(13)
Other than
Permanent
Retail location
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E-COMMERCE-SECTION 2(16)
Means Includes
Buying and Digital

Selling of Goods Product
and Services
Over Digital or Electronic

Network
ELECTRONIC SERVICE PROVIDER-

SECTION 2(17)
Means Includes
A person who provide Online Market Online Auction

technology or process Place Sites
Enable the seller to

engage in advertising or
selling goods or services
11-12-2022
ENDORSEMENT-SECTION 2(18)
Message Verbal Demonstration

Statement
Depiction of
Name, Name or seal of any institution or

Signature, organization,
Likeness Which makes the consumer believe that
Or other
Identifiable Personal It reflects opinion,finding,experience of
Characteristic of an individual person making such endorsement
GOODS-SECTION 2(21)
Means Includes
Every Kind of Movable “Food" as defined in section

Property 3(1)(j) of the Food Safety and
Standards Act, 2006.
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MANUFACTURER-SECTION 2(24)
Means a person
Makes any goods or Assemble any goods Puts or causes to put

part thereof or part thereof his own mark on any
goods by any other
person
MEDIATION-SECTION 2(25)
Mediation means the process by which a mediator mediates the consumer dispute
MEDIATOR-SECTION 2(26)
Mediator means a mediator referred under section 75
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PRODUCT SERVICE
In relation to product Means a person who provide any service in
PROVIDER-SECTION
respect of such product
2(38)
Regulation made by National Commission, or as the case

REGULATIONS- 2(39)
may be, the Central Authority
REGULATOR- 2(40) Regulator means a body or any authority established under any other law for
time being in force
SERVICE-SECTION 2(42)
Means Includes but not Does Not Includes

limited to
Service of any description Contract of

Service free
which is made available to the provision of facilities in connection Personal
of charge
to potential users with Service
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
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CENTRAL CONSUMER PROTECTION AUTHORITY-SECTION 10
Established by Short Name Full Name Headquarters Branches
Central Central Central Consumer National Capital Other Places

Government Authority Protection Authority decided by CG
VACANCY NOT TO INVALIDATE MEETING-SECTION 12
No Proceedings shall be invalidated because
Any vacancy or Any defect in the Any irregularity in the

defect in the appointment of procedure of the Central
constitution of person Authority
authority
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FUNCTIONS OF CENTRAL AUTHORITY-SECTION 18(2)
Review International Awareness Safety

Enquiry and
Investigate Practices Notice
Intervene in
File Complaint Research NGO’s and other Advise
Proceedings
Institution Government
ORDER PASSED BY COMMISSION-Section 39
Remove Return Discontinue Issue Withdraw the

the defect the price unfair trade corrective sale of hazardous
practices advertisement goods
Replace Pay such Not to offer Cease the Provide adequate

the goods amount as hazardous or manufacturing of cost to the party
compensation unsafe goods hazardous goods
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SECTION 65:SERVICE OF NOTICE
Opposite Party Complainant
Registered Post Speed Post,

acknowledgment due Courier Service
Or
Other modes like
Electronic mode
Section 66:Expert to assist
Application is made Involved larger National or State Commission may

by complainant interest of consumer direct individual or organization or
expert to assist them
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Section 72:PENALTY FOR NON- COMPLIANCE OF ORDER
IMPRISONMENT OR FINE OR BOTH
1 month to 3 years Rs 25,000 to Rs 1,00,0000
PRODUCT LIABILITY ACTION-SECTION 83
Product Product Service Product Seller

Manufacturer Provider
Harm caused due

to defect in
product
11-12-2022
LIABILITY OF PRODUCT MANUFACTURER-SECTION 84
Manufacturing Deviation from No Adequate

Defect Specification Information
Defect in Design Express Warranty
LIABILITY OF PRODUCT SERVICE PROVIDER-SECTION 85
Deficiency Withholding No Adequate Express Terms

in Service Information Warning and Conditions
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LIABILITY OF PRODUCT SELLER-SECTION 86
Substantial Express Warranty Identity of

