Consumer Protection Laws in India

The Consumer Protection Act, implemented in 1986, gives easy and fast compensation to consumer grievances. It safeguards and encourages consumers to speak against insufficiency and flaws in goods and services. If traders and manufacturers practice any illegal trade, this act protects their rights as a consumer. The primary motivation of this forum is to bestow aid to both the parties and eliminate lengthy lawsuits.

This Protection Act covers all goods and services of all public, private, or cooperative sectors, except those exempted by the central government. The act provides a platform for a consumer where they can file their complaint, and the forum takes action against the concerned supplier and compensation is granted to the consumer for the hassle he/she has encountered.

The government enacted the Consumer Protection Act, 2019 (‘Act’) to protect consumer rights and interests. The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986.

The Act aims to achieve public welfare by enabling consumers to participate directly in the market. It covers all goods and services by the private and public sectors. It is a weapon in the hands of the consumers for enforcing consumer rights and fighting against exploitation by manufacturers, traders, sellers and providers of services.

consumer protection laws in india

What is Consumer Rights?

Every country provides a set of consumer rights to ensure maximum protection for its citizens. Consumer rights allow customers to have the required information about goods and services while purchasing them. Even though manufacturers, traders, sellers and businessmen know their responsibilities towards society, they could exploit the consumers through fraud, unfair trade practices, etc. 

Consumer rights protect consumers against such unfair practices and enable them to enforce these rights. In India, the government provides consumer rights under the Consumer Protection Act, 2019 to protect their interests.

Consumer Definition

The Consumer Protection Act defines a consumer as a person who buys goods or services for consideration (NOT for resale). Also, a consumer is who uses the goods and services with the permission of the person who purchases the goods or services. The Act covers all goods and services including banking, e-commerce, telecom, insurance, electricity, transportation in the private and public sector.

Objective of the Consumer Protection Act

  • protect against the marketing of goods which are hazardous to life and property;
  •  inform about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices;
  •  assure, wherever possible, access to an authority of goods at competitive prices;
  • hear and to assure that consumers interests will receive due consideration at appropriate forums;
  • seek redressal against unfair trade practices or unscrupulous exploitation of consumers;
  • consumer education.

Consumer Rights and Responsibilities

The Rights of the Consumer

  • Right to Safety- Before buying, a consumer can insist on the quality and guarantee of the goods. They should ideally purchase a certified product like ISI or AGMARK.
  • Right to Choose- Consumer should have the right to choose from a variety of goods and in a competitive price.
  • Right to be informed- The buyers should be informed with all the necessary details of the product, make her/him act wise, and change the buying decision.
  • Right to Consumer Education- Consumer should be aware of his/her rights and avoid exploitation. Ignorance can cost them more.
  • Right to be heard- This means the consumer will get due attention to express their grievances at a suitable forum.
  • Right to seek compensation- The defines that the consumer has the right to seek redress against unfair and inhumane practices or exploitation of the consumer.

The Responsibilities of the Consumer

  • Responsibility to be aware – A consumer has to be mindful of the safety and quality of products and services before purchasing.
  • Responsibility to think independently– Consumer should be well concerned about what they want and need and therefore make independent choices.
  • Responsibility to speak out- Buyer should be fearless to speak out their grievances and tell traders what they exactly want
  • Responsibility to complain- It is the consumer’s responsibility to express and file a complaint about their dissatisfaction with goods or services in a sincere and fair manner.
  • Responsibility to be an Ethical Consumer- They should be fair and not engage themselves with any deceptive practice.

Importance of Consumer Rights

Many people complain that they receive contaminated or substandard products, goods or services for which they pay the entire price. Such products can cause harm to the health of consumers. Thus, consumer protection is a priority for the government. The government has recognised certain consumer rights to protect their interests. 

The Act gives certain consumer rights to the people to ensure that the manufacturers or sellers do not cheat them and that the consumers are protected against fraud or exploitation. Consumers must take precautions to buy the correct goods at the right price and know how to avoid loss or injury. Along with having consumer rights, it is also essential to know them to enforce them and get the appropriate remedy/compensation.

Under the Act, consumers can register complaints and be compensated for receiving contaminated or substandard products. It encourages and protects to speak up about defects and inadequacies in services and products. It protects consumers when traders, manufacturers and sellers engage in illicit trade.

How to File a Complaint?

  • Within two years of purchasing the product or services, the complaint should be filled.
  • In the complaint, the consumer should mention the details of the problem. This can be an exchange or replacement of the product, compensation for mental or physical torture. However, the declaration needs to be reasonable.
  • All the relevant receipts, bills should be kept and attached to the complaint letter.
  • A written complaint should be then sent to the consumer forum via email, registered post, fax or hand-delivered. Acknowledgement is important and should not be forgotten to receive.
  • The complaint can be in any preferred language.
  • The hiring of a lawyer not required.
  • All the documents sent and received should be kept.

Procedure to File Consumer Case- Any consumer complaint relating to a good or service must be filed in writing with a District Forum by the consumer along with the fee. On receipt of a complaint, the District Forum may reject or approve the complaint, usually within 21 days from the date of complaint. On the other hand, a copy of the complaint will reach the opposite party for the approval to be made within 45 days.

FAQs

What is the primary consumer protection law in India?

The primary consumer protection law in India is the Consumer Protection Act, 2019. It replaced the Consumer Protection Act, 1986, and aims to provide better protection to the interests of consumers and address their grievances more efficiently.

Who is considered a consumer under the Consumer Protection Act, 2019?

A consumer is defined as any person who buys any goods or avails of any service for a consideration. It does not include a person who obtains goods for resale or for any commercial purpose. However, goods purchased for self-employment are considered.

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