Chapter #1

CONSUMER
PROTECTION
ACT, 2019
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The Consumer Protection Act, 2019

Notified in Official Gazette of India on 9 August 2019.
It has come into force from 20th July, 2020.

As provided in section 10 of this Act, the CENTRAL CONSUMER PROTECTION

AUTHORITY (CCPA) has been established w.e.f. 24th July, 2020.

An Act to provide for BETTER protection of the interests of consumers and for the said
purpose, to establish authorities for timely and effective administration and settlement of
consumers' disputes and for matters connected therewith or incidental thereto.

Section 1 – Title and Applicability of the Act.

(1) This Act may be called the Consumer Protection Act, 2019.
(2) It extends to the whole of India except the State of Jammu and Kashmir. BUT …

To whom the Complaint shall be filed? - It depends upon the value of the goods
or services paid as consideration by the consumer –

Amount Of Value Of Goods or services paid as Relevant Consumer court

consideration (Pecuniary Jurisdiction)
IF (V) is up to Rs. 50 lacs. District Commission
V= value of defective goods or services or services
paid as consideration
IF (V) is more than Rs. 50 lacs, but up to Rs. 2 crore. State commission
IF (V) is More than Rs. 2 crore. National commission
(NCDRC)

NOTE - Complaint cannot be filed to Supreme Court directly.

Important Definitions – Section 2
Section 2. In this Act, unless the context otherwise requires,—
(7) "consumer" means any person who—
(i) 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

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(ii) 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,—
(a) 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;
(b) 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;

Consumer means -

Any PERSON who -

Buys the “GOODS” or Hires the “SERVICES”

and includes and includes

Any LAWFUL USER of such goods Any BENEFICIARY of such

(who uses the goods with services.
permission of such buyer)

But does not include But does not include

Any person who buys the Any person who hires

Inserted
the services for -
goods for -
in

2002
Commercial purpose

Resale Commercial
or purpose

NOTES -
1. Livelihood – [Exception of commercial purpose]

COMMERCIAL PURPOSE does not include use by a consumer of goods bought and used by
him & services availed by him exclusively for the purpose of earning his LIVELIHOOD, by
means of SELF-EMPLOYMENT.
2. Consideration - CONSUMER means any person who buys any goods OR hires any services
3. Before
FOR the insertion in–2002, even a person who was hiring the services for commercial
A CONSIDERATION
purpose was considered as consumer.
• which has been paid, or
• promised, or
• partly paid and partly promised, or
• under any system of deferred payment [EMI].

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Example 1: A purchased a scooter which was in B’s possession from the date of purchase. B was
using it and taking it to the seller for repairs and service from time to time. Later on B had a
complaint regarding the scooter. He sued the seller. The seller pleaded that since B did not buy the
scooter, he was not a consumer under the Act. The Delhi State Commission held that B, the
complainant was using it with the approval of A, the buyer, and therefore he was consumer under
the Act. [Dinesh Bhagat v. Bajaj Auto Ltd. (1992)]

Note : This is an exception to the general rule of law that a stranger to a contract cannot sue.

PERSON BUYING GOODS FOR SELF EMPLOYMENT IS A CONSUMER

To save the interests of small consumers who buy goods for self-employment to earn their livelihood,
(like a taxi driver buying a car to run it as a taxi) they are considered as consumer. Note: This is
an exception to the rule that a buyer of commercial goods is not a consumer under the Act.

Example 2: a) Mr. A was running a small typing institute to earn his livelihood. He purchased a
photocopy machine-canon NP 150. It proved defective. He sued the seller who contended that
“A” is not a consumer under the Act as he purchased the photocopier for commercial use. The
Commission held that by no stretch of imagination it can be said that the photocopier would bring
large scale profits to A. He was construed as consumer under the Act.

Bhupendra Jang Bahadur Guna v. Regional Manager and Others - A person purchased a
tractor primarily to till his own land, and let out the tractor on hire during the idle time to till the
lands of others.

NCDRC held that above situation would not amount to commercial use.

“A” hires an advocate to file a suit for recovery of money from his employer. He promises to pay
fee to the advocate after settlement of the suit. “A” is a consumer of advocate, under the Act.

BENEFICIARY OF SERVICES IS ALSO A CONSUMER –

A Narasamma vs. LIC of India - The State Commission held that as the term ‘consumer’ includes
any beneficiary of service other than the person who hires the services for consideration, the widow
being the beneficiary of services is a ‘consumer’ under the Act entitled to be compensated for the
loss suffered by her due to negligence of the LIC.

Example: A takes his son B to a doctor for his treatment. Here A is hirer of services of the doctor
and B is beneficiary of these services. For the purpose of the Act, both A and B are consumers.

In Laxmiben Laxmichand Shah v. Sakerben Kanji Chandan and others, the Supreme Court
held that the tenant entering into lease agreement with the landlord cannot be considered as
consumer under Section 2(1)(d) of the Act. Where there was no provision in the lease agreement in
respect of cleaning, repairing and maintaining the building, the rent paid by tenant is not the
consideration for availing these services and therefore, no question of deficiency in service.

(31) "person" includes—

(i) an individual;
(ii) a firm whether registered or not;
(iii) a Hindu undivided family;
(iv) a co-operative society;
(v) an association of persons whether registered under the Societies Registration
Act, 1860 or not;

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(vi) any corporation, company or a body of individuals whether incorporated or

not;
(vii) any artificial juridical person, not falling within any of the preceding sub-
clauses;

(9) "consumer rights" includes,—

(i) the right to be protected against the marketing of goods, products or services which
are hazardous to life and property;
(ii) 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;
(iii) the right to be assured, wherever possible, access to a variety of goods, products
or services at competitive prices;
(iv) the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate fora;
(v) the right to seek redressal against unfair trade practice or restrictive trade practices
or unscrupulous exploitation of consumers; and
(vi) the right to consumer awareness;

General Meaning of GOODS

GOODS

means includes

Goods as per Sale Of

Goods Act, 1930
Goods Stock and Goods
manufactured Shares imported
Goods means all in India. after their in
type of movable allotment
properties, except - India.

Cash and actionable MORGAN STANLEY Vs. KARTIK DAS – S.C. held that
claims. the goods include shares only after their allotment and not
before allotment.
But includes

stock and shares, growing crops, grass, and things attached to or forming part of the land
which are agreed to be severed before sale or under the contract of sale

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(21) "goods" means every kind of movable property and includes "food" as defined
in section 3(1)(j) of the Food Safety and Standards Act, 2006;

"Food" means any substance, whether processed, partially processed or

unprocessed, which is intended for human consumption and includes primary
food, genetically modified or engineered food or food containing such
ingredients, infant food, packaged drinking water, alcoholic drink, chewing
gum, and any substance, including water used into the food during its
manufacture, preparation or treatment.

BUT DOES NOT INCLUDE any animal feed, live animals unless they are
prepared or processed for placing on the market for human consumption, plants
prior to harvesting, drugs and medicinal products, cosmetics, narcotic or
psychotropic substances:

Provided that the Central Government may declare, by notification in the

Official Gazette, any other article as food for the purposes of this Act having
regards to its use, nature, substance or quality;

(10) "defect" means any fault, imperfection or shortcoming in the quality, quantity,
potency, purity or standard which is required to be maintained by or under any
law for the time being in force or under any contract, express or implied or as
is claimed by the trader in any manner whatsoever in relation to any goods or
product and the expression "defective" shall be construed accordingly;

Examples of defects in goods:

1. A Pressure Cooker burst and caused injury to the user. It was held to be a manufacturing defect
- T.T. (P.) Ltd. v. Akhil Bhartiya Grahak Panchayat [1996] NC.

2. Where laboratory test report showed that soft drink was not fit for human consumption, it was
held defective - Narayanan Vyankatkrishnan Iyengar v. Shakti Foods [1994] (Mah.).
3. Gas Cylinder with excessive gas is defective goods - Dayanand A Avasare v. Bharat Petroleum
Corporation Ltd. (1993) (Mah.).

4. A supplied white marble to B. Later on the colour of the marble changed. HELD it comes within
the scope of ‘defect’ in goods under the Act - Chitranjan Sahu v. N.C. Jain (1993).

Morgan Stanley Mutual Fund v. Kartik Das (1994)

Supreme Court held that an application for allotment of shares cannot constitute goods. At the
stage of application there is no purchase of goods for consideration. (And the purchaser cannot be
called the hirer of services for consideration). Shares become goods only after their allotment.

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(42) "service" means service of any description which is made available to potential
users and includes, but not limited to, the provision of facilities in connection
with banking, financing, insurance, transport, processing, supply of electrical
or other energy, telecom, boarding or lodging or both, housing construction,
entertainment, amusement or the purveying of news or other information, but
does not include the rendering of any service free of charge or under a
contract of personal service;

Service

means And includes But does not include

Any service which

A list of
is made available
to potential 12 services Service Service
users. provided provided
under
FREE
1. banking, the
2. financing, OF CONTRACT
3. insurance, OF
COST
4. transport, SERVICE.
5. processing,
6. supply of
electrical or
other energy,
7. boarding,
8. lodging,
9. housing
construction,
10. entertainment,
11. amusement,
12. purveying of
news or other
information.

Above list is inclusive.

There is a difference between ‘contract of personal service’ and ‘contract for personal service’. Note
: That ‘contract of personal service’ is excluded from the definition of service, BUT ‘contract for
personal service’ is recognized as service under the Act.

Contract of service v. Contract for service

Contract OF Service Contract FOR Service

It is NOT a service in CPA, 1986. It is a service in CPA, 1986.

EXAMPLES of contract of service – Contract for service includes the services

provided on Principal to Principal basis.
1. Employer-employee relationship
EXAMPLES -
2. Principal-agent relationship
1. Client hiring services of an advocate.
3. Landlord-tenant relationship 2. Patient hiring services of a doctor.

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Note - Some other sectors/professionals/services which are not specified in the definition of service
but which have been considered by the Consumer Forums as service sectors from time to
time are listed here :-- Advocates, Airlines, Chartered Accountants, Courier, Education, Gas/LPG,
Medical, Postal services, Railways, Investment related services, and Telephone services.

Laxmiben Laxmichand Shah v. Sakerben Kanji Chandan and others - Supreme Court held
that the tenant entering into lease agreement with the landlord cannot be considered as consumer
Under Section 2(1)(d) of the Act.

Where there was no provision in the lease agreement in respect of cleaning, repairing and
maintaining the building, the rent paid by tenant cannot be considered as the consideration for
availing these services and therefore, no question of deficiency in service.

