Consumer Protection (B.

Com Semester 2) – Detailed Explanation with Act &

Sections

Consumer protection refers to the rights and safeguards provided to consumers to ensure they
are not exploited by businesses or sellers. The Consumer Protection Act, 2019 is the
primary legislation in India that protects consumers against unfair trade practices, defective
goods, and deficient services.

1. Consumer Protection Act, 2019

The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986. It came
into effect on July 20, 2020, and introduced several new provisions, including e-commerce
regulations, product liability, and the Central Consumer Protection Authority (CCPA).

2. Key Definitions Under the Act

(i) Consumer (Section 2(7))

A consumer is a person who:

 Buys goods or avails services for personal use.

 Does not include someone who purchases goods for resale or commercial purposes.
 Includes online transactions and teleshopping.

(ii) Rights of Consumers (Section 2(9))

The Act provides six fundamental consumer rights:

1. Right to Safety – Protection from hazardous goods and services.

2. Right to Information – Consumers must be informed about product quality, price,
and risks.
3. Right to Choose – Freedom to select from a variety of goods/services.
4. Right to be Heard – Consumers can file complaints regarding unfair trade practices.
5. Right to Redressal – Legal remedies for grievances.
6. Right to Consumer Education – Awareness about consumer rights and laws.

3. Consumer Protection Councils (Sections 3-7)

Consumer Protection Councils exist at three levels to promote and protect consumer rights:

1. Central Consumer Protection Council (Section 3)

o Established by the Central Government.
o Headed by the Union Minister of Consumer Affairs.
o Provides recommendations on consumer welfare.
 2. State Consumer Protection Council (Section 6)
o Established by State Governments.
o Headed by the Minister-in-Charge of Consumer Affairs.
3. District Consumer Protection Council (Section 8)
o Established in each district.
o Headed by the District Collector.

4. Consumer Disputes Redressal Mechanism (Sections 28-

47)
The Act provides for a three-tier dispute resolution mechanism:

(i) District Consumer Disputes Redressal Commission (Section 28)

 Cases up to ₹1 crore.
 Appeals go to the State Commission.

(ii) State Consumer Disputes Redressal Commission (Section 42)

 Cases between ₹1 crore and ₹10 crores.

 Appeals go to the National Commission.

(iii) National Consumer Disputes Redressal Commission (NCDRC) (Section

53)

 Cases above ₹10 crores.

 Appeals go to the Supreme Court.

5. Unfair Trade Practices (Section 2(47))

Unfair trade practices include:

 False advertising.
 Selling defective or substandard goods.
 Charging higher prices than displayed.
 Hoarding essential goods.

6. Product Liability (Sections 82-87)

Product manufacturers, sellers, and service providers are responsible for any harm caused
due to defective products.
Liabilities include:

 Manufacturer’s Liability (Section 83) – Defective products causing harm.

 Service Provider’s Liability (Section 84) – Deficient or negligent services.
 Seller’s Liability (Section 85) – Selling defective products knowingly.

7. Central Consumer Protection Authority (CCPA)

(Sections 10-27)
 Established under the 2019 Act.
 Regulates matters relating to false advertising, misleading claims, and unfair trade
practices.
 Can impose penalties and ban misleading advertisements.

8. E-Commerce Regulations (Section 94)

 E-commerce platforms must provide transparent pricing.
 No unfair cancellation policies.
 Mandatory refunds in case of defective goods.

Conclusion
The Consumer Protection Act, 2019 ensures consumer rights and provides a legal
framework for grievance redressal. It strengthens consumer protection, especially in e-
commerce and digital transactions, making it more relevant for modern consumers.

Would you like more details on any specific section? 😊

Consumer protection refers to the legal framework designed to safeguard consumer rights,
ensuring fair trade practices, safety, and grievance redressal. The Consumer Protection Act,
2019 is the primary law governing consumer rights in India, replacing the Consumer
Protection Act, 1986. It came into effect on July 20, 2020, introducing new provisions like
product liability, e-commerce regulations, and the Central Consumer Protection
Authority (CCPA).

This guide provides a detailed explanation of consumer protection, including key

provisions, rights, authorities, redressal mechanisms, and liabilities under the Act.
1. Consumer Protection Act, 2019
The Consumer Protection Act, 2019 was introduced to address modern consumer
challenges, including misleading advertisements, online fraud, and unfair business practices.

Objectives of the Act:

 Protect consumer rights.

 Establish a simplified dispute resolution mechanism.
 Introduce penalties for misleading advertisements.
 Regulate e-commerce platforms and digital transactions.
 Enhance product liability provisions to hold manufacturers accountable.

2. Key Definitions Under the Act

(i) Consumer (Section 2(7))

A consumer is any person who:

✔ Buys goods or avails services for personal use.
✔ Includes online transactions, teleshopping, and direct selling.
✖ Does not include purchases for resale or commercial purposes.

