Consumer Protection act, 2019 is an act which aims to protect the rights of a
consumer and for the same purpose it has established authorities, effective
administration and awareness forums. The rights under the act are well defined
and are there to protect the consumer from harassment from immoral, unethical or
unscrupulous traders and service providers.
Consumer rights are designed to
ensure free and fair-trade practices being followed in the market so as to
remove the harassment of the consumers who may or may not have any knowledge
regarding their rights provided by law. There are six rights under the Consumer
Protection Act, 2019 and these are:
- the right to be protected against the marketing of goods, products or
services which are hazardous to life and property;
- the right to be informed about the quality, quantity, potency, purity,
standard and price of goods, products or services, as the case may be, so as
to protect the consumer against unfair trade practices;
- the right to be assured, wherever possible, access to a variety of
goods, products or services at competitive prices;
- the right to be heard and to be assured that consumer's interests will
receive due consideration at appropriate fora;
- the right to seek redressal against unfair trade practice or restrictive
trade practices or unscrupulous exploitation of consumers; and
- the right to consumer awareness;
Even though the consumer protection act has been in effect
and operational from 1986 yet the consumers are not fully aware of the
provisions of the act and especially the provision regarding their rights as a
consumer. The rights of a consumer and the awareness about the same goes in
parallel with each other yet they are connected.
The study on consumer rights
under the consumer protection act, 2019 aims to reflect on the evolution of
these rights available for consumers and the consumer awareness steps taken by
respective the stakeholder agencies i.e., the government, consumer awareness
NGOs, traders and merchants and their role in imparting the consumer knowledge
through their measures for awareness. The level of consumer awareness on the
consumer rights will only determine the performance of consumer protection aimed
to be achieved through consumer protection act.
Introduction
The introduction of the Consumer Protection Act, 2019 states that
it is an Act to provide for protection of the interests of consumers and
for the said purpose, to establish authorities for timely and effective
administration and settlement of consumers' disputes and for matters connected
therewith or incidental thereto [1].
With an aim to protect the interests of
consumer, the Consumer Councils and other authorities for the settlement of
consumer's grievances are established at the national, state and district level
to increase consumer awareness. For settlement of the matters of consumers and
the related disputes the act seeks to promote and protect the rights of the
consumers such as-
- the right to be protected against the marketing of goods, products or
services which are hazardous to life and property;
- the right to be informed about the quality, quantity, potency, purity,
standard and price of goods, products or services, as the case may be, so as
to protect the consumer against unfair trade practices;
- the right to be assured, wherever possible, access to a variety of
goods, products or services at competitive prices;
- the right to be heard and to be assured that consumer's interests will
receive due consideration at appropriate fora;
- the right to seek redressal against unfair trade practice or restrictive
trade practices or unscrupulous exploitation of consumers; and
- the right to consumer awareness; [2]
The preamble of the Indian Constitution explicitly mentions the resolve of the
people of India to make it a sovereign, socialist, democratic republic to ensure
the social, political and economic justice to the citizens. It is the duty of
the government of India to establish a socialist and welfare society.
This is
possible only when economic, social and political justice be ensured to the
citizens and they should be protected from social and economic exploitation. In
this connection, Directive Principles of state policy enshrined in Part IV of
the Constitution are important and deserve special mention. These Directive
Principles of state policy lay down the foundation of for a welfare state.[3]
According to Article 37 of Part IV of the Indian Constitution Directive
Principles of state policy are not enforceable through courts of law
nevertheless they are fundamental in governance of the country and it shall be
the duty of the state i.e., the government to apply these principles while
making the laws.
