What is the Need of Consumer Protection?
Before we talk about the various reasons as to why there is a rising need for Consumer Protection, let’s talk about the basics first.
Who Exactly is a Consumer?
An individual who buys or purchases any kinds of products and/or goods and services, not for resale or manufacturing purposes, but only for their personal use, is called a consumer. A consumer can either be one person or a group of individuals.
Consumer Protection works for both the business and the consumers. The consumers, in order to acquire the correct information of the product and services, require this consumer protection forum to keep them updated about their purchase. This enables the customers to make rational decisions and prevents them from misleading information broadcasted by the businesses.
We have already enhanced our scope about what is ‘Consumer Protection’, here in this section we will know about the measures initiated and the contributions done by the government in this legal protection for the consumers.
Consumer Protection Measures in India
Consumer Protection Measures have been initiated all over India. The measures are also in the form of Acts that are reformed and restructured from time to time.
The Consumer Protection Act, 1986
This Act protects the rights of the consumers and makes them aware of their rights as a consumer. There are three-tier redressal forums to protect the rights of the consumer.
Indian Contract Act, 1972
The Indian Contract Act lays down the conditions that need to be fulfilled by the parties who contract in an agreement. This act regulates the buyers by keeping a legal check on their promise to sell authentic products to the seller. This Act protects the interest of both parties. It takes care that the contract is not breached, else respective remuneration has to be paid for such breach.
The Sales of Goods Act, 1930
This protects the rights of the consumers in case the products received by them are sub-standard.
The Prevention of Food Adulteration Act, 1954
The act confirms the purity of the food items and thereby ensures the health of the consumers.
The Trade Marks Act, 1999
This Act protects the consumers from the false marks which could mislead them to consume the product, and thus cheat on them by serving less qualified products.
What are the Rights of a Consumer?
A consumer has access to the following rights, courtesy of the Consumer Protection Act of 1986, and they are as follows:
The right to be informed.
The right to safety.
The right to choose.
The right to be heard.
The right to consumer education and related information.
The right to seek redressal.
Consumer Protection Laws
There are various consumer protection laws that help fellow consumers to raise their voices against exploitation. Few consumer protection laws are as follows:
Right to File a Complaint From Anywhere
This new right has enabled the consumer to file their complaint from literally anywhere, be it to the District Commission or the State Commission. With this right, the restriction of location is being wiped out.
Right to Seek Compensation Under Product Liability
The consumer is saved from any damages from defective products or services. The seller is liable to pay the compensation of the damages done to the consumers.
Right to Seek a Hearing Using Video Conferencing
This right helps the consumers to present themselves for hearing through video conferencing mode even. This extinguishes the barriers of location again.
Right to Know Why His Complaint is Rejected
The commissions can never reject a complaint without hearing the complaint from the complainant. In fact, the commission needs to keep the complainant notified about its rejection or accept their complaint within 21 days if no answers are received then it is deemed to have been admitted.
Role of the Government in Consumer Protection
The government prioritizes the protection of consumers. This is a reform that also contributes to the ‘New India’ mission.
Role of Government in Protecting the Consumers are as Follows
The government introduced bills that enforce consumer rights which in turn provide a mechanism for addressing the complaints regarding defective goods and services.
There are consumer dispute redressal forums in the district, national and state levels that help the consumers in solving their grievances.
The bill has been initiated to establish the Consumer Protection Authority who investigates consumer complaints.
The bill of the government classifies the type of contract unfairness so that they can be addressed accurately.
As a Consumer, How can One Make Sure that their Rights aren’t Violated?
The first and foremost step towards protecting one’s rights as a consumer is to get educated on the subject. It is extremely necessary for a consumer to be aware of his/her rights and to know when and where they can utilise these and how. This will help a consumer to not only stay on their guard, but it will also give them a sense of reassurance that if anything does go wrong, they would have the ability to enact their rights.
FAQs on Legal Protection for Consumers: Rights and Measures
1. Why is consumer protection important for both consumers and businesses?
Consumer protection is crucial for multiple reasons. For consumers, it safeguards them from unfair trade practices, ensures access to safe products, and provides a platform for grievance redressal. For businesses, adopting fair practices builds brand reputation and customer loyalty, leading to long-term growth. It also encourages healthy competition and acts as a form of self-regulation, which can prevent stricter government intervention.
2. What are the six main consumer rights provided under the Consumer Protection Act, 2019?
According to the Consumer Protection Act, 2019, every consumer in India is guaranteed the following six rights:
- Right to Safety: Protection from goods and services that are hazardous to life and property.
- Right to be Informed: The right to be informed about the quality, quantity, purity, standard, and price of goods or services.
- Right to Choose: The right to be assured access to a variety of goods and services at competitive prices.
- Right to be Heard: The assurance that the consumer's interests will receive due consideration at appropriate forums.
