Consumer Protection Act, 2019

Introduction

In today’s world, consumers often find themselves at the receiving end of unfair trade practices, defective goods, or unsatisfactory services. To safeguard the rights of consumers and ensure their interests are protected, the Indian government introduced the Consumer Protection Act, 2019. This Act aims to create a robust and comprehensive framework that empowers consumers and holds businesses accountable for their actions.

The Consumer Protection Act, 2019, is a landmark legislation that replaces the previous Consumer Protection Act of 1986. It was passed by the Indian Parliament on August 9, 2019, and is designed to address the evolving challenges faced by consumers in the modern marketplace.

The Act establishes various authorities and mechanisms to ensure timely and effective resolution of consumer disputes. It encompasses a wide range of areas, including e-commerce, product liability, misleading advertisements, and unfair trade practices, among others.

Key Objectives under the Consumer Protection Act

The main goals of the Consumer Protection Act are:

• Protecting your safety

The Act prohibits the marketing of products that could be hazardous to your life or property. Your well-being is the top priority.

• Transparency about products

Sellers must provide clear information about the quality, quantity, purity, and pricing of goods. This transparency helps you make informed choices as a consumer.

• Establishing consumer councils

The Act mandates the creation of consumer protection councils at various levels to champion your interests and rights.

• Ensuring competitive prices

Wherever possible, the Act seeks to ensure that you have access to goods at competitive prices, preventing unfair monopolistic practices.

• Redressal for unfair practices

If you face any unfair trade practices or exploitation, the Act provides mechanisms for you to seek redressal and justice.

• Resolving disputes efficiently

Special authorities are appointed to resolve consumer disputes in a timely and effective manner, saving you from lengthy legal battles.

• Penalising offences

The Act lays down penalties for offences committed against consumers, acting as a deterrent against unscrupulous practices.

• Prioritising consumer welfare

The Act ensures that consumer welfare receives due consideration at appropriate forums whenever issues or disputes arise.

• Promoting consumer education

The Act emphasises the importance of consumer education, empowering you to be aware of your rights and responsibilities.

•  Alternate dispute resolution

The Act encourages the use of alternate dispute resolution mechanisms, such as mediation or conciliation, for speedy resolution of consumer complaints.

Consumer Protection Council under the Consumer Protection Act

Central Consumer Protection Council

At the national level, the Central Consumer Protection Council (Central Council) acts as an advisory body to the government. It is chaired by the Minister-in-charge of the Department of Consumer Affairs and comprises other official and non-official members representing various interests.

The primary objective of the Central Council is to provide advice on promoting and protecting consumer rights under the Consumer Protection Act. It meets at least once a year and follows prescribed procedures for conducting its business.

State Consumer Protection Councils

Every state in India has a State Consumer Protection Council (State Council), established by the respective state government. These councils are advisory bodies chaired by the Minister-in-charge of Consumer Affairs in the state.

The State Councils consist of other official and non-official members representing various interests, as well as up to ten members nominated by the Central Government. They meet at least twice a year and follow prescribed procedures for conducting their business.

The main objective of the State Councils is to render advice on promoting and protecting consumer rights within their respective states, in accordance with the Consumer Protection Act.

District Consumer Protection Councils

At the district level, District Consumer Protection Councils (District Councils) are established by the state governments. These councils are advisory bodies chaired by the District Collector (or an equivalent authority).

The District Councils comprise other official and non-official members representing various interests within the district. They meet at least twice a year and follow prescribed procedures for conducting their business.

The primary objective of the District Councils is to provide advice on promoting and protecting consumer rights within their respective districts, in line with the Consumer Protection Act.

Importance of Consumer Protection Councils

The consumer protection councils play a vital role in ensuring that consumer rights are upheld and protected across the country. They serve as advisory bodies, providing valuable inputs and recommendations to the government on issues related to consumer welfare.

These councils help in creating awareness about consumer rights, addressing grievances, and suggesting measures to improve consumer protection mechanisms. By involving stakeholders from various backgrounds and interests, the councils ensure that diverse perspectives are considered when formulating policies and strategies related to consumer protection.

Central Consumer Protection Authority 

The Central Government has established a Central Consumer Protection Authority (CCPA) to safeguard the rights of consumers and protect them from unfair trade practices, false or misleading advertisements, and other activities that may harm their interests.

What is the CCPA? 

