Taxmann's Consumer Protection Act 2019 with Rules

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Contents CONSUMER PROTECTION ACT, 2019 PAGE

CHAPTER I PRELIMINARY 1.

Short title, extent, commencement and application

1

2.

Definitions

2 CHAPTER II CONSUMER PROTECTION COUNCILS

3. Central Consumer Protection Council

18

4. Procedure for meetings of Central Council

18

5. Objects of Central Council

18

6. State Consumer Protection Councils

18

7. Objects of State Council

19

8. District Consumer Protection Council

19

9. Objects of District Council

19

CHAPTER III CENTRAL CONSUMER PROTECTION AUTHORITY 10. Establishment of Central Consumer Protection Authority

19

11. Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners

20

12. Vacancy, etc., not to invalidate proceedings of Central Authority

20

I-5

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I-6 PAGE

13. Appointment of officers, experts, professionals and other employees of Central Authority

21

14. Procedure of Central Authority

21

15. Investigation Wing

21

16. Power of District Collector

22

17. Complaints to authorities

22

18. Powers and functions of Central Authority

23

19. Power of Central Authority to refer matter for investigation or to other Regulator

24

20. Power of Central Authority to recall goods, etc.

25

21. Power of Central Authority to issue directions and penalties against false or misleading advertisements

26

22. Search and seizure

29

23. Designation of any statutory authority or body to function as Central Authority

30

24. Appeal

30

25. Grants by Central Government

30

26. Accounts and audit

31

27. Furnishing of annual reports, etc.

31

CHAPTER IV CONSUMER DISPUTES REDRESSAL COMMISSION 28. Establishment of District Consumer Disputes Redressal Commission

31

29. Qualifications, etc., of President and members of District Commission

32

30. Salaries, allowances and other terms and conditions of service of President and members of District Commission

32

31. Transitional provision

32

32. Vacancy in office of member of District Commission

32

33. Officers and other employees of District Commission

32

34. Jurisdiction of District Commission

33

35. Manner in which complaint shall be made

34

36. Proceedings before District Commission

35

37. Reference to mediation

37

37A. Settlement through mediation

38

37B. Recording settlement and passing of order

38

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CONTENTS PAGE

38. Procedure on admission of complaint

38

39. Findings of District Commission

44

40. Review by District Commission in certain cases

47

41. Appeal against order of District Commission

47

42. Establishment of State Consumer Disputes Redressal Commission

48

43. Qualifications, etc., of President and members of State Commission

48

44. Salaries, allowances and other terms and conditions of service of President and members of State Commission

48

45. Transitional provision

48

46. Officers and employees of State Commission

49

47. Jurisdiction of State Commission

49

48. Transfer of cases

51

49. Procedure applicable to State Commission

52

50. Review by State Commission in certain cases

52

51. Appeal to National Commission

53

52. Hearing of appeal

54

53. Establishment of National Consumer Disputes Redressal Commission

55

54. Composition of National Commission

55

55. Qualifications, etc., of President and members of National Commission

55

56. Transitional provision

56

57. Other officers and employees of National Commission

56

58. Jurisdiction of National Commission

56

59. Procedure applicable to National Commission

59

60. Review by National Commission in certain cases

59

61. Power to set aside ex parte orders

59

62. Transfer of cases

59

63. Vacancy in office of President of National Commission

60

64. Vacancies or defects in appointment not to invalidate orders

60

65. Service of notice, etc.

60

66. Experts to assist National Commission or State Commission

61

67. Appeal against order of National Commission

61

68. Finality of orders

62

69. Limitation period

62

70. Administrative control

62

CONTENTS

I-8 PAGE

71. Enforcement of orders of District Commission, State Commission and National Commission

63

72. Penalty for non-compliance of order

63

73. Appeal against order passed under section 72

64

CHAPTER V MEDIATION 74 to [Omitted by the Mediation Act, 2023, with effect from a date yet to 81. be notified]

