DATE: - 23RD MAY 2024

CONSUMER LAW& PROTECTION:

With the Indian market expanding, it is crucial to have knowledge of customers’ rights and
the legal safeguards in place. This article gives an overview of consumer laws in India with a
focus on its evolution and significance of Consumer Protection Act.
Who is consumer?

The word ‘consumer’ is a comprehensive concept. The definition provided under Section 2(7)
of the CP Act, 2019, along with the explanation clause, clearly and unambiguously explained
the term ‘consumer’. This subsection almost exactly copies the word ‘consumer’ from
Section 2(1)(d) of the previous CP Act, 1986. But the only difference is that in the new Act,
there is an insertion of an ‘explanation’ clause to avoid vagueness and uncertainty.

 District Consumer Forums: Claims up to ₹50 lakh.

 State Consumer Commissions: Cases above ₹50 lakh but below ₹5 crore.
 National Consumer Disputes Redressal Commission: For claims exceeding ₹5 crore.
 Consumer Fora Online: Through online platforms for complaints filing at ease.
 Beyond the Act: Other Relevant Laws The only piece of legislation that is relevant is
the Consumer Protection Act. There are other laws that also give protection in specific
areas like:

 The Food Safety and Standards Act, 2006: To protect consumers against food
adulteration and ensure good food quality.
 The Real Estate (Regulation and Development) Act, 2016: To prevent frauds
against homebuyers in real estate sector
 The Information Technology Act, 2000: It deals with cyber-crimes and
regulates e-transactions

CONSUMER PROTECTION ACT, 1986.

The Indian government has enacted several consumer protection regulations to prevent
shortages, unfair prices, adulteration, and other similar malpractices that create problems for
consumers. Consumer law is a broad concept that includes those laws that are made by
Parliament, such as the Monopolies and Restrictive Trade Practices Act, 1969, the Prevention
of Food Adulteration Act, 1954, and the Essential Commodities Act, 1955, among many
others.

The passage of the Consumer Protection Act in December 1986 under the leadership of the
late Mr. Rajiv Gandhi, the then Prime Minister of India, is a very important achievement in
the history of the consumer movement and hence marked a significant turning point in the
concept of consumer law in India.

CONSUMER RIGHT AS PER THE CONSUMER PROTECTION ACT, 1986

Consumer Right: -

1. Right to Safety 4. Right to be heard

2. Right to be informed 5. Right to seek Redressal

3. Right to Chose 6. Right to Consumer Education

1. Right to Safety
According to section 2(9)(ii) of the consumer Act, 2019, a legal right is given to every
consumer to be protected from those goods and services that endanger life and property.
Her it is also pertinent to note that every product and service brought by consumers
should not only serve their present requirements but also their long-term interests.
Right to safety not only ensures the standard and quality of a good at the moment of
purchase but also after the purchase of the said good. This conveys that the products sold
by sellers should satisfy consumer’s long-term expectations regarding their safety.
Therefore, consumers have the right to demand both product quality and the guarantee of
the goods and services before making any purchase. And, services are not an exception,
even services rendered by services providers should ensure that they would not harm the
health of consumers.
Thus, this right is crucial because it safeguards the consumers from the risk and harm to
our bodies, lives, health, and property caused by the negligence or wilful misconduct of
sellers, buyers, or service providers.
2. Right to be informed
According to Section 2(9)(ii) of consumer protection Act, 2019, every consumer is
conferred with a right to be informed concerning all aspects of goods, products or
services such as quality, quantity, potency, purity, standard and price as the case may be.
This Right is given to consumers to protect them from unfair trade practices.
Additionally, this right was made an integral part of Articles 19 and 21 by various
judicial pronouncements.
According to section 2(47)(vii) of the consumers protection act, 2019, “unfair trade
practices” are defined as when a trader or service provider fails to give a receipt for the
products sold or service offered. This provision was included in the new Act since it is
the consumer’s right to be informed about the cost of the goods or services they are
buying or hiring.
Furthermore, by using the provisions of the Right to Information Act, 2005, any
consumer has the right to obtain information against any public authority which is
dealing with the selling of products or the rendering of services. This Information about
the details of the product or service, as the case may be, can be received through the said
act. It should be noted that willful concealment of pertinent information by a service
provider constitutes a “deficiency” in the said service under section 2(11) of the
Consumer’s act, 2019, According to the law.
The central Information Commission, a body Constituted Under the Right to Information
Act (RTI), 2005, in Nisha Priya Bhatia v. Institute of Human Behaviour and Allied
Sciences, held that denial of Information to the RTI Applicant, who is also a consumer of
the hospital, amounts to the denial of his “Right to be informed” of services rendered to
him.

