THE CONSUMER PROTECTION ACT, 1986
INTRODUCTION
STATEMENT OF OBJECTS AND REASONS
The Consumer Protection Bill, 1986 seeks to provide for better
protection of the interests of consumers and for the purpose, to make provision
for the establishment of Consumer councils and other authorities for the
settlement of consumer disputes and for matter connected therewith.
2. It seeks, inter alia, to promote and protect the rights
of consumers such as-
(a) the right to be protected
against marketing of goods which are hazardous to life and property;
(b) the right to be informed
about the quality, quantity, potency, purity, standard and price of goods to
protect the consumer against unfair trade practices;
(c) the right to be
assured, wherever possible, access to an authority of goods at competitive
prices;
(d) the right to be heard and
to be assured that consumers interests will receive due consideration at
appropriate forums;
(e) the right to seek redressal
against unfair trade practices or unscrupulous exploitation of consumers; and
(f) right to consumer
education.
3. These objects are sought to be promoted and protected by the Consumer
Protection Council to be established at the Central and State level.
4. To provide speedy and simple redressal to consumer disputes, a
quasi-judicial machinery is sought to be setup at the district, State and
Central levels. These quasi-judicial bodies will observe the principles of
natural justice and have been empowered to give relief of a specific nature and
to award, wherever appropriate, compensation to consumers. Penalties for
noncompliance of the orders given by the quasi-judicial bodies have also been
provided.
5. The Bill seeks to achieve the above objects.
ACT 68 OF 1986
The Consumer Protection Bill, 1986 was passed by both the Houses of
Parliament and it received the assent of the President on 24th December,
1986. It came on the Statutes Book as THE CONSUMER PROTECTION ACT, 1986 (68 of
1986).
LIST OF AMENDING ACTS
1. The Consumer Protection (Amendment) Act, 1991
(34 of 1991) (w.r.e.f. 15-6-1991).
2. The Consumer Protection (Amendment) Act, 1993
(50 of 1993) (w.r.e.f. 18-6-1993).
3. The Consumer Protection (Amendment) Act, 2002
(62 of 2002) (w.r.e.f. 15-3-2003).
THE CONSUMER PROTECTION ACT, 2019
INTRODUCTION
The Consumer
Protection Bill, 2019 has been passed by the Lok Sabha on Jul 30, 2019, and
Rajya Sabha on Aug 06, 2019. This bill was introduced in the parliament by the
Minister of Consumer Affairs, Food and Public Distribution, Mr. Ram Vilas
Paswan.
The Parliament
passed the Consumer Protection Bill, 2019 on 06.08.2019 to replace the Consumer
Protection Act, 1986 ("1986 Act"). The President of India gave its
assent to the Consumer Protection Act, 2019 ("2019 Act") on
09.08.2019 and the same will come into force on the date it is notified by the
Central Government. The 2019 Act has been enacted for the purpose of providing
timely and effective administration and settlement of consumer disputes and
related matters.
The
Government instead of bringing an amendment in the 1986 Act, enacted a new Act
altogether so as to provide enhanced protection to the consumers taking into
consideration the booming e-commerce industry and the modern methods of
providing goods and services such as online sales, tele-shopping, direct
selling and multi-level marketing in addition to the traditional methods.
The
2019 Act has brought in some major changes and provides for
more protection to the consumers in parametria to the earlier 1986 Act which
can be seen from the comprehensive definition provided for the term 'Consumer'
and 'Unfair Trade Practice'. The 2019 Act expands the scope of the definition
of Consumer so as to include the consumers involved in online transactions and
it now squarely covers the E-commerce businesses within its ambit. The 2019 Act
has also widened the definition of Unfair Trade Practices as compared to the
1986 Act which now includes within its ambit online misleading advertisements;
the practice of not issuing bill/memo for the goods and services; failing to take
back defective goods or deactivate defective services and refund the amount
within the stipulated time mentioned in the bill or memo or within 30 days in
the absence of such stipulation; and disclosing personal information of a
consumer unless such disclosure is in accordance with law.
The
2019 Act has also introduced the concept of 'unfair contract' which
includes those contracts, which favour the manufacturers or service providers
and are against the interest of the consumers such as contracts requiring
manifestly excessive security deposits to be given by a consumer for the
performance of contractual obligations; imposing any penalty on the consumer
for a breach of the contract, which is wholly disproportionate to the loss
occurred due to such breach to the other party to the contract; refusing to
accept early repayment of debts on payment of applicable penalty; entitlement
of a party to the contract to terminate such contract unilaterally, without
reasonable cause; 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; and imposing on the consumer any unreasonable charge,
obligation or condition which puts such a consumer to any disadvantage. Such unfair
consumer contracts are now covered under the 2019 Act and a complaint in this
regard can now be filed by a consumer. This would help to keep a check on
businesses including banks and e-commerce sites that take advantage of their
dominance in the market and mandatorily require the helpless consumers to sign
such unfair contracts and accept their standard terms before selling them goods
or providing services.
One
of the most significant additions to the 2019 Act is the proposal to establish Central Consumer Protection Authority ("CCPA")
so as to regulate, protect and enforce the interest of the consumers and
matters related to unfair trade practices. The CCPA has been provided with vast
powers to inquire, investigate and take action against violations of the 2019
Act. Another significant power the CCPA has been showered with, is the power to
take action and impose penalty against misleading and false advertisement as
well as against any endorser of such advertisement, which means the CCPA can
now initiate action against the celebrities who have endorsed such misleading
and false advertisement provided such celebrities failed to carry out any due
diligence before participating in such advertisements. The CCPA may impose a
penalty of up to Rs.10 Lakhs for first violation and up to Rs.50 Lakhs on every
subsequent violation on a manufacturer or an endorser, for a false or
misleading advertisement. In addition to this, such manufacturer or endorser
may be sentenced to imprisonment for up to two years. The CCPA has also been
granted the authority to initiate Suo-moto proceedings against violators; pass
directions to recall products or discontinue services and provide refund to
consumers; and file class action suits on behalf of multiple consumers which
makes it an effective tool to curb mass violation of consumer interest.