Control Manufacturer Missing
Altered or Reasonable Care

Modified avoided
LIABILITY OF PRODUCT SELLER-SECTION 87
Exception against Product Manufacturer
Warning or Product sold as component Use of Alcohol or Expert

Instruction to other product any Drug Supervision
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PENALTY FOR NONCOMPLAINCE OF DIRECTION OF CENTRAL AUHTORITY-SECTION 88
Imprisonment Fine- OR Both

OR
Upto 6 months Extend upto Rs 25 lakh
PUNISHMENT FOR FALSE OR MISLEADING ADVERTISEMENT-SECTION 89
First Offence Subsequent Offence
Imprisonment Fine- Imprisonment Fine-
Upto 2 years Extend upto Rs 10 lakh Upto 5 years Extend upto Rs 50 lakh
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LEGISLATIVE BACKGROUND
30TH July 2019 6th August 2019 9th August 2019
Consumer Protection Bill Consumer Protection Bill Received the asset of

was passed by Lok Sabha was passed by Rajya Sabha the President
OBJECTIVE Protect the interest of

consumers
Establishment of
authorities
Timely and Effective Settlement of

administration consumer disputes and
for matters connected
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Bhupendra Jang Bahadur Guna vs. Regional Manager and Others
The National Commission held that a tractor purchased primarily to till the land of the
purchaser and let out on hire during the idle time to till the lands of others would not
amount to commercial use.
A Narasamma vs. LIC of India.
The State Commission held that as the term ‘consumer’ includes any
beneficiary of service other than the person who hires the services for
consideration, the widow being the beneficiary of services is a ‘consumer’
under the Act entitled to be compensated for the loss suffered by her due to
negligence of the LIC
11-12-2022
Laxmiben Laxmichand Shah v. Sakerben Kanji Chandan and others
The Supreme Court held that the tenant entering into lease agreement with the
landlord cannot be considered as consumer under Section 2(1)(d) of the Act.
Where there was no provision in the lease agreement in respect of cleaning,
repairing and maintaining the building, the rent paid by tenant is not the
consideration for availing these services and therefore, no question of deficiency in
service.
Morgan Stanley Mutual Fund v. Kartik Das
The Supreme Court held that an application for allotment of shares cannot
constitute goods. It is after allotment, rights may arise as per the articles of
association of the company. At the stage of application there is no purchase of
goods for consideration and again the purchaser cannot be called the hirer of
services for consideration.
11-12-2022
Indian Merchants Association vs. V P Shantha
The Supreme Court observed that a contract for service implies a

contract whereby one party undertakes to render services e.g.
professional or technical services to or for another in the performance
of which he is not subject to detailed direction and control but
exercises professional or technical skill and uses his own knowledge
and discretion
Laxmi Engineering Works v. P.S.G. Industrial Institute
It observed that whether the purpose for which a person has bought goods is a
‘commercial purpose’ is always a question of facts and to be decided in the facts and
circumstances of each case. If the commercial use is by the purchaser himself for the
purpose of earning his livelihood by means of self-employment such purchaser of
goods would yet be a consumer. The Supreme Court further observed that if a person
purchased a machine to operate it himself for earning his livelihood, he would be a
consumer. If such person took the assistance of one or two persons to assist him in
operating the machine, he would still be a consumer. But if a person purchases a
machine and appoint or engage another person exclusively to operate the machine,
then such person would not be a consumer.
11-12-2022
Central Consumer Protection Council-Section 3
Established By Named Composition
Central Government Central Council
Chairperson Members
Minister in charge of the Such number of official and

Department of Consumer non-official member as may be
Affairs in Central Government pescribed
Procedure for Meeting of Central Council-Section 4
Minimum Subsequent Time and Procedure at