The Consumer Protection Act, 2019 and the subsequent previous versions of act
have their fundamentals governed by some of the Articles under Part IV of the
constitution i.e., the Directive Principles of the state policy such as:
Article 38(1):
State to secure a social order for the promotion of welfare of
the people.: The State shall strive to promote the welfare of the people by
securing and protecting as effectively as it may a social order in which
justice, social, economic and political, shall inform all the institutions of
the national life.[4]
Article 47:
Duty of the State to raise the level of nutrition and the standard
of living and to improve public health.: The State shall regard the raising of
the level of nutrition and the standard of living of its people and the
improvement of public health as among its primary duties and, in particular, the
State shall endeavour to bring about prohibition of the consumption except for
medicinal purposes of intoxicating drinks and of drugs which are injurious to
health[5].
By establishing consumer councils, grievance redressal commissions, consumer
appellate authority at district, state and national level, and providing for the
right to be protected against material, property and things which are hazardous
to life, the Consumer Protection Act, 2019 is a step in working towards the
abovementioned Directive Principles of state policy enshrined in our
constitution.
The first introduced act i.e., the Consumer Protection Act, 1986 was hailed as a
landmark event because it was the first legislative step in the field of
consumer protection. The present Consumer Protection Act, 2019 is regarded as
the finest approach towards addressing the new challenges in this socio-
economic area.
This study begins with the background of the consumer protection in India and
around the world and discusses about the impact of rising industrialization and
the changing economic scenario due to the changes in consumer behaviour from
time to time on the key to all of these happenings i.e., the consumer. This
study further discusses about the evolution of consumer rights as provided in
the Consumer Protection Act, 2019 to show how the consumerism around the world
and different case laws in the legal history of our nation gave shape to these
rights.
Further, the challenges posed by the emerging industries, primarily by
the much trending ecommerce sector in digital era and how the Consumer
Protection Act, 2019 has delt with it has also been discussed. As the time
passes, the behaviour and the aspiration of consumer changes and so emerges the
new markets and Industries in the light of this it is necessary to always
emphasise on the need of consumer awareness because an aware consumer plays an
important role in establishing the free and fair-trade practices in market.
Background
‘Consumer’, Oxford dictionary describes a consumer as a person who purchases
goods and services for personal use. A consumer plays a vital role in shaping
the economy of the country, it is because of his demand either the industry
flourishes or gets in the depression phase. Major sea routes, Airways, Railways
and Roadways have their origin hidden in this demand. With ever increasing
demand of some goods and services and sharply decreasing trends has moulded the
new world order in the gone and the present century.
The Consumer behaviour was
also pertinent in how the world saw rapid industrialization. In most of the
instances people purchase products in order to differentiate themselves from
other people. Therefore, it follows that people do not buy products just because
of their material needs or usage, but also because of their symbolic value.
Ironically people purchase a particular object because they want to identify
themselves with a certain community and project certain value to others.
Then it
is also true that buying consumer goods is actually a way of constructing an
identity and at the same time people are also looking for emotional and
aesthetic fulfilment. But this experience is for short term only. It is because
as soon as people buy something to get a unique identity, that article becomes
common and they are out to shop again.[6] The gone century was ruled by the
concept of ‘Caveat Emptor’, a Latin phase meaning let the buyer be aware. Today
the present century has changed its ways and now it is said ‘Caveat Venditor’
meaning let the seller be aware.
With the advent of Industrial revolution in 18th Century, the new socio-economic
world order took shape. The behaviour of the consumer was key in giving a shape
to it. While it was the consumer who was the fulcrum of the revolution on which
the growth of Industries depended, the Industries in the coming time became too
heavy to weak the strength of the consumers.
Since the character of the trade
and business turned international from being national and the manufacturers and
the sellers had become well-organised, skilled and professional and on the other
hand most of the consumers were illiterate and unorganised, it had become veery
difficult rather impossible to prevent the exploitation of consumers. In order
to protect the consumers and prevent their exploitation, the need for
international consumers’ protection movement was felt.[7]
In the 20th century the stakeholders for the global issues came forward and
heralded the systematic designing of the rights of consumers.
