CONSUMER PROTECTION

CONSUMER PROTECTION
One of the most important milestones in the

consumer movement in the country has been the
enactment of the Consumer Protection Act 1986.
This Act was necessitated because the well
organized sectors of manufacturers, traders and
service providers, armed with knowledge of the
market and manipulative skills, often attempt to
exploit the consumers, despite the existence of
provisions in different laws protecting their
interests. [ Food Adulteration Act, MRTP Act, etc.]
Moreover, various factors including increase in
the population resulted in enormous pendency and
delay in disposal of cases in the
CONSUMER PROTECTION
Civil courts. Consumers cannot be asked to wait for
years for settlement of even small claims. Hence,
the Consumer Protection Act, 1986 was enacted to
better protect the interest of the consumers. It is
one of the most progressive and comprehensive
pieces of legislation.
The C.P. Act, 1986 was enacted as a result of
widespread consumer protection movement. On the
basis of the report of the Secretary General on
Consumer Protection, dtd. 27-05-1983, the United
Nations Economic and Social Council recommended
that the world Governments should develop,
strengthen and implement a coherent consumer
CONSUMER PROTECTION
protection policy taking into consideration the guidelines
setout therein. The Governments were to further provide
adequate infrastructure including the bodies as well as
financial facilities to develop, implement and monitor
consumer protection policies.
The Act provides for a separate three-tier quasi-
judicial consumer dispute redressal machinery at the
National, State and District levels and it intended to
provide simple, speedy and inexpensive redressal for
consumers’ grievances.
The Consumer Protection Act, 1986 which provides
for the setting up of three-tier quasi-judicial
THE CONSUMER PROTECTION ACT 1986
machinery at the National, State and District levels
to deal with consumer complaints against defective
or hazardous goods, deficient services, unfair trade
practices, etc. and also provides for setting up of
Consumer Protection Councils at the Central and
State levels which are advisory bodies to promote
and protect the rights of the consumers.
Objects and Reasons.
1. The Consumer Protection Act 1986 was enacted to
provide for better protection of the interest of consumers
and for the purpose of making provision for establishment
of consumer protection councils and other authorities for
the settlement of consumer disputes, etc. Although, the
working of the consumer dispute redressal agencies has
served the purpose to a considerable extent under the said
Act, the disposal of cases has not been fast due to various
constraints. Several short comings have been noticed
while administering the various provisions of the said
Act.
2. Consumer markets for goods and services have
undergone drastic transformation since the enactment of
the Consumer Protection Act 1986.
The modern market place contains a plethora of
products and services. The emergence of global supply
chains, rise in international trade and the rapid
development of e-commerce have led to new delivery
systems for goods and services and have provided new
options and opportunities for consumers.
Equally, this has rendered the consumer vulnerable to
new forms of unfair trade and unethical business
practices. Misleading advertisements, tele-marketing,
multi-level marketing, direct selling and e-commerce
pose new challenges to consumer protection and will
require appropriate and swift executive interventions to
prevent consumer detriment.
Therefore, it has become inevitable to amend the Act to
address the myriad and constantly emerging
vulnerabilities of the consumers In view of this, it is
proposed to repeal and re-enact the Act.
3. The Act provides for establishment of an executive
agency to be known as the Central Consumer Protection
Authority (CCPA) to promote, protect and enforce the
rights of consumers; make interventions when necessary
to prevent consumer detriment arising from unfair trade
practices and to initiate class action including enforcing
recall, refund and return of products, etc.
4. This Act envisages provisions for product liability action
on account of harm caused to consumers due to defective
product or by deficiency in services.
5. the Act also provides provision of 'Mediation' as an
Alternative Dispute Resolution Mechanism.
6. The Act provides for several provisions aimed at
simplifying the consumer dispute adjudication process of
the Consumer Disputes Redressal Agencies, inter alia,
relating to enahancing the pecuniary jurisdiction of the
Consumer Disputes Redressal Agencies, increasing
minimum number of members of Redressal Agencies,
provision for consumers to file complaints electronically,
etc.
THE CONSUMER PROTECTION ACT, 2019

