CONSUMER PROTECTION ACT,

2019

DR. VANDANA
 HISTORY

• Consumer Protection Act was passed in 1986. Then many amendments were made to meet the need of
the time. And later due to growth of internet, digital technology, new marketing and distribution methods,
advertisement, e-commerce, there was need of a complete new Act providing more strict provisions.

• the Indian Parliament, on 9 August 2019, passed the landmark Consumer Protection Bill, 2019 which
aims to provide the timely and e ective administration and settlement of consumer disputes

• It includes some new provisions as to ...

1. New de nition of consumer include online purchasing.
2. De nition of goods include food.
3. Provisions covering 'endorsement' of goods and services.
4. De nition of 'electronic service provider'.
5. Provisions for 'product liability' and 'product liability action' for goods and services.
6. Wide de nition of 'unfair trade practice'.
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 7. New de nition of 'harm'.
8 Central Consumer Protection
Authority.
9. Changes in pecuniary jurisdiction.
10. Civil and Criminal jurisdiction
11.Electronically ling of complaint.
12.Mediation.
13.More powers to District
Commission.
14. Offences and Penalties.
.

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Position prior to Act of 1986

• Non awareness of consumer

• Delay in judicial proceeding
• Expensive judicial proceeding
• Unprotected and un united consumers.
• United and strong traders
• Tolerance capacity of consumers
Objectives of the Act

• Public bene t
• Provide remedy
• Recognize rights
• Cheap remedy
• Special machinery
• No complicated proceeding
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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.
SECTION 2(5)- COMPLAINANT
(i) a consumer; or
ii) any voluntary consumer association registered under any law for
the time being in force; or
(iii) the Central Government or any State Government; .
(iv) the Central Authority; or
(v) one or more consumers, where there are numerous consumers
having the same interest; or
(vi) in case of death of a consumer, his legal heir or legal
representative; or
(vii) in case of a consumer being a minor, his parent or legal
guardian;
2(6) Complaint

2(6) "Complaint" means any allegation in writing made by a complainant that-

(i) an unfair trade practice or a restrictive trade practice has been adopted by (any trader or service provider ;
(i) the goods bought by him or agreed to be bought by him] suffer from one or more defects;
(ili) the services hired or availed of or agreed to be hired or availed of by
him suffer from any de ciency
(iv) a trader or the 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;
(b) displayed on the goods or any package containing such goods;
(c) displayed on the price list exhibited by him by or under any law for the time being in force;
(d) agreed between the parties;.
(V) goods which will be hazardous to life and safety when used, are being-offered for sale to the public-
(a) in contravention of any standard 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.
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 2 (7) Consumer

(d) "consumer" means any person who-

(i) 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 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;
(ii) hires or avails of any service 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
bene ciary of such service other than the person who hires or avails of the services for
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 rst mentioned
person, but does not include a person who avails of such service for any commercial purpose.
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2(8) "consumer dispute" means a dispute where the person against whom a complaint
has been made, denies or disputes the allegations contained in the complaint;

2(9) CONSUMER RIGHTS

(i) the right to be protected against the marketing of goods, products or services which are
hazardous to life and property;
ii) the right to be informed about the quality, quantity, potency, purity, standard and price of
goods, products or services, as the case may be, so as to protect the consumer against
;
unfair trade practices;
(iii) the right to be assured, wherever possible, access to a variety of goods, products or
services at competitive prices;
(iv) the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate fora;
(v) the right to seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers; and
(vi) the right to consumer awareness;
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
or under any contract or as is claimed by the trader in any manner whatsoever in
relation to any goods or product.