(ii) Rights of Consumers (Section 2(9))

The Act grants six fundamental rights to consumers:

1. Right to Safety: Protection from hazardous goods and services (e.g., faulty electrical
appliances).
2. Right to Information: Consumers must be informed about quality, price, and risks
before purchasing.
3. Right to Choose: Freedom to select products/services from multiple options.
4. Right to be Heard: Consumers have the right to voice complaints about unfair trade
practices.
5. Right to Redressal: Legal remedies for defective goods, deficient services, or
unfair practices.
6. Right to Consumer Education: Awareness programs to educate consumers about
their rights and responsibilities.

3. Consumer Protection Councils (Sections 3-7)

The Consumer Protection Councils promote consumer awareness and welfare at the
national, state, and district levels.

(i) Central Consumer Protection Council (Section 3)

  Established by the Central Government.
 Headed by the Union Minister of Consumer Affairs.
 Advises on policies for consumer protection.

(ii) State Consumer Protection Council (Section 6)

 Formed by the State Governments.

 Led by the Minister-in-Charge of Consumer Affairs.
 Ensures consumer welfare at the state level.

(iii) District Consumer Protection Council (Section 8)

 Established in each district.

 Led by the District Collector.
 Deals with local consumer issues.

4. Consumer Disputes Redressal Mechanism (Sections 28-

47)
The Act provides a three-tier redressal system to resolve consumer disputes effectively.

(i) District Consumer Disputes Redressal Commission (Section 28)

 Handles cases involving claims up to ₹1 crore.

 Appeals can be made to the State Commission.

(ii) State Consumer Disputes Redressal Commission (Section 42)

 Handles cases with claims between ₹1 crore and ₹10 crores.

 Appeals can be made to the National Commission.

(iii) National Consumer Disputes Redressal Commission (NCDRC) (Section

53)

 Deals with cases exceeding ₹10 crores.

 Appeals go to the Supreme Court of India.

5. Unfair Trade Practices (Section 2(47))

Unfair trade practices refer to deceptive, misleading, or unethical business practices that
harm consumers. Examples include:

✅ False advertising – Misleading claims about a product.

✅ Selling defective goods/services – Hiding product defects.
✅ Black marketing – Hoarding goods to increase prices.
✅ Fake discounts – Inflating prices before offering discounts.

Penalty for Unfair Trade Practices:

 CCPA can impose fines and bans on misleading advertisements.

 Businesses can be ordered to compensate consumers.

6. Product Liability (Sections 82-87)

The product liability clause holds manufacturers, sellers, and service providers responsible
for harm caused due to defective products.

(i) Manufacturer’s Liability (Section 83)

 If a product is defective and causes injury, the manufacturer is liable even without
proving negligence.

(ii) Service Provider’s Liability (Section 84)

 If a service provider is negligent (e.g., a hospital providing incorrect treatment), they

can be held accountable.

(iii) Seller’s Liability (Section 85)

 A seller is liable if they knowingly sell a defective product.

7. Central Consumer Protection Authority (CCPA)

(Sections 10-27)
The Central Consumer Protection Authority (CCPA) is a regulatory body created under
the 2019 Act to address consumer grievances.

Powers of CCPA:

✔ Investigate complaints.
✔ Ban misleading advertisements.
✔ Impose penalties on businesses violating consumer rights.
✔ Order recalls of defective products.

8. E-Commerce Regulations (Section 94)

With the rise of online shopping, the Act includes provisions for e-commerce platforms to
ensure transparency and fairness.

Key Regulations:

 No false pricing: Prices must be clear and non-deceptive.

 Return and refund policies: Consumers should have the right to return defective
goods.
 Data protection: Consumer data should not be misused.

E-commerce platforms must also resolve disputes quickly and provide customer support
services.

9. How to File a Consumer Complaint?

Consumers can file complaints:

 Online via the National Consumer Helpline (https://consumerhelpline.gov.in/)

 At Consumer Disputes Redressal Commissions (District, State, or National levels)
 Through consumer courts or forums

Required Documents for Filing a Complaint:

✔ Purchase receipt or bill
✔ Copy of communication with the seller
✔ Complaint letter with product/service details

10. Penalties Under the Consumer Protection Act, 2019

The Act imposes strict penalties for violations:

Violation Penalty
₹10 lakh fine & 2 years imprisonment (₹50 lakh & 5 years
False advertising
for repeat offense)
Misleading claims ₹10 lakh fine
Selling unsafe goods/services ₹1 lakh fine per product/service
Non-compliance with CCPA
₹20 lakh fine & 6 months imprisonment
orders

Conclusion
The Consumer Protection Act, 2019 is a comprehensive law that protects consumers from
unfair trade practices, defective goods, and misleading advertisements. It establishes a
strong redressal mechanism and regulates modern consumer challenges like e-commerce
transactions and digital fraud.

Key Takeaways:
✔ Consumers have legal rights and protections under the Act.
✔ A three-tier dispute resolution system ensures quick grievance redressal.
✔ The CCPA can ban deceptive practices and impose penalties.
✔ Product liability laws hold manufacturers accountable for defective goods.

Would you like case studies or real-life examples to understand this better? 😊