Consumer Protection | ICSE Class 10 Commercial Studies Notes

This note covers consumer protection for ICSE Class 10 Commercial Studies: the meaning and types of consumer exploitation, the Consumer Protection Act, 2019 and its features, the rights of a consumer, consumer responsibilities, the redressal machinery, and the importance of consumer awareness.

Who is a consumer, and why does a consumer need protection?

A consumer is a person who buys goods or hires services for personal use. Under the Consumer Protection Act, 2019, a consumer is a person who buys any goods or avails any services for a consideration.

The consideration may be paid or promised, or partly paid and partly promised, or paid under any scheme of deferred payment.

The definition also covers any user of such goods, or any beneficiary of such services, provided the use is made with the approval of the buyer. It applies to both offline and online transactions, whether through electronic means, teleshopping, direct selling or multilevel marketing.

One important limit applies. A person who obtains goods or avails services for resale or for a commercial purpose is not treated as a consumer, and stands outside the scope of the Act.

A shopkeeper who buys biscuits to sell in his shop is therefore not a consumer, but the customer who buys a packet from him is.

Worked example 1. Decide who is a consumer under the Act. (a) Ravi buys a laptop for ₹60,000 on Flipkart, pays through UPI and uses it for his studies. (b) A grocer buys 200 packets of biscuits to resell. (c) Meena, a tailor who works alone from home, buys one sewing machine to earn her living.

Answer: (a) Ravi is a consumer: he paid ₹60,000 as consideration, a UPI payment counts like cash, and online purchases are covered. (b) The grocer is not a consumer, because he buys for resale. (c) Meena is a consumer, because the Act does not treat goods used only to earn a living by self-employment as bought for a commercial purpose. So only the grocer should be told he cannot complain as a consumer.

Definition: Consumer. A person who buys goods or avails services for a consideration, including any user or beneficiary of those goods or services with the buyer's approval, but not a person who buys for resale or commercial purpose.

Why does a consumer need protection at all? In a market, an individual consumer is usually in a weak position.

When a complaint is made about a good or service, the seller often tries to shift all the responsibility onto the buyer. The seller's attitude is, in effect, "if you did not like what you bought, go elsewhere".

The law has changed this position. The old rule was caveat emptor, which means "let the buyer beware". The modern rule is caveat venditor, which means "let the seller beware".

In a free market economy the consumer is said to be a king, and the law now places the duty of fair dealing on the seller.

What is consumer exploitation, and what are its types?

Consumer exploitation means taking unfair advantage of a consumer. It arises when manufacturers, sellers and service providers, in the race to increase sales and market share, adopt unscrupulous and unfair trade practices. The consumer then becomes unsafe, feels cheated, and is exposed to many risks and health problems.

The main types of exploitation are listed below. Each one is a distinct unfair practice, and each harms the consumer in a different way.

1. Sale of adulterated goods: adding inferior substances to the product being sold, so that its quality falls below what the buyer expects.
2. Sale of counterfeit goods: selling a product of lesser value than the real product, by passing it off as the genuine brand.
3. Sale of sub-standard goods: selling products that do not meet the prescribed quality standards.
4. Sale of duplicate goods: supplying copies of a branded product as if they were the original.
5. Use of malfunctioning weights and measures: using faulty scales or weights that lead to underweight of products.
6. Black marketing and hoarding: holding back stock and selling it secretly, which leads to scarcity of the product and a rise in its price.
7. Overcharging: charging a price above the Maximum Retail Price (MRP) printed on the pack.
8. Supply of defective goods: selling goods that have a fault, imperfection or shortcoming in quality or performance.
9. Misleading advertisements: advertisements that falsely claim a product or service to be of superior quality, grade or standard when it is not.
10. Supply of inferior services: providing a quality of service that is less than the condition agreed.

Worked example 2. At a bus stand, a shop sells a bottle of water marked MRP ₹20 for ₹25. Arjun buys 4 bottles. Identify the type of exploitation, work out the excess he paid, and recommend what he should do.

Answer: This is overcharging, that is, charging above the MRP. Excess paid = 4 × (₹25 − ₹20) = ₹20. Selling a packaged good above its MRP is an offence under the Legal Metrology Act, 2009. Arjun should ask for a cash memo or GST bill as proof, report the shop to the legal metrology office or the National Consumer Helpline (1915), and he may file a complaint in the District Commission.

Some of these practices are also defined separately in law. A defect is any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of goods.

A deficiency is the same kind of shortcoming in relation to a service, and includes negligence, omission or commission, or withholding of relevant information that causes loss or injury to the consumer.