De ciency - Section 2(11)

De ciency 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 or has been undertaken to be performed by a person in pursuance of a
contract in relation to any service and includes -
any act of negligence or omission or commission by such person which causes loss
or injury to the consumer; and
deliberate withholding of relevant information by such person to the consumer.
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2(22) "harm"

2(22) "harm",
', in relation to a product liability, includes—
(i) damage to any property, other than the product itself;
() personal injury, illness or death;
(iii) mental agony or emotional distress attendant to personal injury or illness or damage to property; or
(iv) any loss of consortium or services or other loss resulting from a harm referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii),
but shall not include any harm caused to a product itself or any damage to the property on account of breach of warranty conditions or any
commercial or economic loss, including any direct, incidental or consequential loss relating thereto;

2(23) "injury" means any harm whatever illegally caused to any person, in body, mind or property;
• 2(24) "manufacturer" means a person who-tion
(i) makes any goods or parts thereof; or
(i) assembles any goods or parts thereof made by others;
or
(iii) puts or causes to be put his own mark on any goods made by any other person;

2(25) "mediation" means the process by which a mediator mediates the consumer disputes;
2(26) "mediator" means a mediator referred to in section 75;
2(28) "misleading advertisement"

2(28) "misleading advertisement" in relation to any product or service, means an

advertisement, which—
(i) falsely describes such product or service; or
(i) gives a false guarantee to, or is likely to mislead the consumers as to the
nature, substance, quantity or quality of such product or service; or
(iii) conveys an express or implied representation which, if made by the
manufacturer or seller or service provider thereof, would constitute an unfair trade
practice; or
(iv) deliberately conceals important information;
2(31) "person"

