Consumer Protection Act,

2019
Why Consumer Protection is Importance?
• Caveat Emptor – ‘Let the buyer beware’
• The principle that the buyer alone is responsible for checking the
quality and suitability of goods before a purchase is made.

• Tremendous growth and increase in production of goods and

commodities leads to decline in quality.
• Modern technology and mass-marketing technology with high-
pressure salesmanship and sharp advertising can confuse the
consumer.
• Because of consumer’s poverty, illiteracy and lack of awareness
the manufacturers and suppliers of the goods and services
generally exploit the consumers by adopting unfair and
restrictive trade practices.
• Protection of consumers is necessary because an average
consumer is less informed and less powerful than the seller.
Historical Background Of Consumer Protection in India
Ancient Period:
• Chanakya’s Arthasastra, Manu Smriti, Narada Smriti
• Strict rules to regulate weights and measures, penalty - who indulged in adulteration of goods,
prohibition of unfair trade and black-marketing - to safeguard the interests of the consumer

British Period:
• The Indian Contract Act, 1872
• The Sale of Goods Act, 1930
• Indian Partnership Act, 1932
• The Agricultural Produce(Grading and Marketing) Act, 1937
• The Drugs Act, 1940
• The Drugs and Cosmetic Act, 1940

Post Constitution Period

• The Prevention of Food Adulteration Act, 1954
• The Essential Commodities Act, 1955
• The Monopolistic Restrictive And Unfair Trade Practices Act, 1969
• The Standard of Weights And Measures Act, 1976
• The Bureau of Indian Standards Act, 1986
• The Consumer Protection Act, 1986
• The Trade Marks Act, 1999
Consumer Protection Act, 1986
• Object of the act - to protect the interests of the
consumers and the establishment of consumer
councils and other authorities
• act shall apply to all goods and services
• consumer’s rights: right to safety, right to be
informed, right to choose, right to be heard, right to
redress, right to consumer education.
• Consumer Protection Council –Central, State,
District
• 3 Consumer Disputes Redressal Agencies – District
Forum, State Commission and National Commission
• easy, inexpensive and speedy consumers disputes
redressal mechanism
 Salient Provisions of the Consumer Protection Act, 2019
1. New definition of consumer:
• The new Act has widened the definition of ‘consumer’.
• Definition of consumer:
• As per the Act, a person is called a consumer who avails the services and buys
any good for self-use. Worth to mention that if a person buys any good or avails
any service for resale or commercial purposes, he/she is not considered a
consumer. This definition covers all types of transactions i.e. offline and online
through teleshopping, direct selling or multi-level marketing.
2. Central Consumer Protection Authority:
• The Act proposes the establishment of the Central Consumer Protection
Authority (CCPA) as a regulatory authority.
• The CCPA will protect, promote and enforce the rights of consumers and regulate
cases related to unfair trade practices, misleading advertisements, and violation
of consumer rights.
• CCPA would be given wide-ranging powers.
– The CCPA will have the right to take suo-moto actions, recall products, order
reimbursement of the price of goods/services, cancel licenses, impose penalties and file
class-action suits.
– The CCPA will have an investigation wing to conduct independent inquiry or
investigation into consumer law violations.
3. Consumer Disputes Redressal Commission:
• The Act has the provision of the establishment of Consumer
Disputes Redressal Commissions (CDRCs) at the national,
state and district levels to entertain consumer complaints.
• As per the notified rules, the State Commissions will furnish
information to the Central Government on a quarterly basis
on vacancies, disposal, the pendency of cases and other
matters.
• The CDRCs will entertain complaints related to:
– Overcharging or deceptive charging
– Unfair or restrictive trade practices
– Sale of hazardous goods and services which may be hazardous to
life.
– Sale of defective goods or services
• As per the Consumer Disputes Redressal Commission Rules,
there will be no fee for filing cases up to Rs. 5 lakh.
4. Enhancement of Pecuniary Jurisdiction
• The district commission can now entertain those
consumer complaints where the value of goods
or services paid does not exceed Rs. 1crore.
• The State Commission can entertain disputes
where such value is more than Rs.1Crore & less
than 10 crore.
• The National Commission can exercise
jurisdiction where the value exceeds Rs. 10
Crore.
5. E-Filing of Complaints:
• The new Act provides flexibility to the consumer to
file complaints with the jurisdictional consumer
forum located at the place of residence or work of the
consumer. This is unlike the earlier condition where
the consumer had to file a complaint at the place of
purchase or where the seller has its registered office
address.
• The new Act also contains enabling provisions for
consumers to file complaints electronically and for
hearing and/or examining parties through video-
conferencing.
• Consumers will also not need to hire a lawyer to
represent their cases.
6. Product Liability & Penal Consequences:
• The Act has introduced the concept of product
liability.
– A manufacturer or product service provider or
product seller will now be responsible to compensate
for injury or damage caused by defective products or
deficiency in services.
• This provision brings within its scope, the
product manufacturer, product service provider
and product seller, for any claim for
compensation. The term ‘product seller’ would
also include e-commerce platforms.
7. Penalties for Misleading Advertisement:
• The CCPA may impose a penalty on a manufacturer or an
endorser, for a false or misleading advertisement. The CCPA
may also sentence them to imprisonment.
8. Provision for Alternate Dispute Resolution:
• The new Act provides for mediation as an Alternate Dispute
Resolution mechanism. For mediation, there will be a strict
timeline fixed in the rules.
• As per the recently notified rules, a complaint will be referred
by a Consumer Commission for mediation, wherever scope
for early settlement exists and parties agree for it.
• The mediation will be held in the Mediation Cells to be
established under the aegis of the Consumer Commissions.
• There will be no appeal against settlement through mediation.
9. Unfair Trade Practices:
• The new Act has armed the authorities to take action against unfair trade
practices too.
• The Act introduces a broad definition of Unfair Trade Practices, which
also includes the sharing of personal information given by the consumer
in confidence unless such disclosure is made in accordance with the
provisions of any other law.
10. The Central Consumer Protection Council:
• The Consumer Protection Act empowers the Central Government to
establish a Central Consumer Protection Council. It will act as an
advisory body on consumer issues.
– As per the notified Central Consumer Protection Council Rules, the Central
Consumer Protection Council would be headed by the Union Minister of
Consumer Affairs, Food and Public Distribution with the Minister of State as
Vice Chairperson and 34 other members from different fields.
– The Council, which has a three-year tenure, will have a Minister-in-charge of
consumer affairs from two States from each region – North, South, East, West,
and NER. There is also a provision for having working groups from amongst the
members for specific tasks.
11. Applicability:
• This Act is applicable to all the products and services, until or unless
any product or service is especially debarred out of the scope of this
Act by the Central Government.
12. 6 rights of consumers:
• The act offers 6 rights to the consumers:
• Be protected against the marketing of goods, products or services
which are hazardous to life and property;
• be informed about the quality, quantity, potency, purity, standard and
price of goods, products or services;
• be assured, wherever possible, access to a variety of goods, products
or services at competitive prices;
• be heard and to be assured that consumers' interests will receive due
consideration at appropriate fora;
• seek redressal against unfair trade practice or restrictive trade
practices or unscrupulous exploitation of consumers;
• Right to consumer education.
Objectives of the act
• An Act to provide for protection of the interests of consumers and for the said
purpose, to establish authorities for timely and effective administration and
settlement of consumers' disputes and for matters connected therewith or
incidental thereto.
Definitions
advertisement
Section 2(1) “advertisement” means any audio or visual publicity, representation,
endorsement or pronouncement made by means of light, sound, smoke, gas, print,
electronic media, internet or website and includes any notice, circular, label,
wrapper, invoice or such other documents.