Definition: Unfair trade practice. A trade practice which, for the purpose of promoting the sale, use or supply of any goods or service, falsely represents its quality, standard, quantity, composition, style or model.

A restrictive trade practice is different. It is a practice which manipulates price, or affects the flow of supplies in the market, in such a manner that an unjustified cost is imposed on the consumer. Spurious goods are goods that are falsely claimed to be genuine.

What is the Consumer Protection Act, 2019, and what are its features?

The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986. It seeks to widen the scope of consumer protection and to address consumer concerns more effectively. Its purpose is to protect and promote the interests of consumers through speedy and inexpensive redressal of their grievances.

The Act extends to the whole of India. It applies to all types of businesses, whether a manufacturer or a trader, and whether supplying goods or providing services. This includes e-commerce firms, so an online seller is covered in the same way as a shop in the market.

The main features of the Act are set out below.

1. Wider definition of consumer: it covers buyers of goods and users of services, including users with the buyer's approval, and it covers both offline and online transactions.
2. Six consumer rights: the Act confers certain rights on consumers with a view to empowering them and protecting their interests.
3. Central authority: the Act provides for a Central Consumer Protection Authority (CCPA) to regulate matters relating to violation of consumer rights, unfair trade practices, and false or misleading advertisements that are prejudicial to the interests of consumers.
4. Three-tier redressal machinery: District Commission, State Commission and National Commission, at district, state and national levels.
5. Product liability: the manufacturer or seller of a product, or a provider of a service, is responsible to compensate for any harm caused to a consumer by a defective product or by a deficiency in service.
6. Mediation: disputes may be settled with the help of a neutral intermediary outside the commission, called a mediator.
7. Reliefs: the commissions may order removal of the defect, replacement, refund, compensation, punitive damages and other reliefs.

Definition: Product liability. The responsibility of a product manufacturer or seller of any product or service to compensate for any harm caused to a consumer by a defective product manufactured or sold, or by deficiency in services.

Two more definitions help here. A complaint is any allegation in writing made by a complainant for obtaining relief with respect to a restrictive trade practice, a defect in goods, a deficiency in services, overcharging of price, or an offer of goods or service injurious to life and safety.

A complainant may be one or more consumers, a voluntary consumer association, the central or state government, the central authority, a legal heir or legal representative, or a parent or legal guardian in the case of a minor.

What are the rights of a consumer?

The Act provides for six rights of consumers. Each right protects the consumer at a different stage, from the moment of choosing a product to the moment of getting a grievance redressed.

Right to safety

The consumer has a right to be protected against goods and services which are hazardous to life, health and property. Electrical appliances made with substandard products, or which do not conform to safety norms, might cause serious injury.

Consumers are therefore educated to use electrical appliances that are ISI marked, as this is an assurance that the products meet quality specifications.

Right to be informed

The consumer has a right to have complete information about the product he intends to buy. This includes its ingredients, date of manufacture, price, quantity and directions for use.

It is for this reason that the law requires manufacturers to provide such information on the package and label of the product. Under the Legal Metrology Act, 2009 and its packaged commodities rules, a pack must show the net quantity, the MRP, the month and year of manufacture and a consumer care contact.

Right to be assured

The consumer has the freedom to access a variety of products at competitive prices. This implies that marketers should offer a wide variety of products in terms of quality, brand, prices and size, and allow the consumer to make a choice from among these.

Right to be heard

The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. Many enlightened business firms have set up their own consumer service and grievance cells for this reason.

Many consumer organisations are also working in this direction and helping consumers in redressal of their grievances.

Right to seek redressal

The consumer has a right to get relief against unfair trade practices, restrictive trade practices or unscrupulous exploitation, in case the product or service falls short of his expectations.

The Act provides for redressal including replacement of the product, removal of the defect in the product, and compensation paid for any loss or injury suffered by the consumer.

Right to consumer education

The consumer has a right to acquire knowledge and to be a well informed consumer throughout life. The 2019 Act itself calls this the right to consumer awareness.

He should be aware of his rights and the reliefs available to him in case a product or service falls short of his expectations.

Many consumer organisations and some enlightened businesses take an active part in educating consumers in this respect.

Note: The right to be assured is often called the right to choose. It means the consumer is free to pick from a range of products and is not forced to buy an unwanted item as a condition of buying what he wants.

What are the responsibilities of a consumer?