Another
major introduction in the 2019 Act is the concept of Product Liability which
covers within its ambit the product manufacturer, product service provider and
product seller, for any claim for compensation. The term 'product liability' is
defined by the 2019 Act as the responsibility of a product manufacturer or
product seller, of any product or service, related to the product to compensate
for any harm caused to a consumer by such defective product manufactured or
sold or by deficiency in services relating to the product. Also, since the
product seller has now been defined to include a person who is involved in
placing the product for a commercial purpose and as such would include
e-commerce platforms as well. Therefore, the ground commonly taken by
E-commerce websites that they merely act as 'platforms' or 'aggregators' will
now not be tenable before the court anymore. There are increased liability
risks for manufacturers as compared to product service providers and product
sellers, considering that under the 2019 Act, manufacturers will be liable in
product liability action even where they successfully prove that they were not
negligent or fraudulent in making the express warranty of a product. However,
certain exceptions have been provided under the 2019 Act from liability claims,
such as, that the product seller will not be liable where the product has been
misused, altered or modified.
What is the Meaning of Consumer Protection Act, 2019?
Consumer
Protection Act, 2019 is a law to protect the interests of the consumers. This
act was inevitable to resolve a large number of pending consumer complaints in
consumer courts across the country. It has ways and means to solve the consumer
grievances speedily.
What is the aim of the Consumer Protection Act?
The basic aim of
the Consumer Protection Act, 2019 to save the rights of the consumers by
establishing authorities for timely and effective administration and settlement
of consumers’ disputes.
What is Definition of consumer
As per the act; a
person is called a consumer who avails the services and buys any good for
self-use. Worth to mention that if a person buys any good and avail any service
for resale or commercial purpose, is not considered a consumer. This definition
covers all types of transactions i.e. online and offline.
Key features of the Consumer Protection Act, 2019
1. Establishment
of the Central Consumer Protection Authority (CCPA):
The act has the
provision of the Establishment of the CCPA which will protect, promote and
enforce the rights of consumers. The CCPA will regulate cases related to unfair
trade practices, misleading advertisements, and violation of consumer rights.
The CCPA will have
the right to impose a penalty on the violators and passing orders to recall
goods or withdraw services, discontinuation of the unfair trade practices and
reimbursement of the price paid by the consumers.
The Central
Consumer Protection Authority will have an investigation wing to enquire and
investigate such violations. The CCPA will be headed by the Director-General.
2. Rights of consumers:
The act provides 6 rights to the consumers;
i. To have
information about the quantity, quality, purity, potency, price, and standard
of goods or services.
ii. To be
protected from hazardous goods and services.
iii. To be
protected from unfair or restrictive trade practices.
iv. To have a
variety of goods or services at competitive prices
3. Prohibition and penalty for a misleading advertisement:
The Central Consumer
Protection Authority (CCPA) will have the power to impose fines on the endorser
or manufacturer up to 2-year imprisonment for misleading or false advertisement
(Like Laxmi Dhan Warsha Yantra).
Worth to mention that repeated offense, may attract a fine of Rs
50 lakh and imprisonment of up to 5 years.
4. Consumer Disputes Redressal Commission:
The act has the
provision of the establishment of the Consumer Disputes Redressal Commissions
(CDRCs) at the national, state and district levels.
The CDRCs will
entertain complaints related to;
i. Overcharging
or deceptive charging
ii. Unfair or
restrictive trade practices
iii. Sale of
hazardous goods and services which may be hazardous to life.
iv. Sale of defective goods or services
Jurisdiction under the Consumer Protection Act, 2019
The act has
defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The
National CDRC will hear complaints worth more than Rs. 10 crores. The State
CDRC will hear complaints when the value is more than Rs 1 crore but less than
Rs 10 crore. While the District CDRC will entertain complaints when the value
of goods or service is up to Rs 1 crore.
As far as the
Consumer Redressal Forums are concerned, certain key changes have been brought
by the 2019 Act such as: -
- Territorial Jurisdiction – The
2019 Act now provides an added advantage to the consumers by providing for
filing of complaints where the complainant resides or personally works for
gain as against the 1986 Act which only provides for filing of complaint
where the opposite party resides or carry on business. This would help in
removing the difficulties faced by the consumers in
seeking redressal of their grievances against businesses who may not have
an office or branch in their state.
- Pecuniary
Jurisdiction – The 2019 Act also changed the pecuniary
jurisdiction for the District, State and National Commissions,
respectively. The pecuniary limit for the District Commission has been
increased to up to Rs.1 Crore from up to Rs.20 Lakhs; for State Commission
it has been increased to up to Rs.10 Crores from up to Rs.1 Crore; and for
National Commission the pecuniary jurisdiction has been increased to over
and above Rs.10 Crores as against Rs.1 Crore in the 1986 Act. In addition
to this, the 2019 Act has also changed the manner for determining the
pecuniary jurisdiction for filing the Complaint. Now the pecuniary
jurisdiction will be determined on the basis of the value of goods or
services paid as consideration as against the 1986 Act wherein, the
pecuniary jurisdiction was determined as per the value of goods and
services as well as compensation claimed. This would help in doing away
the practice of inflating the compensation claimed so as to bring the
complaint within the jurisdiction of State or National Commission.
- Alternate Dispute Resolution – Another
provision introduced by the 2019 Act to ensure speedy resolution of
disputes is to provide for referring the disputes to mediation. As per the
2019 Act, the Consumer Forum shall refer the matter to mediation on written
consent of both the parties. For this purpose, the 2019 Act also provides
for establishment of a consumer mediation cell by the respective State
Governments in each District Commission and State Commission as well as at
the National Commission by the Central Government.
