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Cheated as a Consumer? 8 Important Consumer Court Judgements You Should Know About

From Supriyo Ranjan Mahapatra's complaint against Amazon for a cancelled order to Dinesh Prasad Raturi's legal action against Bata India for bag charges, here are 8 cases that highlight the importance of consumer rights and awareness. #WorldConsumerRightsDay

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Top 10 Case Study on Consumer Rights

We know consumer laws and courts exist, but only by reading through some case law can you understand how you as a consumer can exercise your rights!

Table of Contents

On an everyday basis, we purchase products and services. From our basic necessities like food and clothing to services like banking and education, we are dependent on companies and organisations to live comfortably in the present day, and we give them our hard-earned money in return. But sometimes, companies might fail to provide quality services or products. Many know there exist consumer courts and laws that protect consumers from consumer exploitation . But have you ever wondered who goes to these courts and what types of cases are filed? You would be surprised to know how basic these cases can be. So, here are 10 interesting case study on consumer rights curated for you.

Top 10 Case Studies on Consumer Rights

1. banks can’t always escape using ‘technical difficulties’.

We have come to rely on banks so much. A recent case study on consumer rights highlighted the need for stronger regulations. More than ever, most of our transactions are digital and heavily reliant on banks for these. Have you ever had your transaction fail due to the server being down or other errors?

Dipika Pallikal, a squash champion and Arjuna awardee found herself in an awkward situation when she used her Axis Bank Debit Card in a hotel at Netherlands’ Rotterdam failed. She had had 10 times the bill amount in her account at that time. Due to this, she faced a loss of reputation and humiliation. The bank said the incident was a case of ‘ Force Majeure’ (an act of god/ something beyond control)

Apart from that, the bank had also returned a cheque of ₹1 lakh issued to her by the government of India and blamed it on a technical error.

Dipika moved the consumer court in Chennai against Axis Bank

Court Decision

The court found that there was a deficiency of service on the part of Axis Bank and directed the bank to pay a compensation of ₹5 lakh and ₹5000 as expenses.

Key Takeaway

Banks are like any other service provider. We trust them with our money and they must perform the services we were promised. They cannot hide behind ‘technical difficulties’ or ‘ force majeure ’ and let customers suffer for it.

2. You Don’t Have to Be a Celebrity to Win a Consumer Case

A humble tea vendor, Rajesh Sakre, is an example of this. He had ₹20,000 in his State Bank of India account and had withdrawn ₹10,800. On his next visit to the ATM, however, he realized all his money was gone. When he asked the bank authorities they blamed it on him. 

So, he went to the District Consumer Disputes Redressal Forum with his grievance. He couldn’t afford a lawyer and he argued the case himself. This case study on consumer awareness presents insights into how consumers are becoming more vigilant.

The forum ruled in his favor and ordered the State Bank of India to return the ₹9,200 with 6% interest, pay ₹10,000 as compensation for mental anguish caused by the issue, and ₹2,000 for legal expenses.

It doesn’t matter who you are, as long as you have a valid case you can approach the Consumer Cases Forum. And even big companies and government entities like the State Bank of India can be made to answer for their mistakes.

3. Not All Free Items Are Welcome

Imagine you bought a bottle of Pepsi and found a packet of gutka floating in it! It happened to Rajesh Rajan from Ahmedabad when he bought Pepsi from a local store. He sent a legal notice to the company immediately and approached a Consumer Cases Dispute Redressal Forum. Every case study on consumer complaints tells a unique story of a consumer’s journey towards justice.

Moreover, he claimed that there was a deficiency in service that could have caused a health hazard to him. He demanded compensation of ₹5 lakh for the same.

The consumer forum passed an order in favor of Rajesh Rajan and directed the company to pay a total of ₹4008 (₹4000 for compensation and ₹8 for the Pepsi he purchased).

Rajesh moved the State Consumer Dispute Redressal Commission, asking for higher compensation as ₹4008 was too low and he had spent ₹500 on sample testing itself. The State Commission passed an order asking the company to pay ₹20,000 as compensation and ₹2000 towards costs as it found Rajesh’s argument reasonable.

Free items are not all welcome! It is a deficiency in service on the part of the provider if you find anything in your food (packaged or otherwise) that isn’t supposed to be there. The Consumer Cases Forums are a good place to take them.

4. Paying More Than the MRP? You Shouldn’t.

It has become common to charge more than the maximum retail price (MRP) for packaged goods. Especially in places like theatres, food courts, railway stations, etc, we see this happen a lot and mostly ignore it. Among the prominent consumer cases last year, the MRP case stood out for its complexity

Mr Kondaiah from Andhra Pradesh, on the other hand, didn’t ignore it when he noticed that Sarvi Food Court charged him ₹40 for a water bottle where the MRP was ₹20. He filed a case against them in the District Consumer cases Disputes Redressal Forum for ‘unfair trade practice’. He supported his claim by producing the bill. The MRP case study on consumer rights brought to light some gaps in the existing regulations.

The court decided in favour of Mr Kondaiah and said that a practice is not justified just because it is widely common. Mr Kondaiah was awarded a compensation of ₹20,000, ₹20 (the extra money charged) and ₹5,000 in costs. 

No authority has the power to charge above the MRP for any packaged goods. It doesn’t matter where it is sold, you are not required to pay a rupee above the MRP.

5. No MRP at All on the Product?

Baglekar Akash Kumar, a 19-year-old got a book and ₹12,500 because of the book. How? He purchased the book online and when it was delivered, he noticed that there was no MRP mentioned in it. He browsed the internet and saw that the book was sold at different prices in different places.

So, he went to the consumer cases forum and filed a case against Penguin Books India Pvt. Ltd and the paper company.

The court held that not publishing MRP on the product without a valid reason is an ‘unfair trade practice’. MRP exists to ensure that a consumer is not overcharged for the product. So, it is mandatory for companies to print MRP.

The publishers were asked to print the retail price of the book and Akash was awarded ₹10,000 as compensation and ₹2,500 as costs.

It is required under law for companies to put MRP on every product. If you see a product without MRP, then it is a violation of Consumer Cases Protection Laws and you can take them to court. 

6. Medical Services Fall Within the Scope of the CPA

Do medical services fall under CPA? When there was a little confusion in this regard, the Indian Medical Association (IMA) decided to get this question resolved once and for all. The CPA case study on consumer rights brought to light some gaps in the existing regulations. The Medical Services case study on consumer complaints became a landmark case in consumer rights advocacy.

IMA approached the Supreme Court, asking them to declare that medical services are out of the scope of the CPA. They gave the following arguments to support their claim:

• Medical professionals are governed by their own code of ethics made by the Medical Council of India. 
• In the medical profession, it is hard to guarantee the end result of treatments. Many external factors which are out of the control of the professional can impact the outcome. So, allowing consumer claims will cause people to file a case whenever a treatment doesn’t work out.
• There are no medical science experts in the consumer complaints online.
• Medical service provided by government hospitals will not fall under the Act especially when the service is provided for free. 

These were decent points. After consideration, the court settled the claims in the following manner.

Medical services provided by any professional (private or government) will be covered by CPA. This means  people can file a case in a Consumer Court if the service provided is not in confirmation with the Act.

• Doctors and hospitals who treat patients for free cannot be sued by a person who availed their services for free. 
• In a government hospital, where services are provided free of charge – the Consumer Protection Act India would not apply.

Apart from these two exceptions, the Act will apply when a person gets treated in government hospitals for free, when a poor person gets treated for free, and when insurance money is used for treatment.

7. Tired of the False Claims Made by Skin and Hair Care Products Yet?

Maybe you are not tired yet or you are too tired to question. However, a 67-year-old man from Kerala’s remotest areas was tired of these consistent lies and how companies got away with them.

In 2015, K Chaathu complained against Indulekha (beauty product manufacturers) and Mammootty (an actor who was the brand ambassador of the company) for putting up misleading ads. The tagline of the soap was ‘soundaryam ningale thedi varum’ which meant ‘beauty will come in search of you. The ads also claimed that people using the soap would become ‘fair’ and ‘beautiful’ but the 67-year-old didn’t become fair or beautiful.

Funny, right?

Compensation Paid

Indulekha paid him ₹30,000 in an out of court settlement while the initial claim of Chaathu was ₹50,000. When he was asked about this, he said that this case was never about the money but about how these companies put up advertisements every day with false claims. And it is not okay to let these people get away with it.

Key Takeaways

Advertisements are made to sell the products, so exaggeration of results is too common. But this doesn’t make it okay to make false claims just for the sake of selling the products. Making false claims in violation of the CTA.

8. Homebuyers Are Consumers

Imagine you decide to buy a house (a dream come true for many). You do a lot of research, pool your hard-earned money, and pay a real estate developer to build the house for you. They promise to deliver within 42 months but 4 years later they haven’t even started construction. 

This is what happened to two people and they decided to move the National Consumer Disputes Redressal Commission (NCDRC) for it. The Homebuyer’s case study on consumer rights was instrumental in changing local regulations.

NCDRC decided in favour of the homebuyers and asked the real estate developer to refund the money with a simple interest of 9% per annum. They were also awarded a compensation of ₹50,000 each.

The real estate developer challenged this in the Supreme Court, saying that the issue is covered under another Act (Real Estate (Regulation and Development) Act) and therefore cannot be taken in a consumer court. But the Supreme Court denied their argument saying that as long as the other Act explicitly stops people from getting remedy under other laws, they will be allowed to do so.

Our laws are in such a way that even though there are other remedies available, in most cases where you are a buyer of a product or a service, you will have protection under the Consumer Protection Act. 

9. Insurance Claims Cannot be Rejected on Mere Technicalities

We pay the premium and get insurance to protect us from losses we can’t foresee. Sadly, many people have had bad experiences with the insurance company. Om Prakash, for example, had his truck stolen and claimed insurance for the same. The truck was stolen on 23.03.2010, the FIR was filed on 24.03.2010, and the insurance claim was filed on 31.03.2010. 

The insurance investigator was sent and he confirmed that the claim was genuine. The claim was approved for the amount of ₹7,85,000/-. But the amount was never given to Om Prakash. With the rise in consumer court cases , companies are now more cautious about their policies and practices. When he sent the insurance company a legal notice for the same, they replied saying that there was a breach of terms and conditions: 

“immediate information to the Insurer about the loss/theft of the vehicle”

Om Prakash was late to apply for insurance because he was held up by the police to try and recover his vehicle.

While the consumer courts didn’t allow his case, the Supreme Court allowed his appeal and held in favour of him. It was ruled that insurance companies cannot escape from paying the claimants on technical grounds. Especially when the claimant has valid reasons for it.

The Court directed the Respondent company to pay a sum of ₹8,35,000/- to the Appellant along with interest @ 8% per annum. He was also awarded ₹50,000 as compensation.

Over the years, many judgments have been made to ensure that insurance companies are accountable and do not escape from paying valid claims. If you experience a similar situation with your insurance provided, you can approach the consumer court.  

10. iPhone 5S Gold for ₹68 + ₹10,000

Let’s close the list with a fun one! How would it be to get an iPhone at just ₹68? In 2014, Nikhil Bansal (a student) saw this unbelievable offer on Snapdeal (a discount of ₹46,651) and ordered it immediately as any sane person would. He received an order confirmation but later he was told that the order was canceled. They claimed that the offer itself was a technical glitch. “The iPhone case study on consumer complaint showcased the challenges consumers face even in today’s digital age.

When he approached the e-commerce consumer complaints India Forum, he claimed that these kinds of offers were misleading people and it was the duty of Snapdeal to honour the order. The forum ruled in his favor and asked Snapdeal to deliver him the iPhone for ₹68 and asked him to pay a compensation of ₹2,000.

When Snapdeal appealed this order, the compensation was raised to ₹10,000! 

Key Takeaway – Case Study on Consumer Rights

E-commerce stores are just as answerable as any other shop owner under the Consumer Protection Act. So if you face any issues like this with them, consider taking it to the consumer court. Through each case study on consumer rights, we can learn more about our rights and responsibilities

Consumer forums exist to protect consumers from consumer exploitation and ensure that we are not cheated by the companies we pay for getting products or services. Knowing your rights is the first step towards becoming a conscious consumer. 

Don’t hesitate to approach the consumer court if you have a valid claim of consumer exploitation . Even if it is for an ₹ 8 product like Pepsi, a valid claim should be taken to the forum.

What is the Consumer Protection Act?

The Consumer Protection Act is a law that safeguards the interests of consumers against unfair trade practices and ensures their rights to quality goods and services.

When was the Consumer Protection Act passed?

The Consumer Protection Act was passed in 1986 and later updated with the Consumer Protection Act, 2019.

Who is a consumer under the Consumer Protection Act?

A consumer is any individual who purchases goods or services for personal use, not for manufacturing or resale.

Who can file a complaint under the Consumer Protection Act?

A complaint can be filed by a consumer, any recognized consumer association, or the Central or State Government on behalf of a consumer.

What is a consumer rights case study?

A consumer rights case study involves analyzing a real-life scenario where a consumer faced issues with a product or service and sought legal resolution under consumer protection laws.

What are consumer cases in India?

Consumer cases in India refer to legal disputes brought by consumers against businesses for grievances related to defective goods, poor services, or unfair trade practices.

What are some examples of consumer rights?

Examples of consumer rights include the right to safety, the right to be informed, the right to choose, the right to be heard, and the right to redressal.

What is the consumer rights class 10 project?

The consumer rights class 10 project typically involves students researching and presenting on the various rights of consumers and how they are protected under the law.

Who is a consumer class 10 SST project?

In the class 10 Social Science (SST) project, a consumer is defined as an individual who purchases goods or services for personal use and is protected under consumer laws.

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The Top 10 Consumer Court cases and Trails in India – Complete List

Buying goods and services is an inevitable part of our daily lives and problems might occur from the vendors who deliver these goods and services. Below are the top 10 consumer court cases curated for the readers:

Top 10 Consumer Court Cases and Trials in India

1. Dipika Pallikal , a squash champion, and an Arjuna awardee found used her Axis Bank Debit Card in a hotel at Netherlands’ Rotterdam which failed. She had 10 times the bill amount in her account at that time. The bank said the incident was a case of ‘Force Majeure’ (an act of God/ something beyond the control) and returned a cheque of ₹1 lakh issued to her by the government of. Dipika approached the consumer court in Chennai against Axis Bank

Court judgment:

The court found that there was a deficiency of service on the part of the Axis Bank and directed the bank to pay a compensation of ₹5 lakh and ₹5000 as expenses.

2. Poonam Verma v Ashwin Patel & Ors: In this case, the respondent who is a homeopathic doctor, prescribed allopathic medicines for the treatment of a patient who did not respond to the medicine well and subsequently died. Based on the fact that the respondent was qualified and registered to practice under Homeopathy only,

It was found to be in violation of the statutory duty not to practice Allopathy under section 15(3) of the Indian Medical Council Act, 1956. Respondent’s act was held to be actionable negligence was ordered to pay a compensation of three lakhs.

3. A tea vendor, Rajesh Sakre , is an example of this who had ₹20,000 in his State Bank of India account and he withdrew ₹10,800. On his next visit to the ATM, he realized all his money was gone. When he asked the bank authorities they blamed it on him for the fault.

So, he went to the District Consumer Disputes Redressal Forum with his grievance and as he couldn’t afford a lawyer he argued the case himself.

Court Judgement:

The forum ruled in his favor and ordered the State Bank of India to return the ₹9,200 with 6% interest also to pay ₹10,000 as compensation for mental anguish and ₹2,000 for the legal expenses.

4. Baglekar Akash Kumar who was a 19-year-old got a book online and when it was delivered, he noticed that there was no MRP printed on it. He browsed the internet and saw that the book was sold at different prices at different places after which he went to the consumer forum and filed a case against Penguin Books India Pvt. Ltd and the paper company.