The CCPA is a regulatory body consisting of a Chief Commissioner and several other Commissioners appointed by the Central Government. Its primary responsibilities include:

1. Regulating matters related to violation of consumer rights.
2. Addressing unfair trade practices and misleading advertisements.
3. Promoting, protecting, and enforcing consumer rights as a collective.

The CCPA’s headquarters is located in the National Capital Region of Delhi, and it may have regional and other offices across India as decided by the Central Government.

Who Leads the CCPA? 

The Chief Commissioner heads the CCPA and exercises general superintendence, direction, and control over administrative matters. The Chief Commissioner can delegate certain administrative powers to other Commissioners or officers within the CCPA.

Investigation Wing 

The CCPA has an Investigation Wing led by a Director-General, whose role is to conduct inquiries or investigations as directed by the Central Authority. The Investigation Wing comprises Additional Director-Generals, Directors, Joint Directors, Deputy Directors, and Assistant Directors, appointed by the Central Government from individuals with relevant investigation experience and qualifications.

Lodging Complaints 

If you face any violation of consumer rights, unfair trade practices, or false or misleading advertisements that harm the interests of consumers as a class, you can file a complaint with the following authorities:

1. District Collector (or an officer with a similar designation) within your jurisdiction.
2. Commissioner of the CCPA’s regional office.
3. The Central Authority (CCPA) directly.

Complaints can be submitted in writing or through electronic modes.

Consumer Complaint Handling Process

When a consumer complaint is received by the District Collector, CCPA Regional Commissioner, or Central Authority, it will go through an inquiry or investigation process.

The District Collector can directly look into complaints within their jurisdiction regarding consumer rights violations, unfair trade practices, and misleading advertisements affecting consumers as a class. After an inquiry, the District Collector will submit their report to the Central Authority or Regional Commissioner.

The CPA’s Investigation Wing, headed by the Director-General, also has powers to conduct inquiries and investigations into such complaints as directed by the Central Authority itself.

Regulations and Procedures

The CCPA has been empowered to regulate its own procedures for conducting business and allocating work among the Chief Commissioner and other Commissioners through regulations it will set.

The Central Government will prescribe rules around the qualifications, recruitment process, appointment procedure, tenure, salaries/allowances, resignation, removal, and other service conditions for the Chief Commissioner and Commissioners.

The CCPA can also engage experts and professionals with specialised knowledge in areas like consumer rights, law, medicine, engineering, economics etc. to assist in discharging its functions effectively.

No Procedural Lapses to Invalidate Importantly, any vacancy, defect in appointment, or irregularity in procedures of the CCPA shall not invalidate its acts or proceedings, as long as the substantive merits of the case are not affected.

Powers and Functions of Central Consumer Protection Authority under the Consumer Protection Authority

Its primary responsibilities revolve around preventing unfair trade practices, misleading advertisements, and violations of consumer rights.

Powers and Functions:

1. Protecting Consumer Rights: The Central Authority’s core mandate is to protect, promote, and enforce the rights of consumers as a class. It actively works to prevent any violation of consumer rights under the Act.
2. Preventing Unfair Trade Practices: The Authority takes measures to prevent unfair trade practices by individuals or businesses. It ensures that no one engages in practices that harm consumer interests.
3. Monitoring Advertisements: The Central Authority keeps a close watch on advertisements for goods and services. It ensures that no false or misleading advertisements are made, violating the provisions of the Act or its rules and regulations.
4. Investigations and Inquiries: The Authority can conduct inquiries or investigations, either on its own or based on complaints received, into alleged violations of consumer rights or unfair trade practices.
5. Legal Recourse: The Central Authority has the power to file complaints before the District, State, or National Consumer Commissions, depending on the case. It can also intervene in ongoing proceedings related to consumer rights violations.
6. Advisory and Recommendations: The Authority reviews matters related to consumer rights and recommends appropriate remedial measures for their effective implementation. It can also advise the central and state governments on consumer welfare measures.
7. Research and Awareness: The Central Authority undertakes and promotes research in the field of consumer rights and spreads awareness on the subject through various means.
8. Safety Notices: If any goods or services are found to be dangerous, hazardous, or unsafe, the Authority can issue safety notices to alert consumers about the potential risks.
9. Recall and Reimbursement: In cases of violations, the Central Authority can order the recall of goods or withdrawal of services that are deemed unsafe. It can also direct reimbursement of prices to consumers who purchased such goods or services.
10. Penalties for Misleading Ads: The Authority has the power to impose penalties on manufacturers, endorsers, or publishers involved in false or misleading advertisements. It can also prohibit endorsers from making endorsements for a specified period.