Consumer rights, by themselves, cannot achieve the objective of consumer protection. Protection can, in effect, be achieved only when consumers also understand their responsibilities. A consumer should keep the following responsibilities in mind while purchasing, using and consuming goods and services.

1. Be aware of the various goods and services available in the market, so that an intelligent and wise choice can be made.
2. Buy only standardised goods, as they provide quality assurance. Look for the ISI mark on electrical goods, the FPO mark on food products, and the Hallmark on jewellery.
3. Learn about the risks associated with products and services, follow the manufacturer's instructions, and use the products safely.
4. Read labels carefully to get information about prices, net weight, and manufacturing and expiry dates.
5. Assert yourself to ensure that you get a fair deal.
6. Be honest in your dealings, choose only from legal goods and services, and discourage practices like black marketing and hoarding.
7. Ask for a cash memo on purchase of goods or services, as it serves as proof of the purchase made.
8. File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods or services. Do not fail to take action even when the amount involved is small.
9. Form consumer societies which play an active part in educating consumers and safeguarding their interests.
10. Respect the environment, and avoid waste, littering and contributing to pollution.

Several quality marks help a consumer carry out the second responsibility. The ISI mark is the mark of the Bureau of Indian Standards. The Agmark certifies agricultural products. The FPO mark has long been used on processed fruit products such as jams and squashes, and today every packaged food must also carry the licence number of the Food Safety and Standards Authority of India (FSSAI), set up under the Food Safety and Standards Act, 2006. The BIS Hallmark is used on gold and silver jewellery, under the Bureau of Indian Standards Act, 2016. The Eco-mark identifies products that are environmentally friendly.

How can a consumer get redressal under the Act?

The Act provides a three-tier enforcement machinery for the redressal of consumer grievances, at the district, state and national levels. The jurisdiction of each tier depends on the value of the goods or services paid as consideration.

Worked example 3. Choose the right commission for each complaint. (a) A family paid ₹1.2 crore for a flat and the builder has delayed possession by three years. (b) A patient paid a hospital ₹35 lakh and alleges deficiency in service. (c) A buyer paid ₹2.5 crore for a house that has serious defects.

Answer: (a) ₹1.2 crore exceeds ₹50 lakh but not ₹2 crore, so the family should go to the State Commission. (b) ₹35 lakh does not exceed ₹50 lakh, so the patient should go to the District Commission. (c) ₹2.5 crore exceeds ₹2 crore, so the buyer should go to the National Commission. In each case the test is the consideration paid, not the compensation claimed.

The District Commission may, on the first hearing or at any later stage, direct the parties to give their consent for settlement of the dispute through mediation within five days.

If the parties agree in writing, the matter is referred for mediation. If mediation fails, the commission proceeds with the complaint.

If the complaint alleges a defect in goods which cannot be determined without proper analysis or test, the commission obtains a sample of the goods, seals it, and refers it to the appropriate authority for analysis.

In the case of services, the dispute is settled on the basis of the evidence brought to its notice by the complainant, and the commission can ask the service provider for any required information, document or record.

The State Commission is established by the respective state government and ordinarily functions at the state capital. The National Commission has territorial jurisdiction over the whole country. Every order of a commission is deemed final if no appeal is made by any of the parties involved in the dispute.

Definition: Mediation. Settlement of a dispute with the help of a neutral intermediary outside the commission, called a mediator, with the written consent of the parties.

Worked example 4. The District Commission dismisses Priya's complaint by an order dated 1 March. She is not satisfied. Decide where she should appeal and the last date for filing it.

Answer: An appeal against a District Commission order lies to the State Commission within 45 days of the order. Counting 30 days from 2 March to 31 March and 15 more days in April, she should file her appeal in the State Commission by 15 April.

What reliefs can a consumer commission order?

Where the District, State or National Commission is satisfied about a defect in goods, a deficiency in services, an unfair trade practice, or a claim for compensation under product liability, it issues an order. The reliefs available are listed below.

1. To remove the defect in goods or the deficiency in service.
2. To replace the defective product with a new one, free from any defect.
3. To refund the price paid for the product, or the charges paid for the service.
4. To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
5. To pay punitive damages in appropriate circumstances.
6. To discontinue the unfair or restrictive trade practice and not to repeat it in the future.
7. Not to offer hazardous goods for sale.
8. To withdraw the hazardous goods from sale.
9. To cease manufacture of hazardous goods and to desist from offering hazardous services.
10. To compensate for any loss or injury suffered by a consumer under a product liability action, and to withdraw hazardous products from being offered for sale.

