Consumer Protection Act

The Consumer Protection Act 2019 in India aims to protect consumers' rights and address complaints related to overpricing, service deficiency, product quality, misleading advertisements, and unfair practices. It replaces the 1986 Act and also establishes the Central Consumer Protection Authority (CCPA). The Act empowers consumers to take action against errant sellers, provides provisions for consumer protection, and includes provisions for product liability, mediation, and penalties for adulterant or counterfeit goods. The Department of Consumer Affairs has notified the Consumer Protection (E-commerce) Rules, 2020, to safeguard consumers from unfair trade practices in e-commerce. These rules outline the responsibilities of e-commerce entities, specify their liabilities, and provide provisions for customer grievance redressal.

In India, the consumer movement became a social force, fighting dishonest business practices such as adulterating food and edible oils, hoarding, and selling products illegally. Individual customers were frequently put in dangerous circumstances, and vendors would often blame them for their concerns. A section on unfair trade practices was incorporated in the Monopolies and Restrictive Trade Practice (MRTP) Act of 1969, which permitted businesses or individuals to submit complaints with the MRTP Commission. But as businesses began to file complaints against one another, the intricacy of the complaints increased. Under numerous statutes, consumers had to bring cases in civil courts, but there was no complaint handling body in existence. In order to protect customers from deceptive activities, the Consumer Protection Act of 1986 was created. But now, the Consumer Protection Act of 2019 has been enacted because of new problems in Indian marketplaces such as telemarketing, multi-level marketing, direct selling, and misleading advertising.

India celebrates National Consumer Rights Day on December 24 every year in an effort to raise public knowledge of consumer rights and obligations. It marks the date on which the President signed the Consumer Protection Act in 1986. The Consumer Protection Act, 2019, replaced the Consumer Protection Act (CPA)enacted in 1986 to protect consumers' interests and provide swift redress for complaints against unfair trade practices and defective goods or services.

The Consumer Protection Act of 2019 replaced the Consumer Protection Act of 1986 as of July 20, 2020. The new law includes several provisions designed to strengthen the consumer protection framework and enhance consumer rights. It establishes the Central Consumer Protection Authority (CCPA) to protect, defend, and develop consumer rights.

• CCPA: In order to punish deceptive and false advertising, the Act creates the Central Consumer Protection Authority (CCPA).
  • Members are appointed by the Central Government. It is comprised of:-
    • Chief Commissioner
    • Two Commissioners (One each for products and services)
    • A Director General-led Investigative Wing.
    • District Collectors are also authorized to look into allegations of unfair commercial practices, deceptive or false advertising, and infringement of consumer rights.
    • Powers:-
    • The CCPA possesses the authority to initiate suo-moto proceedings, conduct product recalls, mandate repayment for goods and services paid, revoke licenses, levy fines, and initiate class-action lawsuits.
  • An impartial inquiry or investigation of breaches of consumer law will be carried out by the CCPA's investigation wing.
• Coverage: The Act covers all goods and services in public, private, or cooperative sectors, except those exempted by the central government.
• Digital Focus: The Consumer Protection Act of 2019 specifically includes e-commerce transactions in its scope, defining e-commerce as the purchase or sale of goods or services, including digital items, over a digital or electronic network.
• Ban False Ads: Additionally, it bans endorsers of deceptive advertisements from endorsement for a year.
• Penalties for Adulteration: Producing, keeping, or marketing contaminated goods are all subject to fines under the CCPA.
• Assure Product responsibility: To prevent producers and suppliers of services from offering faulty products or services, the Act contains rules pertaining to product responsibility.
• Timely Case Disposal: By permitting mediation, the Act lessens inconvenience for consumers.
• Enhanced Protection: New industries like e-commerce are covered by the Act.
• Flexibility for Customers: The Act permits consumers to file complaints at their place of employment or residence and permits video conference hearings.
• Fixed Time Period: The Act gives the consumer dispute redressal commission 21 days to make a decision.
• Dispute Resolution:
  • The new Act includes an Alternate Dispute Resolution tool called mediation. This improves the adjudication procedure. A Consumer Commission will submit a case to mediation if there is possibility for early resolution and the parties agree to it. Mediation will take place in Mediation Cells established by the Consumer Commissions. An appeal against a mediation settlement is not permitted.
  • District, state, and federal consumer forums—also called Consumer Disputes Redressal Commissions— are set up to settle consumer complaints.
  • Depending on the merits of the claim and quantum in dispute, customers may register complaints at the relevant venue.
• Consumer Rights under the Consumer Protection Act-
  • Right to Safety: Customers are entitled to protection against products and services that might endanger their health or well-being.
  • Right to Information: In order to make educated decisions, consumers have the right to have accurate and comprehensive information about goods and services.
  • Right to Choose: Customers are entitled to a range of competitively priced goods and services to select from.
  • Right to be Heard: Customers have the right to have their complaints taken seriously by companies and government agencies.
  • Right to Seek Redress: This refers to the ability to file a complaint about dishonest business activities or the deceptive exploitation of customers. It also covers the right to a just resolution of the customer's legitimate complaints.

