“CONSUMER PROTECTION ACT OF 2019: A STUDY OF MEASURE OF ITS SUCCESS” by – Janet. P. Patil

“CONSUMER PROTECTION ACT OF 2019: A STUDY OF MEASURE OF ITS SUCCESS”
 
Authored by – Janet. P. Patil
Progressive Education Society’s
Modern Law College, Pune.
 

Ø    ABSTRACT:

Consumer Protection is a Socio-economic activity that is to be carried out by the government in the interest of consumer satisfaction. Every human being is a ‘Consumer’. The growth of a country is greatly influenced by its consumers. A customer is the most significant visitor to our property, according to Mahatma Gandhi. We are the ones who are reliant on him; he is not. He serves as the motivation behind our labour, not as an interruption. Giving a customer a chance is not our way of doing them a favour. Giving us the chance to serve him is a favour he is performing for us. Even before India gained its independence, the country's authorities were charged with the duty of protecting consumers. In 1986, a consumer protection law that only focuses on protecting consumers was passed. One of the best Acts for consumer protection was the Consumer Protection Act of 1986 (CPA 1986), which was approved by Parliament in 1986. However, dishonesty has become a common practise among the greedy sellers and manufacturers to make unreasonable profits and without paying attention to consumer rights and their interests. This includes overcharging, black marketing, false advertising, unfair trade practises at e- commerce platforms, etc. By introducing the new Consumer Protection Act, 2019, the government has therefore made some significant amendments to the Consumer Protection Act. This law specifies the many steps that can be taken to educate customers about consumer rights and regulations. A significant piece of legislation, the Consumer Protection Act of 2019, was passed to effectively protect customers from various forms of exploitation and unfair business practises that mostly use compensation measures rather than punitive ones. A well-organized system for resolving consumer complaints, promoting high standards for goods and services, and other related tasks has been developed at the federal, state, and district levels thanks to the consumer protection act, which also introduced an ADR mechanism for resolving consumer disputes. A consumer protection committee has been established by the government to raise consumer awareness. This essay's goal is to provide insight into recently adopted provisions and a comparison of some of the most important elements of the Consumer Protection Act, 2019 and the Consumer Protection Act, 19861.
 

1 https://www.ijcrt.org/2020 IJCRT THE CONSUMER PROTECTION ACT, 2019| Volume 8, Issue 8 August 2020 | ISSN: 2320-2882, last seen 2/12/2022


Ø    INTRODUCTION:

Every nation has had a movement for consumer justice that is unique to their historical, social, economic, and legal context. When it comes to setting basic criteria for all nations in terms of consumer protection, the United Nations has played a very significant role. Taking into account their unique demands and requirements, all nations must include the same in their regional consumer laws. Consumer protection in India dates back to the time when dishonest traders were forced to exercise restraint and were subject to penalty if they did not. In modern India, the sacred texts, including the Constitution, envisioned social and economic justice, of which consumer justice is a component. Numerous legislations for the protection of consumers were passed by the Parliament to accomplish the lofty goals. But many of them needed to be updated or had other issues that would have made them more useful. Affected customers received some protection from this legislation, albeit insufficiently. The Consumer Protection Act of 1986 was passed in order to ensure improved consumer rights protection.2
We consume a variety of items in our daily lives, such as cell phones, digital cameras, soaps, perfumes, cosmetics, and other things, in addition to the basic necessities of food, clothing, and shelter. Therefore, we are all consumers in the truest sense of the word. As consumers, when we purchase items from the market, we anticipate getting value for our money, which includes things like quality, quantity, the right price, information about the intended use, etc. The consumer might, however, occasionally be duped.
Most people don't know who to turn to in these situations to request help. Furthermore, the majority of us are also ignorant of our "rights" as consumers and sometimes reluctant to voice complaints or even resist unfair acts. We also lack the means to pursue justice through expensive litigation, so we are forced to put up with this injustice.
This is where consumer forums can help you seek justice against unfair practices without having to pay excessive legal expenses.
 