64

CHAPTER VI PRODUCT LIABILITY 82. Application of Chapter

66

83. Product liability action

66

84. Liability of product manufacturer

66

85. Liability of product service provider

67

86. Liability of product sellers

67

87. Exceptions to product liability action

67

CHAPTER VII OFFENCES AND PENALTIES 88. Penalty for non-compliance of direction of Central Authority

68

89. Punishment for false or misleading advertisement

68

90. Punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant

69

91. Punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods

69

92. Cognizance of offence by court

70

93. Vexatious search

70 CHAPTER VIII MISCELLANEOUS

94. Measures to prevent unfair trade practices in e-commerce, direct selling, etc.

70

95. Presidents, members, Chief Commissioner, Commissioner and certain officers to be public servants

70

96. Compounding of offences

71

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CONTENTS PAGE

97. Manner of crediting penalty

71

98. Protection of action taken in good faith

71

99. Power to give directions by Central Government

71

100. Act not in derogation of any other law

72

101. Power of Central Government to make rules

72

102. Power of State Government to make rules

74

103. Power of National Commission to make regulations

76

104. Power of Central Authority to make regulations

77

105. Rules and regulations to be laid before each House of Parliament

77

106. Power to remove difficulties

77

107. Repeal and savings

77

SUBJECT INDEX

79

CONSUMER PROTECTION (CENTRAL CONSUMER PROTECTION COUNCIL) RULES, 2020 1. Short title and commencement

87

2. Definitions

87

3. Composition of Central Council

87

4. Term of Central Council

88

5. Resignation of members of Central Council

88

6. Vacancy caused by resignation

88

7. Working groups

89

8. Meetings of Central Council for transaction of business

89

9. Reimbursement of expenses and sitting fees

90

SCHEDULE I

90

SCHEDULE II

90

CONSUMER PROTECTION (CONSUMER DISPUTES REDRESSAL COMMISSIONS) RULES, 2020 1. Short title and commencement

91

2. Definitions

91

3. Working days and office hours of National Commission

92

CONTENTS

I-10 PAGE

4. Seal and emblem

92

5. Sitting of National Commission

92

6. Manner of authentication of goods by National Commission for analysis and testing

92

7. Fee for making complaints

93

8. Manner of filing complaints electronically

94

9. Additional powers of National Commission, State Commission and District Commission

94

10. Credit of amount payable for loss or injury suffered by consumers who are not identifiable conveniently

95

11. Procedure for filing and hearing of appeal before State Commission

95

12. Procedure in respect of complaints before National Commission

96

13. Appeals before National Commission

97

14. Procedure for filing and hearing of appeal before National Commission

97

15. Number of Members in National Commission

99

16. Sitting of National Commission and signing of orders

99

17. Manner of depositing amount in appeals before Supreme Court

99

18. Furnishing of information by State Commission

99

SCHEDULE I

99

CONSUMER PROTECTION (GENERAL) RULES, 2020 1. Short title and commencement

102

2. Definitions

102

3. Public utility services to be establishments

102

4. Certain activities to be exempt from unfair trade practice

102

5. Manner of issuing invoice or bill or cash memo or receipt for goods sold or services rendered

103

CONSUMER PROTECTION (MEDIATION) RULES, 2020 1. Short title and commencement

104

2. Definitions

104

3. Mediation Cell

104

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CONTENTS

PAGE

4. Matters not to be referred to mediation

105

5. Refund of fee

105

6. Resort to arbitral or judicial proceedings

105

7. Settlement agreement not to be discharged by death of party thereto

105

CONSUMER PROTECTION (E-COMMERCE) RULES, 2020 1. Short title and commencement

106

2. Scope and Applicability

106

3. Definitions

106

4. Duties of e-commerce entities

107

5. Liabilities of marketplace e-commerce entities

109

6. Duties of sellers on marketplace

110

7. Duties and liabilities of inventory e-commerce entities

111

8. Contravention of rules

112

CENTRAL CONSUMER PROTECTION AUTHORITY (ANNUAL REPORT) RULES, 2021 1. Short title and commencement

113

2. Definitions

113

3. Preparation and furnishing of annual report

113

FORM

114

CONSUMER PROTECTION (SEARCH AND SEIZURE AND COMPOUNDING OF OFFENCES BY THE CENTRAL AUTHORITY AND CREDITING OF PENALTY) RULES, 2021 1.