appropriate laboratory
• Section 2 (2) “appropriate laboratory” means a laboratory or organisation—
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to such guidelines as may be
prescribed by the Central Government in this behalf; or
(iii) any such laboratory or organisation established by or under any law for the time
being in force, which is maintained, financed or aided by the Central Government or
a State Government
--for carrying out analysis or test of any goods with a view to determining whether
complainant
Section 2(5) “complainant” means—
(i) a consumer; or
(ii) any voluntary consumer association registered under
any other law for the time being in force; or
(iii) the Central Government or any State Government;
(iv) the Central Authority;
(v) one or more consumers, where there are numerous
consumers having the same interest;
vi) in case of death of a consumer, his legal heir or
representative;
(vii) in case of a consumer being a minor, his parent or
legal guardian;
 complaint
• 2(6) "complaint" means any allegation in writing, made by a
complainant for obtaining any relief provided by or under this Act, that
—
• (i) an unfair contract or unfair trade practice or a restrictive trade
practice has been adopted by any trader or service provider;
• (ii) the goods bought by him or agreed to be bought by him suffer from
one or more defects;
• (iii) the services hired or availed of or agreed to be hired or availed of
by him suffer from any deficiency;
• (iv) a trader or a service provider, as the case may be, has charged for the
goods or for the services mentioned in the complaint, a price in excess of
the price—
• (a) fixed by or under any law for the time being in force; or
• (b) displayed on the goods or any package containing such goods; or
• (c) displayed on the price list exhibited by him by or under any law for
the time being in force; or
• (v) the goods, which are hazardous to life and safety when
used, are being offered for sale to the public—
• (a) in contravention of standards relating to safety of such
goods as required to be complied with, by or under any
law for the time being in force;
• (b) where the trader knows that the goods so offered are
unsafe to the public;
• (vi) the services which are hazardous or likely to be
hazardous to life and safety of the public when used, are
being offered by a person who provides any service and
who knows it to be injurious to life and safety;
• (vii) a claim for product liability action lies against the
product manufacturer, product seller or product service
provider, as the case may be;
• complaint is a written accusation containing
the name, description of the complainant and the
opposite party.
• to seek relief by furnishing the facts supporting
the documents.
• It is against unfair or restrictive trade practices,
• Defective goods, deficiency in services, excess
prices
• hazardous goods.
• The consumer courts do not have suo motu
power to initiate the proceedings.
consumer
Section 2(7)
• A person who buy goods for a consideration which has been paid or promised
or partly paid or party promised.
• A person who uses such goods with permission of the buyer – other than who
buys such goods.
• A person who, hires or avails of any services for consideration – which has
been paid or promised or party paid or party promised.
• A person who is a beneficiary of such services with the approval of the
buyer.
• the expressions "buys any goods" and "hires or avails any services" includes
offline or online transactions through electronic means or by teleshopping
or direct selling or multi-level marketing.
• Exceptions:
• Obtain goods for commercial purposes – a person who obtain goods for
resale or for any commercial purpose.
• Services free of charge – in respect of services rendered free of charge.