What is the Consumer Protection Act?

2 Chapter V ‘Conclusions and Suggestions, Shodhganga, http://shodhganga.inflibnet.ac.in/bitstream/ 1
10603/62991/11/11_conclusion%20and%20suggestions.pdf, last seen on 29/11/2022.


To make resolving consumer complaints easier and faster, the Consumer Protection Act of 1986 was passed. The Act aims to advance and defend consumer interests against shortcomings and flaws in goods and services. Additionally, it aims to protect consumers' rights from unfair business practices that suppliers and sellers could engage in.
In a consumer forum, both parties should receive relief, and protracted litigation should be avoided. Officials of the forum mediate between the two parties and advocate compromise in a procedure known as "informal adjudication."
The 1986 law's one and only goal was to safeguard consumers' interests. It marked a change from caveat emptor to caveat venditor. It was compensating in character rather than punitive or preventative. The act's goal was to give consumers access to straightforward, quick, and affordable redress.3
The impact or goal of the aforementioned act, however, has been hampered by changes in consumer attitude, technological advancements, and consumer court delays.
As a result, the government must act quickly to enforce laws that could effectively stop consumer frauds and make the required changes to the Act's various provisions in order to provide a more effective process.
 

Ø    THE CONSUMER PROTECTION ACT:

In terms of consumer protection, this law is recognized as India's "Magna Carta" for preventing unfair business practices, "defects in goods," and "deficiencies in services." It resulted in the creation of an extensive network of consumer forums and appellate courts throughout India. It has greatly changed how firms handle customer complaints and greatly increased consumer power.4
What are the objectives of the Act?
The Central Council's goals include promoting and defending the rights of consumers, including the following:
3 Loopholes in the Consumer Protection Act, 1986 and how the Consumer Protection Bill, 2018 overcome these 2 loopholes, iPleaders, https://blog.ipleaders.in/loopholes-consumer-protection-act-1986-consumer-protectionbill- 2018-overcome-loopholes/, last seen on 29/11/2022.
4 An Analysis of Consumer Protection Laws in India, iPleaders, https://blog.ipleaders.in/analysis- consumerprotection-laws-india/, last seen on 29/11/2022.


1.                                  The right to be shielded from the promotion of products and services that endanger life and property.
2.                                   The right to information regarding the standard, price, potency, purity, and other attributes of the goods or services, as applicable, in order to safeguard the customer against deceptive business practices;
3.                                  The assurance that, whenever possible, you will have access to a range of goods and services at reasonable costs;
4.                                  The right to seek redress against unfair commercial practices, restricted trade practices, or unscrupulous exploitation of consumers;
5.                                The right to be heard and the assurance that one's interests would be given proper attention at suitable forums;
6.                                  The right to consumer education.
 
The Act of 1986 establishes a quasi-judicial system for the resolution of consumer-related issues. The tenets of natural justice serve as the foundation upon which this quasi-judicial body functions. The Act also gives these organizations the authority to provide specified types of remedy and give the person that was wronged the necessary compensation when they see proper.
Chapter III of the Consumer Protection Act, 1986 deals with the following:
 
1.                                  The establishment of three tier Consumer Disputes Redressal Agencies namely the District Forum, the State Commission and the National Commission.5
2.                                      Composition of District Forum6, the State Commission7, and the National Commission8.
 
 

5 S.9, The Consumer Protection Act, 1986. 6 S.10, The Consumer Protection Act, 1986 7 S.16, The Consumer Protection Act, 1986 8 S.20, The Consumer Protection Act, 1986
3.                                  the jurisdiction of the District Forum9, the State Commission10, and the National Commission.11
Who is a Consumer?
 
