Consumer Protection Act India: Rights, Courts, and Complaint Process Explained

By: Abhishek Bhatt

What is the need for the Consumer Protection Act?

India is one of the biggest consumer markets in the world. However, before 1986, we didn’t have any law that particularly dealt with consumer issues due to which consumers were often subject to exploitation by the sellers in various means such as unfair trade practices, false advertisements, etc. Due to the rise in Consumer disputes Govt. of India enacted the Consumer Protection Act of 1986 to safeguard the interests of the consumers and to provide a separate legal forum for Consumer disputes. Due to the enactment of this Act consumer awareness gradually increased over time.

Consumer Protection Act 1986

The Consumer Protection Act of 1986 was enacted to safeguard the interests of consumers and to provide a separate legal forum for Consumer disputes. Due to the enactment of this Act consumer awareness gradually increased over time.

Consumer Protection Act 2019

The Consumer Protection Act 2019 was enacted to overcome some of the challenges faced under the Consumer Protection Act 1986 which include:-

To Introduce a regulatory body ie. Central Consumer Protection Authority (CCPA) was established to oversee and address unfair practices
To include the E-commerce segment in the act
To raise the amount of jurisdiction of consumer courts
To introduce the concept of meditation between the parties
To introduce the concept of product liability

Key Differences Between Both Acts

Consumer Protection Act 1986	Consumer Protection Act 2019
No regulatory authority	Central Consumer Protection Authority (CCPA) established
Jurisdiction limited to the district of seller	Consumers can file cases from their residence jurisdiction
Consumers could not sue sellers for product issues in consumer courts	Consumers can sue sellers for product-related issues in consumer courts
District Commission Jurisdiction: ₹0-20 lakhs	District Commission limits raised to ₹0-50 lakhs (Amended)
State Commission Jurisdiction: ₹20 lakhs-1 crore	State Commission limits raised to ₹50 lakhs-2 crores (Amended)
National Commission Jurisdiction: Above ₹1 crore	National Commission limits raised to above ₹2 crores (Amended)
No specific provisions for e-commerce	E-commerce platforms are covered
No provisions for mediation	Provisions to settle disputes through mediation
No provisions to declare unfair contracts null and void	Consumer courts can declare a contract null and void if it’s unfair

Who is a consumer?

A consumer is any person who buys goods or services for consideration, which can be fully paid or promised or partially paid and promised.

Who are not consumers?

In the following conditions, a person is not considered as a consumer:

When goods are brought for commercial purposes.
When goods are brought without consideration.
When services are availed for commercial purposes.
When services are brought without consideration.

But if any person purchases goods or avails any service for commercial purposes to earn his livelihood using self-employment such purchases would be covered under the Consumer Protection Act and the person would be treated as a consumer and would be entitled to all the benefits available to a consumer under the Consumer Protection Act.

The same has been said by the Supreme Court of India in “Lilavati Kirtilal Mehta Medical Trust V/s M/S Unique Shanti Developers”

What are Consumer Rights?

Consumer rights are a set of rights provided to consumers under the Consumer Protection Act 2019 to safeguard consumers from any sort of exploitation from sellers. These include:

Right to be Protected:- Consumers have the right to be protected against the marketing and sale of goods that are hazardous to life and property. This ensures the goods bought by them should be safe for consumption. Products should have the required certification marks to ensure that the set of standards and regulations approved by their respective departments are followed. Some popular certification marks are the FSSAI Mark for food products, the ISI Mark for Industrial Products, the BIS Hallmark for the sale of precious metals, etc.
Right, to be Informed:- Every consumer has the right to get information about the producer’s service. This includes quality, quantity, potency, standard, purity, price of goods or services, and all other relevant information regarding goods or services to protect consumers from unfair trade practices.
Right to be Assured:-Consumers have the right to be assured to have access to a variety of options of goods or services at competitive prices. In the case of monopolies, it means the right to be assured of satisfactory quality and service at a fair price. It also includes the right to basic goods and services.
Right to be Heard:- It means that consumer interests will receive due consideration at appropriate forums. It also includes the right to be represented in various forums formed to consider the consumer’s welfare. It assures that consumer complaints will be heard and appropriate action will be taken against them.
Right to seek Redressal:- If the consumer has been subject to unfair trade practices or his rights have been violated by the seller then he has the right to seek redressal. Consumers can claim redressal from the District Commission State Commission or National Commission based on the claim value of the suit. Consumer Court would grant relief once they are satisfied with the genuineness of the matter.
Right to Consumer Awareness:- The main reason for consumer exploitation is the ignorance of consumers. They have the right to gain consumer awareness ie. they have the right to acquire the knowledge and skill to be an informed consumer which includes his rights, duties, And other relevant information to be informed about the good or service.