2(31) "person" includes—

(i) an individual;
(ii) a rm whether registered or not;
(iii) a Hindu undivided family;
(iv) a co-operative society;
ler Protection
(v) an association of persons whether registered under the Societies
Registration Act, 1860 or not;
(vi) any corporation, company or a body of individuals whether incorporated or not;
(vii) any arti cial juridical person, not falling within any of the preceding sub-
clauses;
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2(33) "product"
2(33) "product" means any article or goods or substance or raw material or any extended cycle of such product, which
may be in gaseous, liquid, or solid state possessing intrinsic value which is capable of delivery either as wholly
assembled or as a component part and is produced for introduction to trade or commerce, but does not include human
tissues, blood, blood products and organs;
2(36) "product manufacturer" (iv) makes a product and sells,
2(36) "product manufacturer" means a distributes, leases, installs, prepares,
person who— packages, labels, markets, repairs,
(i) makes any product or parts thereof; maintains such product or is otherwise
or involved in placing such product for
() assembles parts thereof made by commercial purpose; or
others; or (v) designs, produces, fabricates,
(iii) puts or causes to be put his own constructs or re-manufactures any
mark on any products made by any product before its sale; or
other person; or (vi) being a product seller of a product,
is also a manufacturer of such product;
 2(37) "product seller" sale or use of a product is only incidental thereto, but furnishing
2(37) "product seller", in relation to a product, means a person of opinion, skill or services being the essence of such
who, in the course of business, imports, sells, distributes, transaction;
leases, installs, prepares, packages, labels, markets, repairs, (c) a person who—
maintains, or otherwise is involved in placing such product for (1) acts only in a nancial capacity with respect to the sale of the
commercial purpose and includes— product;
(i a manufacturer who is also a product seller; or (Il) is not a manufacturer, wholesaler, distributor, retailer, direct
(i) a service provider, seller or an electronic service provider;
tection (III) leases a product, without having a reasonable opportunity to
but does not include— inspect and discover defects in the product, under a lease
(a) a seller of immovable property, unless such person is arrangement in which the selection, possession, maintenance,
engaged in the and operation of the product are controlled by a person other
sale of constructed house or in the construction of homes or than the lessor;
ats;
(b) a provider of professional services in any transaction in
which, the 2(38) "product service provider", in relation to a product,
means a person who provides any service in respect of such
product;
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2 (41) "restrictive trade practice" in providing the services which has led
(41) "restrictive trade practice" means or is likely to lead to rise in the price;
a trade practice which tends to bring (il) any trade practice which requires a
about manipulation of price or its consumer to buy, hire or avail of any
conditions of delivery or to affect ow goods or, as the case may be, services
of supplies in the market relating to as condition precedent for buying,
goods or services in such a manner as hiring or availing of other goods or
to impose on the consumers unjusti ed services;
costs or restrictions and shall include—
(i) delay beyond the period agreed to
by a trader in supply of such goods or
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2(46) "unfair contract" (iii) refusing to accept early repayment of debts on
2(46) "unfair contract" means a contract between payment of applicable penalty; or
a manufacturer or trader or service provider on (iv) entitling a party to the contract to terminate
one hand, and a consumer on the other, having such contract unilaterally, without reasonable
such terms which cause signi cant change in the cause; or
rights of such consumer, including the following, (v) permitting or has the effect of permitting one
namely:— party to assign the contract to the detriment of the
(i) requiring manifestly excessive security deposits other party who is a consumer, without his
to be given by a consumer for the performance of consent; or
contractual obligations; or (vi) imposing on the consumer any unreasonable
() imposing any penalty on the consumer, for the charge, obligation or condition which puts such
breach of contract thereof which is wholly consumer to disadvantage;
disproportionate to the loss occurred due to such
breach to the other party to the contract; or
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2(47) "unfair trade practice" (B) a promise to replace, maintain or repair an article or any part
2(47) "unfair trade practice" means a trade practice which, for the thereof or to repeat or continue a service until it has achieved a
purpose of promoting the sale, use or supply of any goods or for speci ed result,
the provision of any service, adopts any unfair method or unfair or if such purported warranty or guarantee or promise is materially
deceptive practice including any of the following practices, namely: misleading or if there is no reasonable prospect that such
— warranty, guarantee or promise will be carried out;
(i) making any statement, whether orally or in writing or by visible (i) materially misleads the public concerning the price at which a
representation including by means of electronic record, which— product or like products or goods or services, have been or are,
(a) falsely represents that the goods are of a particular standard, ordinarily sold or provided, and, for this purpose, a representation
quality, quantity, grade, composition, style or model; as to price shall be deemed to refer to the price at which the
(b) falsely represents that the services are of a particular standard, product or goods or services has or have been sold by sellers or
quality or grade; provided by suppliers generally in the relevant market unless it is
(c) falsely represents any re-built, second-hand, renovated, clearly speci ed to be the price at which the product has been sold
reconditioned or old goods as new goods; or services have been provided by the person by whom or on
(d) represents that the goods or services have sponsorship, whose behalf the representation is made;
approval, performance, characteristics, accessories, uses or (i) gives false or misleading facts disparaging the goods, services
bene ts which such goods or services do not have; or trade of another person.
(e) represents that the seller or the supplier has a sponsorship or Explanation.— For the purposes of this sub-clause, a statement
approval or af liation which such seller or supplier does not have; that is,—
(f) makes a false or misleading representation concerning the need (A) expressed on an article offered or displayed for sale, or on its
for, or the usefulness of, any goods or services; wrapper or container; or
(g) gives to the public any warranty or guarantee of the (B) expressed on anything attached to, inserted in, or
performance, ef cacy or length of life of a product or of any goods accompanying, an article offered or displayed for sale, or on
that is not based on an adequate or proper test thereof: anything on which the article is mounted for display or sale; or
Provided that where a defence is raised to the effect that such (C) contained in or on anything that is sold, sent, delivered,
warranty or guarantee is based on adequate or proper test, the transmitted or in any other manner whatsoever made available to a
burden of proof of such defence shall lie on the person raising member of the public, shall be deemed to be a statement made to
such defence the public by, and only by, the person who had caused the
(h) makes to the public a representation in a form that purports to statement to be so expressed, made or contained;
be—
(A) a warranty or guarantee of a product or of any goods or
services; or
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Comparative Analysis of Consumer Protection Act: 1986 and 2019

Provision Consumer Protection Act,1986 Consumer Protection Act, 2019

Regulator No Central Regulator Central Consumer Protection

Authority to be set up.

Filing of Complaint A complaint needs to be led in the consumer A complaint can be led from anywhere or from
court under whom jurisdiction of the seller falls where the consumer resides.
under
Mediation No Provision Courts can work towards settlement through
mediation cells.

Jurisdiction The jurisdiction at District level was complaints District level authorities can take-up complaints
worth of Rs. 20 with goods and services worth up to Rs.1
Lakh crore.
Product Liability No Provision Consumers have the right to seck
compensation for any harm caused.

E-Commerce No Provision E-Commerce transactions will come under the

provisions involving direct sales.