Search and Seizure Process under the Consumer Protection Act

1. Preliminary Inquiry: If the Director-General or any authorised officer, or the District Collector, has reason to believe that a person has violated consumer rights, engaged in unfair trade practices, or caused false or misleading advertisements, they can initiate an investigation.
2. Search and Seizure: During the investigation, the authorised officer can enter premises at a reasonable time and search for relevant documents, records, articles, or other evidence. They can seize these materials as part of the investigation.
3. Inventory: The officer must make a note or an inventory of the seized records or articles.
4. Production of Documents: The officer can also require any person to produce relevant records, registers, or other documents.
5. Adherence to Criminal Procedure Code: The provisions of the Code of Criminal Procedure relating to search and seizure apply to these operations under the Consumer Protection Act.

Safeguards and Procedures under The Consumer Protection Act

1. Return of Seized Materials: Any seized documents, records, or articles must be returned to the person from whom they were seized within 20 days. However, certified copies or extracts can be taken before returning the materials.
2. Perishable Items: If the seized articles are subject to speedy or natural decay, the Director-General or authorised officer can dispose of them in a prescribed manner.
3. Analysis or Tests: For articles other than perishable items, provisions related to analysis or tests, as mentioned in the Act, shall apply.

Accountability and Oversight under the Consumer Protection Act

1. Annual Reports: The Central Authority must prepare an annual report detailing its activities, reports, and returns, which are forwarded to the Central Government and laid before the Parliament.
2. Accounts and Audit: The Central Authority must maintain proper accounts and records, and prepare an annual statement of accounts. These accounts are audited by the Comptroller and Auditor-General of India at specified intervals.
3. Grants: The Central Government can provide grants to the Central Authority for the purposes of the Consumer Protection Act, subject to appropriation by the Parliament.

Establishment and Composition of Consumer Disputes Redressal Commissions

The Consumer Protection Act establishes a three-tier system of Consumer Disputes Redressal Commissions to address consumer grievances efficiently. This section outlines the establishment and composition of these commissions at the District, State, and National levels.

1. District Commission

The State Government is responsible for establishing District Consumer Disputes Redressal Commissions, known as District Commissions, in each district. If deemed necessary, multiple District Commissions may be established within a single district.

Composition:

1. A President
2. Not less than two members, with the maximum number prescribed in consultation with the Central Government

The District Commission primarily functions at the district headquarters but may operate from other locations within the district as notified by the State Government in consultation with the State Commission.

1. State Commission

Each State Government is mandated to establish a State Consumer Disputes Redressal Commission, referred to as the State Commission.

Composition:

1. A President
2. Not less than four members, with the maximum number prescribed in consultation with the Central Government

The State Commission typically operates from the state capital but may function at other locations as notified by the State Government. Additionally, the State Government may establish regional benches of the State Commission where necessary.

1. National Commission

The Central Government is tasked with establishing the National Consumer Disputes Redressal Commission, known as the National Commission.

Composition:

1. A President
2. Not less than four members, with the maximum number as prescribed

The National Commission ordinarily functions in the National Capital Region but may operate from other locations as notified by the Central Government in consultation with the National Commission. The Central Government may also establish regional benches of the National Commission as deemed necessary.

For all three levels of commissions, the government provides the necessary officers and employees to assist in discharging their functions. The officers and employees work under the general superintendence of the respective commission’s President.

Qualifications, Appointments, and Terms of Service for Consumer Disputes Redressal Commissions

The Consumer Protection Act establishes a three-tier system of Consumer Disputes Redressal Commissions at the district, state, and national levels. Each of these commissions has specific requirements regarding the qualifications, appointments, and terms of service for their members. This section outlines these aspects for each level of commission.

1. District Commission

The Central Government is responsible for setting the qualifications, method of recruitment, and appointment procedures for the President and members of the District Commission. These details are to be provided through notifications in the form of rules.

The State Government is tasked with determining the salaries, allowances, and other terms and conditions of service for the President and members of the District Commission. This information is also to be provided through notifications.

While specific details are not provided in the shared content, it’s clear that the Central and State Governments play crucial roles in defining the parameters for District Commission appointments and service conditions.

