Name of Author- Arohi Bhardwaj, University Five Year Law College, Rajasthan
Edited by – Sulesh Choudhary
INTRODUCTION
“A Consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work; he is the purpose of it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving us the opportunity to serve him”- Mahatma Gandhi
The Consumer Protection Act has emerged as a crucial element in social and economic spheres, particularly in an era where the average citizen often faces confusion and vulnerability. The present world is characterized by the rapid advancement of technology, globalization, and modernization, where the Consumer Protection Act stands tall against all odds and shields it by its regulation, fighting for the common man’s rights and ensuring that the marketplace is fair for all. As necessities and requirements change, global trade and markets also evolve. The bond between consumer and producer has grown into a positive and effective mechanism to safeguard the interest of consumers.
The act serves as a regulatory landscape designed to address a global range of issues related to consumer goods and services ensuring fairness, transparency, and accountability in economic transactions. As stated by the act individual who feels not satisfied or deceived after purchasing goods or services can seek help from Consumer Redressal Agencies to redeem compensation. “Consumers should not tolerate the incontinence or wrong done to them and file appropriate complaints to ensure the same is not repeated by the unscrupulous traders to them and others in the society” says Vijay Kumar member of the District Consumer Redressal Commission.
Keywords: Consumer Protection Act 2019, Central Consumer Protection Authority, Consumer Rights, Consumer Dispute Redressal Commission, Consumer Awareness
MEANING, DEFINITION & EXPLANATION
A consumer is an individual or a group who intends to obtain goods and services from the producer and purchases goods and services for his benefit. He is the sole decision maker on whether to buy unless he is forced to do so. Consumers have access to basic goods and services consisting of food, clothing, education, health care, institutions, shelter, and sanitation. The Consumer needs to be protected from the depths of deceptive advertising to the heights of product safety. Consumer Protection Act 2019 is a guardian angel that regulates us, is vigilant and is always ready to put down those who would seek to mislead, misguide, and harm our citizens. The term “consumer protection” has undergone several changes with growing modification of the common law doctrine of “Caveat emptor” i.e. let the buyer beware which permits the seller not to burden his liability as it shifts the responsibility on the buyer.
The Consumer Protection Act 2019 is a landmark piece of legislation over its predecessor, the Consumer Protection Act 1986. It regulates new provisions to address issues like e-commerce, product liability, and direct selling. The act aims to further empower consumers by enhancing their ability to seek effective redressal, building a consumer-centric environment, ensuring that consumers receive fair treatment and redressal, and protecting their rights. Consumer Protection Act is not just a legal provision or concept that needs to be followed; instead, it’s a movement, a revolution that should not be suppressed, and come into force.
HISTORICAL BACKGROUND
India’s movement towards consumer protection started with the enactment of the Consumer Protection Act of 1986. The act aimed to protect its consumer’s rights against defective goods and services, unfair trade practices, misleading advertisements, etc. It established consumer redressal agencies which came to be known as a three-tier system, i.e. district, state, and national consumer dispute redressal forum. Over the past year, the marketplace and global trades have reshaped with technological advancements, leading to changes in business practices and introducing the rise of digital practices. These highlight the gaps and limitations of the 1986 Act. Moreover, issues like the rise in digital transactions, incomplete redressal mechanisms, consumer safety from hazardous activity, and the need to protect consumer’s interests.
After seeing all the shortcomings the government recognized the need for an adequate update. The Indian government started revising the existing consumer protection framework. The main purpose is to address the challenges and improve their redressal conduct. The Ministry of Consumer Affairs, food, and Public Administration revised the act which involved the conduct of consultations with various stakeholders, committees, and organizations or legal representatives. The Consumer Protection Act Bill 2019 was introduced in the Lok Sabah in December 2019. It aimed at succeeding the Consumer Protection Act of 1986. The bill went through conflicting debates and discussions in both houses of parliament and was given presidential assent on August 9, 2019. The act of 2019 provides the provisional establishment of the central consumer protection authority with legitimate power to take action against unauthorized activities and come up with an effective mechanism.
WHO CAN FILE A COMPLAINT?
Under section 2(7) of the Consumer Protection Act 2019, the word “consumer” means any person who- buys any goods for a consideration that 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 resale or for any commercial purpose.[1]
It includes- consumers, voluntary consumer association registers under any law, central or state government, and one or more consumers having the same interest.
ELIGIBILITY CRITERIA TO FILE COMPLAINTS
By meeting the following eligibility criteria consumers can file complaints under the Consumer Protection Act 2019.
- The complainant must be a consumer, the consumer who filed the complaint must have purchased the goods and services for personal purposes.
- The value of goods and services must exceed rs.1 crore, when the value of goods and services exceeds rs.1 crore then he can file a complaint before the national redressal agency or commission.
