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Consumer & Competition Law

Consumer Law

Consumer Law

The practice of protecting consumers from unfair business practices is known as consumer protection. It describes the measures taken to shield customers from dishonest and dishonest business activities by vendors, producers, service providers, etc., and to offer recourse in the event that their legal rights have been infringed. The Consumer Protection Act of 2019 oversees the administration of consumer rights protection in India. The 1986 Consumer Protection Act was superseded by the 2019 Consumer Protection Act. Numerous sections in the revised Act take into account the difficulties experienced by contemporary, tech-dependent customers. The Act also includes a number of clauses aimed at safeguarding and advancing consumer rights.

Meaning of ‘consumer’

A consumer is a person or group of people who buy products and services for their own consumption only, without intending to manufacture or resell them. According to Section 2(7) of the Consumer Protection Act of 2019, a consumer is any individual who purchases products or services for payment and uses them for their own use as well as for resale or business purposes. It has been made clear in the definition of a customer that the terms “buys any goods” and “hires or avails any services” also refer to any online transactions carried out via electronic channels, as well as direct selling, teleshopping, and multi-level marketing.

The Need for the Consumer Protection Act of 2019.

The Indian legislature enacted the Consumer Protection Act, 2019, to address issues such as violations of consumer rights, unfair trade practices, misleading ads, and other circumstances that are detrimental to consumer rights. The Parliament’s purpose in drafting the Act was to include protections for e-consumers. As technology has advanced, the purchasing and selling of products and services online has expanded significantly in recent years.

The Act aims to better safeguard consumers’ rights and interests by establishing Consumer Protection Councils to settle disputes and give adequate compensation to customers if their rights are violated. It also provides fast and effective resolution of consumer complaints via alternative dispute resolution processes. The Act also supports consumer education in order to teach consumers about their rights and obligations, as well as how to resolve their complaints.

Objectives of Consumer Protection Act, 2019

The Act’s primary goal is to protect consumers’ interests while also establishing a stable and strong framework for resolving consumer complaints. The Act intends to:

  1. Prevent the promotion of products that are dangerous to life and property.
  2. To protect customers from unfair trade practices, provide information about the standard, purity, amount, potency, quality, and pricing of goods.
  3. Create Consumer Protection Councils to safeguard customers’ rights and interests.
  4. Assure, wherever possible, access to an authority of goods at competitive prices.
  5. Seek recourse for unethical consumer exploitation or unfair trade practices.
  6. Protect consumers by designating agencies to handle and resolve consumer disputes in a timely and adequate manner.
  7. Establish the sanctions for violations of the Act.
  8. Listen and make sure that, in the event of a problem or dispute, the welfare of the consumers will be given the proper attention at the proper forums.
  9. Give consumers consumer education so they can understand their rights.
  10. Provide alternate dispute resolution procedures for the prompt and efficient handling of customer complaints.

What are consumer rights under Consumer Protection Act, 2019

The Consumer Protection Act of 2019 gives consumers six rights. Under Section 2(9) of the Act, the following consumer rights are listed:

  1. The consumer’s right to be shielded from the promotion of products and services that pose a risk to life or property.
  2. The consumer’s right to know the quality, amount, potency, purity, standard, and cost of commodities, products, or services in order to defend themselves against unfair commercial practices.
  3. The right of a customer to obtain a range of products, services, and items at affordable costs.
  4. The right to file a complaint against unfair and restrictive trade practices in the appropriate forums.
  5. The right, in the event that the vendor has harmed them, to obtain appropriate restitution or consideration from the appropriate consumer forums.
  6. The right to consumer education.

Changes incorporated in Consumer Protection Act, 2019

When the Consumer Protection Act of 2019 was passed, the following modifications were made:

  1. When the value of the goods, services, or products paid to the seller does not exceed 50 lakh rupees, the District Commissions shall have the authority to consider complaints.
  2. When the amount of the commodities, services, or products paid to the seller exceeds 50 lakh rupees but falls below two crore rupees, State Commissions shall have the authority to evaluate complaints.
  3. When the value of the goods, services, or products paid to the vendor surpasses two crore rupees, the National Commission will have the authority to consider complaints.
  4. The Act also stipulates that all consumer dispute complaints must be resolved as quickly as practicable. If the complaint does not call for analysis or testing of the goods and services, it must be resolved within three months of the opposing party receiving notice under this Act; if it does, it must be resolved within five months.
  5. Additionally, the Consumer Protection Act of 2019 makes it easier for customers to lodge complaints online. In this context, the Central Government established the E-Daakhil Portal, which offers consumers throughout India a quick, easy, and affordable way to contact the appropriate consumer forums in the event that a dispute emerges.
  6. The Consumer Protection Act of 2019 establishes mediation and alternative dispute resolution procedures so that the parties can settle their disagreement amicably without having to deal with the hassles of going to court.
  7. The 2019 Consumer Protection Act covers measures pertaining to unfair contracts, product liability, and three new unfair trade practices. The previous Act, on the other hand, only included six categories of unfair trade practices.
  8. The Act of 2019 serves as a guide for advancing and defending consumer rights.
  9. Selection committees are not allowed under the Consumer Protection Act of 2019; instead, the Central Government is authorized to choose the members.