Video No Provision Consumers can seek hearing through Video

Conferencing Conference.
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What are Consumer Redressal Forums ?
Consumer Disputes Redressal 2.Any unfair or restrictive trade
Commission: practices
• The consumer protection act 2019 3.Sale of hazardous goods and
has a provision for the establishment services which may be hazardous to
of Consumer Dispute Redressal life.
Commission ( CDRCs) at the 4.Sale of defective goods or services
national, state and district levels.
• The CDRCs will entertain complaints
related to ;
1.Overcharging or deceptive charging
Pecuniary Jurisdiction of CDRCs District CDRC
• The Act has provided criteria's of • Does not exceed Rs.1 Crore
Consumer Dispute Redressal
Commission (CDRCs) State CDRC
Each of the three level of CDRCs will More than Rs.1 Crore but less than
have varying jurisdiction based on the Rs.10 Crores
value of goods and services for which
the complaint has arisen - National CDRC
More than Rs.10 Crores
DISTRICT COMMISSION
This the lowest rung in the redressal commissions that consumers can approach. The State Government, under section 28(1)
establishes at least one district consumer dispute redressal commission in every district of the state. If the government deems t,
it can even establish more than one district commission in a district. Every district commission needs to have a minimum of one
president and two members but can have more members after discussing it with the Central government. If your redressal value
is 1 crore or less than that, then you can approach the district commission.

Who can le a complaint at the district commission?

The following people can le a complaint at the commission under section 35(1) of the Act:

The consumer
1) To whom such goods are delivered, or sold or agreed to be sold or such service which has been provided or has been agreed
to be provided.
ii) Who alleges unfair trade practises in respect of such goods.

Consumer Association
Any voluntary consumer association registered under the law. It doesn't matter if the consumer is part of such association or not.

One or more consumers appearing on behalf of all consumers with a common interest
These consumers would rst need to get permission from the District
Commission to proceed with the complaint in such a manner

The Central Government, The State Government or the Central Authority as the case might be
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 Under Section 34(2), a complaint can be led at the District
Court under within whose local limits: On ling the complaint, it is necessary for the Commission
• The opposite party or each of the opposition parties, in to admit or reject the complaint within 21 days of receiving
case there are more than one, normally reside, or carry on the complaint. It is legally prohibited under Section 36 for
business, or have a branch or personally work for gain. the commission to reject a complaint without rst hearing
• Any of the opposite parties ordinarily reside, or carry on the complainant. It is also necessary for every proceeding
business, or personally work for gain. Provided, the to be presided by the President and one member at least.
permission of the district commission is taken. Where the member who has been sitting for a particular
• Where the cause of action wholly or partly arises. proceeding is absent, the proceeding can be resumed with
• Where the complainant resides or personally works for another method.
gain
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Once the complaint is admitted, the commission must: If any of the parties dispute the correctness of the nding of
• Refer a copy of the complaint, within 21 days of the complaint the laboratory, then the parties must be directed to submit
being admitted, to the opposite party and direct it to give its their objections in writing to the commission:
version of the story within 30 days or the extended period • Give a reasonable opportunity to the opposite party or the
granted by the commission. initiating party to be heard regarding their objections.
• If the opposite party disputes the allegation or fails and omits to • If the above-mentioned procedure can't be followed due to the
take any action regarding the complaint, then district lack of goods to take a sample from or if the defect alleged is in
commission must deal with it in the following ways. the service of the opposite party.
Must seal the allegedly defective goods, and send them to the Then the commission shall settle the dispute:
appropriate laboratory after authenticating it in the manner • On the basis of evidence provided by the complainant or the
required. It must direct the laboratory to nd if there is any opposite party if the
genuine fault with the goods and report its ndings to the • opposite party disputes the allegation.
commission within 45 days or how much ever time granted by • Take an ex parte decision if the opposite party omits to do
the commission. anything regarding the
• Before the goods go to the library, the complainant must be • allegations.
directed to deposit the sum of money required for testing in the • • Decide the case on its merits if the complainant fails to show
credit of the commission. up for the hearing.
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 • If it's inconvenient for the party to show up to • If a party is aggrieved by the order of the
the commission in person, you can submit an district commission then they may prefer an
application for hearing or examination of appeal to the State Commission within 45 days
parties through video conferencing and if the of receiving such order. Even though the State
district commission agrees with the reasons Commission may entertain the plea after 45
then it may allow so after recording the reason. days if suf cient reason is given by the party.
• The commission must deal with the case as • The State Commission shall not hear the
expeditiously as possible and endeavour must appeal of the party if the party has to pay a
be done to dispose of the case within three certain amount ordered to be paid by the
months if no analysis or testing is required and District Commission. Minimum 50% of the
ve months if analysis and testing are required. amount must be paid before the State
• The District commission has the same power Commission will hear the appeal.
as the district court under this act.
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 STATE COMMISSION

The state government establish State commission under section 42(1)of the act, in the state through
noti cation and can even establish regional branches if it seems t. Each state commission shall consist of
one President snd no less than four members and maximum of as many members required.