Indian Merchants Association v. VP Santha (1995)

Supreme Court observed that a CONTRACT FOR SERVICE means a contract in which one party
renders services (e.g. professional or technical services) to another party in the performance of
which first party is not subject to detailed direction and control of another party, and first
party exercises professional or technical skill and uses his own knowledge and discretion.

(11) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the

quality, nature and manner of performance which is required to be maintained
by or under any law for the time being in force or has been undertaken to be
performed by a person in pursuance of a contract or otherwise in relation to any
service and includes—

(i) any act of negligence or omission or commission by such person which causes
loss or injury to the consumer; and
(ii) deliberate withholding of relevant information by such person to the
consumer;

(5) "complainant" means—

(i) a consumer; or
(ii) any voluntary consumer association registered under any law for the time
being in force; or
(iii) the Central Government or any State Government; or
(iv) the Central Authority; or
(v) one or more consumers, where there are numerous consumers having the
same interest; or
(vi) in case of death of a consumer, his legal heir or legal representative; or
(vii) in case of a consumer being a minor, his parent or legal guardian;

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Seven categories of Complainants

A Any Voluntary CG or Central one or more in case of

Consumer Consumer consumers, death of a
consumer any
Association protection where there consumer,
registered authority are numerous his legal heir
State
under any law consumers or
Govt.
in case of a for the time having the representati-
consumer being in force. same interest. -ve.
being a
minor, his
parent or
legal Examples -
guardian Example – A passenger travelling by a
1. Upbhokta particular flight of an airlines, can file
Suraksha Parishad, complaint on behalf of all passengers, if all
2. Common Cause, the passengers have same cause of action.
3. V.O.I.C.E., [CLASS ACTION].
4. C.E.R.C.

(6) "complaint" means any allegation in writing, made by a complainant for obtaining any
relief provided by or under this Act, that—

(i) an unfair contract or unfair trade practice or a restrictive trade practice has
been adopted by any trader or service provider;

(ii) the goods bought by him or agreed to be bought by him suffer from one or more
defects;

(iii) the services hired or availed of or agreed to be hired or availed of by him suffer
from any deficiency;

(iv) a trader or a service provider, as the case may be, has charged for the
goods or for the services mentioned in the complaint, a price in excess of the
price—
(a) fixed by or under any law for the time being in force; or
(b) displayed on the goods or any package containing such goods; or
(c) displayed on the price list exhibited by him by or under any law
for the time being in force; or
(d) agreed between the parties;
(v) the goods, which are hazardous to life and safety when used, are being offered
for sale to the public—
(a) in contravention of standards relating to safety of such goods as required to be
complied with, by or under any law for the time being in force;
(b) where the trader knows that the goods so offered are unsafe to the public;

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(vi) the services which are hazardous or likely to be hazardous to life and safety of
the public when used, are being offered by a person who provides any service and
who knows it to be injurious to life and safety;
(vii) a claim for product liability action lies against the product manufacturer, product
seller or product service provider, as the case may be;

Complaint

It shall always It shall contain any 1 or more of the following

It shall
be in 7 allegations –
WRITING. contain any
1 or more of
a) Defect in the goods, or
the
There is NO
provision of b) Deficiency in the service, or relief(s)
filing the oral c) Excessive price is charged, or
complaint d) UTP/RTP, or Sought by
e) Hazardous goods are being sold, or consumer.
f) Hazardous services are being provided.
g) product liability action

This list is exhaustive.

(8) "consumer dispute" means a dispute where the person against whom a complaint
has been made, denies or disputes the allegations contained in the complaint;

(41) "restrictive trade practice" means a trade practice which tends to bring about
manipulation of price or its conditions of delivery or to affect flow of supplies
in the market relating to goods or services in such a manner as to impose on the
consumers unjustified costs or restrictions and shall include—

(i) delay beyond the period agreed to by a trader in supply of such goods or in
providing the services which has led or is likely to lead to rise in the price;
(ii) any trade practice which requires a consumer to buy, hire or avail of any
goods or, as the case may be, services as condition precedent for buying,
hiring or availing of other goods or services;

(46) "unfair contract" means a contract between a manufacturer or trader or service

provider on one hand, and a consumer on the other, having such terms which
cause significant change in the rights of such consumer, including the
following, namely:—

(i) requiring manifestly excessive security deposits to be given by a consumer

for the performance of contractual obligations; or
(ii) imposing any penalty on the consumer, for the breach of contract thereof
which is wholly disproportionate to the loss occurred due to such breach
to the other party to the contract; or

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(iii) refusing to accept early repayment of debts on payment of applicable

penalty; or
(iv) entitling a party to the contract to terminate such contract unilaterally,
without reasonable cause; or
(v) permitting or has the effect of permitting one party to assign the contract to
the detriment of the other party who is a consumer, without his consent;
or
(vi) imposing on the consumer any unreasonable charge, obligation or
condition which puts such consumer to disadvantage;

(47) "unfair trade practice" means a trade practice which, for the purpose of
promoting the sale, use or supply of any goods or for the provision of any
service, adopts any unfair method or unfair or deceptive practice including any
of the following practices, namely:—

(i) making any statement, whether orally or in writing or by visible

representation including by means of electronic record, which—

(a) falsely represents that the goods are of a particular standard, quality,
quantity, grade, composition, style or model;

(b) falsely represents that the services are of a particular standard, quality or
grade;

(c) falsely represents any re-built, second-hand, renovated, reconditioned or

old goods as new goods;

(d) represents that the goods or services have sponsorship, approval,

performance, characteristics, accessories, uses or benefits which such
goods or services do not have;

(e) represents that the seller or the supplier has a sponsorship or approval or
affiliation which such seller or supplier does not have;

(f) makes a false or misleading representation concerning the need for, or the
usefulness of, any goods or services;

(g) gives to the public any warranty or guarantee of the performance, efficacy
or length of life of a product or of any goods that is not based on an
adequate or proper test thereof:
Provided that where a defence is raised to the effect that such warranty
or guarantee is based on adequate or proper test, the burden of proof of
such defence shall lie on the person raising such defence;

(h) makes to the public a representation in a form that purports to be—

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(A) a warranty or guarantee of a product or of any goods or services; or

(B) a promise to replace, maintain or repair an article or any part thereof
or to repeat or continue a service until it has achieved a specified
result, if such purported warranty or guarantee or promise is
materially misleading or if there is no reasonable prospect that such
warranty, guarantee or promise will be carried out;

(i) materially misleads the public concerning the price at which a product or
like products or goods or services, have been or are, ordinarily sold or
provided, and, for this purpose, a representation as to price shall be
deemed to refer to the price at which the product or goods or services
has or have been sold by sellers or provided by suppliers generally in the
relevant market unless it is clearly specified to be the price at which the
product has been sold or services have been provided by the person by
whom or on whose behalf the representation is made;

(j) gives false or misleading facts disparaging the goods, services or trade of
another person.

Explanation.—For the purposes of this sub-clause, a statement that is,—

(A) expressed on an article offered or displayed for sale, or on its wrapper or

container; or
(B) expressed on anything attached to, inserted in, or accompanying, an
article offered or displayed for sale, or on anything on which the article
is mounted for display or sale; or
(C) contained in or on anything that is sold, sent, delivered, transmitted or in
any other manner whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by, and only by,
the person who had caused the statement to be so expressed, made or
contained;

(ii) permitting the publication of any advertisement, whether in any newspaper

or otherwise, including by way of electronic record, for the sale or supply at
a bargain price of goods or services that are not intended to be offered for
sale or supply at the bargain price, or for a period that is, and in quantities
that are, reasonable, having regard to the nature of the market in which the
business is carried on, the nature and size of business, and the nature of the
advertisement.

Explanation.—For the purpose of this sub-clause, "bargain price" means,—

(A) a price that is stated in any advertisement to be a bargain price, by reference

to an ordinary price or otherwise; or

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(B) a price that a person who reads, hears or sees the advertisement, would
reasonably understand to be a bargain price having regard to the prices at
which the product advertised or like products are ordinarily sold;

(iii) permitting—

(a) the offering of gifts, prizes or other items with the intention of not providing
them as offered or creating impression that something is being given or
offered free of charge when it is fully or partly covered by the amount
charged, in the transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for the purpose
of promoting, directly or indirectly, the sale, use or supply of any product
or any business interest, except such contest, lottery, game of chance or
skill as may be prescribed;

(c) withholding from the participants of any scheme offering gifts, prizes or
other items free of charge on its closure, the information about final results
of the scheme.

Explanation.—For the purpose of this sub-clause, the participants of a

scheme shall be deemed to have been informed of the final results of the
scheme where such results are within a reasonable time published,
prominently in the same newspaper in which the scheme was originally
advertised;

(iv) permitting the sale or supply of goods intended to be used, or are of a kind
likely to be used by consumers, knowing or having reason to believe that
the goods do not comply with the standards prescribed by the competent
authority relating to performance, composition, contents, design,
constructions, finishing or packaging as are necessary to prevent or reduce
the risk of injury to the person using the goods;

(v) permitting the hoarding or destruction of goods, or refusal to sell the goods
or to make them available for sale or to provide any service, if such
hoarding or destruction or refusal raises or tends to raise or is intended to
raise, the cost of those or other similar goods or services;

(vi) manufacturing of spurious goods or offering such goods for sale or

adopting deceptive practices in the provision of services;

(vii) not issuing bill or cash memo or receipt for the goods sold or services
rendered in such manner as may be prescribed;

(viii) refusing, after selling goods or rendering services, to take back or

withdraw defective goods or to withdraw or discontinue deficient services
and to refund the consideration thereof, if paid, within the period

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stipulated in the bill or cash memo or receipt or in the absence of such

stipulation, within a period of thirty days;

(ix) disclosing to other person any personal information given in confidence

by the consumer unless such disclosure is made in accordance with the
provisions of any law for the time being in force.

Examples of false advertisements -

1. An ayurvedic doctor gives allopathic medicines to his patients. It was held to be UTP.
2. A clinic claims that it can advise a dietary pattern for pregnant females which can decide the
gender of her child. It was held to be UTP.
3. A clinic claims that, it provides a unique oil to grow the hair on the bald heads; and
subsequently it was found to be false claim. It was held to be UTP.
4. A clinic claims that, it provides medicine to cure the “white-patches” problem of the skin and
its 100% clients have benefitted in the past, but actually only 60% clients have benefitted
partly or fully. It was held that the claims made in the advertisement are false and it was
held UTP.

Q - Surrogate Advertisement is UTP or not? ANS. – Yes.

Surrogate Advertisement means a trade practice of advertising a particular

product and selling some different product with the help of such advertisement.
[Representative Advertisement of Aristocrat Apple Juice.]

