Consumer and its meaning
An individual who agrees to purchase goods for consideration or on credit, or hires or avails any services for consideration or on credit from the market is known as a consumer. Due to consumers, businesses exist and hence why they are known as the spine of the market. As various kinds of products and services are coming into being, there’s a rise in new ways of duping the Consumers. Therefore, in order to protect the rights and safeguard the welfare of the spine of the market, the Consumer Protection Act, 1986 was enacted and brought into force. This act was based on the doctrine of Caveat Emptor which means that it is the responsibility of the buyer to identify the defects in the good. Now it has shifted to Caveat Venditor which stands for the seller to be aware of the product it is selling. Prior to the implementation of this Act, there was no special act for protecting the consumers and the only remedy available to the consumers was under the Law of Torts i.e., filing a civil suit for damages against the shopkeeper or the service provider.
Section 2(1) of the Act defines consumers as anyone who:
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person, but does not include a person who avails of such service for any commercial purpose.
Hence, if an individual has performed any such activity and has suffered any loss, then he/she is a consumer and liable to the remedies provided under this Act.
Consumer rights under Consumer Protection Act, 2019
The consumer protection act was instituted to protect the rights of consumers and establish a framework for the same. The authorities established under this act aim to protect consumers from misrepresentation in advertising, negligence and harassment from unethical traders and unfair trade practices.
Under the Consumer Protection Act, 2019, section 2(9), the consumers are granted six main rights which ensure fairness in the free market and protect consumers from harassment.
The right to be protected against the marketing of hazardous and life- threatening products, goods and services.
The right to be informed about the quality, potency, quantity, standard, purity, and price of goods to safeguard the consumers against unfair trade practices.
The right to have access to a variety of goods and competitive prices.
The right to be heard and to have assurance of the fact that consumer interests will be addressed in the forums established by the Consumer Protection Act, 2019.
The right to seek redressal against unfair and restrictive trade practices and exploitation of consumers.
The right to be aware of the product or service being purchased.
Authorities and Forums Under the Consumer Protection Act, 2019
The Central Consumer Protection Authority:
The Central Consumer Protection Authority (CCPA) was established in 2019 to promote, protect and enforce the rights of consumers as a class. It is empowered to conduct investigations into violation of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements.
The notable difference between the Central Consumer Protection Authority and the other authorities is the power to conduct its own investigation under Section 15 of the Consumer Protection Act, 2019.
State Consumer Protection Councils:
Every state has its own established State Consumer Protection Council, which is known as the state council. The state councils have a narrow jurisdiction when compared to the CCPA and deal with cases concerned with cases ranging from 1 crore to 10 crores.
District Consumer protection Council:
Under section 8 of the Consumer Protection Act, 2019, every state government has to establish a district consumer protection council which will be known as the district council. The district council has the jurisdiction to concern themselves with cases dealing with an amount of up to 1 crore.
Procedure to file a Consumer complaint under the Consumer Protection Act, 1986
To file a formal complaint against a company, the consumer is primarily expected to send a legal notice to the company stating the deficiency in their product/service provided or the presence of any unfair practice. This is for the consumer to confirm if the company is willing to provide any compensation due to the loss/damage suffered by him/her.
If the notice sent by the consumer gets rejected, then the he/she can approach the consumer court in order to file a formal complaint against the company. For this, the complainant (consumer) is required to gather all the important facts related to their product or service availed in order to draft a petition. For example:
Date of purchase
Amount paid to the company
Proof of payment (bills, receipt or any relevant document)
Details of the complainant and the opposite party
Reason and details of the complaint (Unfair Trade Practice, supply of defective goods, deficiency in service provided, collection of excess prices, Hidden Charges)
Relief sought for under this Act
Signature of the complainant or his/her authorized agent.
Once the complainant has drafted the petition, then he/she has to determine as to which court the complaint should be filed i.e.,
< 20 lakhs - District Consumer Disputes Redressal Forum
< 1 crore – State Consumer Disputes Redressal Commission
> 1 crore – National Consumer Disputes Redressal Commission
After filing the complaint, the consumer is expected to pay the statutory fees and wait for the verdict. Post Judgement, if either party is not satisfied with the verdict of these forums, they have an option to apply for a revision to the honorable Supreme Court of India.
Digital Filing of Consumer Complaints:
The Act also allows aggrieved customers to file complaints electronically with the appropriate judicial venue. This breakthrough in the grievance system would shorten the complaint filing process, which formerly required physical filing of the complaint with the jurisdictional District Forum where the seller conducts business or where the cause of action occurred (i.e., the place where the purchase took place). Because it is an online method, it ensures that the filing may be done at any time of day. The Act does not eliminate the physical filing of complaints, but rather enhances it with e-filing.
Penalty under the Consumer Protection Act
Section 88-93 of Chapter VII of the Consumer Protection Act, 2019 deals with offenses and penalties. These are as follows:
For refusal to perform as per direction of Central Authority- Section 88 of the Act provides for imprisonment up to six months or fine up to twenty lakh rupees, or both.
For false or misleading advertisement- Section 89 of the Act provides for imprisonment up to two years and with fine up to ten lakh rupees;
And for every subsequent offense- be punished with imprisonment up to five years and with a fine up to fifty lakh rupees.
For manufacturing for sale or storing, selling or distributing or importing products containing adulterant - Section 90 of the Act provides for:
Injury not caused to the consumer - imprisonment for a term which may extend to six months and with fine which may extend to one lakh rupees;
Injury not amounting to grievous hurt to the consumer- imprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees;
Injury resulting in grievous hurt to the consumer- imprisonment for a term which may extend to seven years and with fine which may extend to five lakh rupees;
Injury resulting in the death of a consumer -imprisonment for a term which shall not be less than seven years, but which may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees.
The latter two offences under this section shall be cognizable and non-bailable. Furthermore, under this section the court may, in case of first conviction, suspend any license issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the license.
For manufacturing for sale or for storing or selling or distributing or importing spurious goods- Section 91 of the Act provides for:
Injury not amounting to grievous hurt to the customer- imprisonment up to 1 year or fine up to 3 lakh rupees;
Injury amounting to grievous hurt to the customer - imprisonment up to seven years and with fine up to five lakh rupees;
death of the consumer- imprisonment minimum of seven years, but may extend up to imprisonment for life and with fine which shall not be less than ten lakh rupees.
For cognizance of offence by court- Section 92 of the Act states that no cognizance shall be taken by a competent court of any offence under sections 88 and 89 except on a complaint filed by the Central Authority or any officer authorized by it in this behalf.
Vexatious search- Section 93 provides that the Director General or any other officer, exercising powers under section 22, who knows that there are no reasonable grounds for so doing, and yet-
searches, or causes to be searched any premises; or
seizes any record, register or other document or article, shall, for every such offence, be punished with- imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees or with both.
Conclusion
The Consumer Protection Act, 2019 ensures that traders and service providers conduct themselves ethically and in the spirit of eliminating unfair trade practices and false advertisement. Additionally, the act establishes systems which help consumer’s access alternative methods of dispute resolution so that they can opt for a method of speedy settlement for consumer disputes.
The Indian market is steadily growing and developing capitalistic trends of conducting trade and providing services. These corporate habits are making a positive impact on the Indian economy and encourage a competitive market which ensures variety for the Indian consumer, that being said, in this environment it is imperative to protect the Indian consumers and their rights to ensure fair and ethical growth.
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