NO. 35 OF 2019
[9th August , 2019.]
An Act to provide for protection of the interests of
consumers and for the said purpose, to establish
authorities for timely and effective administration and
settlement of consumers' disputes and for matters
connected therewith or incidental thereto.
Section 1.
1) This Act may be called the Consumer Protection Act,
2019.
(2) It extends to the whole of India except the State of
Jammu and Kashmir.
(3) It shall come into force on such date as the Central
Government may, by notification, appoint and different
dates may be appointed for different States and for
different provisions of this Act and any reference in any
such provision to the commencement of this Act shall be
construed as a reference to the coming into force of that
provision.
(4) Save as otherwise expressly provided by the Central
Government, by notification,this Act shall apply to all
goods and services.
THE C. P. ACT 2019- Section 2
‘Some sections came into force on 20-07-2020.
Remaining sections on 24-07-2020.
Section 2- Definitions:
Section 2(4) "Central Authority" means the Central Consumer
Protection Authority established under section 10.
Section 2(5)- Complainant means—
(i) a consumer; or
(ii) any voluntary consumer association registered under any law
for the time being in force; or
(iii) the Central Government or any State Government; or
(iv) the Central Authority; or
(v) one or more consumers, where there are numerous
consumers having the same interest; or
(vi) in case of death of a consumer, his legal heir or legal
representative; or
(vii) in case of a consumer being a minor, his parent or legal
guardian.
-----------------------------------
‘Complainant’ is a person who lodges a complaint. A
user of goods or beneficiary of services is included
in the definition of ‘consumer’ and hence, he may
independently make a complaint.
One or more consumers, where there are numerous
consumers having the same interest:
This is a representative action similar to one
under Order I, R. 8 of the Civil Procedure Code,
1908. The complainants must have a cause of
action to make the complaint under the Consumer
Protection Act, 2019.
Legal heir or legal representative:
Initially, the Consumer Protection Act, 1986 did not
expressly indicate that the Legal Representatives or
heirs of a consumer are also included.
In Cosmopolitan Hospital vs. Smt. Vasantha P. Nair -
1992, it was held that by operation of law, the legal
representatives get clothed with the rights, status
and personality of the deceased. Thus the
expression consumer would include legal
representative of the deceased consumer and he
could exercise his right for the purpose of enforcing
the cause of action which had devolved on him.
In 2002, by amendment to the Consumer Protection
Act, 1986, LRs and legal heirs were included in the
definition of ‘consumer’
Limitation:
Section 69 provides that The District Commission, the
State Commission or the National Commission shall not
admit a complaint unless it is filed within two years from
the date on which the cause of action has arisen.
E.g. A house was allotted on 1-1-2019. Defects appeared
in the house on 10-1-2019. Here the cause of action
arose on 10-1-1999.
Section 69(2) provides for condonation of delay in filing a
complaint. If the Consumer Commission is satisfied that
there was sufficient cause for not filing the complaint
within the prescribed period, it can entertain a complaint
beyond limitation time.
Complaint: An aggrieved consumer seeks redressal
under the Act through the instrumentality of
complaint. It does not mean that the consumer can
complain against his each and every problem. The Act
has provided certain grounds on which complaint can
be made. Similarly, relief against these complaints can
be granted within the set pattern.
Section 2(6)- Complaint means—any allegation in writing,
made by a complainant for obtaining any relief provided by
or under this Act, that—
(i) an unfair contract or unfair trade practice or a restrictive
trade practice has been adopted by any trader or service
provider;
(ii) the goods bought by him or agreed to be bought by him
suffer from one or more defects;
(iii) the services hired or availed of or agreed to be hired or
availed of by him suffer from any deficiency;
(iv) a trader or a service provider, as the case may be, has
charged for the goods or for the services mentioned in the
complaint, a price in excess of the price—
(a) fixed by or under any law for the time being in force;
or
(b) displayed on the goods or any package containing such
goods; or
(c) displayed on the price list exhibited by him by
or under any law for the time being in force; or
(d) agreed between the parties;
(v) the goods, which are hazardous to life and safety
when used, are being offered for sale to the public
— (a) in contravention of standards relating to
safety of such goods as required to be complied
with, by or under any law for the time being in
force;
(b) where the trader knows that the goods so
offered are unsafe to the public;
(vi) the services which are hazardous or likely to be
hazardous to life and safety of the public when used,
are being offered by a person who provides any
service and who knows it to be injurious to life and
safety;
(vii) a claim for product liability action lies against the
product manufacturer, product seller or product
service provider, as the case may be.
Section 2(7) "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 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 part by
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.
Explanation: For the purposes of this clause,—
(a) the expression "commercial purpose" does not include
use by a person of goods bought and used by him
exclusively for the purpose of earning his livelihood, by
means of self-employment;
(b) the expressions "buys any goods" and "hires or avails
any services" include offline or online transactions
through electronic means or by teleshopping or direct
selling or multi-level marketing.
The primary purpose of the definition is to restrict
the availability of consumer remedies to consumers
only and to confine the Act to non-business buyers.
Buyer of goods is a consumer: as per the definition,
consumer is one who purchases the goods for private
use or consumption.
‘Goods’ means every kind of movable property other than
actionable claims and money; and includes stock and
shares, growing crops, grass, and things attached to or
forming part of the land which are agreed to be severed
before sale or under the contract of sale [Section 2(7),
Sale of Goods Act, 1930].
The term ‘consumer’ also includes any person who uses
the goods with the permission of the buyer though he is not
himself a buyer.
But the term ‘consumer’ would not include a buyer who
purchases for his trade. It does not include a person who
obtains goods for resale or for any commercial purpose. But
mere fact that a person buys a thing repeatedly is not
sufficient to make it a trade sale or to take it out of the
category of a consumer sale.
The definition requires that one party must make the
contract in the course of a business and other must not.
Therefore, a sale by one consumer to another consumer
would not be within the scope of the Act.
Business of all kind covered: Any type of business is
covered by the word ‘a business’ and it need not be a
business of selling goods.
A cooperative housing society which is being run on
no-profit and no-loss basis has been held to be not
rendering any commercial service and, therefore, its
members and house allottees could not complain under
the Act against defective service [V. Joshua V. D-G, Air
Force and Naval Housing – (1991) 2 CPJ 371 Karnataka]
Commercial purpose:
Case: Kalpavruksha Charitable Trust V. Toshniwal Bros
(Bombay) Pvt. Ltd. (2000) 1 SCC 512.
Facts: A Charitable Trust was running a Diagnostic Centre.
Patients taking advantage of the CT scan,
etc. at the centre were ordinarily required to pay for the
same and only 10% of them were provided free service.
In these circumstances, the machines purchased by
the trust for use in Diagnostic Centre were held to be
meant for commercial purpose.
Distinction between commercial and domestic