• The primacy purpose to define the term ‘consumer’ is to restrict availability of

remedies to consumers only and not to others.
Vasundhara and Blue Star v. B.K. Goyal
• A water cooler was purchased and installed at a bus-stand for
the use of general public free of charge, such transaction was
found to be a consumer sale.
S.Gurdappa Shetty v. Salar Jang Sugar Mills
• Seller of goods is not a consumer.
Assien Computers Ltd. v. Tagor Gratious
• The computer purchased for the preparation and completion of
research project for the award of Ph.D – is not for commercial
purpose and the complainant is a consumer.
Divisional Manager LIC v. Uma Devi
• In a case of death of life insurance policy holder, the nominee
of an insurance policy should be covered under the term
‘consumer’, because such person to be beneficiary of the
services hired by the policy holder and is entitled to the service
with the approval of the hirer.
Subodh Kapoor v. R.R.Sharma
• If payment of royalty to the author by the publisher is delayed, then
such royalty is liable to be paid with interest and the author is
covered under the term ‘consumer.’
Lucknow Development Authority v. M.K. Gupta
• The service being provided by the Housing Development Authority
to the purchaser covered under the act. Thus the purchaser is
consumer.
Chandigarh Housing Board v. Avtar Singh
• The Consumer Forum have jurisdiction even in cases of services
rendered by statutory and public authorities.
• If the authorities causes any loss, damage- the consumer forums
would have statutory obligation to award compensation.
Ram Narayan Parameshwaraiyer v. Larsen and Tourbo Ltd.
• A purchaser of share or debentures for the purpose of resale should
not be covered under the term consumer, because such transaction
is for a commercial purpose.
Skipper Towers Pvt. Ltd. v. A.P. Gupta
• If a property dealer as a middle man is involved or selling the
property and the motive behind it is to earn profit.
• Complaint filed by such person cannot be a complainant and
consumer, because such dealing is for a commercial purpose.
Indian Oil Corp. v. Consumer Protection Council, Kerala
• Unauthorized user of LPG cylinder is not a consumer.
D.V. Lakshminarayana v. Divisional Elec. Engg.
• The term ‘consumer’ also includes any person who uses the
goods with the permission of the buyer though he is not himself
a buyer.
National Seeds Corp. Ltd. v. M. Mudhusudhan Reddy
• A government Co. sold substandard and defective seeds to
farmers which caused loss to farmers.
• It was held that the farmers were covered under the definition
defect
Section 2(10) “defect” means –any fault, imperfection or
shortcoming
- in the quality, quantity, potency, purity or
- standard which is required to be maintained by or under any
law for the time being in force or
- under any contract, express or implied, or
- as is claimed by the trader in any manner whatsoever in
relation to any goods;
P.A. Pooran v. McDowell
• If the goods has been purchased for commercial use – if any
defect found in that goods – complainant cannot be a consumer for
the purpose of removing that defect.
Voluntary Organisation in interest of Consumers Education and
others v. Maruti Udyog Ltd.
• Burden of proof lies on the complainant/purchaser regarding to
prove the defect in the goods.
S.L. Hens v. Raghomal Nahar Singh Pvt Ltd.
• There was a defect in the T.V set – the order was passed to
replace the T.V. set and to pay a compensation of Rs.2,500/-.
Gyanendra Kumar Mohante v. Kinetic Honda Motor Co. Ltd.
• The machine was found defective of the scooter purchased.
Because as per the claim, the consumption of petrol was
more.
• The national commission had held that the scooter should be
taken back and the value should be refunded if the scooter
does not run 40 KM in a litre of petrol.
Ideal Store v. L.S. Salita
• If the cement supplied is below standard than the standards
prescribed in the order of supply, such supply of cement
comes under the category of defect.
 service
"service" means service of any description which is
made available to potential users and
- includes, but not limited to, the provision of facilities
- in connection with banking, financing, insurance,
transport, processing, supply of electrical or other
energy, telecom, boarding or lodging or both, housing
construction, entertainment, amusement or the
purveying of news or other information,
- but does not include the rendering of any service free
of charge or under a contract of personal service;
Chandigarh Housing Board v. Avtar Singh
• services provided by statutory and public
authorities are comes under the definition of ‘service’
Definition of “deficiency” :Section 2(11)
• "deficiency" means any fault, imperfection,
shortcoming or inadequacy -
• -in the quality, nature and manner of performance
which is required to be maintained by or under any
law for the time being in force or has been
undertaken to be performed by a person in
pursuance of a contract or otherwise in relation to
any service and includes—
(i) any act of negligence or omission or commission
by such person which causes loss or injury to the
consumer; and
(ii) deliberate withholding of relevant information
by such person to the consumer.
 Deficiency in Service
Banking services
• Deficiency in payment of interest on overdraft.
• Defects in demand draft.
• Wrongful crediting of an amount.
• Delay in crediting amount.
• Improper maintenance of lockers.
• Passing of forged cheques.
• Refusing or holding back the amount that was due on fixed deposit after
maturity.
• Delay in the payment of amount on term deposits after maturity.
• Dishonor of cheques because of mistake or negligence by bank.
• Causing undue delay in discharging installments of loan
• Charging interest at higher rate than what has been specified in loan
agreement.
• Failure in returning securities even after the loan is repaid.
• Rude behavior of bank officials resulting in discomfort or mental agony to
customers
SBI v. N.Ravindran
• Dishonor of cheques/Bank drafts because of mistake or
negligence by bank – deficiency in service.
Bank of India v. Mukesh Kumar Shukla
• Payment against stop-payment instructions that would
amount to deficiency in its service.
K.T. Shivaiah v. Canara Bank
• Failure on the part of a bank to commute a specified
part of pensions to the credit of a customer is clearly a
deficiency in service.
United India Insurance Co. Ltd. v. Satrugan Sharma
• The bank’s failure to pay insurance premium on behalf
of a customer in-time has been held a deficiency in
service.
Dosen Chemicals Pvt. Ltd. v. United Bank of India
• Failure in returning securities/documents even after
the loan is repaid – amounts to deficiency in service.
Dr.Purushattam Nagar v. Zonal Manger, UCO Bank
• No bank can stop operation of an amount/account on
the basis of the instruction of another bank – it
amounts to deficiency in service.
Kamal Nagpal v. state bank of India
• not paying the full amount of the sanctioned loan or
an adequate and timely working capital is deficiency
in service.
Insurance service
United India Insurance Co. Ltd. v. Vijay Kumar Textiles;
National Insurance Co. Ltd. v. Lal Chand Jain and Sons;
Tanawala Synthetic Textile Ltd. v. Oriental Insurance Co.
Ltd.
• A long delay of on the part of an insurance company
without any valid reasons in deciding the claim of the
insured is a deficiency in service.
Ozma Shipping Company v. Oriental Insurance Co. Ltd.
• insurance company cannot be justified in assessing and
paying lower amount than the amount agreed in the policy.
National Insurance Co. Ltd. v. Nagendra Prasad Singh
• A delay beyond reasonable period of time has been
constitute deficiency in service.
Transport service:

Air travel: public and private airlines constitute 'service'

The deficiencies include –
• delay in flights attributed to negligence on part of airlines,
• Shortcoming in the supply of food on board,
• Departure before time,
• Cancellation of flight and non-refunding of ticket price
• Loss and damage of baggage etc.
Indian Airlines v. S.N.Sinha
• Any defect in the food supplied - a deficiency in service rendered by the airlines.
Station Manager, Indian Airlines v. B.B.Das
• The flight was delayed, treated as deficiency in service.
International Airport Authority of India v. Solidaire India Ltd.
• failure to maintain safe custody of consignments entrusted – a deficiency in
service
The Station Manager, Indian Airlines and Others v. Dr. Jiteswar Ahir
• negligence on the part of staff for safety of passengers- amounts to deficiency in
service.
Railway service
Deficiency of service in railway service includes :
• non-working fans,
• no water in the toilets,
• cancellation of confirmed reservation to accommodate VIPs,
• loss of luggage of passengers in reserved compartments,
• inadequate safety and security measures by the railways,
• lack of pantry cars in super-fast trains, etc

Shipra Sengupta v. G.M. Southern Railway

In this case railway authorities made the detention of the passenger and handing her to
the police, despite the fact that her ticket was already checked at an earlier station –
deficiency in service.

Ms. B. Pushpakanthi & Anr. v. General Manager – Southern Railways

The fault for not providing the reserved (confirmed) berths – amounts to deficiency in
service.
General Manager, Southern Railway, Madras, v. N.Prabakaran,
if the railway is charging from the passengers first class fair and does not provide
cushioned seats as per the specifications laid down by the railway Board, it amounts
Road services:
• Passengers who travel by buses, taxis, etc, can file for
deficiency of service.
• Deficiency of services includes excess money charged in
respect of goods alone contrary to the fixed fare, and death
caused while travelling by bus due to negligence of the driver.

General Manager, APSRTC v. R. Anjinerullu

• Failure to take reasonable care of passengers was a clear case
of deficiency in service.

Goods vehicle service

East India Transport Agency v. Jagdish Bhai M. Chandan,
• consignment caught fire and all the goods booked were
destroyed - deficiency in service
Electricity Service

Haryana State Electricity Board v. Tanuj Rashi Paultry Farm,

• Wrongful disconnection of electricity is deficiency in service.

P.Jagadeesan v. Tamil Nadu Electricity Board

• Failure to re-connect electricity supply after disconnection is deficiency in
service.

Assistant Executive Engineer Sub-Division No.11, KSEB v. Sri Neelkanta

Siddanagouda Patil
• Causing loss due to sparking from electric wires is a deficiency in service.

KPTCL v. Smt. Sharavva & others.

