CONSUMER PROTECTION IN INDIA
UNIT 2: Consumer Protection Measures and Legal Framework
Measures for Consumer Protection in India
In India, consumer protection is primarily addressed through the Consumer Protection Act, 1986, which has been strengthened by the Consumer Protection Act, 2019. Additional protection is provided by laws like the Indian Contract Act, 1872, and the Sale of Goods Act, 1930. The Central Consumer Protection Authority (CCPA) plays a key role in enforcing these laws and protecting consumer rights, particularly in relation to misleading advertisements and unfair trade practices.
Key Measures for Consumer Protection
- Legislation: The Consumer Protection Act, 1986 and its successor, the Consumer Protection Act, 2019, are the primary legal frameworks for consumer protection in India. These Acts aim to protect consumers from unfair trade practices, defective goods, and deficient services.
- Redressal Forums: The Act establishes Consumer Dispute Redressal Forums at the district, state, and national levels to address consumer complaints.
- Central Consumer Protection Authority (CCPA): The CCPA was established to regulate matters related to consumer protection, including investigating violations of consumer rights and unfair trade practices.
- Indian Contract Act, 1872: This Act governs contracts between parties, including consumers, and provides protection against fraud, coercion, and breach of trust.
- Sale of Goods Act, 1930: This Act protects consumers by ensuring that goods purchased meet the warranties and conditions associated with them.
- Other Acts: Additional legislation, such as the Essential Commodities Act, 1955, the Prevention of Food Adulteration Act, 1954, and the Standards of Weights and Measures Act, 1976, contribute to consumer protection in specific areas.
- Consumer Rights: The Consumer Protection Act, 1986 and the 2019 Act, recognize several consumer rights, including the right to safety, the right to be informed, the right to choose, the right to be heard, the right to consumer education, and the right to seek redressal.
- National Consumer Helpline: The National Consumer Helpline (NCH) provides a centralized platform for consumers to register complaints and seek redressal at the pre-litigation stage.
- Consumer Education: Efforts are made to raise awareness about consumer rights and responsibilities to empower consumers to make informed decisions.
Basic Provisions of the Consumer Protection Act (CPA), 1986
The Consumer Protection Act (CPA), 1986, protects consumers from unfair trade practices and ensures their rights are upheld. It establishes consumer rights, including the right to safety, information, choice, to be heard, and to seek redressal. The Act also provides for a three-tier system of consumer redressal forums (District, State, and National Commissions).
Key Provisions of the Consumer Protection Act, 1986
1. Consumer Rights
The Act guarantees consumers several fundamental rights.
- ✓ Right to Safety: Protection from goods and services that are hazardous to life and property.
- ✓ Right to Information: Access to accurate and comprehensive information about goods and services, including their quality, quantity, and price.
- ✓ Right to Choose: Freedom to choose from a variety of products and services at competitive prices.
- ✓ Right to be Heard: The right to express grievances and be heard in forums that protect consumer interests.
- ✓ Right to Seek Redressal: Access to compensation for unfair trade practices, defective goods, or unsatisfactory services.
- ✓ Right to Consumer Education: Acquiring the knowledge and skills to be an informed consumer.
2. Three-Tier Consumer Redressal Forums
- ✓ District Forum: Handles complaints with a value of goods or services and compensation claimed up to ₹20 lakhs.
- ✓ State Commission: Handles complaints with a value exceeding ₹20 lakhs but not exceeding ₹1 crore and appeals against District Forum orders.
- ✓ National Commission: Handles complaints with a value exceeding ₹1 crore and appeals against State Commission orders.
3. Powers and Functions of Redressal Forums:
The forums have the power to.
- ✓ Compel parties to appear before them.
- ✓ Issue orders for compensation, removal of defects, or replacement of goods.
- ✓ Punish non-compliance with their orders.
4. Definitions:
The Act defines key terms like "consumer," "unfair trade practice," "defective goods," and "deficient services" to clearly outline the scope of protection.
5. Consumer Education:
The Act emphasizes the importance of consumer education to empower consumers and make them aware of their rights and responsibilities.
Organizational Set-Up for Consumer Protection Under CPA
The CPA provides a three-tier quasi-judicial machinery for the redressal of consumer grievances: District Consumer Disputes Redressal Forum, State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission. These quasi-judicial bodies are responsible for resolving consumer disputes, with each level having jurisdiction over different value ranges of claims.
a) District Consumer Disputes Redressal Commission (DCDRC)
- Jurisdiction: Complaints up to ₹1 crore (as per CPA 2019)
- Headed by: A President (usually a retired judge) and members
b) State Consumer Disputes Redressal Commission (SCDRC)
- Jurisdiction: ₹1 crore to ₹10 crore
- Also handles appeals from the District Commission
c) National Consumer Disputes Redressal Commission (NCDRC)
- Jurisdiction: Above ₹10 crore
- Also handles appeals from State Commissions
Additionally, Consumer Protection Councils at the national, state, and district levels promote consumer awareness and provide guidance.
a) Central Council
Established to promote consumer rights, education, and awareness.
b) State Councils
Operate at the state level to provide guidance and support to consumers.
c) District Councils
Function at the district level to facilitate local consumer protection efforts.
Procedure of Filing a Complaint
The complaint process is simple, accessible, and consumer-friendly. A consumer can file a complaint individually or through a recognized consumer organization.
Step-by-Step Procedure
Relief Available to Consumers
The following remedies may be granted by the Consumer Commission:
1. Removal of Defects
The seller may be ordered to fix any defects in the goods or services provided.
2. Replacement of Goods
The defective product may be replaced with a new, fault-free one.
3. Refund of Price Paid
The consumer can get a full or partial refund of the amount paid.
4. Compensation for Loss or Injury
Monetary compensation may be awarded for any loss, damage, or injury suffered.
5. Discontinuation of Unfair Trade Practices
The seller may be directed to stop any misleading or unfair business practices.
6. Withdrawal of Hazardous Goods
Unsafe goods may be ordered to be removed from the market.
7. Punitive Damages
Extra damages may be imposed to punish the seller for gross negligence or misconduct.
8. Corrective Advertisement
The business may be asked to issue a truthful advertisement to counteract any misleading claims.