As per sec. 2(d) of the Act, ‘consumer’ has been defined as any person who:
 
1.                                  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 per son who obtains such goods for resale or for any commercial purpose; or
2.                                  hires or avails of any services 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 services 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.
In the case of Dinesh Bhagat v. Bajaj Auto Ltd., the Delhi State Commission had to deal with an instance where A bought a scooter and B had been in possession of it ever since. Periodically, B took the scooter in for repairs. Later, B sued the seller because of complaints he had about the scooter. Since B did not initially buy the scooter, the seller argued, they were not responsible for him under the Consumer Protection Act of 1986 because he was not the consumer. The Delhi State Commission determined that since B, the complainant, was using it with the buyer A's consent, he qualified as a consumer for the purposes of the Act.12

9 S.11, The Consumer Protection Act, 1986. 10 S.17, The Consumer Protection Act, 1986 11 S.21, The Consumer Protection Act, 1986.
12 Dinesh Bhagat v. Bajaj Auto Ltd. (1992) III CPJ 272

Ø    ANALYSIS AND POSSIBLE LOOPHOLES OF THE ACT:

·                                  The Act doesn't address the rights of consumers as a group. It doesn't deal with issues that are detrimental to the interests of the general public and consumers, and it lacks the authority to search and seize things. Most unethical business practices or deceptive advertising are not looked into as seriously.
·                                 There are no provisions in the legislation addressing deceptive advertising.
·                                    Endorsers' culpability is not specifically addressed in this clause. Additionally, endorsement is not defined.
·                                  "Product liability," a crucial provision of CPA, 1986. It refers to the obligation of a product seller or manufacturer to make up for any harm done to a customer as a result of a product's flaws during production or sale or due to a service provider's shortcomings.
·                                  The Act must work to broaden the meaning of "deficiency," as per Clause 2(11), to encompass reckless acts of omission or commission, as well as the purposeful withholding of pertinent information that results in a loss or injury to the consumer.
·                                  The new draught includes a section on "unfair contracts" that is absent from the current law. A contract between a manufacturer or a merchant and a consumer result in material changes to the consumer's rights.
·                               Neither the establishment of a consumer mediation cell nor the referral of a dispute to mediation as an alternative dispute resolution mechanism are provided for in the current Act.
·                                   Based on current market patterns, the Bill intended to increase the District Forum's pecuniary jurisdiction, which is now 20 lakhs for the District Forum and one crore for the State Commission. Now, cases up to one crore will be handled by the District Commission, cases up to ten crores by the State Commission, and cases above ten crores by the National Commission.
 
 
 
 

 
 
Ø    COMPARATIVE ANALYSIS: CONSUMER PROTECTION ACT, 1986 (OLD ACT) V. CONSUMER PROTECTION ACT, 2019 (NEW ACT)13
 
KEY POINTS
OLD ACT
NEW ACT
 
PECUNIARY JURISDICTION
District forum (upto 20 lacs) State commission (from 20 lacs to 1 crore) National commission (from 1 crore and above)
District forum (upto 1 crore) State commission (from 1 crore to 10 crore) National commission (from
10 crore and above)
MRP/PURCHASE PRICE
Earlier MRP was a criteria to decide pecuniary jurisdiction
Now discounted          price/ actual purchase price is
criteria
TERRITORIAL JURISDICTION
Where seller has office
Where complainant resides or works
REGULATOR
No such provision
Central Consumer protection authority to be formed
MEDIATION
 
No such provision
Court can refer for settlement through mediation (Section 80)
APPEAL
Earlier 30 days period for appeal against the order of District forum (Section 15) Earlier 50% or 25,000 whichever is less is to be deposited
Now it is 45 days (Section 41) Now 50% of award amount
E-COMMERCE
Earlier no specific mention
Now all provision applicable to direct seller has been extended to e- commerce
REVIEW
Earlier DCF did not have the power to review
Now DCF has power to review
UNFAIR      TERMS AND CONDITIONS
No such provision
Section 49(2) and 59(2) of the new act gives power to the State Commission and NCDRC respectively to declare any terms of contract, which is unfair to
any consumer, to be null and void
AUTHORITY
District     consumer    forum,                 State consumer    forum,                 National
District Commission, State Commission,           National
 
consumer,        Dispute      Redressal Commission
Consumer, Dispute Redressal Commission
COMPOSITION
OF STATE COMMISSION
President and 2 other members
President      and    4    other members.

