This article is written by Kumar Parth of 3rd Semester of Uttaranchal University, Dehradun, an intern under Legal Vidhiya
ABSTRACT
This Article examines the Consumer Protection Act, 2019 to define the Consumer, Goods and Services and Remedies provided to the consumers. The Act is designed to protect and promote consumer rights. This Act empowers the consumers by offering them various mechanisms for redressal against various unfair trade practices for the welfare of the consumers. With the increase in advancement in commerce and trade unfair trade practices are increasing so The Consumer Protection Act, 2019, addresses these concerns, It provides a mechanism for seeking redressal holding manufacturers, service providers, and advertisers accountable for deceptive practices, unfair contracts, and misleading advertisements. This article highlights the importance of consumer protection and awareness by defining them
KEYWORDS
Consumer Protection Act 2019, Consumer rights, Consumer definition, Goods and services definition, Remedies for consumers, Misleading advertisements, Consumer Awareness
INTRODUCTION
In the current market situation, consumers are increasingly vulnerable to unfair trade practices, misleading advertisements, and dangerous products, so to safeguard them and their rights the Consumer Protection Act, 2019 provides them various rights that promote fair competition and provide effective remedies for the consumers.
It defines the Consumers, their rights, and remedies and also provides them a forum that empowers consumers to seek redressal for any unfair practices.
The Consumer Protection Act, 2019, defines a “consumer” not just in terms of those purchasing goods, but also those availing of services, ensuring that the entire spectrum of commercial interactions is covered. Furthermore, the Act recognizes the increasing complexity of modern consumer transactions and includes provisions for dealing with misleading advertisements, unfair contracts, and product liability. It strengthens consumer rights by granting access to an array of remedies, including monetary compensation, penalties, and even criminal sanctions in cases of severe harm caused by defective products or services.
This Research Article examines the Consumer Protection Act, 2019 for the proper definition of Consumers, Goods and Services, and Remedies and Rights of the consumers.
DEFINITION OF CONSUMER
The Consumer is defined in two parts:-
- Purchase of Goods: A Consumer is a person who buys a good in exchange for a promise to pay the price for that good but the goods that have been purchased should not be used for resale or any other commercial purpose otherwise the person will not be a customer.
- Availing a Service: A customer is a person who avails a service in exchange for a promise to pay the price for that service but the service that has been purchased should not be used for any commercial purpose otherwise the person will not be considered as a customer.
In this definition, the term “commercial purpose” states that when a person buys a good or avails a service to earn a livelihood through self-employment will not considered a customer under this law. for example, A person purchases machinery for production purposes then that person will not be considered as a customer under this law.
In this definition, the terms “hires or avails any services” and “buys any goods” encompass
both offline as well as online transactions through a variety of shopping channels.[1]
DEFINITION OF GOODS AND SERVICE
Goods include every kind of movable property which also includes “food”, movable properties can be electronics, clothes, furniture, and vehicles.[2] and Service includes any service that is made available to implicit users which can include banking, financing, insurance, transport, processing, supply of energy, telecom, boarding and lodging or both, housing construction, entertainment, recreation, or the purveying of news or other information but which it is provided free of charge then this will not be a service also it excludes personal services.[3]
CONSUMER RIGHTS UNDER THE CONSUMER PROTECTION ACT
The Act recognizes six key rights for consumers, providing them with a comprehensive framework for protection:
1) Right to be protected:-
The right to be protected means the consumers have the right to protect themselves from goods and services that are hazardous to life and property. It ensures that the product meets the service standards and is not dangerous to the customers
2) Right to be informed:-
Right to be informed means the consumer should have been provided information about the product quality, quantity, potency, purity, standard, and price of products and services, This right protects the consumers from unfair trade practices and ensures that the consumer has relevant information about the product.
3) Right to be assured:-
The right to be assured means having access of a wide range of products and services at competitive parts, This right supports fair competition among the service providers and consumers will have lots of options.