The court held non-publishing MRP on the product without a valid reason is ‘unfair trade practice’. MRP ensures that a consumer is not overcharged for the product. So, it is mandatory for companies to print MRP and the publishers were asked to print the retail price on the book Akash was awarded ₹10,000 as compensation and ₹2,500 as costs.

In any consumer court case, the bills and similar legal paperwork are the most powerful and useful weapons for lawsuits. This is why it’s important that you keep hold of the bills carefully. For this you can ask for our agents’ help who are experts in preparing, managing, and overtaking legal paperwork. At DailyFiling, we have consultants who are experienced with all sorts of lawsuits like income tax consultants , GST consultants , company registration agents, and more.

5. Mr. Kondaiah from Andhra Pradesh noticed that Sarvi Food Court charged him ₹40 for a water bottle where the MRP was actually ₹20. He filed his case against them in the District Consumer Disputes Redressal Forum for ‘unfair trade practice’. He supported his claim by producing the bill of the bottle.

The court decided in favor of Mr. Kondaiah and said that the practice is unjustified and Mr. Kondaiah was paid a compensation of ₹20,000, ₹20, and ₹5,000 for the costs.

6. Rajesh Rajan from Ahmedabad bought a Pepsi from a local store and found a gutka floating in it. He sent a legal notice to the Pepsi company immediately and approached a Consumer Dispute Redressal Forum and demanded compensation of ₹5 lakh for the same.

Court Decision

The consumer forum passed an order in favor of Rajesh Rajan and directed the company to pay a total of ₹4008 which on being low was later paid ₹20,000 as compensation and ₹2000 towards costs.

7. In the year 2015, K Chaathu complained against Indulekha (beauty product manufacturers) and Mammootty (an actor who was the brand ambassador of the company) for displaying misleading ads. The ads claimed that people using the soap will become ‘fair’ and ‘beautiful but the 67-year-old didn’t become fair or beautiful.

Indulekha paid Chaathu ₹30,000 in an out-of-the-court settlement while the initial claim of Chaathu was ₹50,000.

8. A person bought a house after researching and pooling hard-earned money and paid to the developer who promised to deliver within 42 months but even after 4 years the construction wasn’t started. So the two people decided to move the National Consumer Disputes Redressal Commission (NCDRC) for it.

The real estate developer was asked to refund the money with a simple interest of 9% per annum. They were awarded a compensation of ₹50,000 each.

You might also read “ How to have a mutual divorce in India ?”

9. 10 iPhone 5S Gold for ₹68 + ₹10,000 LIn 2014, Nikhil Bansal (a student) saw this unbelievable offer on the Snapdeal on iPhone which was quoted for Rs68000 (a discount of ₹46,651) and ordered it immediately. Upon receiving an order confirmation later the order was canceled stating it to be a technical glitch.

The court ruled in his favor and asked Snapdeal to deliver him the iPhone for ₹68 and asked to pay a compensation of ₹2,000 and when Snapdeal appealed this order, the compensation got raised to ₹10,000.

10. Om Prakash’s truck was stolen , and he filed a claim for compensation. The truck was taken on March 23, 2010, the police report was submitted on March 24, 2010, and the insurance claim was filed on March 31, 2010.

The insurance investigator was dispatched to verify the authenticity. The claim for Rs. 7,85,000/- was approved, however the money was never provided to Om Prakash. When he inquired about it, the insurance company responded that there had been a breach of terms and conditions:

“immediate notification of the vehicle’s loss or theft to the insurer”

While the consumer courts rejected his claim, the Supreme Court ruled in his favour. It was decided that insurance companies cannot avoid paying claimants if they have a valid justification for doing so, and the company was ordered to pay the Appellant a payment of Rs. 8,35,000/- plus interest at 8% per annum, as well as a compensation of Rs. 50,000.

These were a few cases to educate us to get rid away of the hesitation of approaching the court for a wrongful act and avail for our right as informed consumers.

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8 Important Cases of Consumer Disputes

The article '8 important cases of consumer disputes' delves into eight pivotal legal cases that have played a crucial role in shaping consumer rights..

The article '8 Important Cases of Consumer Disputes' delves into eight pivotal legal cases that have played a crucial role in shaping consumer rights within India's legal framework governed by the Consumer Protection Act.

Click Here and Read about the History and Development of Consumer Protection Laws in India

Introduction

The buying or hiring of goods & services is a vital facet of our daily lives, depending heavily on trust. Deteriorating this trust can outcome in various significances for consumers, extending from monetary loss to physical harm. The Consumer Protection Act, of 1986, is intended to punctually address such breaking of trust or negligence. To ease this, a hierarchy of 3 tribunals is established:

• the District Consumer Disputes Redressal Forum (DCDRF),
• the State Consumer Dispute Redressal Commission (SCDRC), and
• the National Consumer Dispute Redressal Commission (NCDRC).

These tribunals have gained an understanding of the Consumer Protection Act, safeguarding a stable approach that reflects the needs of both consumers as well as service providers.

A "consumer" is any individual who purchases goods or uses services for individual consumption. This description includes all individuals except one acquiring such goods/ services for commercial/ resale purposes.

A complaint from consumers can be filed by:

• an individual or group of consumers,
• the Central or State Government,
• any duly listed volunteer consumer association,
• or the legal representative of the consumer.
• For a consumer being a minor, the complaint can be made by their legal guardian/ parents.

Click Here to Take a closer look at the Judgment: National Insurance Co. Ltd. v. Harsolia Motors and Ors., (2023) | | Consumer Protection Act, 1986

Let’s discuss some relevant case laws of Consumer Dispute:

1. national insurance company ltd. v. hindustan safety glass works ltd. & anr. [1].

In this case, the insurance company rejected compensation to the respondent for loss caused by heavy rain during a stated period. The refusal was grounded on a policy term stating that the company would not pay for losses or damages happening 12 months post the event. Disgruntled with this renunciation, the insured filed a complaint under the Consumer Protection Act, 1986 , with the National Commission .

The National Commission believed that the insured claim was valid, stating that the goods were protected at the time of the incident and the claim was duly filed the next day. It terminated all arguments stated by National Insurance and ordered the company to compensate for Rs. 21,05,803.89 with 9% interest per annum.

2. Manjeet Singh v. National Insurance Company Ltd. & Anr [2]

In this case, the appellant took a 2nd hand truck by executing a Hire Purchase agreement, with the vehicle insured by the respondent’s insurance company. Once while driving, the appellant stopped the truck at the demand of a passenger who then assaulted the driver and stole the said vehicle. He filed an FIR and notified the finance company, but the insurance claim was disallowed for an alleged policy breach. The appellant requested compensation from various consumer dispute forums and eventually reached the Supreme Court.

The Apex Court stated that there was no fault of the appellant, and acknowledged a breach of policy but it was not noteworthy enough to terminate it. The 2-judge bench ordered the insurance company to give 75% of the insured amount with 9% annual interest from the entitlement filing date. Moreover, the court directed the insurance company to recompense a compensation sum of Rs. 1 Lakh.

3. Indian Medical Association v. V.P. Shantha and Others [3]

The Indian Medical Association issued a writ petition requesting the Apex Court to pronounce that the Consumer Protection Act does not spread to the medical profession. They contended that the medical professional obeys to distinct Code of Ethics, resulting in medical negligence a matter for medical specialists in their jurisdiction rather than coming under the CPA. The petition raised 2 important questions:

1. Whether a medical practitioner be suitable for giving 'service' under the Consumer Protection Act, 1986?

2. That if medical services are given free of cost, would they still come under the purview of the Act?

The Court observed that the District, the State, and the National Consumer Forums have the power to call medical experts, evaluate evidence, and protect consumer interests. Services provided by doctors and hospitals without due charges will not come within the scope of "service." The Act does not extend to government hospitals which offer free services.

However, if services are given free to the poor, they will fall under the Act. If an insurance company provides the treatment cost for the customer, it also lies under the purview of the Act.

4. Arvind Shah (Dr.) v. Kamlaben Kushwaha [4]

The complainant's son's death was caused by the doctor's incorrect treatment, which led to the State Commission to give a compensation of Rupees 5 lakh for negligence.

On the appeal, the National Commission stated that the existing prescriptions required essential patient information as delegated by medical rules. The Commission, mentioning the case of Samira Kohli v. Dr Prabha Manchanda [5] , believed the absenteeism of dynamic details in the prescription slip was medical negligence. While recognizing the crucialness of such information, the Commission also emphasized that their occurrence specifies the doctor's care and conscientiousness, symbolising evidence against unsupported claims. But, due to an absence of direct evidence connecting the patient's demise to negligence, the National Commission abridged the compensation to 2.5 lakhs, along with applicable interest.

5. Sehgal School of Competition v. Dalbir Singh [6]

The petitioner, looking for admission at a medical coaching centre, was asked to deposit a lump sum fee for a 2-year course within the first 6 months. However, upon ending the course due to insufficient services, the coaching centre declined to refund the existing remaining amount.

The State Tribunal brought into line with the Supreme Court and National Commission, held that educational institutions in no case can collect lump sum fees for the whole course. If such fees are collected, they must be repaid in case of a student's withdrawal due to insufficiencies. The court observed any contract clause which is contrary to this ruling is considered invalid due to unsatisfactory bargaining power and abuse of natural justice principles.

The court also stated that additional compensation for mental torture should be granted, but it couldn't be bestowed because it had not been asked in the petition.

6. Spring Meadows Hospital & Anr v. Harjol Ahluwalia [7]

This appeal to the Supreme Court , involved a hospital shielding negligence by its nurses and a doctor, leading to a minor in an enduring vegetative state because of a brain haemorrhage. The main issue was whether parents,(not including the patients themselves), could pursue compensation for the mental torture caused. The court held that the service defined under the Consumer Protection Act includes paying parents and the child who are being benefited by the services . The National Commission was believed correct in giving compensation to the child for apparatus costs and the expenses which led to the vegetative state.

7. Karnataka Power Transmission Corporation v. Ashok Iron Works Private Limited [8]

The Supreme Court elucidated that a corporate body comes within the definition of 'person' under section 2(1)(m) of the Consumer Protection Act. The Court highlighted that the use of the word ‘includes’ in the Act is explanatory and can be thorough. The understanding depends on the text, the context, and the objective of the Act. It was avowed that juristic persons were never envisioned to be omitted from the Act's scope, and the definition is comprehensive.

8. Sapient Corporation Employees Provident Fund Trust v. HDFC & Ors. [9]

In a complaint, HDFC was accused of illegal debit, the National Commission stated that the payment was executed in harmony with a statutory authority's order and the complainant was duly informed. Identifying the potential for frolicsome complaints due to the absenteeism of court fees, the Commission, thinking the complaint missing in seriousness and adequate grounds, levied a fine of 25,000 Rs. on the complainant by Section 26 of the Act.

9. Nizam Institute of Medical Sciences v. Prasanth S. Dhananka & Ors. [10]

In the instant case, the complainant pursued compensation for medical negligence happening during the entire medical procedure which resulted in partial paralysis. The National Tribunal gave judgment in favour of medical negligence, stating that the patient's consent was gained only for the tumour examination and not its removal.

On further appeal to the Supreme Court, the court avowed the Commission's findings, highlighting that the tumour removal was delayed through recorded debate, and thus, implied consent could not be incidental. The court recognized the necessity to strike a balance between the victim's genuine requirements and the opposition party's irrational claims concerning compensation. While identifying that compassion for the victim should not affect compensation decisions, the court highlighted the duty to provide suitable compensation.

As per the circumstances, the court raised the compensation to 25 lakhs each for ongoing medical expenditures and the petitioner's loss of occupation . Additionally, 10 lakhs were given for the appellant's pain and misery, 7,20,000 for the attendant over 30 years, 14,40,000 for nursing care, and 10,80,000 for the physiotherapy expenses over 30 years, additionally with 6% interest.

For further in-depth notes on various subjects visit Oxbridge Notes .

10. V.N.Shrikhande v. Anita Sena Fernandes [11]

The Petitioner was alleged of medical negligence. It was contended that a gauge mass was left in her abdomen during a gallbladder operation by a medical practitioner. But this petition was filed after 9 years, subsequently, a 2nd operation at a different hospital was done by the petitioner to remove the mass.

The Apex Court recognized the absenteeism of a straightforward formula to regulate the accumulation of cause of action in medical negligence cases . By applying the Discovery Rule, practised in the United States, the court observed that when the result of negligence is evident, the cause of action arises at the very time of negligence. But if the effect is dormant, the cause of action ascends when the patient becomes conscious of the negligence. However, in the instant case, the petitioner had been feeling pain since the operation, which continued for nine years, for which she took painkillers without doctor consultation.

Therefore, the court, considering her profession as a nurse and her skill to have more knowledge than a layman, discarded and set aside the order of the Commission and further dismissed the complaint.

Click Here to Read about the Major Amendments to the Consumer Protection Act of 2019

[1] Civil Appeal No. 3883 of 2007

[2] Revision Petition No. 4419 of 2014

[3] AIR 1996 SC 550

[4] 2009(3) C.P.C.24; III (2009) CPJ121(NC)

[5] [I (2008) CPJ 56 (SC)]

[6] Appeal No.FA-08/1043

[7] Civil Appeal No. 7858 of 1997

[8] Civil Appeal No 1879 of 2003

[9] Consumer Complaint No.123 of 2012

[10] Civil Appeal No. 4119 of 1999

[11] Civil Appeal No. 8983 of 2010

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Top 5 Milestone Consumer Cases in India that Every Consumer Should Know

We buy products and services on a regular basis. From fundamental essentials such as food and clothing to services like banking and education, we rely on companies and organisations to live comfortably in the modern world, and we pay them with our hard-earned money. However, businesses may occasionally fail to provide high-quality services or products. Many people are aware that consumer courts and regulations exist to protect consumers in such situations. Have you ever thought about who goes to such courts and what kinds of cases they hear? You'd be shocked how simple these situations may be. So, here are five fascinating consumer complaint cases for your knowledge:

1. Banks can't always claim "technical difficulties" as an excuse

We have become so reliant on banks. Most of our transactions are now digital, and we rely largely on banks for them. Have you ever had a transaction fail because the server was down or there were other issues?

Ms Dipika Pallikal, a squash champion and Arjuna awardee, was caught off guard when her Axis Bank Debit Card failed in a hotel in Rotterdam, Netherlands. At the moment, she had ten times the bill amount in her account. She suffered a loss of reputation and shame as a result of this. According to the bank, the situation was caused by "Force Majeure" (an act of God/something beyond their control).

Aside from that, the bank had also returned a 1 lakh cheque issued to her by the Indian government, blaming it on a technological error.

Dipika filed a consumer complaint with the Chennai Consumer Court against Axis Bank.

Court Ruling

The court found that Axis Bank had provided inadequate service and ordered the bank to pay a compensation of Rs 5 lakh and expenses of Rs 5000.

The Key Takeaway

Banks are similar to any other type of service provider. We entrust them with our money, and they must deliver on their promises. Customers cannot be made to suffer because of "technical issues" or "force majeure."

2. Insurance claims cannot be denied based on technicalities alone

We pay a fee and receive insurance to protect us against unforeseeable losses. Many people, unfortunately, have had negative encounters with insurance companies. For example, Mr Om Prakash had his truck stolen and claimed insurance for it. The truck was taken on March 23, 2010, the police report was submitted on March 24, 2010, and the insurance claim was filed on March 31, 2010.

The insurance investigator was dispatched, and he validated the validity of the claim. The claim was authorised for a total of Rs 7,85,000.00. However, Mr Om Prakash was never given the money. When he sent a legal notice to the insurance company, they responded that there had been a breach of terms and conditions:

“immediate information to the Insurer about the loss/theft of the vehicle”

Om Prakash was late in applying for insurance since he was detained by the police while attempting to collect his vehicle.

While the consumer courts rejected his claim, the Supreme Court upheld his appeal and ruled in his favour. Insurance firms cannot avoid paying claimants on technical grounds, according to the ruling. Particularly when the claim has good justification.