- E-Complaints - The
2019 Act also provides for filing of Complaints before the District Forums
electronically in accordance with the rules which are yet to be prescribed
by the Government.
Conclusively, the
Consumer Protection Act, 2019 when compared with the 1986 Act shows that it
provides for greater protection of consumer interests taking into consideration
the current age of digitization. The 2019 Act also deals with the technological
advancements in the industry, provides for easier filing of complaints and also
imposes strict liability on businesses including endorsers for violating the
interest of the consumers. However, the test of time will prove the fate of the
2019 Act as and when it is notified by the Central Government, which,
prima-facie, appears to be much more consumer-friendly than the 1986 Act and
also includes the current industry trends of e-commerce.
Three Tire System (Redressal Grievance System)
The Act lays down
certain provisions regarding the definition of consumer, various consumer
protection councils, and provisions in connection with various consumer
redressal agencies in India as well as other miscellaneous provisions. Among
this, provisions relating to consumer redressal agencies demand a lot of attention
in the present Indian scenario. Many people are still not aware that there are
such agencies working in favor of consumers in every district. Due to this
reason, many of them are not getting proper solutions for their problems as
consumers. Chapter III of the Act provides for the implementation of redressal
agencies. Section 9 of the Act provides for ‘establishment of consumer dispute
redressal agencies’ which include:
· A District forum
established by the State Government in each district of the State by its
notification.
· A State Commission
established by the State Government in each state by its notification and
· A National
Commission established by Central Government by notification
District
Forum Each
District Forum shall consist of a person who is or has been qualified as a
District judge, as the President. There must be two other persons who are not
less than thirty-five years of age and also possesses a degree from a
recognized university. The persons must have adequate knowledge in the field of
economics, commerce, industry, public affairs, and administration. The district
forum must have the jurisdiction to entertain such complaints where the value
of goods or services and the compensation, does not exceed Rs. twenty lakhs.
The need for district forums for consumer redressal is that majority of the
people who face any consumer rights violation are unable to file a complaint in
a state or national forum because such f have to look at matters concerning
various other district forums which result in a large number of pending cases.
District forums are also enabled with a faster way of dispensing consumer
redressal as the amount of claim is pretty less than that of State/National
redressal forums which enables normal people to seek a solution for their problems
State
Commission Each
State Commission shall consist of a person who is or has been a judge of High
Court as its president. The Commission also consists of not less than two
members, who are above thirty-five years of age and also possesses a degree from
a recognized university. The persons must have adequate knowledge in the field
of economics, commerce, industry, public affairs, and administration. The Act
also states that not less than fifty percent of the members shall be from
amongst the persons having a judicial background. The State Commission has a
jurisdiction to entertain cases where the value of goods or services or the
compensation claimed, if any, exceeds the number of Rs. twenty lakhs but does
not exceed Rs. one crore. It also entertains appeals against any District Forum
within the state and also looks after any pending disputes or cases decided by
any of the District forums in which the forums have exercised a jurisdiction
not vested in them by the law, or has been exercised illegally or with any
material irregularity.
National
Commission The
National Commission shall consist of a person, who is or has been a judge of
the Supreme Court, to be appointed by the Central Government, shall be the
President, provided that no appointment shall be made except after the
consultation with the Chief Justice of India. The commission shall consist of
not less than four members of its executive committee who shall not be less
than thirty-five years of age and must be graduates from a recognized university.
They must also be specialized in the areas of commerce, economics, and
administration. The jurisdiction of the commission shall extend to any case
where the compensation amount might exceed Rs. one crore and the Commission
shall also entertain appeals against State Commissions. The Commission also has
the power to check any pending disputes or cases decided by any of the
State Commissions where the State Commission has exercised a jurisdiction not
vested in it by law or it has been exercised illegally or with any material
irregularity.
Power
of redressal forums
There
are various powers for all of the redressal forums with regards to its
jurisdiction. Some of them include:
1.
Examining,
enforcing as well as summoning the witness on oath;
2.
Discovering
and producing any material evidence;
3.
Receiving
evidence on affidavit;
4.
Requesting
for report or test analysis from the concerned authorities and laboratories;
5.
Issuing
commission for examining the witness;
6.
Enforcing
any other powers prescribed by the Central or State Government.
Limitation
period
The
District, State or National Forum for consumer grievance redressal will not
entertain a case which is filed two years after the occurrence of the case
unless the party/parties can condone themselves regarding the reasons behind
the delay of filing within the specified period. Such a provision was
formulated to increase the accuracy of the function of such forums and also for
delivering fast redressal solutions to the parties.
Conclusion
From various landmark judgments by the Supreme Court in connection with cases affecting consumer rights, it will be clear that there is an increase in the number of cases involving consumer protection when compared to the past. It indicates that people are now aware of their various rights as consumers. The Act not only covers the rights of the consumers but also provides certain duties for them too. It has been stated that it is the duty of a consumer to ask clearly about various characteristics and features of the product which he/she wishes to buy. The Act does not entertain certain malicious acts such as black marketing and selling a good above the prescribed rate of MRP. The doctrine of ‘caveat venditor’ (let the seller beware) has been changed into ‘caveat emptor’ (let the purchaser beware) so that the purchaser will also be aware of various features, merits and demerits of the good as well as protection of their rights themselves. There is still an emerging need of various other redressal machineries in this field due to the increased number of pending cases as well as for implementing alternative means in the field of consumer protection. The Act may be amended in such a way that it includes certain dispute redressal mechanisms like ‘Alternative Disputes Resolution’ as a core function of the said redressal agencies dealing with consumer rights.
Consumer Protection Act, 2019 : Ushering of a New Caveat Venditor Paradigm
The
Parliament cleared the landmark Consumer Protection Bill, 2019 which aims to
protect and strengthen the rights of consumers by establishing authorities for
timely and effective administration and settlement of consumers’ grievances.
The Bill was passed by the Lok Sabha on 30th July, 2019 and was
passed by Rajya Sabha today through a voice vote. The Bill will replace the
more than three decades old Consumer Protection Act, 1986.
