Since the very beginning, the person comes into existence, he/she needs some
basic amenities to live a life of a human and not a mere animal life, as said in
article 21 of the Indian constitution also. These basic amenities may be taken
as Food, cloth & shelter. And this basic requirement continues to be required
throughout the life of the person. Thus we all are consumers in a basic sense.
On the other hand,
there are suppliers in the market. When we go to the Market to get the product
which has utility for us, we expect some value for our money, the money which we
have paid to the seller. That value could be the right quality of the product
acquired/purchased , it could be quantity, right price, right information of the
goods purchased etc. We expect the sellers to fulfill their duty and meet our
expectations, the legitimate ones.
But there may be instances where consumers
aren't satisfied or get harassed or cheated by the sellers. Again cheating and
harassing can be done in many ways such as hoarding , black marketing and
blackmailing. In addition to all these we live in a world where there is perfect
competition, which also leads to unscrupulous practices of the suppliers or
sellers.
The government understood the need to protect the genuine and legitimate buyers
from unscrupulous suppliers , and in furtherance of the same, they made certain
laws. The Indian government has enacted the sales of goods act, dangerous drugs
act, the agricultural produce act, the prevention of food adulteration act and
many other several laws of similar kind, each having their own purpose of
establishment.
These laws, to some extent, protect consumers from untrue and
deceitful sellers, thereby protecting consumer's interests too. However these
laws require/ demands the buyers to file a civil suit if they want to initiate
any type of action against the sellers for their illegitimate practices. The
suits may provide them ( buyers) relief, but this process sometimes takes a lot
of time and proves expensive sometimes. This might affect the minds of other
buyers , not to seek remedy by filing a civil suit.
Taking into mind the
above broached problems in seeking remedy, the government in 1986 , for the
first time, enacted a law, named Consumer protection act 1986. The very purpose
behind establishing this law was to provide speedy Trial and quicker access to
redressal of consumer grievances. This was for the first time, the term consumer
was defined in legal context. We'll later in this project know about who is the
consumer in literal meaning.
Now You might be thinking how the consumers
will seek redressal. For this, the act has provided or set-up some grievance
redressal mechanisms ,whereby the consumers will be listened to by the consumer
Forums specially setup for the purpose of grievance redressal only. This act was
different from aforementioned acts in the context that it doesn't require the
buyers to acquire a lawyer to file a suit.
Decoding The Consumer
We often see people using the term" buyer "synonymously with the word
"consumer'. As we're analyzing the Consumer protection act, it is very important
for us to get acquainted with the difference between a consumer and a buyer.
In layman terms, Buyers are persons who purchase goods for consideration and a
buyer becomes a consumer when he's the one who'll consume the goods purchased.
A buyer can become a consumer also, when the goods he purchased in exchange of
money or something worth value ,sells it to any other person.
Now, let us understand the term consumer as given in the new Consumer Protection
Act, 2019.
Consumer according to the CPA 2019,which was enacted in July 20,2020, published
by the ministry's of law and justice, means any person who:
- 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
- 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.
Explanation: For the purposes of this clause:
- the expression "commercial purpose" does not include use by a person of
goods bought and used by him exclusively for the purpose of earning his
livelihood, by means of self-employment;
- the expressions "buys any goods" and "hires or avails any services"
includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing.
Evolution Of Consumer Protection Act & Why There Was A Need For IT
As we discussed earlier, from the birth of an individual to its end, he needs
goods for various purposes. Goods can be Edible goods, non edible goods. Not
online he needs goods for his survival, but another key thing he requires is
Services. There are certain rights of the consumer. Rather say, these rights are
the basic expectations of a consumer, when he goes to the Market for purchasing
goods and Services.
Earlier, say before 1986, the consumers were not aware of their rights. This
sentence can be backed by the fact that there was only approx. 48% literacy rate
in the 1990s. The then congress government felt it as a necessarily required
step to bring an act, which was going to be enacted only for consumers. The act
was passed in the Assembly in October 1986 and came into force on December 24,
1986. Since then, we have named 24th December as "Consumer day". This was set-up
for the speedy settling of disputes, arising from unfair trade practices of the
sellers.
This Act is regarded as the 'Magna Carta' in the field of consumer protection
for checking unfair trade practices, 'defects in goods' and 'deficiencies in
services' as far as India is concerned. This act led to the widespread
establishment of the consumer forums and appellate courts all over India. It
has, to a very large extent, has impacted the vision of businesses towards
consumers.
The said act also gave some rights to the consumers which have empowered them to
a great extent. There rights 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;
The then government , for saving the aforementioned rights of the consumers
,came up with the CPA 1986.
Why There Was A Need To Repeal The 1986 Law | Limitations In The Then Existing Legal Approach
The CPA 1986, even though it had changed the perspective towards the consumers,
had some limitations. It had limitations in terms of penalty it could impose.
The sanctions were limited only to civil ones. It could only provide civil
remedies.
Due to this limited sanction, various forms of consumer harassment
activities were not sufficiently addressed. As a consequence, the act went
through a major change, got repealed and eventually got replaced by a new
legislation, CPA 2019. Several Sections of the Act came into force on July 20,
2020 and the remaining Sections came into force on July 24, 2020. Despite having
special provisions for consumers to protect them from unfair trade practices,
the old law(1986) , in some manners, has been found ineffective throughout the
time. The act to some extent has failed in regulating certain wrongs and
deceptive acts committed against consumers.