According to section 47, the State Commission has the jurisdiction to entertain:
(i) complaints where the value of the goods or services paid as consideration, exceeds rupees one crore but
does not exceed rupees ten crores
(ii) complaints against unfair contracts, where the value of goods or services paid as consideration does not
exceed ten crore rupees;
(ili) appeals against the orders of any District Commission within the State;
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 • Apart from that, it also has the jurisdiction to call for the • State Commission disposes of the case in the exact same
records and pass appropriate orders in any consumer method as the District Commission and also holds the
dispute which is pending before or has been decided by power to review its own cases
any District Commission within the State, where it appears • If aggrieved by the decision, the aggrieved party may
to the State Commission that such District Commission has prefer an appeal to the National Commission within 30
exercised a jurisdiction not vested in it by law, or has failed days of receiving the order from the state commission. If
to exercise a jurisdiction so vested or has acted in exercise suf cient reason is shown then the national commission
of its jurisdiction illegally or with material irregularity. can also entertain the plea after the thirty days.
• A bench of the State Commission must consist of a • The national commission shall not listen to an appeal if the
President and one member or more if the president deems person who has to pay a particular amount from the order
it t. of the state commission, has not paid at least 50% of the
• The State Commission also has the power to shift amount ordered to be paid.
proceedings from one district commission to another under • The appeal must be dealt with expeditiously and
section 48. The State Commission can do that on its own endeavours must be made to dispose of the appeal within
cognizance or through an application led by the parties. 90 days from its date of admission.
But it must be to serve the purpose of justice.
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 NATIONAL COMMISSION
• Under section 53(1) ,the central government establishes national commission through noti cation.
• The National Commission must have one president and at least 4 members with the maximum being whatever is
prescribed by the national government.
• The National Commission has jurisdiction, under section 58 of the Act:
(a) to entertain:
(i) complaints where the value of the goods or services paid as consideration exceeds rupees ten crores: Provided
that where the Central Government deems it necessary so to do, it may prescribe such other value, as it deems t;
(ii) complaints against unfair contracts, where the value of goods or services paid as consideration exceeds ten
crore rupees;
(iii) appeals against the orders of any State Commission;
(iv) appeals against the orders of the Central Authority; and
(b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or
has been decided by any State Commission where it appears to the National Commission that such State
Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so
vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

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• A bench in the National Commission must at least may be, or by any other mode of transmission of
consist of the President and one member but there documents including electronic means:
can be more members if the President deems it t. If the postal delivery guy acknowledges that the post
• The National Commission disposes of a case in the was refused by the party then the commission must
same manner as the district commission and also acknowledge the party as duly served under 65(2).
reserves the right to review its cases suo moto or
based on an application led by one of the parties.
• Section 65(1) also states -
All notices, required by this Act to be served, shall be
served by delivering or transmitting a copy thereof by
registered post acknowledgment due addressed to
opposite party against whom complaint is made or to
the complainant by speed post or by such courier
service, approved by the District Commission, the State
Commission or the National Commission, as the case
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Territorial Jurisdiction -
• Earlier in the CORPA 1986, the
complaint could only be registered where Alternate Dispute Resolution -
the opponent party against whom the • To ensure a speedy resolution to
complaint has to be registered resides or disputes the 2019 act has provided a new
carry their business whereas the hybrid provision by which both the parties
provision allows to le complaint where mutually can go for mediation. For this
the complainant resides or personally purpose, the act provides for
work for pro t. establishment of consumer mediation
cells by respective State Governments in
each District, State and National
Commission by the Central Government.
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 What is the appellate process? Limitations of CORPA 2019
• • The parties involved in the complaint have • Trust cannot Lodge a Complaint under the
the right to appeal in the higher forums in Consumer Protection Act - Since
respect to any ruling provided in the 'trust' doesn't fall under the de nition of
respective CDRCs. neither consumer nor complainant and nor
• Any appeals from the district CDRC would be even 'person'.
heard in the State CDRC. • Insurance Company cannot Reject Claims on
• Appeals from State CDRCs would be taken Technical Grounds
up in National CDRC. • Corporate Bodies can be sued under the
• The nal appeal beyond National CDRC Consumer Protection Act
would be taken up by the Supreme Court. • Educational institutions must refund the extra
fee paid
• Sympathy should not in uence compensation
• Both parents and minor can claim for
compensation under the Consumer
Protection Act
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REMEDIES
(a) Removal of Defects:
If after proper testing the product proves to be defective, then the remove its defects' order can be passed by the authority concerned.