Short title and commencement

117

2.

Definitions

117

3.

Procedure of taking copies or extracts of documents, records, or articles seized or produced

117

CONTENTS

I-12 PAGE

4.

Disposal of articles subject to speedy or natural decay

118

5.

Compounding of offences

118

6.

Powers and duties of compounding officer

120

7.

Credit of penalty under section 21 and section 96 of the Act

120

FORM I

120

CENTRAL CONSUMER PROTECTION AUTHORITY (FORM OF ANNUAL STATEMENT OF ACCOUNTS AND RECORDS) RULES, 2021 1. Short title and commencement

122

2. Definitions

122

3. Budget, Accounts and Audit

122

FORM I

123

FORM II

124

FORM III

125

CONSUMER PROTECTION (DIRECT SELLING) RULES, 2021 1. Short title and commencement

127

2. Application

127

3. Definitions

127

4. Mandatory maintenance of records

128

5. Obligations of direct selling entity

129

6. Obligations of direct seller

132

7. Duties of direct selling entity and direct seller

133

8. Persons not to be engaged in the business of direct selling

135

9. Application of e-commerce rules

136

10. Prohibition of Pyramid Scheme and money circulation scheme

136

11. Monitoring by State Government

136

12. Inconsistencies in laws

136

13. Contravention of rules

136

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PAGE

CONSUMER PROTECTION (JURISDICTION OF THE DISTRICT COMMISSION, THE STATE COMMISSION AND THE NATIONAL COMMISSION) RULES, 2021 1. Short title and commencement

137

2. Definitions

137

3. Jurisdiction of District Commission

137

4. Jurisdiction of State Commission

137

5. Jurisdiction of National Commission

138

CONSUMER PROTECTION (ADMINISTRATIVE CONTROL OVER THE STATE COMMISSION AND THE DISTRICT COMMISSION) REGULATIONS, 2020 1. Short title and commencement

139

2. Definitions

139

3. Observance of work

139

4. Inspection of State Commission

139

5. Inspection of the District Commission

140

6. Recommendation to State Government for administrative action

140

7. Uploading of orders

140

8. Uploading of pending matters

140

CONSUMER PROTECTION (CONSUMER COMMISSION PROCEDURE) REGULATIONS, 2020 1. Short title and commencement

141

2. Definitions

141

3. Arrangements in Consumer Commission

142

4. Dress code

142

5. Hearing hours

142

6. Cause List

142

CONTENTS

I-14 PAGE

7. Institution of complaints, appeals and revision petitions

143

8. Nomenclature to be given to the complaints, appeals etc.

143

9. Scrutiny of complaint, appeal, petition and revision petition

143

10. Issue of notice

144

11. Adjournment

144

12. Hearing by Benches

145

13. Arguments

145

14. Limitation

145

15. Review

145

16. Appearance of Voluntary Consumer Organisations

146

17. Ex parte interim order

146

18. Final order

146

19. Return on institution and disposal of cases

147

20. Preservation of records

147

21. Certified copy

147

22. Inspection of records

148

23. Filing of criminal complaint

148

24. Practice Directions

148

25. Parcsha Yad-dast

148

26. Miscellaneous

148

CONSUMER PROTECTION (MEDIATION) REGULATIONS, 2020 1. Short title and commencement

149

2. Definitions

149

3. Eligibility for empanelment as mediator

150

4. Disqualifications for empanelment

150

5. Procedure for empanelment of mediator

150

6. Removal of mediator

151

7. Re-empanelment of mediator

151

8. Fee of mediators

151

9. Training

152

10. Code of conduct

152

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CONTENTS PAGE

11. Mediation proceedings

152

12. Role of mediator

153

13. Confidentiality

153

14. Communications

153

15. Immunity

153

16. Reports

153

CENTRAL CONSUMER PROTECTION AUTHORITY (ALLOCATION AND TRANSACTION OF BUSINESS) REGULATIONS, 2020 1. Short title and commencement