1. State Commission

Similar to the District Commission, the Central Government is responsible for establishing rules regarding the qualifications, method of recruitment, and appointment procedures for the President and members of the State Commission. These rules are to be provided through notifications.

The State Government is charged with determining the salaries, allowances, and other terms and conditions of service for the President and members of the State Commission. This information is to be notified by the State Government.

The Act includes a transitional provision stating that any person appointed as President or member of the State Commission immediately before the commencement of this Act shall continue to hold office until the completion of their term.

1. National Commission

For the National Commission, the Central Government is authorised to make rules regarding qualifications, appointment, term of office, salaries and allowances, resignation, removal, and other terms and conditions of service for the President and members.

The Act specifies that the President and members of the National Commission shall hold office for a term specified in the rules made by the Central Government, but not exceeding five years from the date of assuming office. They are eligible for reappointment.

Age limits are also set for the National Commission members:

• The President cannot hold office beyond the age of seventy years.
• Other members cannot hold office beyond the age of sixty-seven years.

It’s important to note that neither the salary and allowances nor the other terms and conditions of service of the President and members of the National Commission can be varied to their disadvantage after appointment.

The Act also includes a transitional provision for the National Commission, stating that the President and members appointed immediately before the commencement of section 177 of the Finance Act, 2017, shall continue to be governed by the provisions of the Consumer Protection Act, 1986, and the rules made thereunder.

An additional provision (1A) states that for appointments made after the commencement of the Tribunal Reforms Act, 2021, the qualifications, appointment, term of office, salaries and allowances, resignation, removal, and other terms and conditions of service of the President and members of the National Commission shall be governed by the provisions of that Act.

Jurisdiction and Powers of Consumer Disputes Redressal Commissions

The Consumer Protection Act establishes a three-tier system of Consumer Disputes Redressal Commissions to address consumer grievances efficiently. This section outlines the jurisdiction and powers of the District, State, and National Commissions.

1. District Commission

Jurisdiction: The District Commission has jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed one crore rupees. However, the Central Government may prescribe a different value if deemed necessary.

Powers:

1. The District Commission can order the removal of defects from goods, replacement of goods, or refund of the price paid.
2. It can direct compensation for any loss or injury suffered by consumers due to negligence of the opposite party.
3. The Commission has the authority to discontinue unfair trade practices and order corrective advertisements.
4. It can issue orders to withdraw hazardous goods from sale or cease manufacture of such goods.
5. The District Commission possesses powers similar to a civil court in matters such as summoning witnesses, discovery and production of documents, and receiving evidence on affidavits.

1. State Commission

Jurisdiction: The State Commission has jurisdiction over:

1. Complaints where the value of goods or services paid as consideration exceeds one crore rupees but does not exceed ten crore rupees.
2. Complaints against unfair contracts where the value does not exceed ten crore rupees.
3. Appeals against orders of any District Commission within the State.

Powers:

1. The State Commission can call for records and pass appropriate orders in any consumer dispute pending before or decided by a District Commission within the State.
2. It has the power to declare terms of contracts that are unfair to consumers as null and void.
3. The Commission can transfer cases from one District Commission to another within the State if the interest of justice so requires.

1. National Commission

Jurisdiction: The National Commission has jurisdiction to entertain:

1. Complaints where the value of goods or services paid as consideration exceeds ten crore rupees.
2. Complaints against unfair contracts where the value exceeds ten crore rupees.
3. Appeals against orders of any State Commission.
4. Appeals against orders of the Central Authority.

Powers:

1. The National Commission can call for records and pass appropriate orders in any consumer dispute pending before or decided by a State Commission.
2. It has the authority to declare terms of contracts that are unfair to consumers as null and void.
3. The Commission can transfer cases from the District Commission of one State to another State, or from one State Commission to another State Commission.
4. It has administrative control over all State Commissions in matters such as monitoring performance, investigating allegations against Presidents and members, and issuing instructions for uniform procedures.

Complaint Filing and Handling Procedures in Consumer Disputes Redressal Commissions

Consumer protection laws in India have established a robust system for addressing consumer grievances through Consumer Disputes Redressal Commissions. This section outlines the procedures for filing complaints, their admission, and the subsequent proceedings and hearings.

