Consumer Protection Act: Things you need to know

From a small kid of 5 years who goes to buy a toffee from the nearby shop to the aged uncle who goes for regular check-ups, every single person is a consumer. While one is a consumer of goods, the other is receiving services. But is that all that makes a person a consumer? 

In this article, we will learn about who is a consumer. Is a consumer the same as a customer? But more importantly, we will see at length what constitutes goods and services and what happens when there is a deficiency in either. 

What do you mean by Consumer?

In the language of law (The Consumer Protection Act, 2019), a consumer is someone who:

• Buys any goods for consideration, or

• Avails any service for consideration

What about the person who buys for the purpose of reselling?

That would make them a customer, not a consumer. A consumer, therefore, is someone who buys something for their own use and that use should not be a means to earning a livelihood. 

In general terms, the following is the difference between a consumer and a customer. 

What is a consumer dispute?

Let’s say you spent Rs. 5,000 on a new pair of shoes. In return, you receive a shoe in poor condition; it smells, comes in a different colour than the one you ordered and looks like someone wore it at least once before you bought it. You will feel cheated, right? That, right there, is an unfair trade practice which leads to a consumer dispute if the consumer files a complaint against such practice. 

So what is ‘unfair trade practice’?

When someone uses deception or unfair methods to sell goods or provide services, it counts as unfair trade practice. It includes a lot of things, like:

• Falsely representing quality, quantity, composition, etc of any product

• Falsely representing the standard or quality of a service

• Misleading representation concerning the use of any goods or services

This basically means there is a deficiency in goods sold or services rendered. 

How does the Consumer Protection Act, 2019 define deficiency?

Deficiency, according to the Act, means any:

• Fault

• Imperfection

• Shortcoming

• inadequacy

in the quality, nature and manner of performance, which should be maintained as per law. So if there is a deficiency in goods or services, a consumer can approach the concerned authority for redressal.

Can theft during a railway journey constitute a deficiency in the service of railways?

Recently, the Supreme Court held that the railways cannot be held responsible if the passenger is not able to protect his own belongings. In this case, Rs. 1 lakh was stolen from a businessman while he was travelling in a train, for which he filed a case against the railways before the District Consumer Redressal Commission. (Station Superintendent & Anr. v. Surender Bhola, 2023).

Where can a consumer file a complaint?

If there is any kind of deficiency faced by the consumer, they can approach the District Consumer Disputes Redressal Commission, the State Consumer Disputes Redressal Commission or the National Consumer Disputes Redressal Commission. How is it decided which court has jurisdiction over what matters? In the following ways:

Jurisdiction of Commission

Did you know? 

This pecuniary jurisdiction of the Consumer Commission of the Act is revised. When the 2019 Act came, the Jurisdiction was: 1 crore rupees for District Commission, 10 crore rupees for State Commission and more than 10 crore rupees for National Commission.

Is there a time limit to file a complaint?

Yes, you cannot wake up 10 years later and decide that a product you bought or a service you received was deficient, and you want to file a complaint now. A consumer complaint can be filed within 2 years from the date of the cause of action. 

Mediation under the Consumer Protection Act, 2019

The Consumer Protection Act, 2019 also provides for mediation between the parties. The Act provides for the establishment of a consumer mediation cell which maintains a list of empanelled mediators, list of cases handled and other such information. 

Set up of Central Consumer Protection Authority (CCPA)

The Consumer Protection Act, 2019 also mandated the set-up of CCPA or Central Authority as a regulatory authority with the power to protect, promote, and enforce the rights of consumers. The CCPA has the authority to investigate violations, order recalls, and initiate class-action suits. It is headquartered at Delhi and has an investigation wing for conducting inquiries or investigations under the Act.

Conclusion

With the advancement of e-commerce, adding goods and services received through digital or electronic networks will prove to be immensely helpful for consumers. What is now needed is more awareness about the rights that consumers have. While the Consumer Protection Act, 2019, is a significant step forward, it is equally important for consumers to stay informed, assert their rights, and report any violations.

FAQs on Consumer Protection

1. Can a person buying goods or taking services for business make a complaint?

Ans: No

2. Who can be held liable for misleading representations of goods or services?

Ans: Manufacturers, advertising agencies, celebrity endorsers and publishers

3. What is e-commerce as per Consumer Protection Act, 2019?

Ans: E-commerce means buying or selling of goods or services, including digital products, over digital, electronic or online networks

4. If a matter is settled by mediation, can a party go against such settlement?

Ans: No. Any party cannot appeal after a settlement of the dispute is reached through mediation.