Presentation on the Consumer Protection Act, 2019 (New) with relevant examples and case studies.

1. CONSUMERISM
&
THE CONSUMER PROTECTION ACT, 2019
DR. MANGALSINGH S. BISEN
(Ex-Faculty GCBS, Royal University of Bhutan, Bhutan)
Assistant Professor
Narayanrao Chavan Law College, Nanded

2. CONSUMERISM
• Consumerism is a social and economic order that encourages the
acquisition of goods and services.
• Industrial revolution -> mass production led to overproduction.
The supply of goods would grow beyond consumer demand, and
so manufacturers turned to planned obsolescence and
advertising to manipulate consumer spending.

3. GENERAL IDEA OF CONSUMERISM
• Free flow of goods and services at the disposal of Consumers.
• In an abstract sense, it is the consideration that the free choice of
consumers should strongly orient the choice by manufacturers.
• Informed decision makers, full information, fair economic
practice, freedom of choice etc.
• The Consumer Movement is the social movement which refers to
all actions and all entities within the marketplace which give
consideration to the consumer. Support consumers' interests.

4. • Jago Grahak Jago is a consumer awareness program launched by
the Department of Food under the government of India.

5. ENACTMENTS RELATING TO
CONSUMER PROTECTION
A number of laws have been enacted in India to safeguard the
interest of consumers and protect them from unscrupulous and unethical
practices of the businessmen. Some of these Acts are as follows:
(i) Drug Control Act, 1950
(ii) Prevention of Food Adulteration Act, 1954
(iii) Essential Commodities Act, 1955
(iv) The Standards of Weights and Measures Act, 1956
(v) Monopolies and Restrictive Trade Practices Act, 1969
(vi) Prevention of Black-marketing and Maintenance of Essential Supplies
Act, 1980
(vii) Agricultural Products (Grading and Marketing) Act, 1937
(iii) Bureau of Indian Standards Act, 1986

6. Provisions CPA, 1986 CPA, 2019
Regulator No separate regulator Central Consumer Protection Authority
(CCPA) is the Central Regulator
Consumer
court
Complaint to be filed
in a place where the
seller’s office was
located
Complaint to be filed in a place where
either of the party resides / has place of
business / works for gain
Mediation No provision Courts can refer settlement through
mediation
Product
liability
No provision Consumers can seek compensation for any
harm caused by a product or service
E-Commerce No provision Provisions of direct sales extended to e-
commerce transactions
Video
conferencing
No provision Consumer can seek hearing through video
conference
COMPARISON : OLD & NEW CPA

7. THE CONSUMER PROTECTION ACT, 2019
(NEW)
Note: Herein after called as CPA

8. INTRODUCTION
• Replaces the legacy of the old Consumer Protection Act, 1986
• Beginning of a new era of consumer rights in India in sync with new-
age consumer expectations.
• To meet the challenges of a rapidly growing, sophisticated and inter-
dependent market for goods and services
• To provide enhanced protection to the consumers by taking into
consideration:
a. the rapid growing e-commerce industry and
b. the modern methods of providing goods and services through
online sales, tele-shopping, direct selling and multi-level
marketing

9. PURPOSE OF CPA
• To protect the interest of Consumers
• To establish authorities to protect Consumers
• Timely and effective administration
• Settlement of consumer disputes
• To stop consumer exploitation

10. KEY FEATURES
 Establishment of Central Consumer Protection Authority ( CCPA )
 The District Forum is renamed as District Commission
 6 New Rights to Consumers
 E - Commerce Rules & Regulations
 E - filling of Complaints
 Penalty for Misleading Advertisement
 Enhancement of Pecuniary Jurisdiction
 Parties can be allowed to settle the disputes through mediation
 A Consumer can file a case wherever he resides
 The limitation period for filing of appeals to the State Commission has been
increased from 30 days to 45 days

11. FRAMEWORK OF CPA
• The Act extends to whole of India
• The Act came into force on 20th July, 2020
• The Act applies to all goods and services unless expressly
exempted by Central Government by notification

12. CHAPTERISATION
1. Preliminary
2. Consumer
Protection
Council
3. Central
Consumer
Protection
Authority
4. Consumer
Disputes
Redressal
Commission
5. Mediation
6. Product
Liability
7. Offences &
Penalties
8. Miscellaneous

13. DEFINITIONS

14. CONSUMER [SEC. 2(7)]
(i) • buys any goods for a consideration
• has been paid or promised or partly paid and partly promised,
• includes any user of such goods other than the person who buys such goods
• 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
• has been paid or promised or partly paid and partly promised,
• includes any beneficiary of such service other than the person who hires or avails
of the services
• but does not include a person who avails of such service for any commercial
purpose.
Explanation (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" includes
offline or online transactions through electronic means or by teleshopping or direct
selling or multi-level marketing;

