Consumer Protection Laws in India

Introduction

Consumer protection laws in India are pivotal in safeguarding the interests and rights of consumers across the country. Consumer means any person who buys any goods or hires or avails of any service, for a consideration, either online or through offline modes. Further, any person who uses any goods or hires or avails any services with the approval of any other person who has paid consideration for such goods or services, is also considered to be a consumer under the Consumer Protection Act, 2019 [Section 2(7)].

Consumer Protection Act, 2019

Consumer protection laws in India have evolved significantly over the years to provide robust safeguards against unfair trade practices and ensure that consumers are empowered with rights and avenues for redressal. The cornerstone of consumer protection in India is the Consumer Protection Act, 2019 (hereinafter ‘The Act’), which replaced the earlier Consumer Protection Act, 1986, aiming to address contemporary challenges and enhance consumer welfare.

The consumer protection law applies to:
1. consumers;
2. product manufacturers;
3. product sellers;
4. product service providers;
5. traders;
6. advertising agencies;
7. endorsers; and
8. e-commerce market players.

The main objective of the Consumer Protection Act is to provide better protection of consumers and establish a strong mechanism for the settlement of consumer disputes. The Consumer Protection Act provides right to [Section 2(9)] of the Act]:

• Protect against the marketing of goods which are dangerous to life and property;
• Inform about the quality, quantity, 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 exploitation of consumers;
• Consumer education.

Rights and Responsibilities of Consumers:

Consumers have certain rights and responsibilities that help ensure fair and transparent transactions in the marketplace.
The Consumer Protection Act, 2019, enumerates several rights of consumers, including the right to [Section 2(9) of the Act]:

1. Safety: Protection from hazardous goods and services.
2. Information: Access accurate information about products and services.
3. Choice: Choose from a variety of goods and services at competitive prices.
4. Representation: Consumers have the right to be heard and represented in matters affecting their interests.
5. Redressal: Seek redressal against unfair trade practices and exploitation.
6. Education: Be educated about consumer rights and responsibilities.

Responsibilities of Consumers

1. Responsibility to Be Informed: Consumers have a responsibility to gather accurate information about products and services before making a purchase. This includes understanding the product’s features, pricing, terms of sale, and any associated risks.
2. Responsibility to Make Informed Choices: Consumers should use the information they have gathered to make sensible choices that meet their needs and preferences. Making informed choices contributes to a fair and competitive marketplace.
3. Responsibility to Exercise Caution: Consumers should exercise caution while purchasing goods or services, particularly when dealing with unfamiliar brands or high-value transactions. This includes verifying product quality, authenticity, and reliability of sellers.
4. Responsibility to Avoid Waste: Consumers should be mindful of minimizing wastage of goods and resources. This promotes sustainability and responsible consumption practices.
5. Responsibility to Assert Rights: Consumers have a responsibility to assert their rights when they believe they have been misled, cheated, or treated unfairly. This may involve filing complaints with consumer forums, seeking legal advice, or participating in consumer advocacy initiatives.
6. Responsibility to Respect Other’s Rights: Consumers should respect the rights of other consumers, as well as the rights of businesses and service providers. This includes paying for goods and services promptly and treating sellers and service providers with fairness and respect.

Consumer Dispute Redressal Mechanism in India

Consumer dispute redressal mechanisms in India are structured to provide consumers with accessible and efficient avenues for resolving grievances related to goods and services. These mechanisms are primarily governed by the Consumer Protection Act, 2019, which aims to safeguard consumer rights and ensure speedy resolution of disputes. Following is an overview of the consumer dispute redressal mechanism in India:

