MODULE 4

Consumer Protection Act-Consumerism- Objectives of the Act- Rights of A Consumer Consumer

Protection Council-Central and State- Dispute Redressal Agencies - Forums and Commission-Filing of
Appeals at The District Level – State Level - National Level- Other legislations: National Food Security
Act, 2013

A consumer is one that buys good for consumption and not for the resale or commercial
purpose. The consumer also hires service for consideration.

 Consumerism refers to the tendency of people living in a capitalist economy to

engage in a lifestyle of excessive materialism that revolves around reflexive, wasteful, or
conspicuous overconsumption.
Consumerism refers to the consumer ideology, which revolves around a social and economic
structure in which customers are encouraged to buy anything, regardless of whether they
need it or not.

 Consumer rights are the rights given to the consumers to protect him/her from
being cheated by the manufacturer or the salesman.

Consumer protection means safeguarding the interest and rights of consumers. In other
words, it refers to the measures adopted for the protection of consumers from unscrupulous
and unethical malpractices by the business and to provide them speedy redressal of their
grievances. The most common business malpractices leading to consumer exploitation are
given below.
1. Sale of adulterated goods i.e., adding something inferior to the product being sold.
2. Sale of spurious goods i.e., selling something of little value instead of the real product.
3. Sale of sub-standard goods i.e., sale of goods which do not confirm to prescribed
4. quality standards.
5. Sale of duplicate goods.
6. Use of false weights and measures leading to underweight.
7. Hoarding and black-marketing leading to scarcity and rise in price.
8. Charging more than the Maximum Retail Price (MRP) fixed for the product.
9. Supply of defective goods.
10. Misleading advertisements i.e., advertisements falsely claiming a product or service to be
of superior quality, grade or standard.
11. Supply of inferior services i.e., quality of service lower than the quality agreed upon.
  Consumer Protection Act
Consumer Protection Act 1986 refers to a law meant for preserving the rights of the
consumers and resolving their disputes faster as and when they arise. It aims to protect the
interest of consumers in India by availing safeguards against different types of exploitation.

 Caveat emptor is a Latin phrase that translates to "let the buyer

beware." It means that an individual buys at their own risk. The
principle states that the buyer alone is responsible for checking the
quality and suitability of goods before a purchase is made:
The Consumer Protection Act,1986 (COPRA) was replaced by the Consumer Protection Act,
2019.

This law allows for the establishment of an authoritative body called the Central Consumer
Protection Authority or CCPA.
This body examines the unfair practices in trade and advertisements that provide misleading
information, and other such illegal or unethical aspects. It shall take necessary actions and/or
provide apt solutions to address grievances arising out of such practices.

 Consumer Rights and Responsibilities?

According to the Consumer Protection Act definition, consumers are given specific rights and
obligations that they can exercise as well as have to abide by regularly.
The Rights of the Consumer

 Right to Safety- Before buying, a consumer can insist on the quality and guarantee of
the goods. They should ideally purchase a certified product like ISI or AGMARK.
 Right to Choose- Consumer should have the right to choose from a variety of goods and
in a competitive price.
 Right to be informed- The buyers should be informed with all the necessary details of
the product, make her/him act wise, and change the buying decision.
 Right to Consumer Education- Consumer should be aware of his/her rights and avoid
exploitation. Ignorance can cost them more.
 Right to be heard- This means the consumer will get due attention to express their
grievances at a suitable forum.
 Right to seek compensation- The defines that the consumer has the right to seek
redress against unfair and inhumane practices or exploitation of the consumer.
The Responsibilities of the Consumer