Meetings Meetings Place Meetings
Atleast one meeting Shall meet as and when Chairperson may As may be
shall be held every year necessary think fit prescribed
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Object of Central Council-Section 5
Advise on promotion and protection of the

consumer rights under the Act
State Consumer Protection Council-Section 6
State State Council

Government
Chairperson Members Members
Minister in charge of the Such number of official and Such number of official and
Department of Consumer non-official member as may be non-official member not
Affairs in State Government prescribed exceeding 10, appointed by CG
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State Consumer Protection Council-Section 6
Meetings
Minimum Time and Procedure

Meetings Place at meetings
Atleast two meetings Chairperson may think fit As may be prescribed
Object of Central Council-Section 7

consumer rights under the Act within the State
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District Consumer Protection Council-Section 8
State District Council

Government
Chairperson Members
Collector of the
Such number of official and
district
non-official member as may be
prescribed
District Consumer Protection Council-Section 8
Meetings
Minimum Time and Procedure

Meetings Place at meetings
Atleast two meetings Chairperson may think fit As may be prescribed
11-12-2022
Object of District Council-Section 9

consumer rights under the Act within the district
Establishment of Consumer Mediation Cell:- Section 74
Establish by notification
State Central
Government Government
National
Commission
District State
Commission Commission
11-12-2022
Establishment of Consumer Mediation Cell:- Section 74
Number of Maintain Submit Quarterly

Person Report
1) List of empanelled
mediators To District,State and
As
2) List of cases handled by National Commission as
prescribed
cell specified in regulations
3) Record of proceedings
4) Any Other Information
Prepare Panel of Panel of mediators prepared by District, State and National

mediation Commission
Selection committee consisting of President and member of

Recommendation
Commission
Empanelment
of Mediators:-
Section 75 Specified in Qualification –Experience, procedure of empanelment,Fees
regulations Payable,manner of training,code of conduct,ground on which can be
removed or cancelled etc
Term of
It shall be valid for 5 years
empanelment
Re-empanelment Eligible to be re-empaneled for another term
11-12-2022
Nomination of mediators from Panel:- Section 76
Nomination
Based on
Suitability for resolving the consumer dispute resolved
Any personal, professional or financial interest in the outcome of the

consumer dispute
Duty of Mediator to
disclose certain
facts:- Section 77 The circumstances which may give rise to a justifiable doubt as to his
independence or impartiality
Such other facts as may be specified by regulations
11-12-2022
Replacement of mediator in certain cases:- Section 78
Where the District Commission or the State Commission or the National Commission, as the case
may be, is satisfied, on the information furnished by the mediator or on the information received
from any other person including parties to the complaint and after hearing the mediator, it shall
replace such mediator by another mediator
Procedure for Mediation:- Section 79
Place of Mediator Time and

Mediation Manner
Guided by principle of
Consumer Mediation natural justice As may be specified in
cell attached to regulations
Commission
11-12-2022
Settlement through Mediation:- Section 80
Agreement of Agreement of
Settlement is reached settlement not reached
Mediator shall prepare

report accordingly and
Terms of agreement Mediator shall prepare submit the same to
must be reduced to settlement report and concerned Commission
writing and signed by forwarded the signed
parties agreement to
concerned Commission
Recording of Settlement and passing of order- Section 81
Settlement in Settlement in No Settlement

Full Part
Shall continue to hear

Pass suitable order Shall record settlement all the issues involved
within 7 days of receipt and continue to hear in consumer dispute
of settlement report other issues
11-12-2022
Established By Central Government
Establishment of
Central Consumer Short Name Central Authority
Protection Authority-
Section 10
Headquarters National Capital Region of Delhi
Regional and As the Central Government may decide

Other Offices
Establishment of Central Consumer Protection Authority-Section 10
Functions Composition
Regulate matters relating to
Chief Such other Appointed by