3. Right to choose
The right to choose, which is provided under Section 2(9)(iii) of the consumer protection
Act, 2019, refers to be guaranteed access to a wide range of goods and services that are of
good quality and at reasonable prices wherever possible, especially in the case of
monopoly kind of market economy. The right to basic and essential goods and services is
 also included in the ambit of the right to choose. This is because the majority may not
receive its fair share if the freedom of choice of the minority is unlimited.
In an Imperfect Competition market, where a range of products are offered at competitive
prices, this right can be properly and efficiently exercised by the consumer. Additionally,
in such a competitive Market, a consumer has the privilege to choose the product of his or
her choice and to be satisfied with the range of options available in terms of quality and
cost of the product or service.
But, in several Sectors and locations in India, there are Currently no such markets.
However, even in those situations where there is diversity, retailers are not providing
consumers with the full choice of products because they are concerned about the earnings
they may make. The Consumer gets the impression that there is either no variety or it is
not readily available. Therefore, in order to protect the rights of consumers, the right to
choose is given to them.

4. Right to be Heard
The right to be heard is provided under section 2(9)(iv) of the Consumer’s protection Act,
2019. With the enforcement of this right, the interests of the consumers will be adequately
and fairly taken into account in relevant forums. It also involves the right to be
represented in a variety of forums that are established to look out for welfare of
consumers by hearing their concerns. Above all, right to be heard is also one of the
principles of natural justice. Every Person, including consumers, should be given a
chance to present his or her claims and prove the damage he or she suffered before
appropriate commissions which are empowered by the said Act.
Both the state and the non-profit organisations are expected to incorporate these essential
forums for the enforcement of this particular right. Hence, the government of India
established consumer forums at the district, state, and national levels to hear consumer
complaints and grievances by virtue of the provisions of the Consumer protection Act.
For Purpose of being represented on various committees established by the government
and other entities on subject relevant to consumers, the consumers themselves have begun
to form voluntary, non- Governmental and non- profit consumer organisations.

5. Right to seek Redressal

This Right, which was given under section 2(9)(v) of the consumer protection Act, 2019,
gives a consumer an opportunity to file a complaint against unfair trade practices or the
 unscrupulous exploitation of consumers by product sellers or service providers. It also
involves the right to a proper resolution of the consumer’s complaints and grievances.
Aggrieved consumers who have genuine complaints have the right to lodge a complaint
before appropriate courts and seek redress for the loss suffered by him or them. Redressal
is the logical step after complaints are heard and a resolution is reached.
This right also ensures the recovery of the money paid by consumers for buying products
or services that later turned out to be defective or deficient. The effective use of this right
depends on the existence of legislation and processes for filling complaints. Also, several
laws, including the consumer protection act, allow complaints to be filled in different
courts.
Sometimes Consumer’s problems may be of little value, but they may have a huge impact
on society as a whole. They can also request the aid of consumer advocacy groups to help
them resolve their disputes.

6. Right to Consumer Education

This right, which was provided under section 2(9)(vi) of the consumer protection Act,
2019, ensures that a consumer has the freedom to develop the knowledge and skills
necessary to make wise and informed decisions as a prudent consumer. This right is given
due to the ignorance of consumers, especially those who live in rural areas, and they’re
not being fully aware of the consequences of buying or availing of the goods or services,
which is the main cause of their victimisation. Thus, they must be aware of their rights
and actively exercise the same, and information must be accessible at different levels and
in different ways. Only then can successful and effective consumer protection be
accomplished.
As a result, it becomes the responsibility of the government to inform consumers of their
rights. Their education also includes raising consumer awareness. This will support
consumers in safeguarding themselves against false, deceptive, and blatantly misleading
advertisements, and other business activities. Also, consumers may advocate for
themselves by becoming informed about their rights and problems.
Consumer Education also increases vigilance and the capacity to inquire about the cost
and quality of goods. In a sense, the right to consumer education is a crucial tool for
exercising other consumer rights. Therefore, we must give consumer education it
deserves.
SPECIFIC ISSUES RELATING TO CONSUMER’S RIGHT:
1. LACK OF AWARENESS.
Mainly among rural regions, there is a complete lack of awareness about one’s rights
being a consumer and how to employ them. Therefore, it is important to raise
consumer awareness among all facets of society, but especially among the illiterate
and, even more so, vulnerable and backward classes. The present situation is such a
way that even some educated consumers are unaware of both their legal rights and the
availability of consumer dispute resolution forums.
The central government, the states, and non-profit consumer organizations working in
both urban and rural areas are doing a lot to raise awareness of this issue. Informed
Citizens, educators, students, and journalists have a specific purpose to increase these
efforts.