The
Bill, originally introduced in January 2018 in the last winter session of
Parliament, seeks to replace the three-decade-old Consumer Protection Act,
1986, which was amended thrice but is still found wanting in tackling the
challenges posed by online transactions, and tele-marketing, multi-level, and
digital marketing.
OBJECTIVES
OF NEW STATUTE
· ease
the overall process of consumer grievance redressal system
· a
better mechanism to dispose consumer complaints in a speedy manner
· help
in disposal of large number of pending cases in consumer courts across the
nation
WHY
A NEW BILL?
New
Act was a long pending legislation and all the recommendations of the Parliamentary
Standing Committee were incorporated in the bill except for five
recommendations. The pressing need the Act is formulated are as follow:-
Consumer
markets have undergone huge transformation since the enactment of the Consumer
Protection Act in 1986.
· Presence
of increasingly complex products and services in the marketplace.
· The
emergence of global supply chains, rise in international trade and the rapid
development of e-commerce.
· New
delivery systems for goods and services and have provided new 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-tailing pose new challenges to consumer protection and will require
appropriate and swift executive interventions to prevent consumer detriment.
NEW
FEATURES
SIMPLIFIED
DISPUTE RESOLUTION PROCESS
1. Pecuniary
Jurisdiction enhanced to-
· District
Commission –Up to Rs1 crore
· State
Commission- Between Rs1 crore and Rs 10 crore
· National
Commission –Above Rs.10 crore
· Deemed
admissibility after 21days of filing
· Empowerment
of Consumer Commission to enforce their orders
· Appeals
only on question of law after second stage
· Ease
of approaching consumer commission
· Filing
from place of residence
· E-filing
· Videoconferencing
for hearing
2. CENTRAL
CONSUMER PROTECTION AUTHORITY (CCPA)
While
the sector regulators essentially serve as standard setting bodies and seek to
ensure an even playing field between Government and other stakeholders. It is
an Executive Agency to provide relief to a class of consumers.
Swift executive remedies are proposed in the bill through CCPA
· The
CCPA will be empowered to promote, protect and enforce the rights of consumers
as a class
· CCPA
would make interventions to prevent consumer detriment arising from unfair
trade practices.
· The
agency can also initiate class action, including enforcing recall, refund,
return of unsafe products, goods and services and impose penalties.
· It
will regulate matters related to violation of consumer rights, unfair trade
practices, adulteration of products and misleading advertisements.
· Provisions
for deterrent punishment to check misleading advertisements and
· Authority
will have power to impose a penalty on a manufacturer or an endorser of up to
10 lakh rupees and imprisonment for up to two years for a false or misleading
advertisement.
· Presently
Consumer only have a single point of access to justice, which is time
consuming. Additional swift executive remedies are proposed in the bill through
Central Consumer Protection Authority (CCPA)
3. MEDIATION
· An
Alternate Dispute Resolution (ADR) mechanism
· Reference
to Mediation by Consumer Forum wherever scope for early settlement exists and
parties agree for it.
· Mediation
cells to be attached to Consumer Forum
· No
appeal against settlement through mediation
4. PRODUCT
LIABILITY
A
manufacturer or product service provider or product seller to be responsible to
compensate for injury or damage caused by defective product or deficiency in
services
The
Basis for product liability action will be:
· Manufacturing
defect
· Design
defect
· Deviation
from manufacturing specifications
· Not
conforming to express warranty
· Failing
to contain adequate instruction for correct use
· Services
provided are faulty, imperfect or deficient
NEW REMEDIES
FORMULATED
1. envisages
simplified dispute resolution process, has provision for Mediation and e-filing
of cases
2. exclusive
law dealing with Product Liability. A manufacturer or product service provider
or product seller will now be responsible to compensate for injury or damage
caused by defective product or deficiency in services. Product liability
provision to deter manufacturers and service providers from delivering
defective products or deficient services.
3. The
Bill also enables regulations to be notified on E-commerce and direct selling
with focus on protection of interest of consumers.
4. a
provision for class action law suit for ensuring that rights of consumers are
not infringed upon.
WAY
FORWARD:
1. Cases
should be resolved in 90 days.
2. Consumer
education and proper awareness of building measures.
3. Lessons
to be learnt:- Several countries like Canada, Estonia have devised
advertisement regulations for unhealthy foods targeted at children
4. Countries
such as the UK, Ireland and Belgium have specifically banned celebrity
endorsement of unhealthy foods. The impact of such restrictions has been
reported to be significant.
5. However,
certain issues such as the appointment of mediators to settle disputes are
contentious as this would lead to arm-twisting of the weaker parties and may
encourage corruption.
6. The
advertising code presently being followed by the Advertising Standards Council
of India (ASCI) should be given legal backing. It recommended that a provision
may be incorporated in the Bill to the effect that the misleading advertiser is
compelled to issue a corrective advertisement.
India
is likely to cross China’s population by 2024 and consumerism is growing fast.
With the passage of the Consumer Protection Bill in Parliament, consumer rights
are set to receive a massive boost. The new regulations put more responsibility
on companies for misleading advertising and faulty products.
COMPLAINTS
The Consumer Protection Act, 2019 passed on 7th August
2019, provides protection of the interests of consumers and aims at
establishing authorities to address the grievances of the consumers and settle
consumer-related disputes. The authorities will also provide timely and
effective redressals of consumer disputes. In the case of grievances, consumers
can file a complaint in the manner laid down under the Consumer Protection Act,
2019.
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 or hazardous goods or service. A complaint may also include a
written allegation to claim liability against the product manufacturer, seller
or service provider.
A consumer complaint can be filed by one
or more consumers, any registered voluntary consumer association, the Central
or State Government, heirs or legal representatives of the consumer. Where the
consumer is a minor, the complaint can be filed by his parent or legal
guardian.
v
How to File a Consumer Complaint under Consumer Protection Act, 2019?