The court ordered the Respondent firm to pay the Appellant Rs 83,5000 plus interest at the rate of 8% per annum. He was also given a monetary prize of Rs 50,000.

The Key Takeaway 

Many decisions have been taken throughout the years to guarantee that insurance firms are held accountable and do not avoid paying valid claims. If you have a similar problem with your insurance provider, you can file a complaint with the consumer court.

3. Tired of Skin and Hair Care Products Making False Claims? 

Perhaps you are not yet exhausted or are too tired to question. However, a 67-year-old guy from Kerala's far reaches was fed up with the company’s constant lies and how they got away with it.

In 2015, Mr K Chaathu filed a complaint against Indulekha (a beauty product maker) and Mammootty (the company's brand ambassador) for running misleading advertisements. The soap's tagline was 'soundaryam ningale thedi varum,' which means 'beauty will seek you out.' The advertising also stated that anyone who used the soap would become 'fair' and 'beautiful,' but the 67-year-old did not. Amusing isn't it?

Court Ruling 

Indulekha paid him 30,000 in an out-of-court settlement, but Chaathu's original claim was for 50,000. When asked about this, he stated that the lawsuit was never about the money, but rather about how these corporations place commercials with fraudulent claims on a daily basis. And it's not acceptable to allow these individuals to get away with it.

Because advertisements are created to sell items, exaggeration of outcomes is all too prevalent. However, making false promises only for the purpose of selling things is not acceptable. 

4. Is there no MRP on the product?

Mr Baglekar Akash Kumar, a 19-year-old, received a book and Rs 12,500 as a result of the book. How? He ordered the book online, but when it arrived, he discovered that it didn't have an MRP on it. He looked on the internet and discovered that the book was available at various costs in several locations.

So he filed a complaint with the consumer forum against Penguin Books India Pvt. Ltd.

The court ruled that failing to display the MRP on goods without a valid cause is an "unfair trade practice." MRP exists to ensure that a customer does not pay too much for a product. As a result, printing MRP is required for businesses.

Akash was given Rs 10,000 in compensation and 2,500 in costs and the publishers were asked to print the retail price on the book.

Companies are required by law to include MRP on all products. If you notice a product that does not have an MRP, it is a breach of Consumer Protection Laws, and you have the right to sue.

5. Not All Freebies Are Accepted

Imagine buying a Pepsi and discovering a package of gutka floating in it! When Mr Rajesh Rajan of Ahmedabad bought Pepsi from a neighbourhood store, this occurred to him. He promptly complained against the corporation with a legal notice and contacted a Consumer Dispute Redressal Forum.

Furthermore, he alleged that there was a service flaw that could have put his health at risk. He requested Rs. 5 lakh in compensation for the incident.

The consumer forum ruled in Mr Rajesh Rajan's favour, ordering the corporation to pay a total of Rs 4,000 to him (Rs 4,000 for compensation and Rs 8 for the Pepsi he bought).

Rajesh filed a complaint with the State Consumer Dispute Redressal Commission, claiming that the compensation of Rs 4008 was insufficient and that he had spent Rs 500 on sample testing. The State Commission considered Rajesh's argument reasonable and ordered the corporation to pay Rs 20,000 in compensation and Rs 2,000 in fees.

Not all freebies are acceptable! If you uncover something in your food (packaged or not) that isn't supposed to be there or could be damaging to your health, the supplier has failed to offer adequate service. Take them to one of the Consumer Court.

A lot of people fail to file a complaint because they are seldom not aware of the legalities and process involved or about their basic consumer rights. Online Legal India helps them not only file their consumer complaints but also helps them in understanding the process involved in a simple manner. If you want to file in the consumer court then contact Online Legal India today.

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Consumer protection laws in India

This article is written by Pujari Dharani , a B.A.LL.B. student at Pendekanti Law College, affiliated with Osmania University, Hyderabad. The article talks about the need for and history of consumer protection, all consumer rights as enshrined in the Constitution of India and the Consumer Protection Act, 2019, who is a consumer, the Consumer Protection Act, 1986, many consumer protection measures available to consumers, recent developments regarding consumer protection, and landmark judgments, among other things.

This article has been published by Sneha Mahawar .​​ 

Table of Contents

Introduction

“ A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so. ”

• Mahatma Gandhi

Every person in a country is a consumer because every person, whether rich or poor, purchases goods and services on any given day or for that matter at least once in a lifetime. Since ancient times, consumers have been given a higher pedestal in our economy. Protection of their interests and their welfare is regarded as the most important for a government. This led to a situation where the production of any product is made on the basis of the preferences of the consumer. Here comes the term “Consumer Sovereignty” which is a concept where the consumer in a market is treated as “king” or “supreme”. 

However, these days are gone and now the concept of consumer sovereignty has become a myth in the modern marketplace. Rather we can see the producer’s sovereignty to which consumers have become captives. Although consumers, according to the said concept, are referred to as the ‘king of the market’, many adverse events, such as deceptive marketing strategies, defective products, deficiencies in services, etc, affect the consumers immensely. The constantly emerging challenges make many consumers detriment and vulnerable. 

This is where the consumer movement called “consumerism” and the concept of “consumer protection” arose. We can also witness how the United Nations (UN) contributed to the welfare of consumers. As a result, the Government of India has also made substantial efforts to preserve the rights and interests of consumers and meet their needs through various provisions in a number of laws and other regulations. This article discusses every aspect related to consumer protection laws in India and in-depth analysis. 

Need for consumer protection

Every person in India, irrespective of age, financial status, and other factors, from birth to death, consumes or avails one or the other good or service. Consequently, it is essential that every consumer makes an informed decision about the value of his or her money and that his or her interests are completely protected with respect to:

• The purchased goods without defects that are fit for consumption; 
• Services are without any deficiencies.

Many manufacturing units and service providers that sell goods and render services respectively, with the primary goal of increasing their positive returns, frequently engage in such activities that are at the disadvantage of the consumers, such as selling poor-quality or defective products or rendering unsatisfactory services that fall below expectations in one way or the other. Furthermore, many industries which aim to become a monopoly usually indulge in various unfair practices, such as rate cutting, deferred rebate, full line forcing and other malpractices, which makes consumers vulnerable. Later, a need has come to save consumers and, thus, the concept of consumer protection came into the picture to remove the plight of consumers. This concept also became one of the most widely discussed topics worldwide.

Through this concept, every consumer is provided with rights and remedies. However, the ignorance of the consumer regarding their rights and remedies enables the producers to take advantage of them. Manufacturers, distributors, sellers and retailers frequently make huge profits by purposefully and intentionally lowering the quality of the goods and providing false information, amongst other practices. 

Consumers are negatively impacted by these malpractices by producers. Hence, consumers must be informed of their rights, speak out against exploitation, and file complaints to have their complaints heard. As a result, the necessity, as well as the importance of consumer protection, is growing day by day.

History of consumer protection

The concept of consumer protection is not something new in India. It is as old as trade and commerce itself. It has its roots in our country which date back to 3200 B.C. In ancient India, human values and ethical behaviour is at the core of Indian culture and ethos. Also, the welfare of the people is the primary objective of governance of the ancient rulers. Hence, those rulers kept norms and values in their minds while making rules and regulations to make them suitable for the then-Indian society. Even for spiritual purposes, both rulers and traders followed dharma while making policies or rules and doing trade and commerce respectively. For this objective, the ancient kings started controlling not only the social lives but also the economic lives of people by imposing numerous trade restrictions on producers and traders to safeguard the interests of consumers. 

Let’s look into those ancient texts where a few rules are formed with the motive to promote “consumer protection.”

In Manu Smriti

Manu Smriti, which is a compendium of laws that are considered to have supreme authority in the Hindu darshan theology. It discusses even the economic scenario of ancient Indian society, besides social and political ones. Manu Smriti, which contains various concepts like traditional law, legal institutions, etc, also provides a vivid idea of ethical business practices. Manu, who usually emphasizes law and danda i.e., the secular power of punishment, developed a code of behaviour for businessmen by prescribing rules to be followed and punishment to be imposed for those wrongdoers who committed a specific offence against consumers. 

Additionally, it is interesting to note that Manu also specified criteria to evaluate whether a person is competent to enter into a contract. Also, he made such an administrative system that regulated the prices of commodities, identified the traders’ evil strategies, punished offenders and laid down various other measures. Once every six months, all weights and measures had to be inspected and the findings of all these responses were carefully recorded (Source: Journal of Texas Consumer Law ).

In this way, Manu Smriti handled various consumer-related issues of ancient times, surprisingly, many of which are still a problem in modern times.

In Arthashastra

Arthashastra, which literally means ‘science of money’, not only deals with an administrative structure for governing a political economy but also emphasises consumer protection. It explains how the state controls the economic activities of its subjects and was made responsible for preventing offences against consumers during Chandragupta Maurya’s times. 

During this time, healthy trading practices can be seen due to the strict rules and regulations and penalties for infringement of those. A ‘director of trade’ was appointed to monitor market conditions and ensure ethical trade practices. Several punitive steps were adopted in the case of violation of the official rules and regulations of the government for weights and measures. Kautilya said that every four months, the appointed supervisors should have the weights and measurements stamped. The penalty for not having them stamped was also fixed. Additionally, punishments were imposed for carrying out smuggling and adulteration. On the other hand, the interests and rights of the manufacturers and producers are also safeguarded by the Arthashastra (Source: Journal of Texas Consumer Law ).

Furthermore, there is a system of justice that is very much accessible to everyone. Thus, even consumers have assured protection through the said judicial system because Kautilya said it is the king’s duty to ensure justice delivery to each and every subject.

In this way, during the reign of Chandragupta Maurya, ethical business practices were prevalent. In rare cases where abuse of consumers was found, the state was obligated to protect the general public.

During Medieval times

Even during the medieval period, consumer protection remained the top priority for the monarchs. The prices used throughout the Sultanate period were dictated according to the regional circumstances. At that time, the market also had a system to monitor prices. The reign of Alauddin Khiliji exhibited the establishment of rigorous market regulations, In addition to this, shop owners who underweighted their commodities were also penalised.

During the British period

In the modern era, the British system took over India’s long-standing traditional legal system and created a uniform national legal system. A few of the statutes which protect the interests of consumers were enacted during the British regime as follows: 

• The Indian Contract Act, 1872 ; 
• The Sale of Goods Act, 1930 ;
• The Indian Penal Code, 1860 ;
• The Drugs and Cosmetics Act, 1940 ;
• The Usurious Loans Act, 1918 ; and
• The Agriculture Procedure (Grading and Marketing Act), 1937 .

These legislations gave special statutory protection to consumers in our country. The Indian Penal Code, 1860, also provides various provisions to safeguard the interests of consumers against various cases of abuse and malpractice in the market.

The Sale of Goods Act, 1930 (hereinafter referred to as “SGA”), which is a remarkable piece of legislation that has been drafted very carefully, served as India’s sole source of consumer protection for 55 years. It is highly praised as a “Consumer’s Charter.” It offers exceptions to the maxim ‘caveat emptor’ (Let the buyer beware) and ensures that the interests of the consumers are adequately protected. Before the Consumer Protection Act, 1986 was passed to supplement the remedial measures previously offered by the SGA, the SGA served as the only consumer protection law. 

Consumerism

The expansion of industrial capitalism and the industrial revolution in Europe, which were characterised by large-scale economies and growth in production, have been attributed to “consumerism” since the 18th century and beyond. The commercialisation and the entry of creative manufacturers strengthened buying habits and raised consumption, which further led to the accessibility of products in European society. They adopted various business techniques to make products alluring, creating a purchasing and consuming addiction. Indeed, strategies by manufacturers and producers for ensuring that those addictive goods were in demand were more prevalent. This led to a detriment for consumers. Thus, consumerism came into the picture.

Consumerism is an organised and collective movement by both citizens and the state to enhance the power and protect the rights of consumers compared to those of producers. It is a societal force to encourage industries to be more credible and accountable to customers.

The first consumer organisations were born in Denmark in 1947 and in Great Britain in 1955, where the government created the Consumer Council to enable consumers to express themselves on issues reserved for producers and traders. But actual consumerism started in the US, where people like Ralph Nader led the movement for consumer rights.

Consumerism in India

Consumerism has been prevalent in India too for a while. The contributing factors to consumerism in India include inflation, a rise in pricing, deceptive advertising, unsatisfactory product performance, and deficiency in service. Through the law, the government has been attentive and responsive to the needs of consumers. Thus, to have their complaints heard and addressed, consumers must defend their rights.

C. Rajgopalachari in India deserves credit for launching the consumer awareness campaign. One of the results of the campaign is the establishment of the first Consumer Protection Council in 1950 in Madras by Rajaji.

For more details on the historical background of consumer rights and their development in the international scenario, click here .

What are consumer rights

Now, there is no need for consumers to remain as helpless as they did in the past because many laws, including the Constitution of India, protect consumers by empowering them with rights that are known as “consumer rights” because they aim to protect the interests of consumers? These laws also impose obligations on retailers, manufacturers, distributors and service providers while granting consumers a wide range of rights. More significantly, the majority of these rights are backed by punishments and penalties imposed by various statutory enactments, proving that they are more than just social norms. 

History of consumer rights

The concept of consumer rights is a contemporary invention. In terms of quality, price, and availability, producers and traders have often neglected the interests of consumers. The Consumer Movement was born out of knowledge of this problem. The first historic move was made by the United States of America, which pioneered this in the 1920s, and other nations gradually adopted it. 

61 years ago, on 15 March 1962, which is now celebrated as World Consumer Rights Day, the then US President John F. Kennedy presented a speech to the US Congress, when he moved the Consumers’ Bill of Rights, in which he said that, “ If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his health and safety may be threatened and national interest suffers. ” Thereafter he listed four basic consumer rights. Those are as under:

• Right to safety; 
• Right to be informed;
• Right to choose; and 
• Right to be heard.

Thus, the consumers’ interests and national interests are put on the same footing. As a result, a consumer who is conscious, informed, and empowered will be an informed citizen who contributes to total economic growth, welfare, and prosperity.

Since people like Ralph Nader and others did take up different problems in the best interests of consumers in the United States, the consumer movement and consumer empowerment developed quickly there. However, the rights of consumers only took on an international form once the United Nations General Assembly (UNGA) adopted the United Nations Guidelines for Consumer Protection through a resolution on April 9, 1985. This resolution was passed on 16 April 1985 and added four more consumer rights to John F. Kennedy’s four fundamental consumer rights. Those are as follows: 

• Right to the satisfaction of basic needs,
• Right to redress,
• Right to consumer education, and
• Right to a healthy environment.

The resolution encouraged countries to establish, preserve, and strengthen a robust consumer policy and also provide better consumer protection by detailing several procedures and policies centred around seven consumer issues, namely, physical safety and health, quality and standards, basic goods and services, education and information, economic interests and reasonable prices, redressal, and protection.

These ultimately served as the foundation for articulating consumer rights. They offer a solid foundation for the creation of consumer policy on both national and global levels. Although the U.N. Guidelines are not an official international convention or treaty and are not in any way legally binding on member states, they still have a strong moral impact.

Consumer rights as per the Indian Constitution

The Constitution of India is the backbone of the entire legal system of India. This conveys the meaning that every law or legislation enacted in India will be made in conformity with the spirit of the Constitution and, in some way or the other, helps in the fulfillment of the principles and objectives laid down in the preamble of the Indian Constitution. 

To study consumer protection law in the context of the constitution, a constitutional mandate on consumer protection is necessary. Now, a query may arise whether there were any Articles in relation to the concept of consumer protection. The answer to this query is yes. Although it is not explicitly stated anywhere in the Constitution, the Preamble of the Constitution, Fundamental Rights, and Directive Principles of State Policy (DPSP) resonate with the notion of consumer justice.

Let us explore consumer protection jurisprudence within the ambit of the Constitution of India.

