Sudhansu Sir Unit-IV Disha College

Consumer Protection Act, 2019

Consumer Protection
It refers to the steps taken to protect the consumer against the unfair practices of the producers and the
sellers.
Generally consumers are exploited by:
 Adulteration of consumer goods
 Poor quality of goods and services
 Misleading advertisements
 Short measure and underweight goods
 Creation of Artificial scarcity by hoarding of goods
Some examples of consumer exploitation in India
On the basis of the judgments passed in courts and the reports published in the newspapers following are
the examples of consumers exploitation in India:
 A manufacturer of sunflower oil claims in the advertisement published in a national newspaper that his oil
is rich in vitamins, minerals and proteins. On testing, all claims were found false.
 Instant noodles can only be sold in the packing of 100 gms but in the case of some manufacturers there are
just 80 gms noodles in the packet.
 A woman got admitted in a civil hospital for an appendix operation but the doctor treated her negligently
and removed her gall bladder instead of the appendix and as a result the woman died.
Importance of consumer protection:
From the consumers’ point of view:
1. Consumers’ ignorance: generally, the consumers are not aware of their rights. It is only because of this
ignorance that they cannot raise their voice against their exploitation rampart in the market. Therefore, it
has become necessary in public interest that they should be educated about their rights so that they become
activated.
2. Unorganized consumers: consumers are unorganized in India. Though there may be some organizations
here and there for protecting the interests of consumers but still it is an unorganized sector. Consumer
protection has encouraged the formation of consumer organizations for protecting their interests.
3. Widespread exploitation of consumers: These days consumers are being exploited on a large scale.
From the business point of view:
4. Long term interest of business: Every business wants to enjoy long existence. This is possible only when
business firms provide absolute satisfaction to the consumers. Paying attention to the satisfaction of the
consumers is nothing but consumer’s protection.
5. Uses society’s resources: Every business uses various resources from society. It becomes the
responsibility of business to provide better facilities to society. Through the medium of consumer
protection business gets an opportunity to discharge its responsibility towards society.
6. Social responsibilities: A business is responsible for the welfare of the society. It is expected to supply
quality products at reasonable prices. A part of profit earned by a business should be used for the welfare
of the society.
7. Moral justification: It is the moral responsibility of business to take care of the consumer’s interest. The
business should keep away from the evils of adulteration, inferior quality, misleading advertisement, black
marketing etc. By doing so they can discharge their moral responsibility and it can be said that business is
helping the cause of consumer protection.
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The Consumer Protection Act, 2019 is a significant legislative step in India aimed at safeguarding
the rights of consumers and addressing their grievances efficiently. Here are some key notes on the
Act:
1. Objective
The Consumer Protection Act, 2019, was introduced to replace the earlier Consumer Protection
Act, 1986, and to provide more robust protection of consumer rights in light of the changes in
market dynamics and e-commerce. It aims to:
 Protect consumers from unfair trade practices.
 Establish authorities to resolve consumer disputes.
 Promote consumer awareness and education.
2. Key Definitions
 Consumer: A person who buys goods or avails services for consideration. The term excludes those
who purchase goods for resale or commercial purposes.
 Goods: Every kind of movable property, including food, crops, and other products.
 Services: Any description of services like banking, insurance, transport, processing, supply of
electricity, etc.
3. Consumer Rights Under the Act
The Act recognizes the following rights of consumers:
1. Right to Safety: Protection from goods and services that are hazardous to life and property.
2. Right to Information: Right to be informed about the quality, quantity, potency, purity, standard,
and price of goods or services.
3. Right to Choose: Access to a variety of goods and services at competitive prices.
4. Right to be Heard: Consumers’ interests will receive due consideration at appropriate forums.