What are the different levels of Consumer Courts?

Consumer courts are broadly classified into 3 different levels namely:-

District Commission
State Commission
National Commission

District Commission or District Consumer Dispute Redressal Commission (DCDRC):- As the name suggests District Commission or DCDRC deals with the matter of a particular district. Cases of claim value below₹50 lacs are filed before the District Commission. If the Complaint is not satisfied with the order of the District Commission he can appeal before the State Commission within 45 days but he has to deposit 50% of the amount of the order.
State Commission or State Consumer Dispute Redressal Commission (SCDRC):- As the name suggests State Commission or SCDRC deals with the matter of a particular State. Cases of claim value worth ₹50 lacs-₹2 crore are filed before the State Commission. If the Complaint is not satisfied with the order of the State Commission he can appeal before the National Commission within 30 days but he has to deposit 50% of the amount of the order. State Commission has to possibly try to dispose of cases within 90 days.
National Commission or National Consumer Dispute Redressal Commission (NCDRC):-As the name suggests National Commission or NCDRC deals with the matters of the whole country. Cases of claim value worth above ₹2 crore are filed before the National Commission. If the Complaint is not satisfied with the order of the National Commission he can appeal before the Supreme Court within 30 days but he has to deposit 50% of the amount of the order. National Commission has to possibly try to dispose of cases within 90 days.

You can calculate court fees through our court fees calculator—https://www.centurylawfirm.in/blog/court-fee-and-jurisdiction-calculator-online/

When can a consumer approach Consumer courts?

A consumer can approach Consumer court when he is subject to:-

Violation of Consumer Rights- If a consumer believes his Consumer rights provided under the Consumer Protection Act 2019 have been violated he/she can approach Consumer courts.
Unfair trade practices– If a consumer is subject to Unfair trade practices he/she can approach consumer courts. Unfair trade practices include:-
Making any statement, whether orally or in writing or by visible representation including using electronic record, which—

falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style, or model;
falsely represents that the services are of a particular standard, quality, or grade;
falsely represents any re-built, second-hand, renovated, reconditioned, or old goods as new goods;
represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses, or benefits that such goods or services do not have; represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;
makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;
gives to the public any warranty or guarantee of the performance, efficacy, or length of life of a product or of any goods that is not based on an adequate or proper test thereof.
makes to the public a representation in a form that purports to be—
- a warranty or guarantee of a product or any goods or services; or
- a promise to replace, maintain, or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out;
materially mislead the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made;
gives false or misleading facts disparaging the goods, services, or trade of another person.

EX:- A sells B a laptop and in his advertising he told that it is the latest model. B later founds out that it is an old model . A have committed unfair trade practice and he would be liable under Consumer court.

False/Misleading advertisements- If a consumer is subject to Unfair trade practices he/she can approach consumer courts. Unfair trade practices include:-

falsely describes such product or service; or

gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity, or quality of such product or service; or

conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or

deliberately conceals important information

EX:- 1) XYZ ltd in advertising claims that their product cures cancer. However they do not have any certification of the same by any govt authority. Xyz ltd can be held guilty for false advertising.

2) ABC Car manufactures ltd claims that their vehicle are the environment friendly and comply with emissions standards. However it turns that they were manipulating emission test with their software. ABC Car manufactures ltd can be held liable for false advertising.