These reliefs show that the Act does not only punish the seller. It also tries to put the consumer back in the position he would have been in if the defect or deficiency had not occurred.

Why is consumer awareness important?

Consumer protection has a wide scope. It includes educating consumers about their rights and responsibilities, and it also helps in getting their grievances redressed.

It requires a judicial machinery for protecting the interests of consumers, and it also requires consumers to be united and to form consumer associations for the protection and promotion of their interests.

Consumer awareness matters for two groups. From the consumer's point of view, protection is needed because consumers are ignorant of their rights and reliefs, because they are unorganised, and because they are widely exploited by unscrupulous sellers. From the point of view of business, protection is needed for five reasons.

1. Long-term interest of business: satisfied customers lead to repeat sales and give good feedback to prospective customers, which increases the customer base.
2. Business uses society's resources: business organisations use resources which belong to society, so they have a responsibility to supply products and render services in the public interest.
3. Social responsibility: consumers form an important group among the many stakeholders of business, and their interest has to be taken care of.
4. Moral justification: it is the moral duty of any business to take care of the consumer's interest and avoid any form of exploitation.
5. Government intervention: a business engaging in exploitative trade practices invites government action, which can impair and tarnish the image of the company.

Awareness is spread through several means. Socially responsible firms follow ethical standards and set up customer service and grievance cells.

Business associations such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) have laid down codes of conduct for their members.

The Department of Consumer Affairs, Government of India, runs the Jago Grahak Jago campaign to generate awareness among consumers. Consumer organisations educate consumers and force firms to avoid malpractices.

The government has set up a toll-free national consumer helpline number, 1800114000, for this purpose.

Consumer organisations and non-governmental organisations (NGOs) also play a role. They educate the public through training programmes, seminars and workshops, publish periodicals, carry out comparative testing of products in accredited laboratories, encourage consumers to protest against unfair trade practices, provide legal assistance, and file complaints on behalf of consumers.

The Consumer Unity and Trust Society (CUTS), Jaipur, is one such organisation.

What are the advantages and limitations of the redressal system?

Advantages

The Act gives the consumer a legal right to be heard and to seek redressal before special consumer commissions, which are quicker and simpler than ordinary civil courts. It provides a three-tier machinery, and a complaint can be filed where the consumer lives or works.

It covers e-commerce firms as well as offline sellers. It provides for mediation, which can settle a dispute quickly and without a long trial.

It allows the consumer to file a complaint on his own, with or without the services of a lawyer. It provides for compensation, replacement and refund, and it allows punitive damages in suitable cases. No fee is charged for a complaint where the consideration paid is up to ₹5 lakh, and complaints can also be filed online.

Limitations

The redressal process can be cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers, and cases take time for filing and for attending the commission's proceedings.

In most purchases, cash memos are not issued, so evidence is not easy to gather.

Most purchases in the market are small retail sales, and a consumer may not think it worthwhile to go to a commission for a small amount. Consumer awareness in India is spreading, but slowly.

Note: The Act itself answers the problem of small claims. A consumer is advised not to fail to take action even when the amount involved is small, and the District Commission hears complaints where the consideration paid is up to fifty lakh rupees.

How did the consumer movement and consumer law grow in India?

The idea of the consumer as king is not new. The shift from caveat emptor to caveat venditor took many years and was pushed by the consumer movement.

In India, the movement grew in an organised form in the 1960s, when food shortages, hoarding, black marketing and adulteration of food and edible oil led consumers to form groups.

The United Nations adopted the UN Guidelines for Consumer Protection in 1985, and Consumers International now works as an umbrella body for consumer organisations across countries.

India observes 24 December as National Consumers' Day, the day on which Parliament enacted the Consumer Protection Act in 1986.

The 1986 Act, popularly known as COPRA, set up the first consumer courts at the district, state and national levels. The Consumer Protection Act, 2019 replaced it and came into force on 20 July 2020, adding the CCPA, product liability, mediation and rules for e-commerce.

Which other laws protect consumers?

The Consumer Protection Act, 2019 works alongside several older laws, each aimed at a particular kind of exploitation:

• The Indian Contract Act, 1872 and the Sale of Goods Act, 1930 set the terms of a sale, such as the implied condition that goods are fit for their purpose.
• The Essential Commodities Act, 1955 lets the government act against hoarding and black marketing of essential goods.
• The Legal Metrology Act, 2009 checks weights, measures and the declarations on packaged goods, including the MRP.
• The Food Safety and Standards Act, 2006 deals with adulterated and unsafe food.
• The Trade Marks Act, 1999 protects brand names against counterfeit and duplicate goods.
• The Competition Act, 2002 acts against agreements and practices that restrict competition and push up prices.