purpose:
The distinction between purchase for a commercial
purpose and for a domestic purpose may sometimes
lead to artificial consideration. For example, once it
was held that the supply of electricity
for running a factory is a supply for a commercial purpose,
but that where the complaint related to the minimum
charges paid only for maintenance of the service line, the
complainant was a consumer.
The National Commission expressed the view that the
purchase of a machine (here offset printing machine) to be
used for profit-making activity on a large scale would be a
commercial purpose, but not so if the machine is to be used
in a small venture in order to make a living [Super Engg.
Corpn. V. Sanjay Vinayak Pant- (1992) 1 CPR 218 NC].
The purchaser of a photo-copier for her self employment
was held to be consumer-buyer and thus entitled to come
before the forum for getting the defective machine replaced
[Secretary, Consumer Guidance and Research Society of
India V. BPL Ltd.- (1992) 1 CPR 564 NC ].
‘...use is made with the approval of such person…’
User of the goods is considered as a consumer although
he may not be a buyer. But user of the goods should
be a rightful user.
Case: Dinesh Bhagat vs. Bajaj Auto Ltd.- 1992- State
Commission Delhi
A purchased a scooter which was in B’s
possession from the date of purchase. B was using it
and taking it to the seller for repairs and service from
time to time. Later on B had a complaint regarding the
scooter. He sued the seller. The seller contended that
since B did not buy the scooter, he was not a
consumer under the Act. The Delhi State Commission
held that B, the Complainant was using it with the
approval of A, the buyer, and therefore he was
consumer under the Act.
Purchase for Self-employment:
“'Explanation.-For the purposes of this clause,
"commercial purpose" does not include use by a person of
goods bought and used by him and services availed by
him exclusively for the purposes of earning his livelihood
by means of self-employment”.
A purchaser of a truck for playing as a public carrier by
himself would be a consumer. A person who
purchases a lathe machine or some other machine to
operate it himself for earning his livelihood would be
a consumer.
Of course, if the buyer takes the assistance of one or
two persons to assist or help him in operating the vehicle
or the machinery, he does not cease to be a consumer.
But, if a person who purchases a vehicle or any
machine to be operated exclusively by another person
would not be a consumer.
Case: Hindustan Motors Ltd. V. N. D. Tamankar- (1996) 1
CPJ 313 NC.
A person purchasing a taxi car as a self-employed
operator was allowed as a consumer to recover Rs.
20,000/- for setting right the manufacturing defects in the
chassis.
The word ‘self-employment’ is not defined. It is a
matter of evidence. It is to be proved that the thing is used
only for self-employment to earn his (purchaser’s)
livelihood without a sense of commercial purpose by
employing on regular basis employees or workmen.
Where a person purchased a machine for brick-
moulding, brick-drying and brick-burning, it was held
that he had to prove that he and his family members were
alone using the machine for making bricks for earning
their livelihood [Cheema Engineering Services V. Rajan
Singh- (1997) 1 SCC 131].
Case: Smt. Pushpa Meena vs. Shah Enterprises
(Rajasthan) Ltd.
A jeep was purchased to run it as a taxi. The question
was whether the buyer of the jeep was a consumer
under the Act. The Rajasthan State Commission held
that to use the jeep as a taxi with the object to earn
profits was a commercial purpose, and therefore, the
buyer was not a consumer within the meaning of the
Act.
In this case, if the purchaser uses the jeep as a
taxi to earn his livelihood by driving the jeep himself,
he would have become consumer. If the purchaser
uses the jeep to earn his livelihood by appointing a
driver to drive it, then the purchaser is not a
consumer.
Hirer of services:
According to definition, the term ‘consumer’
includes a person who hires or avails of any services
for a consideration. The definition also includes the
beneficiary for whose benefit the services are hired or
availed of.
Definition of ‘Service’ :
Section 2(42) "Service" means service of any
description which is made available to potential users
and includes, but not limited to, the provision of
facilities in connection with 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, but does not include the rendering of
any service free of charge or under a contract of personal
service.
Thus, free services and personal services have been
excluded from the definition.
The term ‘contract of personal service’ is not
defined under the Act. In common usage, it means
‘a contract to render service in a private capacity to
an individual’.
E.g.- where a servant enters into an agreement with a
master for employment.
There is a difference between ‘contract of personal
service’ and ‘contract for personal service’.
In case of ‘contract of personal service’, the service
seeker can order or require what is to be done and
how it should be done. Like a master can tell his
servant to bring goods from a particular place.
But in a ‘contract for personal service’, the service
seeker can tell only what is to be done. How the
work will be done is at the wish of the performer.
Like when a person gives a suit to the tailor for
stitching, he does not tell him which method he
should use to stitch it.
A ‘contract of personal service’ is excluded from the
definition of service, a ‘contract for personal
service’ is recognised as service under the Act.
Person Who Hires or Avails of Services is a
Consumer of Services:
Hiring or availing of services should also be for
some sort of remuneration. The rendering of any
service free of charge or under a contract of
personal service is excluded from the definition of
‘service’ for the purpose of the Act.
The term ‘hired’ has not been defined under the Act.
Generally, it is said that ‘to procure the use of
services at a price’.
It appears that the difference between ‘hiring’ a
service and ‘availing of’ a service is that in case of
hiring, the service is given as per the requirement
of the consumer, whereas in case of availing of
service, the consumer makes use of the service
which is available if it suits his requirement. Thus,
one hires an auto rickshaw to go to the desired
destination, but he avails of the city bus service if
the city bus takes him to the destination of his
desire.
Case: Smt. Laxmiben Laxmichand Shah vs. Smt.
Sakerben Kanji Chandan – 2000 SC
A landlord neglected and refused to provide
the agreed amenities to his tenant. He filed a
complaint against the landlord under the
Consumer Protection Act. The complaint was
dismissed on the ground that it was a case of
lease of immovable property and not of hiring
services of the landlord.
Beneficiary of Services with the Approval of Person
Hiring or Availing:
Thereof When a person hires services, he may hire it
for himself or for any other person. In such cases
the beneficiary (or user) of these services is also a
consumer.
E.g.: A takes his son B to a doctor for his treatment.
Here A is hirer of services of the doctor and B is
beneficiary of these services. For the purpose of the
Act, both A and B are consumers.
E.g. the nominee of an insurance policy has been held to be
a consumer. He is the beneficiary of the services hired by
the policy holder [Jagadish Prasad Dagar V. LIC- (1993)
CCJ 543 NC].
Case: Bihar School Examination Board V. Suresh Prasad
Sinha- AIR 2010 SC 93.
The Supreme Court held that the School Examination
Board is not a ‘Service provider’ and a student who took
an examination is not a ‘consumer’.
Services of Commercial nature:
Services must be of commercial nature, in the sense that
they must be on payment, which may be either in cash or
kind and which may be made either at once and partly at
once and partly in credit. In this category also any
beneficiary of the services would be included though he is
not hirer himself, provided that he is using the services
with the approval of the hirer.
Where the electricity connection was taken by the

