Consumer Rights in India: A Comprehensive Report

1 Introduction
Consumer rights in India represent a set of legal protections designed to
safeguard individuals who purchase goods and services in the marketplace.
These rights, primarily enshrined in the Consumer Protection Act, aim to
protect consumers from unfair trade practices, defective products, and
exploitation. In a diverse and rapidly growing economy like India, where
markets are increasingly digital, consumer rights play a pivotal role in ensuring
accountability, promoting trust, and maintaining quality standards. This report,
drawing from authoritative sources such as the National Council of
Educational Research and Training (NCERT) and the Government of India,
provides a detailed exploration of consumer rights, their legal framework,
enforcement mechanisms, and their significance in empowering consumers.

2 Historical Background
The consumer movement in India emerged in the 1960s, driven by
widespread issues such as food shortages, hoarding, black marketing, and
adulteration. These challenges highlighted the need for a structured
framework to protect consumer interests. The enactment of the Consumer
Protection Act in 1986 marked a significant milestone, establishing a legal
mechanism for consumers to address grievances. According to NCERT’s
Class 10 Economics textbook, this movement was a response to unethical
practices that exploited consumers, particularly in rural areas. Over time, the
consumer movement grew, with over 2,000 consumer groups now active in
India, of which 50–60 are well-organized, advocating for consumer welfare.
The passage of the Consumer Protection Act, 2019, further strengthened
these protections to address modern market dynamics, including the rise of
e-commerce.

3 The Consumer Protection Act

The Consumer Protection Act is the cornerstone of consumer rights in India.
Initially enacted in 1986, it was replaced by the Consumer Protection Act,
2019, which came into effect on July 20, 2020, with certain provisions effective
from July 24, 2020. The 2019 Act introduced significant changes to address
contemporary challenges, particularly in digital markets. Key provisions
include:
• Definition of Consumer: Expanded to include those purchasing goods or
services online, covering e-commerce, teleshopping, and direct selling.
• Central Consumer Protection Authority (CCPA): Established to promote,
protect, and enforce consumer rights, with powers to investigate violations,
recall products, and impose penalties.
• Product Liability: Manufacturers and service providers can be held liable for
defective products or deficient services.
• E-commerce Regulations: Specific rules ensure transparency and fairness
in online transactions.
• Mediation: Introduced as an alternative dispute resolution mechanism to
expedite grievance redressal.
• Enhanced Penalties: Stricter measures for misleading advertisements and
unfair trade practices.

The 2019 Act reflects India’s adaptation to a digital economy, providing

consumers with greater power and transparency

4 Six Consumer Rights The Consumer Protection Act, 2019, guarantees six
fundamental consumer rights, as outlined by the Department of Consumer
Affairs. Each right is designed to empower consumers and ensure fair
treatment in the marketplace.

4.1 Right to Safety This right protects consumers against goods and services
hazardous to life and property. It is critical in sectors like pharmaceuticals,
automobiles, and food processing, where substandard products can cause
harm. Consumers are encouraged to purchase quality marked products, such
as those certified with ISI or AGMARK, to ensure safety. For example,
electrical appliances must meet safety standards set by the Bureau of Indian
Standards (BIS).

4.2 Right to be Informed Consumers have the right to access information

about the quality, quantity, potency, purity, standard, and price of goods or
services. This right helps consumers make informed decisions and protects
against unfair trade practices. For instance, packaged food products must
display nutritional information and expiry dates to comply with this right.

4.3 Right to Choose This right ensures access to a variety of goods and
services at competitive prices. In monopolistic markets, it guarantees
satisfactory quality and service at fair prices. For example, consumers should
have options when purchasing mobile phones, with clear pricing and quality
information

4.4 Right to be Heard Consumers’ interests must be considered at appropriate

forums, and they have the right to representation in consumer welfare
committees. Non-political, non-commercial consumer organizations can
advocate for consumer issues, ensuring their voices are heard in
policymaking.

4.5 Right to Seek Redressal This right allows consumers to seek remedies for
unfair trade practices or exploitation. The three-tier Consumer Disputes
Redressal Commissions (District, State, and National) facilitate this process.
Even small grievances can have significant societal impact, and consumers
can seek assistance from consumer organizations.

4.6 Right to Consumer Education Consumers have the right to acquire

knowledge and skills to make informed choices throughout their lives. This
right addresses exploitation due to ignorance, particularly among rural
consumers, by promoting awareness of their rights and responsibilities.
5.Importance of Consumer Rights

Many people complain that they receive contaminated or substandard

products, goods or services for which they pay the entire price. Such products

can cause harm to the health of consumers. Thus, consumer protection is a

priority for the government. The government has recognised certain consumer

rights to protect their interests.

The Act gives certain consumer rights to the people to ensure that the

manufacturers or sellers do not cheat them and that the consumers are

protected against fraud or exploitation. Consumers must take precautions to

buy the correct goods at the right price and know how to avoid loss or injury.