What is the procedure for filing a Complaint in Consumer Court:-

Draft Complaint: The first step for filing a complaint in Consumer court is drafting the complaint. It should contain the relevant facts, issues, and the relief sought in the matter.
Attach Documents: Attach copies of all relevant documents, such as bills, correspondence with the seller or service provider, and any other evidence supporting the claim.
Pay Filing Fee: Pay the prescribed fee based on the value of the claim.
Choose the appropriate forum: Submit the complaint and documents to the appropriate consumer court based on the jurisdiction.

Do you need a lawyer for Consumer Cases?

No, you can argue your cases on your own although it is highly beneficial to hire a lawyer.

Different stages of the case in Consumer court

The cases in consumer courts are divided into the following stages:-

Filing and Admission of Complaint– The very first step is the filing a complaint by the consumer in the appropriate court with the required fee. The court then scrutinizes the complaint filed by the consumer and if it court finds it appropriate based on jurisdiction notice is issued to the opposite party.
Written Statement– The respondent may file a written statement in response to the complaint, highlighting their objections.
Evidence– In this stage, both parties are required to submit all the evidence that is relevant ie. Documents, witness testimony, etc.
Final Arguments– After submission of the evidence both parties make their final arguments.
Judgment– After analyzing all the arguments and considering the evidence produced court provides a final judgment. If any party is not satisfied with the judgment they can appeal in a higher tribunal within the appropriate period.

Some famous cases

Harjas Singh vs Bata India Ltd:- The complainant purchased two pairs of kids’ articles from the respondentand they charged ₹4 for a carry bag from the complainant despite his protest because it was illegal to charge for the carry bag. The complainant approached the consumer court against the respondent for deficiency in service and unfair trade practices.

Judgment:- The court held the respondent guilty and directed the respondent to pay the complainant ₹4 for the carry bag, ₹1100 as compensation, and ₹5000 as litigation expenses.

Dipika Pallikal vs Axis Bank:- Dipika Pallikal former Padma Shri recipient filed a case against Axis Bank for deficiency in services when a transaction through her Axis Bank debit card failed at a hotel in the Netherlands despite having more than the required amount. She sued the bank for loss of reputation due to deficiency in their services. The bank claimed the incident was a case of “force majeure”, which means a natural and unavoidable catastrophe or an act of god, and beyond their control.

Judgement:- The court held the bank responsible for deficient service and directed it to pay 5lacs to the complainant as compensation and ₹5000 as costs.

Akash Kumar vs Penguin Books Pvt Ltd:- In this matter complaint purchased a book through an e-commerce platform from Penguin Books pvt ltd, but there was no MRP printed on that book. The complainant approached consumer court against the respondent for unfair trade practices.

Judgment:- The court held the respondent guilty and directed the respondent to pay ₹10000 to the complainant for mental agony, and ₹2500 towards costs, and further ordered the respondent to print MRP on the new copies of books.

What are the remedies available to a Consumer?

If a consumer believes he has been cheated or exploited by the seller he has the right to approach the Consumer courts of his respective jurisdiction. If the consumer court is satisfied with the claims of the consumer then the seller would have to:-

to remove the defect pointed out by the appropriate laboratory from the goods in question;
to replace the goods with new goods of similar description which shall be free from any defect;
to return to the complainant the price, or, as the case may be, the charges paid by the complainant along with such interest on such price or charges as may be decided;
to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party: Provided that the District Commission shall have the power to grant punitive damages in such circumstances as it deems fit;
to pay such amount as may be awarded by it as compensation in a product liability action under Chapter VI;
to remove the defects in goods or deficiencies in the services in question;
to discontinue the unfair trade practice or restrictive trade practice and not to repeat them;
not to offer the hazardous goods for sale;
to withdraw the hazardous goods from being offered for sale;
to cease manufacture of hazardous goods and to desist from offering hazardous services;
to pay such sum as may be determined by it, if it thinks that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently: Provided that the minimum amount of sum so payable shall not be less than twenty-five percent. of the value of such defective goods sold or service provided, as the case may be, to such consumers;
to issue corrective advertisements to neutralize the effect of misleading advertisements at the cost of the opposite party responsible for issuing such misleading advertisements;
to provide for adequate costs to parties; and
to cease issuing any misleading advertisements.