In Re: Godrej Soaps Ltd.

Company was manufacturing the soap by the brand name - “Ganga”; and the
company issued two advertisements - 1. Ganga ki dhar, apke dwar, 2. Ganga se
snan karlo. The fact was that company was not using the ganga water in the
production of the soap.

It was held that - “though the advertisement was true in the literal sense, but still
it was deceptive by nature, and therefore it is UTP.”

(43) "spurious goods" means such goods which are falsely claimed to be genuine;

(28) "misleading advertisement" in relation to any product or service, means an

advertisement, which—
(i) falsely describes such product or service; or
(ii) gives a false guarantee to, or is likely to mislead the consumers as to the
nature, substance, quantity or quality of such product or service; or
(iii) conveys an express or implied representation which, if made by the
manufacturer or seller or service provider thereof, would constitute an
unfair trade practice; or
(iv) deliberately conceals important information;

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(33) "product" means any article or goods or substance or raw material or any
extended cycle of such product, which may be in gaseous, liquid, or solid state
possessing intrinsic value which is capable of delivery either as wholly
assembled or as a component part and is produced for introduction to trade or
commerce, but does not include human tissues, blood, blood products and
organs;

(34) "product liability" means the responsibility of a product manufacturer or product

seller, of any product or service, to compensate for any harm caused to a
consumer by such defective product manufactured or sold or by deficiency in
services relating thereto;

(35) "product liability action" means a complaint filed by a person before a District
Commission or State Commission or National Commission, as the case may be,
for claiming compensation for the harm caused to him;

(36) "product manufacturer" means a person who—

(i) makes any product or parts thereof; or
(ii) assembles parts thereof made by others; or
(iii) puts or causes to be put his own mark on any products made by any other
person; or
(iv) makes a product and sells, distributes, leases, installs, prepares, packages,
labels, markets, repairs, maintains such product or is otherwise involved in
placing such product for commercial purpose; or
(v) designs, produces, fabricates, constructs or re-manufactures any product
before its sale; or
(vi) being a product seller of a product, is also a manufacturer of such product;

(37) "product seller", in relation to a product, means a person who, in the course of
business, imports, sells, distributes, leases, installs, prepares, packages, labels,
markets, repairs, maintains, or otherwise is involved in placing such product for
commercial purpose and includes—
(i) a manufacturer who is also a product seller; or
(ii) a service provider, but does not include—
(a) a seller of immovable property, unless such person is engaged in the sale of
constructed house or in the construction of homes or flats;
(b) a provider of professional services in any transaction in which, the sale or
use of a product is only incidental thereto, but furnishing of opinion, skill
or services being the essence of such transaction;
(c) a person who—
(I) acts only in a financial capacity with respect to the sale of the product;
(II) is not a manufacturer, wholesaler, distributor, retailer, direct seller or an
electronic service provider;

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(III) leases a product, without having a reasonable opportunity to inspect and

discover defects in the product, under a lease arrangement in which the
selection, possession, maintenance, and operation of the product are
controlled by a person other than the lessor;

(38) "product service provider", in relation to a product, means a person who

provides any service in respect of such product;

(22) "harm", in relation to a product liability, includes—

(i) damage to any property, other than the product itself;

(ii) personal injury, illness or death;
(iii) mental agony or emotional distress attendant to personal injury or illness
or damage to property; or
(iv) any loss of consortium or services or other loss resulting from a harm
referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii), but shall
not include any harm caused to a product itself or any damage to the
property on account of breach of warranty conditions or any commercial or
economic loss, including any direct, incidental or consequential loss
relating thereto;

(23) "injury" means any harm whatever illegally caused to any person, in body, mind
or property;

Other Definitions – Section 2

Section 2. In this Act, unless the context otherwise requires,—

(1) "advertisement" means any audio or visual publicity, representation, endorsement

or pronouncement made by means of light, sound, smoke, gas, print, electronic
media, internet or website and includes any notice, circular, label, wrapper,
invoice or such other documents;

(2) "appropriate laboratory" means a laboratory or an organisation—

(i) recognised by the Central Government; or
(ii) recognised by a State Government, subject to such guidelines as may be
issued by the Central Government in this behalf; or
(iii) established by or under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a State
Government for carrying out analysis or test of any goods with a view to
determining whether such goods suffer from any defect;

(3) "branch office" means—

(i) any office or place of work described as a branch by the establishment; or
(ii) any establishment carrying on either the same or substantially the same
activity carried on by the head office of the establishment;

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(4) "Central Authority" means the Central Consumer Protection Authority

established under section 10;

(12) "design", in relation to a product, means the intended or known physical and
material characteristics of such product and includes any intended or known
formulation or content of such product and the usual result of the intended
manufacturing or other process used to produce such product;

(13) "direct selling" means marketing, distribution and sale of goods or provision of
services through a network of sellers, other than through a permanent retail
location;

(14) "Director-General" means the Director-General appointed under sub-section (2)

of section 15;

(15) "District Commission" means a District Consumer Disputes Redressal

Commission established under sub-section (1) of section 28;

(16) "e-commerce" means buying or selling of goods or services including digital

products over digital or electronic network;

(17) "electronic service provider" means a person who provides technologies or

processes to enable a product seller to engage in advertising or selling goods or
services to a consumer and includes any online market place or online auction
sites;

(18) "endorsement", in relation to an advertisement, means—

(i) any message, verbal statement, demonstration; or

(ii) depiction of the name, signature, likeness or other identifiable personal
characteristics of an individual; or
(iii) depiction of the name or seal of any institution or organisation, which makes
the consumer to believe that it reflects the opinion, finding or experience of
the person making such endorsement;

(19) "establishment" includes an advertising agency, commission agent,

manufacturing, trading or any other commercial agency which carries on any
business, trade or profession or any work in connection with or incidental or
ancillary to any commercial activity, trade or profession, or such other class or
classes of persons including public utility entities in the manner as may be
prescribed;

(20) "express warranty" means any material statement, affirmation of fact, promise
or description relating to a product or service warranting that it conforms to
such material statement, affirmation, promise or description and includes any

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sample or model of a product warranting that the whole of such product

conforms to such sample or model;

(25) "mediation" means the process by which a mediator mediates the consumer
disputes;

(26) "mediator" means a mediator referred to in section 75;

(27) "member" includes the President and a member of the National Commission or
a State Commission or a District Commission, as the case may be;

(29) "National Commission" means the National Consumer Disputes Redressal

Commission established under sub-section (1) of section 53;

(30) "notification" means a notification published in the Official Gazette and the term
"notify" shall be construed accordingly;
(32) "prescribed" means prescribed by rules made by the Central Government, or, as
the case may be, the State Government;

(24) "manufacturer" means a person who—

(i) makes any goods or parts thereof; or

(ii) assembles any goods or parts thereof made by others; or
(iii) puts or causes to be put his own mark on any goods made by any other
person;

(39) "regulations" means the regulations made by the National Commission, or as

the case may be, the Central Authority;

(40) "Regulator" means a body or any authority established under any other law for
the time being in force;

(44) "State Commission" means a State Consumer Disputes Redressal Commission

established under sub-section (1) of section 42;

(45) "trader", in relation to any goods, means a person who sells or distributes any
goods for sale and includes the manufacturer thereof, and where such goods are
sold or distributed in package form, includes the packer thereof;

---*---

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CONSUMER PROTECTION COUNCILS

Sec. 3. (1) The Central Government shall, by notification, establish with effect from
such date as it may specify in that notification, the Central Consumer
Protection Council to be known as the Central Council.
(2) The Central Council shall be an advisory council and consist of the following
members, namely:—
(a) the Minister-in-charge of the Department of Consumer Affairs in the
Central Government, who shall be the Chairperson; and
(b) such number of other official or non-official members representing such
interests as may be prescribed.

Sec. 4. (1) The Central Council shall meet as and when necessary, but at least one
meeting of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the Chairperson
may think fit and shall observe such procedure in regard to the transaction of its
business as may be prescribed.

Sec. 5 - The objects of the Central Council shall be to render advice on promotion and
protection of the consumers' rights under this Act.

Sec. 6 (1) Every State Government shall, by notification, establish with effect from such
date as it may specify in such notification, a State Consumer Protection Council
for such State to be known as the State Council.
(2) The State Council shall be an advisory council and consist of the following
members, namely:—
(a) the Minister-in-charge of Consumer Affairs in the State Government who
shall be the Chairperson;
(b) such number of other official or non-official members representing such
interests as may be prescribed;
(c) such number of other official or non-official members, not exceeding ten, as
may be nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The State Council shall meet at such time and place as the Chairperson may think
fit and shall observe such procedure in regard to the transaction of its business,
as may be prescribed.

Sec. 7 - The objects of every State Council shall be to render advice on promotion and
protection of consumer rights under this Act within the State.

Sec. 8 - (1) The State Government shall, by notification, establish for every District with
effect from such date as it may specify in such notification, a District Consumer
Protection Council to be known as the District Council.

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(2) The District Council shall be an advisory council and consist of the following
members, namely:—

(a) the Collector of the district (by whatever name called), who shall be the
Chairperson; and
(b) such number of other official and non-official members representing such
interests as may be prescribed.
(3) The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district as
the Chairperson may think fit and shall observe such procedure in regard to
the transaction of its business as may be prescribed.

Sec 9 - The objects of every District Council shall be to render advice on promotion and
protection of consumer rights under this Act within the district.

CENTRAL CONSUMER PROTECTION AUTHORITY – Sec. 10

(1) The Central Government shall, by notification, establish with effect from such date
as it may specify in that notification, a Central Consumer Protection Authority to
be known as the Central Authority to regulate matters relating to violation of
rights of consumers, unfair trade practices and false or misleading
advertisements which are prejudicial to the interests of public and consumers and
to promote, protect and enforce the rights of consumers as a class.

(2) The Central Authority shall consist of a Chief Commissioner and such number of
other Commissioners as may be prescribed, to be appointed by the Central
Government to exercise the powers and discharge the functions under this Act.

(3) The headquarters of the Central Authority shall be at such place in the National
Capital Region of Delhi, and it shall have regional and other offices in any other
place in India as the Central Government may decide.

Qualifications, method of recruitment, etc., of Chief Commissioner and

Commissioners. [Sec. 11]

The Central Government may, by notification, make rules to provide for the
qualifications for appointment, method of recruitment, procedure for appointment, term
of office, salaries and allowances, resignation, removal and other terms and conditions
of the service of the Chief Commissioner and Commissioners of the Central Authority.