Glossary

• Consumer: A person who buys goods or avails services for a consideration, including a user or beneficiary with the buyer's approval.
• Consumer exploitation: Taking unfair advantage of a consumer through practices such as adulteration, overcharging, hoarding or misleading advertisements.
• Caveat emptor: The old rule meaning "let the buyer beware", which placed the duty of care on the buyer.
• Caveat venditor: The modern rule meaning "let the seller beware", which places the duty of fair dealing on the seller.
• Defect: Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of goods.
• Deficiency: A similar shortcoming in relation to a service, including negligence or withholding of relevant information.
• Complaint: A written allegation made by a complainant to obtain relief for a defect, deficiency, overcharging or unfair practice.
• Complainant: A consumer, consumer association, government, central authority, legal heir or representative who files a complaint.
• Unfair trade practice: A practice that falsely represents the quality, standard, quantity, composition, style or model of goods or services.
• Restrictive trade practice: A practice that manipulates price or supply so as to impose an unjustified cost on the consumer.
• Spurious goods: Goods that are falsely claimed to be genuine.
• Product liability: The duty of a manufacturer or seller to compensate for harm caused by a defective product or deficient service.
• Mediation: Settlement of a dispute through a neutral intermediary called a mediator, with the written consent of the parties.
• CCPA: The Central Consumer Protection Authority, which regulates violations of consumer rights and misleading advertisements.
• MRP: The maximum retail price printed on a pack, above which a seller may not charge the consumer.

Common errors and misconceptions

• Misconception: Anyone who buys goods is a consumer. Correct: A person who buys goods for resale or commercial purpose is not a consumer under the Act.
• Misconception: The Consumer Protection Act, 2019 applies only to goods. Correct: It applies to goods and services, including e-commerce, teleshopping and direct selling.
• Misconception: A consumer must always engage a lawyer to file a complaint. Correct: A consumer can file a complaint on his own, with or without the services of a lawyer.
• Misconception: The District Commission hears every complaint, whatever its value. Correct: Its jurisdiction is limited to complaints where the consideration paid does not exceed fifty lakh rupees.
• Misconception: Consumer rights alone are enough to protect a consumer. Correct: Protection is achieved only when consumers also understand and carry out their responsibilities.
• Misconception: A seller may charge more than the MRP if the buyer agrees. Correct: Overcharging, that is charging above the MRP, is a form of consumer exploitation.
• Misconception: The ISI mark is compulsory on all products. Correct: It is compulsory only for certain products that affect health and safety or are of mass consumption.

Exam-style questions with model answers

Q1. State any two rights of a consumer under the Consumer Protection Act, 2019. [2 marks]

1. The right to safety, which protects the consumer against goods and services hazardous to life, health and property.
2. The right to be informed, which gives the consumer complete information about a product such as its ingredients, date of manufacture, price and directions for use.

Q2. Define the terms defect and deficiency. [2 marks]

1. A defect is any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of goods.
2. A deficiency is a similar shortcoming in relation to a service, and includes negligence, omission or commission, or withholding of relevant information that causes loss or injury to the consumer.

Q3. Explain any three types of consumer exploitation. [3 marks]

1. Adulteration: adding inferior substances to the product being sold, so that its quality falls below what the buyer expects.
2. Hoarding and black marketing: holding back stock and selling it secretly, which leads to scarcity of the product and a rise in its price.
3. Misleading advertisements: advertisements that falsely claim a product or service to be of superior quality, grade or standard when it is not.

Q4. Explain any three responsibilities of a consumer. [3 marks]

1. Buy only standardised goods, looking for the ISI mark on electrical goods, the FPO mark on food products and the Hallmark on jewellery.
2. Ask for a cash memo on purchase, because it serves as proof of the purchase made.
3. File a complaint in an appropriate consumer forum in case of a shortcoming in quality, and do not fail to act even when the amount involved is small.

Q5. Explain the importance of consumer protection from the point of view of business. [5 marks]

1. Long-term interest of business: satisfied customers lead to repeat sales and give good feedback to prospective customers, which increases the customer base.
2. Business uses society's resources: since business uses resources belonging to society, it has a responsibility to supply products and services in the public interest.
3. Social responsibility: consumers are an important stakeholder group, and their interest has to be taken care of.
4. Moral justification: it is the moral duty of business to take care of the consumer's interest and avoid any form of exploitation.
5. Government intervention: exploitative practices invite government action, which can impair and tarnish the image of the company.