(b) Replacement of Goods:

Orders can be passed to replace the defective product by a new non-defective product of the same type.

(c) Refund of Price:

Orders can be passed to refund the price paid by the complainant for the product.

• (d) Award of Compensation:

If because of the negligence of the seller a consumer suffers physical or any other loss, then compensation for that loss can be demanded for.

(e) Removal of De ciency in Service:

If there is any de ciency in delivery of service, then orders can be passed to remove that de ciency. For instance, if an insurance company makes unnecessary
delay in giving nal touch to the claim, then under this Act orders can be passed to immediately nalise the claim.

• (f) Discontinuance of Unfair/Restrictive Trade Practice:

If a complaint is led against unfair/restrictive trade practice, then under the Act that practice can be banned with immediate effect. For instance, if a gas company
makes it compulsory for a consumer to buy gas stove with the gas connection, then this type of restrictive trade practice can be checked with immediate effect.

• (g) Stopping the Sale of Hazardous Goods:

Products which can prove hazardous for life, their sale can be stopped.

(h) Withdrawal of Hazardous Goods from the Market:

On seeing the serious adverse effects of hazardous goods on the consumers, such goods can be withdrawn from the market. The objective of doing so that such
products should not be offered for sale.

• (i) Payment of Adequate Cost:

In the end, there is a provision in this Act that the trader should pay adequate cost to the victim concerned.
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OFFENCES AND PENALTIES
 S. 88. Whoever, fails to comply with any direction of the one year and with ne which may extend to three lakh
Central Authority under sections 20 and 21, shall be punished rupees;
with imprisonment for a term which may extend to six months
or with ne which may extend to twenty lakh rupees, or with • (c) causing injury resulting in grievous hurt to the consumer,
both. with imprisonment for a term which may extend to seven
years and with ne which may extend to ve lakh rupees; and
S. 89. Any manufacturer or service provider who causes a
false or misleading advertisement to be made which is • (d) results in the death of a consumer, with imprisonment for
prejudicial to the interest of consumers shall be punished with a term which shall not be less than seven years, but which
imprisonment for a term which may extend to two years and may extend to imprisonment for life and with ne which shall
with ne which may extend to ten lakh rupees; and for every not be less than ten lakh rupees.
subsequent offence, be punished with imprisonment for a (2) The offences under clauses (c) and (d) of sub-section (1)
term which may extend to ve years and with ne which may shall be cognizable and non-bailable.
extend to fty lakh rupees.
(3) Notwithstanding the punishment under sub-section (1),
S. 90. (1) Whoever, by himself or by any other person on his the court may, in case of rst conviction, suspend any licence
behalf, manufactures for sale or stores or sells or distributes issued to the person referred to in that sub-section, under
or imports any product containing an adulterant shall be any law for the time being in force, for a period up to two
punished, if such act— years, and in case of second or subsequent conviction,
cancel the licence
• (a) does not result in any injury to the consumer, with
imprisonment for a term which may extend to six months and
with ne which may extend to one lakh rupees;