155

2. Definitions

155

3. Procedure for transaction and allocation of business

155

4. Manner and form in which contracts may be executed

156

5. Affixation of Common Seal

156

6. Reimbursement

156

7. Effect of any irregularity of procedure

156

CENTRAL CONSUMER PROTECTION AUTHORITY (PROCEDURE FOR ENGAGEMENT OF EXPERTS AND PROFESSIONALS) REGULATIONS, 2021 1. Short title and commencement

157

2. Definitions

157

3. Engagement of experts and professionals

158

4. Functions of experts and professionals

158

5. Qualifications, experience and classification of experts and professionals

158

6. Remuneration payable to experts and professionals

158

7. Evaluation of performance

158

8. Procedure of selection of experts and professionals

158

9. Terms and condition of engagement of experts and professionals

159

10. Power to relax

159

11. Interpretation

159

CONTENTS

I-16 PAGE

SCHEDULE I

159

SCHEDULE II

161

CENTRAL CONSUMER PROTECTION AUTHORITY (SUBMISSION OF INQUIRY OR INVESTIGATION

BY THE INVESTIGATION WING) REGULATIONS, 2021 1. Short title and commencement

162

2. Definitions

162

3. Opinion on existence of prima facie case

162

4. Preliminary inquiry

163

5. Issue of direction to cause investigation on prima facie case

163

6. Communication of order when no prima facie case found

163

7. Investigation by the Director General

163

GUIDELINES FOR PREVENTION OF MISLEADING ADVERTISEMENTS AND ENDORSEMENTS FOR MISLEADING ADVERTISEMENTS, 2022 1. Short title and commencement

165

2. Definitions

165

3. Application

166

4. Conditions for non-misleading and valid advertisement

166

5. Conditions for bait advertisements

167

6. Prohibition of surrogate advertising

167

7. Free claims advertisements

168

8. Children targeted advertisements

168

9. Advertisements prohibited by law

170

10. Guidelines not in derogation of other laws

170

11. Disclaimers in Advertisements

170

12. Duties of manufacturer, service provider, advertiser and advertising agency

170

13. Due diligence required for endorsement of advertisements

171

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CONTENTS PAGE

14. Disclosure of material connection

172

15. Interpretation

172

GUIDELINES FOR PREVENTION AND REGULATION OF GREENWASHING OR MISLEADING ENVIRONMENTAL CLAIMS, 2024 1. Short title and commencement

173

2. Definitions

173

3. Application

174

4. Prohibition against engaging in greenwashing or misleading environmental claims

174

5. Substantiation of environmental claims

175

6. Adequate disclosures

175

7. Other claims

176

8. Guidelines not in derogation of other laws

176

9. Interpretation

176

10. Contravention of guidelines

176

ANNEXURE 1 : GUIDANCE NOTE

176

Consumer Protection Act, 2019 [35 OF 2019]* An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto.

Be it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY Short title, extent, commencement and application.

1. (1) This Act may be called the Consumer Protection Act, 2019.

1

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall come into force on such date as the Central Government may, by notification†, appoint and different dates may be appointed for different States and *Assented by the President of India on 9-8-2019.

1. Enforced with effect from 9-8-2019. †Notification No. S.O. 2351(E), dated 15-7-2020 - In exercise of the powers conferred by sub-section (3) of section 1 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby appoints the 20th day of July, 2020 as the date on which the following provisions of the said Act shall come into force, namely:— Chapter

Sections

I

Section 2 [Except clauses (4), (13), (14), (16), (40)]

II

Sections 3 to 9 (both inclusive);

IV

Sections 28 to 73 (both inclusive); [Except sub-clause (iv) of clause (a) of sub-section (1) of section 58]

V

Sections 74 to 81 (both inclusive);

VI

Sections 82 to 87 (both inclusive);

VII

Sections 90 and 91; [Except sections 88, 89, 92 & 93]

VIII

- Sections 95, 98, 100 - Section 101 [Except clauses (f) to (m) and clauses (zg), (zh) and (zi) of sub-section (2)].