 Responsibility to be aware – A consumer has to be mindful of the safety and quality of

products and services before purchasing.
 Responsibility to think independently– Consumer should be well concerned about
what they want and need and therefore make independent choices.
 Responsibility to speak out- Buyer should be fearless to speak out their grievances
and tell traders what they exactly want
 Responsibility to complain- It is the consumer’s responsibility to express and file a
complaint about their dissatisfaction with goods or services in a sincere and fair manner.
 Responsibility to be an Ethical Consumer- They should be fair and not engage
themselves with any deceptive practice.
FEATURES OF THE CONSUMER PROTECTION ACT 1986
 It covers all public, private and cooperative sectors.
 Provides for the establishment of consumer protection counsels at district, state, and
central levels.
 Applies to all goods, services, and unfair trade practices unless specifically exempted
by the Central Government.
 Provides Recognition to Six rights of consumers.
 Relief available to Consumers
o Removal of defect from the good
o Replacement of the good
o Refund of the Price paid
o Compensation for loss or injury suffered
o Discontinue unfair trade practice
o Not to offer hazardous good for sale
o To withdraw hazardous good from sale
o To issue corrective advertisement
o To provide adequate costs to parties
o To cease the manufacture of hazardous goods
 The Consumer Protection Act has been recently amended in 2019 with new features
and rights
 KEY HIGHLIGHTS OF THE NEW ACT
o E-commerce transactions – The act widened the definition of consumers i.e.
it now includes any person who buys any good through an offline or online
transaction, teleshopping, or multi-level marketing.
o Product liability – the concept of product liability has been introduced within
its scope, the product service provider, the product manufacturer, and product
seller for any claim for compensation.
o Penalty for misleading advertisements – A penalty of INR 1,000,000 may
be imposed on a manufacturer or endorser for false misleading advertisements.
They may also be punished with an imprisonment of two years for the same.
In case of repeated offense, the fine may extend to INR 5,000,000 and
imprisonment may extend to five years.
o Unfair trade practices – Unfair trade practices include sharing the personal
information of the customer unless such disclosure is made in accordance with
the law.
o Provision of alternation dispute resolution – Provides for mediation as an
alternate dispute resolution for making the process simpler.
 NEW RIGHTS UNDER CONSUMER PROTECTION ACT, 2019
o Right to file a complaint from anywhere
o Right to seek compensation under product liability
o Right to know why a complaint was rejected
o Right to protect the consumer as a class
o Right to seek a hearing using video conferencing
Consumer Disputes Redressal Mechanism under Consumer Protection Act.
The three tier machinery under the Redressal Mechanism of Consumer Protection
Act, 1986 for redressal of consumers grievances consists of:
 The National Consumer Disputes Redressal Commission (NCDRC),
 State Consumer Protection Councils,
 District Consumer Protection Councils.
An appeal from the decision of the district forum can be made to the state commission and an
appeal against the order of the state commission can be made to the National Forum. There
are timelines given for the appeal as there is in cases of any other nature.
In addition to the 3 tier redressal methods of consumer awareness timelines there is also a
timeline of 21 days to decide jurisdiction over a particular case.

The principle of Res judicata also applies to this body and hence the same case cannot be
entertained in more than one forum or if there is a case pending before a civil court then the
same case cannot be entertained by any consumer forum.

The phrase Res Judicata means “a matter adjudged”, or a matter decided. In

other words, the matter before a court has already been resolved by another
court and between the same parties.
As a result, since the case has already been settled by another judge, the court
will dismiss it. Res judicata is a legal principle that refers to both civil and
criminal cases. A suit that has been tried in a previous suit, either directly or
indirectly, cannot be tried again.

1. The Central Government shall, by notification, establish with effect from such
date as it may specify in that notification, the Central Consumer Protection
Council to be known as the Central Council.
(2) The Central Council shall be an advisory council and consist of the
following members, namely:—
(a) the Minister-in-charge of the Department of Consumer Affairs in the
Central Government, who shall be the Chairperson; and
(b) such number of other official or non-official members representing such
interests as may be prescribed.