• failure on the part of an Electricity Board in maintaining the lines in a proper
condition that amounts to deficiency in service

Dharmatma Prasad v. SDO Electricity

• Electricity disconnected on short notice, without any fault was found illegal
Telephone
MTNL v. Mohd. shakir
• Not attending the telephone of a complainant after it
has become non-functional is a deficiency in service.
Vijay Sethi v. D.M. Telephones
• There was a case of delay in unlocking the STD
facility despite the appropriate fee was deposited by
the subscriber. Such delay was treated as deficiency
in service.
Union of India v. Neelesh Agarwal
• If the bill is issued in excess of whatever due by the
Telecom Department that comes under the category
of deficiency in service.
Housing and Construction service
Delhi Development Authority v. Krishan Lal
• delay in the issuance of the allotment letter
Manju Goyal v. Gaziabad Development Authority
• delay in giving the possession of the plot and flat by the Housing Development Authority,
then there is a deficiency in service.
Haryana Urban Development Authority v. Darsh Kumar
• If the authority delays in the allotment and delivery of possession of plot/flat/house, the
consumer can get 18% of interest per annum.
M/s Ketan Consultants Pvt. Ltd. v. Sanjay P. Bansal,
• Non-delivery of flats due to the intervention of a civil court cannot defend the builder from
liability.
Chander shekarpur Housing Board Colony v. State of Orissa
• If a housing board does not provide amenities mentioned in brouchers, such as health club,
swimming pool, playground, jogging trail, mini golf club, it would be guilty of deficiency.
Chanderesh Kumar v. Skipper India Ltd.
• Same is the case with delivery of possession of flats in a condition without basic amenities,
like sewerage, water supply and electricity.
V.L. Bhanukumar v. Dega Sundara Kamma Reddy
• The housing board delayed the installation of lifts and in handing over the possession of
flats to the allottes who had paid full price of the flats.
Education service
Sonal Matapurkar v. Nijalingappa Institute
• Admission in excess of the allotted quota- amounts to deficiency in
services
Secretary, Board of School Education Haryana, Bhiwani v. Mukesh Chand
of Palwal
• Delay in declaration of results of an examination is deficiency in service.
Rajinder Singh Saluja v. Datapro Information Technology
• Failure to inform candidate about the dates of viva voice examination is
deficiency in service.
V. Murugesan v. Registrar, University of Madras
• Delay in issuing certificates is also deficiency in service.
Director, Himachal Institute of Engineering & Technology v. Anil Kumar
Gupta
• A wrongful representation by an educational institution that it is an
affiliated institution is a deficiency in service.
Manas Kumar Panda v. Vice Chancellor, Berhampur University.
• Pre-ponement of examination does also amount to deficiency in service.
Postal service
Union of India v. D.Venkaiah
• A Misappropriation of DD by the postman is the deficiency in
service.

Surinder Singh v. Post Master General

Delay in the delivery of a money order can also make the postal
service chargeable for deficiency.

Sub-post Master, Rewari v. Vinod Kumar Saxena.

Mis-delivery of money order also testamounts to deficiency in
service-

Sr. Suptd. Of Post Office v. Mrs. Pushpavati Kanekar

• The delivery of the registered letter to person other than the
addressee amounts to deficiency in service.
LPG cylinder supply
• LPG cylinders supply -also comes under the
definition of service.
• it is the responsibility of the dealers to
distribute gas cylinders- in a proper and safe
manner .