1. Filing of Complaints

Consumers can file complaints with the appropriate commission based on the value of goods or services in question. The process involves:

1. Eligibility: Complaints can be filed by individual consumers, recognized consumer associations, multiple consumers with the same interest, or government authorities.
2. Jurisdiction: Complaints must be filed within the appropriate commission’s jurisdiction, which is determined by factors such as the opposite party’s location, the cause of action, or the complainant’s residence.
3. Time Limit: Complaints should be filed within two years from the date on which the cause of action arose. However, the commission may admit complaints after this period if sufficient cause for delay is shown.
4. Format and Fees: Complaints must be accompanied by prescribed fees and can be filed electronically in the manner prescribed.

1. Admission of Complaints

Once a complaint is filed, the commission follows these steps:

1. Initial Review: The commission examines the complaint to determine its admissibility.
2. Time Frame: The decision on admissibility is typically made within 21 days of filing. If no decision is made within this period, the complaint is deemed admitted.
3. Rejection: A complaint may be rejected, but not without giving the complainant an opportunity to be heard.
4. Mediation Option: At the first hearing or later, if elements of a possible settlement exist, the commission may direct parties to attempt mediation.

1. Proceedings and Hearings

After a complaint is admitted, the proceedings unfold as follows:

1. Notice to Opposite Party: The commission sends a copy of the complaint to the opposite party, directing them to respond within 30 days (extendable by 15 days).
2. Analysis of Goods: If necessary, the commission may order testing or analysis of the goods in question at an appropriate laboratory.
3. Evidence Submission: Complaints are typically heard based on affidavits and documentary evidence. In-person hearings or video conferencing may be allowed if sufficient cause is shown.
4. Timeframe: Efforts are made to dispose of complaints within 3 months (5 months if product testing is required).
5. Interim Orders: The commission may pass interim orders as deemed necessary during the proceedings.
6. Powers of Civil Court: Commissions have powers similar to a civil court in matters such as summoning witnesses, requiring document production, and receiving evidence on affidavits.
7. Judicial Proceedings: All proceedings before the commission are deemed to be judicial proceedings.
8. Final Order: The commission issues a final order after considering all evidence and arguments. This order may include directions for removing defects, replacing goods, refunding amounts, or paying compensation.
9. Appeal: Aggrieved parties can appeal against the order to a higher commission or the Supreme Court, as applicable, within specified time limits.

Enforcement and Penalties in Consumer Disputes Redressal

The Consumer Protection Act provides robust mechanisms for enforcing orders passed by Consumer Disputes Redressal Commissions and penalising non-compliance. This system ensures that the rights of consumers are not only recognized but also effectively protected.

1. Enforcement of Commission Orders

Section 71 of the Act addresses the enforcement of orders passed by District Commissions, State Commissions, and the National Commission. It stipulates that every order made by these commissions shall be enforced in the same manner as if it were a decree made by a court in a suit.

The provision specifically refers to Order XXI of the First Schedule to the Code of Civil Procedure, 1908, which deals with the execution of decrees. This application is subject to the modification that every reference to a decree in the Code shall be construed as a reference to an order made under the Consumer Protection Act.

This approach gives the commission orders the same weight and enforceability as court decrees, ensuring that they are taken seriously and implemented effectively.

1. Penalties for Non-compliance

To further strengthen the enforcement mechanism, Section 72 of the Act prescribes penalties for non-compliance with commission orders. The penalties are stringent, reflecting the seriousness with which the law views violations of consumer rights:

1. Imprisonment: The term of imprisonment for non-compliance shall not be less than one month but may extend up to three years.
2. Fine: The monetary penalty ranges from a minimum of twenty-five thousand rupees to a maximum of one lakh rupees.
3. Combined Penalty: The Act allows for both imprisonment and fine to be imposed simultaneously.

Importantly, the Act empowers the District Commission, State Commission, and National Commission to try offences under this section. It confers upon them the powers of a Judicial Magistrate of the first class for this purpose. This provision allows for speedy trials of non-compliance cases without the need to approach separate criminal courts.

Moreover, the Act specifies that these offences shall be tried summarily by the respective commissions, further expediting the process of punishing non-compliance.

1. Appeals against Penalty Orders

Section 73 of the Act provides for appeals against orders passed under Section 72 (penalties for non-compliance). The appeal process is structured as follows:

1. Appeals from District Commission orders lie with the State Commission.
2. Appeals from State Commission orders lie with the National Commission.
3. Appeals from National Commission orders lie with the Supreme Court.

These appeals can be made both on questions of fact and law, providing a comprehensive review mechanism.