1. Consumer Forums:
i. District Consumer Disputes Redressal Forum (DCDRF): This forum operates at the district level and handles consumer complaints involving goods or services worth up to Rs. 1 crore (Section 34 of the Act). It is presided over by a District Judge and has jurisdiction over cases within the district.
ii. State Consumer Disputes Redressal Commission (SCDRC): The SCDRC operates at the state level and hears appeals against decisions of the DCDRF, as well as original complaints involving goods or services worth between Rs. 1 crore and Rs. 10 crores (Section 47 of the Act). It is headed by a sitting or retired High Court judge.
iii. National Consumer Disputes Redressal Commission (NCDRC): The NCDRC is the apex consumer disputes redressal body in India. It hears appeals against decisions of the SCDRC and handles original complaints involving goods or services worth over Rs. 10 crores (Section 58 of the Act). It is headed by a sitting or retired Supreme Court judge.
2. Jurisdiction and Remedies:
• Consumer forums have jurisdiction to adjudicate disputes related to defects in goods, deficiency in services, unfair trade practices, overcharging, non-compliance with product standards, etc.
• Remedies available to consumers through these forums include compensation for damages, replacement of defective goods, refund of the purchase price, removal of defects in goods, cessation of unfair trade practices, and payment of costs incurred during the complaint process.
3. Procedure:
• Consumers can file complaints in consumer forums either individually or through a recognized consumer association.
• Complaints must be filed within the specified time limit from the date of the cause of action (e.g., date of purchase or service).
• Consumer forums follow a summary procedure and strive for expeditious disposal of cases. Mediation and conciliation are encouraged as alternative dispute resolution methods to achieve amicable settlements.
4. Appeal Process:
• Decisions of the District Forum can be appealed in the State Commission within 30 days (Section 41 of the Act).
• Decisions of the State Commission can be appealed in the National Commission within 30 days (Section 51 of the Act).
• Further appeals can be made to the Supreme Court of India within 30 days on questions of law arising from the decision of the National Commission (Section 67 of the Act).

Recent Developments and Case Laws

• In the case of M/S Daimler Chrysler India Pvt. Ltd. v. M/S Controls & Switchgear Company Ltd., the Hon’ble Supreme Court of India directed Mercedes Benz India Private Limited to refund ₹36 lakh to M/s Controls and Switchgear Company Limited (complainant) for malfunctioning in the car bought by the latter. The Apex Court upheld the order of National Consumer Disputes Redressal Commission (NCDRC) and held that high end luxury cars are not purchased to suffer discomfort especially when they promote them as the safest automobile in the world.

• Additionally, in the case of Bar of Indian Lawyers v. D.K. Gandhi PS National Institute of Communicable Diseases and Anr., the Hon’ble Supreme Court of India held that advocates would not be covered under the ambit of the Consumer Protection Act, 2019 for deficiency of service and differentiated between a commercial enterprise or business with a ‘profession’. The apex court observed that the former has a trader-consumer relationship, and the latter was a fiduciary relationship between a professional. “Professionals could not be called businessmen or traders, nor clients or patients be called ‘consumers’.
  

Conclusion

Therefore, consumer protection laws in India aim to create a conducive environment where consumers can make informed choices without fear of exploitation. By understanding and exercising the rights and responsibilities consumers can contribute to a fair and equitable marketplace while protecting their own interests and promoting responsible consumption practices.

References

1. The Consumer Protection Act, 2019
2. FAQs on Consumer Protection Act 2019, https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/FAQ.pdf
3. Sidharth Shankar Raju, Prof. (Dr.) Hare Krishan Singh, An Examination, review and analysis of consumer protection and the consumer protection act in India, https://www.researchgate.net/publication/336305848_An_examination_review_and_analysis_of_Consumer_protection_and_the_Consumer_Protection_Act_1986_in_India
4. Consumer Rights, Department of Consumer Affairs, https://consumeraffairs.nic.in/organisation-and-units/division/consumer-protection-unit/consumer-rights
5. Division Two, Commentary on Consumer Protection Act, National Consumer Dispute Redressal Commission, https://ncdrc.nic.in/bare_acts/1_1_2.html
6. M/S Daimler Chrysler India Pvt. Ltd. v. M/S Controls & Switchgear Company Ltd., [Civil Appeal No. 353 of 2008]
7. Indian Lawyers v. D.K. Gandhi PS National Institute of Communicable Diseases and Anr., Civil Appeal No. 2646 of 2009 along with Civil Appeal No. 2647 of 2009, 2648 of 2009 and 2649 of 2009.