Along with having consumer rights, it is also essential to know them to enforce

them and get the appropriate remedy/compensation.

Under the Act, consumers can register complaints and be compensated for

receiving contaminated or substandard products. It encourages and protects

people to speak up about defects and inadequacies in services and products.

It protects consumers when traders, manufacturers and sellers engage in illicit

trade

5.1Consumer Responsibilities

Consumers have responsibilities towards other consumers and society

members and help them fight against unfair trade practices and create

awareness regarding consumer rights. Government and non-government

organisations have made various efforts to protect the interest of consumers.

These efforts will be helpful and can stop the exploitation of consumers only

when they understand their responsibilities and take actions to safeguard their

interests.

5.1.1Responsibility to be Aware

Consumers must be mindful of the safety and quality of products and services

before purchasing them. They should not trust the seller blindly and must get

the information on the price, quality, standard, etc., of the product.

5.1.2Responsibility to Speak Out

Consumers should express their grievances and file complaints against

contaminated or substandard products even when the loss is small. When

consumers do not speak out against the loss they suffered and do not file a

complaint, it encourages businessmen to practise unfair trade practices and

supply defective goods

6.Consumer Courts

The Consumer Protection Act, 2019, provides for establishing Consumer

Disputes Redressal Commissions (known as consumer courts or consumer

forums) to protect and enforce consumer rights. The Act provides for

establishing redressal agencies at the district, state and national levels for

quick redressal against consumer complaints.

The District Consumer Disputes Redressal Commission or district commission

deals with complaints where the value of goods or services are below Rs.1

crore. The state commission deals with appeals from the orders passed by the

district commission and complaints where the value of goods or services is

above Rs.1 crore but below Rs.10 crore. The national commission entertains

complaints where the value of goods and services exceeds Rs.10 crore.
When a complaint is filed in the district commission, the commission will give

a chance of hearing to consumers and sellers/manufacturers/companies,

collect evidence from them and pass an order/judgement. The consumer

redressal commissions can grant the following compensation to consumers

when there is a defect in goods:

●​ Repair the goods free of cost

●​ Correct deficiencies in the product

●​ Replace the product with a similar or superior product

●​ Issue a refund of the price

●​ Pay compensation (money) for costs, damages or inconveniences

●​ Withdraw the sale of the products or goods altogether

●​ Discontinue or not repeat unfair trade practice/restrictive trade

practice

●​ Issue correct advertisement in place of the earlier misrepresented

advertisement

The government has taken various measures to increase consumer

awareness so that consumers can enforce their rights. The Consumer

Protection Act gives certain rights to consumers, which protects them from

unfair trade practices and losses suffered due to the sale of adulterated,

substandard or defective goods. The consumers must enforce their rights and

take responsibility for filing complaints against the manufacturers or sellers to

prevent them from cheating the public.

7.Recent Developments

The Consumer Protection Act, 2019, introduced several advancements to

address modern market challenges:

• Central Consumer Protection Authority (CCPA): Established on July 24,

2020, the CCPA regulates violations, unfair trade practices, and misleading

advertisements. It can take suo-moto actions, recall products, and file

class-action suits.

• E-commerce Regulations: The Consumer Protection (E-commerce) Rules,

2020, outline responsibilities for e-commerce entities, ensuring transparency

and grievance redressal.

• Product Liability: Manufacturers and service providers are liable for

defective products or services, enhancing consumer protection.

• Mediation: Mediation centers facilitate faster dispute resolution, reducing the

burden on consumer courts

These changes reflect India’s commitment to adapting consumer protection to

the digital age, as highlighted by the PRS India

8.Consumer Awareness and Education

Consumer awareness is critical for the effective exercise of rights. The

Department of Consumer Affairs runs initiatives like Jago Grahak Jago

(https://jagograhakjago.com), promoting consumer education through

campaigns and the National Consumer Helpline (NCH). The NCH, accessible

via toll-free numbers (1800-11-4000 or 1915), handles thousands of

complaints monthly, with over 5,23,837 e-commerce-related complaints

registered between 2017 and 2021. Non-governmental organizations, such as

CUTS International (https://cuts-international.org), also play a vital role in

publishing awareness materials and advocating for consumer rights. National

Consumers’ Day, observed on December 24, commemorates the 1986 Act’s

enactment and reinforces the importance of consumer education.

9.Conclusion

Consumer rights in India have evolved significantly, from the consumer

movement of the 1960s to the robust framework of the Consumer Protection

Act, 2019. The six fundamental rights empower consumers to demand safety,

information, choice, representation, redressal, and education. The

establishment of the CCPA, e-commerce regulations, and a three-tier

redressal system reflect India’s commitment to consumer protection in a digital

era. Landmark cases and ongoing awareness campaigns further strengthen

this framework. As markets continue to evolve, consumer education remains

essential to ensure that individuals can exercise their rights effectively,

fostering a fair and transparent marketplace.