The Preamble emphasises preserving and promoting social, economic, and political justice. For a better understanding, if justice was a tree, then consumer justice represents one of its branches. “Consumer justice” is a component of and essential to social and economic justice, both of which should be ensured by the State for its people. The State should aim to ensure that the consumer receives goods of appropriate quality and quantity for what he or she has desired to purchase. The concept of consumer justice also includes providing various steps and measures for consumers from the various cases of abuse, evil practices and exploitation by market players whose occurrence ultimately makes consumer detriment, addressing consumers’ complaints and delivering appropriate remedies.

Any consumer in a country requires legal protection to achieve a significant amount of economic equality in any marketplace and the concept of social justice is a shield to do so because, presently, they are in an inferior bargaining position compared to manufacturers, traders, sellers, and distributors. In this way, a branch of economic justice called consumer justice seeks to create a ‘welfare state’ and an ‘economic democracy’. 

Furthermore, the word ‘socialist’, which was added by the 42nd Amendment , constitutes a form of government where the state has control over essential industries, along with encouraging positive and constructive roles played by private industries, to reduce poverty, income disparity, and to give working people a decent standard of living. This concept of socialist democracy prevents consumers from becoming vulnerable to unfair trade practices of producers.

Article 19 of the Indian Constitution

If we examine the aspect of the implementation of consumer rights, it is majorly dependent on the right to information regarding the quantity, quality, potency, standard, purity, and price of the product. Also, as per John F. Kennedy, the right to be informed is one of the primary rights of every consumer. On the other hand, in India, the freedom of speech and expression protected by Article 19(1)(a) of the Indian Constitution has an integral part i.e., the right to know and the right to receive and impart knowledge. The Supreme Court has also multiple times stated that a citizen has a fundamental right to access and receive information. 

The Supreme Court explicitly acknowledged the freedom to access information about goods and services from print media advertisements in the case of Tata Press Limited v. Mahanagar Telephone-Nigam Limited and Ors. (1995). In this case, the Supreme Court judge, Justice Kuldeep Singh, made the following observations:

“ The public at large has a right to receive the ‘Commercial speech’. Article (19)(1)(a) not only guarantees freedom of speech and expression, it also protects the rights of an individual to listen, read and receive the said speech. So far as the economic needs of a citizen are concerned, their fulfillment has to be guided by the information disseminated through the advertisements. The protection of Article 19(1)(a) is available to the speaker as well as to the recipient of the speech. The recipient of ‘commercial speech’ may be having a much deeper interest in the advertisement than the businessman who is behind the publication. An advertisement giving information regarding a life-saving drug may be of much more importance to the general public than to the advertiser who may be having purely a trade consideration. ”

By the above observation, we can tell how the Supreme Court is affirmative about the importance of access to information about goods or services to a consumer through the way of advertisements and how it is connected to the fundamental right under Article 19. Thus, Article 19 will ensure any consumer receives information regarding any details of goods or services that a consumer purchases.

Article 21 of the Indian Constitution

As we know, Article 21 of the Constitution of India ensures that no person in our country shall be deprived of his life or personal liberty except according to a procedure established by law. ‘Right to be informed’ is not only connected to Article 19 but also to Article 21 which was made broader due to various judicial decisions. One such affirmation was made by the Supreme Court in the case of Reliance Petrochemicals Ltd. v. Proprietors of Indian Express Newspapers, Bombay Pvt. Ltd. (1988) where it was stated that the general public has a right to know so as to contribute to the industrial growth of the economy. It also specified that, according to Article 21 of the Indian Constitution, the right to know is one of a range of constitutionally guaranteed rights to which all citizens are entitled. Furthermore, the Supreme Court, in this case, went on to say that the said right has taken on a new seriousness and depth, imposing higher responsibilities on those who undertake the duty of providing information.

Therefore, with the said Article, consumers have been conferred with a consumer right i.e., the right to know by making it an integral part of Article 21 of the Constitution of India.

Articles 32 and 226 of the Indian Constitution

Article 32 of the Constitution of India provides for the right to enforce fundamental rights by the Supreme Court through the issuance of writs. This article assures every person by giving them an opportunity to approach the Supreme Court of India to preserve and enforce their fundamental rights, especially in cases of their violation. Whereas, according to Article 226 , the High Court may issue writs on any matter pertaining to fundamental rights. 

Since the Supreme Court has frequently weakened the idea of judicial discretion and permitted public-spirited people or groups to enforce the rights of disadvantaged and backward sections of society, Articles 32 and 226 of the Indian Constitution are also vital to consumer protection. Additionally, a consumer has the right to approach the Supreme Court or the High Court whenever his or her ‘right to be informed’, which is an integral part of Articles 19 and 21, is infringed.

Articles 38 and 39 of the Indian Constitution

According to Article 38(1) of the Constitution of India, “the State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic, and political, shall inform all the institutions of the national life.” Even though it is not enforceable in a court, the Article imposes a duty on the State to enhance social justice in the country by removing any inequalities in aspects like status, facilities and opportunities. A consumer who is also a citizen of the country is entitled to social justice by virtue of this Article. 

Moreover, Articles 38 and 39 of the Constitution also deal with “distributive justice.” It should be noted that the idea of distributive justice implies, among other things, the elimination of economic inequalities and injustices that emerge from deals and transactions that are made unequal in society. 

The mentioned articles also stipulate that the state has a duty to shape its policies in a way that secures the equitable ownership and control of the economic assets of citizens to prevent the concentration of wealth and promote the welfare of the general public. As a result, the state has a responsibility to protect consumers from monopolistic and unfair trade activities carried out by large-scale companies and monopolies. 

Furthermore, Article 39(a) states that the citizens, men and women equally, have the right to an adequate means of livelihood. The article requires the state to offer free legal help to ensure that no citizen is denied justice due to financial or other barriers. We can also interpret the phrase “any citizen because of economic or other disability” from the perspective of the consumer. A few consumers are unable to enforce their rights by approaching court due to poverty, ignorance, and a sense of powerlessness. Because of the constitutional mandate given under Article 39, the State should provide legal services free of cost to needy consumers.

In this way, Article 39 through the State provides a right to a consumer to approach the court for enforcement of their rights irrespective of financial incapacity.

Article 47 of the Indian Constitution

Article 47 of the Constitution of India commands the State to enhance public health and raise the standard of living and nutrition of its citizens. Article 47 falls under the Directive Principle of State Policy, whereas Articles 21 and 32 are fundamental rights. Hence, the State is expected to make efforts to supply those goods that are safe and fit for consumption, which further ensures the good health of consumers. Therefore, the State has a duty to effectively monitor the market for contaminated food products and other supplies that endanger public health and safety.

All of the aforementioned are just a few of the constitutional provisions that provide citizens with broad authority as well as consumer power, which further promotes the concept of consumer protection.

Consumer rights as per the Consumer Protection Act, 1986

On the lines of the above-mentioned eight-fold path for consumerism, i.e., the four basic consumer rights given by John F. Kennedy and the other four more rights given by UN Guidelines, the Indian Parliament enacted the Consumer Protection Act (hereinafter referred to as the “CP Act”) on 24 December 1986, which was celebrated as National Consumers Day in India. However, it should be noted that by virtue of Section 107 of the new Consumer Protection Act, 2019, the CP Act, 1986 has been repealed entirely. 

Immediately after the United Nations guidelines for consumers were adopted in April 1985, the Consumer Protection Act was passed in India in 1986. This is the next major consumer protection measure, after the Sales of Goods Act, 1930, which significantly boosts consumer power and ensures the protection of consumer interests. It is regarded as being among the most remarkable pieces of consumer protection legislation in the entire world.

This Act bestows six rights on consumers, which are:

The above consumer rights are enumerated as objects of Consumer Councils under Section 6 of the CP Act, 1986. The same was shifted and inserted under definition clauses, i.e., Section 2(9) of the CP Act, 2019. For the very first time, consumer rights are recognized as legal rights as it was specified in a statutory enactment i.e., the Consumer Protection Act.

Right to Safety

According to Section 2(9)(ii) of the CP Act, 2019, a legal right is given to every consumer to be protected from those goods and services that endanger life and property. Here, it is also pertinent to note that every product and service brought by consumers should not only serve their present requirements but also their long-term interests. 

It should be kept in mind that the right to safety not only ensures the standard and quality of a good at the moment of purchase but also after the purchase of the said good. This conveys that the products sold by sellers should satisfy consumers’ long-term expectations regarding their safety. Therefore, consumers have the right to demand both product quality and the guarantee of the goods and services before making any purchase. And, services are not an exception, even services rendered by service providers should ensure that they would not harm the health of consumers. 

This particular right is provided to every consumer by the State as we can see in many instances in markets where hazardous goods are being sold. Hence, consumers should prefer buying high-quality products with labels like ISI (Indian Standard Institute) or AGMARK (Agriculture Marking). However, a consumer possesses this right to safety even in the absence of a guarantee. 

Thus, this right is crucial because it safeguards the consumers from risks and harm to our bodies, lives, health, and property caused by the negligence or willful misconduct of sellers, buyers, or service providers.

Illustration

You chose to take a bus to reach your destination rather than a cab or an autorickshaw. The driver of that bus, unfortunately, hasn’t bothered to check its mechanical condition, and the worst thing is that an accident occurs because of defective brakes when it is on the road.

Here, the injury to you or another passenger represents a breach of the consumer’s right to safety. As a result, you and any other passenger who sustains injuries are entitled to compensation because of this violation of consumer rights.

Similar violations include using an electric iron that causes electric shock, a doctor performing an operation while negligent, and a bus driver operating a bus in a risky manner.

Right to be informed

According to Section 2(9)(ii) of the CP Act, 2019, every consumer is conferred with a right to be informed concerning all aspects of goods, products, or services, such as quality, quantity, potency, purity, standard, and price, as the case may be. This right is given to consumers to protect them from unfair trade practices. Additionally, this right was made an integral part of Articles 19 and 21 by various judicial pronouncements. 

In addition to this, according to Section 2(47)(vii) of the CP Act, 2019, ‘unfair trade practices’ are defined as when a trader or service provider fails to give a receipt for the products sold or service offered. This provision was included in the new Act since it is the consumer’s right to be informed about the cost of the goods or services they are buying or hiring. The other use is that a valid receipt would also provide the consumer with documentary evidence that he bought the product or used the service from the specific trader or service provider, which he might use in Consumer Commission proceedings.

Furthermore, by using the provisions of the Right to Information Act, 2005 , any consumer has the right to obtain information against any public authority which is dealing with the selling of products or the rendering of services. The information about details of the product or service, as the case may be, can be received through the said Act. It should be noted that willful concealment of pertinent information by a service provider constitutes a ‘deficiency’ in the said service under Section 2(11) of the CP Act, 2019, according to the law.

The Central Information Commission, a body constituted under the Right to Information Act (RTI), 2005, in Nisha Priya Bhatia v. Institute of Human Behaviour and Allied Sciences , held that denial of information to the RTI applicant, who is also a consumer of the hospital (respondent in this case), amounts to the denial of his “right to be informed” of services rendered to him.

Let us imagine two scenarios. In the first scenario, you frequently buy a particular medicine whose purpose is to treat an illness or a disease. However, it could occasionally turn out to be hazardous to specific individuals or by overdosage. In the second scenario, a tablet with the same ingredients may have been produced by various pharmaceuticals under various brand names and priced differently i.e., lesser compared with those brands which are purchased by the consumer.

In the first scenario, you took the medicine even though you were unaware of its negative side effects as it was not specifically warning regarding competent patients or dosage limit. In the second scenario, you are forced to purchase a brand of tablet because you are ‘unaware’ that other brands are available. In both of these scenarios, if you had known a few facts beforehand, you could have avoided suffering from health or financial losses. Sellers generally don’t inform consumers about the availability of product quality or alternatives out of a desire to mint money by selling whatever they have on hand or the product that gives them the highest profit margin. Because of these scenarios happening in a market, the CP Act conferred a consumer right i.e., the ‘right to be informed’ to every consumer.

Thus, before choosing or making a decision, the consumer, by virtue of the right to be informed, has the choice of demanding to acquire all the facts regarding the good or service, so that he or she will be able to act sensibly and responsibly as well as avoid traps made by evil marketing tactics. This right promotes prudent and responsible behaviour on the part of the consumer and serves as a warning against opting for high-pressure sales tactics.

Right to choose

The right to choose, which is provided under Section 2(9)(iii) of the CP Act, 2019, refers to the right to be guaranteed access to a wide range of goods and services that are of good quality and at reasonable prices wherever possible, especially in the case of monopoly kind of market economy. The right to basic and essential goods and services is also included in the ambit of the right to choose. This is because the majority may not receive its fair share if the freedom of choice of the minority is unlimited. 

In an imperfect competition market, where a range of products are offered at competitive prices, this right can be properly and efficiently exercised by the consumer. Additionally, in such a competitive market, a consumer has the privilege to choose the product of his or her choice and to be satisfied with the range of options available in terms of quality and cost of the product or service. In such a scenario, a shopkeeper or a retailer can also not pressurise or compel a consumer to purchase a specific product or brand.

But, in several sectors and locations in India, there are currently no such markets. However, even in those situations where there is diversity, retailers are not providing consumers with the full choice of products because they are concerned about the earnings they may make. The consumer gets the impression that there is either no variety or it is not readily available. Therefore, in order to protect the rights of consumers, the right to choose is given to them.

You went to a shop and bought an expensive product despite knowing that the same product from another brand was cheaper. If you made such a choice because of the non-availability of products from other brands, then it is regarded as a violation of the consumer’s right to choose. You can even approach the court if you suffer significant damage because of such consumption.

Let’s take a second scenario. A consumer is forced to purchase a sim card that has an exorbitant price as there is no other alternative choice. That is, in the case of monopolies where only one company is manufacturing and selling sim cards, a consumer has no access to a variety of brands for purchasing sim cards and, thus, no option but to purchase that particular sim card to avail the telecommunication services.

Right to be heard

The right to be heard is provided under Section 2(9)(iv) of the CP Act, 2019. With the enforcement of this right, the interests of the consumer will be adequately and fairly taken into account in relevant forums. It also involves the right to be represented in a variety of forums that are established to look out for the welfare of consumers by hearing their concerns. Above all, the right to be heard is also one of the principles of natural justice. Every person, including consumers, should be given a chance to present his or her claims and prove the damage he or she suffered before appropriate commissions which are empowered by the said Act.

Both the State and the non-profit organisations are expected to incorporate these essential forums for the enforcement of this particular right. Hence, the government of India established consumer forums at the district, state, and national levels to hear consumer complaints and grievances by virtue of the provisions of the CP Act.

For the purpose of being represented on various committees established by the government and other entities on subjects relevant to consumers, the consumers themselves have begun to form voluntary, non-governmental and non-profit consumer organisations.

A buyer, who is a businessman, ordered food from an online food delivery app. Due to the negligence on the part of both the company, which delivered the said food and the restaurant which was chosen by the consumer by believing the shop’s image in public, the said consumer became ill and was admitted to hospital. Because of his illness, the businessman did not attend his very important meeting with potential clients, which led to the failure of his important project. In this case, we can observe how much damage was suffered by the said businessman due to the consumption of unhygienic food which happened due to the negligence of both companies. Here, the CP Act gives a right i.e., the right to be heard to the aggrieved businessmen before an appropriate commission so that they may be entitled to compensation.

Right to seek redressal

This right, which was given under Section 2(9)(v) of the CP Act, 2019, gives a consumer an opportunity to file a complaint against unfair trade practices or the unscrupulous exploitation of consumers by product sellers or service providers. It also involves the right to a proper resolution of the consumer’s complaints and grievances. Aggrieved consumers who have genuine complaints have the right to lodge a complaint before appropriate courts and seek redress for the loss suffered by him or them. Redressal is the logical step after complaints are heard and a resolution is reached. 

This right also ensures the recovery of the money paid by consumers for buying products or services that later turned out to be defective or deficient. The effective use of this right depends on the existence of legislation and processes for filing complaints. Also, several laws, including the CP Act, allow complaints to be filed in different courts.