- The complainant must have suffered a loss or harm, and the goods and services must inflict a hazardous act on the consumer from which the consumer suffered harm or damage.
- The complainant must be authorized to file a complaint, in this case, a consumer must be sound or able to file a complaint.
- The complaint must be filed within two years, the consumer must file a complaint within two years from the date of purchase of goods and services.
TYPES OF COMPLAINTS
In terms of sections 2(6) of the Consumer Protections Act 2019, the word “complaint” means any allegations in writing, made by a complainant[2].
- Complaints related to Unfair trade practices: According to section 2(47)[3] the term unfair trade practices refers to practices that adopt any deceptive or unethical methods for the sale or supply of goods and services. It uses various fraudulent, illusive, or immoral methods to obtain business. It includes false advertising, tied selling, deceptive pricing, misrepresentation, and non-compliance with manufacturing standards; for example, bait and switch occurs when a company advertises a product at a low price but then tries to sell the consumer a more expensive product. Such measures are considered unlawful by the authorities under consumer protection laws. Consumers who have been harmed or suffered loss by unfair trade practices can seek redressal by suing or filing compensatory or punitive damages. Here, Plaintiff need not prove their intent of filing a complaint, showing the act was unfair and hazardous is enough. Hence the burden of proof is not on the plaintiff.
- Complaints related to Defective goods and services: Under section 2(10) of the Consumer Protection Act 2019 the term defect means any fault, lack of perfection, or shortcomings in terms of quality, quantity, purity, potency, or standard which is required to be maintained under any law for the time being in force would amount to a defect in the particular commodity[4]. Defects in goods can also be found when there is any express or implied contract in respect of goods with the trader claimed by him. For example, a pressure cooker bursts and inflicts injury to the consumer. It was held to be a manufacturing defect.
- Whereas services come under section 2(42) of the Consumer Protection Act 2019 means services of any description made available to potential users[5]. Service comes in banking, financing, insurance, transport, telecom, housing, and boarding. It does not include the rendering of any services free of charge or under a contract of personal services. The main purpose of widening the scope is that services not only include the day-to-day buying of goods but even including such facilities which are otherwise not commercial but professional or service.
FILING A COMPLAINT UNDER THE CONSUMER PROTECTION ACT 2019
Consumer dispute redressal agencies established to fulfil the purpose of this act include the following agencies:
- “District Commission” established by the state government
- “State Commission” established by the state government and
- A National Consumer Dispute Redressal Commission was established by the central government by notification[6].
Chapter IV of the Consumer Protection Act 2019 promotes three-tier consumer dispute redressal agencies. The Act 2019 establishes a mechanism for consumers to file complaints and obtain relief in the event of grievances associated with defective goods or services. It empowers consumers to claim their rights and get compensated for any loss that has occurred because of the low quality of products or services. Moreover, it manages to hold business as a support service that empowers the consumer and ensures the quick resolution of their grievance without necessitating physical presence. It serves as a deterrent effect that discourages businesses from engaging in unfair trade practices. Educates consumers, teaches them their rights, and gives them the courage to demand standards.
To initiate the process of filing a complaint, the very first step taken by the consumer at the first instance would be to determine which redressal agency would have appropriate jurisdiction, both monetarily and geographically. Thereafter, the consumer will have to draft the complaint. Under Section 35[7] of CPA 2019, “a complaint about any goods or service or agreed to be sold may be filed with the district commission by the consumers who allege unfair trade practice or any relevant reason.” Such complaints have to include the name and agency address of the complainant and the opposite party as well as a description of the goods and services suffered from the defect or deficiency.
The complaint needs to be registered with the concerned agency, accompanied by the prescribed filing fee. The concerned authority will hear the complaint and pass an order, binding upon both parties. Aggrieved parties may appeal to the next higher agency or the Supreme Court within 30 days of the order in cases of dissatisfaction. Another important thing to be noted here is that the complaint must be filed within two years from the date of cause of action. The entire process of complaint filing is very consumer-friendly, with a structured framework for redressal. It also provides central consumer protection authority for better protection, promotion, and enforcement of consumer rights.
REMEDIES AVAILABLE
Under the Consumer Protection Act 2019, there are a variety of redress mechanisms available to consumers who suffered losses from defective goods or services. One important relief measure would be the right to a refund of money that was paid for such defective goods and services, in addition to that, replacement or even repair of the defective goods and services may be offered. He may be awarded compensation in cases of loss or injuries suffered by the consumer.