The Act specifies that except for these prescribed appeals, no appeal shall lie before any court against an order of the District Commission, State Commission, or National Commission.

The time limit for filing an appeal is 30 days from the date of the order. However, the appellate authority (State Commission, National Commission, or Supreme Court) may entertain an appeal after this period if sufficient cause for the delay is shown.

This multi-tiered appeal system ensures that parties have recourse against unfair penalty orders while maintaining the authority of the consumer dispute redressal commissions.

Mediation under the Consumer Protection Act

The Consumer Protection Act has introduced a robust framework for consumer mediation, providing an efficient alternative to traditional litigation for resolving consumer disputes. 

Establishment of Consumer Mediation Cells

The Act mandates the establishment of consumer mediation cells at various levels of the consumer dispute resolution hierarchy. State governments are required to set up these cells attached to District and State Commissions, while the Central Government is tasked with establishing cells for the National Commission and its regional benches. These cells serve as the operational hubs for mediation activities.

Composition and Functions of Mediation Cells

Consumer mediation cells comprise prescribed personnel and maintain essential records, including:

1. A roster of empanelled mediators
2. A catalogue of cases handled
3. Proceedings documentation
4. Other information as specified by regulations

These cells are required to submit quarterly reports to their respective Commissions, ensuring transparency and accountability in the mediation process.

Mediator Empanelment and Selection

The Act outlines a structured approach for creating a panel of qualified mediators:

1. Selection Committee: A committee consisting of the Commission’s President and a member oversees the empanelment process.
2. Qualifications and Training: Specific qualifications, experience, and training requirements are prescribed for mediators.
3. Terms of Service: The empanelment process, fee structure, and code of conduct for mediators are clearly defined.
4. Tenure: Mediators are empanelled for a five-year term, with the possibility of re-empanelment.

Mediator Nomination and Ethical Considerations

When nominating a mediator for a specific dispute, the Commission considers the individual’s suitability for the case at hand. Mediators are bound by a duty of disclosure, requiring them to reveal any personal, professional, or financial interests that may affect their impartiality. The Commission retains the authority to replace mediators if concerns about their neutrality arise.

Mediation Procedure

The mediation process is designed to be systematic and efficient:

1. Venue: Mediation sessions are conducted in the consumer mediation cell attached to the relevant Commission.
2. Guiding Principles: Mediators are instructed to consider the rights and obligations of parties, trade usages, and other relevant factors while adhering to principles of natural justice.
3. Time-bound Process: The mediation must be completed within a specified timeframe and manner as prescribed by regulations.

Outcomes and Settlement Procedures

The Act provides for various potential outcomes of the mediation process:

1. Full Settlement: If all issues are resolved, the agreement is documented, signed by the parties, and forwarded to the Commission along with the mediator’s report.
2. Partial Settlement: In cases of partial agreement, resolved issues are recorded, and unresolved matters proceed through the standard dispute resolution process.
3. No Settlement: If an agreement cannot be reached, the mediator submits a report to the Commission, and the dispute continues through normal channels.

Commission’s Role in Formalizing Settlements

The relevant Commission plays a crucial role in formalising mediation outcomes:

1. Order Issuance: Within seven days of receiving the settlement report, the Commission must pass an order recording the settlement.
2. Partial Settlements: In cases of partial settlement, the Commission records the resolved issues and continues to hear the remaining matters.

Product Liability Under the Consumer Protection Act

The Consumer Protection Act includes a crucial section on Product Liability, which establishes a framework for consumer rights and manufacturer, service provider, and seller responsibilities. This section of the article  aims to elucidate the key aspects of product liability legislation and its implications for various stakeholders.

Scope and Application

The Product Liability chapter applies to all compensation claims arising from harm caused by defective products. It encompasses actions against product manufacturers, service providers, and sellers, providing a comprehensive protective measure for consumers.