complaint’s father and after the death of the father, his son
was the user and was paying bills, he was held to be a
consumer for the purposes of the Act [Harish Kumar V.
MPEB- (1993) 2 CPR 320 MP].
The person who is in actual use of the subscriber’s
telephone with his permission is a consumer.
Case: Spring Meadows Hospital V. Harjol Ahluwalia – AIR
1998 SC 1801.
Where a young child was taken to a private hospital
by parents and treated by the doctor, it was held that not
only the child but his parents also were ‘consumers’.
Hence, when the child suffered damage due to the
negligence of the hospital, nurse and doctor, both the
child and the parents could claim compensation under the
Act. Because of the negligence of the hospital staff
irreparable damage to the child’s brain was caused.
Consequently, the child was reduced to a vegetative state,
requiring life-long care attention. The fact that after the
child had suffered the said damage, the hospital had taken
humanitarian approach and rendered services to him
without charging any money was held to be
not a factor for denying compensation to the parents. The
award of compensation of Rs. 12.5 lakhs to the minor
child and Rs. 5 lakhs to the parents by the National
Commission was upheld.
The user of services of a free hospital has been held
not to fall in the category of consumer.
Permits: Issuance of permits is a Govt. prerogative. If there
is any discrimination, writ jurisdiction can be used to set
it right. It is not a consumer matter [Venkata Kishore Raw
Parboiled Rice Mills Ltd. V. State of A.P.- 1995 Supp (1)
SCC 303].
Employee welfare:
An employee-member of an Employees’ Provident
Fund Scheme has been held to be a consumer of the
services of the Provident Fund Commissioner. The latter
would be liable to any employee-member for any delay or
deficiency of services [RPF Commissioner V. Shiv
Kumar Joshi- (2000) 1 SCC 98].
It is suggested that this rule may be extended to ESI
dispensaries and hospitals.
After-sales services: Where a machine is purchased
for a commercial purpose, the purchaser as such may not
be a consumer, but in respect of after-sales services he
would be a consumer. Therefore, he can proceed under
the Act for defective service during the warranty period
[Kaleeswari Industries V. Mather & Platt (India) Ltd. –
(1993) 2 CPR 601 TN].
Ration card:
An applicant for a ration card is not a consumer. He
cannot complain under the Act for the denial of the card
to him [Parabchand Jain V. CEO, Nagar Palika- (1995) 2
CPJ 22 MP].
Railway passenger: a railway passenger is a consumer
[Basanta Kumar Sahoo V. Chief Commercial Manager-
(1998) 3 CPJ 286 (Ori)].
When a company or firm invited deposits

