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Consumer Protection Act

Last Updated On -25 Feb 2025

Consumer Protection Act, an act by the parliament of India put into force to protect the rights and interests of consumers. India is a diverse country filled with people with different thought processes, and exploiting individual rights is common. The introduction of this act looked into unfair practices and defective artifact selling. This was a crucial step to empower Indian consumers, laying the foundation for a fair world and securing the authenticity of businesses, the marketplace, and individual rights. Whether buying a phone online, booking a ride online, or purchasing daily essentials, the Consumer Protection Act works to protect the legalities everywhere.

Who is a Consumer according to the Consumer Protection Act?

In simple terms, from the moment a person is born, they need and consume clothes, milk, and water, among several other things.

According to section 2(7) of the Consumer Protection Act, 2019, a consumer is someone who— "buys any goods or avails a service by paying, partly paying, or promising to pay, but does not include a person who obtains goods for resale or fulfillment of employment purposes.”.

Key points explaining the features of a consumer:

A consumer buys goods or avails services for personal use
A transaction, or "consideration,” is essential and involves some form of payment, whether partial or complete, or a payment agreement in the future
Any goods or services bought and then put for sale do not come under consumerism
If any goods bought by a person are put to use for self-employment purposes, this is considered consumerism.

Rights of Consumers

Certain rights are provided to consumers according to the act for their safety from fraud and to raise awareness among citizens so they understand their rights and responsibilities.

The key rights provided by the Consumer Protection Act to consumers are:

Right to Safety: Protection against troublesome goods or services
Right to Information: Consumers must be informed thoroughly about the product
Right to Choose: Consumers must feel free to choose goods or services
Right to be Heard: Consumers can file complaints anytime they want
Right to Seek Redressal: Consumers can ask for compensation for damaged goods
Right to Consumer Education: Consumers should be aware of their rights and responsibilities

Central Consumer Protection Authority ( CCPA )

The CCPA was created to tackle consumers' concerns, i.e., misleading advertisements and damaged goods and services, especially those related to the e-commerce platform.

CCPA was established under Consumer Protection Act, 2019
The Ministry of Consumer Affairs, Food & Public Distribution governs CCPA
The headquarters is in New Delhi.
The main objective is to protect consumer rights and ensure fair business practices.

Consumer Protection Redressal Mechanism

The Consumer Protection Act 20 ensured a simplified Consumer Protection Redressal Mechanism, making it easier for both the government and consumers to address a complaint.

The key features of the consumer protection redressal mechanism are:

The Three-Tier Consumer Dispute Redressal Commissions ( CDRCs )
Online Complaint Filing
No Need for Lawyers
Fast Resolutions
Heavy Penalties

The Three-Tier Consumer Dispute Redressal Commissions ( CDRCs )

There are three levels of consumer commissions based on claiming the amount and the people who can file the complaint accordingly.

The table for the three-tier dispute redressal commission is:

Level	Claim Amount	Who can File
District Commission	Up to 1 crore	Individual consumers, legal hairs, or group of consumers
StateCommissionn	1 crore - 10 crore	Appeals against District Commission orders
National Commission	Above 10 crores	Appeals against State Commission orders

Online Complaint Filing: E-Daakhil Portal

There are now launched online portals through which complaints can be filed directly without any hassle.

The website is https://edaakhil.nic.in/
It supports easy filing of complaints
Tracks the status of cases in real-time
Virtual addressing of the complaints
Online and easy document submission

No Need for Lawyers

Since online portals are available and the process is hassle-free, the whole problem can be solved without hiring lawyers, making it cost-effective and consumer-friendly.

Fast Resolutions

According to the Consumer Protection Act 2019, there is a strict requirement to resolve cases under the stated timeline.

Cases that do not require lab testing or have evidence should be solved in 90 days.
Cases requiring lab testing or evidence should be solved in 150 days.

Heavy Penalties

The Consumer Commission possesses the power to impose heavy penalties over unfair practices, which include,

Refund & Compensation: Orders which are defective or poor services
Product Recall Orders: If the product is unsafe
Fines on Companies & Advertisers: For misleading the consumers

Importance of the Consumer Protection Act

The Consumer Protection Act is a subtle but powerful tool in handling legalities against consumers. If the consumer has followed the guidelines, however big or small the purchase is, the act will provide protection.

The key reasons why the Consumer Protection Act is important are:

Provides product liability
Punishment for defaulters
Celebrities endorsing the defective brand can be sued
No unfair trade practices
Digital transactions
Covers all online platforms, from shopping to food and ticket bookings

Frequently Asked Questions ( FAQs )

Who is a consumer?

Key points explaining the features of a consumer:

A consumer buys goods or avails services for personal use.
A transaction, or "consideration,” is essential, which involves some form of payment, whether partial or complete, or a payment agreement in the future.
Any goods or services bought and then put for sale do not come under consumerism.
If any goods bought by a person are put to use for self-employment purposes, this is considered consumerism.