1. A Consumer Complaint can be made
either in a written manner or in electronic mode to the District
Collector, the Commissioner of regional office or the Central Authority. In the
case of violation of consumer rights, a complainant can approach the District
Forum, State Commission or the National Commission. Also, if the complainant is
not satisfied with the order passed by a Consumer Court, he can
file an appeal in the higher Court.
2. The first step before filing a consumer
complaint is to determine the territorial and pecuniary jurisdiction
of the complaint. A consumer complaint can be filed in the
District Forum
·
if
the claims for goods and services does not exceed Rs 1 Crore.
·
For
claims where the value of goods and services is between Rs. 1 Crore to 10
Crore, the complaint can be filed in the State Commission
whereas
·
if
the value of goods and services exceeds Rs 10 Crore, a consumer complaint can
be filed in the National Commission.
3. The next step requires serving a legal or personal
notice to the opposite party. After this, a complainant can file a complaint in
the respective consumer redressal forum. The procedure for filing a consumer
complaint is similar for all the District Forums, State Commissions and
National Commissions.
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Fee for a consumer complaint under Consumer Protection
Law
As per the Consumer Protection (twenty-second amendment)
Rules, 2018, the fee structure for filing a consumer complaint has
been revised as per the following:
1. Cases of value up to Rs. 5 Lakh- No fee.
2. Cases of the value of Rs. 5 Lakh-10 Lakh- Rs 200
3. Cases of value exceeding Rs 10 Lakh- Rs 400
A complainant is not required to pay any fee for filing
an appeal in the State Commission or National Commission.
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Process to file a consumer complaint in District Forum:
1. A consumer complaint shall be made in writing to a
District Forum. The complaint can be written on a plain paper and filed by the
consumer himself or through an authorized agent.
2. The complaint should be notarised through a registered
or regular post. It should be filed within 2 years of the date on which the
dispute arose. The complainant is required to file four copies of the complaint
and additional copies for each opposite party.
3. The consumer complaint shall include the details of
the complainant and the opposite party along with the particulars of the
dispute and the relief to be sought. Also, copies of relevant documents
required to prove the claim mentioned in the complaint shall be attached to the
complaint.
4. It is not necessary to approach an advocate to file a
consumer complaint.
5. The fee shall be paid in demand draft to the
President, Consumer Disputes Redressal Forum, (name of)
district.
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Details to be included in complaint under Consumer Protection Act, 2019
A consumer complaint shall consist of the following
details:
1. Name and address of the complainant and the opposite
party.
2. The date on which the goods were purchased or services
availed, details of such goods and services and the amount paid for the same.
3. The subject of the complaint, whether it was an unfair
trade practice, defective goods were supplied, deficiency in services provided.
4. The bills and receipts of the concerned product or
service.
5. The relief to be sought under the Act.
6. Signature of the complainant or his authorized agent.
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Process to file a consumer complaint in State Commission:
1. A consumer complaint in State Forum can be filed
if the value of goods or services exceeds Rs 1 Crore but less than Rs 10 Crore.
One can also file an appeal in the State Commission against the order of the
District Forum within a period of 45 days from the date of order.
2. The application shall accompany the requisite fee in
the form of demand draft payable to the Registrar, (name of) State Commission
in the respective state.
3. To file an appeal in the State Commission, the
complainant should attach the following documents along with the complaint:
I. Documents of record constituting correct names and
addresses of all the parties.
II. A certified copy of the order of the District
Forum against which an appeal is to be filed.
III. There should be more than four additional copies of
the appeal for each respondent.
IV. Any order of conditional delay, interim order
or other petitions accompanied by an affidavit.
V. Opposite parties or the appellant is required to pay a
statutory deposit of Rs 25,000 or 50 per cent of the amount claimed, whichever
is less.
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Process to file a consumer complaint in National
Commission:
1. Consumer complaint cases with value more than Rs
10 Crore should be directly filed in the National Consumer Disputed
Redressal Commission. A consumer aggrieved by the order of the State
Commission can also file an appeal in the National Commission. The appeal
should be filed within 30 days from the date of the order passed by the State
Commission.
2. The fee for approaching National Consumer
Disputes Redressal Commission is Rs. 5000 which is payable as demand
draft in the name of the Registrar, National Consumer Disputes Redressal
Commission.
3. An appeal against the order of the National Commission
can be filed in the Supreme Court within one month from the date of order
passed by the National Commission.
v
Online Consumer Complaint
1. A consumer can be filed both offline as well as online
manner. A consumer complaint can be filed online by
registering on the website of the national consumer helpline
https://consumerhelpline.gov.in/. A complainant can register himself as a
consumer by filling in the required details such as name, email, contact
number, and a password.
2. After registration, the consumer can log in with the
help of log-in details and passwords. Then, the consumer should click on
‘register your complaint’ and should further fill the details regarding the
complaint and upload the required documents. There are different grievance
portals in different sectors.
3. Once the complainant registers itself as a consumer,
he can also call on the National Consumer Helpline number 1800-11-4000 or 14404
to register his complaint or send a message on 8130009809.
4. A complainant can also register his grievance through
the NCH app, Consumer app or the UMANG app.
5. The complainant will be provided with a unique id
after registering the complainant. With the help of this unique id, the
consumer can track the status of his complaint.
6. The required fee for the consumer complainant can
be paid through an online payment gateway.
v Conclusion
The government has made several attempts for quick
redressal of consumer complaints. A consumer complaint can be
filed in a written manner as well as National Consumer Helpline and various
applications have been launched to simplify the procedure of filing consumer
complaints.
9
Essential Remedies Available to Consumers under Indian Consumer Protections
Act-2019
Under this Act, the remedies available to consumers are
as follows:
(a) Removal of Defects:
If after proper
testing the product proves to be defective, then the ‘remove its defects’ order
can be passed by the authority concerned.