promising attractive rates of interest, it amounted to
rendering service and therefore, a deposit holder was a
consumer [G. Bhagyalaxmi V. A. V. Subbarathnamma-
(1998) 2 CPJ 588].
Section 2(8) "Consumer dispute" means a dispute

where the person against whom a complaint has
been made, denies or disputes the allegations
contained in the complaint.
Section 2 (9) "Consumer Rights" includes-

(i) the right to be protected against the marketing of
goods, products or services which are hazardous to
life and property;
(ii) the right to be informed about the quality,
quantity, potency, purity, standard and price of
goods, products or services, as the case may be, so
as to protect the consumer against unfair trade
practices;
(iii) the right to be assured, wherever possible, access to
a variety of goods, products or services at competitive
prices;
(iv) the right to be heard and to be assured that
consumer's interests will receive due consideration at
appropriate fora;
(v) the right to seek redressal against unfair trade
practice or restrictive trade practices or unscrupulous
exploitation of consumers; and
(vi) the right to consumer awareness;
It is to be noted that the definition under sec.
2(9) is not an exhaustive definition, but an inclusive
definition. Inclusive definitions are those which
mention a few of the examples when defining a
particular term. Therefore, the rights mentioned in
that sub-section are not the only rights of consumers
under the Act.
1. Right to Safety: Right to safety means right to be
protected against the marketing of goods and
services, which are hazardous to health, life and
property. It is the duty of the manufacturers of
consumer products to undertake extensive
safety and performance testing before selling
their products in the market.
Products should be properly labelled with information as
to the contents, use, precautions or warning signs and
how to prepare it, if the need arises.
2. Right to be Informed: Consumers have the right to
about products on which to base buying decisions. This
right includes the right to be informed about the quality,
quantity, potency, purity, standard and price of goods so
as to protect the consumer against unfair trade
practices. Consumers expect complete information about
the product to be purchased including its use,
ingredients or chemical contents, limitations and expiry
date. Consumers must be informed about the safety
precautions to be taken while using the product to avoid
loss or injury.
3. Right to Choose:
This deals with the right of the consumers to
choose products and services at competitive
prices, with an assurance of satisfactory quality.
The right to choose also intends to protect
competitors from each other, particularly the small
firms from the large and powerful ones. A
consumer should have the opportunity to select
the goods or services that he or she wants to
purchase.
4. Right to be Heard:
Right to be heard or right to representation is the right
to express consumer interest in the making and
execution of government policies that will have an
impact on the supply of goods and services to
consumers. It means that consumers’ interests will
receive due consideration at appropriate forums. It also
includes right to be represented in various forums
formed to consider the consumers’ welfare.
The Consumers should form non-political and non-
commercial consumer organizations which can be given
representation in various committees formed by the
Government and other bodies in matters relating to
consumers.
5. Right to Seek Redressal:
Consumers also have the right to seek legal remedies in
the appropriate forum of law. Through this right, the
consumers are assured that their complaints will receive
due attention. This right also provides for due
compensation to consumers if they have suffered a loss
or are put to jeopardy due to the fault of the supplier or
manufacturer. It also includes right to fair settlement of
the genuine grievances of the consumer. Consumers
must make complaint for their genuine grievances. Many
a times their complaint may be of small value but its
impact on the society as a whole may be very large.
They can also take the help of consumer organisations in
seeking redressal of their grievances.
6. Right to Consumer Education:
To prevent market malpractices and exploitation of
consumers, consumer awareness and education are
essentially required. Right to consumer education is
the right to acquire the knowledge and skills necessary
to be an informed consumer.
There are four important aspects of this right:
a) Informed Choice: Consumers must learn to obtain
information on goods and services, discriminate
between sources of information, understand the
psychology of selling and advertising.
b) Value Systems:
Consumer education must enable the consumer to
understand that individual consumer decisions have a
broad social impact and influence on such important
things as the overall allocation of resources within the
society.
c) Wise Decision Making: Consumers need information
to make careful, wise decisions and informed choices.
4. Catalyst for Action: Consumers must be aware of
the available avenues of consumer complaint and
redress and learn to use them for their benefit.
Therefore, right to consumer education means
the right to acquire the knowledge and skill to be
an informed consumer throughout life. Ignorance
of consumers, particularly of rural consumers, is
mainly responsible for their exploitation. They
should know their rights and must exercise them.
Only then real consumer protection can be
achieved with success.
Section 2(10) "defect" means any fault, imperfection or
shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any
law for the time being in force or under any contract,
express or implied or as is claimed by the trader in any
manner whatsoever in relation to any goods or product and
the expression "defective" shall be construed accordingly.
The defect has to be in relation to goods only,
i.e., if an item does not fall within the definition of
‘goods’, no defect can be complained therein.
Example: A sold a stolen car to B. B wanted to sue A for
defect in the title of the car. Here B cannot sue A
under the Consumer Protection Act as the defect in
title of goods would not constitute defective goods as
defined under the Act.
Case: T. T. (Pvt.) Ltd. vs. Akhil Bhartiya Grahak Panchayat
- (2000) 10 SCC 421
A Pressure Cooker burst and caused injury to the
user. It was held to be a manufacturing defect.
Section 2(11) "deficiency" means any fault, imperfection,
shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be
maintained by or under any law for the time being in
force or has been undertaken to be performed by a person
in pursuance of a contract or otherwise in relation to any
service and includes—
(i) any act of negligence or omission or commission by such
person which causes loss or injury to the consumer; and
(ii) deliberate withholding of relevant information by such
person to the consumer.
Section 2(16) "e-commerce" means buying or selling of
goods or services including digital products over digital
or electronic network;
Section 2(17) "electronic service provider" means a person
who provides technologies or processes to enable a
product seller to engage in advertising or selling goods or
services to a consumer and includes any online market
place or online auction sites.
Section 2(21) "goods" means every kind 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.
The Food Safety and Standards Act, 2006
Section 3(1) (j)-'Food' means any substance, whether
processed partially processed or unprocessed, which is
intended for human consumption and includes primary
food to the extent defined in clause (zk), genetically
modified or engineered food or food containing such
ingredients, infant food, packaged drinking water,
alcoholic drink, chewing gum, and any substance
including water used into the food during its manufacutre,
preparation or treatment but does not include any animal
feed, live animals unless they are prepared or processed
for placing on the market for human consumption,
plants, prior to harvesting, drugs and medicinal products,
cosmetics, narcotic or psychotropic sunbstances;
Provided that the Central Government may declare, by
notification in Official Gazette, any other article as food
for the purpose of this Act having regards to its use,
nature, substance or quality.
Section 2(22) "harm", in relation to a product liability,
includes—
(i) damage to any property, other than the product itself;
(ii) personal injury, illness or death;
(iii) mental agony or emotional distress attendant to personal
injury or illness or damage to property; or
(iv) any loss of consortium or services or other loss resulting
from a harm referred to in sub-clause (i) or sub-clause (ii) or
sub-clause (iii), but shall not include any harm caused to a
product itself or any damage to the property on account of
breach of warranty conditions or any commercial or
economic loss, including any direct, incidental or
consequential loss relating thereto
Section 2(23) "injury" means any harm whatever
illegally caused to any person, in body, mind or
property.
Section 2(24) "manufacturer" means a person
who—
(i) makes any goods or parts thereof; or
(ii) assembles any goods or parts thereof made by
others; or
(iii) puts or causes to be put his own mark on any
goods made by any other person;
Section 2(28) "misleading advertisement" in relation to
any product or service, means an advertisement, which--
(i) falsely describes such product or service; or