Key Stakeholders and Their Liabilities

1. Product Manufacturers: Manufacturers bear liability in cases involving:
   • Manufacturing defects
   • Design flaws
   • Deviations from manufacturing specifications
   • Non-conformity to express warranties
   • Inadequate instructions or warnings for proper usage
2. Notably, manufacturers may be held liable even in the absence of negligence or fraud in making express product warranties.
3. Product Service Providers: Service providers can be held accountable for:
   • Substandard or inadequate service quality
   • Acts of omission, commission, or negligence causing harm
   • Failure to provide adequate instructions or warnings
   • Non-conformity to express warranties or contractual terms
4. Product Sellers: Sellers, distinct from manufacturers, may be liable if they:
   • Exercised substantial control over product design, testing, or packaging
   • Modified the product, contributing to harm
   • Made independent express warranties
   • Sold products with unidentifiable or unreachable manufacturers
   • Failed to exercise reasonable care in product assembly, inspection, or maintenance

Exceptions and Limitations

The Act provides certain exceptions to product liability actions:

• Misuse, alteration, or modification of the product by the consumer
• Adequate warnings provided to employers for workplace products
• Proper warnings given for component products
• Products intended for expert use with appropriate warnings provided
• Consumer use of the product under the influence of alcohol or unprescribed drugs

Furthermore, manufacturers are exempt from liability for failing to warn about dangers that are obvious or commonly known to users.

Implications and Significance

This legislation represents a significant step in consumer protection, establishing clear guidelines for product liability across the manufacturing, service, and retail sectors. It encourages higher standards of product safety and quality while providing consumers with legal recourse in cases of harm or damage caused by defective products or services.

For businesses, this underscores the importance of rigorous quality control, clear communication of product risks and usage instructions, and adherence to express warranties. For consumers, it reinforces the need for proper product usage and attention to provided warnings and instructions.

Offences and Penalties under the Consumer Protection Act

The Consumer Protection Act establishes a robust framework of offences and penalties to safeguard consumer rights and promote ethical business practices. This legislation addresses various forms of consumer exploitation and sets clear consequences for violations.

Non-compliance with Central Authority directives can result in imprisonment up to six months, fines up to 20 lakh rupees, or both. The Act takes a strong stance against false or misleading advertisements, with first-time offenders facing up to two years in prison and fines up to 10 lakh rupees. Repeat offenders may see increased sentences of up to five years and fines up to 50 lakh rupees.

Product adulteration and dealing in spurious goods are treated as serious offences. Penalties vary based on the harm caused to consumers, ranging from six months imprisonment and 1 lakh rupee fines for cases with no injury, to life imprisonment and minimum 10 lakh rupee fines for incidents resulting in consumer deaths. Cases involving grievous harm or death are treated as cognizable and non-bailable offences.

The Act also allows courts to suspend or cancel business licences of offenders, adding another layer of deterrence. To prevent abuse of power, officials conducting unwarranted searches can face imprisonment up to one year or fines up to 10,000 rupees.

Importantly, certain offences can only be prosecuted based on complaints from the Central Authority or its authorised officers, ensuring proper oversight of legal proceedings.

These provisions collectively aim to create a marketplace where consumer safety and honest business practices are paramount. They serve as both a deterrent to unethical behaviour and a guide for businesses striving for compliance. For consumers, understanding these protections empowers them to make informed decisions and seek redress when their rights are violated.

Conclusion

The Consumer Protection Act, 2019 represents a significant leap forward in safeguarding consumer rights in India. By addressing the shortcomings of its predecessor, the 1986 Act, this new legislation has ushered in a more comprehensive and modernised approach to consumer protection. The Act’s introduction of concepts such as product liability, unfair contracts, and e-commerce regulations demonstrates its responsiveness to evolving market dynamics and technological advancements.

Key improvements, including the establishment of the Central Consumer Protection Authority, the provision for class action suits, and the inclusion of endorsers’ liability, have substantially strengthened the consumer’s position in the marketplace. The Act’s emphasis on alternative dispute resolution mechanisms and e-filing of complaints reflects a commitment to accessibility and efficiency in addressing consumer grievances.

Moreover, the expanded definition of ‘consumer’ and the Act’s applicability to all modes of transactions, including online purchases, underscore its relevance in today’s digital age. By imposing stricter penalties for misleading advertisements and unfair trade practices, the Act serves as a deterrent against unethical business conduct.

In essence, the Consumer Protection Act, 2019 marks a pivotal shift in India’s consumer rights landscape. It not only empowers consumers with enhanced rights and protections but also places greater responsibility on businesses to maintain transparency and fairness. As this Act continues to be implemented and interpreted, it is poised to foster a more equitable marketplace, benefiting both consumers and ethical businesses alike.

The success of this legislation will ultimately depend on effective implementation, consumer awareness, and the responsiveness of the newly established authorities. Nevertheless, the Consumer Protection Act, 2019 stands as a testament to India’s commitment to safeguarding consumer interests in an increasingly complex and globalized economy.