• (b) causing injury not amounting to grievous hurt to the

consumer, with imprisonment for a term which may extend to
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 S. 91. (1) Whoever, by himself or by any other person on his S. 93. The Director General or any other of cer, exercising
behalf, manufactures for sale or stores or sells or distributes or powers under section 22, who knows that there are no
imports any spurious goods shall be punished, if such act— reasonable grounds for so doing, and yet—
(a) causing injury not amounting to grievous hurt to the (a) searches, or causes to be searched any premises; or
consumer, with imprisonment for a term which may extend to (b) seizes any record, register or other document or article,
one year and with ne which may extend to three lakh rupees. shall, for every such offence, be punished with imprisonment
(b) causing injury resulting in grievous hurt to the consumer, for a term which may extend to one year, or with ne which
with imprisonment for a term which may extend to seven years may extend to ten thousand rupees or with both.
and with ne which may extend to ve lakh rupees; S. 100. The provisions of this Act shall be in addition to and not
(c) results in the death of a consumer, with imprisonment for a in derogation of the provisions of any other law for the time
term which shall not be less than seven years, but may extend being in force.
to imprisonment for life and with ne which shall not be less
than ten lakh rupees.
(2) The offences under clauses (b) and (c) of sub-section (1)
shall be cognizable and non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the
court may, in case of rst conviction, suspend any licence
issued to the person referred to in that sub-section, under any
law for the time being in force, for a period up to two years, and
in case of second or subsequent conviction, cancel the licence.i
S. 92. No cognizance shall be taken by a competent court of
any offence under sections 88 and 89 except on a complaint
led by the Central Authority or any of cer authorised by it in
this behalf.
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CASE LAWS
 1. In the case of Spring Meadows Hospital & Anr v Harjol Anita Sena Fernandes. In the particular case, the
Ahluwalia, the court was presented with the question of complainant was negligently treated by the doctor
whether parents who take their child to the hospital are resulting in a gauze inside her stomach creating an
also consumers along with the child. The court answered infection. The complainant got tested 9 years after the
in the af rmative stating that when parents take their child initial operation in the duration of which she was under
to the hospital, they are hiring the services of the doctor constant pain. The respondents contended that since she
for their child and therefore come under the de nition of did not visit the doctor even once after the operation and 9
the consumer while the child who is a bene ciary of the years had passed so the entire complaint was barred by
service also becomes a consumer. The court furthermore limitation
rejected the contention of the respondent that So if the damage in icted by the doctor due to negligence is
compensation can only be awarded to one of the parties patent, then the cause of action arises on the date the act
i.e. the child and stated that since the child being was committed but, on the other hand, if the act did was
bene ciary faced loss due to the negligence and the latent, then the cause of action arises when the victim
parent being hirer of the service also face loss in the form realises the negligence.
of mental agony. Both of them are liable to be awarded The court applying the rule said that the negligence in the
compensation. case was latent, and therefore the complaint was within
2. The discovery rule used to decide when the cause of
arises in cases of a medical emergency was rst
propounded in Ayers v. Morgan [397 Pa.282, 154A.2d
788] by the US courts and was adopted by the Indian
legal jurisprudence In the case of V.N. Shrikhande vs
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4. In the case of Sehgal School amount and directed the coaching
of Competition v Dalbir Singh, institute to refund the extra
the complainant had paid the amount due to the complainant.
entire fees to the coaching
institute but left halfway since the
coaching institute was not
teaching the subjects he was
interested in learning. On asking
for the refund of the extra amount
paid, the institute denied which
prompted the complaint with the
national commission. The
commission stated that coaching
should not charge a lump sum
MEDIATION
Empanelment of mediators.
S. 75. (1) For the purpose of mediation, the National nomination of panel
Commission or the State Commission or the District • 76. The District Commission, the State Commission or the
Commission, as the case may be, shall prepare a panel of the National Commission shall, while nominating any person from
mediators to be maintained by the consumer mediation cell the panel of mediators referred to in section 75, consider his
attached to it, on the recommendation of a selection suitability for resolving the consumer dispute involved.
committee consisting of the President and a member of that
Commission.
2) The quali cations and experience required for Duty of mediator
empanelment as mediator, the procedure for empanelment, S. 77. It shall be the duty of the mediator to disclose
the manner of training empanelled mediators, the fee payable (a) any personal, professional or nancial interest in the
to empanelled mediator, the terms and conditions for outcome of the consumer dispute;