(ii) gives a false guarantee to, or is likely to mislead the
consumers as to the nature, substance, quantity or quality
of such product or service; or
(iii) conveys an express or implied representation which, if
made by the manufacturer or seller or service provider
thereof, would constitute an unfair trade practice; or
(iv) deliberately conceals important information.
Section 2(31) "person" includes—
(i) an individual;
(ii) a firm whether registered or not;
(iii) a Hindu undivided family;
(iv) a co-operative society;
(v) an association of persons whether registered under the
Societies Registration Act, 1860 or not;
(vi) any corporation, company or a body of individuals
whether incorporated or not;
(vii) any artificial juridical person, not falling within any of
the preceding sub-clauses.
Section 2(33) "product" means any article or goods or
substance or raw material or any extended cycle of such
product, which may be in gaseous, liquid, or solid state
possessing intrinsic value which is capable of delivery
either as wholly assembled or as a component part and is
produced for introduction to trade or commerce, but does
not include human tissues, blood, blood products and
organs.
Section 2(34) "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.
Section 2(36) "product manufacturer" means a person
who—
(i) makes any product or parts thereof; or
(ii) assembles parts thereof made by others; or
(iii) puts or causes to be put his own mark on any products
made by any other person; or
(iv) makes a product and sells, distributes, leases, installs,
prepares, packages, labels, markets, repairs, maintains
such product or is otherwise involved in placing such
product for commercial purpose; or
(v) designs, produces, fabricates, constructs or re-
manufactures any product before its sale; or
(vi) being a product seller of a product, is also a
manufacturer of such product
Section 2(37) "product seller", in relation to a product,
means a person who, in the course of business, imports,
sells, distributes, leases, installs, prepares, packages,
labels, markets, repairs, maintains, or otherwise is
involved in placing such product for commercial purpose
and includes—
(i) a manufacturer who is also a product seller; or
(ii) a service provider,
but does not include—
(a) a seller of immovable property, unless such person is
engaged in the sale of constructed house or in the
construction of homes or flats;
(b) a provider of professional services in any transaction in
which, the sale or use of a product is only incidental
thereto, but furnishing of opinion, skill or services being
the essence of such transaction;
(c) a person who—
(I) acts only in a financial capacity with respect to the sale
of the product;
(II) is not a manufacturer, wholesaler, distributor, retailer,
direct seller or an electronic service provider;
(III) leases a product, without having a reasonable
opportunity to inspect and discover defects in the product,
under a lease arrangement in which the selection,
possession, maintenance, and operation of the product are
controlled by a person other than the lessor.
Section 2(41) "restrictive trade practice" means a trade
practice which tends to bring about manipulation of price
or its conditions of delivery or to affect flow of supplies
in the market relating to goods or services in such a
manner as to impose on the consumers unjustified costs
or restrictions and shall include—
(i) delay beyond the period agreed to by a trader in supply
of such goods or in providing the services which has led
or is likely to lead to rise in the price;
(ii) any trade practice which requires a consumer to buy,
hire or avail of any goods or, as the case may be, services
as condition precedent for buying, hiring or availing of
other goods or services.
Section (42) "service" means service of any description
which is made available to potential users and includes,
but not limited to, the provision of facilities in connection
with 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, but does not include the rendering of any
service free of charge or under a contract of personal
service.
Section 2(46) "unfair contract" means a contract between a
manufacturer or trader or service provider on one hand,
and a consumer on the other, having such terms which
cause significant change in the rights of such consumer,
including the following, namely:—
(i) requiring manifestly excessive security deposits to be
given by a consumer for the performance of contractual
obligations; or
(ii) imposing any penalty on the consumer, for the breach of
contract thereof which is wholly disproportionate to the
loss occurred due to such breach to the other party to the
contract; or
(iii) refusing to accept early repayment of debts on payment
of applicable penalty; or
(iv) entitling a party to the contract to terminate such
contract unilaterally, without reasonable cause; or
(v) permitting or has the effect of permitting one party to
assign the contract to the detriment of the other party who
is a consumer, without his consent; or
(vi) imposing on the consumer any unreasonable charge,
obligation or condition which puts such consumer to
disadvantage;
Section 2(47) "unfair trade practice" means a trade practice
which, for the purpose of promoting the sale, use or supply
of any goods or for the provision of any service, adopts any
unfair method or unfair or deceptive practice including any
of the following practices, namely:—
(i) making any statement, whether orally or in writing or by
visible representation including by means of electronic
record, which—
(a) falsely represents that the goods are of a particular
standard, quality, quantity, grade, composition, style or
model;
(b) falsely represents that the services are of a particular
standard, quality or grade;
(c) falsely represents any re-built, second-hand, renovated,
reconditioned or old goods as new goods;
(d) represents that the goods or services have sponsorship,
approval, performance, characteristics, accessories, uses
or benefits which such goods or services do not have;
(e) represents that the seller or the supplier has a
sponsorship or approval or affiliation which such seller or
supplier does not have;
(f) makes a false or misleading representation concerning
the need for, or the usefulness of, any goods or services;
(g) 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:
Provided that where a defence is raised to the effect that
such warranty or guarantee is based on adequate or proper
test, the burden of proof of such defence shall lie on the
person raising such defence;
(h) makes to the public a representation in a form that
purports to be—
(A) a warranty or guarantee of a product or of any goods or
services; or
(B) a promise to replace, maintain or repair an article or any
part thereof or to repeat or continue a service until it has
achieved a specified result,
if such purported warranty or guarantee or promise is
materially misleading or if there is no reasonable prospect
that such warranty, guarantee or promise will be carried
out
(i) materially misleads the public concerning the price at
which a product or like products or goods or services,
have been or are, ordinarily sold or provided, and, for this
purpose, a representation as to price shall be deemed to
refer to the price at which the product or goods or
services has or have been sold by sellers or provided by
suppliers generally in the relevant market unless it is
clearly specified to be the price at which the product has
been sold or services have been provided by the person
by whom or on whose behalf the representation is made;
(j) gives false or misleading facts disparaging the goods,
services or trade of another person.
Explanation.—
For the purposes of this sub-clause, a statement that is,—
(A) expressed on an article offered or displayed for sale, or
on its wrapper or container; or
(B) expressed on anything attached to, inserted in, or
accompanying, an article offered or displayed for sale, or
on anything on which the article is mounted for display
or sale; or
(C) contained in or on anything that is sold, sent,
delivered, transmitted or in any other manner
whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public
by, and only by, the person who had caused the
statement to be so expressed, made or contained
(ii) permitting the publication of any advertisement,
whether in any newspaper or otherwise, including by
way of electronic record, for the sale or supply at a
bargain price of goods or services that are not
intended to be offered for sale or supply at the
bargain price, or for a period that is, and in quantities
that are, reasonable, having regard to the nature of
the market in which the business is carried on, the
nature and size of business, and the nature of the
advertisement.
Explanation. —For the purpose of this sub-clause,
"bargain price" means,—
(A) a price that is stated in any advertisement to be a
bargain price, by reference to an ordinary price or
otherwise; or
(B) a price that a person who reads, hears or sees the
advertisement, would reasonably understand to be a
bargain price having regard to the prices at which
the product advertised or like products are ordinarily
sold;
(iii) permitting—
(a) the offering of gifts, prizes or other items with the
intention of not providing them as offered or
creating impression that something is being given or
offered free of charge when it is fully or partly
covered by the amount charged, in the transaction
as a whole;
(b) the conduct of any contest, lottery, game of chance or