4) Right to be heard:-
Right to be heard means if the consumer faces any grievances and concerns must be considered and addressed
5) Right to seek redressal:-
The right to seek redressal means the consumers have the right to seek redressal against unfair trade practices or exploitations
6) Right to consumer awareness:-
Right-to-consumer awareness means that consumer should be aware of their rights, responsibilities, and the protection available to them under the law. This right focuses on making the consumers aware and educated.[4]
REMEDIES FOR MISLEADING ADVERTISEMENTS AND UNFAIR CONTRACTS
Misleading Advertisement
Misleading advertisements are advertisement that misrepresents the consumers about the product or service which can include
1) False information- The advertisement that provides false information about the product which inaccurately represents the product
2) Giving False Guarantee- The advertisement provides a false guarantee to mislead the consumer about the product.
3) Implied representation of the product
4) Concealment of important information- The advertisement hides any important information that will mislead the consumer[5]
Unfair Contracts
Unfair contracts are the contracts between consumers and businesses that can give a business unfair advantage that are:-
1) when a contract requires to pay an unreasonably large amount of money as security for fulfilling their obligations is considered unfair
2) The agreement when imposing a penalty on the consumer for breach of contract which is
wholly disproportionate to the loss that occurred due to such a breach to the other party
3) A contract that refuses to accept early repayment of debts even when the consumer is willing to pay applicable penalties, is considered unfair.
4) When a contract gives a party to unilaterally terminate the contract without reasonable cause.
5) When a contract allows one party to transfer the rights and obligations to another party without reasonable cause, is classified as unfair.
6) When a contract imposes unreasonable charges, obligations, or conditions which give the consumer any disadvantage.[6]
Remedies
Under Section 21 of the Consumer Protection Act, 2019 The Central Authority that is central consumer protection authority has the power to issue directions and penalties against false or misleading advertisements that are:-
1) The central authority after investigating that the advertisement is false or misleading and is against the interest of the consumer has the power to discontinue the advertisement or modify it
2) The central authority may impose a fine on the manufacturer or endorser which may extend to ten lakh rupees and for subsequent contraventions, the penalty can be up to fifty lakh rupees.
3) The central authority may also prohibit the endorser from making an endorsement for up to one year
4) If the publisher is involved in publishing misleading advertisements then the Central Authority may impose a penalty of up to ₹10 lakh on the publisher.
5) The endorser can avoid the fine if he exercises due diligence to verify the truthfulness of the claims made in the advertisement about the product or service being endorsed.
6) The publisher can also avoid the fine if he proves that he had published the advertisement for their ordinary business but this defense is not available to the publisher if he had previous knowledge of the order passed by the Central Authority for withdrawal (1al or modification of such advertisement.[7]
The State Consumer Dispute Redressal Commission shall receive any complaints against unfair contracts where the value of the goods and services paid as consideration does not exceed Rupees Ten Crores.[8]
The National Consumer Dispute Redressal Commission must receive complaints against such contracts where the consideration exceeds Rupees Ten Crores.[9]
CENTRAL CONSUMER PROTECTION AUTHORITY (CCPA)
The central government is required to establish the Central Consumer Protection Authority (CCPA) to regulate matters relating to the violation of the rights of consumers, unfair trade practices, and false or misleading advertisements that are prejudicial to the interests of the public and consumers and to promote, protect and enforce the rights of consumers.
The CCPA will consist a Chief Commissioner and a number of other commissioners who are appointed by the central government The headquarters of the CCPA shall be at such place in the National Capital Region of Delhi.[10]
The CCPA will have an investigation wing which will be headed by a Director-General who will conduct investigations as directed by the central authority.
The central government may appoint a Director-General and a number of additional directors-generals, Director, Joint Director, Deputy Director, and Assistant Director.
All the officers will work under the supervision and direction of the Director-General.
The Director-General may delegate all or any of his powers to the officers while conducting investigations.
REMEDIES PROVIDED BY THE CENTRAL AUTHORITY
The central authority shall-
1) Protect, promote, and enforce the rights of the consumers to prevent any kind of violation of consumer rights.
2) Prevent unfair trade practices and ensure that no person engages himself in unfair trade practices.
3) Ensure that no false or misleading advertisement is made of any goods or services which violate the consumer rights.