One such was in relation to product liability. In 2015, there was a case of
excess content of lead in maggie.
According to a March 2019 recall, more than 50,000 Volkswagen Golf, Jetta, and
Tiguan models manufactured from 2015 through 2019 are at risk for tire failures
and crashes.
These two cases show the deficiency of the old act in dealing with the issues
related to certain defective goods and services. There are many more which show
the deficiency of the old law in proving itself as sufficient for providing
relief to consumers. Another issue which could be highlighted when it comes to
state the reason for the requirement of new legislation is the promotion and
advertisement of unhealthy and fatal products. We often see celebrities
promoting the sales of Gutka, tobacco , pan masala and many more unhygienic
products. These types of false and misleading endorsements and advertisements
can indirectly affect the right to choice of an individual, clearly broached in
CPA.
Penalties for Misleading Advertisement
Misleading and false advertisements is one of the many aspects that were
introduced by the 2019 Act. The repealed Act did not deal with the concept of
misleading and false advertisements.
Problem with 3 tier Redressal mechanism in respect to 1986 legislation and its
comparison to New Legislation
The government has Set-up a 3 tier Redressal mechanism for the speedy and
inexpensive justice to the consumers. These 3 were set-up at District, state and
national level, with their jurisdictions. Jurisdictions are as follows:
- District forum - up to 20 lakh
- State commission - 20 lakh to 1cr
- National commission - Above 1 cr.
These jurisdictions were according to CPA 1986. Now the problem with that is
since 1986, our economy has undergone much of the change and as a consequence,
the price of goods and services and purchasing power of consumers has increased
manifold.
This has put a lot of burden on district level Forums as consumers purchase and
acquire goods and services respectively, of below the amount of Rs 20 lakhs. So
also for this obvious reason, the then 2019 government thought to bring a new
legislation, annulling the previous one.
- As per the new legislation, there will be no fee for filing cases up to Rs. 5
lakh
- There was no separate regulatory body in 1986 legislation, but there is
a central consumer protection authority to be formed.
- There was no legal provision for mediation in the old legislation
whereas according to the new legislation, courts can allow settlement of
disputes through mediation also.
- There was no legal provision for E-commerce in the old legislation,
whereas all rules of direct selling are extended to e-commerce.
So for the above broached drawbacks of the old law , the government in 2019,
thought to annul it and formulate and enact a new legislation.
Provisions/Sanctions Under IPC
The new 2019 act , although has a number of newly made provisions, one of the
major changes being criminalization of certain acts under IPC. Earlier the
remedy provisions were provided wrt. civil remedies only. We'll see how the new
legislation has spread its domain to procedural and substantive laws.
Adulteration of food and drugs can be dealt with under the Indian Penal Code ,
under section 272 , 273 , 274 , 275. Let us understand each of them.
Section 272 as it says for adulteration of food or drink intended for
sale.-Whoever adulterates any article of food or drink, so as to make such
article noxious as food or drink, intending to sell such article as food or
drink, or knowing it to be likely that the same will be sold as food or drink,
shall be punished with imprisonment of either description for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or
with both.
Section 273 as it says for sale of noxious food or drink.-Whoever sells, or
offers or exposes for sale, as food or drink, any article which has been
rendered or has become noxious, or is in a state unfit for food or drink,
knowing or having reason to believe that the same is noxious as food or drink,
shall be punished with imprisonment of either description for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or
with both.
Section 274 as it says for adulteration of drugs.-Whoever adulterates any drug
or medical preparation in such a manner as to lessen the efficacy or change the
operation of such drug or medical preparation, or to make it noxious, intending
that it shall be sold or used for, or knowing it to be likely that it will be
sold or used for, any medicinal purpose, as if it had not undergone such
adulteration, shall be punished with imprisonment of either description for a
term which may extend to six months, or with fine which may extend to one
thousand rupees, or with both.
Section 275 of IPC as it says for sale of adulterated drugs.-Whoever, knowing
any drug or medical preparation to have been adulterated in such a manner as to
lessen its efficacy, to change its operation, or to render it noxious, sells the
same, or offers or exposes it for sale, or issues it from any dispensary for
medicinal purposes as unadulterated, or causes it to be used for medicinal
purposes by any person not knowing of the adulteration, shall be punished with
imprisonment of either description for a term which may extend to six months, or
with fine which may extend to one thousand rupees, or with both.
In addition to these provisions under IPC, Chapter VII of the Act provides for
penalties, including imprisonment ranging from up to six months and extending to
life imprisonment if the defective goods or services leads to death of the
consumer.
Conclusion
The Consumer Protection Act is one of the most needed legislation created till
now. As consumers go to market, he expects few duties to be satisfied by the
sellers and producers and does not cheat him/her. The Consumer Protection Act
was created by the legislature keeping in mind that the basic rights acquainted
with the consumers should not get infringed and if any seller or producer does
do, should be made liable in the eyes of the law. Repealing the old law and
enacting COPRA, 2019 with some new and improvised provisions, had made consumers
more powerful in using their rights engraved in the COPRA, 2019.
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