(b) Replacement of Goods:
Orders can be passed
to replace the defective product by a new non-defective product of the same
type.
(c) Refund of Price:
Orders
can be passed to refund the price paid by the complainant for the product.
(d) Award of Compensation:
If
because of the negligence of the seller a consumer suffers physical or any
other loss, then compensation for that loss can be demanded for.
(e) Removal of Deficiency in
Service:
If
there is any deficiency in delivery of service, then orders can be passed to
remove that deficiency. For instance, if an insurance company makes unnecessary
delay in giving final touch to the claim, then under this Act orders can be
passed to immediately finalise the claim.
(f) Discontinuance of
Unfair/Restrictive Trade Practice:
If a complaint is
filed against unfair/restrictive trade practice, then under the Act that
practice can be banned with immediate effect. For instance, if a gas company
makes it compulsory for a consumer to buy gas stove with the gas connection,
then this type of restrictive trade practice can be checked with immediate
effect.
(g) Stopping the Sale of Hazardous
Goods:
Products
which can prove hazardous for life, their sale can be stopped.
(h) Withdrawal of Hazardous Goods
from the Market:
On
seeing the serious adverse effects of hazardous goods on the consumers, such
goods can be withdrawn from the market. The objective of doing so that such
products should not be offered for sale.
(i) Payment of Adequate Cost:
In the end, there
is a provision in this Act that the trader should pay adequate cost to the
victim concerned.
Adjournments
and Procedures
'Consumer
courts are to write the verdict within 15 days of a hearing'
The
general perception about consumer courts is that the cases drag on endlessly.
More and more people are coming to consumer courts because of quick disposal of
cases. Ever since the commission came into existence in 1988, about 31 lakh
cases have been filed. Of these, 27 lakhs have been settled. If you consider
the National Commission alone, since October 2008, we have reduced the number
of pending cases by around 2,000. Yes, there are delays, but some reasons are
outside our ambit. For instance, work is held up because an administrative
appointment has not been made by the government. Then there’s the problem of
infrastructure. In large states like Uttar Pradesh, we need more courts.
Can
consumers expect a reduction in timelines?
We are trying to streamline the process. I have asked all consumer courts to
write the verdict within 15 days of a hearing. Earlier, lawyers would come
unprepared for the hearing, but ever since we have become tough on
adjournments, we have seen results. Though we have the National Commission in
Delhi, its members travel to far-flung states and take up cases in a bid to make
it easier for people to be present.
The
compensation awarded by consumer courts is often seen as being too less.
The compensation is awarded on a case-to-case basis and has to be in line with
the claims that have been made. In some cases, such as those related to motor
vehicles, there is a process according to which the compensation is granted,
while in cases involving goods, the compensation mirrors the claim made. In
cases of medical negligence, the quantum of punishment varies. However, as the
Supreme Court has taken a lenient stand (it recently ordered Rs 1 crore as
compensation in a medical negligence case), we are trying to take a similar
view.
Recently,
the NCDRC refused to entertain a class action suit. Should there be a system to
look into such cases?
Consumer courts take up only those cases that fall under the Consumer
Protection Act, that is, where a consumer has a problem with a product or
service for which he has paid. Also, we have what are called ‘summary’
hearings, where the evidence specific to that case is put forward in the form
of an affidavit. This is the reason cases are disposed of quickly. In a class
action suit, however, elaborate evidence is collected and lawyers need to be
trained for it. Such cases are handled better by the Supreme Court.
Consumers
do not need a lawyer in consumer courts, but are they able to present their
cases effectively?
Individuals are encouraged to take up their own cases because the proceedings
are extremely consumer friendly. Despite this, if an individual is not able to
present his case properly, we appoint a lawyer, who is paid from the National
Consumer Legal Aid Fun
Consumer
Protection Bill: Celebrities could now be fined for false adverts
Scenario
in 2019- Indian consumers are all set to get a shot in their arm
as new consumer protection laws will soon come into force. Both the houses of
Parliament have passed the Consumer Protection Bill, 2019 and is currently
awaiting the President's assent. The bill was introduced in Lok Sabha by the
Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan,
on July 8 and will replace the Consumer Protection Act, 1986.
The
bill seeks to protect the rights of consumers and elevate the standard in
favour of them. Here are the key changes:
1.
Rights of consumers
The
bill has attempted to redefine the consumer rights in the country. Here are the
consumer rights that have been defined in the bill:
(i)
right to be protected against marketing of goods and services that are
hazardous to life and property
(ii)
right to be informed of the quality, quantity, potency, purity, standard and
price of goods or services
(iii)
right to be assured of access to a variety of goods or services at competitive
prices
(iv)
right to seek redressal against unfair or restrictive trade practices.
2.
Central Consumer Protection Authority (CCPA)
The
bill proposes to set up a Central Consumer Protection Authority (CCPA) to
promote, protect and enforce the rights of consumers. It will regulate
matters related to violation of consumer rights, unfair trade practices, and
misleading advertisements. The CCPA will have an investigation wing,
headed by a Director-General, which may conduct inquiry or investigation into
such violations.
3.
Penalties for misleading adverts
The
CCPA has also the authority to impose penalty on a manufacturer or an endorser
of up to Rs 10 lakh and imprisonment for up to two years for a false or
misleading advertisement. This means that any celebrity endorsing or promoting
false advertising and adulterated goods can be penalised.
In
case of a subsequent offence, the fine may extend to Rs 50 lakh and
imprisonment of up to five years. The endorser of a misleading advertisement
can also be prohibited from endorsing the product or service for a period of up
to one year. For every subsequent offence, the period of prohibition may extend
to three years.
4.
Consumer Disputes Redressal Commissions (CDRCs)
The
bill has also recommended setting up Consumer Disputes Redressal Commissions
(CDRCs) at the district, state, and national levels. This would enable
consumers to approach the CDRC to file a complaint with respect to defective
goods or services, overcharging, unfair trade practices and sale of goods or
services, which may be hazardous.