In 1978, the intergovernmental working group gave consent to the code of conduct
for Multinational Companies (MNCs) when at that time they affected the demand of
consumers on the basis of their huge capital, mass production of goods and
advertising and publicity and exploited the consumers. [8]
In 1983, the Economic and Social Council of United Nations (ECOSOC) played a
governing role for the protection of interests of consumers, and passed a
resolution recommending the general set of guidelines to be adopted by the
governments of different countries. [9]
Recalling the above resolutions, the United Nation General Assembly adopted a
resolution and framed the guidelines keeping in view the interests and need of
consumers and recommended to all the developing countries to adopt them. These
guidelines are:
- To help the countries to achieve and maintain protection adequate to
their consumer population;
- To render help in production and distribution in accordance with the
needs and desires of the consumers;
- To encourage the high standards of moral conduct the persons involved in
making available goods and services to the consumers;
- To help the countries at national and international levels to supress the
defective business systems affecting the interests of the consumers;
- To help in development of independent consumer groups or unions;
- To encourage the condition of market which may provide more
opportunities of choice at less cost. [10]
In India, before the introduction of a consumer-central legislative step,
different acts had the provisions of dealing with unfair trade practices,
hazardous products, and protection of consumers. Statutes such as Civil
Procedure Code, 1908, Sale of Goods Act, 1930, Indian Penal Code 1860, Essential
Commodities Act, 1955, Industrial Development and Regulation Act, 1957, Food
Adulteration Act, 1955, Weights and Measures Act, 1976 and Monopoly and
Restrictive trade Practices Act, 1969, contributed in protecting the interests
of consumers and empowered the consumers to raise their concerns.
Thus, the Consumer Protection Act, 1986 was an outcome of the negotiations
happening around the world and involving the consumer dedicated provisions in
the abovementioned statutes and therefore it is regarded as the ‘Magna Carta’ in
the field of consumer protection. But much development also took after the
passing of the act. The original act was amended in 1991, 1993, 2002 and 2019.
Consumer Rights
The whole Consumer Protection Act, 2019 is the tree whose root is only
and only the rights of the consumers. For these rights to be entrusted with the
consumers the whole act has been designed. The six consumer rights are defined
under the Section 2(9) of the Consumer Protection Act, 2019[11]. These rights
are (i) the right to be protected (ii) the right to be informed (iii) the right
to be assured, (iv) the right to be heard (v) the right to seek redressal (vi)
the right to consumer awareness. They are discussed in detail below.
The Right to be Protected
This right has been provided to protect the consumers from the hazardous goods
or the goods which pose threat to the life of consumers. This right has evolved
out of the provisions of certain existing act which were enacted before the
enactment of the consumer protection act, 1985. The statutes such as
Prevention of Food Adulteration Act, 1954 which provides for prevention of food
adulteration by laying down the provisions of food, food inspectors. Restraint
on sale/manufacture/import of certain item. The act also has penal provisions
for defaulters.
Agriculture Produce (Grading and marketing) act, 1937 provides for grading and
marking the agriculture produce so as to ensure that the produce meets minimum
level of standards as set out by this law and states the penalty for
non-conforming to the requirement of this law.
Drugs and Cosmetics Act, 1940 regulates the import, manufacture, sale and
standards of drugs and cosmetics, states the minimum standard to be followed
from manufacturing to packaging of drugs and cosmetics.
Bureau of Indian Standards, Act 1986 provides for setting up a Bureau which is
empowered to establish, publish and promote Indian Standards of articles or
processes. It also provides for mandatory certification of various products
ranging from electrical appliances like iron, heater and fan to food products
like milk powder etc.
Recently, in September 2020 the consumer affair ministry announced that the
imported toys need to pass the quality testing set up by the ministry to get a
nod for import in India. Bureau of Indian Standards (BIS) was asked to frame the
Quality Control Standard (QCS) for toys and its staff is also deployed at ports
to take the sample and test[12].
The Consumer Protection Act, 2019 under section 20 empowers the central
authority to recall the defective products or where substantial evidence shows
that the product was sold after indulging in unfair trade practices.