- Sections 102, 103, 105, 106, 107 [Except sections 94, 96, 97, 99, 104]

(Contd. on page 2)

1

S. 2

CONSUMER PROTECTION ACT, 2019

2

for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

(4) Save as otherwise expressly provided by the Central Government, by notification, this Act shall apply to all goods and services.

COMMENTS SECTION NOTES

1.1 Short Title u

The Short title of this Act is “the Consumer Protection Act, 2019” [Section 1(1)]

u

The Long title of the Act states that this is an Act to protect consumers’ interests by establishing authorities for the timely and effective settlement of consumer disputes.

1.2 Applicability of this Act to all goods and services save those expressly exempted from this Act by the Central Government by notification u

This Act shall apply to all goods [See Section 2(21)] and services [See Section 2(42)], except those which are expressly exempted from the purview of this Act by the Central Government by notification in the Official Gazette.

Definitions.

2. In this Act, unless the context otherwise requires,— (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;

2

(Contd. from page 1) Notification No. S.O. 2421(E), dated 23-7-2020.—In exercise of the powers conferred by sub-section (3) of section 1 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby appoints the 24th day of July, 2020 as the date on which the following provisions of the said Act shall come into force, namely:—2 Chapter

Sections

I

Definition

Section 2 [clauses (4), (13), (14), (16), (40)]

III

Central Consumer Protection Authority

Sections 10 to 27 (both inclusive)

IV

Consumer Disputes Redressal Commission

Sub-clause (iv) of clause (a) of sub-section (1) of

VII

Offences and Penalties

Sections 88, 89, 92 and 93.

VIII

Miscellaneous

- Sections 94, 96, 97 and 99.

- Clauses (f) to (m) of sub-section (2) and clauses (zg), (zh) and (zi) of sub-section (2) of section 101 - Section 104

2. Enforced with effect from 20-7-2020.

3

CONSUMER PROTECTION ACT, 2019

S. 2

(2) “appropriate laboratory” means a laboratory or an organisation—

3

(i) recognised by the Central Government; or (ii) recognised by a State Government, subject to such guidelines as may be issued by the Central Government in this behalf; or (iii) established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect; (3) “branch office” means—

3

(i) any office or place of work described as a branch by the establishment; or (ii) any establishment carrying on either the same or substantially the same activity carried on by the head office of the establishment; (4) “Central Authority” means the Central Consumer Protection Authority established under section 10;

4

(5) “complainant” means—

3

(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; or (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; (6) “complaint” means any allegation in writing, made by a complainant for obtaining any relief provided by or under this Act, that—

3

(i) an unfair contract or unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; (ii) the goods bought by him or agreed to be bought by him suffer from one or more defects; (iii) the services hired or availed of or agreed to be hired or availed of by him suffer from any deficiency; (iv) a trader or a 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; or

3. Enforced with effect from 20-7-2020.

4. Enforced with effect from 24-7-2020.

S. 2

CONSUMER PROTECTION ACT, 2019

4

(b) displayed on the goods or any package containing such goods; or (c) displayed on the price list exhibited by him by or under any law for the time being in force; or (d) agreed between the parties; (v) the goods, which are hazardous to life and safety when used, are being offered for sale to the public— (a) in contravention of standards 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; COMMENTS SECTION NOTES

2.1 Definition of “Consumer” [Section 2(7)] (A) The term “consumer” is defined to mean the following: (a) Any person who buys any goods for a consideration. (b) Any user of such goods other than the person in (a) above who uses the goods with the approval of such person. (c) Any person who hires or avails of any service for a consideration. (d) Any beneficiary of service other than the person in (c) above, when such services are availed by the beneficiary with the approval of such person.

(B) Consideration for goods/services may be paid or promised or partly paid and partly promised, or payable under any system of deferred payment.

(C) The expressions “buys any goods” and “hires or avails any services” include. u

offline or online transactions through electronic means [e-commerce-Section 2 (16)] or

u

by teleshopping,

u

direct selling, or

u

multi-level marketing;

(D) The term “consumer” shall not include a person who obtains such goods for resale or for any commercial purpose.