2. RESPONSIBILITY.
There is a lack of responsibility. There are two different kinds of responsibility. One
obligation is to uphold our rights, and the other is to fulfil our obligations relating to
those rights as a consumer. It is practical to say those laws by themselves have no
function if not being aware of the public at large and enforced with responsibility.
Therefore, these rights will only exist on paper until we educate ourselves about the
laws, let the traders know that we aware of them, have the necessary power to file
complaints against rights violations, and continue to act upon such complaints. This
would be a real solution to most of the consumer problems prevailing in India.

CONSUMER’S OBLIGATIONS AS A CORRELATION TO THEIR RIGHTS:

The statement that rights and obligations are two sides of the same coin is a reality.
Also, the concept of consumer protection, we should not only take consumer rights
into account but also should focus on the obligations of consumers.
Consumers have two different types of obligations.
 Fulfilment of obligations by a consumer for one’s protection
 Consumer’s obligations towards others

FULFILLMENT OF OBLIGATIONS BY A CONSUMER FOR ONE’S

PROTECTION.
 The First Obligation is the fulfilling of obligations that are necessary for the
protection of our rights as consumers.
For Instance, it is the responsibility of the consumer to only purchase products with
the ISI mark, especially where safety is paramount, such as electronic equipment,
technical items, helmets, etc, to effectively defend his or her right to safety and a
healthy environment. The same principles apply to food, especially spices, oils, ghee,
atta, etc. Purchasing packed foods with an AGMARK1 certification is the
responsibility of the consumer.
The 4 rights protected by AGMARK products were:
1. The right to safety
2. The right to information
3. The right to make a choice
4. The right to be hears
Even, when purchasing packaged goods, consumers are responsible for checking
the batch number, manufacturing date, date of expiry, any warnings or instructions
given and other information.

A consumer cannot rely solely and blindly on the claims of advertisements while deciding to
purchase a product. Even if they try, consumers cannot avoid advertisements because these
have intertwined themselves into the everyday life of a consumer. But still, consumers should
always be on the alert whenever they come across misleading marketing strategies that could
tempt them to purchase goods that are not what they want to purchase.

In addition, each consumer is obligated to request a receipt after purchasing products or

services. The receipt serves as evidence of purchase and has the potential to start a lawsuit if
the consumer feels defrauded after purchasing the goods. Because it is required for the
vendor to include the tax amount on the bill, the customer can also ensure that the
government is receiving tax on the goods through the bill. The consumer becomes a
responsible citizen of the nation through such an action. In a nutshell, a consumer should be
an informed and prudent person all the time and make purchasing decisions wisely.

CONSUMER’S OBLIGATION TOWARDS OTHERS:

1
AGMARK is a certification mark employed on agriculture products in India, assuring that they conform to a set standard
approved by the Director of Marketing and Inspection (DMI), Department of Agriculture, Cooperation and Farmers Welfare
under Agricultural Produce (Grading marking) Act, 1937
The second obligation is consumer’s obligation towards others. These could be referred to as
our social and ecological obligations. In another terms, it means that as consumer we should
choose wisely what we buy and consume. Concerns with careless consumption include
pollution, the depletion of resources and energy and the growth of hazardous waste.

The Consumer’s right to a healthy environment is impacted by the purchase of an inferior car
that produces excessive smoke which is hazardous for the environment. Overbuying products
that are in short supply interferes with other’s rights to availability, fair pricing, etc.
Therefore, we should not lose sight of the fact that our purchase decisions have an impact on
others, particularly the environment.