The Right to be Informed
It Means right to be informed about the quality, quantity, potency, purity,
standard and price of goods so as to protect the consumer against unfair trade
practices. Consumer should insist on getting all the information about the
product or service before making a choice or a decision. This will enable him to
act wisely and responsibly and also enable him to desist from falling prey to
high pressure selling techniques[13].
Unfair trade practices also include the spurious methods to sell the product. In
a time, full of stories of food adulteration, toxic chemical usage in cosmetics
and food products and rising concerns of health and the subsequent awareness
among people has made it important for the manufacturer to print the relevant
information so that a consumer is aware enough of the thing being used by him.
Therefore, we see different logos on the FMCG products such as the commonly
known green and red symbols denoting the type of food vegetarian or
non-vegetarian, “CONTAINS CAFFINE” logo can be seen on soft drinks bottles and
coffee and tea packets, Nutrition table and ingredients printed on the packaging
of food products to inform the health-conscious people specifically and also
people in general, also Allergic Warnings are published so as to aware the
people with allergies etc.
Advertisement, a highly pressurised selling technique has also affected the way
people purchase goods. MNCs and other big corporates with their ample funds use
the concept of brand ambassadors to arouse the sentiments of the consumers and
it considerably increased the consumption of goods, in such circumstances it
became necessary to take solid steps to ensure the protection of interests
consumers and to bind the sellers and service providers and their ambassadors
with such rules.
The Consumer Protection Act, 2019 for the first time in the
history of consumerism in India under section 21 has stricter provisions for
controlling the misleading and false advertisements and taking action on the
endorser of the brand. The Central Authority under the act has been empowered to
impose the penalty for manufacturer or seller is up to Rs10 Lakhs and two years
of imprisonment and for subsequent offence it may rise to Rs50 Lakhs and five
years of imprisonment.
For the endorser of such products a penalty can be
imposed up to Rs10 Lakhs and one year imprisonment and for any further offence
the endorser can be banned also for a period of one year. No penalty will be
imposed if the endorser has exercised due diligence and has verified the
veracity of the claim made by the product which is being endorsed. [14]
Right to be Assured or The Right to Choice
Economic reforms in early 1990 brought in plethora of options in almost all the
goods and services. The increased number of manufacturers for the same product
ended the monopolistic practices and encouraged competition in the market
resulting in better options and competitive prices[15]. Wherever possible
consumers should get choices and a variety of options with respect to price,
quality in goods and services.
In 2003, the government enacted the Competition
act, 2002 which aimed ‘to prevent practices having adverse effect on
competition, to promote and sustain competition in markets, to protect the
interests of consumers and to ensure freedom of trade carried on by other
participants in markets’[16] it replaced the archaic Monopoly and Restrictive
Trade Practices Act, 1969.
It was introduced to avoid the formation of cartels,
parallel pricing, controlling production to increase prices and any other
activity that have adverse effects on competition and which are
anti-competitive. [17]Hence, today we see no monopoly in certain sectors which
are and now becoming essential for a human being such as FMCG, Electronics,
Apparels and etc.
Right to be heard
The Consumer Protection Act, 2019 defines this right as the right to be heard
and be assured that consumer’s interests will be receive due consideration
before the appropriate forum. Every consumer has a right to raise their concerns
before the dedicated platform. The act establishes the dispute redressal
commissions at district, state and national level under Section 28, Section 42
and Section 53 of the act respectively.
The new Act provides the consumer with
the facility to lodge a complaint in the jurisdictional consumer forum located
at the place of residence or work. This is different from the old practice of
lodging complaint at the place of purchase or the seller’ s office address as
provided under Section 34(2)(d) of The Consumer Protection Act, 2019. The New
Act will allow consumers to complain electronically and to hear and / or hear
parties through video-conferencing.