Sometimes consumers’ problems may be of little value, but they may have a huge impact on society as a whole. They can also request the aid of consumer advocacy groups to help them resolve their disputes.

Right to Consumer Education

This right, which was provided under Section 2(9)(vi) of the CP Act, 2019, ensures that a consumer has the freedom to develop the knowledge and skills necessary to make wise and informed decisions as a prudent consumer. This right is given due to the ignorance of consumers, especially those who live in rural areas, and their not being fully aware of the consequences of buying or availing of the goods or services, which is the main cause of their victimisation. Thus, they must be aware of their rights and actively exercise the same, and information must be accessible at different levels and in different ways. Only then can successful and effective consumer protection be accomplished.

As a result, it becomes the responsibility of the government to inform consumers of their rights. Their education also includes raising consumer awareness. This will support consumers in safeguarding themselves against false, deceptive, and blatantly misleading advertisements, and other business activities. Also, consumers may advocate for themselves by becoming informed about their rights and problems.

Consumer education also increases vigilance and the capacity to inquire about the cost and quality of goods. In a sense, the right to consumer education is a crucial tool for exercising other consumer rights. Therefore, we must give consumer education the attention it deserves.

Specific issues relating to consumers’ rights

The concept of consumer rights makes it seem like consumers today have a lot of legal protection. But a significant portion of us is still exploited today. Among the causes of ongoing exploitation are:

Lack of awareness

Mainly among rural regions, there is a complete lack of awareness about one’s rights being a consumer and how to employ them. Therefore, it is important to raise consumer awareness among all facets of society, but especially among the illiterate and, even more so, the vulnerable and backward classes. The present situation is such a way that even some educated consumers are unaware of both their legal rights and the availability of consumer dispute resolution forums.

The central government, the states, and non-profit consumer organisations working in both urban and rural areas are doing a lot to raise awareness of this issue. Informed citizens, educators, students, and journalists have a specific purpose to increase these efforts.

Responsibility

Along with ignorance, there is also a lack of responsibility. There are two different kinds of responsibility. One obligation is to uphold our rights, and the other is to fulfill our obligations relating to those rights as a consumer. It is practical to say those laws by themselves have no function if not being aware of the public at large and enforced with responsibility. Therefore, these rights will only exist on paper until we educate ourselves about the laws, let the traders know that we are aware of them, have the necessary power to file complaints against rights violations, and continue to act upon such complaints. This would be a real solution to most of the consumer problems prevailing in India.

Consumers’ obligations as a correlation to their rights

The statement that rights and obligations are two sides of the same coin is a reality. Also, we can talk about the concept of consumer protection, we should not only take consumer rights into account but also should focus on the obligations of consumers. 

Consumers have two different types of obligations. 

Fulfillment of obligations by a consumer for one’s protection

• Consumers’ obligations towards others

The first obligation is the fulfilling of obligations that are necessary for the protection of our rights as consumers. For instance, it is the responsibility of the consumer to only purchase products with the ISI mark, especially where safety is paramount, such as electronic equipment, technical items, helmets, etc., to effectively defend his or her right to safety and a healthy environment. The same principles apply to food, especially spices, oils, ghee, atta, etc. Purchasing packaged foods with an AGMARK certification is the responsibility of the consumer. The four rights protected by AGMARK products were: the right to safety, the right to information, the right to make a choice, and the right to be heard. Even when purchasing packaged goods, consumers are responsible for checking the batch number, manufacturing date, date of expiry, any warnings or instructions given and other information.

Besides this, a consumer cannot rely solely and blindly on the claims of advertisements while deciding to purchase a product. Even if they try, consumers cannot avoid advertisements because these have intertwined themselves into the everyday life of a consumer. But still, consumers should always be on the alert whenever they come across misleading marketing strategies that could tempt them to purchase goods that are not what they want to purchase. 

In addition, each consumer is obligated to request a receipt after purchasing products or services. The receipt serves as evidence of purchase and has the potential to start a lawsuit if the consumer feels defrauded after purchasing the goods. Because it is required for the vendor to include the tax amount on the bill, the customer can also ensure that the government is receiving tax on the goods through the bill. The consumer becomes a responsible citizen of the nation through such an action. In a nutshell, a consumer should be an informed and prudent person all the time and make purchasing decisions wisely. 

Consumers’ obligations towards others

The Second obligation is consumers’ obligations toward others. These could be referred to as our social and ecological obligations. In terms of society and the environment, it means that, as consumers, we should choose wisely what we buy and consume. Concerns with careless consumption include pollution, the depletion of resources and energy, and the growth of hazardous waste. The consumers’ right to a healthy environment is impacted by the purchase of an inferior car that produces excessive smoke which is hazardous for the environment. Overbuying products that are in short supply interferes with others’ rights to availability, fair pricing, etc. Therefore, let’s not lose sight of the fact that our purchase decisions have an impact on others, particularly the environment.

Who is a consumer

Consumers in a country are the greatest economic group that influences and is influenced by practically all economic decisions, both public and private. Consumers account for two-thirds of all economic expenditures. However, they are the only significant economic group that is poorly organised and whose opinions are frequently ignored. That is how the enactment of the CP Act, which object is to serve to protect the interests of the consumers, took place. The whole Act is centred around consumers. Because examining whether a person is a consumer or not is a crucial component of establishing significant remedies under the CP Act, it is of the utmost importance for us to know how ‘consumer’ is defined and who is the consumer under the CP Act.

The word ‘consumer’ is a comprehensive concept. The definition provided under Section 2(7) of the CP Act, 2019, along with the explanation clause, clearly and unambiguously explained the term ‘consumer’. This subsection almost exactly copies the word ‘consumer’ from Section 2(1)(d) of the previous CP Act, 1986. But the only difference is that in the new Act, there is an insertion of an ‘explanation’ clause to avoid vagueness and uncertainty.

Simply put, a consumer is someone who either pays consideration for the purchase of a good or avails of service; the consent of the person who paid for the good or service is crucial to consider when evaluating who is a consumer.

Here, an explanation is provided, stating that anyone using the goods for a ‘commercial purpose’ is not referred to as a ‘consumer’ according to this subsection. Moreover, using the goods for self-employment does not constitute using them for commercial purposes. 

Additionally, the “explanation” clause further explained in this subsection that the phrase ‘buys any products’ or ‘hires or avails any services’ also includes the purchasing of goods or services by way of electronic means, such as teleshopping, direct sales, or multi-level marketing, apart from offline purchases. This tells that purchase of goods or services, irrespective of the fact whether brought via online platforms or physical stores, covers under the ambit of the CP Act, 2019. Even though the judiciary has given the term ‘consumer’ a wider range of meanings, the legislature should still give it a clear definition by stating that even goods bought or services contracted electronically fall under this subsection. This will lessen the burden of interpretation on the judiciary because, in this technological age, a significant portion of consumer cases will come from online transactions.

Illustrations

• A paid Rs. 500 for the purchase of Biryani from the online retailer ‘Yaamazon’ but later discovered that the ordered goods were damaged during transportation. Here, A paid for the service with the intention of consuming it, not for resale or any other commercial purpose. Clearly, A meets the criteria of a ‘consumer’ to lodge a complaint against Yaamazon for receiving defective goods and deficient service.
• When B ordered a watch from ‘Snopdeel’ by transferring money online. She planned to give it to her friend C as a gift and provided C’s address for the delivery of the watch. C received a ‘bracelet’ from Snopdeel instead of a watch. As the action of Snopdeel amounts to a ‘deficiency in service’ in the current case, either B or C may bring a consumer complaint against Snopdeel as B here used the service of Snopdeel by paying the amount, and C became a beneficiary of that service by agreeing to use the watch with A’s approval.
• M paid the required payment and received a purchase invoice for a T-shirt from Z, a clothing store. M’s friend C visits her at her home and wears the T-shirt to an event without her approval. Later, C discovers that M’s T-shirt, which she had bought, is torn from the stitching, and she wishes to complain to Z about this. In this case, C is not a consumer because he did not use M’s T-shirt with M’s consent.

Who is not a consumer

The following people are not considered to be “consumers” according to the CP Act:

• A person who purchases goods for resale or commercial use or purpose:  A buyer is not referred to as a consumer if he or she purchased something with the intention of reselling it or being used for a profit.
• A person who receives goods or services for free: Consideration is an essential element to be fulfilled while purchasing goods or services. The same was clearly stated in the definition itself. Any purchase of either goods or services without consideration is not regarded to be in the context of a consumer-business relationship and hence, such a buyer is not treated as a consumer.
• One who engages in personal services: A person who receives personal assistance from an individual who is not engaged in any business activity is not a consumer either. Getting personal services from family is not a consumer. For instance, if a mother prepares meals for her son, here, the son is not a consumer due to the fact that he does not receive voluntary personal services from his mother without paying any consideration for it.

Case laws 

As previously stated that judiciary interpretation further gave clarity on who is a consumer, let’s look into a few specific case laws that are important to study for a better understanding of the term ‘consumer’, which are as follows:

Purchasing goods for personal use by a business organisation is a consumer

The Supreme Court ruled in the case of Lourdes Society Snehanjali Girls Hostel and Anr. v. M/s H & R Johnson (India) Ltd. and Ors. (2016) that a registered hostel society, which collects fees from the students, is a ‘consumer’ under the CP Act if it discovers defects in the manufacturing of floor tiles that it has bought from the respondent. But even though the hostel takes fees from students and engages in ‘commercial activity’, the three-judge bench noted that “ the purchase of tiles and laying in the same in the rooms of the girl’s hostel run by the appellant i.e., Society is clearly not for any commercial purpose. ”

An NRI taking a shop for a livelihood is a consumer

A Non-Resident Indian (NRI), who rents a store in India with the goal of making a livelihood is considered a ‘consumer’ because his actions fit under the category of ‘self-employment’ and not under the category of ‘commercial purpose’. This is observed in the case of Sunil Kohli v. M/s Purearth Infrastructure Ltd. (2019).

A beneficiary of an insurance policy is a consumer

Recently, in the case of Canara Bank v. M/s United India Insurance Co. Ltd. and Ors. (2020), the main issue is whether the farmer is a consumer especially when the insurance policy is between the insurance company and the cold store. Then, the Supreme Court decided that not just the party to the insurance policy but also any beneficiary of an insurance policy, in this matter, a farmer, falls under the ambit of ’consumer’ in the CP Act. Thus, the ambit of consumer definition is enlarged by including both the insured and beneficiary of the insurance policy.

A potential investor is not a consumer

In the case of Morgan Stanley Mutual Fund v. Kartick Das (1994), the Supreme Court decided that “ till the allotment of shares takes place, the shares do not exist. Therefore, they can never be called goods. ” In this case, the potential investor, i.e., the one who is most likely to invest in the company’s equity, had filed a consumer complaint against the mutual fund company, the appellants, alleging that the issuance of one advertisement for buying of shares constituted ‘unfair trade practices’. As a result, the Court held that they are never considered to be goods and, therefore, the potential investor would not fit into the criteria of a ‘consumer’.

Someone who is simply interested in buying something is not a consumer

The National Consumer Disputes Redressal Commission (hereinafter referred to as “NCDRC”) decided in Shri Rajeshwar @ Rajesh Tyagi v. M/s Audi India and Ors. (2016) that a person’s mere desire to buy any good or use any service from a seller or service provider, as the case may be, does not qualify him as a consumer for the purposes of the CP Act.

A lottery ticket buyer is not a consumer

In Satya Wati Goel (Dr.) (Mrs) v. Director, State Lotteries, Government of Sikkim and Ors. (1994), the Supreme Court determined that even though the complainant had made and sent a payment request to purchase lottery tickets, he shall be eligible as a ‘consumer’ as specified by the Act. Thus, even if there is a failure by the Government of Sikkim, the respondent in the present case, to provide those tickets, the complaint did not receive any remedies because he is not regarded as a consumer by the court.

A landowner who enters into a contract with the builder is a consumer

A landowner who enters into a contract with a builder for the construction of an apartment and for the sharing of the completed area can be considered a ‘consumer’ under the CP Act. The same was affirmed by the Supreme Court in the case of Faqir Chand Gulati v. Uppal Agencies Pvt. Ltd. and Anr. (2008).

Differentiating from the ruling of the Supreme Court in the Faqir Chand Gulati case on the facts, the Andhra Pradesh High Court held in Smt. V. Kamala Rao and Ors. v. A.P. State Consumer Disputes Redressal Commission and Ors. (2010) that the complainants are not ‘consumers’ of the landlords if there is no ‘privity of contract’ between them and the landlords. In this case, the complainants filed the complaint against the landlords after entering into an ‘agreement of sale’ with the builder.

A government employee who does not receive retirement benefits is not a consumer

According to the decision of the Supreme Court in Dr. Jagmittar Sain Bhagat and Ors. v. Dir. Health Services, Haryana and Ors. (2013), a ‘government employee’ who does not receive retirement benefits is not a ‘consumer’ as per the CP Act.

In addition to this, in the case of the Ministry of Water Resources and Ors. v. Shreepat Rao Kamde (2019), a two-judge Supreme Court bench quashed the complaint filed by the respondent, who was a government employee and filed a consumer complaint seeking reimbursement because of the delay in the issuance of his retirement benefits and pension perks, by holding that he, being a ‘government employee’, is not a ‘consumer’ on the same grounds and by applying the ratio as laid out in the Jagmittar Sain Bhagat case.

A beneficiary of goods or services is a consumer

According to the judgment in the case of M/s. Spring Meadows Hospital and Anr. v. Harjol Ahluwalia Through, K.S. Ahluwalia and Anr. (1998), the father of the patient, who died due to the electrocution caused by hospital negligence when electricity leaked into the water cooler, falls under the category of ‘consumer’. This death is due to an ‘unfair trade practice’.

In the case of Lilavati Kirtilal Mehta Medical Trust v. M/s Unique Shanti Developers and Ors. (2019), the Supreme Court stated that the conduct of the trust i.e., appellant, which bought flats for the wellbeing of its employees, cannot be characterised as an act with a ‘commercial purpose’, and as a matter of fact, the ‘trust’ would fall under the definition of the term ‘consumer’ as provided by the Act. The Court further held that because the trust owns the flats for the welfare of its employees, it can be classified under the interpretation of ‘consumer’ as the hirer of the service for the ‘benefit’ of others. The court decided in this way by adhering to the standard established in the Spring Meadows Hospital case.

In a similar case of Chandigarh Housing Board v. Avtar Singh and Ors. (2010), the Supreme Court decided that even though the members of the housing scheme were total strangers to the scheme, they could still file a consumer complaint by being qualified as a ‘consumer’, if they were the beneficiaries of the said housing scheme and were getting benefits from it. 

Thus, due to judicial interpretation in various cases, the definition of consumer became so wide that even the beneficiary of a good or service is considered to be a ‘consumer’ in the eyes of law.

One who buys goods for the sake of others is a consumer

The Supreme Court was asked to decide in Punjab University v. Unit Trust of India and Ors. (2014) whether the university i.e., the appellant in this case, who had invested in a mutual fund scheme of the respondent for the benefit of its employees, could be said to have acted with a ‘commercial purpose’. Then, the Supreme Court affirmed that the investment that was made by the university was for the benefit of its employees, not for benefitting itself in any manner, and thus the university in the current case can be said to have invested in the mutual fund scheme with a ‘commercial purpose’. The Court further asserted that “ the term ‘commercial purpose’ must be interpreted considering the facts and circumstances of each case ” and that “ the word ‘commercial purpose’ would cover an undertaking the object of which is to make a profit out of the undertakings. ”

With this judgment of the Supreme Court, it is now clear that even while someone may be running a company with a commercial purpose, if the goods or services they acquire are not used to further that purpose, they can still be considered consumers.

If there is no privity of contract, the person is not a consumer

In the recent case of Chairman-cum-Managing Director, ONGC Ltd. and Ors. v. Consumer Education Research Society and Ors. (2019), the Supreme Court had to decide whether the delay in payment of the demands of the retired employees by the appellant’s trust could be considered a ‘deficiency in service’ and whether the claimants could be referred to as consumers. 