CASE LAW:

1. Partap Singh vs. Delhi Transport Corporation (1990): It was this case that
introduced liability without fault for producers and retailers of faulty goods.
2. The Consumer Education and Research Centre vs. Nestle India Ltd. (2009): The
judgement in this case guaranteed citizens the right to know information regarding
production and consequently necessitated recall of Maggi Noodles due to high levels
of lead content.
3. State Bank of India vs. Santosh K. Mishra (2012): In this case, it was held that banks
were responsible for deficiencies service, unfair trade practices etc.
4. Food Safety and Standards Authority of India vs. M/s Modern Food Industries
Ltd., (2014): This case brought out the need for food security within the country thus
levying heavy fines against Modern Food Industries over selling Magi’s noodles.
5. Laxmi Engineering works v. P.S.G. Industrial Institute (1995): The case is
landmark judgement that made the understanding term “Consumer” easier. The
Supreme Court not only interpreted the word “Consumer” but also provided
appropriate definitions of other words like “Commercial Purpose”, “Livelihood” and
“self- employment” whose interpretation is very essential to know.

FACTS: - The Appellant (Laxmi Engineering Works) is a privately owned business that
was incorporated as part of the Employment promotion program. It is listed as a small-
scale industry with the Maharashtra directorate of industries. It received financial support
from many sources, one of them being the Maharashtra State Finance Corporation, in the
 form of a term loan of Rs. 22.10 lakhs. One day, Laxmi Engineering Works ordered a
PSG 450 CNC Universal Turing Central Machine from the respondent, P.S.G. Industrial
Institute, and requested to supply it on May 28, 1990. The appellant alleged in court that
the respondent delivered the said machine six months after the agreed period, and that,
too, was a defective one. Several flaws were discovered quickly after it was assembled
and put into use, and the appellant informed the respondent of the same.

Although the respondent sent some people to fix the defects after prolonged contact between
the parties, the machine was still unable to be restored to working order. The appellant claims
that he was experiencing significant financial loss due to the malfunctioning of the machine.
As a consequence, the appellant filed a consumer complaint with the Maharashtra Consumer
Disputes Redressal Commission (MCDRC), demanding an amount of Rs. 4,00,000/- from the
respondent.

ISSUES OF THE CASE:

1. Whether appellant in the present case is a consumer as defined in section 2(1)(d) of

the Consumer protection Act, 1986 or not?

2. What do the “Commercial purpose” and “Self-Employment”, which are mentioned

under the explanation clause of the subsection in the act, mean?

JUDGEMENT: The appeal was rejected without costs. Regarding the type and
features of the equipment and supplies, it was determined that the appellant did not
buy them for his own use or to support himself through self-employment, as
previously described. As a result, this decision was consistent with earlier judicial
decisions and the definition of ‘commercial purpose’ provided by the amending Act.
The most important factor in determining whether a person qualifies as a consumer is
whether the reason, they purchased the goods was ‘commercial’ in accordance with
the definition of ‘consumer’ in Section 2(d) of the Act.
The Court further held that the orders of the District Commission, the State Commission, and
the National Commission are final, as declared in Section 24, and cannot be questioned in a
civil court. The issues decided by the said authorities under the Act cannot be re-agitated or
questioned in a civil court.

6. INDIAN MEDICAL ASSOCIATION V. VP SHANTHA AND ORS (1995): In the

landmark case, the supreme court of Indian included “Medical Negligence” and
medical services under the purview of “deficiency” of service and “service”, thus,
making the definitions of deficiency and service wide and exhaustive.

ISSUES: -

1. Whether the service provided at a hospital or nursing home by a medical

practitioner qualifies as “services” under section 2(1)(0) of the act.

2. Whether or not hospitals and doctors are covered by consumer protection Act of
1986.

3. Under what conditions a medical professional can be considered to be performing

“service” under section 2(1)(0) of the consumer Protection Act, 1986.

JUDGEMENT: -

With this landmark judgment, in 1995, the Consumer Protection Act of 1986 was expanded
to include medical services, which helped consumers who were the victims of medical
malpractice receive more expeditious and affordable justice. The definition of “service” as
stated in Section 2(1)(o) of the Act would apply to services provided at a non-government
hospital or nursing home where fees are required to be paid by those who can afford to pay
and services are provided free of charge to those who cannot afford to pay, even though the
services are provided to those who cannot afford to pay for such services. Under the Act, a
free service would likewise qualify as a “service,” and the recipient as a “consumer.”

