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Unit 6_ Consumer Protection Act Study Guide

The Consumer Protection Act (CPA) in India, first enacted in 1986 and updated in 2019, aims to protect consumer rights and provide mechanisms for grievance redressal, adapting to modern challenges such as digital transactions. The 2019 update expands the definition of consumers, introduces the Central Consumer Protection Authority (CCPA), and enhances the grievance redressal system. Key features include a three-tier system for complaints, consumer rights such as safety and information, and provisions for product liability.

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5 views5 pages

Unit 6_ Consumer Protection Act Study Guide

The Consumer Protection Act (CPA) in India, first enacted in 1986 and updated in 2019, aims to protect consumer rights and provide mechanisms for grievance redressal, adapting to modern challenges such as digital transactions. The 2019 update expands the definition of consumers, introduces the Central Consumer Protection Authority (CCPA), and enhances the grievance redressal system. Key features include a three-tier system for complaints, consumer rights such as safety and information, and provisions for product liability.

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Unit 6: Consumer Protection Act Study Guide

Detailed Summary

The Consumer Protection Act (CPA) in India is designed to safeguard consumer interests by
protecting their rights and providing mechanisms for grievance redressal. First enacted in 1986 and
updated in 2019, the Act addresses consumer exploitation and adapts to modern challenges,
including digital transactions.

Consumer Protection Act, 1986

Purpose: Enacted to protect consumers from unfair trade practices and provide speedy
redressal.
Definition of Consumer: A person who buys goods or services for personal use, not for
resale or commercial purposes, including users with the buyer’s consent.
Rights: Safety, information, choice, be heard, seek redressal, consumer education, basic
needs, healthy environment.
Three-Tier System: District Forum (up to INR 20 lakh), State Commission (INR 20 lakh to 1
crore), National Commission (above INR 1 crore).
Features: Applies to all sectors, establishes consumer councils, and imposes strict liability on
manufacturers and service providers.

Consumer Protection Act, 2019

Updates: Expands consumer definition to include online transactions, introduces Central


Consumer Protection Authority (CCPA), and product liability.
Jurisdiction: District Forum (up to INR 1 crore), State Commission (INR 1 crore to 10 crore),
National Commission (above INR 10 crore).
Enhancements: E-filing, mediation, stricter penalties for misleading ads, and protection in e-
commerce.

Short Answer Questions (4 Marks Each)

1. Define a consumer under the Consumer Protection Act.


A consumer is any person who buys goods or hires services for personal use, not for resale or
commercial purposes, including users with the buyer’s consent.

2. What is the main objective of the Consumer Protection Act?

To protect consumers from abuse and ensure better quality of products and services through
grievance redressal.

3. List four consumer rights under the 1986 Act.

Right to safety, information, choice, and be heard.

4. What is the role of the CCPA under the 2019 Act?

To enforce consumer rights, investigate violations, and regulate unfair trade practices.

5. What is product liability in the 2019 Act?

It holds manufacturers, service providers, and sellers liable for defective products or deficient
services.

6. Name the three tiers of the grievance redressal system.

District Forum, State Commission, National Commission.

7. How does the 2019 Act address e-commerce?

It includes online transactions in the consumer definition and allows e-filing of complaints.

8. What is the pecuniary jurisdiction of the State Commission under the 2019 Act?

INR 1 crore to 10 crore.


9. What are unfair trade practices?

Practices like misleading ads, adulteration, and sharing personal information without consent.

10. Why is consumer awareness important?

It empowers consumers to know their rights and seek redressal against exploitation.

Long Answer Questions (8 Marks Each)

1. Explain the evolution from the 1986 Act to the 2019 Act.

1986 Act established basic consumer rights and a three-tier redressal system.
2019 Act expanded consumer definition to include online buyers, introduced CCPA, product
liability, e-filing, and mediation.
Addresses digital age challenges like e-commerce and misleading ads.

2. Describe the three-tier redressal system under the 2019 Act.

District Forum: Up to INR 1 crore, headed by a District Judge.


State Commission: INR 1 crore to 10 crore, headed by a High Court Judge.
National Commission: Above INR 10 crore, headed by a Supreme Court Judge.
Appeals escalate from District to State, then National, and finally Supreme Court.

3. Discuss the role of consumer organizations in consumer protection.

Educate consumers about rights and responsibilities.


File complaints on behalf of consumers (e.g., CERC, CUTS).
Test products and spread awareness through publications.

4. Analyze the importance of consumer protection from the consumer’s and businessman’s
perspectives.

Consumer: Protection from exploitation, awareness of rights, and redressal options.


Businessman: Encourages social responsibility, avoids government intervention, and ensures
survival by satisfying consumers.

5. Explain the process of filing a complaint under the Act.

Who: Consumer, organizations, or government.


Where: Based on value—District, State, or National Forum.
When: Within 3 months of purchase, or 5 months if testing is needed.
How: Written or e-filed, followed by hearings and remedies.

Case Studies (8 Marks Each)

1. A consumer buys a defective refrigerator online and seeks a refund.

The consumer can e-file a complaint with the District Forum under the 2019 Act, seeking refund or
replacement due to product liability.

2. A company sells adulterated food products.

The CCPA can investigate, impose penalties, and order withdrawal of hazardous goods under the
2019 Act.

3. A consumer is overcharged beyond the MRP.

The consumer can file a complaint with the District Forum for refund and compensation, citing unfair
trade practices.

4. A misleading ad influences a consumer to buy a substandard product.

The consumer can seek redressal, and the CCPA may fine the manufacturer and endorser under the
2019 Act.

5. A service provider fails to deliver promised quality.


The consumer can file a complaint for deficiency in service, seeking compensation or service
correction.

Revision Notes

Key Points:

1986 Act: Protects consumer rights, establishes three-tier system.


2019 Act: Adds CCPA, product liability, e-commerce provisions.
Rights: Safety, information, choice, redressal, education.
Redressal: District (INR 1 crore), State (INR 10 crore), National (above INR 10 crore).
Consumer Role: Be cautious, aware, and proactive in filing complaints.

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