The Supreme Court determined that because the programme was run by ONGC’s trust and not by ONGC, there was no ‘privity of contract’ between ONGC and the claimants, without going into further detail on those concerns. The Court further stated that “ there is no relationship of consumer and service provider between the claimants and ONGC. ” From this case, it can be inferred that if there is no ‘privity of contract’, the Consumer Commissions are not even required to consider whether a person is a ‘consumer’ or ‘service provider’.

Consumer Protection Act, 1986

The Indian government has enacted several consumer protection regulations to prevent shortages, unfair prices, adulteration, and other similar malpractices that create problems for consumers. Consumer law is a broad concept that includes those laws that are made by Parliament, such as the Monopolies and Restrictive Trade Practices Act, 1969 , the Prevention of Food Adulteration Act, 1954 , and the Essential Commodities Act, 1955 , among many others. 

The passage of the Consumer Protection Act in December 1986 under the leadership of the late Mr. Rajiv Gandhi, the then Prime Minister of India, is a very important achievement in the history of the consumer movement and hence marked a significant turning point in the concept of consumer law in India. 

Need for the enactment of the Act

With consumers becoming more aware of how to safeguard their interests and what the consumer movement was demanding, it was considered that laws protecting consumer rights and providing a more efficient way to resolve their complaints were necessary.

Hence, the government published a draft Consumer Protection Bill and received feedback from a number of consumer advocacy organisations and agencies. After carefully examining consumer protection laws in various countries and consulting with consumers, traders, and industry representatives, the Act was finally passed in 1986 by the Indian Parliament. The Act was amended in 1991 and 1993 to broaden its application and scope and to strengthen the authority of the redressal mechanism.

The objective of the Act

The primary objective of the Act is to enforce better consumer protection in India. The provisions of the Act are compensating in character, unlike existing laws that are punitive or preventative in nature. This signifies that a consumer can seek a replacement for a defective product or a refund of their purchase price. Additionally, the consumer may also be entitled to a refund for any losses incurred due to the use or consumption of defective goods. 

The Act aims to offer a straightforward, quick, and affordable means of resolving the complaints of consumers. The Act protects and safeguards the rights and interests of consumers. In order to enforce these rights, it also provides for the creation of Consumer Councils at the central and state levels.

Application of the Act

The Consumer Protection Act, 1986, is made applicable to all goods and services, with the exception of those goods that are bought with an intention for resale or commercial use and services provided without consideration or under a contract for personal service. Also, if the central government specifically exempted a few goods through a notification, the Act is not applied to those goods.

Furthermore, the Act did not distinguish between consumers of public and private organisations. The strong objections of the public sector organisations to being included in the proposed legislation were overlooked by the late Mr. Rajiv Gandhi. As a result, everyone was covered by the Consumer Protection Act, which was passed to protect consumers of both private and public sector organisations.

Geographically, as per the 2019 Act, it is applicable to the entire country of India, excluding the state of Jammu & Kashmir.

Grievance redressal mechanism as mentioned in CP Act, 1986

The Consumer Protection Act establishes a three-tier quasi-judicial system for resolving complaints at the national, state and district levels. Based on the value of consideration of the disputed good or service, the consumer can file a complaint at the appropriate level for prompt resolution at the district, state, or national levels. 

District Consumer Redressal Form would take those complaints where consideration values up to Rs. 20 lakhs. The State Consumer Dispute Redressal Commission accepts cases involving consideration between Rs. 20 lakhs and Rs. 1 crore, while the National Consumer Dispute Redressal Commission deals with those which are greater than Rs. 1 crore. However, the CP Act, 2019 amended these values. Presently, the pecuniary jurisdiction of commissions, which was revised by a notification given by the Ministry of Consumer Affairs, are as follows:

• District Commissions have pecuniary jurisdiction to hear those complaints where consideration paid for goods or services does not exceed 50 lakh rupees.
• State Commissions have pecuniary jurisdiction to hear those complaints where the value consideration paid for good or service exceeds 50 lakh rupees but does not exceed 2 crore rupees.
• National Commission has pecuniary jurisdiction to hear those complaints where consideration paid for goods or services exceeds 2 crore rupees.

The complaint could be over a damaged refrigerator or mobile phone, a broken phone line or another device, a delay in filing an insurance policy, poor medical care, and so forth. It may be brought against the producer, the selling business, or the individual who offers the goods and services in exchange for payment. 

For more information about the Consumer Protection Act, 1986, click here .

Consumer protection measures in India 

Due to the drastic transformation of consumer markets since the enactment of the old CP Act in 1986, the emergence of global supply chains, the increase in international trading, and the prevalence of e-commerce have led to a new delivery of goods and services. Equally, this made a consumer vulnerable to new kinds of unfair and unethical trade practices. This made it inevitable to amend the Act to address the constantly emerging challenges faced by consumers. This is how the amendment to the old Act and the emergence of the CP Act, 2019, happened.

Numerous measures have been provided under the Consumer Protection Act, 2019 to preserve the interests of consumers and prevent their exploitation by market players. All those consumer protection measures which are envisaged under the new Act are as under:

Repair of defective goods

According to Section 39(1)(a) , the District Commission must direct the seller i.e., the opposite party to repair any flaws in the products that the appropriate laboratory identified as ‘defects’ when it received them for testing. Here, it is important to note that the District Commission can order to repair not only those defects that the complainant had claimed at the time of the complaint, but also can order the seller to repair any other defect that has been identified by the appropriate laboratory.

Replacement of defective goods

According to Section 39(1)(b) of the CP Act, 2019, the District Commission must direct the other party to replace the defective products with new ones that are of similar description and are defect-free. There may be occasions where the flaws in the goods cannot be repaired as required by Section 39(1)(a) of the said Act, hence this provision calls for replacing the defective goods with new ones in order to deal with such conditions efficiently.

According to the provisions of the CP Act, 2019, if the old vehicle is defective ab initio , a new one may be replaced by order of the Consumer Commission. The Consumer Commissions may also order the replacement of a new vehicle or a full refund of the consideration paid if the vehicle still exhibits defects despite numerous replacements of the defective parts and thorough testing by technicians, in addition to ordering compensation for the inconvenience and misery suffered by the complainant. This was laid down by the NCDRC in the case of Mandovi Motors Pvt. Ltd. v. Pravenchandra Shetty (2013).

However, the new vehicle cannot replace a vehicle that has been used many times. In the case of C.N. Anantharam v. M/s Fiat India Ltd. and Ors. (2010), the complainant demanded a replacement of the vehicle or a full refund of the purchase price along with interest. The Supreme Court dismissed the arguments made by the complainant and determined that simply replacing the damaged engine with a new engine would be sufficient. On similar grounds, the NCDRC, in the case of M/s Tata Motors Ltd. v. Sharad and Anr. (2016) ruled that rather than replacing the new vehicle, the old vehicle’s defective parts must be repaired. In this particular case, the vehicle of the complainant had certain defects but had been driven 90,000 kilometres. Hence, it held that it would not be appropriate to replace the new vehicle because it will not be a new one anymore after being used multiple times. As a result, the NCDRC ordered an award of Rs. 80,000 as compensation for the mental agony caused to the complainant due to the malfunction of the vehicle since the day of purchase, but not the replacement of the defective goods.

Removal of deficiency in service

In accordance with Section 39(1)(f), the opposing party may be given a direction by the District Commission to correct any problems with the goods or services in dispute. It is pertinent to note that clause (a) of the Section also specifies the removal of defects in goods; however, there, the other party is required to do so if the appropriate laboratory has identified the defect or defects, whereas here, under clause (f), the District Commission is required to order the removal of those defects in these kinds of goods that do not necessitate analysis or testing by the appropriate laboratory. This not only applies to goods, but also to services that are demonstrated to be deficient.

Refund of the price paid for the defective goods or service

If one looks at the text under the heading “statement of objects and reasons” of the CP Act, in the 4th point, it was stated clearly that the Central Consumer Protection Authority (CCPA) was established to avoid consumer detriment by enforcing recall, refund, and return of products, etc. This was envisaged under Section 2(47)(viii) of the CP Act, 2019. This section specifies the eighth category of unfair trade practices i.e., denial to withdraw defective goods and deficient services and refund of the amount paid by a consumer. It is a new addition to the CP Act, 2019 that was not there in the CP Act, 1986. Additionally, as per Section 18(1)(b) , the Central Authority is obligated to prevent unfair trade practices by ensuring that nobody engages in them.

According to the said section, a trader or service provider is considered to have adopted an ‘unfair trade practice’ if they refuse to replace the defective goods or stop providing the deficient services and refuse to refund the consumer for the money paid for the defective goods or deficient services. The merchant or service provider must repay or refund the money in the manner he specified in the bill or cash memo, or within 30 days if there was no such specification in the bill or cash memo.

For a better understanding, let us take an example. K refuses to replace the poor-quality noodle packets and their supplies, despite requests from consumers. Here, K is accused of using ‘unfair trading practices’. In this instance, even if K agreed to take back the noodles which are not good for consumption, but did not give the consumer their money back, still once again K is said to be using ‘unfair trade practices’.

Apart from the above-mentioned section, Rule 4(10) of Consumer Protection (E-Commerce) Rules, 2020 also prescribes a measure of refund requests for consumers. According to this rule, every e-commerce firm must carry out all reimbursements for consumer refund requests that have been approved in accordance with the rules established by the Reserve Bank of India (RBI) or any other competent authority under any relevant laws, within a reasonable time period, or as otherwise required by those laws.

On the contrary, when the complainant i.e., respondent in the case of M/s Sahara India Commercial Corporation Ltd. v. C. Madhu Babu (2011), reserved a flat with an advance payment of Rs. 28,050 and then cancelled it; he sought a refund of the amount paid. Since a condition of an agreement, which was signed by the complainant, barred the refund of advance payments, the appellant, a construction corporation, refused to issue such a refund. When the case reached the commission, the NCDRC ruled that the appellant was not required to refund the advance payment. According to the NCDRC, “ When there is a written agreement between the parties, it is well settled that the consumer fora have to consider the relief in the light of such agreement and it is not open to them to add or subtract any of the conditions or words thereof while doing so. ” In light of this, consumers should be careful enough while signing an agreement. It is better to consult an expert and ensure that the consumer understands all the terms and conditions of the agreement or contract before signing such a document.

Refund of extra money charged

Charging extra amounts without informing the consumer that the products are being charged prior to the decision taken by the consumer amounts to ‘unfair trade practice’ according to Section 2(47) of the CP Act, 2019. Even if the seller stated that the extra money is being charged at the bottom of the advertisement in very small letters, it still regards as concealment and constitutes an unfair trade practice according to the facts and circumstances of the case. 

In these scenarios where the consumer is being exploited due to the exercise of unfair trade practices by the seller or service provider, the consumer has the right to seek a refund of the extra money charged, which will be granted once the unfair trade practice is proven before an appropriate Consumer Commission.

In the case of M/s Dominos, Jubilant Foodworks Ltd. Through Manager v. Pankaj Chandgothia (2019), the complainant, Pankaj Chandgothia, purchased two regular pizzas through his driver. The other party, Dominos, charged Rs. 13.33 for the carry bag, i.e., packing material.

After looking into the facts and circumstances of the case, the Consumer Commission noted that the delivery of goods entails physically giving them from the buyer to the seller in a condition that allows for delivery, that is, the goods should be in a ‘deliverable state’ while packing them to protect them from the environment. In this way, the seller is responsible for funding or incurring any costs necessary to make the goods deliverable. It is appropriate to mention here that Section 36(5) of the Sale of Items Act, 1930, states unequivocally that, until otherwise agreed, the seller is responsible for paying all costs associated with bringing the goods into a deliverable state and the burden of the costs should not be shifted to the consumer. Therefore, in accordance with this legal requirement, the seller in the present case, i.e., Dominos is responsible for paying all packing and other related costs to prepare the goods for delivery and has no right to charge the consumer for any costs incurred during the packing.

Hence, the Commission delivered the judgment in favour of the complainant by ordering the Dominos to stop the unfair trade practices of charging the consumers an additional fee for the carry bags; to give the complainant a “refund” for the Rs. 12 that was improperly charged for the said paper bag; and to give the consumer Rs. 1500 as restitution for harassment, for the suffering he has endured, and for court costs.

Recall or withdrawal of goods or services that are hazardous to life

According to Section 20(a) of the CP Act, 2019, the Central Authority may issue a directive for the ‘recall’ of goods or the ‘withdrawal’ of services that are dangerous, hazardous, or unsafe if it deems that there is enough proof of an infringement of consumer rights or an unfair trade practices. But in order to comply with the principles of natural justice and the audi alteram partem doctrine, the Central Authority must first give the person a chance to be heard before making any such order. It is also important to highlight here that, unlike in criminal law, the standard of proof required by this provision does not strictly demand ‘proof beyond all reasonable doubts’, but rather the ‘preponderance of probabilities’. 

Section 20(b), which might be referred to as an extension to clause (a), states that the Central Authority may mandate the ‘refund’ of prices to consumers of goods or services, thus recalling Section 20(a). Here too, the principle of audi alteram partem is followed.

Compensation for the loss or injury suffered by the consumer due to negligence of the opposite party

In the case of United India Insurance Co. v. Jahangir Spinners (P) Ltd. (1998), NCDRC held that the Consumer Protection Act, not the insurance contract, imposed liability for losses or damages incurred by consumers as a result of the negligence of a vendor, supplier, etc. That is, the seller or service provider must give compensation to the consumer for the loss or injury suffered by him or her.

According to Section 85(b) of the CP Act, 2019, the product service provider is liable for product liability claims if there was an act of omission, or a deliberate or ‘negligent’ withholding of information that led to injury, loss, or harm to a consumer.

Adequate cost of filing and pursuing the complaint

According to Section 39(1)(m) of the CP Act, 2019, the District Commission may order the payment of reasonable costs to the parties. The costs associated with travel, legal, and other ancillary expenses paid for pursuing the consumer complaint are provided under this provision, even though it has not been specified what kind of costs the District Commission shall order.

Grant of punitive damages

In most contract breach disputes, punitive damages are not granted unless the behaviour was so heinous that punishing the guilty party with punitive and/or exemplary damages was necessary. In the case of M/s Magma Fincorp Ltd. v. Rajesh Kumar Tiwari (2020), while some degree of speculation and/or estimation may be allowed, compensatory compensation must be evaluated taking into consideration relevant elements, such as the claimant’s damage.

Also, the proviso to Section 39(1)(d) of the Consumer Protection Act of 2019 gives the District Commission the authority to award punitive damages in such situations as it thinks appropriate. Besides this, there is a separate chapter named ‘offences and penalties’ which prescribes different punishments for different kinds of offences. The same is given in the following table:

Redressal mechanism as per the Consumer Protection Act, 2019

All the measures stated above are just a few of the many available to a consumer. In addition to the abovementioned, the Consumer Protection Act also specifies the manner in which complaints must be made, the procedure that the Redressal Forums must follow in handling the complaints, and the kind of orders that specify any of the aforesaid remedies.

Different forums for a redressal mechanism

A three-tiered quasi-judicial system, known as consumer courts, has been established at the national, state, and district levels to provide simple, quick, and affordable redressal of consumer disputes under the CP Act. These tribunals are set up to provide free redress for consumer grievances involving any inferior products or services, including any that involve unfair or constructive business practices. The consumer dispute resolution system is made up of the following organisations: 

• The District Consumer Dispute Resolution Commission, also known as the ‘district commission’ or, in short, DCDRC; 
• The State Consumer Dispute Resolution Commission, also known as the ‘state commission’ or, in short, SCDRC; and
• The National Consumer Dispute Resolution Commission, also known as the ‘national commission’, or, in short, NCDRC.

To know more about powers, jurisdiction, composition and other things about consumer commissions at various levels, click here .