Aklesh Kumar Bansal v. Flame Gas Services

• Failure to re-check a gas cylinder, which is
mandatory for supply of cooking gas cylinders,
amounts to deficiency in service.
s.2(47) “unfair trade practice” means -
- a trade practice which,
-for the purpose of promoting the sale, use or supply of any goods or
-for the provision of any service,
-adopts any unfair method or unfair or deceptive(misleading)
practice including any of the following practices, namely:—
(1) the practice of making any statement, whether orally or in
writing or by visible representation which,—
(i) falsely represents that the goods are of a particular
standard, quality, quantity, grade, composition, style or model;
(ii) falsely represents that the services are of a particular
standard, quality or grade;
(iii) falsely represents any re-built, second-hand, renovated,
reconditioned or old goods as new goods;
(iv) represents that the goods or services have sponsorship,
approval, performance, characteristics, accessories, uses or
benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship
or approval or affiliation which such seller or supplier
does not have;
(vi) makes a false or misleading representation concerning
the need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the
performance, efficacy or length of life of a product or of
any goods that is not based on an adequate or proper test
thereof:
Provided that where a defence is raised to the effect
that such warranty or guarantee is based on adequate or
proper test, the burden of proof of such defence shall lie on
the person raising such defence;
(viii) gives false or misleading facts
disparaging(derogatory) the goods, services or trade of
another person.
Buddhist Mission Dental College & Hospital v. Bhupesh
Khurana
• A dental college which was neither affiliated with the
university concerned, nor recognized by the Dental
College of India, stated in its advertisement for admission
to BDS course that it was under the University and DCI.
• This was held to be a case of total misrepresentation
amounting to an unfair trade practice.
Maruti Suzuki India Ltd. v. Rajiv Kumar Loomba
• Claimant purchased a car. Dealer charged extra amount
from the claimant for a particular part which was neither
demanded nor fitted.
• Dealer was liable to refund extra amount charged.
• Dealers act amounts to unfair trade practice.
The Central Consumer Protection Council
3. (1) The Central Government shall, by notification, establish with
effect from such date as it may specify in that notification, the Central
Consumer Protection Council to be known as the Central Council.
(2) The Central Council shall be an advisory council and consist of the
following members, namely:—
(a) the Minister-in-charge of the Department of Consumer
Affairs in the Central Government, who shall be the Chairperson; and
(b) such number of other official or non-official members
representing such interests as may be prescribed.
4. (1) The Central Council shall meet as and when necessary, but at least
one meeting of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the
Chairperson may think fit and shall observe such procedure in regard
to the transaction of its business as may be prescribed.
5. The objects of the Central Council shall be to render advice on
promotion and protection of the consumers' rights under this Act.
The State Consumer Protection Councils
6. (1) Every State Government shall, by notification, establish with effect from
such date as it may specify in such notification, a State Consumer
Protection Council for such State to be known as the State Council.
(2) The State Council shall be an advisory council and consist of the following
members, namely:—
(a) the Minister-in-charge of Consumer Affairs in the State Government
who shall be the Chairperson;
(b) such number of other official or non-official members representing
such interests as may be prescribed;
(c) such number of other official or non-official members, not exceeding
ten, as may be nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The State Council shall meet at such time and place as the Chairperson may
think fit and shall observe such procedure in regard to the transaction of its
business, as may be prescribed.
7. The objects of every State Council shall be to render advice on promotion
and protection of consumer rights under this Act within the State.
The District Consumer Protection Council
8. (1) The State Government shall, by notification, establish for every
District with effect from such date as it may specify in such notification, a
District Consumer Protection Council to be known as the District
Council.
(2) The District Council shall be an advisory council and consist of the
following members, namely:—
(a) the Collector of the district (by whatever name called), who shall be
the Chairperson; and
(b) such number of other official and non-official members representing
such interests as may be prescribed.
(3) The District Council shall meet as and when necessary but not less than
two meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district
as the Chairperson may think fit and shall observe such procedure in
regard to the transaction of its business as may be prescribed.
9. The objects of every District Council shall be to render advice on
promotion and protection of consumer rights under this Act within the
district.
CENTRAL CONSUMER PROTECTION AUTHORITY
• 10. (1) The Central Government shall, by notification, establish
with effect from such date as it may specify in that notification, a
Central Consumer Protection Authority to be known as the
Central Authority to regulate matters relating to violation of
rights of consumers, unfair trade practices and false or
misleading advertisements which are prejudicial to the
interests of public and consumers and to promote, protect
and enforce the rights of consumers as a class.
• (2) The Central Authority shall consist of a Chief Commissioner
and such number of other Commissioners as may be
prescribed, to be appointed by the Central Government to
exercise the powers and discharge the functions under this Act.
• (3) The headquarters of the Central Authority shall be at such
place in the National Capital Region of Delhi, and it shall have
regional and other offices in any other place in India as the
Central Government may decide.
11. The Central Government may, by notification, make rules to provide for
the qualifications for appointment, method of recruitment, procedure for
appointment, term of office, salaries and allowances, resignation,
removal and other terms and conditions of the service of the Chief
Commissioner and Commissioners of the Central Authority.
13. (1) The Central Government shall provide the Central Authority such number
of officers and other employees as it considers necessary for the efficient
performance of its functions under this Act.
(2) The salaries and allowances payable to, and the other terms and
conditions of service of, the officers and other employees of the Central
Authority appointed under this Act shall be such as may be prescribed.
(3) The Central Authority may engage, in accordance with the procedure
specified by regulations, such number of experts and professionals of
integrity and ability, who have special knowledge and experience in the
areas of consumer rights and welfare, consumer policy, law, medicine,
food safety, health, engineering, product safety, commerce, economics,
public affairs or administration, as it deems necessary to assist it in the
discharge of its functions under this Act.
14. (1) The Central Authority shall regulate the
procedure for transaction of its business and
allocation of its business amongst the Chief
Commissioner and Commissioners as may be
specified by regulations.
(2) The Chief Commissioner shall have the powers
of general superintendence, direction and control
in respect of all administrative matters of the
Central Authority:
Provided that the Chief Commissioner may delegate
such of his powers relating to administrative matters
of the Central Authority, as he may think fit, to any
Commissioner (including Commissioner of a regional
office) or any other officer of the Central Authority.
15. (1) The Central Authority shall have an Investigation Wing headed by a
Director General for the purpose of conducting inquiry or
investigation under this Act as may be directed by the Central
Authority.
(2) The Central Government may appoint a Director-General and such
number of Additional Director-General, Director, Joint Director,
Deputy Director and Assistant Director, from amongst persons who
have experience in investigation and possess such qualifications, in
such manner, as may be prescribed.
(3) Every Additional Director-General, Director, Joint Director, Deputy
Director and Assistant Director shall exercise his powers, and discharge
his functions, subject to the general control, supervision and direction
of the Director-General.
(4) The Director-General may delegate all or any of his powers to the
Additional Director-General or Director, Joint Director or Deputy Director
or Assistant Director, as the case may be, while conducting inquiries or
investigations under this Act.
(5) The inquiries or the investigations made by the Director- General shall
be submitted to the Central Authority in such form, in such manner and
16. The District Collector (by whatever name called) may, on
a complaint or on a reference made to him by the Central
Authority or the Commissioner of a regional office,
inquire into or investigate complaints regarding violation
of rights of consumers as a class, on matters relating to
violations of consumer rights, unfair trade practices and