The National Consumer Disputes Redressal Commission

(NCDRC), India, is a semi-legal commission in India that was set up in
1988 under the Consumer Protection Act of 1986. Its administrative centre is
in New Delhi. The commission is headed by a sitting or retired judge of the
Supreme Court of India. The commission is, as of now, headed by Justice R K
Agrawal, previous adjudicator of the Supreme Court of India.
 o Section 21 of Consumer Protection Act, 1986 places that the National
Consumer will have jurisdiction: To engage an objection valued more
than one crore and furthermore have Appellate and Revisional purview
from the sets of State Commissions or the District fora by and large.
o Section 23 of the Consumer Protection Act, 1986, gives that any
individual aggrieved by a request or an order for NCDRC might favour
an Appeal against such request to the Supreme Court of India within a
time of 30 days.
2. State Consumer Protection Councils
(1) Every State Government shall, by notification, establish with effect
from such date as it may specify in such notification, a State Consumer
Protection Council for such State to be known as the State Council.

(2) The State Council shall be an advisory council and consist of the
following members, namely:—

(a) the Minister-in-charge of Consumer Affairs in the State

Government who shall be the Chairperson;

(b) such number of other official or non-official members

representing such interests as may be prescribed;

(c) such number of other official or non-official members, not

exceeding ten, as may be nominated by the Central
Government.

(3) The State Council shall meet as and when necessary but not less
than two meetings shall be held every year.

(4) The State Council shall meet at such time and place as the
Chairperson may think fit and shall observe such procedure in regard
to the transaction of its business, as may be prescribed.

3. The District Consumer Protection Council :

Section – 8A. (1) The State Government shall establish for every district, by
notification, a council to be known as the District Consumer Protection Council with
effect from such date as it may specify in such notification.
(2) The District Consumer Protection Council (hereinafter referred to as the District
Council) shall consist of the following members, namely:—

(a) The Collector of the district (by whatever name called), who
shall be its Chairman; and
 (b) Such number of other official and non-official members
representing such interests as may be prescribed by the State
Government.

(3) The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district as the
Chairman may think fit and shall observe such procedure in regard to the transaction
of its business as may be prescribed by the State Government.

Benefits of redressal though consumer redressal mechanism or consumer redressal

machinery(Forum):

 The disputes are adjudicated faster under this system hence the case is not pending for
years as in civil courts.

 Less cumbersome process: The process of filing the complaint is simple.

 The complainant can themselves file the complaint and there is no need to be represented
by an advocate.

 The complaint can also be made through post.

 Low cost

Procedure of filing a complaint:

There is a particular consumer redressal mechanism or consumer redressal machinery-

 The first step is to send a legal notice of the grievance to the Respondent.

 Any person can file the complaint on a plain paper after notarising the document.

 The complaint can also be filed through a post addressed to the particular consumer
redressal mechanism or consumer redressal machinery.

 The fee for filing a complaint can be submitted only by a demand draft.

 Four copies of the complaint have to be filed and if there are more than one Respondent
then one copy for each Respondent has to be filed.

 The complaint has to be filed within two years of the cause of action following the consumer
redressal mechanism or consumer redressal machinery. If the consumer is not vigilant
enough for more than two years then he/she is barred by the limitation law.

The National Food Security Act (NFSA) 2013

The National Food Security Act (NFSA) 2013, which was passed on July 5, 2013, represents a paradigm
shift in the aspect of food security, moving away from a welfare-based approach to one based on Rights -
based approach. Up to 75% of the rural population, as well as 50% of the urban population, are legally
entitled to receive subsidised foodgrains through the Targeted Public Distribution System, according to the
Act. Therefore, the Act covers almost two-thirds of the population in order to provide them with heavily
subsidised foodgrains. The National Food Security Act of 2013 (NFSA) is being implemented throughout
all of India’s States and UTs.

Beneficiaries under the National Food Security Act fall into two categories:

 Priority Households (PHH) and

 Antyodaya Anna Yojana (AAY) households:-

AAY households encompass the households headed by widows or disabled persons or persons
aged 60 years or more with no assured means of subsistence or societal support.

o It usually takes into account the households of those below the poverty line too.
o It also includes support for women and children.
Three major pillars that span the full NFSA implementation through TPDS are the foundation of the Index.

