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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
CONTENTS
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
I-7
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
I-9
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
I-11
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
I-13
CONTENTS
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
I-17
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.
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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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