false or misleading advertisements, within his
jurisdiction and submit his report to the Central
Authority or to the Commissioner of a regional office, as
the case may be.
17. A complaint relating to violation of consumer rights or
unfair trade practices or false or misleading
advertisements which are prejudicial to the interests of
consumers as a class, may be forwarded either in writing
or in electronic mode, to any one of the authorities,
namely, the District Collector or the Commissioner of
18. (1) The Central Authority shall—
(a) protect, promote and enforce the rights of consumers as a class, and
prevent violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in
unfair trade practices;
(c) ensure that no false or misleading advertisement is made of any goods or
services which contravenes the provisions of this Act or the rules or regulations
made thereunder;
(d) ensure that no person takes part in the publication of any advertisement
which is false or misleading.
(2) Without prejudice to the generality of the provisions contained in sub-section
(1), the Central Authority may, for any of the purposes aforesaid,—
(a) inquire or cause an inquiry or investigation to be made into violations of
consumer rights or unfair trade practices, either suo motu or on a complaint
received or on the directions from the Central Government;
(b) file complaints before the District Commission, the State Commission or
the National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State
Commission or the National Commission, as the case may be, in respect of any
allegation of violation of consumer rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of, consumer
rights, including safeguards provided for the protection of consumers under any
other law for the time being in force and recommend appropriate remedial
measures for their effective implementation;
(e) recommend adoption of international covenants and best international
practices on consumer rights to ensure effective enforcement of consumer
rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working
in the field of consumer rights to co-operate and work with consumer protection
agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as
may be necessary, to prevent unfair trade practices and to protect consumers'
interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or
unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments
on consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect
consumers' interest.
19. (1) The Central Authority may, after receiving any information or
complaint or directions from the Central Government or of its
own motion, conduct or cause to be conducted a preliminary
inquiry as to whether there exists a prima facie case of violation of
consumer rights or any unfair trade practice or any false or
misleading advertisement, by any person, which is prejudicial to
the public interest or to the interests of consumers and if it is
satisfied that there exists a prima facie case, it shall cause
investigation to be made by the Director General or by the District
Collector.
(2) Where, after preliminary inquiry, the Central Authority is of the
opinion that the matter is to be dealt with by a Regulator
established under any other law for the time being in force, it may
refer such matter to the concerned Regulator along with its report.
(3) For the purposes of investigation under sub-section (1), the
Central Authority, the Director General or the District Collector
may call upon a person referred to in sub-section (1) and also direct
him to produce any document or record in his possession.
20. Where the Central Authority is satisfied on the basis of
investigation that there is sufficient evidence to show
violation of consumer rights or unfair trade practice
by a person, it may pass such order as may be necessary,
including—
(a) recalling of goods or withdrawal of services which
are dangerous, hazardous or unsafe;
(b) reimbursement of the prices of goods or services so
recalled to purchasers of such goods or services; and
(c) discontinuation of practices which are unfair and
prejudicial to consumers' interest:
Provided that the Central Authority shall give the person
an opportunity of being heard before passing an order
under this section.
21. (1) Where the Central Authority is satisfied after investigation that any
advertisement is false or misleading and is prejudicial to the interest of any
consumer or is in contravention of consumer rights, it may, by order, issue
directions to the concerned trader or manufacturer or endorser or advertiser or
publisher, as the case may be, to discontinue such advertisement or to modify the
same in such manner and within such time as may be specified in that order.
(2) Notwithstanding the order passed under sub-section (1), if the Central Authority is of
the opinion that it is necessary to impose a penalty in respect of such false or
misleading advertisement, by a manufacturer or an endorser, it may, by order, impose
on manufacturer or endorser a penalty which may extend to ten lakh rupees:
Provided that the Central Authority may, for every subsequent contravention by a
manufacturer or endorser, impose a penalty, which may extend to fifty lakh
rupees.
(3) Notwithstanding any order under sub-sections (1) and (2), where the Central Authority
deems it necessary, it may, by order, prohibit the endorser of a false or misleading
advertisement from making endorsement of any product or service for a period
which may extend to one year:
Provided that the Central Authority may, for every subsequent contravention,
prohibit such endorser from making endorsement in respect of any product or
service for a period which may extend to three years.
(4) Where the Central Authority is satisfied after investigation that any person is found to
publish, or is a party to the publication of, a misleading advertisement, it may
(5) No endorser shall be liable to a penalty under sub-sections (2) and (3) if he
has exercised due diligence to verify the veracity of the claims made in
the advertisement regarding the product or service being endorsed by
him.
(6) No person shall be liable to such penalty if he proves that he had
published or arranged for the publication of such advertisement in the
ordinary course of his business:
Provided that no such defence shall be available to such person if he had
previous knowledge of the order passed by the Central Authority for
withdrawal or modification of such advertisement.
(7) While determining the penalty under this section, regard shall be had to
the following, namely:—
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely
affected by such offence; and
(d) the gross revenue from the sales effected by virtue of such offence.
(8) The Central Authority shall give the person an opportunity of being
heard before an order under this section is passed.
22. (1) For the purpose of conducting an investigation after preliminary inquiry
under sub-section (1) of section 19, the Director-General or any other officer
authorised by him in this behalf, or the District Collector, as the case may be, may,
if he has any reason to believe that any person has violated any consumer rights or
committed unfair trade practice or causes any false or misleading advertisement to be
made, shall,—
(a) enter at any reasonable time into any such premises and search for any
document or record or article or any other form of evidence and seize such
document, record, article or such evidence;
(b) make a note or an inventory of such record or article; or
(c) require any person to produce any record, register or other document or
article.
(2) The provisions of the Code of Criminal Procedure, 1973, relating to search and
seizure shall apply, as far as may be, for search and seizure under this Act.
(3) Every document, record or article seized under clause (a) of sub-section (1) or
produced under clause (c) of that sub-section shall be returned to the person, from
whom they were seized or who produced the same, within a period of twenty
days of the date of such seizure or production, as the case may be, after copies
thereof or extracts there from certified by that person, in such manner as may be
prescribed, have been taken.
(4) Where any article seized under sub-section (1) are subject to speedy or natural
decay, the Director-General or such other officer may dispose of the article in
24. A person aggrieved by any order passed by the
Central Authority under sections 20 and 21 may file an
appeal to the National Commission within a period of
thirty days from the date of receipt of such order.
27. (1) The Central Authority shall prepare once in every
year, in such form, manner and at such time as may be
prescribed, an annual report giving full account of its
activities during the previous year and such other reports
and returns, as may be directed, and copies of such report
and returns shall be forwarded to the Central Government.
(2) A copy of the annual report received under sub-section
(1) shall be laid, as soon as may be after it is received,
before each House of Parliament.
 District Consumer Disputes Redressal Commission
28. (1) The State Government shall, by notification, establish a District
Consumer Disputes Redressal Commission, to be known as the District
Commission, in each district of the State:
Provided that the State Government may, if it deems fit, establish more than
one District Commission in a district.
(2) Each District Commission shall consist of—
(a) a President; and
(b) not less than two and not more than such number of members as may be
prescribed, in consultation with the Central Government.