Vacancy, etc., not to invalidate proceedings of Central Authority. (Sec. 12)

No act or proceeding of the Central Authority shall be invalid merely by reason of—

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(a) any vacancy in, or any defect in the constitution of, the Central Authority; or
(b) any defect in the appointment of a person acting as the Chief Commissioner or as a
Commissioner; or
(c) any irregularity in the procedure of the Central Authority not affecting the merits of
the case.

Appointment of officers, experts, professionals and other employees of Central

Authority. (Sec. 13)

(1) The Central Government shall provide the Central Authority such number of
officers and other employees as it considers necessary for the efficient performance
of its functions under this Act.

(2) The salaries and allowances payable to, and the other terms and conditions of service
of, the officers and other employees of the Central Authority appointed under this
Act shall be such as may be prescribed.

(3) The Central Authority may engage, in accordance with the procedure specified by
regulations, such number of experts and professionals of integrity and ability, who
have special knowledge and experience in the areas of consumer rights and welfare,
consumer policy, law, medicine, food safety, health, engineering, product safety,
commerce, economics, public affairs or administration, as it deems necessary to
assist it in the discharge of its functions under this Act.

Procedure of Central Authority. (Sec. 14)

(1) The Central Authority shall regulate the procedure for transaction of its business and
allocation of its business amongst the Chief Commissioner and Commissioners as
may be specified by regulations.

(2) The Chief Commissioner shall have the powers of general superintendence,
direction and control in respect of all administrative matters of the Central
Authority:

Provided that the Chief Commissioner may delegate such of his powers relating to
administrative matters of the Central Authority, as he may think fit, to any
Commissioner (including Commissioner of a regional office) or any other officer
of the Central Authority.

Investigation Wing (Sec. 15)

(1) The Central Authority shall have an Investigation Wing headed by a Director-
General for the purpose of conducting inquiry or investigation under this Act as
may be directed by the Central Authority.

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(2) The Central Government may appoint a Director-General and such number of
Additional Director-General, Director, Joint Director, Deputy Director and
Assistant Director, from amongst persons who have experience in investigation and
possess such qualifications, in such manner, as may be prescribed.

(3) Every Additional Director-General, Director, Joint Director, Deputy Director and
Assistant Director shall exercise his powers, and discharge his functions, subject to
the general control, supervision and direction of the Director-General.

(4) The Director-General may delegate all or any of his powers to the Additional
Director-General or Director, Joint Director or Deputy Director or Assistant
Director, as the case may be, while conducting inquiries or investigations under this
Act.

(5) The inquiries or the investigations made by the Director- General shall be
submitted to the Central Authority in such form, in such manner and within such
time, as may be specified by regulations.

Power of District Collector. (Sec. 16)

The District Collector (by whatever name called) may, on a complaint or on a reference
made to him by the Central Authority or the Commissioner of a regional office, inquire
into or investigate complaints regarding violation of rights of consumers as a class,
on matters relating to violations of consumer rights, unfair trade practices and false or
misleading advertisements, within his jurisdiction and submit his report to the
Central Authority or to the Commissioner of a regional office, as the case may be.

Complaints to authorities. (Sec. 17)

A complaint relating to violation of consumer rights or unfair trade practices or false or

misleading advertisements which are prejudicial to the interests of consumers as a class,
may be forwarded either in writing or in electronic mode, to any one of the
authorities, namely, the District Collector or the Commissioner of regional office or the
Central Authority.

Powers and functions of Central Authority. (Sec. 18)

(1) The Central Authority shall—

(a) protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in
unfair trade practices;
(c) ensure that no false or misleading advertisement is made of any goods or
services which contravenes the provisions of this Act or the rules or regulations
made thereunder;

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(d) ensure that no person takes part in the publication of any advertisement which
is false or misleading.

(2) Without prejudice to the generality of the provisions contained in sub-section

(1), the Central Authority may, for any of the purposes aforesaid,—

(a) inquire or cause an inquiry or investigation to be made into violations of

consumer rights or unfair trade practices, either suo motu or on a complaint
received or on the directions from the Central Government;
(b) file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State
Commission or the National Commission, as the case may be, in respect of any
allegation of violation of consumer rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of,
consumer rights, including safeguards provided for the protection of consumers
under any other law for the time being in force and recommend appropriate
remedial measures for their effective implementation;
(e) recommend adoption of international covenants and best international practices
on consumer rights to ensure effective enforcement of consumer rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working in
the field of consumer rights to co-operate and work with consumer protection
agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as
may be necessary, to prevent unfair trade practices and to protect consumers'
interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or
unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments
on consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect
consumers' interest.

Power of CCPA to refer matter for investigation or to other Regulator. (Sec. 19)

(1) The Central Authority may, after receiving any information or complaint or
directions from the Central Government or of its own motion, conduct or cause to
be CONDUCTED A PRELIMINARY INQUIRY as to whether there exists a
PRIMA FACIE CASE of violation of consumer rights or any unfair trade practice
or any false or misleading advertisement, by any person, which is prejudicial to
the public interest or to the interests of consumers and if it is satisfied that there
exists a prima facie case, it shall cause investigation to be made by the Director-
General or by the District Collector.

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(2) Where, after preliminary inquiry, the Central Authority is of the opinion that the
matter is to be dealt with by a Regulator established under any other law for the
time being in force, it may refer such matter to the concerned Regulator along with
its report.

(3) For the purposes of investigation under sub-section (1), the Central Authority, the
Director General or the District Collector may call upon a person referred to in sub-
section (1) and also direct him to produce any document or record in his possession.

Power of Central Authority to recall goods, etc. (Sec. 20)

Where the Central Authority is satisfied on the basis of investigation that there is
sufficient evidence to show violation of consumer rights or unfair trade practice by a
person, it may pass such order as may be necessary, including—

(a) recalling of goods or withdrawal of services which are dangerous, hazardous

or unsafe;

(b) reimbursement of the prices of goods or services so recalled to purchasers of

such goods or services; and

(c) discontinuation of practices which are unfair and prejudicial to consumers'

interest:

Provided that the Central Authority shall give the person an opportunity of being heard
before passing an order under this section.

Power of Central Authority to issue directions and penalties against false or is

leading advertisements. (Sec. 21)

(1) Where the Central Authority is satisfied after investigation that any advertisement
is false or misleading and is prejudicial to the interest of any consumer or is in
contravention of consumer rights, it may, by order, issue directions to the
concerned trader or manufacturer or endorser or advertiser or publisher, as the case
may be, to discontinue such advertisement or to modify the same in such manner
and within such time as may be specified in that order.

(2) Notwithstanding the order passed under sub-section (1), if the Central Authority is
of the opinion that it is necessary to impose a penalty in respect of such false or
misleading advertisement, by A MANUFACTURER OR AN ENDORSER, it may,
by order, impose on manufacturer or endorser a penalty which may extend to ten
lakh rupees:

Provided that the Central Authority may, for every subsequent contravention by a
manufacturer or endorser, impose a penalty, which may extend to fifty lakh
rupees.

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(3) Notwithstanding any order under sub-sections (1) and (2), where the Central
Authority deems it necessary, it may, by order, PROHIBIT the endorser of a false
or misleading advertisement from making endorsement of any product or
service for a period which may extend to one year:

Provided that the Central Authority may, for every subsequent contravention,
prohibit such endorser from making endorsement in respect of any product or
service for a period which may extend to three years.

(4) Where the Central Authority is satisfied after investigation that any person is found
to publish, or is a party to the publication of, a misleading advertisement, it may
impose on such person a penalty which may extend to ten lakh rupees.

(5) No endorser shall be liable to a penalty under sub-sections (2) and (3) if he has
exercised DUE DILIGENCE TO VERIFY the veracity of the claims made in the
advertisement regarding the product or service being endorsed by him.

(6) No person shall be liable to such penalty if he proves that he had published or
arranged for the publication of such advertisement in the ordinary course of his
business:

Provided that no such defence shall be available to such person if he had previous
knowledge of the order passed by the Central Authority for withdrawal or
modification of such advertisement.

(7) While determining the penalty under this section, regard shall be had to the
following, namely:—

(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by such
offence; and
(d) the gross revenue from the sales effected by virtue of such offence. (e) The
Central Authority shall give the person an opportunity of being heard before an
order under this section is passed.

Search and seizure (Sec. 22)

(1) For the purpose of conducting an investigation after preliminary inquiry under
sub-section (1) of section 19, the Director-General or any other officer
authorised by him in this behalf, or the District Collector, as the case may be,
may, if he has any reason to believe that any person has violated any consumer
rights or committed unfair trade practice or causes any false or misleading
advertisement to be made, shall,—

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(a) enter at any reasonable time into any such premises and search for any
document or record or article or any other form of evidence and seize such
document, record, article or such evidence;
(b) make a note or an inventory of such record or article; or
(c) require any person to produce any record, register or other document or
article.

(2) The provisions of the Code of Criminal Procedure, 1973, relating to search and
seizure shall apply, as far as may be, for search and seizure under this Act.

(3) Every document, record or article seized under clause (a) of sub-section (1) or
produced under clause (c) of that sub-section shall be returned to the person, from
whom they were seized or who produced the same, within a period of 20 days
of the date of such seizure or production, as the case may be, after copies thereof or
extracts therefrom certified by that person, in such manner as may be prescribed,
have been taken.

(4) Where any article seized under sub-section (1) are subject to speedy or natural decay,
the Director-General or such other officer may dispose of the article in such manner
as may be prescribed.

(5) In the case of articles other than the articles referred to in sub-section (4), provisions
contained in clause (c) of sub-section (2) of section 38 shall mutatis mutandis apply
in relation to analysis or tests.

Designation of any statutory authority or body to function as CCPA (Sec. 23)

The Central Government may, if it considers necessary, by notification, designate any

statutory authority or body to exercise the powers and perform the functions of the
Central Authority referred to in section 10.

Appeal. (Sec. 24)

A person aggrieved by any order passed by the Central Authority under sections 20 and
21 may file an appeal to the National Commission within a period of thirty days from
the date of receipt of such order.

Grants by Central Government. (Sec. 25)

The Central Government may, after due appropriation made by Parliament by law in
this behalf, make to the Central Authority grants of such sums of money as that
Government may think fit for being utilised for the purposes of this Act.

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Accounts and audit. (Sec. 26)

(1) The Central Authority shall maintain proper accounts and other relevant records
and prepare an annual statement of accounts in such form and manner as may be
prescribed in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Central Authority shall be audited by the Comptroller and
Auditor-General of India at such intervals as may be specified by him and any
expenditure incurred in connection with such audit shall be payable by the Central
Authority to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India or any other person appointed by
him in connection with the audit of the accounts of the Central Authority shall have
the same rights, privileges and authority in connection with such audit as the
Comptroller and Auditor-General of India generally has, in connection with the
audit of the Government accounts and, in particular, shall have the right to demand
the production of books, accounts, connected vouchers and other documents and
papers and to inspect any of the offices of the Central Authority.