Q6. A consumer in Pune bought a washing machine for ₹40,000. The machine stopped working within two months, and the seller refused to repair or replace it. The consumer wants to file a complaint. State which commission has jurisdiction over the claim and explain the reliefs the commission may order. [5 marks]

1. The value of the goods paid as consideration is ₹40,000, which does not exceed fifty lakh rupees, so the District Commission has jurisdiction.
2. The commission may order removal of the defect in the goods.
3. The commission may order replacement of the defective product with a new one, free from any defect.
4. The commission may order refund of the price paid for the product.
5. The commission may order payment of a reasonable amount of compensation for any loss or injury suffered due to the negligence of the opposite party.

Q7. Explain the three-tier redressal machinery under the Consumer Protection Act, 2019, giving the value of claims handled by each tier. [5 marks]

1. District Commission: it entertains complaints where the value of goods or services paid as consideration does not exceed fifty lakh rupees.
2. State Commission: it entertains complaints where the value exceeds fifty lakh rupees but does not exceed two crore rupees, and it is established by the state government, ordinarily at the state capital.
3. National Commission: it entertains complaints where the value exceeds two crore rupees, and it has territorial jurisdiction over the whole country.
4. Appeals: an appeal against a District Commission order lies to the State Commission within forty five days, and against a State Commission order to the National Commission within thirty days.
5. Final appeal: an appeal against a National Commission order lies to the Supreme Court of India within thirty days.

Q8. Explain the features of the Consumer Protection Act, 2019. [5 marks]

1. It replaced the Consumer Protection Act, 1986 and widened the scope of consumer protection.
2. It extends to the whole of India and applies to all businesses, whether manufacturers or traders, supplying goods or providing services, including e-commerce firms.
3. It confers six rights on consumers: safety, to be informed, to be assured, to be heard, to seek redressal and to consumer education.
4. It provides for a Central Consumer Protection Authority to regulate violations of consumer rights, unfair trade practices and misleading advertisements.
5. It provides a three-tier redressal machinery, product liability, mediation and a range of reliefs including replacement, refund and compensation.

Key takeaways

• A consumer buys goods or avails services for a consideration, but a buyer for resale or commercial purpose is not a consumer.
• The rule has shifted from caveat emptor, let the buyer beware, to caveat venditor, let the seller beware.
• Consumer exploitation takes many forms, including adulteration, counterfeit goods, underweight, hoarding, overcharging and misleading advertisements.
• The Consumer Protection Act, 2019 replaced the 1986 Act and covers offline and online transactions, including e-commerce firms.
• The Act gives six rights: safety, to be informed, to be assured, to be heard, to seek redressal and to consumer education.
• Rights work only when consumers also carry out responsibilities such as buying standardised goods and asking for a cash memo.
• The District Commission hears complaints where the consideration paid is up to fifty lakh rupees, the State Commission up to two crore rupees, and the National Commission above that.
• Reliefs include removal of the defect, replacement, refund, compensation and punitive damages.
• Consumer awareness is spread by firms, business associations, consumer organisations and government campaigns such as Jago Grahak Jago.

Test yourself

Who is not treated as a consumer under the Act?

A person who obtains goods or avails services for resale or for a commercial purpose is not treated as a consumer and is outside the scope of the Act.

What is the upper limit of the District Commission's jurisdiction?

The District Commission can hear complaints where the value of goods or services paid as consideration does not exceed fifty lakh rupees.

Which right protects a consumer against hazardous electrical appliances?

The right to safety. It protects the consumer against goods and services hazardous to life, health and property, and consumers are advised to use ISI marked appliances.

What is a cash memo, and why should a consumer ask for one?

A cash memo is the bill given on purchase of goods or services. It serves as proof of the purchase made, which helps if a complaint has to be filed later.

Name the authority set up to regulate violations of consumer rights and misleading advertisements.

The Central Consumer Protection Authority, or CCPA. It regulates matters relating to violation of consumer rights, unfair trade practices and false or misleading advertisements.

What is mediation in consumer disputes?

Mediation is settlement of a dispute with the help of a neutral intermediary outside the commission, called a mediator, with the written consent of the parties.

Name two business associations that have laid down codes of conduct for their members.

The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) have laid down codes of conduct giving guidelines for dealings with customers.

Within how many days must an appeal be filed against an order of the State Commission, and where?

An appeal against an order of the State Commission must be filed in the National Commission within thirty days of the order.