Violation of False or Commissioner Commissioner Central
Consumer Rights misleading Government
advertisement
As may be
prescribed
Unfair trade Protect, Promote
practice and enforce rights
of consumer
11-12-2022
Qualification, Method of recruitment of Chief Commissioner and Commissioner-Section 11
Central
Government
By notification,make rules
Qualifications for appointment, method of recruitment, procedure for appointment, term of

office, salaries and allowances, resignation, removal and other terms and conditions
Vacancy not to invalidate proceedings of Central Authority-Section 12
Proceedings or Act of Central Authority shall not be invalidated by reason of
Vacancy Appointment Procedure
Any vacancy or defect in Any defect in the Any irregularity of

the constitution of appointment of person procedure
Central Authority
11-12-2022
Appointment of officers,experts,professionals and other employees of Central Authority-Section 13
Appointment Salary and Qualification

allowances
Central Special knowledge and experience in

Government As Prescribed the areas of consumer right and
welfare,consumer
policy,law,medicine,food
safety,health,engineering,product
safety,commerce,economics,public
affair or administration
Procedure of Central Authority-Section 14
Procedure Power of Chief Delegation

Commissioner
As specified by Chief Commissioner may

Regulations Powers of general delegate his power to any
superintendence, direction Commissioner or officer
and control in respect of all
administrative matters
11-12-2022
Investigation Wing-Section 15
Headed by Appointment Delegation
Director- General Central DG can delegate all his

Government power to Additional
Director-General,Joint
Function Power of DG DG,Deputy DG
Report
Enquiry General
Investigation control,supervision
and direction Enquiry or
investigation report
shall be submitted to
central Auhtority
Power of District Collector-Section 16
Complaint or reference
made by Central District Collector
Authority or
Commissioner
Enquire or
investigate
complaints
11-12-2022
Complaints to Authorities-Section 17
Violation of Unfair Trade Misleading

consumer rights practices Advertisement
Complaint may be forwarded in writing or electronic mode
District Commissioner of Central

Collector regional office Authority
Powers and Functions of Central Authority-Section 18
1) Promote the rights of consumers and prevent violation of consumers rights
2) Prevent Unfair trade practices
3) Ensure false or misleading advertisement
4) Ensure no person takes part in the publication of any false advertisement
11-12-2022
Powers of Central Authority to refer matter for investigation or to other regulator-Section 19
Conduct
Preliminary enquiry
Call upon or direct him
to produce any
documents or records
Central Authority There exist prima
facie violation
Any information,
complaint or direction or
on its own motion
It may refer the matter to concerned Investigation by Director

Central Government regulator along with report General
Powers of Central Authority to recall Goods-Section 20
Based on investigation Central Authority is satisfied that there is violation, it may pass order
Recall goods or Reimbursement of price Discontinue practices

withdrawal of services of goods or services so which are unfair and
which are dangerous recalled against consumer
11-12-2022
Power of Central Authority to issue directions and penalties against false or misleading
advertisement-Section21
Central Authority
False or misleading advertisement
Discontinue Modify such

advertisement advertisement
Trader Manufacturer Endorser Advertiser Publisher
Penalty
Manufacturer Endorser
First Time Contravention Subsequent Contravention
Fine –Extend upto Rs Fine –Extend upto Rs

10,00,000 50,00,000
11-12-2022
Central Authority Prohibit endorser From making endorsement of

product or service which may
extend upto one year
Prohibit from making endorsement Subsequent

of product or service which may contravention
extend upto three years
Where the Central Authority is satisfied after investigation that any person is found to publish, or is a
party to the publication of, a misleading advertisement, it may impose on such person a penalty which
may extend to ten lakh rupees
No endorser shall be liable to a penalty, if he has exercised due diligence to verify the veracity of the
claims made in the advertisement regarding the product or service being endorsed by him
No person shall be liable to such penalty if he proves that he had published or arranged for the
publication of such advertisement in the ordinary course of his business
The Central Authority shall give the person an opportunity of being heard before an order under this
section is passed.
11-12-2022
Factors while determining Penalty
Population and area Frequency and Vulnerability of class Gross revenue from
impacted or affected duration of offence likely to be affected sales
Search and Seizure-Section 22
Power of Directorate general
Enter at any reasonable Make a note or an Require any person to

time into any premises inventory of such record produce any record,register
and search or article or other document
11-12-2022
Search and Seizure-Section 22
Goods subject to speedy or natural decay