1. The NFSA, which assesses coverage, targeting, and Act provisions, forms the first pillar.
2. The second pillar analyses the delivery system while considering the distribution, transportation,
and last-mile delivery of foodgrains to Fair Price Shops (FPS).
3. The department’s nutrition activities are the subject of the third and final pillar.

Objectives of the National Food Security Act

The Act provides for food and nutritional security in the human life cycle approach,
by ensuring access to an adequate quantity of quality food at affordable prices for
people to live a life with dignity and for matters connected therewith or incidental
thereto.

Salient features of the National Food Security Act, 2013

1. Coverage and entitlement under Targeted Public Distribution System (TPDS) : Upto
75% of the rural population and 50% of the urban population will be covered under
TPDS, with uniform entitlement of 5 kg per person per month. However, since
Antyodaya Anna Yojana (AAY) households constitute poorest of the poor, and are
presently entitled to 35 kg per household per month, entitlement of existing AAY
households will be protected at 35 kg per household per month.
2. State-wise coverage : Corresponding to the all India coverage of 75% and 50% in the
rural and urban areas, State-wise coverage will be determined by the Central
Government. Planning Commission has determined the State-wise coverage by using
the NSS Household Consumption Survey data for 2011-12 and also provided the
State-wise "inclusion ratios”.
3. Subsidised prices under TPDS and their revision : Foodgrains under TPDS will be
made available at subsidised prices of Rs. 3/2/1 per kg for rice, wheat and coarse
grains for a period of three years from the date of commencement of the Act.
Thereafter prices will be suitably linked to Minimum Support Price (MSP).
4. In case, any State’s allocation under the Act is lower than their current allocation, it
will be protected upto the level of average offtake during last three years, at prices to
be determined by the Central Government. Existing prices for APL households i.e.
Rs. 6.10 per kg for wheat and Rs 8.30 per kg for rice has been determined as issue
 prices for the additional allocation to protect the average offtake during last three
years.
5. Identification of Households : Within the coverage under TPDS determined for each
State, the work of identification of eligible households is to be done by States/UTs.
6. Nutritional Support to women and children : Pregnant women and lactating mothers
and children in the age group of 6 months to 14 years will be entitled to meals as per
prescribed nutritional norms under Integrated Child Development Services (ICDS)
and Mid-Day Meal (MDM) schemes. Higher nutritional norms have been prescribed
for malnourished children upto 6 years of age.
7. Maternity Benefit : Pregnant women and lactating mothers will also be entitled to
receive maternity benefit of not less than Rs. 6,000.
8. Women Empowerment : Eldest woman of the household of age 18 years or above to
be the head of the household for the purpose of issuing of ration cards.
9. Grievance Redressal Mechanism : Grievance redressal mechanism at the District and
State levels. States will have the flexibility to use the existing machinery or set up
separate mechanism.
10. Cost of intra-State transportation & handling of foodgrains and FPS Dealers' margin :
Central Government will provide assistance to States in meeting the expenditure
incurred by them on transportation of foodgrains within the State, its handling and
FPS dealers’ margin as per norms to be devised for this purpose.
11. Transparency and Accountability : Provisions have been made for disclosure of
records relating to PDS, social audits and setting up of Vigilance Committees in order
to ensure transparency and accountability.
12. Food Security Allowance : Provision for food security allowance to entitled
beneficiaries in case of non-supply of entitled foodgrains or meals.
13. Penalty : Provision for penalty on public servant or authority, to be imposed by the
State Food Commission, in case of failure to comply with the relief recommended by
the District Grievance Redressal Officer.

Definition of Intellectual Property Rights?

The definition of intellectual property rights is any and all rights associated with intangible assets
owned by a person or company and protected against use without consent. Intangible assets refer to
non-physical property, including right of ownership in intellectual property . Examples of intellectual
property rights include:

 Patents

 Domain names

 Industrial design

 Confidential information

 Inventions

 Moral rights

 Database rights
  Works of authorship

 Service marks

 Logos

 Trademarks

 Design rights

 Business or trade names

 Commercial secrets

 Computer software

What Are the Types of Intellectual Property?