skill, for the purpose of promoting, directly or indirectly,
the sale, use or supply of any product or any business
interest, except such contest, lottery, game of chance or
skill as may be prescribed;
(c) withholding from the participants of any scheme
offering gifts, prizes or other items free of charge on its
closure, the information about final results of the
scheme.
Explanation. —For the purpose of this sub-clause, the
participants of a scheme shall be deemed to have been
informed of the final results of the scheme where such
results are within a reasonable time published,
prominently in the same newspaper in which the
scheme was originally advertised;
(iv) permitting the sale or supply of goods intended
to be used, or are of a kind likely to be used by
consumers, knowing or having reason to believe
that the goods do not comply with the standards
prescribed by the competent authority relating to
performance, composition, contents, design,
constructions, finishing or packaging as are
necessary to prevent or reduce the risk of injury to
the person using the goods;
(v) permitting the hoarding or destruction of goods, or
refusal to sell the goods or to make them available for
sale or to provide any service, if such hoarding or
destruction or refusal raises or tends to raise or is
intended to raise, the cost of those or other similar
goods or services;
(vi) manufacturing of spurious goods or offering such
goods for sale or adopting deceptive practices in the
provision of services;
(vii) not issuing bill or cash memo or receipt for the goods
sold or services rendered in such manner as may be
prescribed;
(viii) refusing, after selling goods or rendering
services, to take back or withdraw defective goods
or to withdraw or discontinue deficient services and
to refund the consideration thereof, if paid, within
the period stipulated in the bill or cash memo or
receipt or in the absence of such stipulation, within
a period of thirty days;
(ix) disclosing to other person any personal
information given in confidence by the consumer
unless such disclosure is made in accordance with
the provisions of any law for the time being in force
THE C. P. ACT 2019
CONSUMER PROTECTION COUNCILS [Ses. 3-9]
Section 3. (1) The Central Government shall, by
notification, establish with effect from such date as it
may specify in that notification, the Central Consumer
Protection Council to be known as the Central
Council.
(2) The Central Council shall be an advisory council and
consist of the following members, namely:—
(a) the Minister-in-charge of the Department of
Consumer Affairs in the Central Government, who shall
be the Chairperson; and
(b) such number of other official or non-official members
representing such interests as may be prescribed
THE C. P. ACT 2019
Section 4. 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 Chairperson may think fit and shall observe such
procedure in regard to the transaction of its business as
may be prescribed.
Section 5. Objects of Central Council-