(E) The term “consumer” shall not include a person who avails such service for any commercial purpose.

5

CONSUMER PROTECTION ACT, 2019

S. 2

(F) The expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of selfemployment.

2.2 Definition of “Complaint” [Section 2(6)] The ingredients of a “Complaint” are: u

It is an allegation.

u

Allegation is regarding any of the following matters [sub-clauses (i) to (vii) of this clause]: n

Unfair contract [See Section 2(46)]

n

Unfair Trade Practice(UTP) [See Section 2(47)]

n

Restrictive Trade Practice(RTP) [See Section 2(41)]

n

Defects in goods bought

n

Deficiency in services hired/availed

n

Charging excess price

n

Goods offered for sale are hazardous/unsafe

n

Services are hazardous/unsafe

n

Claim for product liability action against the product manufacturer, product seller or product service provider.

u

Allegation is made by a complainant [See Section 2(5)]

u

Allegation is in writing,

u

Allegation is made for obtaining any relief provided by or under this Act. In other words, the complaint must seek any relief provided by this Act.

Allegations that may be made by a complainant (as per sub-clauses (i) to (vii) of this clause) in a complaint may be one or more of the following: 2.2-1 Unfair contract/UTP/RTP u

an unfair contract [See Section 2(46)] or unfair trade practice [See Section 2(47)] or a restrictive trade practice [See Section 2(41)] has been adopted by any trader [See Section 2(45)] or service provider;

2.2-2 Defects in goods bought/agreed to be bought u

the goods [See Section 2(21)] bought by him or agreed to be bought by him suffer from one or more defects [See Section 2(10)];

2.2-3 Deficiency in services u

the services [See Section 2(42)] hired or availed of or agreed to be hired or availed of by him suffer from any deficiency [See Section 2(11)];

2.2-4 Overcharging of price u

a trader or a 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; or (b) displayed on the goods or any package containing such goods; or (c) displayed on the price list exhibited by him by or under any law for the time being in force; or (d) agreed between the parties;

S. 2

CONSUMER PROTECTION ACT, 2019

6

2.2-5 Hazardous/unsafe goods u

the goods, which are hazardous to life and safety when used, are being offered for sale to the public— (a) in contravention of standards 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;

2.2-6 Hazardous services u

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;

2.2-7 Claim for product liability action u

a claim for product liability action lies against the product manufacturer, product seller or product service provider, as the case may be;

2.3 Defect [Section 2(10)] u

“Defect” means any fault, imperfection or shortcoming in relation to any goods or product.

u

Such fault, imperfection or shortcoming may be in the quality, quantity, potency, purity or standard of the goods/product.

u

The existence of such fault, imperfection or shortcoming is to be judged/determined with reference to: n

quality, quantity, potency, purity or standard of the goods/product which is required to be maintained by or under any law for the time being in force, or

n

quality, quantity, potency, etc required to be maintained under any contract, express or implied, or

n

quality, quantity, potency, etc claimed by the trader in any manner whatsoever in relation to the goods or product.

The expression “defective” shall be construed accordingly.

2.4 Deficiency [Section 2(11)] u

“Deficiency” means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of a service.

u

Such fault, imperfection, shortcoming or inadequacy is to be judged/ determined with reference to:

u

n

quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force.

n

quality, nature and manner of performance which has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

The term “deficiency” also includes: (i) any act of negligence or omission or commission by such person which causes loss or injury to the consumer; and (ii) deliberate withholding of relevant information by such person to the consumer;

2.5 Goods [Section 2(21)] u

“Goods” means every kind of movable property.

7

CONSUMER PROTECTION ACT, 2019 u

S. 2

The term “goods” also includes “food” [See clause (j) of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006 (34 of 2006)]

2.6 Unfair Contract [Section 2(46)] “Unfair contract” means a contract between a manufacturer or trader or service provider on one hand, and a consumer on the other, having such terms which cause significant change in the rights of such consumer.

