Introduction and Features: The Consumer Protection Act, 2019 | Law of Torts - CLAT PG PDF Download

Introduction

• According to Mahatma Gandhi, a customer is crucial to a business. They are not dependent on the business; rather, the business is dependent on them. Customers are not interruptions but the very purpose of the business.
• The digital age has transformed shopping through e-commerce, offering consumers easier access, more choices, and time-saving shopping methods. However, this rapid digitalization highlighted the need for updates in consumer protection laws.
• The Consumer Protection Act, 2019 (referred to as the 2019 Act) replaced the outdated Consumer Protection Act, 1986 (the 1986 Act) to address these challenges. The 2019 Act was enacted on August 6, 2019, marking a significant update in consumer protection.
• In everyday language, a consumer is someone who uses or consumes something. We are all consumers throughout our lives, even before birth, as we consume essentials like air, water, and food.
• Legal terms often have specific definitions in statutes. For instance, under the Consumer Protection Act, terms like consumer, defect, deficiency, person, trader, and service have special legal meanings that should be applied when interpreting the Act.
• Generally, a consumer under the Act is someone who purchases goods or avails services for remuneration, or for whom the goods are intended for use.

Basic Consumer Rights

• The Right to Safety ensures protection against hazardous goods and services.
• The Right to be Informed guarantees access to necessary information about products and services.
• The Right to Choose empowers consumers to select from a variety of goods and services.
• The Right to be Heard allows consumers to voice complaints and concerns.
• The Right to Seek Redressal enables consumers to pursue remedies for grievances.
• The Right to Consumer Education promotes awareness about consumer rights and responsibilities.

Salient Features of the Consumer Protection Act, 2019

• The Act aims to provide holistic protection to consumers, offering even better safeguards than the 1986 Act.
• It is applicable throughout India, with the exception of the state of Jammu and Kashmir.
• The Act covers all goods and services unless specifically exempted by the Central Government, excluding free services and contracts for personal services.
• It includes e-Commerce transactions and has specific provisions for such activities.
• The Act provides a comprehensive definition of services, encompassing services of any kind offered by individuals or organizations.

Key Features of the Consumer Protection Act, 2019

• The Act applies to both public and private sector suppliers of goods and services, including government agencies.
• Concept of product liability introduced, covering product manufacturers, service providers, and sellers for compensation claims.
• Simple and inexpensive redressal of consumer grievances through a straightforward complaint procedure.
• E-filing of complaints for convenience, especially for busy consumers.
• Set time frame for settlement of disputes.
• Class action provision for consumers with common interests and grievances.
• Mediation as an Alternate Dispute Resolution mechanism for quicker dispute resolution.
• Formation of Consumer Protection Councils to promote consumer rights, though without legal authority.
• Central Consumer Protection Authority (CCPA) established with enforcement powers to investigate consumer law violations.
• Protection against defective and hazardous goods, deficient services, and unfair trade practices like hoarding and black marketing.
• Covers restrictive trade practices.

Overview of the Consumer Protection Act, 2019

• Consumer Protection Act, 2019 was enacted in India to safeguard consumer interests and address grievances effectively.
• It introduced Mediation as an alternate dispute resolution mechanism for quicker resolution of disputes.
• Formation of Consumer Protection Councils was mandated to promote consumer rights, although these councils do not have legal authority.
• The Central Consumer Protection Authority (CCPA) was established with enforcement powers to investigate violations of consumer law.
• The Act provides protection against defective and hazardous goods,deficient services, and unfair trade practices such as hoarding and black marketing.
• It also covers restrictive trade practices.

Consumer Protection Act, 2019: Key Features

• Unfair Trade Practices: The Act addresses unfair trade practices such as food adulteration, overcharging, and short weighing on fixed price items and packaged commodities. Grievances related to these practices can be taken directly to District Forums.
• Definition Expansion: The 2019 Act broadens the definition of unfair trade practices to include the unauthorized sharing of personal information provided by consumers in confidence, unless disclosure is mandated by law.
• Misleading Advertisements: Provisions against misleading advertisements are included in the Act, holding individuals who endorse such advertisements, like brand ambassadors, liable.
• Penal Liabilities: The new Act introduces penal liabilities for certain violations.
• Social Welfare Legislation: The Act is viewed as a progressive instance of social welfare legislation, strengthening the consumer movement in India. It is unique as it addresses market-related complaints and seeks redressal for issues arising from market interactions.
• Consumer Protection: The Act prioritizes customer interests, protecting consumers from unfair and exploitative business practices such as selling defective goods and providing poor services.

Definition of 'Consumer' under the Consumer Protection Act, 2019

• The term 'consumer' is defined in section 2(7) of the Consumer Protection Act, 2019. A consumer can be a consumer of goods or a consumer of services.
• Section 2(7)(i) defines a consumer of goods, while section 2(7)(ii) defines a consumer of services.
• Explanation (b) to section 2(7) clarifies that the terms 'buys any goods' and 'hires or avails any services' encompass offline or online transactions conducted through electronic means, teleshopping, direct selling, or multi-level marketing.

Consumer of Goods [Sec. 2(7)(i)]

• A consumer of goods is essentially a buyer of goods intended for personal use or for the use of someone else. Individuals who purchase goods for resale or for commercial purposes do not qualify as consumers.
• According to Section 2(7)(i), a 'consumer of goods' is defined as any person who buys goods for consideration. The term 'buys' indicates that the transaction is a 'sale,' and consideration refers to the 'price.'
• Consideration, or price, may have been paid, promised, partly paid and partly promised, or arranged under any system of deferred payment.

Key Definitions

Consumer

• A consumer is anyone who buys goods or services for personal use, whether for themselves or someone else.
• If someone uses goods with the buyer's approval, they are also considered a consumer. However, if someone buys goods for resale or commercial purposes, they are not a consumer.

Goods

• Goods are defined as movable property, including food as per the Food Safety and Standards Act, 2006.
• According to the Sale of Goods Act, goods are movable property excluding actionable claims and money.
• Moveable property includes items like stock and shares,growing crops, and things attached to land if they are agreed to be severed before sale.
• Goods do not include actionable claims and money.

Food

• Food is any substance intended for human consumption, including processed, partially processed, or unprocessed items.
• It encompasses primary food, genetically modified food, infant food, packaged drinking water, alcoholic drinks, and substances used in food preparation.
• However, it does not include animal feed, live animals (unless prepared for human consumption), plants before harvesting, drugs, cosmetics, and psychotropic substances.

Primary Food

• Primary food refers to food articles produced through agriculture,horticulture,animal husbandry,dairying, or aquaculture in their natural state.