The Director General or such other officer may dispose of the article in such manner as may
be prescribed
Search and Seizure

Provisions of the Code of Criminal Procedure, 1973, relating to search and seizure shall
apply
Designation of any statutory authority or body to function as Central Authority-

Section 23
Section 23 empowers the Central Government may, if it considers necessary, by

notification, designate any statutory authority or body to exercise the powers
and perform the functions of the Central Authority
11-12-2022
Appeal-Section 24
A person aggrieved by any order passed by the Central Authority under

sections 20 and 21 may file an appeal to the National Commission within
a period of thirty days from the date of receipt of such order

Consumer Protection Act 2019

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11-12-2022

ADVERTISEMENT- SECTION 2(1)

Any audio or visual

Recognized by Recognized by Established under law

COMPLAINANT- SECTION 2(5)

CONSUMER CENTRAL GOVT. LEGAL

Registered Association If Consumer is a

COMPLAINT- SECTION 2(6)

Unfair Trade Deficiency in Hazardous Claim for product

Hazardous Prices charged in

CONSUMER- SECTION 2(7)

In Case of Goods In Case of Service

Means Includes Means Includes

Paid Promised Partly Paid System of Deferred

CONSUMER RIGHTS-SECTION 2(9)

Right to be Right to be Right to access Right to seek Right to Right to consumer

Any Quality, Which is required

Under any Under any

Quality, Under any

Marketing, Goods and Through

Buying and Digital

Over Digital or Electronic

ELECTRONIC SERVICE PROVIDER-

A person who provide Online Market Online Auction

Enable the seller to

Message Verbal Demonstration

Name, Name or seal of any institution or

Every Kind of Movable “Food" as defined in section

Makes any goods or Assemble any goods Puts or causes to put

Mediator means a mediator referred under section 75

Regulation made by National Commission, or as the case

Means Includes but not Does Not Includes

Service of any description Contract of

CENTRAL CONSUMER PROTECTION AUTHORITY-SECTION 10

Established by Short Name Full Name Headquarters Branches

Central Central Central Consumer National Capital Other Places

VACANCY NOT TO INVALIDATE MEETING-SECTION 12

No Proceedings shall be invalidated because

Any vacancy or Any defect in the Any irregularity in the

FUNCTIONS OF CENTRAL AUTHORITY-SECTION 18(2)

Review International Awareness Safety

ORDER PASSED BY COMMISSION-Section 39

Remove Return Discontinue Issue Withdraw the

Replace Pay such Not to offer Cease the Provide adequate

SECTION 65:SERVICE OF NOTICE

Opposite Party Complainant

Registered Post Speed Post,

Section 66:Expert to assist

Application is made Involved larger National or State Commission may

Section 72:PENALTY FOR NON- COMPLIANCE OF ORDER

IMPRISONMENT OR FINE OR BOTH

1 month to 3 years Rs 25,000 to Rs 1,00,0000

PRODUCT LIABILITY ACTION-SECTION 83

Product Product Service Product Seller

Harm caused due

LIABILITY OF PRODUCT MANUFACTURER-SECTION 84

Manufacturing Deviation from No Adequate

Defect in Design Express Warranty

LIABILITY OF PRODUCT SERVICE PROVIDER-SECTION 85

Deficiency Withholding No Adequate Express Terms

LIABILITY OF PRODUCT SELLER-SECTION 86

Substantial Express Warranty Identity of

Altered or Reasonable Care