How to file a consumer complaint

The complaint can be made without following any formal procedures. If someone feels that a retailer or manufacturer has taken advantage of them and wants to file a complaint with the consumer court, they can write the facts on a piece of plain paper. If his allegation falls within the category that requires a minimal sum of money in the form of a demand draft to be payable, attach the necessary documentation, such as the guarantee or warranty card and cash memo, a notice to the opposing party, and the required fees, along with the complaint, and submit it in the district forum. Also, no court fee is necessary to file a complaint with the District Forum, the State Commission, or the National Commission.

The complainant or his/her agent or any other authorised representative may physically file the complaint. The complaint can be addressed by mail to the appropriate Forum/Commission. It is not required to hire a lawyer. Even the consumer himself or herself or any consumer organisation can represent the matter before a consumer court.

Generally, a complaint should be resolved within 90 days of giving the other party notice. A complaint must be resolved within 150 days if a sample of any goods is needed for testing.

To learn more about the procedure for filing a consumer complaint, click here .

Drawbacks of the Consumer Protection Act, 2019

Frivolous or vexatious complaints.

It should be stressed straight away that the new CP Act, 2019, does not impose a penalty for the rejection of a complaint that the Consumer Commission determines to be frivolous or vexatious. Previously, if the consumer commission dismissed the complaint as frivolous or vexatious, there was a fine of up to Rs. 10,000 under Section 26 of the old CP Act, 1986. But, unfortunately, the new CP Act, 2019 did not have any such provision. This is the biggest drawback of the CP Act, 2019. 

It is a fact that the CP Act, 2019, is extraordinarily drafted, which ensures that the interests of the consumer are safeguarded and preserved from all angles. But a consumer is not a victim all the time because every coin has two sides. A consumer may act as a victim, despite nothing such as an event occurring against his interests, and tries to take advantage of the Act by abusing its provisions, whose very purpose is to protect them. 

The major purpose of the amendment to this Act is to provide a speedy dispute redressal system to an aggrieved consumer. But, on the contrary, if many frivolous and vexatious complaints are being piled up in consumer courts by the fake allegations by consumers, the genuine complaints will be pending in courts without a speedy resolution to the actual aggrieved consumer which is a gross injustice to those. There is also a saying that ‘justice delayed is justice denied’. This conveys that even if a delayed resolution is provided to an aggrieved party, it is not considered justice.

Therefore, it was necessary to include a provision for penalising those consumers who file a frivolous or vexatious complaint, which will serve as a deterrent, detriment, or prejudicial act to genuine complainants. Otherwise, it would lead to the filing of a sizable amount of frivolous complaints, resulting in a docket explosion, which eventually serves as an obstacle to the quick resolution of genuine complaints.

Complex legal process and delay in delivering justice 

India currently has the largest consumer movement, and by virtue of the initiatives of consumer organisations, relevant protective laws and consumer courts have taken place. However, the situation as it stands now is not particularly promising. Unfortunately, because the process is no longer simple, clear, and speedy in practice, consumer courts have turned into exact replicas of other judicial processes. 

The consumer grievance process takes longer and is more complicated than what the law intended. The procedure entails hiring legal professionals, which is optional but still practically encourages the aggrieved party to do so, paying fees if necessary, waiting the required amount of time to file the case and appear in court, and completing other formalities like producing bills and warranty cards, among other things. In a nutshell, the legal procedures provided under laws are more complex in nature, and, hence, many consumers are not showing interest in filing consumer complaints and pursuing legal proceedings, in spite of suffering and exploitation, due to the time-consuming redressal system.

Recent developments around consumer protection

Consumer protection act, 2019.

As you well know, the UN Guidelines for Consumer Protection, which the UN General Assembly unanimously accepted on April 9, 1985, served as the basis for the Consumer Protection Act of India, which was first enacted on December 24, 1986. In 1991, 1993, and 2002, the 1986 Act underwent brief amendments.

The UN General Assembly enhanced the consumer protection guidelines in 1989 and modified them in 2015 with the primary goal of raising awareness of the various ways that member states, corporations, and civil society can advance consumer protection in the context of both public and private goods and services.

Based on the aforementioned, India started the process to integrate best practices from other nations and bring about significant reforms to the Consumer Protection Law in the same year, i.e., 2015. The Parliament, however, was unable to approve it in that year itself.

Later, on July 8, 2019, a totally rewritten version of the Consumer Protection Bill was presented to Parliament. It was passed by the Lok Sabha on 30 July 2019 and by the Rajya Sabha on 6 August 2019. On 9 August 2019, the President of India gave his assent to the Bill, thereby making it the CP Act, 2019. The provisions of the Act, along with the rules and regulations made thereunder, came into force on July 20, 2020, and July 24, 2020, respectively.

For more knowledge about the CP Act, 2019, click here . 

Its impact on the medical profession

Given that healthcare was expressly excluded from the definition of “service” in the Amendment Act, i.e., the CP Act, it is clear that this rule had a significant impact on the medical discipline and the healthcare system. This provision exempts the doctors from responsibility for deficient services, and whether they were acting negligently is a moot point. A close reading of the law reveals that it includes the medical profession and health care services as well when it refers to services of any kind made accessible to potential consumers. The case of Indian Medical Association v. V.P. Shantha and Ors. (1995), settled by the Supreme Court in 1996, likewise required to be evaluated de novo , leaving the legal interpretation and judicial enunciations wide open.

Growing consumer movement  

The Indian situation is marked by a surge in coordinated consumer movement initiatives to promote socially acceptable conduct and norms on the part of corporate organisations in response to growing legislation and judicial activism broadening the scope and relevance of social accountability.

Voluntary consumer organisations

In order to protect consumers’ interests, ‘voluntary consumer organisations’ are growing rapidly. The majority of these organisations work to advance consumer protection and education through a variety of strategies, including the representation of specific consumer issues.

While private individuals can empower themselves by becoming informed of their rights, obligations, and accessible legal recourse for upholding these rights, a lot is accomplished through joint action for strengthening the consumer movement by volunteer consumer organisations, by organising workshops and advocacy initiatives on various consumer issues, as well as by education and power building of potential consumer.

More importantly, they are supporting, advising, and training individual consumers as they present their complaints and disputes before different customer dispute resolution forums. The organisations also work with the public to bring about public interest litigation on significant consumer issues and collaborate with individuals in collective class actions.

By creating suitable codes of conduct and corporate ethics, they are also effectively working as consumer groups with trade and industry organisations, such as chambers of commerce and federations, to ensure that consumers get a decent bargain.

Social responsibility and accountability of corporates

A number of other aspects of the community and industry interface have suddenly come into focus as a result of tragedies like the Chasnala coal disaster and the Bhopal gas tragedy, which left over 2,000 people dead and many more permanently disabled by noxious chemicals. 

This has broadened the scope of the industry’s social responsibility from the consumer to the community and from consumerism to voluntary social action. Citizen initiative and voluntary action on behalf of the entire community are prevalent and growing. The following examples show how the community in India is becoming more and more concerned.

• Baba Amte’s call for a reconsideration of the Narmada Valley Project in light of its economic burden, environmental harm, human misery, and social impacts; 
• The Bombay Natural History Society ‘s (BNHS) opposition to the construction of any project across the Narmada; and 
• Widespread protests against the Kaiga nuclear power plant and the COGENTRIX Project in Karnataka.

Despite the fact that consumption is escalating and becoming more aggressive, many business executives maintain that while they accept Corporate Social Responsibility (CSR), it is the job of the government to

• Offer social security and other services, allowing the corporate sector to focus on production; and
• If the government requires firms to fulfil social commitments, these requirements should be set forth in law rather than being left up to business and industry to determine.

Furthermore, the Consumer Education and Research Center (CERC) was founded as a milestone in encouraging volunteer efforts to enforce socially responsible business practices. Also, organisations like Citizens Against Pollution (CAP) and the Centre for Environment Concerns (CEC) are active in the majority of Indian cities and industrial hubs. These organisations defend the rights of uninformed consumers who suffer as a result of administrators’ carelessness and heavy-handedness in supporting activities like major infrastructure projects.

Growing demand for international consumer law

In an increasingly globalised world with a deeply internationalised market, it is necessary that the law, including consumer law, expand internationally and beyond the bounds of national jurisdictions.

A growing amount of work has gone into internationalising consumer law. Dieselgate and Apple are only a couple of the recent, significant incidents involving international consumer law that simultaneously affected consumers in numerous jurisdictions and showed how important and necessary it is to have global consumer law. These scandals have also shown the growing relevance of international consumer law.

International Consumer Protection and Enforcement Network (ICPEN) 

The International Consumer Protection and Enforcement Network (hereinafter referred to as “ICPEN”) is now the only international organisation devoted exclusively to the global factors of consumer law implementation among the existing systems and networks. It represents an actual worldwide network of agencies in charge of upholding consumer law globally. 

ICPEN is a great illustration of a non-formal strategy for creating a forum for a multi-stakeholder debate as well as a road for cooperation among consumer protection authorities.  Over 60 nations and international organisations with a stake in consumer law are represented in the network of consumer law authorities known as ICPEN. The number of nations using this network is expanding. The United Nations Conference for Trade and Development (UNCTAD) also participates actively in ICPEN as an observer organisation.

Some of the largest international consumer markets, including the USA, Australia, Japan, the UK, and Canada, are represented by ICPEN. Despite its growing size, the network still only includes less than one-third of all nations, raising serious doubts about its truly global nature. To make ICPEN a legitimate worldwide enforcement network, more work is required.

Rise of e-commerce and its legal implications in India

E-commerce is a term used to describe a system that facilitates sales of products and services via an electronic system. E-commerce enhances efficiency and expands options through competitiveness and a higher production process structure. Consumer protection, unfortunately, is a worldwide concern in e-commerce.

Hence, to stop unfair business practices and safeguard consumers’ interests and rights in e-commerce, the Consumer Protection (E-Commerce) Rules, 2020 were issued under the Consumer Protection Act, 2019 on July 23, 2020.

The new regulations reaffirm the online consumer grievance redress mechanism since protecting consumer rights is crucial to the development of e-commerce. This increases online consumers’ capacity to establish confidence and ensures their safety and security. However, the expansion of e-commerce in India will be fostered by judicial involvement and instructions that ensure the protection and safety of online consumers.

Shift to ‘caveat venditor’ from ‘caveat emptor’

Initially, in any economy, the rule of caveat emptor i.e, let the buyer beware is prevalent. However, due to the advent of consumerism, consumer protection and related laws at the international and national levels, there is a paradigm shift from the rule of ‘caveat emptor’ to the rule of ‘caveat venditor,’ i.e., let the seller beware. 

This shift is ascribed to an increasingly consumer-oriented economy where business transactions are promoted. It is believed that such a move will help strike the ideal balance between the rights and obligations of buyers and sellers.

To study more about the doctrine of caveat emptor and caveat venditor and its shift, click here .

Landmark and recent cases which have shaped consumer law in India

Laxmi engineering works v. p.s.g. industrial institute (1995).

The case of Laxmi Engineering Works v. P.S.G. Industrial Institute (1995) is a landmark judgement that made the understanding of the term ‘consumer’ easier. The Supreme Court not only interpreted the word ‘consumer’ but also provided appropriate definitions of other words like ‘commercial purpose’, ‘livelihood’ and ‘self-employment’ whose interpretation is very essential to learn the exact boundaries of the term ‘consumer’.

Facts of the case

The appellant, Laxmi Engineering Works, is a privately owned business that was incorporated as part of the Employment Promotion Program. It is listed as a small-scale industry with the Maharashtra Directorate of Industries. It received financial support from many sources, one of them being the Maharashtra State Finance Corporation , in the form of a term loan of Rs. 22.10 lakhs. 

One day, Laxmi Engineering Works ordered a PSG 450 CNC Universal Turing Central Machine from the respondent, P.S.G. Industrial Institute, and requested to supply it on May 28, 1990. The appellant alleged in court that the respondent delivered the said machine six months after the agreed period, and that, too, was a defective one. Several flaws were discovered quickly after it was assembled and put into use, and the appellant informed the respondent of the same.

Although the respondent sent some people to fix the defects after prolonged contact between the parties, the machine was still unable to be restored to working order. The appellant claims that he was experiencing significant financial loss due to the malfunctioning of the machine. As a consequence, the appellant filed a consumer complaint with the Maharashtra Consumer Disputes Redressal Commission (MCDRC), demanding an amount of Rs. 4,00,000/- from the respondent.

Arguments before MCDRC

Before the State Commission, the respondent gave testimony and rejected the allegations of the appellant. The respondent also argued that the appellant is not a consumer as defined in Section 2(1)(d) of the CP Act, 1986 because he bought the machine for commercial use.

Judgments by MCDRC

The commission partially granted the demand of the appellant, ordering the respondent to pay the appellant a sum of Rs. 2.48 lakhs within 30 days; otherwise, the money would charge interest at an annual rate of 18%. Thus, the judgment was in favour of the appellant.

Then, the respondent was approached by the National Consumer Disputes Redressal  Commission (NCDRC) through an appeal. The National Commission accepted the appeal brought forth by the respondent on the sole ground that the appellant should not be considered a ‘consumer’ as defined by the Act.

Observations and judgment by NCDRC

The National Commission observed, “ From the facts appearing on record it is manifest that the complainant is carrying on the business of manufacture of machine parts on a large scale for the purpose of earning profit and significantly one single item of machinery in respect of which the complaint petition was filed by him before the State Commission itself is of the value of Rs. 21 lakhs and odd. In the circumstances, we fail to see how the conclusion can be escaped that the machinery, in question which is alleged to be defective was purchased for a commercial purpose. ” 

As a result, the National Commission declared that the appellant does not qualify to be considered a ‘consumer’, and his complaint was not admissible before the State Commission. Therefore, the decision of the State Commission was reversed and the petition for a complaint was rejected. The National Commission pointed out that the appellant is still entitled to seek his remedy through a regular civil action despite their judgment.

Later, the matter went to the Supreme Court of India due to the appeal filed by the appellant who challenged the decision of the National Commission. 

Issues of the case

• Whether the appellant in the present case is a consumer as defined in Section 2(1)(d) of the CP Act, 1986 or not?
• What do the ‘commercial purpose’ and ‘self-employment’, which are mentioned under the explanation clause of the subsection in the Act, mean?

Arguments before the Supreme Court

The appellant contends that the aforementioned machine cannot be characterised as having a ‘commercial purpose’ and that he cannot unquestionably be said to be engaged in the ‘on a large scale’ manufacture of machine parts for the purpose of making a profit. The appellant operates a modest business and bought the aforementioned machine to support himself. In addition to this, the appellant also submitted that his business is a privately held company owned by Shri Y.G. Joshi, an engineering diploma holder who wanted to establish a small business with funding from public financial institutions to support himself. The appellant stated that he had an established contract for the supply of specific parts needed for the company to manufacture cars and emphasised that he has no other business apart from this. 

On the contrary, the respondent argued that the reason for which the appellant bought the aforementioned machine is clearly a commercial one, as held consistently over several years by the National Commission. The respondent further argued that there was a connection between the large-scale activity set out to make profits and the machine that was bought.