It further empowers a consumer commission to direct the removal of deficiencies in goods and services and to stop unfair trade practices. The act provides a grant of punitive damages in grave cases of misconduct to deter the perpetrators from repeating the same. Besides the consumer is also awarded the refund of the expenses incurred and the payment of interest in the amount awarded to consumers. As stated the Consumer Protection Act 2019 set up a three-tier consumer dispute redressal mechanism, where district, state, and national commissions are constituted with an empowered relief to the consumers. The powers and functions are defined in such a way that consumers will have proper remedies available. In short decent and rigorous enforcement of these remedies shall go a long way in protecting consumer rights and helping to make trade practices transparent and fair.
RELEVANT CASE LAWS
Case 1– Kailash Chand Gupta v. State Commission, Consumer Forum, U.P. Lucknow, and others (1997)[8]
In this case, Kailash Chand Gupta had filed a complaint before the consumer forum, U.P. Lucknow, against a builder alleging a deficiency in service. The complaint was dismissed by the consumer forum. Gupta has approached the state commission consumer forum, U.P. Lucknow. The state commission dismissed his appeal. Gupta filed a revision petition before the NCDRC (National Consumer Dispute Redressal Commission), alleging deficiency in service by the state commission and claiming competition.
Issue
Did the consumer forum have jurisdiction to entertain the complaint that Kailash Chand Gupta filed against the state commission consumer forum, U.P. Lucknow, and others for deficiency in service and claiming compensation?
Judgment
The NCDRC ensures that the consumer undoubtedly erred in dismissing Gupta’s complaint and that the state commission also committed an error of law in dismissing his appeal. The NCDRC and the consumer forum observed a clear deficiency of service by the builder, and the state commission failed to provide justice to Gupta. The NCDRC ordered the builder to pay Gupta compensation of Rs. 2, 50,000 with interest and directed the state commission to pay Rs. 25,000 for its failure to administer justice.
Case 2– Ethiopian Airlines v. Ganesh Narain Saboo[9]
In this case, the respondent booked a consignment of reactive dyes with the appellant Ethiopian Airlines to be delivered at Dares Salaam Tanzania on 30.9.1992. The airway bills were duly issued by the appellant from its office in Bombay at the Taj Mahal Hotel for the said consignment. According to the respondent, there was a gross delay in the arrival of the consignment at the destination, which led to the deterioration of the goods.
Issue
- Whether proceedings before the consumer forum suits?
Judgment
In this case, the appeal has preferred the appeal against the judgment of the national commission, which set the order of the state commission and held that Section 86 of the CPC was not applicable since the dispute case fell under the provisions of the act. Here, parties raised questions about whether proceedings before the consumer forum were suits. The court held that term suits included all proceedings of a judicial or quasi-judicial nature in aggrieved parties were adjudicated before an impartial forum. The consumer forum’s proceedings fall within the scope of the term suit act, which enumerates the provisions of the CPC that apply to proceedings before the consumer forum; therefore, the consumer does not fall under section 86 of the CPC.
CONCLUSION& COMMENTS
In sum, there is an effective framework under the Consumer Protection Act 2019 for imposing liability on manufacturers and sellers of defective products. Consumers can file complaints under the act and claim compensation for losses suffered on account of defective or hazardous products while encouraging the manufacturer to take all necessary precautions regarding consumer safety and quality. With heightened consciousness among consumers about their rights, there can be an expected increase in product liability complaints, resulting in a much safer and more responsible marketplace. It will be possible to empower consumers to ask for better products and services through the effective enforcement of CPA 2019. Its key effective implementation also ensures consumer interest, and protection, and fosters a culture of safety and accountability among companies.
REFERENCES
Books / Commentaries / Journals Referred
- “Consumer Protection Law” by Dr. S.C. Tripathi
- “Consumer disputes redressal- law and procedure” by S.K. Goyal
Online Articles / Sources Referred
- https://economictimes.indiatimes.com
- A guide to filing a consumer complaint in India by Legal Service India
Cases Referred
- AIR 1997 AII 312 (DB)
- AIR 2011 SC 3495
Statutes Referred
- Section 35 of CPA 2019
- Section 2(42) of CPA 2019
- Section 2(47) of CPA 2019
- Section 2(10) of CPA 2019
- Consumer protection (consumer disputes redressal commission) rules 2020
ENDNOTES
[1] The Consumer Protection Act, 2019 sec. 2(7)
[2] The Consumer Protection Act, 2019 sec. 2(6)
[3] The Consumer Protection Act, 2019 sec. 2(47)
[4] The Consumer Protection Act, 2019 sec. 2(10)
[5] The Consumer Protection Act, 2019 sec. 2(42)
[6] The Consumer Protection Act, 2019 ch.V
[7] The Consumer Protection Act, 2019 sec 35
[8] AIR 1997 AII 312 (DB)
[9] AIR 2011 SC 3495