Conclusion

In essence, the Consumer Protection Act, 2019, not only strengthens the legal rights of consumers but also promotes ethical business practices, thereby contributing to a more just and equitable market. As consumers become more aware of their rights and the means to enforce them, this Act plays a crucial role in ensuring that consumer interests are safeguarded, and justice is accessible to all. The Act empowers consumers with a clear set of rights and offers efficient redressal mechanisms through its three-tier system of District, State, and National Commissions. With provisions for mediation, e-filing of complaints, and enhanced accountability, it fosters a fair and transparent consumer environment. Consumers should be aware of their rights and duties. They have to be an informed consumer before purchasing any product or service. However, if their rights have been violated or they have been exploited in any form they should not be hesitant to approach their appropriate Consumer court to claim redressal.

Important Links

Civil & Consumer Court fees Calculator

Consumer Court Jurisdiction Calculator

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Frequently Asked Questions: Consumer Protection Act in India

General Questions

Q1: What is the Consumer Protection Act?

A: The Consumer Protection Act is a law enacted in India to safeguard consumer interests and provide a separate legal forum for consumer disputes. The current version, enacted in 2019, replaced the earlier 1986 Act to address modern consumer issues and strengthen consumer rights.

Q2: Who is considered a consumer under the Act?

A: A consumer is any person who buys goods or services for consideration, which can be fully paid, promised, or partially paid and promised. However, purchases made for commercial purposes generally do not qualify under this definition, with some exceptions for self-employment.

Q3: What are the key consumer rights under the Consumer Protection Act?

A: The key consumer rights include: 1. Right to be protected against hazardous goods and services 2. Right to be informed about quality, quantity, and other aspects of goods/services 3. Right to be assured of access to a variety of goods/services at competitive prices 4. Right to be heard in appropriate consumer forums 5. Right to seek redressal against unfair trade practices 6. Right to consumer awareness and education

Consumer Courts and Complaints

Q4: What are the different levels of consumer courts in India?

A: There are three levels of consumer courts in India: 1. District Commission (for claims up to ₹50 lakhs) 2. State Commission (for claims between ₹50 lakhs and ₹2 crores) 3. National Commission (for claims above ₹2 crores)

Q5: How do I file a complaint in a consumer court?

A: To file a complaint: 1. Draft a complaint with relevant facts, issues, and relief sought 2. Attach supporting documents and evidence 3. Pay the prescribed fee based on the claim value 4. Submit the complaint to the appropriate consumer court based on jurisdiction

Q6: Do I need a lawyer to file a case in a consumer court?

A: No, you are not required to hire a lawyer to file or argue your case in a consumer court. However, it can be beneficial to have legal representation, especially for complex cases.

Specific Protections and Remedies

Q7: What constitutes an unfair trade practice?

A: Unfair trade practices include false representations about goods or services, misleading guarantees, false or misleading advertisements, and disparaging the goods or services of another person.

Q8: Can I file a complaint against false advertising?

A: Yes, the Consumer Protection Act 2019 specifically addresses false and misleading advertisements. You can file a complaint if an advertisement falsely describes a product/service, gives a false guarantee, or deliberately conceals important information.

Q9: What remedies are available if my complaint is successful?

A: Remedies may include: – Removal of defects from goods – Replacement of goods – Refund of price paid – Compensation for loss or injury – Discontinuation of unfair trade practices – Corrective advertisements – Punitive damages in certain cases

E-commerce and Modern Consumer Issues

Q10: Does the Consumer Protection Act cover e-commerce transactions?

A: Yes, the Consumer Protection Act 2019 specifically includes provisions to cover e-commerce platforms and transactions, addressing modern consumer concerns in the digital marketplace.

Q11: Can I file a complaint if I’m charged for a carry bag at a store?

A: Yes, as demonstrated in the case of Harjas Singh vs Bata India Ltd, charging for carry bags without the consumer’s consent can be considered an unfair trade practice, and you can file a complaint in the consumer court.

Jurisdiction and Appeals

Q12: Where should I file my complaint if the seller is from a different city?