This method is easy and also reduces the
inconvenience. Before, there was no video conferencing provision[18]. The 2019
act also expands the definition of the consumer to include the e-commerce
transactions which the earlier act did not include. The definition now includes
“any person who buys any goods, whether through offline or online transactions,
electronic means, teleshopping, direct selling or multi-level marketing”
(Section 2(16) of the Consumer Protection Act, 2019).[19]
The Right to Seek Redressal
This right is the most powerful object in the hands of consumers, it justifies
the entire essence of the act which it aims to satisfy. This right is provided
against unfair trade practices, restrictive trade policies, and unscrupulous
violation of consumers. It also seeks to enforce all other rights provided to
consumers in the act. The main objective of the right is to provide a speedy and
cost-efficient method of dispute redressal.
In the Right to be Heard,
establishing consumer dispute redressal mechanism was a step in the direction of
this right while in the Right to Seek Redressal, the working of these
commissions, the applicable jurisdiction, the mediation cell and the system of
appeal is the redressal infrastructure given by the act. In C. Venkatachalam v.
Ajit Kumar C. Shah and others[20] the Supreme Court observed that:
The Consumer Protection Act, 1986 was enacted with the object and intention of
speedy disposal of consumer disputes at a reasonable cost, which is otherwise
not possible in ordinary judicial/court system.
Section 35 & 38, Section 49,
Section 59 of the act lay down the manner/procedure applicable to district,
state, national levels respectively.
The Right to Consumer Awareness
For the success of the aim of the Consumer Protection Act, 2019 it is necessary
to aware the consumer with different provisions of various statues which favour
the protection and promotion of the consumer. An aware consumer forms the basis
of a highly competitive and malpractice free market order. Consumer education
also plays an important role in healthy development of society when faulty trade
practices such as adulteration, hazardous chemical usage, and usage of
prohibited material are checked and an eye has been kept on them.
While
utilizing the right many NGOs are established which provide legal assistance to
the aggrieved consumers, educate the consumers with important provisions which
they can demand to be applied in daily life, and publish on the updates in
consumer protection field. A literate consumer is the king of market.
Case Laws:
Supriyo Ranjan Mahapatra v. Amazon Development Centre India (P) ltd.
[21]
In this case the consumer ordered a Laptop from an e-commerce website for Rs129/-
as offered instead of its original price of Rs23,499/- later the order was
cancelled by the e-commerce company citing the pricing issues and the same was
communicated to the consumer over a telephonic conversation.
Consumer attempted
many a times to sought the exact reason of the cancellation, after no
communication could be established a legal notice was served which was also not
responded. The consumer moved to District Consumer Redressal Forum (now
commission according to new act of 2019) where it was held that the e-commerce
company was not only negligent in rendering services but also included in unfair
trade practices, thus consumer’s case was partly allowed and he got a total
compensation of Rs12,000/-.
Tata Press Ltd v. Mahanagar Telephone Nigam Ltd. (“Tata Press”)[22]
the Supreme Court observed the right of the consumer as a recipient of
commercial speech by stating, “An advertisement giving information regarding a
life-saving drug may be of much more importance to the general public than to
the advertiser who may be having purely a trade consideration. Article 19(1)(a)
not only guarantees freedom of speech and expression, it also protects the
rights of individuals to listen, read and receive the said speech.” Further, the
Supreme Court also held that misleading and deceptive advertising would not fall
within the protection of Article 19.
Ernakulam Medical Centre v. P.R. Jayasree & Anr. [23]
The National Consumer Dispute Redressal Commission observed that “Releasing a
dead body by a hospital to an unrelated third person unquestionably constitutes
‘deficiency in service’ within the meaning of Section 2(1)(g) and (o) of
Consumer Protection Act, 1986.”
HDFC Bank Limited v. Balwinder Singh [24]
The National Consumer Dispute Redressal Commission expressed shock over the
usage of physical means in form of musclemen by the bank to recover the loan
amount from the consumer and in the same process the musclemen took the
possession of the consumer’s car. The bank was held liable and the consumer was
awarded exemplary damages of Rs25,000.