The objects of the Central Council shall be to render advice
on promotion and protection of the consumers' rights
under this Act
THE C. P. ACT 2019
Section 6. State Consumer Protection Councils-
(1) Every State Government shall, by notification,
establish with effect from such date as it may specify
in such notification, a State Consumer Protection
Council for such State to be known as the State
Council.
(2) The State Council shall be an advisory council and
(a) the Minister-in-charge of Consumer Affairs in the
State Government who shall be the Chairperson;
(b) such number of other official or non-official members
representing such interests as may be prescribed;
(c) such number of other official or non-official
members, not exceeding ten, as may be nominated by
the Central Government.
THE C. P. ACT 2019
(3) The State Council shall meet as and when necessary
but not less than two meetings shall be held every
year.
(4) The State Council shall meet at such time and place
as the Chairperson may think fit and shall observe
such procedure in regard to the transaction of its
business, as may be prescribed.
Section 7. Objects of State Council-
The objects of every State Council shall be to
render advice on promotion and protection of
consumer rights under this Act within the State.
THE C. P. ACT 2019
Section 8. District Consumer Protection Council-
(1) The State Government shall, by notification, establish
for every District with effect from such date as it may
specify in such notification, a District Consumer
Protection Council to be known as the District
Council.
(2) The District Council shall be an advisory council and
(a) the Collector of the district (by whatever name
called), who shall be the Chairperson; and
(b) such number of other official and non-official
members representing such interests as may be
prescribed.
THE C. P. ACT 2019
(3) The District Council shall meet as and when
necessary but not less than two meetings shall be held
every year.
(4) The District Council shall meet at such time and
place within the district as the Chairperson may think
fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed.
Section 9. Objects of District Council-

The objects of every District Council shall be to render
advice on promotion and protection of consumer
rights under this Act within the district.

CONSUMER PROTECTION - 2019 - Preliminary, Council

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CONSUMER PROTECTION - 2019 - Preliminary, Council

Uploaded by

Copyright:

Available Formats

One of the most important milestones in the

THE CONSUMER PROTECTION ACT, 2019

Section 2(7) "Consumer" means any person who—

Where the electricity connection was taken by the

When a company or firm invited deposits

Section 2(8) "Consumer dispute" means a dispute

Section 2 (9) "Consumer Rights" includes-

(b) the conduct of any contest, lottery, game of chance or

Section 4. Procedure for meetings of Central Council-

Section 5. Objects of Central Council-

Section 9. Objects of District Council-

You might also like