A: Under the Consumer Protection Act 2019, you can file a complaint from your place of residence. This is a significant change from the 1986 Act, which required filing in the seller’s jurisdiction.

Q13: Can I appeal if I’m not satisfied with the consumer court’s decision?

A: Yes, you can appeal to a higher consumer court within the specified time limit: – From District Commission to State Commission: within 45 days – From State Commission to National Commission: within 30 days – From National Commission to Supreme Court: within 30 days Note that you may need to deposit 50% of the ordered amount when filing an appeal.

Product Liability and Safety

Q14: What is product liability under the Consumer Protection Act?

A: Product liability refers to the responsibility of a manufacturer, seller, or service provider to compensate for harm caused by defective products or services. The 2019 Act introduced specific provisions for product liability claims.

Q15: How does the Act protect consumers from hazardous products?

A: The Act gives consumers the right to be protected against marketing of goods and services which are hazardous to life and property. Consumer courts can order the withdrawal of hazardous goods from sale and cease the manufacture of such goods.

Mediation and Alternative Dispute Resolution

Q16: Is there any provision for mediation in consumer disputes?

A: Yes, the Consumer Protection Act 2019 introduced provisions for mediation as an alternative dispute resolution mechanism. This can help in faster and more amicable settlement of disputes.

Consumer Protection Authority

Q17: What is the Central Consumer Protection Authority (CCPA)?

A: The CCPA is a regulatory body established under the Consumer Protection Act 2019 to promote, protect, and enforce consumer rights. It can investigate consumer rights violations, issue safety notices, and take action against misleading advertisements.

Time Limits and Procedures

Q18: Is there a time limit for filing a consumer complaint?

A: Yes, a complaint should be filed within two years from the date on which the cause of action has arisen. However, the consumer court may entertain a complaint filed beyond this period if there’s sufficient cause for the delay.

Q19: How long does it take for a consumer case to be resolved?

A: The Act stipulates that consumer courts should try to dispose of cases within 3 months from the date of receipt of notice by the opposite party, where no analysis or testing of commodities is required. If analysis or testing is needed, the period is extended to 5 months.

Consumer Awareness and Education

Q20: How can I stay informed about my consumer rights?

A: You can: – Read official publications from the Ministry of Consumer Affairs – Attend consumer awareness programs – Follow updates from consumer rights organizations – Stay updated with news related to consumer protection – Refer to the Consumer Protection Act and its amendments

Specific Scenarios

Q21: Can I file a complaint if a product doesn’t have an MRP printed on it?

A: Yes, as demonstrated in the case of Akash Kumar vs Penguin Books Pvt Ltd, not printing the MRP on a product can be considered an unfair trade practice, and you can file a complaint in the consumer court.

Q22: What can I do if my debit card transaction fails despite having sufficient balance?

A: As seen in the case of Dipika Pallikal vs Axis Bank, you can file a complaint for deficiency in service. If the failure caused significant inconvenience or loss, you may be entitled to compensation.

Q23: Are there any protections against unfair contract terms?

A: Yes, the Consumer Protection Act 2019 empowers consumer courts to declare unfair contracts null and void. This protects consumers from one-sided, excessive, or unreasonable contract terms.

International Transactions

Q24: Does the Consumer Protection Act apply to goods or services purchased from foreign companies?

A: The Act can apply to foreign companies if they offer goods or services to Indian consumers. However, enforcement may be challenging in some cases, particularly if the company has no presence in India.

Future of Consumer Protection

Q25: How is the Consumer Protection Act adapting to new technologies and business models?

A: The 2019 Act introduced provisions for e-commerce and is designed to be more flexible to address emerging issues. The government can introduce new rules and guidelines as needed to keep pace with technological advancements and new business practices.

Also Read:

Hindu vs Muslim Law: Comprehensive Guide to Marriage, Divorce, Adoption and Succession in India

Juvenile Justice (Care and Protection of Children) Act, 2015 in India: Reformation and Rehabilitation

Right to Privacy in India: Exploring Article 21 and the Landmark Puttaswamy Judgment