Consumer Protection
Consumer protection is a scoring unit when the 2019 Act's machinery and pecuniary limits are memorised precisely.
Who is a consumer
A person who buys goods or hires services for consideration, including e-commerce purchases, but not for resale or commercial purpose. The Act covers unfair trade practices, restrictive trade practices, defects, deficiency in service and product liability.
Rights and responsibilities
Rights: safety, information, choice, be heard, seek redressal, consumer education. Responsibilities: ask for a bill, check ISI or AGMARK marks, read labels, complain promptly.
Three-tier redressal
- District Commission: up to ₹1 crore.
- State Commission: above ₹1 crore up to ₹10 crore.
- National Commission: above ₹10 crore. Appeals go from District to State, and from State to National. A complaint must be filed within two years of the cause of action.
Worked example
A buyer pays ₹45 lakh for a car with a recurrent engine defect within a year. The consideration is within ₹1 crore, so the District Commission has jurisdiction. If the same defect concerned a ₹3 crore vehicle, the State Commission would hear it. Reasoning: jurisdiction follows the value of consideration paid, not the compensation claimed.
Traps
- Using pre-2019 limits such as ₹20 lakh and ₹1 crore.
- Saying the National Commission hears appeals from the District Commission.
- Forgetting that e-commerce transactions are covered.
- Treating a purchase for resale as a consumer purchase.