7. HINDUSTAN COCA-COLA BEVERAGES PVT. LTD. V. PURUSHOTTAM

GAUR AND ORS (2014): -
 FACTS: - The complainant went to the District Commission and claimed that the
Coca-Cola company was in charge of the sale of poor-quality drinks. For a deficiency
in service, the complainant sought significant damages from the company. In defence
of itself, the company said that there was no proof that it had produced the alleged
bottle. They said that the product is fake and that their packaging facility has the most
recent technology and high standards of hygiene, so there is no chance that an insect
could get inside the bottle. The District Commission rejected the case, but the State
Commission upheld the appeal made by the complainant and awarded him Rs. 10,000
while charging the company Rs. 3,000 in expenses.

The inspection of the bottle reveals one huge insect (about 10 mm in size) lying on the
surface of the container; two small insects and various insect body parts are floating in the
fluid, according to a laboratory report that was also presented to NCDRC in this case. The
laboratory also noted in the report that several characteristics of the bottle in issue were
distinct from those of a “Fanta” bottle bought from the market, but that in order to be certain,
the laboratory would require bottle samples from the batch code displayed on the bottle.

ISSUES: Did the company act negligently when creating both the bottle and the “Fanta” soft
drinks?

JUDEGMENT: NCDRC determined that the company failed to make any attempt to assist
the laboratory staff and that no inquiries into the source of that bottle were made by the
company. This bottle looks to belong to the Company, at least in the beginning. The Court
also stated that the evidence was in the favour of the Coca-Cola company, hence the revision
petition was denied. The consumer who discovered insects in a “Fanta” bottle received Rs.
10,000 in compensation from the NCDRC, which upheld the decision of the State
Commission.

8. SPICEJET LIMITED V. RANJU AERY (2017):

FACTS:

The complainant, Ranju Aery, purchased flight tickets from the opposite party, M/s.
Spicejet Ltd., through online over the website “Yatra.com” for travelling with her
family from Kolkata to New Delhi on June 30, 2015. When the complainant and his
family arrived at the airport situated in Kolkata at 1:30 p.m. to board the flight from
Kolkata to New Delhi, which was supposed to depart at 20.40 hours, they were
astonished to learn that the trip had been cancelled. The complainant and her family
were not given any other options by Spicejet Airlines for their flight to New Delhi. As
a result, the complainant was forced to purchase tickets for a different flight from
Kolkata to Mumbai, with another flight from Mumbai to New Delhi departing at
20.40 hours. The complainant paid Rs. 80,885 for the stated trip. Hence, the
complainant lodged the relevant consumer complaint. The complainant claimed that
the other party had not provided a backup flight nor issued a price refund for the
cancelled flight. They also requested orders from the court to the opposite party to
repay the value of the cancelled flight ticket, which was Rs. 20,000, plus interest at a
rate of 12% per year. Additionally, they requested that the OPs give them guidelines
on how to pay for the extra Rs. 80,885 that they had already paid for a different flight.
In addition, the complainant asked for Rs. 22,000 as court costs and Rs. 1.5 lakhs as
damages for mental agony. Upon hearing the matter, the District Commission issued
an ex-parte order in favour of the complainant and directed Spicejet Airlines to
compensate the complainant Rs. 80,885/- after subtracting the expense of the flight
tickets of the cancelled flight from Kolkata to New Delhi, with addition to interest at a
rate of 9% per year from the cancellation date of flight until realisation. Additionally,
they ordered Spicejet Airlines to pay Rs. 1.25 lakhs in damages for harassment and
Rs. 10,000 for legal expenses. Later, the airline filed an appeal to the State
Commission against the ruling given by the District Commission, which resulted in
upholding the previous decision. Hence, the opposite party approached NCDRC in a
way of appeal.

ISSUES:

1. Whether the petitioners were properly served in proceedings before the district
forum and whether the ex- parte order imposed against them is appropriate?

2. Can a consumer who purchased through an online platform be allowed to initiate

an action anywhere?
JUDGEMENT:

The NCDRC Rejected the arguments of the airline company and found that the airline had
provided deficient service by cancelling the flight without providing a valid justification.
Also, NCDRC observed that the entire family of the complainant was subjected to
harassment as a result of the cancellation of the flight.

On Appeal to supreme Court, the supreme court decided that consumers choosing to buy
goods through online platforms may lodge a consumer complaint for deficiency of services
before any consumer court.