empanelment, the code of conduct for empanelled mediators, (b) the circumstances which may give rise to a justi able
the grounds on which, and the manner in which, empanelled doubt as to his independence or impartiality; and
mediators shall be removed or empanelment shall be (c) such other facts as may be speci ed by regulations.
cancelled and other matters relating thereto, shall be such as
may be speci ed by regulations.
(3) The panel of mediators prepared under sub-section (1)
shall be valid for a period of ve years, and the empanelled
mediators shall be eligible to be considered for re-
empanelment for another term, subject to such conditions as
may be speci ed by regulations.
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Procedure for mediation. (2) The mediator shall prepare a settlement report of the
S. 79. (1) The mediation shall be held in the consumer settlement and forward the signed agreement along with such
mediation cell attached to the District Commission, the State report to the concerned
Commission or the National Commission, as the case may be. Commission.
(2) Where a consumer dispute is referred for mediation by the (3) Where no agreement is reached between the parties within
District Commission or the State Commission or the National the speci ed time or the mediator is of the opinion that
Commission, as the case may be, the mediator nominated by settlement is not possible, he shall prepare his report
such Commission shall have regard to the rights and accordingly and submit the same to the concerned
obligations of the parties, the usages of trade, if any, the Commission.
circumstances giving rise to the consumer dispute and such
other relevant factors, as he may deem necessary and shall be S. 81. (1) The District Commission or the State Commission or
guided by the principles of natural justice while carrying out the National Commission, as the case may be, shall, within
mediation. seven days of the receipt of the settlement report, pass
(3) The mediator so nominated shall conduct mediation within suitable order recording such settlement of consumer dispute
such time and in such manner as may be speci ed by and dispose of the matter accordingly.
regulations. (2) Where the consumer dispute is settled only in part, the
District Commission or the State Commission or the National
settlement through mediation Commission, as the case may be, shall record settlement of
S. 80. (1) Pursuant to mediation, if an agreement is reached the issues which have been so settled and continue to hear
between the parties with respect to all of the issues involved in other issues involved in such consumer dispute.
the consumer dispute or with respect to only some of the (3) Where the consumer dispute could not be settled by
issues, the terms of such agreement shall be reduced to mediation, the District Commission or the State Commission or
writing accordingly, and signed by the parties to such dispute the National Commission, as the case may be, shall continue
or their authorised representatives. to hear all the issues involved in such consumer dispute.
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PRODUCT LIABILTY
 Application
• S. 82. This Chapter shall apply to every
claim for compensation under a product
liability action by a complainant for any
harm caused by a defective product
manufactured by a product manufacturer
or serviced by a product service provider
or sold by a product seller.
Liability of product manufacturer
S. 84. (1) A product manufacturer shall be liable in a product liability action, if—
(a) the product contains a manufacturing defect; or
(b) the product is defective in design; or
(c) there is a deviation from manufacturing speci cations; or
(d) the product does not conform to the express warranty; or
(e) the product fails to contain adequate instructions of correct usage to prevent any harm or any
warning regarding improper or incorrect usage.
(2) A product manufacturer shall be liable in a product liability action even if he proves that he
was not negligent or fraudulent in making the express warranty of a product.

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 Liability of product sellers
S. 86. A product seller who is not a product manufacturer shall be liable in a
product liability action, if—
(a) he has exercised substantial control over the designing, testing, manufacturing,
packaging or labelling of a product that caused harm; or
(b) he has altered or modi ed the product and such alteration or modi cation was
the substantial factor in causing the harm; or
(c) he has made an express warranty of a product independent of any express
warranty made by a manufacturer and such product failed to conform to the
express warranty made by the product seller which caused the harm;
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 Exception to product liability action
S. 87. (1) A product liability action cannot be brought against the product seller if,
at the time of harm, the product was misused, altered, or modi ed.
(2) In any product liability action based on the failure to provide adequate warnings
or instructions, the product manufacturer shall not be liable, if—
(a) the product was purchased by an employer for use at the workplace and the
product manufacturer had provided warnings or instructions to such employer;
(b) the product was sold as a component or material to be used in another product
and necessary warnings or instructions were given by the product manufacturer to
the purchaser of such component or material, but the harm was caused to the
complainant by use of the end product in which such component or material was
used;

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