Consumer Legal Protection

The Consumer Protection Act, 1986 (CPA) is an Act that provides for effective protection of interests of consumers and as such makes provision for the establishment of consumer councils and other authorities that help in settlement of consumer disputes and matters connected therewith.

The CPA seeks to protect the interests of individual consumers by prescribing specific remedies to make good the loss or damage caused to consumers as a result of unfair trade practices.

Scope

Broadly speaking, the CPA seeks to protect the following basic rights of consumers:

• Right against the marketing of goods and services which are hazardous to life and property;
• Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services;
• Right to choice, wherever possible through access, to a variety of goods and services at competitive prices;
• Right to be heard and to be assured that consumers’ interests will receive due consideration at appropriate forums;
• Right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers;
• Right to consumer education; and
• Right to clean and healthy environment.

Consumer:

Section 2(d) of the CPA defines “consumer” as a person who:

“(a) Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for a consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose;

or

(b) Hires or avails of any services for consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for a consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purpose. It may, however, be noted that “commercial purpose” does not include use by a person of goods bought and services exclusively for the purposes of earning his livelihood by means of self-employment.”

From the above definition, it can be observed that:

• The goods or services must have been purchased or hired or availed of for a consideration which has been paid in full or in part or under a system of deferred payment, i.e., in respect of hire-purchase transactions;
• The goods purchased should not be meant for resale or for a commercial purpose. Goods purchased by a dealer in the ordinary course of his business and those which are in the course of his business to supply would be deemed to be for re-sale;
• In addition to the purchaser(s) of goods, or hirer(s) or user(s) of services, any beneficiary of such services, a user of goods/services with the approval of the purchaser or hirer or user would also be deemed to be a “consumer” under the Act.

Consumer Protection Council

The interests of consumers are sought to be protected and promoted under the Act inter alia by establishment of Consumer Protection Councils at the District, State and National levels.

Redressal Machinery under the Act

The Act provides for a three-tier quasi-judicial redressal mechanism at the District, State and National levels for redressal of consumer disputes and grievances, namely:

National Consumer Disputes Redressal Commission (commonly known as National Commission)

It has jurisdiction to entertain complaints where the value of goods/services complained against and the compensation, if any claimed, exceeds Rs10,000,000 (Indian Rupees 10 Million).

State Consumer Disputes Redressal Commission (commonly known as State Commission)

It has jurisdiction to entertain complaints where the value of goods/services complained against and the compensation, if any claimed, exceeds Rs 2,000,000 (Indian Rupees 2 Million) but less than Rs 10,000,000 (Indian Rupees 10 Million).

District Consumer Disputes Redressal Forum (commonly known as District Forum)

It has jurisdiction to entertain complaints where the value of goods/services complained against and the compensation, if any claimed, is less than Rs 2,000,000 (Indian Rupees Two Million).

Till the 1970s there was unchecked consumer mistreatment happening in India. Black marketing, monopolistic practices, adulteration of food were all commonplace. However, the consumer movement brought about a change in the scenario. The government too provided consumers legal protection through various laws and setting up of consumer court.

To protect consumer on legal terms, Court of Law i.e. Consumer Court has laid down certain acts to protect the consumers on legal grounds. This Legal Protection keeps intact the right of the consumer which when acted will provide them justice against any dissatisfaction created by the sellers/business/manufacturer.

This legal Indian framework by Consumer Court also consists of large number of regulations that are maintained strictly for the protection of consumers. Some of these regulations are followed as stated below:

Laws to Protect Consumers

The Consumer Protection Act, 1986 (COPRA)

• In this, it protects the right of the consumer and makes user aware of their rights.
• They have developed or formed three-tier system wherein there is District Forums, State Commission, and National Commission thus to protect the right of the consumer.

Indian Contract Act, 1972

• They lay down the conditions in which the parties promise each other of the services to be provided and agree on certain terms. The contract is made that is binding on each other.
• They protect the interest that the contract is not breached and in case if breached the remuneration to be provided.

The Sales of Good Act, 1930

• To ensure the consumer rights in case the goods offered to the consumer is not up to the standard which was promised and the false claim was made.

The Essential Commodities Act, 1955

• To keep track of the commodities which are essential and monitor their production and supply. Also keep a track of any hoarders, black marketers,

The Agricultural Produce (Grading and Marking ) Act, 1937

• To implement the grading standard and hence monitoring the same whether standard checks are been done to issue the grading. In this, AGMARK is the standard introduced for agricultural goods.

The Prevention of Food Adulteration Act, 1954

• This act makes sure the purity of the food items and the health of the consumers which could be affected by the adulterated items.

The Standards of Weights and Measures Act, 1976

• The Standards of Weights and Measures Act protects the right against the goods which is underweight or under measured.

The Trade Marks Act, 1999

• This act protects users from false marks which could mislead the consumer and hence cheat them in the ground of quality of the product.

The Competition Act, 2002

• The Competition Act replaced from the Monopolies and the Restrictive Trade Practices Act following to take action against the firms which use such practice which in turn affect the competition in the market.

The Bureau of Indian Standards Act, 1986

• The Bureau of Indian Standards Act ensures about the quality of the product to be used by the consumer and have introduced BIS Mark to certify the quality of the product and have set up grievance cell which can take complaints regarding the quality of the product.

Consumer Court

Consumer Courts are special courts set up by the Indian Judiciary to settle consumer grievances and entertain consumer problems. A special consumer court is set up to ensure that justice is done quickly and efficiently, without undue hardship to the complainant. Also to handle the sheer number of cases, the consumer courts help lessen the burden on the judiciary system.

Another major advantage that the consumer court offers is that the whole process is fairly simple. One does not even need to hire a lawyer or any legal professional for the hearing if he thinks it is not required. Self-representation is possible in a consumer court. Right from submitting a complaint to the process of hearing all procedures are kept simple and uncomplicated.

Applicability of the Law of Limitation

The District Forum, the State Commission and/or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. However, where the complainant satisfies the Forum/Commission, as the case may be, that he has sufficient cause for not filing the complaint within two years, such a complaint may be entertained by such Forum/ Commission after recording the reasons for condoning the delay.

Remedies under the CPA

Depending on the facts and circumstances, the redressal forums may issue orders for one or more of the following relief(s):

• Removal of defects from the goods;
• Replacement of the goods;
• Refund of the price paid;
• Award of compensation for the loss or injury suffered;
• Withdrawal of the hazardous goods from being offered for sale; or
• Award for adequate costs to parties.
• Removal of defects or deficiencies in the services