2.6-1 The following are some examples of terms in a contract which will result in a contract being regarded as unfair contract: (i) Manifestly excessive security deposits from consumer: requiring manifestly excessive security deposits to be given by a consumer for the performance of contractual obligations; or (ii) Imposing wholly disproportionate penalty on consumer for breach of contract: imposing any penalty on the consumer, for the breach of contract thereof which is wholly disproportionate to the loss occurred due to such breach to the other party to the contract; or (iii) Refusing to accept prepayment: refusing to accept early repayment of debts on payment of applicable penalty; or (iv) Clause for unilateral termination of contract by a party without reasonable cause: entitling a party to the contract to terminate such contract unilaterally, without reasonable cause; or (v) Permitting assignment of contract to consumer’s detriment without consumer’s consent: permitting or has the effect of permitting one party to assign the of contract to the detriment of the other party who is a consumer, without his consent; or (vi) Unreasonable charge/obligation/condition imposed on consumer: imposing on the consumer any unreasonable charge, obligation or condition which puts such consumer to disadvantage;

CASE LAWS u

Complaint - Complaint is not a ‘suit’ - EICM Exports v. South Indian Corpn. AIR 2009 SC 3127.

5

(7) “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; or (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 beneficiary 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,

5. Enforced with effect from 20-7-2020.

S. 2

CONSUMER PROTECTION ACT, 2019

8

or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.

Explanation.—For the purposes of this clause,— (a) the expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment; (b) the expressions “buys any goods” and “hires or avails any services” includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing; COMMENTS CASE LAWS u

Illustrations of consumer - A person purchasing truck for self-employment, appointing a driver to ply the said truck is still a ‘consumer’ - Madan Kumar Singh v. District Magistrate (2009) 9 SCC 79.

u

Purchase of copier machine by partnership firm to earn livelihood by partners by self employment is covered under CP Act - Remington Rand v. Pioneer Typewriter (1996) 2 CTR 112 (NCDRC) * Vijay Narain v. Chougule Industries II (1993) CPJ 231 (NCDRC).

u

Parent who brings the child to hospital is ‘consumer’. The child, who is beneficiary of the services is also a consumer - Spring Meadows Hospital v. Harjot Ahluwalia (1998) 4 SCC 39 = AIR 1998 SC 1801 = 1998 AIR SCW 1590 = 92 Comp. Cas. 797 = (1998) 2 Comp LJ 228 (SC).

6

(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;

6

(9) “consumer rights” includes,— (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;

6. Enforced with effect from 20-7-2020.

CONSUMER PROTECTION ACT 2019 WITH RULES – BARE ACT WITH SECTION NOTES AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :

Taxmann's Editorial Board Taxmann December 2025 2026 Edition 9789371265591 196 Paperback

Rs. 245 DESCRIPTION Consumer Protection Act 2019 with Rules [Bare Act with Section Notes] by Taxmann is a compact statutory reference, updated for 2026. It consolidates the Act with all related rules, regulations, and the latest guidelines, including the 2024 standards on greenwashing and misleading environmental claims. Section-wise notes provide clear interpretative guidance and compliance tips, making this book essential for navigating India's consumer protection framework.

This book is intended for the following audience: • Legal Practitioners & Judicial Officers • Corporate Counsels, Compliance Officers & Industry Executives • Consumer Rights Organisations, Activists & NGOs • Academicians, Researchers & Students • Consumers & General Public The Present Publication is the 2026 Edition, covering the amended and updated text of the Consumer Protection Act [Act No. 32 of 2019] and Rules, with the following noteworthy features: • [Complete & Updated Text] Full text of the Consumer Protection Act 2019 with all current amendments and notifications • [Latest Regulatory Coverage] Includes all recent rules, such as those on e-commerce, direct selling, mediation, misleading advertisements (2022), and greenwashing (2024) • [Section Notes] Practical notes clarify statutory terms, compliance obligations, and important judicial developments • [Pre & Post-Amendment References] Provides footnotes on prior legal positions for easy comparison • [Comprehensive Allied Legislation] Covers all allied rules, regulations, and administrative provisions • [User-friendly Design] Logical organisation, detailed subject index, and navigable tables for efficient research • [Trusted Reference] Widely used by practitioners, courts, compliance professionals, and researchers

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