What do you do when a business fails to deliver? Would you rather have a faulty car, a fraudulent internet purchase, or perhaps a negligent medical facility?
The purpose of consumer protection law is to protect individuals from corporate exploitation, unfair business practices, defective products, or deficient services through the implementation of rules and regulations. These regulations make sure that customers have rights that can be enforced and ways to settle disputes that are easy to find.
Established under the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) is a critical component of this framework.
The CCPA, India’s foremost regulatory body for consumer rights, actively promotes fair market conduct, penalizes violators, and investigates unjust trade practices to enforce these protections, thereby fortifying the legal protections for consumers.
The first question is, “Who are consumers?” According to the Consumer Protection Act, 2019 Section 2(7), a consumer is an individual who purchases products or services for personal use and pays for them in full or in part, either with a promise to pay, later, or up front.
Contrary to that, in accordance with Laxmi Engineering Works v. P.S.G. Industrial Institute (1995), an individual is not considered a consumer under the Consumer Protection Act if they acquire goods or services for the purpose of commercial resale, large-scale profit, or the employment of others.
For instance, a factory purchases machinery, and a taxi aggregator purchases cars for drivers. On the other hand, consumer rights are preserved for self-employed individuals who use products for their personal livelihood, such as a tailor’s sewing machine.
The law doesn’t cover transactions between businesses.
In most circumstances, the law grants individuals certain rights. The Consumer Protection Act, 2019 also gives consumers particular rights. Section 2(9) of the Act makes it very plain what six basic rights you have that let you fight against fraudulent ads, being overcharged, or unfair business practices. These are:
- The right to be safe
- The right to know
- The right to choose
- The right to be heard
- Right to seek help
- The right to learn about products
Not sure what your consumer rights actually are? This guide with real-life examples can help you understand them better.
To truly understand how these legal protections operate in real life, it’s equally important to explore the specific rights you hold as a consumer and how they are enforced through judicial precedents.
Hohfeld’s jural relations framework says that every legal right comes with a set of duties. The Consumer Protection Act, 2019 gives consumers a lot of rights, but it also puts reasonable duties on them to keep the redressal system from being abused.
Under the Act, consumers have some important responsibilities, such as:
- Duty to File Complaints in Good Faith: Customers can only file complaints that are real and backed up by proof; they can’t make up claims. In Indian Medical Association v. V.P. Shantha (1995), the Supreme Court made it plain that you should only initiate a case if you can establish it with evidence. With rights come duties.
- Duty to Not Abuse Consumer Forums: The law is clear: consumer forums are not for settling corporate disputes; they are for protecting individual buyers. In Laxmi Engineering Works v. P.S.G. Industrial Institute (1995), the Supreme Court made it quite clear that you can’t call yourself a “consumer” if you acquire things to sell or run a business.
- The duty to follow the rules for using the product: According to the law, users must use products correctly according to the instructions and warranty conditions. The Supreme Court made this point clear in Maruti Udyog Ltd. v. Susheel Kumar Gabgotra (2006), where it said that consumers must agree to fix little problems and can’t ask for a full replacement for problems that can be fixed.
- Duty to Stay Informed: The Consumer Protection Act says that consumers must help settle disputes without causing delays on purpose, as shown in Ambrish Kumar Shukla v. Ferrous Infrastructure (2016). The Supreme Court said that customers must act in good faith during proceedings and can’t try to get unfair compensation by dragging out the process. This role makes sure that the mechanism for fixing problems is fair and works well for everyone.
Consumer protection is vital for both consumers and businesses. For consumers, it ensures access to accurate information and safeguards against unfair practices, allowing them to make informed choices and trust the marketplace.
For businesses, fair treatment of consumers builds credibility, fosters customer loyalty, and enhances long-term profitability. Strong consumer protection laws also promote healthy competition and innovation, ultimately driving economic growth and market stability.
The Consumer Protection Act 2019 introduced significant reforms to overcome the 1986 Act’s inadequacies, reflecting India’s changing market:
- Broadened Coverage: The 1986 Consumer Act only covered physical goods and traditional services, whereas India’s 2019 Consumer Act covers e-commerce and digital services.
- Stronger Regulations: The 2019 Act gave the CCPA the power to investigate, sanction deceptive marketing, and recall harmful items, unlike the 1986 law.
- Improved Redressal Mechanisms: The 2019 Act expanded redressal by (1) allowing consumer complaints at their location and (2) increasing claim limitations : 5 to10x across all forums. (3) Mandatory mediation : addressing significant 1986 system flaws.
- Greater Responsibility and Penalties: The 2019 Act tightened accountability: (1) Absolute manufacturer defect liability, (2) Celebrity liability for deceptive marketing, (3) Voiding unjust contract terms significant improvements from 1986’s weaker punishment framework.
- Faster Resolution: The 2019 Act mandates 21-day admittance and 3 to 5 month resolution, unlike 1986’s indefinite delays.
- Consumer Empowerment: The 2019 Act introduced online purchase cancelation, data misuse protection, and class action litigation, which were not there in 1986.
From reactive redressal to proactive avoidance, the 2019 Act addresses digital fraud, unfair algorithms, and misleading endorsements. It ensures that the Indian marketplace is more competitive and equitable by balancing corporate accountability with consumer rights.]
Filing a consumer complaint may seem complex, but our step-by-step guide simplifies both online and offline methods.
FAQs
1. Who is considered a “consumer” under the 2019 Act?
A consumer is anyone who buys goods/services for personal use (not resale) and makes full/partial payment. Excludes business-to-business transactions (Laxmi Engineering Works v. P.S.G. Industrial Institute, 1995).
2. Can I complain about online shopping issues?
Yes! The 2019 Act explicitly covers e-commerce, including faulty products, delivery failures, or misleading ads. You can cancel fraudulent online purchases.
3. How long do I have to file a complaint?
Complaints must be filed within 2 years of the issue arising. The 2019 Act mandates resolution within 3–5 months (vs. indefinite delays under the 1986 Act).
4. Where should I file a complaint?
- District Commission: Claims up to ₹1 crore
- State Commission: ₹1–10 crore
- National Commission: Above ₹10 crore
Bonus: You can now file complaints from your hometown, regardless of the seller’s location.
5. What if a celebrity endorses a fake product?
The 2019 Act holds celebrities liable for misleading ads. They can face penalties unless they prove due diligence (Section 21).