4) The central authority may conduct an investigation or inquiry into violations of consumer rights or unfair trade practices. this investigation may be initiated by Suo motu, Based on a complaint received, or On directions from the Central Government.
5) The central authority can issue guidelines to prevent unfair trade practices and protect consumer interests.[11]
6) The central authority can recall the goods which are dangerous, hazardous, or unsafe
7) The central authority can order the reimbursement of the price paid for the goods or services that have been recalled. This will ensure that the consumer gets compensated if they purchase any dangerous, hazardous, or unsafe product.
8) The central authority can discontinue the practices which are unfair and prejudicial to consumer’s interests.[12]
PENALTIES FOR OFFENSES
- Punishment for acts involving Adulterants:
- No Injury to the consumer- It will lead to imprisonment of up to 6 months, a fine of up to one lakh rupees.
- Injury to the consumer- It will lead to imprisonment of up to 1 year and, a fine of up to three lakh rupees.
- Injury resulting in grievous hurt- It will lead to imprisonment of up to 7 years and, a fine of up to lakh rupees.
- Death of the consumer- It will lead to a minimum imprisonment of up to 7 years which may extend to life imprisonment, and a minimum fine of up to ten lakh rupees.
- Cognizable and non-bailable offences:
For an offense where the consumer suffers grievous injury or death, the offense will be cognizable and non-bailable.
- Suspension or Cancellation of Licence:
In addition to imprisonment and fine the authority has the power to suspend the offender’s licence for up to two years or cancel the licence permanently[13]
CONSUMER REDRESSAL FORUMS
District commission- The state establish a District Consumer Disputes Redressal Commission, known as the District Commission in each district of the state which can handle complaints where the value of the goods or services in question does not exceed one crore rupees.[14]
Mediation cell- Consumer Mediation Cell shall be established by the Central Government at the national level and every state government shall establish Consumer Mediation Cell exercising within the jurisdiction of that state. The designated mediator will facilitate the mediation within the time frame and according to any guidelines that may be established.[15]
CONCLUSION
The Consumer Protection Act, 2019 safeguards the rights of consumers in India. By providing a comprehensive framework that defines consumers, outlines their fundamental rights, and establishes mechanisms for redressal, the act empowers consumers to make informed choices and seek justice against unfair trade practices.
The establishment of the Consumer Protection Authority has made an effective way to seek redressal for consumers but continuous efforts are needed to raise awareness about consumer rights, enhance the efficiency of redressal mechanisms, and address emerging issues in the consumer market.
In conclusion, the Consumer Protection Act not only aims to uphold consumer rights but also make fair competition among the producers and by imposing accountability on businesses for misleading advertisements and unfair contracts. This ensures that consumers have access to transparent and reliable information while enjoying a wide range of goods and services choices. Ultimately, the Act’s provisions offer a comprehensive remedy system, allowing consumers to seek justice and redress when their rights are violated, promoting a safer and fairer marketplace for all. By understanding and utilizing the provisions of this act, consumers can effectively protect their rights and contribute to a more equitable marketplace.
REFERENCES
- The Consumer Protection Act, 2019
[1] Section 2(7) of the Consumer Protection Act, 2019
[2] Section 2(21) of the Consumer Protection Act, 2019
[3] Section 2(42) of the Consumer Protection Act, 2019
[4] Section 2(9) of the Consumer Protection Act, 2019
[5] Section 2(28) of the Consumer Protection Act, 2019
[6] Section 2(46) of the Consumer Protection Act
[7] Section 21 of the Consumer Protection Act, 2019
[8] Section 47(1)(ii) of the Consumer Protection Act, 2019
[9] Section 58(1)(ii) of the Consumer Protection Act, 2019
[10] Section 10 of the Consumer Protection Act, 2019
[11] Section 18 of the Consumer Protection Act, 2019
[12] Section 20 of the Consumer Protection Act, 2019
[13] Section 90 of The Consumer Protection Act, 2019
[14] Section 34 of The Consumer Protection Act, 2019
[15] Section 74 of The Consumer Protection Act, 2019
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