15. • The Supreme Court held that whether goods bought by a person are for
a ‘commercial purpose’ is a question of fact and it should be decided by
taking into account all the facts and circumstances in each case.
• The Supreme Court further observed that if the goods have been used
by the purchaser himself for commercial use then he would be
considered to be a consumer under this Act but if that person does not
use the good himself and engages some other person to operate that
particular good then such person will not come under the ambit of the
definition of ‘consumer’.
Laxmi
Engineering
Works
P.S.G
Industrial
Institute

16. • Facts: An ultrasound scanner Model 2i2 went out of order after
installation and needed to be replaced. Despite the repeated
request to the respondent company they did not replace it and
contested that the petitioner is not a consumer under the
consumer protection Act 1986.
• Held: The National Commission held that if a machine develops
defect within warranty period the purchaser of the machine
would be consumer even if has been purchased for the
commercial purpose.
Dr. Vijay
Prakash Goyal The Network
Ltd.

17. COMPLAINANT
[SEC. 2(5)]
A consumer or
Any voluntary consumer association registered under
any law for the time being in force or
The Central Government or any State Government or
The Central Authority or
1 or more consumers, where there are numerous
consumers having the same interest or
In case of death of a consumer, his legal heir or legal
representative or
In case of a consumer being a minor, his parent or
legal guardian

18. DEFECT
[SEC. 2(10)]
Any fault, imperfection or shortcoming
in the quality, quantity, potency, purity, standard
which is required to be maintained by or under any law
for the time being in force or
under any contract, expressed / implied or
as is claimed by the trader in any manner whatsoever
in relation to any goods / product

19. DEFICIENCY
IN
SERVICE
[SEC. 11]
Any fault, imperfection, shortcoming / inadequacy in
the quality, nature and manner of performance which
is required to be maintained by / under any law for
the time being in force / in pursuance of a contract /
otherwise in relation to any service and includes-
- Any act of negligence / omission / commission by
such person which causes loss / injury to the
consumer and
- Deliberate withholding of relevant information by
such person to the consumer

20. • Delay in insurance claim is deficiency in service.
• Call drops is deficiency in service.
• Damage to courier amounts to deficiency in service.
• Lack of clean & hygienic condition in a hotel is DiS.

21. E-COMMERCE
[SEC. 2(16)]
Means buying or selling of goods or services
including digital products over digital / electronic
network.
ELECTRONIC
SERVICE
PROVIDER
[SEC. 2(17)]
Means a person who provides technologies /
processes to enable a product seller to engage in
advertising / selling goods or services to a consumer
and includes any online market place / online
auction sites

22. UNFAIR CONTRACT
[SEC. 2(46)]
UNFAIR
CONTRACT
Between a manufacturer/trader/service provider & Consumer
Terms cause significant change in the rights of such consumer
Examples:
- Excessive security deposits
- Imposing any penalty on breach of contract
- Refusing to accept early repayment of debts
- Terminate such contract unilaterally
- Assign the contract without consent
- Unreasonable charge, obligation or condition

23. UNFAIR TRADE PRACTICE
[SEC. 2(47)]
Means a trade practice which, for the purpose of
promoting the sale, use / supply of any goods / for the
provision of any service, adopts any unfair method /
unfair or deceptive practice including any of the
following practices, namely-
- Making any statement, whether orally / in writing /
by visible representation including by means of
electronic record, which is actually a false statement /
misleading representations / misleading facts about
such goods / services.
- Publication of any advertisement, whether in any
newspaper / otherwise, including by way of electronic
record, for the sale / supply at a bargain price of goods
/ services that are not intended to be offered for sale /
supply at the bargain price.

24. RESTRICTIVE
TRADE
PRACTICE
[SEC. 2(41)]
Manipulation of :
- price or
- delivery or
- flow of supplies in the market or
- services
In such a manner as to impose on the
consumers unjustified costs or restrictions, Includes
(i) delay beyond the period agreed to by a
trader/service provider likely to lead to rise in
the price;
(ii) any trade practice which requires a consumer to
buy/avail service before acquiring actual
goods/service

25. SERVICE [SEC. 2(42)]
•Service of any description made available to potential
users
Means
•Banking, financing, insurance, transport, processing,
supply of electrical or other energy, telecom
•Boarding or lodging or both, housing construction,
•Entertainment, amusement, purveying of news or
other information
Includes but not
limited to
•Rendering of any service free of charge; or
•Under a contract of personal service
Excludes