5. Right to Redressal: Right to seek redressal against unfair or restrictive trade practices or
exploitation.
6. Right to Consumer Education: To be educated about consumer rights and responsibilities.
4. Central Consumer Protection Authority (CCPA)
 The Act establishes the CCPA, a regulatory body with wide-ranging powers to promote, protect,
and enforce consumer rights.
 Functions of CCPA:
o Taking suo moto actions.
o Issuing guidelines to prevent unfair trade practices.
o Imposing penalties for false or misleading advertisements.
o Ordering recall of unsafe goods or services.
5. Consumer Dispute Redressal Commissions (CDRCs)
The act has a three-tier mechanism for addressing consumer grievances:
1. District Commission (for disputes up to ₹1 crore).
2. State Commission (for disputes between ₹1 crore and ₹10 crore).
3. National Commission (for disputes above ₹10 crore).
Consumers can file complaints in their own jurisdiction or where they reside or work, which makes
the process more convenient.
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6. E-Filing of Complaints
 Consumers can file complaints electronically, which makes the process more accessible and
convenient, especially for disputes related to online transactions.
7. Product Liability
The Act introduces product liability, making manufacturers, service providers, and sellers
responsible for any harm caused to consumers due to defective products or deficient services.
 The liability is based on defective manufacturing, design defects, deviation from warranty, or
failure to meet reasonable expectations of the consumer.
8. Penalties for Misleading Advertisements
 The Act provides for penalties to manufacturers and endorsers (e.g., celebrities) for misleading
advertisements. Endorsers can be banned from endorsing any product or service for up to a year,
and on subsequent offenses, up to three years.
9. Unfair Trade Practices
The Act identifies several unfair trade practices, such as:
 False or misleading advertisements.
 Sale of spurious goods.
 Charging more than the MRP.
 Denying service after accepting full consideration.
10. E-Commerce and Digital Consumer Rights
The act covers issues related to e-commerce transactions. Some key provisions include:
 E-commerce platforms are required to disclose all necessary information (e.g., price, return policy)
to enable informed decision-making by consumers.
 Platforms must respond to consumer complaints promptly.
 Prohibition of unfair trade practices in digital marketing.
11. Alternate Dispute Resolution (ADR)
The Act encourages mediation as an alternative to litigation. Mediation cells have been established
under the Consumer Dispute Redressal Commissions to resolve disputes amicably, reducing the
burden on courts.
12. Liability of Endorsers and Manufacturers
 Endorsers of a product can also be held liable for misleading advertisements.
 Manufacturers, producers, and sellers are required to ensure the quality and safety of goods and
services.
13. Provisions for Class Action Suits
 Consumers can now file class action suits for collective redressal, especially in cases involving
large-scale grievances.
14. Time Frame for Disposal of Cases
The Act mandates that consumer complaints should be disposed of within a certain period (90-150
days), depending on the nature and complexity of the case, ensuring faster resolution.
Conclusion
The Consumer Protection Act, 2019, strengthens consumer rights and promotes accountability
among manufacturers, sellers, and service providers. It is a progressive step toward creating a more
consumer-friendly market, especially in the growing e-commerce sector, and providing consumers
with the tools to seek redressal efficiently.
 Sudhansu Sir Unit-IV Disha College
CONSUMER DISPUTE REDRESSAL COMMISSIONS (CDRCs)
The Consumer Redressal Committee does not specifically exist as a separate body under the
Consumer Protection Act, 2019. However, the Consumer Dispute Redressal Commissions
(CDRCs) act as the primary bodies for redressal of consumer grievances in India under this act.
The three-tier consumer dispute redressal system plays a vital role in ensuring the protection of
consumer rights and addressing their complaints. These bodies are tasked with hearing consumer
complaints and disputes related to defective goods, deficient services, unfair trade practices, and
other grievances consumers may have. Here's a detailed explanation of the consumer redressal
framework under the Act:
1. Consumer Dispute Redressal Commissions (CDRCs)
The Consumer Protection Act, 2019, establishes three levels of Consumer Dispute Redressal
Commissions:
1. District Consumer Dispute Redressal Commission (District Commission)