(4) The accounts of the Central Authority as certified by the Comptroller and Auditor-
General of India or any other person appointed by him in this behalf together with
the audit report thereon shall be forwarded annually to the Central Government
which shall cause the same to be laid before each House of Parliament.

Furnishing of annual reports, etc. (Sec. 27)

(1) The Central Authority shall prepare once in every year, in such form, manner and
at such time as may be prescribed, an annual report giving full account of its
activities during the previous year and such other reports and returns, as may be
directed, and copies of such report and returns shall be forwarded to the Central
Government.

(2) A copy of the annual report received under sub-section (1) shall be laid, as soon as
may be after it is received, before each House of Parliament.

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Establishment of District Consumer Disputes Redressal Commission.

CONSUMER DISPUTES REDRESSAL COMMISSION

Establishment of District Consumer Disputes Redressal Commission (Sec. 28)

(1) The State Government shall, by notification, establish a District Consumer Disputes
Redressal Commission, to be known as the District Commission, in each district of
the State:

Provided that the State Government may, if it deems fit, establish more than one
District Commission in a district.

(2) Each District Commission shall consist of—

(a) a President; and

(b) not less than two and not more than such number of members as may be
prescribed, in consultation with the Central Government.

Qualifications, etc., of President and members of District Commission. (Sec. 29)

The Central Government may, by notification, make rules to provide for the
qualifications, method of recruitment, procedure for appointment, term of office,
resignation and removal of the President and members of the District Commission.

Jurisdiction of District Commission. (Sec. 34)

(1) Subject to the other provisions of this Act, the District Commission shall have
jurisdiction to entertain complaints where the value of the goods or services paid as
consideration does not exceed 1 crore rupees:

Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit.

(2) A complaint shall be instituted in a District Commission within the local limits of
whose jurisdiction,—

(a) the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries
on business or has a branch office or personally works for gain; or
(b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office, or personally works for gain, provided that in
such case the permission of the District Commission is given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.

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(3) The District Commission shall ordinarily function in the district headquarters and
may perform its functions at such other place in the district, as the State Government
may, in consultation with the State Commission, notify in the Official Gazette from
time to time.

Manner in which complaint shall be made. (Sec. 35)

(1) A complaint, in relation to any goods sold or delivered or agreed to be sold or

delivered or any service provided or agreed to be provided, may be filed with a
District Commission by —

(a) the consumer,—

(i) to whom such goods are sold or delivered or agreed to be sold or delivered
or such service is provided or agreed to be provided; or
(ii) who alleges unfair trade practice in respect of such goods or service;
(b) any recognised consumer association, whether the consumer to whom such
goods are sold or delivered or agreed to be sold or delivered or such service
is provided or agreed to be provided, or who alleges unfair trade practice in
respect of such goods or service, is a member of such association or not;
(c) one or more consumers, where there are numerous consumers having the
same interest, with the permission of the District Commission, on behalf of,
or for the benefit of, all consumers so interested; or
(d) the Central Government, the Central Authority or the State Government, as
the case may be:

Provided that the complaint under this sub-section may be filed

electronically in such manner as may be prescribed.

Explanation.—For the purposes of this sub-section, "recognised consumer

association" means any voluntary consumer association registered under any
law for the time being in force.

(2) Every complaint filed under sub-section (1) shall be accompanied with such fee and
payable in such manner, including electronic form, as may be prescribed.

Proceedings before District Commission. (Sec. 36)

(1) Every proceeding before the District Commission shall be conducted by the
President of that Commission and at least one member thereof, sitting together:

Provided that where a member, for any reason, is unable to conduct a proceeding
till it is completed, the President and the other member shall continue the
proceeding from the stage at which it was last heard by the previous member.

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(2) On receipt of a complaint made under section 35, the District Commission may, by
order, admit the complaint for being proceeded with or reject the same:

Provided that a complaint shall not be rejected under this section unless an
opportunity of being heard has been given to the complainant:

Provided further that the admissibility of the complaint shall ordinarily be decided
within 21 days from the date on which the complaint was filed.

(3) Where the District Commission does not decide the issue of admissibility of the
complaint within the period so specified, it shall be deemed to have been admitted.

Reference to mediation. (Sec. 37)

(1) At the first hearing of the complaint after its admission, or at any later stage, if it
appears to the District Commission that there exist ELEMENTS OF A
SETTLEMENT which may be acceptable to the parties, except in such cases as
may be prescribed, it may direct the parties to give in writing, within 5 days,
consent to have their dispute settled by mediation in accordance with the
provisions of Chapter V.

(2) Where the parties agree for settlement by mediation and give their consent in
writing, the District Commission shall, within next 5 days of receipt of such
consent, refer the matter for mediation, and in such case, the provisions of Chapter
V, relating to mediation, shall apply.

Procedure on admission of complaint. (Sec. 38)

(1) The District Commission shall, on admission of a complaint, or in respect of cases

referred for mediation on failure of settlement by mediation, proceed with such
complaint.

(2) Where the complaint relates to ANY GOODS, the District Commission shall,—

(a) refer a copy of the admitted complaint, within 21 days from the date of its
admission to the opposite party mentioned in the complaint directing him to
give his version of the case within a period of 30 days or such extended
period not exceeding 15 days as may be granted by it;
(b) if the opposite party on receipt of a complaint referred to him under clause (a)
denies or disputes the allegations contained in the complaint, or omits or fails
to take any action to represent his case within the time given by the District
Commission, proceed to settle the consumer dispute in the manner specified
in clauses (c) to (g);
(c) if the complaint alleges a defect in the goods which cannot be determined
without PROPER ANALYSIS OR TEST of the goods, obtain a sample of the
goods from the complainant, seal it and authenticate it in the manner as may

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be prescribed and refer the sample so sealed to the appropriate laboratory

along with a direction that such laboratory to make an analysis or test,
whichever may be necessary, with a view to finding out whether such goods
suffer from any defect alleged in the complaint or from any other defect and to
report its findings thereon to the District Commission within a period of 45
days of the receipt of the reference or within such extended period as may be
granted by it;
(d) before any sample of the goods is referred to any appropriate laboratory under
clause (c), require the complainant to deposit to the credit of the
Commission such fees as may be specified, for payment to the appropriate
laboratory for carrying out the necessary analysis or test in relation to the goods
in question;
(e) remit the amount deposited to its credit under clause (d) to the appropriate
laboratory to enable it to carry out the analysis or test mentioned in clause
(c) and on receipt of the report from the appropriate laboratory, it shall forward
a copy of the report along with such remarks as it may feel appropriate to the
opposite party;
(f) if any of the parties disputes the correctness of the findings of the appropriate
laboratory, or disputes the correctness of the methods of analysis or test adopted
by the appropriate laboratory, require the opposite party or the complainant to
submit in writing his objections with regard to the report made by the
appropriate laboratory;
(g) give a reasonable opportunity to the complainant as well as the opposite party
of being heard as to the correctness or otherwise of the report made by the
appropriate laboratory and also as to the objection made in relation thereto
under clause (f) and issue an appropriate order under section 39.

(3) The District Commission shall, if the complaint admitted by it under sub-section (2)
of section 36 relates to goods in respect of which the procedure specified in sub-
section (2) cannot be followed, or if the complaint relates to any services,—

(a) refer a copy of such complaint to the opposite party directing him to give his
version of the case within a period of 30 days or such extended period not
exceeding 15 days as may be granted by the District Commission;

(b) if the opposite party, on receipt of a copy of the complaint, referred to him under
clause (a) denies or disputes the allegations contained in the complaint, or omits
or fails to take any action to represent his case within the time given by the
District Commission, it shall proceed to settle the consumer dispute—

(i) on the basis of evidence brought to its notice by the complainant and the
opposite party, if the opposite party denies or disputes the allegations
contained in the complaint, or
(ii) ex-parte on the basis of evidence brought to its notice by the complainant,
where the opposite party omits or fails to take any action to represent his
case within the time given by the Commission;

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(c) decide the complaint on merits if the complainant fails to appear on the date of
hearing.

(4) For the purposes of sub-sections (2) and (3), the District Commission may, by order,
require an electronic service provider to provide such information, documents or
records, as may be specified in that order.

(5) No proceedings complying with the procedure laid down in sub-sections (1) and (2)
shall be called in question in any court on the ground that the principles of natural
justice have not been complied with.

(6) Every complaint shall be heard by the District Commission on the basis of affidavit
and documentary evidence placed on record:

Provided that where an application is made for hearing or for examination of parties
in person or through video conferencing, the District Commission may, on
sufficient cause being shown, and after recording its reasons in writing, allow the
same.

(7) Every complaint shall be disposed of as expeditiously as possible and endeavour

shall be made to decide the complaint within a period of three months from the
date of receipt of notice by opposite party where the complaint does not require
analysis or testing of commodities, and within five months if it requires analysis
or testing of commodities:

Provided that no adjournment shall ordinarily be granted by the District

Commission unless sufficient cause is shown and the reasons for grant of
adjournment have been recorded in writing by the Commission:

Provided further that the District Commission shall make such orders as to the costs
occasioned by the adjournment as may be specified by regulations:

Provided also that in the event of a complaint being disposed of after the period so
specified, the District Commission shall record in writing, the reasons for the same
at the time of disposing of the said complaint.

(8) Where during the pendency of any proceeding before the District Commission, if it
appears necessary, it may pass such interim order as is just and proper in the facts
and circumstances of the case.

(9) For the purposes of this section, the District Commission shall have the same
powers as are vested in a civil court under the Code of Civil Procedure, 1908 while
trying a suit in respect of the following matters, namely:—

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(a) the summoning and enforcing the attendance of any defendant or witness and
examining the witness on oath;
(b) requiring the discovery and production of any document or other material object
as evidence;
(c) receiving of evidence on affidavits;
(d) the requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(e) issuing of commissions for the examination of any witness, or document; And
(f) any other matter which may be prescribed by the Central Government.

(10) Every proceeding before the District Commission shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228 of the Indian Penal Code,
and the District Commission shall be deemed to be a criminal court for the purposes
of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

(11) Where the complainant is a consumer referred to in sub-clause (v) of clause (5) of
section 2, the provisions of Order I Rule 8 of the First Schedule to the Code of Civil
Procedure, 1908 shall apply subject to the modification that every reference therein
to a suit or decree shall be construed as a reference to a complaint or the order of
the District Commission thereon.

