Consumer Laws

Consumer rights are generally a reference to a body of law that pertains to things the producers of goods must do to protect customers from harm. These laws have come into existence through a series of legal disputes, and have been shaped by the results of those cases. In a few instances, some states have actually codified regulations that they refer to as “consumer rights” laws, but this is not yet the majority practice, and even these codifications may not cover all of the principles that are generally considered “consumer rights”

The Right to be Heard

Every consumer has the right to be heard after being exploited. An upset consumer should be aware that he/she possesses the right to take the matter to the authorities if the company does not hear them out. The right to be heard is a powerful right at the disposal of the consumer.

The Right to Seek Redressal

Every consumer has the right to seek out for justice. Upset consumers who have been a victim of corporate exploitations can take the matter to the redressal agencies and file a suit against the insensitive company. This right is often put to ill use by many consumers and is hence a very delicate right.

The Right to Information

Every consumer has the right to information. Consumers should be amidst truthful and genuine information. Information should not have an ill purpose and should not be incorrect. In other words, consumers have the right to truthful information.

The Right to Protection

Every consumer has the right to protection. Central Consumer Protection Council, State Consumer Protection Council, District Forum and Consumer Protection Redressal Agencies are at the disposal of the consumers. These institutions aim at protecting Indian consumers from exploitative companies.

The Right to Assurance

Every consumer has the right to assurance. Assurance of qualitative goods and qualitative services. They also have the right to the assurance of the variety of commodities and services at their disposal.

The Right to Consumer Education

Every consumer also has the right to receive consumer education. This education is often a part of every consumer protection act and amendment. The government should make immense effort to share and spread the consumer rights to every remote area of India. Consumers should also receive the right to get the education on the consumer do’s and consumer don’ts. This is a very informative and knowledgeable right at the disposal of the consumers.

Consumer Protection Act is one of the main laws that provide protection to consumers in India. The Act was introduced in the year 1986 and then amended in the year 2002 through the Consumer Protection Amendment Act, 2002, then in 2019.

The main objective of the Act is to provide better protection of consumers and establish a strong mechanism for the settlement of consumer disputes. The Consumer Protection Act seeks right to: protect against the marketing of goods which are hazardous to life and property; inform about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices; assure, wherever possible, access to an authority of goods at competitive prices; hear and to assure that consumers interests will receive due consideration at appropriate forums; seek redressal against unfair trade practices or unscrupulous exploitation of consumers; consumer education.

Consumer Defined: The Consumer Protection Act defines a consumer as a person who buys goods or services for consideration (NOT for resale). Also, a consumer is who uses the goods and services with the permission of the person who purchases the goods or services. The Act covers all goods and services including banking, e-commerce, telecom, insurance, electricity, transportation in the private and public sector.

How and When to Complain

Under the Consumer Protection Act, the customer can raise a complaint in writing if:

• Adoption of any unfair trade practise or a restrictive trade practice by any trader or service provider;
• The goods bought by him or agreed to be bought by him suffer from one or more defects;
• The services hired or availed of or agreed to be hired or availed of by him suffer from a deficiency in any respect;
• Trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price:
• Fixed by or under any law for the time being in force;
• Displayed on the goods or any package containing such goods;
• Displayed on the price list exhibited by him by or under any law for the time being in force;
• Agreed between the parties;
• Offering goods for sale to the public which will be hazardous to life and safety when used.
• Offering services which will be hazardous to life and safety of the public when used.

Procedure to File Consumer Case:

Any consumer complaint relating to a good or service must be filed in writing with a District Forum by the consumer along with the fee. On receipt of a complaint, the District Forum may reject or approve the complaint, usually within 21 days from the date of complaint. On the other hand, a copy of the complaint will reach the opposite party for the approval to be made within 45 days.

The effort is taken to hear all consumer cases as expeditiously as possible. Further, it is endeavoured to decide the complaint within a period of three months from the date of receipt of notice by the opposite party. Hence, if during the proceedings, the complainant fails to appear on the date of hearing before the District Forum, the District Forum may either dismiss the complaint about default or decide it on merits.

Consumer Protection Act 2019:

The transformative change in the Indian economy has significantly altered the way many Indians buy, shop, travel and explore. The combined effect of the internet, market competition and rapid innovations have drastically expanded the range of options and information available to consumers. As a result, long-standing consumer traditions have been disrupted creating a need for a novel consumer grievance redressal scheme meant for the new market. Taking this new and dynamic marketplace into consideration, the Indian Parliament on 6th August 2019 passed the Consumer Protection Bill, 2019. On 9th August 2019, the Consumer Protection Act, 2019 ("CPA 2019") received assent from the President of India and was notified in the Official Gazette by the Government of India. Thereafter, vide Notification dated 15.07.2020, the Ministry of Consumer Affairs, Food and Public Distribution notified major provisions of CPA 2019, and declared 20th July 2020 to be the appointed date for the coming into force of CPA 2019.

The overhauling of the consumer laws through the enactment of the CPA, 2019 is being perceived as a major affirmative step towards ensuring timely and effective administration and settlement of consumer disputes, keeping in mind the prevalent economic practices affecting consumers of the day. The CPA, 2019 has broadened the concept of 'consumer' by incorporating under its definition, offline and online transactions through electronic means or by teleshopping or direct selling or multi-level marketing. Under the new regime, several other significant additions have also been made such as the establishment of Consumer Protection Council, enhancement of pecuniary jurisdiction of consumer courts, introduction of 'Product Liability', provisions for alternative dispute resolution and mechanism for filing e-complaints.The transformative change in the Indian economy has significantly altered the way many Indians buy, shop, travel and explore. The combined effect of the internet, market competition and rapid innovations have drastically expanded the range of options and information available to consumers. As a result, long-standing consumer traditions have been disrupted creating a need for a novel consumer grievance redressal scheme meant for the new market. Taking this new and dynamic marketplace into consideration, the Indian Parliament on 6th August 2019 passed the Consumer Protection Bill, 2019.

NOTABLE FEATURES OF CPA, 2019

• Broadening the concept of “consumer”
• Enhancement of Pecuniary Jurisdiction
• Territorial Jurisdiction
• Product Liability
• Central Consumer Protection Authority
• Misleading Advertisements
• Unfair Trade Practises and Unfair Contracts
• Alternate Dispute Resolution and Compounding of Offences
• Deemed Admissibility of the Complaint
• Review and Revision
• Limitation Period for Filing the Appeal and Provisions regarding Pre-Deposit