2. State Consumer Dispute Redressal Commission (State Commission)
3. National Consumer Dispute Redressal Commission (National Commission)
These commissions are quasi-judicial bodies set up to resolve consumer complaints.
2. Structure and Jurisdiction
Each tier of the commission has a distinct jurisdiction based on the monetary value of the consumer
complaints:
a) District Consumer Dispute Redressal Commission
 Jurisdiction: It deals with consumer disputes where the value of the goods or services and the
compensation claimed does not exceed ₹1 crore.
 Function: It serves as the first point of contact for consumers to file complaints. Consumers can
file a case where they reside, work, or where the opposite party resides.
b) State Consumer Dispute Redressal Commission
 Jurisdiction: It deals with cases where the value of the goods or services and the compensation
claimed is more than ₹1 crore but less than ₹10 crore.
 Function: It hears appeals against the orders of the District Commission, and consumers may
directly approach it if the claim falls within its monetary jurisdiction.
c) National Consumer Dispute Redressal Commission
 Jurisdiction: The National Commission deals with disputes where the value of the claim exceeds
₹10 crore.
 Function: It also hears appeals from the decisions of the State Commission. It is the highest
authority in the consumer redressal hierarchy and is based in New Delhi.
3. Filing a Complaint
Consumers can file complaints regarding:
 Defective goods.
 Deficiency in services.
 Overcharging or deceptive pricing.
 Unfair trade practices.
 Sale of hazardous goods.
 Denial of service even after payment.
Procedure for Filing a Complaint:
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 A consumer can file a complaint electronically, making the process more accessible.
 The complaint can be filed in the district, state, or national commission depending on the monetary
value involved.
4. Redressal Process
 Once a complaint is filed, the commission issues a notice to the opposite party (manufacturer,
seller, or service provider) to respond.
 If the commission finds merit in the complaint, it conducts hearings, allowing both parties to
present evidence and arguments.
 The commission has the power to order the opposite party to pay compensation, replace defective
goods, repair goods, or provide refunds, depending on the case.
5. Mediation as an Alternative
The 2019 Act introduced the option of mediation as a way to resolve consumer disputes amicably
and quickly. Mediation cells are established under the District, State, and National Commissions.
 If both parties agree, the matter may be referred to mediation to settle disputes without lengthy
litigation.
 This approach helps in reducing the burden on the commissions and provides faster relief to
consumers.
6. Appeal Process
If a consumer is not satisfied with the decision of a lower commission, they have the right to appeal
to the next higher level:
 From District Commission to State Commission.
 From State Commission to National Commission.
 From National Commission to the Supreme Court of India.
7. Timeframe for Resolution
The Act mandates that consumer disputes be resolved within a reasonable time frame:
 District Commission: Cases should ideally be resolved within 90 days of filing if no testing of
goods is required and within 150 days if the goods need testing or expert analysis.
 State and National Commissions: Similar timelines apply, with efforts to ensure that cases do not
drag on unnecessarily.
8. Penalties
The commissions have the authority to impose penalties on manufacturers, sellers, or service
providers if found guilty of supplying defective goods or services, engaging in unfair trade
practices, or violating consumer rights. These penalties may include:
 Compensation to the consumer.
 Fines or imprisonment in case of grave violations.
 Corrective measures, such as recalling unsafe products from the market.
9. Product Liability
The Act introduces the concept of product liability, where manufacturers and sellers are held
responsible for any injury or harm caused to consumers by defective products. Consumers can seek
redressal under the commission for:
 Manufacturing defects.
 Design defects.
 Deviation from manufacturing standards.
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 Failure to provide adequate instructions or warnings.
10. Role of Consumer Protection Councils
Although not a dispute resolution body, Consumer Protection Councils are advisory bodies
formed at the district, state, and national levels. They promote and protect the rights of consumers
by increasing awareness, advising on policy matters, and supporting consumer education programs.