This
becomes especially beneficial for consumers, since they would no longer be
required to file and pursue the complaint where the seller/service provider is
located, which has significant time and cost implications on the complainant.
It also becomes relevant for complainants against e-commerce and
e-transactions, especially in cases when the registered offices are anywhere
else in the world.
The
district CDRC will listen to complaints for all goods and services where the
value does not exceed Rs 1 crore. The state CDRC will entertain complaints
where the value is more than Rs 1 crore and up to Rs 10 crore, while complaints
for goods and services valued at over Rs 10 crore will be heard by the national
CDRC.
5.
Product liability
This
provision holds the manufacturer, service provider or seller responsible for
any harm or injury suffered by a consumer due to a defective product or
deficient service. In order to claim compensation, a consumer will have to
prove any one of the conditions for defect or deficiency, as set out in the
bill.
|
A comparative chart of the substantive
changes in the provisions of CPA 1986 and CPA 2019 are listed below: |
||
|
S. No. |
Consumer Protection
Act, 1986 |
Consumer Protection
Act, 2019 |
|
1 |
No separate
regulator |
CCPA to be formed. |
|
2 |
Compliant could be
filed in a consumer court basis the site of the defendant/seller’s office. |
Compliant can be
filed in a consumer court where the complainant either resides or works |
|
3 |
No specific
provision of product liability existed earlier. |
Consumer can now
seek compensation for harm caused by a defective product or a deficient
service. |
|
4 |
Jurisdiction |
Jurisdiction |
|
District: up to INR
2 million |
District: up to INR
10 million |
|
|
State: INR 2 million
to INR 10 million |
State: INR 10
million to INR 100 million |
|
|
National: above INR
10 million |
National: above INR
100 million |
|
|
5 |
No legal provisions
for mediation existed earlier |
Courts can now refer
settlement through mediation. |
Consumer
Protection Act, 2019 – Key Highlights
The
Digital Age has ushered in a new era of commerce and digital branding, as well
as a new set of customer expectations. Digitisation has provided easy access, a
large variety of choice, convenient payment mechanisms, improved services and
shopping as per convenience. However, along the growth path it also brought in
challenges related to consumer protection.
Keeping
this in mind and to address the new set of challenges faced by consumers in the
digital age, the Indian Parliament, on 6 August 2019, passed the landmark
Consumer Protection Bill, 2019 which aims to provide the timely and effective
administration and settlement of consumer disputes. The Consumer Protection
Act, 2019 (New Act) received the assent of the President of India and was
published in the official gazette on 9 August 2019. The New Act will come into
force on such date as the Central Government may so notify. The New Act seeks
to replace the more than 3 (three) decades old Consumer Protection Act, 1986
(Act).
Set out below are
some of the Key Highlights of the New Act:
- Covers
E-Commerce Transactions: The New Act has widened the definition of 'consumer'. The
definition now includes any person who buys any goods, whether through offline
or online transactions, electronic means, teleshopping, direct selling or
multi-level marketing. The earlier Act did not specifically include e-commerce
transactions, and this lacuna has been addressed by the New Act.
- Enhancement
of Pecuniary Jurisdiction: Revised pecuniary limits have been fixed under the
New Act. Accordingly, the district forum can now entertain consumer complaints
where the value of goods or services paid does not exceed INR 10,000,000
(Indian Rupees Ten Million). The State Commission can entertain disputes where
such value exceeds INR 10,000,000 (Indian Rupees Ten Million) but does not
exceed INR 100,000,000 (Indian Rupees One Hundred Million), and the National
Commission can exercise jurisdiction where such value exceeds INR 100,000,000 (INR
One Hundred Million).
- E-Filing
of Complaints: The New Act provides flexibility to the consumer to file complaints
with the jurisdictional consumer forum located at the place of residence or
work of the consumer. This is unlike the current practice of filing it at the
place of purchase or where the seller has its registered office address. The
New Act also contains enabling provisions for consumers to file complaints
electronically and for hearing and/or examining parties through
video-conferencing. This is aimed to provide procedural ease and reduce
inconvenience and harassment for the consumers.
- Establishment of Central Consumer Protection Authority:
The New Act proposes the establishment of a regulatory authority known as the
Central Consumer Protection Authority (CCPA), with wide powers of enforcement.
The CCPA will have an investigation wing, headed by a Director-General, which
may conduct inquiry or investigation into consumer law violations.
-
The CCPA has been granted wide powers to take suo-moto actions, recall
products, order reimbursement of the price of goods/services, cancel licenses
and file class action suits, if a consumer complaint affects more than 1 (one)
individual.
- Product Liability & Penal Consequences:
The New Act has
introduced the concept of product liability and brings within its scope, the
product manufacturer, product service provider and product seller, for any
claim for compensation. The term 'product seller' is defined to include a
person who is involved in placing the product for a commercial purpose and as
such would include e-commerce platforms as well. The defense that e-commerce
platforms merely act as 'platforms' or 'aggregators' will not be accepted.
There are increased liability risks for manufacturers as compared to product
service providers and product sellers, considering that under the New Act,
manufacturers will be liable in product liability action even where he proves
that he was not negligent or fraudulent in making the express warranty of a
product. Certain exceptions have been provided under the New Act from liability
claims, such as, that the product seller will not be liable where the product
has been misused, altered or modified.
- Unfair Trade Practices: The New Act introduces a specific
broad definition of Unfair Trade Practices, which also includes sharing of
personal information given by the consumer in confidence, unless such
disclosure is made in accordance with the provisions of any other law.
- Penalties for Misleading Advertisement: The
CCPA may impose a penalty of up to INR 1,000,000 (Indian Rupees One Million) on
a manufacturer or an endorser, for a false or misleading advertisement. The
CCPA may also sentence them to imprisonment for up to 2 (two) years for the
same. In case of a subsequent offence, the fine may extend to INR 5,000,000
(Indian Rupees Five Million) and imprisonment of up to 5 (five) years. The CCPA
can also prohibit the endorser of a misleading advertisement from endorsing
that particular product or service for a period of up to 1 (one) year. For
every subsequent offence, the period of prohibition may extend to 3 (three)
years.