26. 6 NEW RIGHTS FOR CONSUMERS
 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.
 The right to be protected against the marketing of goods, products or services which
are hazardous to life and property.
 The right to be assured, wherever possible, access to a variety of goods, products or
services at competitive prices.
 The right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate forum
 The right to seek redressal against unfair trade practice or restrictive trade practices
or unscrupulous exploitation of consumers
 The right to consumer awareness

27. https://jagograhakjago.gov.in/

28. COMPLAINT
(UNDER CPA)

29. INSTANCES OF
CONSUMER EXPLOITATIONS
The most common business malpractices leading to consumer
exploitation are given below.
 Sale of adulterated goods i.e., adding something inferior to the
product being sold.
 Sale of spurious goods i.e., selling something of little value instead of
the real product.
 Sale of sub-standard goods i.e., sale of goods which do not confirm to
prescribed quality standards.
 Sale of duplicate goods.
 Use of false weights and measures leading to underweight.
 Hoarding and black-marketing leading to scarcity and rise in price.
 Charging more than the Maximum Retail Price (MRP) fixed for the
product.
 Supply of defective goods.
 Misleading advertisements i.e., advertisements falsely claiming a
product or service to be of superior quality, grade or standard.

30. COMPLAINT
[SEC. 2(6)]
Any allegation in writing, made by a complainant for
obtaining any relief provided by / under this Act,
that-
- An unfair contract / unfair trade practice / a
restrictive trade practice has been adopted by
any trader or service provider
- The goods bought by him / agreed to be bought by
him suffer from one / more defects
- The services hired / availed of / agreed to be hired /
availed of by him suffer from any deficiency

31. • Telecom major Bharti Airtel was directed by a consumer
forum to pay Rs 38,500 to a Delhi-based couple for not
providing them Internet TV and broadband connection even
after receiving the payment.

32. Cont… A trader or a service provider, as the case may be, has
charged for the goods / for the services mentioned in
the complaint, a price in excess of the price-
- fixed by or under any law for the time being in
force or
- displayed on the goods or any package containing
such goods or
- displayed on the price list exhibited by him by or
under any law for the time being in force or
- Agreed between the parties

33. Is a cooling charge charged on cold drinks over MRP legal?

34. Cont… The goods, which are hazardous to life and safety when
used, are being offered for sale to the public-
- 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
- where the trader knows that the goods so offered are
unsafe to the public
The services which are hazardous / 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
Claim for product liability action lies against the
product manufacturer, product seller / product service
provider

35. • Various petitions were filed in Delhi and Madras High Court(s)
seeking a ban on all e-pharmacy operations, due to public safety.
Later, the Madras High Court pronounced a decision for
temporarily banning the online sale of drug and also directed the
government to notify the regulations by January 31, 2019 on a
petition filed by Tamil Nadu Chemists and Druggists Association,
which was later extended by July 31, 2019.

36. SUMMARY…
• Sec 2 of the Consumer Protection Act, 2019 defines a complaint as any
written allegation made by a consumer to obtain relief under the Consumer
Protection Act in the case of -
 an unfair contract
 unfair trade practice
 restrictive trade practice
 defective goods
 deficiency of services
 excessive price
 hazardous goods or service
• A Consumer Complaint can be made either in a written manner or in
electronic mode

37. WHERE CAN A COMPLAINT BE FILED?
Appeal to HC/SC
National Consumer Forum
[10 Cr. +]
State Consumer Forum
[1 Cr. to 10 Cr.]
District Consumer Forum
[Upto 1Cr.]

38. REMEDIES WHICH CAN
BE CLAIMED IN A COMPLAINT
 Removal of defect
 Replacement of goods
 Refund of price paid
 Compensation for loss (physical /others) (due to negligence/defective
goods)
 Removal of deficiency in service
 To discontinue unfair/restrictive trade practice
 Stop sale of hazardous goods
 For payment of costs

39. FEE FOR COMPLAINTS
CASE VALUE FEES
Upto Rs. 5 Lakhs No Fees
Rs. 5 Lakh – 10 Lakh Rs. 200/-
Exceeding Rs. 10 Lakhs Rs. 400/-
A complainant is not required to pay any fee for filing an appeal in the
State Commission or National Commission.

40. REVISED PECUNIARY LIMITS
PARTICULARS VALUE
District Commission
(Can take Complaints if value of
goods & services paid)
Does not Exceed Rs.1,00,00,000
(1 Cr.)
State Commission
(Can take Complaints if value of
goods & services paid)
Rs.1,00,00,000 –
Rs.10,00,00,000
(1 Cr. To 10 Cr.)
National Commission
(Can take Complaints if value of
goods & services paid)
Rs.10,00,00,000 and Above
(10 Cr.)

41. THANK YOU…