• Consumer Protection (E-Commerce) Rules, 2020: In accordance with the Consumer Protection Act, the Department of Consumer Affairs has released the Consumer Protection (E-commerce) Rules, 2020 to safeguard customers from deceptive business practices in e-commerce. For marketplace and inventory e-commerce firms, these regulations provide obligations, liabilities, and procedures for handling client complaints.
• CCPA Guidelines for Misleading Advertisements and Endorsements 2022: The CCPA has issued guidelines for preventing misleading advertisements and endorsements for misleading advertisements, 2022, aimed at protecting consumers from exploitation.
  • The guidelines require endorsements to reflect the genuine opinion of the individual, group, or organization making the endorsement, based on adequate information about the identified goods, product, or service.
  • If there is a connection between the endorser and the trader, manufacturer, or advertiser of the endorsed product that could affect the endorsement's value or credibility, the connection must be disclosed during endorsement.
• CCPA's Safety Alerts for E-commerce: The CCPA has issued advisories to e-commerce companies to avoid manufacturing, selling, or listing dangerous products or services, including car seat belt alarm stopper clips and wireless jammers.
  • It also advised marketplace platforms to display seller information according to the E-Commerce Rules, 2020.
  • Additionally, the CCPA issued safety notices cautioning consumers against buying goods without valid ISI Marks or violating BIS standards, such as helmets, pressure cookers, and household items like electric immersion water heaters and microwave ovens.
• The Department of Consumer Affairs (DoCA) has identified "dark patterns" as unfair trade practices that use design and choice architecture to deceive consumers into making choices that are not in their best interest. In an interactive consultation on June 13, 2023 with stakeholders like the Advertising Standards Council of India (ASCI), e-commerce companies, and industry associations, DoCA has urged them to avoid using design or patterns in their online interfaces that may deceive or manipulate consumer choices.

• 'Healthcare' is not included in the Act's list of services.
• According to the Act, the CCPA would be the primary regulator for consumer complaints. However, additional sectoral regulators exist, such as the TRAI in telecom and the IRDAI in insurance. It may result in overlapping jurisdiction among authorities.
• Customers may become confused by the multitude of alternatives for registering complaints.
• The Act's 21-day window for admitting complaints might result in a heavier burden.
• The Act could be in violation of the Separation of Powers Doctrine as it does not outline the minimal requirements for qualification to be member of the Consumer Dispute Redressal bodies. The commission's ability to operate independently may be hampered by the Central government's choice of appointment procedure.
• To choose the members of the commission, the 1986 Act created selection committees, with a judicial member serving as head. However, the new Act gives the Central government the authority to choose the appointment process. This might make it more difficult for these commissions to operate independently.
• A number of the Parliamentary standing committee's recommendations have not been addressed, such as the right to terminate a contract due to poor quality of products supplied/services performed, which is not listed in the list of rights.
• The Act's inclusion of e-commerce might have a detrimental effect on the industry, lowering India's negotiating strength and perhaps FDI.

• In the case of Ranganathan v. Standard Chartered Bank, the bank had hired thugs to collect arrears even though it was told to take care of the debt through deposits. The "mafia mentality" in a global bank was denounced by the Tamil Nadu State Commission along with compensation orders.
• In Cadbury India Limited v. The Director of Food Safety, Tamil Nadu, tainted chocolate bars were at issue. Cadbury contested the Tamil Nadu Food Safety Department's order for a recall and penalties. The department won, and Cadbury was held accountable for producing dangerous goods by the court.