-
The New Act fixes liability on endorsers considering that there have been
numerous instances in the recent past where consumers have fallen prey to
unfair trade practices under the influence of celebrities acting as brand
ambassadors. In such cases, it becomes important for the endorser to take the
onus and exercise due diligence to verify the veracity of the claims made in
the advertisement to refute liability claims.
- Provision for Alternate Dispute Resolution(ADR):
The New Act provides for mediation as an Alternate Dispute Resolution
mechanism, making the process of dispute adjudication simpler and quicker. This
will help with the speedier resolution of disputes and reduce pressure on
consumer courts, who already have numerous cases pending before them.
With
the New Act all set to become the law, gone are the days, where the 'consumer
was asked to beware'. A consumer is now the one who assumes to be treated like
a King. Hence, it is important for consumer driven businesses (such as, retail,
e-commerce) to be mindful of the changes in the legal landscape and have robust
policies dealing with consumer redressal in place. Consumer driven businesses must
also strive to take extra precautions against unfair trade practices and
unethical business practices.
|
Commission Advisory
Committee |
|
(1) The Commission shall constitute a
committee to be known as the Commission Advisory Committee, in consultation
with the State Government which shall consist of such number of persons being
not less than 15 and not more than 21 as the Commission may appoint after
consultation with such representatives or bodies representative of the
following interests as the Commission thinks fit, that is to say, holders of
supply licences in the State, holders of transmission licences in the State,
generating companies operating in the State, Commerce, Industry, Transport,
Agriculture, Labour employed in the electricity supply industry and consumers
of electricity. (2) The Chairman and members of the
Commission shall be ex-officio Chairman and Members of the Commission
Advisory Committee. (3) The term of the members of advisory
Committee shall be for a period of three years and one third of the members
shall retire annually. (4) The Commission Advisory Committee
shall meet at least once in every three months. (5) The functions of the Commission
Advisory Committee shall be as follows:-- (a) to advise the Commission on major
questions of policy, relating to the electricity industry in the State; and (b) to advise the Commission on any
matters which the Commission may put before it, including matters relating to
the quality, continuity and extent of service provided by licensees and
compliance by licensees with the conditions and requirements of their
licences. Consumer protection
and standard of performance 33. (1) The Commission may, after
consultation with (a) holders of supply licences, (b) other persons or bodies appearing
to the Commission to be representative of persons and categories of persons
likely to be affected and (c) the Commission Advisory Committee, frame
regulations prescribing:-- (a) the circumstances in which such
licensees are to inform consumers of their rights; (b) the standards of performance in
relation to any duty arising under sub-section (a) above or otherwise in
connection with the electricity supply to the consumers; and (c) the circumstances in which
licensees are to be exempted from any requirements of the regulations or this
section and may make different provision for different licensees. (2) Nothing in this section or other
provisions of this Act shall in any way prejudice or affect the rights and
privileges of the Consumers under other laws including but not limited to the
Consumer Protection Act, 1986. Electricity supply
and overall performance standards 34. (1) The Commission may, after
consultation with the licensees, the Commission Advisory Committee, and with
persons or bodies appearing to it to be representative of persons likely to
be affected, from time to time,- (a) determine such standards of overall
performance in connection with the provision of electricity supply services
and in connection with the promotion of the efficient use of electricity by
consumers as, in its opinion, is economic and ought to be achieved by such
licensees; and (b) arrange for the publications, in
such form and in such manner as it considers appropriate, of the standards so
determined. (2) Different standards may be
determined under this section for different licensees. Information with
respect to levels of performance 35. (1) The Commission shall from time
to time collect information with respect to,- (a) the fines or penalties levied on
licensees under this Act; (b) the levels of overall performance
achieved by such licensees in connection with the transmission and provision
of electricity supply services; and (c) the levels of performance achieved
by such licensees in connection with the promotion of the efficient use of
electricity by consumers. (2) On or before such date in each year
as may be specified in a direction given by the Commission, each licensee
shall furnish to the Commission the following information,- (a) with respect to each standard prescribed
the number of cases in which a penalty was levied and the aggregate amount of
value of those penalties; and (b) with respect to each standard
determined such information with respect to the level of performance achieved
by the licensee as may be so specified. (3) The Commission shall, at least once
in every year, arrange for the publication, in such form and in such manner
as it considers appropriate, of such of the information collected by or
furnished to it under this section as may appear to the Commission to be so
required. Restriction on
disclosure of information. 36. (1) Subject to the provisions of
this Act, no information with respect to any particular business which in the
opinion of the Commission is confidential; and (a) has been obtained by the Commission
under or by virtue of any of the provisions of this Act; and (b) relates to the affairs of any
individual or to any particular business, shall during the lifetime of that
individual or for so long as that particular business continues to be carried
on, be disclosed by the Commission without the consent of that individual or
the person for the time being carrying on that business. (2) The restriction contained in
sub-section (1) above shall not apply to any disclosure of information which
is made:- (a) for the purpose of facilitating the
carrying out by the State Government of any of its functions under a statute; (b) for the purpose of facilitating the
carrying out by the Central Government of any of its duties or functions
under this Act or any Central legislation; (c) for the purpose of facilitating the
Accountant General, Andhra Pradesh to carry out his duties and functions
under this Act; (d) for the purpose of enabling or
assisting any competent person to carry out functions under the enactment
relating to insolvency; (e) in connection with the investigation of any
criminal offence or for the purposes of any criminal proceedings; or (f) for the purposes of any civil
proceedings brought under or by virtue of this Act or any other State or
Central legislation to which the information is directly relevant. (3) The restrictions contained in
sub-section (1) above do not apply to the disclosure of any information
relating to tariff. |
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