(12) In the event of death of a complainant who is a consumer or of the opposite party
against whom the complaint has been filed, the provisions of Order XXII of the
First Schedule to the Code of Civil Procedure, 1908 shall apply subject to the
modification that every reference therein to the plaintiff and the defendant shall be
construed as reference to a complainant or the opposite party, as the case may be.

Findings of District Commission. (Sec. 39)

(1) Where the District Commission is satisfied that the goods complained against
suffer from any of the defects specified in the complaint or that any of the
allegations contained in the complaint about the services or any unfair trade
practices, or claims for compensation under product liability are proved, it shall
issue an order to the opposite party directing him to do one or more of the following,
namely:—

(a) to remove the defect pointed out by the appropriate laboratory from the goods
in question;
(b) to replace the goods with new goods of similar description which shall be free
from any defect;
(c) to return to the complainant the price, or, as the case may be, the charges paid
by the complainant along with such interest on such price or charges as may be
decided;
(d) to pay such amount as may be awarded by it as compensation to the consumer
for any loss or injury suffered by the consumer due to the negligence of the
opposite party:

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Provided that the District Commission shall have the power to grant punitive
damages in such circumstances as it deems fit;
(e) to pay such amount as may be awarded by it as compensation in a product
liability action under Chapter VI;
(f) to remove the defects in goods or deficiencies in the services in question;
(g) to discontinue the unfair trade practice or restrictive trade practice and not to
repeat them;
(h) not to offer the hazardous or unsafe goods for sale;
(i) to withdraw the hazardous goods from being offered for sale;
(j) to cease manufacture of hazardous goods and to desist from offering services
which are hazardous in nature;
(k) to pay such sum as may be determined by it, if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not
identifiable conveniently:
Provided that the minimum amount of sum so payable shall not be less than
25% of the value of such defective goods sold or service provided, as the case
may be, to such consumers;
(l) to issue corrective advertisement to neutralise the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such
misleading advertisement;
(m) to provide for adequate costs to parties; and
(n) to cease and desist from issuing any misleading advertisement.

(2) Any amount obtained under sub-section (1) shall be credited to such fund and
utilised in such manner as may be prescribed.

(3) In any proceeding conducted by the President and a member and if they differ on
any point or points, they shall state the point or points on which they differ and refer
the same to another member for hearing on such point or points and the opinion of
the majority shall be the order of the District Commission:

Provided that the other member shall give his opinion on such point or points
referred to him within a period of one month from the date of such reference.
(4) Every order made by the District Commission under sub-section (1) shall be
signed by the President and the member who conducted the proceeding:

Provided that where the order is made as per majority opinion under sub-section
(3), such order shall also be signed by the other member.

Review by District Commission in certain cases. (Sec. 40)

The District Commission shall have the power to review any of the order passed by it
if there is an error apparent on the face of the record, either of its own motion or on an
application made by any of the parties within thirty days of such order.

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Appeal against order of District Commission. (Sec. 41)

Any person aggrieved by an order made by the District Commission may prefer an
appeal against such order to the State Commission on the grounds of facts or law within
a period of 45 days from the date of the order, in such form and manner, as may be
prescribed:

Provided that the State Commission may entertain an appeal after the expiry of the said
period of 45 days, if it is satisfied that there was sufficient cause for not filing it within
that period:

Provided further that no appeal by a person, who is required to pay any amount in terms
of an order of the District Commission, shall be entertained by the State Commission
unless the appellant has deposited 50% of that amount in the manner as may be
prescribed:

Provided also that no appeal shall lie from any order passed under section 81(1) by the
District Commission pursuant to a settlement by mediation u/s 80.

Establishment of State Consumer Disputes Redressal Commission

42. (1) The State Government shall, by notification, establish a State Consumer
Disputes Redressal Commission, to be known as the State Commission, in the
State.
(2) The State Commission shall ordinarily function at the State capital and perform
its functions at such other places as the State Government may in consultation
with the State Commission notify in the Official Gazette:

Provided that the State Government may, by notification, establish regional

benches of the State Commission, at such places, as it deems fit.

(3) Each State Commission shall consist of—

(a) a President; and

(b) not less than four or not more than such number of members as may be
prescribed in consultation with the Central Government.

Qualifications, etc., of President and members of State Commission (Sec. 43)

The Central Government may, by notification, make rules to provide for the
qualification for appointment, method of recruitment, procedure of appointment, term
of office, resignation and removal of the President and members of the State
Commission.

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Jurisdiction of State Commission.

47. (1) Subject to the other provisions of this Act, the State Commission shall have
jurisdiction—

(a) to entertain—
(i) complaints where the value of the goods or services paid as
consideration, exceeds rupees one crore, but does not exceed rupees
ten crore:
Provided that where the Central Government deems it necessary so to
do, it may prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or
services paid as consideration does not exceed ten crore rupees;
(iii) appeals against the orders of any District Commission within the State;
and
(b) to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any District Commission
within the State, where it appears to the State Commission that such District
Commission has exercised a jurisdiction not vested in it by law, or has
failed to exercise a jurisdiction so vested or has acted in exercise of its
jurisdiction illegally or with material irregularity.
(2) The jurisdiction, powers and authority of the State Commission may be
exercised by Benches thereof, and a Bench may be constituted by the President
with one or more members as the President may deem fit:
Provided that the senior-most member shall preside over the Bench.
(3) Where the members of a Bench differ in opinion on any point, the points shall
be decided according to the opinion of the majority, if there is a majority, but if
the members are equally divided, they shall state the point or points on which
they differ, and make a reference to the President who shall either hear the point
or points himself or refer the case for hearing on such point or points by one or
more of the other members and such point or points shall be decided according
to the opinion of the majority of the members who have heard the case,
including those who first heard it:

Provided that the President or the other members, as the case may be, shall give
opinion on the point or points so referred within a period of one month from
the date of such eference.

(1) A complaint shall be instituted in a State Commission within the limits of whose
jurisdiction,—

(a) the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or
carries on business or has a branch office or personally works for gain; or
(b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on

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business or has a branch office or personally works for gain, provided in

such case, the permission of the State Commission is given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.

Procedure applicable to State Commission.

49. (1) The provisions relating to complaints under sections 35, 36, 37, 38 and 39 shall,
with such modifications as may be necessary, be applicable to the disposal of
complaints by the State Commission.
(2) Without prejudice to the provisions of sub-section (1), the State Commission
may also declare any terms of contract, which is unfair to any consumer, to be
null and void.

Review by State Commission in certain cases

50. The State Commission shall have the power to review any of the order passed by it
if there is an error apparent on the face of the record, either of its own motion or on
an application made by any of the parties within thirty days of such order.

Appeal to National Commission.

51. (1) Any person aggrieved by an order made by the State Commission in exercise of
its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of
section 47 may prefer an appeal against such order to the National Commission
within a period of thirty days from the date of the order in such form and manner
as may be prescribed:
Provided that the National Commission shall not entertain the appeal after the
expiry of the said period of thirty days unless it is satisfied that there was
sufficient cause for not filing it within that period:
Provided further that no appeal by a person, who is required to pay any amount
in terms of an order of the State Commission, shall be entertained by the
National Commission unless the appellant has deposited fifty per cent. of that
amount in the manner as may be prescribed.
(2) Save as otherwise expressly provided under this Act or by any other law for the
time being in force, an appeal shall lie to the National Commission from any
order passed in appeal by any State Commission, if the National Commission
is satisfied that the case involves a substantial question of law.
(3) In an appeal involving a question of law, the memorandum of appeal shall
precisely state the substantial question of law involved in the appeal.
(4) Where the National Commission is satisfied that a substantial question of law is
involved in any case, it shall formulate that question and hear the appeal on that
question:

Provided that nothing in this sub-section shall be deemed to take away or

abridge the

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power of the National Commission to hear, for reasons to be recorded in

writing, the appeal on any other substantial question of law, if it is satisfied that
the case involves such question of law.
(5) An appeal may lie to the National Commission under this section from an order
passed ex parte by the State Commission.

Hearing of appeal.

52. An appeal filed before the State Commission or the National Commission, as the
case may be, shall be heard as expeditiously as possible and every endeavour shall
be made to dispose of the appeal within a period of ninety days from the date of its
admission:
Provided that no adjournment shall ordinarily be granted by the State Commission
or the National Commission, as the case may be, unless sufficient cause is shown
and the reasons for grant of adjournment have been recorded in writing by such
Commission:
Provided further that the State Commission or the National Commission, as the case
may be, shall make such orders as to the costs occasioned by the adjournment, as
may be specified by regulations:
Provided also that in the event of an appeal being disposed of after the period so
specified, the State Commission or the National Commission, as the case may be,
shall record in writing the reasons for the same at the time of disposing of the said
appeal.

Establishment of National Consumer Disputes Redressal Commission.

53. (1) The Central Government shall, by notification, establish a National Consumer
Disputes Redressal Commission, to be known as the National Commission.
(2) The National Commission shall ordinarily function at the National Capital
Region and perform its functions at such other places as the Central
Government may in consultation with the National Commission notify in the
Official Gazette:
Provided that the Central Government may, by notification, establish regional
Benches of the National Commission, at such places, as it deems fit.

Composition of National Commission.

54. The National Commission shall consist of—

(a) a President; and
(b) not less than four and not more than such number of members as may be
prescribed.

Qualifications, etc., of President and members of National Commission.

55. (1) The Central Government may, by notification, make rules to provide for
qualifications, appointment, term of office, salaries and allowances,

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resignation, removal and other terms and conditions of service of the President
and members of the National Commission:
Provided that the President and members of the National Commission shall
hold office for such term as specified in the rules made by the Central
Government but not exceeding five years from the date on which he enters upon
his office and shall be eligible for re-appointment:
Provided further that no President or members shall hold office as such after he
has attained such age as specified in the rules made by the Central Government
which shall not exceed,—
(a) in the case of the President, the age of seventy years;
(b) in the case of any other member, the age of sixty-seven years.
(2) Neither the salary and allowances nor the other terms and conditions of service
of President and members of the National Commission shall be varied to his
disadvantage after his appointment.

Jurisdiction of National Commission.