Conclusion
How various developments that took place in 20th century and the role of
stakeholders shaped the consumerism in India and how the first milestone moment
in the consumer protection field took place as the Consumer Protection Act,
1986. With the onset of globalization, the consumer movement took a new shape
and today we see the enactment of a new act that is the Consumer Protection Act,
2019 which is again a significant and yet diversified statute as it also
includes the penal provision for misleading advertisements and product
endorsers.
It expands the definition of a consumer to include the users of the
new concept of e-commerce, also when the world is getting virtual and
digitalized it is important to include the innovative methods so that no
aggrieved consumer is left behind. With the growing needs according to the
changing time the rights of consumers also shape themselves and are thus ever
evolving. Fair, cheap and easy process of consumer redressal system is the only
thing for which the entire legislation is enacted.
In
Lucknow Development
Authority v. M.K. Gupta[25] Justice R.M. Sahai aptly observed:
The law attempts to remove the helplessness of a consumer which he faces against
powerful business described as a
network of rackets or a society in which producers
have secured the power to
‘rob the rest’. The malady is becoming so rampant,
widespread, deep that the society instead of bothering complaint and fighting
for it is accepting it as a part of life. The enactment of in these unbelievable
yet harsh realities appear to be a silver lining in checking the rot.”
Knowledge
instils awareness, awareness brings change and change establishes the right and
suitable order to the society which benefits all, thus in a time of internet and
rapid search system available at the hands of consumers , consumer awareness is
the only movement through which socio-economic progress can be checked in an
ever evolving community it is important to make the consumers literate with
consumer education then only the holding the transition of Caveat Venditor from
Caveat Emptor can be maintained.
End-Notes:
- The Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019
(India
- The Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019
(India).
- Dr. S.K. Kapoor, Law Of Torts & Consumer Protection Act 1986 479 (2013).
- India Const. art. 38 cl. 1
- India Const. art. 47
- Nupur Roy, Globalizing India and Consumerism in a New World Order
(1991-2016), JSTOR (Jan. 11, 06:14 PM) https://www.jstor.org/stable/10.2307/26552733
- Dr.S.K.Kapoor, Law Of Torts & Consumer Protection Act 1986 477 (2013)
- Dr.S.K.Kapoor, Law Of Torts & Consumer Protection Act 1986 477-478
(2013)
- Dr.S.K.Kapoor, Law Of Torts & Consumer Protection Act 1986 477 478 (2013
- United Nations, Draft Resolution for Consideration by The General
Assembly, UNCTAD (Jan. 13, 03:25PM) https://unctad.org/system/files/official-document/ditc-ccpb2015_02res_en.pdf.
- The Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019
(India).
- PTI From September 1, entry of imported toys in India only after quality testing: Paswan The Economic Times
- Consumer Rights Consumer Affairs:
https://consumeraffairs.nic.in/organisation-and-units/division/consumer-protection
unit/consumerrights#:~:text=Means%20right%20to%20be%20informed,a%20choice%20or%20a%20decision.
- The Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019,
(India).
- Dr.Roopa Vajpayee & Akanksha Rana, Consumer Claims 54 (Eastern Book
Company 2020
- The Competition Act, 2002, Act No. 12, Acts of Parliament 2003 (India).
- Dr. Roopa Vajpayee & Akanksha Rana, Consumers Claims 55 (Eastern Book
Company 2020)
- Ginka Kalyan, Analysis of The Consumer Protection Act, 2019, MANUPATRA
(Jan. 07, 11:07 AM)
- The Consumer Protection Act, 2019, Act No. 35, Acts of Parliament 2019
(India)
- (2011) 4 S.C.C. (Civ.) 835, 850
- Consumer Complaint No. 42 of 2018 District Consumer Redressal Forum
Behrampore Odisha (India).
- (1995) 5 SCC 139.
- 2020 SCC Online NCDRC 490.
- III (2009) CPJ 49 (NC)
- AIR 1994 SC 787 791.
Written By: Divyanshu Jain
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