The Consumer Protection Act

Introduction

Relationship between customers and sellers is rapidly changing. Keeping in mind this
Consumer Protection Act, 1986 was replaced by Consumer Protection Act, 2019 to protect
consumer's interest. The Act provides a formal judicial dispute redressal machinery at the
National, State and District level.

Objectives

Main objective of Consumer Protection Act is to ensure better protection of consumer's

interests. Other objective is to establish consumer councils and other authorities to settle
consumer disputes and other matters.

Scope

It applies to all goods and services in public, private and cooperative sector. Protect consumers
against: an unfair trade practice by any seller or service provider; the goods purchased or
agreed to be purchased suffer from defect or defects ; the service provided or to be provided
suffer from any deficiency or deficiencies; seller or service provider has charged excessive price
than fixed under law and if the goods and services are unsafe or hazardous to life is being
offered.

National Consumer Day

24th December is celebrated as National Consumer's Day as on this day Consumer Protection
Act, 1986 was enacted in the Parliament to protect consumers against malpractices and
exploitation.

World Consumer's Rights Day

15th March is observed as World Consumer's Day. The Consumers International (CI) is an
umbrella body consisting of 120 countries started observing this day to promote basic rights of
consumers since 1983.

UNGCP

UNGCP launched in 1985 was revised after deliberations in December 2015. The UN General
Assembly approved it on 22 December, 2015. India actively participated in the process and
emphasized on oversight mechanism in the form of Intergovernmental Group of Exports.
UNGCP 2015 Objectives

A. Adequate Protection of consumers in all countries

B. Facilitate Production and distribution patterns according to needs and desires of consumers
C. Facilitate development of independent consumer groups
D. International Cooperation in Consumer Protection
E. Promoting Sustainable Consumption

Scope

These guidelines apply to business to consumer transactions. Consumer Protection includes

laws, regulations, rules, mechanisms etc.

Principles for good business practices under UNGCP

A. Fair and equitable treatment

B. Commercial Behaviour
C. Transparency
D. Promoting Awareness
E. Clear and Timely information
F. Transparent Process
G. Easy to understand contract terms
H. Secure Payment Mechanisms
I. Speedy redressal
J. Privacy of consumers
K. Consumer and Business Education

Salient Features of Consumer Protection Act

A. The Act enshrined six consumer rights.

B. It is an umbrella legislation covering goods and services.
C. Simple and Timely redressal of consumer complaints.
D. It is not only compensative but preventive in nature too.
E. The Act provides for establishing regulatory bodies at central, state and district level.

Basic Concepts under CPA

A) Consumer: Consumer is any person who buys any goods or avail any services for a
consideration which has been paid or promised or partly paid and partly promised or under any
other system of deferred payment and also includes any user of such goods or beneficiary of
such services when such use of goods or such avail of services is done with approval of first
mentioned person but doesn't apply for a person who obtains such goods for resale or
Commercial purposes and also on person who avails such services for any Commercial
purpose.
B) Goods: Goods have been defined as every kind of movable property and includes stocks
and shares, grass, growing crops and things attached to or forming part of land which has been
agreed to be severed before sale or under contract of sale.
C) Service: The term service means service of any description made available to potential
users but it does not include any services rendered free of charge.
D) Consumer Dispute: It means that when a complaint is made denies or disputes the
allegations.
E) Defect in Goods: Faults in product quality or performance that don’t meet standards,
allowing consumers to file complaints.
F) Deficiency in Service: Poor service quality or withheld information causing consumer loss,
including negligence or wrongful charges.
G) Restrictive Trade Practice: Manipulative practices that raise prices, like delaying goods or
requiring extra purchases, which often impact rural consumers more due to fewer options.
H) Spurious Goods: Fake products resembling genuine ones, misleading consumers (e.g.,
"Calgot" for "Colgate").
I) Unfair Trade Practice: Deceptive practices, including false claims about a product’s quality or
misrepresentation of used goods as new including misleading statements about goods and
services; false offer or bargain price; offering of gifts/prizes ; non compliance of standards;
hoarding, destruction or refusal; non issuance of receipt or cash memo and disclosing to other
person personal information about the consumer.
J) Unfair Contracts: These are agreements that favor the manufacturer, trader, or service
provider over the consumer. They might include excessive security deposits, harsh penalties,
restrictions on early debt repayment, unilateral termination, or the ability to assign the contract
without the consumer's consent.
K) Product Liability:
Consumers can claim compensation for harm caused by defective products.
Manufacturers, service providers, and sellers can be held responsible.
Liability arises when a product has manufacturing defects, design flaws, deviates from
specifications, doesn't meet warranty, or lacks proper instructions or warnings.

Consumer Rights Under CPA

A. Right to Safety- This is the right to be protected against hazardous to life goods and services.
B. Right to be Informed- It is the right to be Informed about Quality, quantity, purity, standard
and price of the goods and services being purchased.
C. Right to Choose- The right to be assured of the access of variety of goods and services at
competitive prices.
D. Right to be heard- It means consumer's interests should be duely considered at appropriate
forums.
E. Right to Seek Redressal- It includes fair settlement for the genuine grievances of consumers.
F. Right to Consumer Awareness- It means right of a consumer to remain an Informed
consumer throughout his/her life.

Consumer Protection Act discusses only six rights but the below written rights are crucial for
countries like India.

G. Right to basic needs- Right to access fundamental amenities like food, water and shelter.
H. Right to a healthy and sustained environment-Right to live and work in a place that is not
threatning to life.

Responsibilities of Consumers

A) Before Buying: Plan purchases, research products, and consider reputation of sellers.
B)While Buying: Shop around, compare prices and quality, and keep purchase documents.
C) After Buying: Follow instructions, keep records, and report faults promptly.
Avoid tampering with products and use them as intended.
Additionally, Pay on time, fulfill agreements, and be mindful of sustainable practices.
Reduce waste, reuse, and recycle.
Lastly, consumers should be responsible, informed, and proactive in exercising their rights.