58. (1) Subject to the other provisions of this Act, the National Commission shall have
jurisdiction—
(a) to entertain—
(i) complaints where the value of the goods or services paid as consideration
exceeds rupees ten crore:
Provided that where the Central Government deems it necessary so to do, it
may prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services
paid as consideration exceeds ten crore rupees;
(iii) appeals against the orders of any State Commission;
(iv) appeals against the orders of the Central Authority; and
(b) to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any State Commission where
it appears to the National Commission that such State Commission has
exercised a jurisdiction not vested in it by law, or has failed to exercise a
jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally
or with material irregularity.
(2) The jurisdiction, powers and authority of the National Commission may be
exercised by Benches thereof and a Bench may be constituted by the President
with one or more members as he may deem fit:
Provided that the senior-most member of the Bench shall preside over the
Bench.
(3) Where the members of a Bench differ in opinion on any point, the points shall
be decided according to the opinion of the majority, if there is a majority, but if
the members are equally divided, they shall state the point or points on which
they differ, and make a reference to the President who shall either hear the point
or points himself or refer the case for hearing on such point or points by one or
more of the other members and such point or points shall be decided according

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to the opinion of the majority of the members who have heard the case,
including those who first heard it:
Provided that the President or the other member, as the case may be, shall give
opinion on the point or points so referred within a period of two months from
the date of such reference.

Procedure applicable to National Commission.

59. (1) The provisions relating to complaints under sections 35, 36, 37, 38 and 39 shall,
with such modifications as may be considered necessary, be applicable to the
disposal of complaints by the National Commission.
(2) Without prejudice to sub-section (1), the National Commission may also declare
any terms of contract, which is unfair to any consumer to be null and void.

Review by National Commission in certain cases.

60. The National Commission shall have the power to review any of the order passed
by it if there is an error apparent on the face of the record, either of its own motion
or on an application made by any of the parties within thirty days of such order.

Power to set aside ex parte orders.

61. Where an order is passed by the National Commission ex parte, the aggrieved party
may make an application to the Commission for setting aside such order.

Service of notice, etc.

65. (1) All notices, required by this Act to be served, shall be served by delivering or
transmitting a copy thereof by registered post acknowledgment due addressed to
opposite party against whom complaint is made or to the complainant by speed
post or by such courier service, approved by the District Commission, the State
Commission or the National Commission, as the case may be, or by any other
mode of transmission of documents including electronic means.
(2) Without prejudice to the provisions contained in sub-section (1), the notice
required by this Act may be served on an electronic service provider at the
address provided by it on the electronic platform from where it provides its
services as such and for this purpose, the electronic service provider shall
designate a nodal officer to accept and process such notices.
(3) When an acknowledgment or any other receipt purporting to be signed by the
opposite party or his agent or, as the case may be, by the complainant is received
by the District Commission, the State Commission or the National Commission,
as the case may be, or postal article containing the notice is received back by
such District Commission, State Commission or the National Commission, with
an endorsement purporting to have been made by a postal employee or by any
person authorised by the courier service to the effect that the opposite party or
his agent or complainant had refused to take delivery of the postal article

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containing the notice or had refused to accept the notice by any other means
specified in sub-section (1) when tendered or transmitted to him, the District
Commission or the State Commission or the National Commission, as the case
may be, shall declare that the notice has been duly served on the opposite party
or to the complainant, as the case may be:

Provided that where the notice was properly addressed, pre-paid and duly sent
by registered post acknowledgment due, a declaration referred to in this sub-
section shall be made notwithstanding the fact that the acknowledgment has been
lost or misplaced, or for any other reason, has not been received by the District
Commission, the State Commission or the National Commission, as the case may
be, within thirty days from the date of issue of notice.

(4) All notices required to be served on an opposite party or to complainant, as the

case may be, shall be deemed to be sufficiently served, if addressed in the case
of the opposite party, to the place where business or profession is carried on, and
in case of the complainant, the place where such person actually and voluntarily
resides.

Experts to assist National Commission or State Commission.

66. Where the National Commission or the State Commission, as the case may be, on
an application by a complainant or otherwise, is of the opinion that it involves the
larger interest of consumers, it may direct any individual or organisation or expert
to assist the National Commission or the State Commission, as the case may be.

Appeal against order of National Commission.

67. Any person, aggrieved by an order made by the National Commission in exercise
of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of
section 58, may prefer an appeal against such order to the Supreme Court within a
period of thirty days from the date of the order:
Provided that the Supreme Court may entertain an appeal after the expiry of the said
period of thirty days if it is satisfied that there was sufficient cause for not filing it
within that period:
Provided further that no appeal by a person who is required to pay any amount in
terms of an order of the National Commission shall be entertained by the Supreme
Court unless that person has deposited fifty per cent. of that amount in the manner
as may be prescribed.

Finality of Orders

68. Every order of a District Commission or the State Commission or the National
Commission, as the case may be, shall, if no appeal has been preferred against such
order under the provisions of this Act, be final.

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Limitation period.

69. (1) The District Commission, the State Commission or the National Commission
shall not admit a complaint unless it is filed within two years from the date on
which the cause of action has arisen.
(2) Notwithstanding anything contained in sub-section (1), a complaint may be
entertained after the period specified in sub-section (1), if the complainant
satisfies the District Commission, the State Commission or the National
Commission, as the case may be, that he had sufficient cause for not filing the
complaint within such period:
Provided that no such complaint shall be entertained unless the District
Commission or the State Commission or the National Commission, as the case
may be, records its reasons for condoning such delay.

Administrative Control

70. (1) The National Commission shall have the authority to lay down such adequate
standards in consultation with the Central Government from time to time, for
better protection of the interests of consumers and for that purpose, shall have
administrative control over all the State Commissions in the following matters,
namely:—
(a) monitoring performance of the State Commissions in terms of their disposal
by calling for periodical returns regarding the institution, disposal and
pendency of cases;
(b) investigating into any allegations against the President and members of a
State Commission and submitting inquiry report to the State Government
concerned along with copy endorsed to the Central Government for
necessary action;
(c) issuance of instructions regarding adoption of uniform procedure in the
hearing of matters, prior service of copies of documents produced by one
party to the opposite parties, furnishing of English translation of judgments
written in any language, speedy grant of copies of documents;

(d) overseeing the functioning of the State Commission or the District

Commission either by way of inspection or by any other means, as the
National Commission may like to order from time to time, to ensure that the
objects and purposes of the Act are best served and the standards set by the
National Commission are implemented without interfering with their quasi-
judicial freedom.
(2) There shall be a monitoring cell to be constituted by the President of the
National Commission to oversee the functioning of the State Commissions
from the administrative point of view.
(3) The State Commission shall have administrative control over all the District
Commissions within its jurisdiction in all matters referred to in sub-section
(1).

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(4) The National Commission and the State Commissions shall furnish to the
Central Government periodically or as and when required, any information
including the pendency of cases in such form and manner as may be
prescribed.
(5) The State Commission shall furnish, periodically or as and when required to
the State Government any information including pendency of cases in such
form and manner as may be prescribed.

Enforcement of orders of District Commission, State Commission and National

Commission.

71. Every order made by a District Commission, State Commission or the National
Commission shall be enforced by it in the same manner as if it were a decree made
by a Court in a suit before it and the provisions of Order XXI of the First Schedule
to the Code of Civil Procedure, 1908 shall, as far as may be, applicable, subject to
the modification that every reference therein to the decree shall be construed as
reference to the order made under this Act.

Penalty for non-compliance of order.

72. Whoever fails to comply with any order made by the District Commission or the
State Commission or the National Commission, as the case may be, shall be
punishable with imprisonment for a term which shall not be less than 1 month, but
which may extend to 3 years, or with fine, which shall not be less than 25000
rupees, but which may extend to 100000 rupees, or with both.

Appeal against order passed under section 72.

73. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
where an order is passed under sub-section (1) of section 72, an appeal shall lie,
both on facts and on law from—
(a) the order made by the District Commission to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court.
(2) Except as provided in sub-section (1), no appeal shall lie before any court, from
any order of a District Commission or a State Commission or the National
Commission, as the case may be.
(3) Every appeal under this section shall be preferred within a period of thirty days
from the date of order of a District Commission or a State Commission or the
National Commission, as the case may be:

Provided that the State Commission or the National Commission or the

Supreme Court, as the case may be, may entertain an appeal after the expiry of
the said period of thirty days, if it is satisfied that the appellant had sufficient
cause for not preferring the appeal within the said period of thirty days.

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CHAPTER V - MEDIATION

Establishment of consumer mediation cell.

74. (1) The State Government shall establish, by notification, a consumer mediation cell
to be attached to each of the District Commissions and the State Commissions
of that State.
(2) The Central Government shall establish, by notification, a consumer mediation
cell to be attached to the National Commission and each of the regional
Benches.
(3) A consumer mediation cell shall consist of such persons as may be prescribed.
(4) Every consumer mediation cell shall maintain—
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by regulations.
(5) Every consumer mediation cell shall submit a quarterly report to the District
Commission, State Commission or the National Commission to which it is
attached, in the manner specified by regulations.

Empanelment of mediators.

75. (1) For the purpose of mediation, the National Commission or the State
Commission or the District Commission, as the case may be, shall prepare a
panel of the mediators to be maintained by the consumer mediation cell
attached to it, on the recommendation of a selection committee consisting of
the President and a member of that Commission.
(2) The qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empanelled mediators, the
fee payable to empanelled mediator, the terms and conditions for
empanelment, the code of conduct for empanelled mediators, the grounds on
which, and the manner in which, empanelled mediators shall be removed or
empanelment shall be cancelled and other matters relating thereto, shall be
such as may be specified by regulations.
(3) The panel of mediators prepared under sub-section (1) shall be valid for a period
of five years, and the empanelled mediators shall be eligible to be considered
for re-empanelment for another term, subject to such conditions as may be
specified by regulations.

Nomination of mediators from panel.

76. The District Commission, the State Commission or the National Commission shall,
while nominating any person from the panel of mediators referred to in section 75,
consider his suitability for resolving the consumer dispute involved.

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Duty of mediator to disclose certain facts.

77. It shall be the duty of the mediator to disclose—

(a) any personal, professional or financial interest in the outcome of the consumer
dispute;
(b) the circumstances which may give rise to a justifiable doubt as to his
independence or impartiality; and
(d) such other facts as may be specified by regulations.

Replacement of mediator in certain cases.

78. Where the District Commission or the State Commission or the National
Commission, as the case may be, is satisfied, on the information furnished by the
mediator or on the information received from any other person including parties to
the complaint and after hearing the mediator, it shall replace such mediator by
another mediator.

Procedure for mediation.

79. (1) The mediation shall be held in the consumer mediation cell attached to the
District Commission, the State Commission or the National Commission, as the
case may be.

(2) Where a consumer dispute is referred for mediation by the District Commission
or the State Commission or the National Commission, as the case may be, the
mediator nominated by such Commission shall have regard to the rights and
obligations of the parties, the usages of trade, if any, the circumstances giving
rise to the consumer dispute and such other relevant factors, as he may deem
necessary and shall be guided by the principles of natural justice while carrying
out mediation.