Because digitization has made it easier to pay, give customers more options, provide better services, and more, the Indian Parliament passed and implemented the Consumer Protection Act, 2019 to include measures for e-commerce in response to the changes in the digital age.

Offences and penalties under Consumer Protection Act, 2019

The following is a list of the offenses and punishments covered by this Act.

  1. Punishment for false and misleading advertisements:  In accordance with Section 89 of the Act, any manufacturer or service provider that advertises inaccurate or misleading information faces up to two years in prison and a fine of up to ten lakh rupees.
  2. Punishment for manufacturing, selling, distributing products containing adulterants: Any anyone who makes, distributes, or sells goods containing adulterants faces penalties under Section 90 of the Consumer Protection Act of 2019 in the following situations: 
  • If the consumer is not harmed by the contaminated product, they could be imprisoned for up to six months and fined up to one lakh rupees.
  • A year in jail and a fine of up to three lakh rupees will be imposed if the product containing the adulterant results in harm that is not considered to be severe.
  • A seven-year jail sentence and a fine of up to five lakh rupees will be imposed if the product containing the adulterant results in injuries that amount to serious hurt.
  • A fine of at least ten lakh rupees and a sentence of seven years in prison, with the possibility of life in prison, will be imposed if the product causes the consumer to die.

3. Punishment for manufacturing, selling, and distributing spurious products: Any anyone who creates, distributes, or sells counterfeit goods faces penalties under Section 91.

How do consumers benefit from Consumer Protection Act, 2019

The Consumer Protection Act, 2019 is a significant piece of legislation brought as it is beneficial for the consumers. The Act widens the scope of protection regarding the rights and interests of consumers. 

  1. Unfair contracts: Section 2(46) of the Act established the concept of a “unfair contract,” which encompasses agreements that demand disproportionate security deposits from the customer in order to fulfill contractual duties. Nevertheless, the Act’s inclusion of unfair contracts would allow consumers to protest in these situations and would also hold dishonest companies accountable.
  2. Territorial jurisdiction: The Act will help consumers seek remedy for their grievances when their rights have been violated since it allows them to file complaints in places where the complainant resides or works for pay.
  3. False and misleading advertisements: The Act establishes severe penalties for such acts or omissions and defines the term “false and misleading advertisements.”
  4. Product liability: According to the definition of “product liability” given by this Act, it is the responsibility of the seller, service provider, or product maker to make up for any damages a customer may sustain as a result of a defective good or service.
  5. Mediation and alternative dispute resolution: In order to settle consumer complaints quickly and effectively, the Act gives consumers the option to use mediation and alternative dispute resolution procedures.
  6. E-filing of complaints:  Additionally, the Act makes it easier to electronically file complaints and request Commission video conference hearings. hence giving them an easy way to air their complaints.

The following industries are included in our business practices:

  1. Services for Business and Professionals,
  2. Automobiles, Transport, and Aviation,
  3.  Sector of Manufacturing,
  4. The Real Estate
  5. Media & Entertainment,
  6. Pharmaceutical,
  7. Infrastructure and construction,
  8. Telecommunication and IT,
  9. Agriculture,
  10. Hardware and software for computers,
  11. Food & Beverages.
  12. Paper & Chemicals,
  13. Gas & Oil, 
  14. Financial Services,
  15.  Health Care & Hospitality,
  16.  Insurance
  17.  Maritime & Shipping,

We provide the following legal services to assist our clients legally:

  1. Collaboration and joint ventures abroad
  2. Companies’ incorporation in India and abroad
  3. Compliances in the Secretariat,
  4. Holding companies and subsidiaries with 100% ownership;
  5. Establishment of Representative, Liaison, and Branch Offices
  6. Distribution, Agency & Franchise Agreements
  7.  Collaboration and joint ventures abroad
  8. Special Economic Zones, warehousing
  9. Liquidations and winding up
  10. Disputes Between Companies and Shareholders
  11. Reorganization and Reconstruction of Businesses,
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