29. The Central Government may, by notification, make rules to provide for the
qualifications, method of recruitment, procedure for appointment, term of
office, resignation and removal of the President and members of the District
Commission.

30. The State Government may, by notification, make rules to provide for
salaries and allowances and other terms and conditions of service of the
President, and members of the District Commission.
31. Any person appointed as President or, as the case may be, a member of the
District Commission immediately before the commencement of this Act shall hold
office as such as President or, as the case may be, as member till the completion of
his term for which he has been appointed.

32. If, at any time, there is a vacancy in the office of the President or member of a
District Commission, the State Government may, by notification, direct—
(a) any other District Commission specified in that notification to exercise the
jurisdiction in respect of that district also; or
(b) the President or a member of any other District Commission specified in that
notification to exercise the powers and discharge the functions of the President or
member of that District Commission also.

33. (1) The State Government shall provide the District Commission with such officers
and other employees as may be required to assist the District Commission in the
discharge of its functions.
(2) The officers and other employees of the District Commission shall discharge
their functions under the general superintendence of the President of the District
Commission.
(3) The salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the District Commission shall be
34. (1) Subject to the other provisions of this Act, the District
Commission shall have jurisdiction to entertain complaints where
the value of the goods or services paid as consideration does not
exceed one crore rupees:
(2) A complaint shall be instituted in a District Commission within the
local limits of whose jurisdiction,—
(a) the opposite party or each of the opposite parties, where there are
more than one, at the time of the institution of the complaint, ordinarily
resides or carries on business or has a branch office or personally
works for gain; or
(b) any of the opposite parties, where there are more than one, at the
time of the institution of the complaint, actually and voluntarily
resides, or carries on business or has a branch office, or personally
works for gain, provided that in such case the permission of the District
Commission is given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.
• (3) The District Commission shall ordinarily function in the district headquarters and may perform its functions at
such other place in the district, as the State Government may, in consultation with the State Commission, notify in
the Official Gazette from time to time.
35. (1) A complaint, in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided
or agreed to be provided, may be filed with a District Commission by— (a) the consumer,— (i) to whom such
goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided; or
(ii) who alleges unfair trade practice in respect of such goods or service; (b) any recognised consumer association,
whether the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service is
provided or agreed to be provided, or who alleges unfair trade practice in respect of such goods or service, is a
member of such association or not; (c) one or more consumers, where there are numerous consumers having the
same interest, with the permission of the District Commission, on behalf of, or for the benefit of, all consumers so
interested; or (d) the Central Government, the Central Authority or the State Government, as the case may be:
Provided that the complaint under this sub-section may be filed electronically in such manner as may be prescribed.
Explanation.—For the purposes of this sub-section, "recognised consumer association" means any voluntary
consumer association registered under any law for the time being in force. (2) Every complaint filed under sub-
section (1) shall be accompanied with such fee and payable in such manner, including electronic form, as may be
prescribed. 36. (1) Every proceeding before the District Commission shall be conducted by the President of that
Commission and atleast one member thereof, sitting together: Provided that where a member, for any reason, is
unable to conduct a proceeding till it is completed, the President and the other member shall continue the
proceeding from the stage at which it was last heard by the previous member. (2) On receipt of a complaint made
under section 35, the District Commission may, by order, admit the complaint for being proceeded with or reject the
same: Provided that a complaint shall not be rejected under this section unless an opportunity of being heard has
been given to the complainant: Provided further that the admissibility of the complaint shall ordinarily be decided
within twenty-one days from the date on which the complaint was filed. (3) Where the District Commission does
not decide the issue of admissibility of the complaint within the period so specified, it shall be deemed to have been
admitted. 37. (1) At the first hearing of the complaint after its admission, or at any later stage, if it appears to the
District Commission that there exists elements of a settlement which may be acceptable to the parties, except in
such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their
dispute settled by mediation in accordance with the provisions of Chapter V. (2) Where the parties agree for
settlement by mediation and give their consent in writing, the District Commission shall, within five days of receipt
of such consent, refer the