Settlement through mediation.

80. (1) Pursuant to mediation, if an agreement is reached between the parties with
respect to all of the issues involved in the consumer dispute or with respect to only some
of the issues, the terms of such agreement shall be reduced to writing accordingly, and
signed by the parties to such dispute or their authorised representatives.

(2) The mediator shall prepare a settlement report of the settlement and forward the
signed agreement along with such report to the concerned Commission.

(3) Where no agreement is reached between the parties within the specified time or the
mediator is of the opinion that settlement is not possible, he shall prepare his report
accordingly and submit the same to the concerned Commission.

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Recording settlement and passing of order.

81. (1) The District Commission or the State Commission or the National Commission,
as the case may be, shall, within seven days of the receipt of the settlement report, pass
suitable order recording such settlement of consumer dispute and dispose of the matter
accordingly.

(2) Where the consumer dispute is settled only in part, the District Commission or the
State Commission or the National Commission, as the case may be, shall record
settlement of the issues which have been so settled and continue to hear other issues
involved in such consumer dispute.

(3) Where the consumer dispute could not be settled by mediation, the District
Commission or the State Commission or the National Commission, as the case may
be, shall continue to hear all the issues involved in such consumer dispute.

PRODUCT LIABILITY CHAPTER VI

Application of Chapter

82. This Chapter shall apply to every claim for compensation under a product liability
action by a complainant for any harm caused by a defective product manufactured by a
product manufacturer or serviced by a product service provider or sold by a product
seller.

Product liability action.

83. A product liability action may be brought by a complainant against a product

manufacturer or a product service provider or a product seller, as the case may be, for
any harm caused to him on account of a defective product.

Liability of product manufacturer.

84. (1) A product manufacturer shall be liable in a product liability action, if—

(a) the product contains a manufacturing defect; or

(b) the product is defective in design; or
(c) there is a deviation from manufacturing specifications; or
(d) the product does not conform to the express warranty; or
(e) the product fails to contain adequate instructions of correct usage to prevent any
harm or any warning regarding improper or incorrect usage.

(2) A product manufacturer shall be liable in a product liability action even if he proves
that he was not negligent or fraudulent in making the express warranty of a product.

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Liability of product service provider.

85. A product service provider shall be liable in a product liability action, if—

(a) the service provided by him was faulty or imperfect or deficient or inadequate in
quality, nature or manner of performance which is required to be provided by or
under any law for the time being in force, or pursuant to any contract or otherwise;
or
(b) there was an act of omission or commission or negligence or conscious withholding
any information which caused harm; or
(c) the service provider did not issue adequate instructions or warnings to prevent any
harm; or
(d) the service did not conform to express warranty or the terms and conditions of the
contract.

Liability of product sellers.

86. A product seller who is not a product manufacturer shall be liable in a product
liability action, if—

(a) he has exercised substantial control over the designing, testing, manufacturing,
packaging or labelling of a product that caused harm; or

(b) he has altered or modified the product and such alteration or modification was the
substantial factor in causing the harm; or

(c) he has made an express warranty of a product independent of any express warranty
made by a manufacturer and such product failed to conform to the express warranty
made by the product seller which caused the harm; or

(d) the product has been sold by him and the identity of product manufacturer of such
product is not known, or if known, the service of notice or process or warrant cannot
be effected on him or he is not subject to the law which is in force in India or the
order, if any, passed or to be passed cannot be enforced against him; or

(e) he failed to exercise reasonable care in assembling, inspecting or maintaining such

product or he did not pass on the warnings or instructions of the product manufacturer
regarding the dangers involved or proper usage of the product while selling such
product and such failure was the proximate cause of the harm.

Exceptions to product liability action.

87. (1) A product liability action cannot be brought against the product seller if, at the
time of harm, the product was misused, altered, or modified.

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(2) In any product liability action based on the failure to provide adequate warnings or
instructions, the product manufacturer shall not be liable, if—

(a) the product was purchased by an employer for use at the workplace and the product
manufacturer had provided warnings or instructions to such employer;

(b) the product was sold as a component or material to be used in another product and
necessary warnings or instructions were given by the product manufacturer to the
purchaser of such component or material, but the harm was caused to the
complainant by use of the end product in which such component or material was
used;

(c) the product was one which was legally meant to be used or dispensed only by or
under the supervision of an expert or a class of experts and the product manufacturer
had employed reasonable means to give the warnings or instructions for usage of
such product to such expert or class of experts; or

(d) the complainant, while using such product, was under the influence of alcohol or
any prescription drug which had not been prescribed by a medical practitioner.

(3) A product manufacturer shall not be liable for failure to instruct or warn about a
danger which is obvious or commonly known to the user or consumer of such
product or which, such user or consumer, ought to have known, taking into account
the characteristics of such product.

Penalty for non-compliance of direction of Central Authority.

88. Whoever, fails to comply with any direction of the Central Authority under sections
20 and 21, shall be punished with imprisonment for a term which may extend to six
months or with fine which may extend to twenty lakh rupees, or with both.

Punishment for false or misleading advertisement.

89. Any manufacturer or service provider who causes a false or misleading
advertisement to be made which is prejudicial to the interest of consumers shall be
punished with imprisonment for a term which may extend to two years and with fine
which may extend to ten lakh rupees; and for every subsequent offence, be punished
with imprisonment for a term which may extend to five years and with fine which
may extend to fifty lakh rupees.

Punishment for manufacturing for sale or storing, selling or distributing or

importing products containing adulterant.
90. (1) Whoever, by himself or by any other person on his behalf, manufactures for sale
or stores or sells or distributes or imports any product containing an adulterant shall

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be punished, if such act—

(a) does not result in any injury to the consumer, with imprisonment for a term
which may extend to six months and with fine which may extend to one lakh
rupees;
(b) causing injury not amounting to grievous hurt to the consumer, with
imprisonment for a term which may extend to one year and with fine which may
extend to three lakh rupees;
(c) causing injury resulting in grievous hurt to the consumer, with imprisonment for
a term which may extend to seven years and with fine which may extend to five lakh
rupees; and
(d) results in the death of a consumer, with imprisonment for a term which shall not
be less than seven years, but which may extend to imprisonment for life and with
fine which shall not be less than ten lakh rupees.
(2) The offences under clauses (c) and (d) of sub-section (1) shall be cognizable and
non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the court may, in case of
first conviction, suspend any licence issued to the person referred to in that sub-
section, under any law for the time being in force, for a period up to two years, and
in case of second or subsequent conviction, cancel the licence.
Explanation.—For the purposes of this section,—
(a) "adulterant" means any material including extraneous matter which is
employed or used for making a product unsafe;
(b) "grievous hurt" shall have the same meaning as assigned to it in section 320 of
the Indian Penal Code.

Punishment for manufacturing for sale or for storing or selling or distributing

or importing spurious goods.

91. (1) Whoever, by himself or by any other person on his behalf, manufactures for sale
or stores or sells or distributes or imports any spurious goods shall be punished, if
such act—
(a) causing injury not amounting to grievous hurt to the consumer, with
imprisonment for a term which may extend to 1 year and with fine which may
extend to 3 lakh rupees;
(b) causing injury resulting in grievous hurt to the consumer, with imprisonment for a
term which may extend to 7 years and with fine which may extend to 5 lakh rupees;
(c) results in the death of a consumer, with imprisonment for a term which shall not
be less than seven years, but may extend to imprisonment for life and with fine
which shall not be less than ten lakh rupees.

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(2) The offences under clauses (b) and (c) of sub-section (1) shall be cognizable and
non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the court may, in case of
first conviction, suspend any licence issued to the person referred to in that sub-
section, under any law for the time being in force, for a period up to two years, and
in case of second or subsequent conviction, cancel the licence.

Cognizance of offence by court.

92. Cognizance shall be taken by a competent court of any offence under sections 88 and
89 ONLY on a complaint filed by the Central Authority or any officer authorised by
it in this behalf.

Measures to prevent unfair trade practices in e-commerce, direct selling, etc

94. For the purposes of preventing unfair trade practices in e-commerce, direct selling
and also to protect the interest and rights of consumers, the Central Government
may take such measures in the manner as may be prescribed.

Compounding of offences
96. (1) Any offence punishable under sections 88 and 89, may, either before or after the
institution of the prosecution, be compounded, on payment of such amount as may
be prescribed:
Provided that no compounding of such offence shall be made without the leave of the
court before which a complaint has been filed under section 92:
Provided further that such sum shall not, in any case, exceed the maximum amount
of the fine, which may be imposed under this Act for the offence so compounded.
(2) The Central Authority or any officer as may be specially authorised by him in this
behalf, may compound offences under sub-section (1).

(3) Nothing in sub-section (1) shall apply to person who commits the same or similar
offence, within a period of three years from the date on which the first offence,
committed by him, was compounded.
Explanation.—For the purposes of this sub-section, any second or subsequent offence
committed after the expiry of a period of three years from the date on which the
offence was previously compounded, shall be deemed to be a first offence.
(4) Where an offence has been compounded under sub-section (1), no proceeding or
further proceeding, as the case may be, shall be taken against the offender in respect
of the offence so compounded.
(5) The acceptance of the sum of money for compounding an offence in accordance
with sub-section (1) by the Central Authority or an officer of the Central Authority

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empowered in this behalf shall be deemed to amount to an acquittal within the

meaning of the Code of Criminal Procedure, 1973.

Protection of action taken in good faith.

98. No suit, prosecution or other legal proceeding shall lie against the Presidents and
members of the District Commission, the State Commission and the National
Commission, the Chief Commissioner, the Commissioner, any officer or employee
and other person performing any duty under this Act, for any act which is in good
faith done or intended to be done in pursuance of this Act or under any rule or order
made thereunder.

Act not in derogation of any other law.

100. The provisions of this Act shall be in addition to and not in derogation of the
provisions of any other law for the time being in force.

Consumer Protection (Jurisdiction of the District Commission, the State

Commission and the National Commission) Rules, 2021
Central Government vide its notification dated 30th December, 2021 these rules.
With notification of the aforementioned rules, the new pecuniary jurisdiction, subject
to other provisions of the Act, shall be as under:
1. District Commissions shall have jurisdiction to entertain complaints where value of
the goods or services paid as consideration does not exceed 50 lakh rupees.
2. State Commissions shall have jurisdiction to entertain complaints where value of the
goods or services paid as consideration exceeds 50 lakh rupees but does not exceed 2
crore rupees.
3. National Commission shall have jurisdiction to entertain complaints where value of
the goods or services paid as consideration exceeds 2 crore rupees.

CS DEEPAK GAJRANI