Conclusion
The Consumer Dispute Redressal Commissions established under the Consumer Protection Act,
2019, provide an accessible and structured mechanism for consumers to seek justice and resolution
of their grievances. This system ensures that consumer rights are protected efficiently and
transparently, offering remedies such as compensation, product recall, and penalties for unfair
practices.

DIFFERENCE BETWEEN DISTRICT COMMISSION, STATE

COMMISSION AND NATIONAL COMMISSION:

The District Commission (DC), State Commission (SC), and National Commission (NC) are the
three levels of Consumer Dispute Redressal Commissions (CDRCs) established under the
Consumer Protection Act, 2019. These quasi-judicial bodies deal with consumer complaints
related to goods and services, offering a mechanism for redressal. Here are the key differences
between these commissions:

1. Jurisdiction (Monetary Value of Complaints)

 District Commission (DC):
o Handles cases where the value of goods or services and compensation claimed is up to ₹1 crore.
 State Commission (SC):
o Deals with cases where the value of goods or services and compensation claimed is more than ₹1
crore but less than ₹10 crore.
 National Commission (NC):
o Handles cases where the value of goods or services and compensation claimed exceeds ₹10 crore.

2. Territorial Jurisdiction
 District Commission (DC):
o Has jurisdiction over disputes within the district where the complaint is filed. The consumer can
file the case where they reside, where the goods/services were purchased, or where the
seller/provider is located.
 State Commission (SC):
o Covers disputes within the state where the complaint is filed. The State Commission also handles
appeals against orders passed by the District Commissions within that state.
 National Commission (NC):
o Has national jurisdiction and hears cases from across the country. It also handles appeals against
the decisions of State Commissions.
 Sudhansu Sir Unit-IV Disha College
3. Appellate Jurisdiction
 District Commission (DC):
o Is the first level for filing consumer complaints. There is no appeal below the District Commission.
 State Commission (SC):
o Acts as an appellate authority for cases appealed from the District Commission. If a consumer is
dissatisfied with the decision of the District Commission, they can appeal to the State Commission.
 National Commission (NC):
o Acts as an appellate authority for cases appealed from the State Commission. If a consumer is
dissatisfied with the State Commission’s order, they can approach the National Commission.
Additionally, appeals from the National Commission can be taken to the Supreme Court.

4. Composition of the Commissions

 District Commission (DC):
o Typically consists of a President (a judicial officer, usually a person who is or has been a District
Judge) and two members, one of whom must be a woman.
 State Commission (SC):
o Consists of a President (usually a retired or sitting judge of a High Court) and at least two
members, one of whom must be a woman.
 National Commission (NC):
o Consists of a President (who must be a former Judge of the Supreme Court of India) and at least
four members, one of whom must be a woman.

5. Time Limit for Filing Appeals

 District Commission (DC):
o No appeal below this level. Initial complaints must be filed within two years of the cause of action
(the incident or grievance).
 State Commission (SC):
o Appeals to the State Commission against the District Commission's order must be filed within 45
days from the date of the District Commission’s decision.
 National Commission (NC):
o Appeals to the National Commission against the State Commission's order must be filed within 30
days of the State Commission’s decision.

6. Authority to Impose Penalties

 District Commission (DC):
o Can order compensation or remedies in cases where the value does not exceed ₹1 crore, including
the replacement of goods, repair of defective products, refund, or compensation for suffering.
 State Commission (SC):
o Can impose penalties or remedies in cases between ₹1 crore and ₹10 crore. It can also hear appeals
against District Commission orders.
 National Commission (NC):
o Has the highest authority to impose penalties or order redressal in cases involving more than ₹10
crore and to hear appeals from the State Commissions.
 Sudhansu Sir Unit-IV Disha College
7. Powers of Review and Recall
 District Commission (DC):
o Does not have the power to review its own orders once passed. The review must be sought at the
higher level (State Commission).
 State Commission (SC):
o Has the power to review its own orders under certain circumstances and can also recall orders if
new evidence arises.
 National Commission (NC):
o Has the power to review its own orders, and it can also issue directives to ensure compliance with
its decisions. It can review cases and pass judgments based on the merits of the case.

Summary
District Commission National Commission
Feature State Commission (SC)
(DC) (NC)
Monetary
Up to Rs.1 crore Rs.1 crore to Rs.10 crore Above Rs.10 crore
Jurisdiction
Territorial
District level State level National level
Jurisdiction
Appellate Appeals from District Appeals from State
No appeal below
Jurisdiction Commission Commission
President + 2
Composition President + 2 members President + 4 members
members
Within 45 days of DC's Within 30 days of SC's
Filing Appeals Not applicable
order order
Time for Disposal 90-150 days 90-150 days 90-150 days

These three tiers of commissions work together to ensure that consumers across India can seek
redressal for their grievances in a structured, hierarchical manner, with each level dealing with
increasingly complex and higher-value disputes.