Consumer Protection and Consumer Rights
The Consumer Protection Act, 2019
The Act, in force from 20 July 2020, replaced the 1986 Act. A consumer buys goods or hires services for consideration, including online and teleshopping purchases, and includes any beneficiary of the service. Purchases for resale or commercial purpose are excluded.
Rights and reliefs
Six rights: safety, information, choice, being heard, redressal and consumer education. Reliefs include replacement, repair, refund, compensation for loss or injury, and removal of defects.
Three-tier redressal
District Commission - value of goods or services paid up to ₹50 lakh; State Commission - above ₹50 lakh up to ₹2 crore; National Commission - above ₹2 crore. A complaint must be filed within two years of the cause of action, and appeals move up the hierarchy.
CCPA, product liability and e-commerce
The Central Consumer Protection Authority can investigate, recall unsafe goods, order refunds and penalise misleading advertisements - up to ₹10 lakh for a first offence and ₹50 lakh for later ones, with liability for endorsers. The E-Commerce Rules, 2020 require disclosure of seller details, country of origin and grievance officers.
Worked example
A buyer pays ₹80 lakh for a flat and finds structural defects. Reasoning: the consideration paid is ₹80 lakh, which falls in the State Commission's band (above ₹50 lakh, up to ₹2 crore). Filing before the District Commission would be returned for lack of jurisdiction.
Traps that cost marks
- Using the 1986 pecuniary limits.
- Counting the two-year limitation from the purchase date instead of the cause of action.
- Treating a commercial buyer as a consumer.
- Saying the CCPA awards compensation; it issues orders, while commissions adjudicate complaints.