There are four main types of intellectual property rights, including patents, trademarks, copyrights,
and trade secrets. Owners of intellectual property frequently use more than one of these types of
intellectual property law to protect the same intangible assets. For instance, trademark law protects
a product’s name, whereas copyright law covers its tagline.

1. Patents

The U.S. Patent and Trademark Office grants property rights to original inventions, from processes to
machines. Patent law protects inventions from use by others and gives exclusive rights to one or
more inventors. Technology companies commonly use patents, as seen in the patent for the first
computer to protect their investment in creating new and innovative products. The three types of
patents consist of:

 Design patents: Protection for the aesthetics of a device or invention. Ornamental design
patents include a product’s shape (Coca-Cola bottle), emojis, fonts, or any other distinct
visual traits.

 Plant patents: Safeguards for new varieties of plants. An example of a plant patent is pest-
free versions of fruit trees. But inventors may also want a design patient if the tree has
unique visual properties.

 Utility patents: Protection for a product that serves a practical purpose and is useful. IP
examples include vehicle safety systems, software, and pharmaceuticals. This was the first,
and is still the largest, area of patent law.

2. Trademarks

Trademarks protect logos, sounds, words, colors, or symbols used by a company to distinguish its
service or product. Trademark examples include the Twitter logo, McDonald’s golden arches, and the
font used by Dunkin.

Although patents protect one product, trademarks may cover a group of products. The Lanham Act,
also called the Trademark Act of 1946, governs trademarks, infringement, and service marks.

3. Copyrights
Copyright law protects the rights of the original creator of original works of intellectual property.
Unlike patents, copyrights must be tangible. For instance, you can’t copyright an idea. But you can
write down an original speech, poem, or song and get a copyright.

Once someone creates an original work of authorship (OWA), the author automatically owns the
copyright. But, registering with the U.S. Copyright Office gives owners a head-start in the legal
system.

4. Trade Secrets

Trade secrets are a company’s intellectual property that isn’t public, has economic value, and carries
information. They may be a formula, recipe, or process used to gain a competitive advantage.

To qualify as a trade secret, companies must work to protect proprietary information actively. Once
the information is public knowledge, then it’s no longer protected under trade secrets laws.
According to 18 USC § 1839(3), assets may be tangible or intangible, and a trade secret can involve
information that’s:

 Business

 Financial

 Technical

 Economic

 Scientific

 Engineering

Two well-known examples include the recipe for Coca-Cola and Google’s search algorithm. Although
a patent is public, trade secrets remain unavailable to anyone but the owner.

IRDA or Insurance Regulatory and Development Authority of India is the apex body that supervises
and regulates the insurance sector in India. The primary purpose of IRDA is to safeguard the interest
of the policyholders and ensure the growth of insurance in the country. When it comes to regulating
the insurance industry, IRDA not only looks over the life insurance, but also general insurance
companies operating within the country.
What is the role and importance of IRDA in the insurance sector?
India began to witness the concept of insurance through a formal channel back in the 1800s and has
seen a positive improvement ever since. This was further supported by the regulatory body that
streamlined various laws and brought about the necessary amendment in the interest of the
policyholders. Below mentioned are the important roles of IRDA -
 First and foremost is safeguarding the policyholder’s interest.
 Improve the rate at which the insurance industry is growing in an organised manner to benefit
the common man.
 To ensure the dealing are carried on in a fair, integral manner along with financial soundness
keeping in mind the competence of the insurance company.
 To ensure faster and a hassle-free settlement of genuine insurance claims.
 To address the grievances of the policyholder through a proper channel.
 To avoid malpractices and prevent fraud.
 To promote fairness, transparency and oversee the conduct of insurance companies in the
financial markets.
 To form a reliable management system with high standards of financial stability.