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“CONSUMER PROTECTION ACT OF 2019: A STUDY OF MEASURE OF ITS SUCCESS” by – Janet. P. Patil
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“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.
Article Information
“CONSUMER PROTECTION ACT OF 2019: A STUDY OF MEASURE OF ITS SUCCESS” by – Janet. P. Patil
Authors: Janet. P. Patil
- Journal IJLRA
- ISSN 2582-6433
- Published 2022/12/10
- Volume 2
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
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