Ø    RELEVANT CASE LAW:

 
1.                               Chief Administrator, H.U.D.A. & Anr. v. Shakuntala Devi (Supreme Court)14
In the matter, the Respondent claimed that despite having paid the entire amount of the plot/allotment in accordance with the terms and conditions of the allotment letter, the Appellant had not yet granted her possession of the site. As there was a delay in transferring physical ownership of the site, the State Commission ruled that the Respondent had shown a fault in the Appellants' performance and was entitled to compensation. The National Commission upheld the State Commission's decision on appeal.
 
2.                               Indian Medical Association v V.P. Shantha and others
In deciding this instance of a lack of medical service, the court determined that the services provided by a medical practitioner fall under the definition of "services" as stated in section 2(1)(o) of the Act. It denied the claim that a doctor is not subject to the CPA since they are professionals and are covered by the Indian Medical Council Act.
In addition, it was determined that a service that was otherwise free would not fall under the definition of services if a small fee was charged (for hospital administrative needs). Additionally, it would be considered comparable to paying for the service yourself if the employer or insurance provider paid the cost.
 

Ø    A STUDY OF ITS SUCCESS:

Arguing in favour of a wider range of people being able to petition consumer courts. Due to the strictness of the law, only a "consumer," or a person who makes purchases of goods and services, could go before a court to file a complaint about unfair business practices.
 

14 (2017) 2 SCC 301.


This definition of unfairness may be considered restrictive because it presumes that only consumer rights may be violated. It excludes deceptive business tactics used by rival businesses that might harm product sales.15
The CPA has had very little defence against dishonest business practices. Under the CPA, a firm is not a consumer and is ineligible to contact a consumer forum. To prevent its competitors from engaging in unfair trade practices in a competitive setting, a corporation needs an institutional platform. Unfair business practices may also result in losses for a company. For instance, the business might suffer losses if an advertisement attacked the goods of another company. In reality, the only parties that may submit a complaint about an unfair trading conduct to a consumer forum are consumer associations. Due to the absence of any regulations, commercial firms have engaged in unfair business practices.16
 

Ø    CONCLUSION AND SUGGESTIONS:

The Act achieved its goals and was effective. However, it may be argued that the Consumer Protection Act also experienced some growing pains and underwent a number of revisions between 1991 and 1993. As it covers all forms of consumer interactions, it has proven helpful in relieving customer stress. It shields customers from the burden of limiting and dishonest business practices and services. Additionally, it safeguards the customer from subpar services. In balancing the interests of service providers and users, the judiciary has been crucial.
One of the prerequisites for fostering a culture of good governance and, as a result, guaranteeing stronger promotion and protection of the rights of consumers, is the effective, efficient, and fair execution of the Consumer Protection Act. There won't be any grounds for complaints if consumers' rights regarding the calibre of the products and services are guaranteed and taken care of. With certainty, this circumstance would foster an environment where clients, customers, and consumers would feel satisfied with the needs

15 How Consumer–friendly is the Consumer Protection Act? epw engage, https://www.epw.in/engage/article/ how-consumer-friendly-consumer-protection-act, last seen on 29/11/2022.
16 Akhileshwar Pathak, Amending the Consumer Protection Act, 1986, Economic and Political Weekly (Oct 2015), https://www.epw.in/journal/2015/43/commentary/amending-consumer-protection-act-1986.html, last seen on 29/11/2022.
that were most important to them. In order to make a connection with the problems of the Consumer Protection law and institutions, the issues of good governance in this context need to be briefly stated.

Ø    BIBLIOGRAPHY:

 
4.                             epw.in
5.                             The Consumer Protection Act,1986. 6.The Consumer Protection Act,2018.