- Right to Seek Redressal: The right to seek remedy against unfair trade practices or exploitation.
- Right to Consumer Education: The right to acquire the knowledge and skills to be an informed consumer.
3. Who is considered a 'consumer' according to the Consumer Protection Act, 2019?
As per the Consumer Protection Act, 2019, a 'consumer' is any person who buys any goods or avails any service for a consideration (payment). This includes both online and offline transactions. Importantly, it does not include a person who obtains goods for resale or for any commercial purpose. However, a person using goods or services for self-employment is still considered a consumer.
4. How does the 'Right to be Heard' differ from the 'Right to Seek Redressal'?
While both rights empower consumers, they serve different functions. The 'Right to be Heard' is a representative right; it ensures that a consumer's interests and viewpoints will be considered in the making of policies and during legal proceedings. The 'Right to Seek Redressal' is a remedial right; it is the right to get compensation or relief, such as a replacement or refund, when a consumer has suffered a loss due to a defective product or deficient service.
5. What are some key laws, besides the Consumer Protection Act, that safeguard consumer interests in India?
While the Consumer Protection Act is the primary legislation, several other laws also provide protection to consumers in specific areas:
- The Indian Contract Act, 1872: Ensures that the promises made in a contract are legally binding.
- The Sale of Goods Act, 1930: Provides remedies to consumers if the goods sold do not meet the implied conditions or warranties.
- The Prevention of Food Adulteration Act, 1954: Aims to curb the adulteration of food articles.
- The Trade Marks Act, 1999: Protects consumers from being misled by fraudulent marks on products.
6. Why are consumer responsibilities just as important as consumer rights?
Consumer responsibilities are the other side of the coin to consumer rights. They are essential for making the consumer protection framework effective. Fulfilling responsibilities—such as being aware of product quality, insisting on a cash memo, reading labels carefully, and filing genuine complaints—ensures that consumers do not misuse their rights. It empowers them to make informed choices and helps authorities differentiate between frivolous and legitimate grievances, leading to a more efficient and just marketplace.
7. What is the three-tier grievance redressal machinery available to consumers in India?
The Consumer Protection Act, 2019 establishes a three-tier quasi-judicial system to address consumer grievances based on the value of the claim:
- District Consumer Disputes Redressal Commission (DCDRC): Hears complaints where the value of goods or services paid as consideration does not exceed ₹50 lakh.
- State Consumer Disputes Redressal Commission (SCDRC): Hears complaints where the value exceeds ₹50 lakh but is less than ₹2 crore.
- National Consumer Disputes Redressal Commission (NCDRC): Hears complaints where the value of goods or services exceeds ₹2 crore.
8. What are the significant improvements in the Consumer Protection Act, 2019, compared to the earlier 1986 Act?
The Consumer Protection Act, 2019, introduced several key enhancements over the 1986 Act, including:
- Establishment of the CCPA: A Central Consumer Protection Authority was created to proactively protect and enforce consumer rights.
- Product Liability: A specific clause was introduced, making manufacturers and sellers liable for defects in products or services that cause harm.
- E-filing of Complaints: Consumers can now file complaints electronically from anywhere, which was not possible earlier.
- Mediation: The Act provides for mediation as an alternate dispute resolution mechanism, making the process faster.
- Revised Pecuniary Jurisdiction: The financial limits for the three-tier redressal commissions were updated to handle modern-day transactions.
9. What is the role of the Central Consumer Protection Authority (CCPA)?
The Central Consumer Protection Authority (CCPA) is a regulatory body established under the CPA, 2019. Its primary role is to promote, protect, and enforce the rights of consumers as a class. It has the power to conduct investigations into violations of consumer rights, order the recall of unsafe goods, issue directions to cease unfair trade practices, and impose penalties for false or misleading advertisements.
10. What remedies are available to a consumer if the consumer court is satisfied with the complaint?
If a consumer court finds a complaint to be genuine, it can issue one or more of the following reliefs to the consumer:
- To remove the defect from the goods.
- To replace the defective product with a new one, free from any defect.
- To refund the price paid by the consumer.
- To pay a reasonable amount of compensation for any loss or injury suffered.
- To discontinue the unfair or restrictive trade practice.
- To issue corrective advertisements to neutralise the effect of a misleading advertisement.
11. In what ways can a misleading advertisement violate a consumer's 'Right to be Informed'? Provide an example.
A misleading advertisement directly violates the 'Right to be Informed' because it provides false, incomplete, or deceptive information about a product's quality, quantity, or performance. This prevents the consumer from making a rational and informed purchase decision. For example, an advertisement for a fairness cream that claims to change skin colour permanently in seven days is misleading, as it creates a false promise about the product's actual capability, thus infringing on the consumer's right to accurate information.