1. INGRAM: The Integrated Grievance Redress Mechanism (INGRAM) portal aids in educating customers about their obligations and rights. Through it, customers can also file complaints.
2. State Consumer Helplines: State governments have established state consumer helplines. It seeks to promote state-level methods for alternative dispute resolution.
3. Smart Consumer Application: The government has released the "Smart Consumer" mobile application, which allows customers to scan a product's barcode to obtain all of the product's details.
4. GAMA: Grievances Against Misleading Advertisements (GAMA) is a new webpage the government has established. Customers can file their complaints about deceptive marketing on this specific portal.
5. Online Consumer Mediation Center: The National Law School of India University, Bengaluru, has developed an Online Consumer Mediation Center. It seeks to offer a cutting-edge framework for resolving customer issues via its platform's physical and online mediation.
6. JaagoGrahakJaago: The Indian government's Ministry of Consumer Affairs and Public Distribution runs the consumer awareness initiative Jago Grahak Jago.

• Critically Aware: A heightened sense of alertness and inquiry regarding the costs, availability, and caliber of goods and services.
• Involved: Being assertive to guarantee equitable agreements and prevent exploitation.
• Well-organized: Collaborating and speaking out to advance and safeguard the interests of customers.
• Sustainable Consumption: Awareness of the effects on marginalized or helpless populations and need-based consumption.
• Environmental Responsibility: Environmental responsibility is knowing our natural resources, preserving them, and safeguarding the planet for next generations.

• In order to prevent exploitation, consumer rights guarantee access to truthful and accessible information.
• Laws protecting consumers from unfair business practices, such as deceptive advertising & dark patterns, are in place.
• Consumer rights permit money back for damages brought on by faulty items and guarantee product safety.
• The redressal processes for consumer-business conflicts are established by consumer protection legislation.
• Rights of consumers encourage ethical business practices and push companies to enhance their goods and services.
• Vulnerable consumer groups such as the elderly, the disabled, or those from low-income backgrounds are protected by consumer protection legislation.
• Rights of consumers guarantee justice and safety in an era of e-commerce and globalization.
• Rights of consumers encourage moral corporate conduct that prioritizes justice, openness, and truthfulness.

• United Nations Guidelines for Consumer Protection (1985): The development of efficient consumer protection laws, enforcement agencies, and redress mechanisms all depend on the United Nations Guidelines for Consumer Protection (UNGCP). They foster international cooperation in law enforcement, facilitate the exchange of consumer protection experiences, and support Member States in the drafting and implementation of national and local legislation.
• International Organization for Standardization (ISO): International standards, particularly those pertaining to consumer protection, are created and published by ISO. For instance, ISO 9001 covers quality management systems and takes customer wants and satisfaction into account.
• Organization for Economic Co-operation and Development (OECD): Member nations are urged to implement the consumer protection principles and recommendations issued by the OECD. Fair business practices in online transactions are ensured by the OECD Principles on Consumer Protection in E-commerce.
• United Nations Conference on Trade and Development (UNCTAD): Trade, development, and consumer protection are the three areas of focus for UNCTAD. Countries looking to improve their consumer protection laws might find helpful advice in UNCTAD's Consumer Protection Toolkit.
• World Trade Organization (WTO): Notwithstanding its primary focus on trade-related matters, the WTO acknowledges the significance of consumer protection in global trade. The WTO accords recognize that trade interests must be balanced with public health and consumer protection.
• International Consumer Protection and Enforcement Network (ICPEN): Authorities from several nations that oversee consumer protection are connected through ICPEN. For consumer protection authorities throughout the world, it makes collaboration and information sharing easier.

The Digital Age has brought about a new era of commerce, digital branding, and customer expectations. However, it also presents challenges related to consumer protection. The Indian Parliament passed the Consumer Protection Bill, 2019 to address these issues. The Act aims to provide timely and effective administration and settlement of consumer disputes. It safeguards consumers' interests by establishing authorities for timely and effective administration and settlement of consumer disputes.

The Act protects consumers' rights to information on various aspects of goods and services, including quantity, quality, purity, potency, price, and standard. It also protects consumers from hazardous goods and services, unfair trade practices, and access to a variety of goods and services at competitive prices. Consumers should also have the right to redressal. The Act aims to ensure consumers' rights are protected in the digital age.

Recently, The Central Consumer Protection Authority has issued a notice to Amazon for selling sweets under the misleading name of Shri Ram Mandir Ayodhya Prasad, following a representation by the Confederation of All India Traders (CAIT). The action is based on the Consumer Protection (e-commerce) Rules, 2020, which prohibit any unfair trade practices, including misleading advertisements, in the course of business on Amazon's platform or otherwise.

Global standards for consumer protection are dynamic and responsive to emerging challenges, including technological advancements and changes in consumer behavior. Cooperation among nations, international organizations, and consumer advocacy groups is vital for maintaining and enhancing these standards in an interconnected global marketplace.