Observations by the Supreme Court

The Division Bench held that the appellant is not a ‘consumer’ and went on to provide a thorough understanding of the term ‘consumer’, especially in light of the terms ‘self-employment’ and ‘commercial purpose’. The judge noted that:

“ The expression ‘resale’ is clear enough. Controversy has, however, arisen with respect to meaning of the expression ‘commercial purpose’. It is also not defined in the Act. In the absence of a definition, we have to go by its ordinary meaning. ‘Commercial’ denotes ‘pertaining to commerce’ (Chamber’s Twentieth Century Dictionary); it means ‘connected with, or engaged in commerce; mercantile; having profit as the main aim’ (Collins English Dictionary) whereas the word ‘commerce’ means ‘financial transactions especially buying and selling of merchandise, on a large scale’ (Concise Oxford Dictionary). ”

Here, the Supreme Court underlined the interpretation given by the National Commission that those buyers who purchase goods intending to use them for carrying out any activity on a large scale to obtain profit are not ‘consumers’. After highlighting this, the Supreme Court further illustrated with an example, “ a person who buys a typewriter or a car and uses them for his personal use is certainly a consumer but a person who buys a typewriter or a car for typing others’ work for consideration or for plying the car as a taxi can be said to be using the typewriter/car for a commercial purpose. The explanation however clarifies that in certain situations, purchase of goods for ‘commercial purpose’ would not yet take the purchaser out of the definition of expression ‘consumer’. ”

However, the Supreme Court further explained by stating that “ If the commercial use is by the purchaser himself for the purpose of earning his livelihood by means of self-employment, such purchaser of goods is yet a ‘consumer’. ” Also, if we look at the explanation clause, the definition of ‘commercial purpose’ is reduced to a factual issue that must be resolved in the context of each case. While deciding a case, it is important to consider the purpose of why the products were purchased, not the value of the products themselves. 

Furthermore, the Supreme Court also noted that “ The several words employed in the explanation, viz., ‘uses them by himself’, ‘exclusively for the purpose of earning his livelihood’ and ‘by means of self-employment’ make the intention of Parliament abundantly clear, that the goods bought must be used by the buyer himself, by employing himself for earning his livelihood. ”  

For example, a consumer is someone who buys an auto-rickshaw to drive personally to make a living, even if he takes help from one or two persons for operating the vehicle. Also, it should not be bought by anyone other than the person who is using the goods. By distinguishing commercial purpose from commercial activity, the meaning of the phrase ‘for the purpose of earning his livelihood’ is clarified and understood.

Judgment by the Supreme Court

The appeal was rejected without costs. Regarding the type and features of the equipment and supplies, it was determined that the appellant did not buy them for his own use or to support himself through self-employment, as previously described. As a result, this decision was consistent with earlier judicial decisions and the definition of ‘commercial purpose’ provided by the amending Act. The most important factor in determining whether a person qualifies as a consumer is whether the reason they purchased the goods was ‘commercial’ in accordance with the definition of ‘consumer’ in Section 2(d) of the Act.

The Court further held that the orders of the District Commission, the State Commission, and the National Commission are final, as declared in Section 24 , and cannot be questioned in a civil court. The issues decided by the said authorities under the Act cannot be re-agitated or questioned in a civil court.

Indian Medical Association v. VP Shantha and Ors. (1995)

In the landmark case of Indian Medical Association v. VP Shantha and Ors. (1995), the Supreme Court of India included ‘medical negligence’ and ‘medical services’ under the purview of ‘deficiency’ of service and ‘service’ respectively, thus, making the definitions of deficiency and service wide and exhaustive.

Multiple complaints were brought to the consumer courts under the Consumer Protection Act of 1986, demanding compensatory damages due to the rise in medical negligence cases. There was uncertainty on whether medical facilities, hospitals, and doctors came under the definition of “service” in Section 2(1)(o) of the CP Act, 1986, classifying patients as “consumers” with the ability to file a claim for damages in consumer courts. These complaints were taken into account in a number of decisions made by several high courts and national consumer courts, which provided various and contradictory views and decisions. 

Due to no certain and unambiguous answer to the question and issues raised, numerous appeals, writ petitions and Special Leave Petitions challenging the contradictory verdicts of subordinate courts in front of the Supreme Court to clarify and give a certain interpretation for the questions raised. The Supreme Court had to handle a significant influx of SLPs. Therefore, a writ was filed in this PIL, in accordance with Article 32 of the Indian Constitution, asking the Supreme Court to determine the scope and jurisdiction of the Consumer Protection Act, 1986.

• Whether the service provided at a hospital or nursing home by a medical practitioner qualifies as “service” under Section 2(1)(o) of the Act. 
• Whether or not hospitals and doctors are covered by the Consumer Protection Act of 1986.
• Under what conditions a medical professional can be considered to be performing “service” under Section 2(1)(o) of the Consumer Protection Act, 1986.  

Respondent, the Indian Medical Association, argued that under Section 2(1)(o) of the Act, only vocational services are covered, not professional services and that the law makes a distinction between the two. Therefore, while being a professional service, the medical profession shouldn’t be protected by the Act.

The respondent asserted that certain criteria can be used to classify a service as deficient under Section 2(1)(g) of the Act. These rigorous and constrained principles have less use in the field of medicine.

The respondent further contended that medical services are a type of contract for personal service, that falls within the category of exclusionary services since they are not covered under Section(1)(o) of the Act but are not a contract for service. And, hence, medical services are not considered services and are, therefore, not covered by the Act.

Observations

The Hon’ble Bench dismissed the claim of the respondent that medical services, being a professional one, are not included under the said section, stating that the Bolam test is sufficient to determine whether a medical professional was negligent in treating a patient.

Among other things, when it was asserted on part of the medical professionals that “the relationship between a patient and the doctor is of confidence and trust and, thus, it is in the form of a contract of personal service,” the Supreme Court denied the assertions by noting that “ …since there is no relationship of master and servant between the doctor and the patient, the contract between the medical practitioner and his patient cannot be treated as a contract of personal service but is a contract for services and the service rendered by the medical practitioner to his patient under a contract is not covered by the exclusionary part of the definition of ‘service’ contained in Section 2(1)(o) of the Act ” while comparing “contract for personal service” and “contract of personal service.”

By citing the case, i.e., Dharangdhara Chemical Works Ltd. v. State of Saurashtra (1956), which makes a distinction between a contract for services and a contract for services, the argument that medical services should not be considered services was refuted. Since there is no master-servant connection between the doctor and the patient, a simple fiduciary relationship cannot result in a contract of service. 

The Supreme Court added, “ The expression ‘contract of personal service’ in Section 2(1)(o) of the Act cannot be confined to contracts for employment of domestic servants only and the said expression would include the employment of a medical officer for the purpose of rendering medical service to the employer. ” 

The Court also ruled that “ Service rendered at a Government hospital/health centre/dispensary where services are rendered on payment of charges and also rendered free of charge to other persons availing such services would fall within the ambit of the expression ‘service’ as defined in Section 2(1)(o) of the Act irrespective of the fact that the service is rendered free of charge to persons who do not pay for such service. Free service would also be ‘service’ and the recipient a ‘consumer’ under the Act. “

Furthermore, the respondent also argued that since “service” does not include any reference to medical services, those services are not covered by the Act. This argument was rejected because the definition of service has three elements, namely the main part, the inclusionary part, and the exclusionary part. Although the definition’s inclusionary element has a larger scope and includes medical services, the primary section of the definition does not.

The Court concluded that medical services will be regarded as services in line with Section 2(1)(o) of the Act, and from this point on, the potential consumer shall be referred to as the consumer of medical services 

With this landmark judgment, in 1995, the Consumer Protection Act of 1986 was expanded to include medical services, which helped consumers who were the victims of medical malpractice receive more expeditious and affordable justice.

The definition of “service” as stated in Section 2(1)(o) of the Act would apply to services provided at a non-government hospital or nursing home where fees are required to be paid by those who can afford to pay and services are provided free of charge to those who cannot afford to pay, even though the services are provided to those who cannot afford to pay for such services. Under the Act, a free service would likewise qualify as a “service,” and the recipient as a “consumer.”

To know more about medical negligence under the ambit of the Consumer Protection Act, click here .

Hindustan Coca-Cola Beverages Pvt. Ltd. v. Purushottam Gaur and Ors. (2014)

In the famous case of Hindustan Coca-Cola Beverages Pvt. Ltd. v. Purushottam Gaur and Ors. (2014), a significant ruling was made regarding compensation to the consumer when a drink contains insects. 

The complainant went to the District Commission and claimed that the Coca-Cola company was in charge of the sale of poor-quality drinks. For a deficiency in service, the complainant sought significant damages from the company.

In defence of itself, the company said that there was no proof that it had produced the alleged bottle. They said that the product is fake and that their packaging facility has the most recent technology and high standards of hygiene, so there is no chance that an insect could get inside the bottle. The District Commission rejected the case, but the State Commission upheld the appeal made by the complainant and awarded him Rs. 10,000 while charging the company Rs. 3,000 in expenses.

The inspection of the bottle reveals one huge insect (about 10 mm in size) lying on the surface of the container; two small insects and various insect body parts are floating in the fluid, according to a laboratory report that was also presented to NCDRC in this case. 

The laboratory also noted in the report that several characteristics of the bottle in issue were distinct from those of a “Fanta” bottle bought from the market, but that in order to be certain, the laboratory would require bottle samples from the batch code displayed on the bottle.

Did the company act negligently when creating both the bottle and the “Fanta” soft drinks?

After carefully examining all the available evidence, NCDRC determined that the company failed to make any attempt to assist the laboratory staff and that no inquiries into the source of that bottle were made by the company. This bottle looks to belong to the Company, at least in the beginning.

The Court also stated that the evidence was in the favour of the coca-cola company, hence the revision petition was denied. The consumer who discovered insects in a “Fanta” bottle received Rs. 10,000 in compensation from the NCDRC, which upheld the decision of the State Commission.

Spicejet Limited. v. Ranju Aery (2017)

The notable judgment in the case of Spicejet Limited. v. Ranju Aery (2017) answered a few crucial questions, like whether an online consumer can file a consumer complaint at a court that has jurisdiction over the area where part of the cause of action took place.

The complainant, Ranju Aery, purchased flight tickets from the opposite party, M/s. Spicejet Ltd., through online over the website “Yatra.com” for travelling with her family from Kolkata to New Delhi on June 30, 2015. When the complainant and his family arrived at the airport situated in Kolkata at 1:30 p.m. to board the flight from Kolkata to New Delhi, which was supposed to depart at 20.40 hours, they were astonished to learn that the trip had been cancelled.

The complainant and her family were not given any other options by Spicejet Airlines for their flight to New Delhi. As a result, the complainant was forced to purchase tickets for a different flight from Kolkata to Mumbai, with another flight from Mumbai to New Delhi departing at 20.40 hours. The complainant paid Rs. 80,885 for the stated trip.  

Hence, the complainant lodged the relevant consumer complaint. The complainant claimed that the other party had not provided a backup flight nor issued a price refund for the cancelled flight. They also requested orders from the court to the opposite party to repay the value of the cancelled flight ticket, which was Rs. 20,000, plus interest at a rate of 12% per year. Additionally, they requested that the OPs give them guidelines on how to pay for the extra Rs. 80,885 that they had already paid for a different flight. In addition, the complainant asked for Rs. 22,000 as court costs and Rs. 1.5 lakhs as damages for mental agony.

Upon hearing the matter, the District Commission issued an ex-parte order in favour of the complainant and directed Spicejet Airlines to compensate the complainant Rs. 80,885/- after subtracting the expense of the flight tickets of the cancelled flight from Kolkata to New Delhi, with addition to interest at a rate of 9% per year from the cancellation date of flight until realisation. Additionally, they ordered Spicejet Airlines to pay Rs. 1.25 lakhs in damages for harassment and Rs. 10,000 for legal expenses. 

Later, the airline filed an appeal to the State Commission against the ruling given by the District Commission, which resulted in upholding the previous decision. Hence, the opposite party approached NCDRC in a way of appeal.

• Whether the petitioners were properly served in proceedings before the District Forum and whether the ex-parte order imposed against them is appropriate?
• Can a consumer who purchased through an online platform be allowed to initiate an action anywhere?

The petitioner, Spicejet Airlines, argued that Gurugram has no jurisdiction to decide the present case, by citing Section 11 of the Consumer Protection Act, 1986, which stipulates that a consumer may file a complaint within the local jurisdiction of the place of residence, place of business of the defendant, or the area where the cause of action arises.

The petitioner further put forward the argument that the District Commission had made the decision without following the principles of natural justice, especially audi alteram partem because they had not been properly represented in the proceedings before the Commission. The decision of the District Forum, which was fully upheld by the State Commission, was consequently unlawful. 

Moreover, the petitioner is willing to refund the price of the tickets for the said cancelled flight if that hasn’t already been done. Additionally, they sought to revoke the compensation orders of Rs. 1.25 lakhs.

After examining the evidence submitted, the NCDRC stated that it is apparent that a notification was issued to the petitioner by registered mail on October 21, 2015, however, it wasn’t returned until November 20, 2015, i.e., 30 days had passed after the notice was sent. The District Forum assumed that airlines had received notification in accordance with Rule 10(2) of the Consumer Protection Regulations, 2005. Furthermore, from Section 28A(3) of the Consumer Protection Act, 1986, NCDRC asserted that the District Forum correctly assumed that the airlines had not received adequate service because the registered mail notification sent to them had not been forwarded within the allotted 30 days. As a result, the District Forum was correct to move the ex-parte against the opposite party, i.e., Spicejet Airlines. Accordingly, there is no way to oppose the decision of the district forum on this basis.

Regarding the question of territorial jurisdiction, NCDRC observed that the State Commission has persuasively argued in the challenged order that a part of the cause of action originated in Chandigarh because the complainant’s acceptance of the contract was transmitted to him via the internet at his place of business or residence when he purchased the travel tickets online. We have no grounds to disagree with the finding of the State Commission that the Chandigarh State Commission had jurisdiction over the complaint on a territorial basis.

Regarding the justification of technical and operational flaws used by the opposite party, the NCDRC observed:

“ From the facts and circumstances of the case, it is abundantly clear that the flight, which the complainants were supposed to board, got cancelled, although all other flights from Kolkata airport were operational.  The OP Airlines have not explained anywhere whether there were any genuine reasons for the cancellation of the flight.  Merely taking the plea that there were technical and operational defects, does not cut much ice in view of the fact that the other flights were operating normally and hence, the general conditions at the airport or the weather conditions etc. were conducive to the operation of the flights.  The OP Airlines have also not explained anywhere whether they took any concrete steps to take care of the passengers of their cancelled flight and to make arrangements for their travel by some alternative method.  The deficiency in service on the part of the OP Airlines is, therefore, writ large on the face of it, and they are liable to compensate the complainant on this score. ”

The NCDRC rejected the arguments of the airline company and found that the airline had provided deficient service by cancelling the flight without providing a valid justification. Also, NCDRC observed that the entire family of the complainant was subjected to harassment as a result of the cancellation of the flight.

On appeal to the Supreme Court, the Supreme Court decided that consumers choosing to buy goods through online platforms may lodge a consumer complaint for deficiency of services before any consumer court.

Centre and State rules regulating selling and buying activities concerning consumer goods are known as consumer protection laws. Such laws prevent unfair trade practices which harm consumers, either physically or financially. These laws are intended to put common people i.e., consumers who buy goods or hire services on an equal footing with businesses or other people who conduct business frequently. These laws, specifically the Consumer Protection Act in India, are preserving and protecting consumer rights to a much extent. However, consumers in India are still facing problems. Also, even after the amendment, the drawbacks and loopholes persist. Hence, the government should recognize this quickly and take steps accordingly. 

Frequently Asked Questions

What are consumer authorities how does it differ from consumer commissions.

A Central Consumer Protection Authority (CCPA) will be established by the central government to advance, defend, and uphold consumer rights. It will control issues involving consumer rights violations, unfair business practices, and misleading advertising. A Director-General will oversee the investigation branch of the CCPA, which may look into or inquire into such offences.

Whereas the Consumer Disputes Redressal Commissions (CDRC) will be established at three levels, i.e., district, state, and central. Consumers have the right to complain to any CDRC about the following: 

• Unfair or restrictive trade practices; 
• Defective goods or deficiency in services; 
• Overcharging or misleading pricing; and 
• The sale of products or services that could endanger life and safety. 

Only the state and national appeals from a District CDRC will be heard in complaints against unfair contracts, according to the State CDRC. The National CDRC will consider appeals from the State CDRC. The Supreme Court will hear the final appeal.

What are the flaws in the CP Act, 1986 and why is there a need for amendment?

There are many flaws in the Consumer Protection Act, 1986. A few of them are as under:

• Services rendered free of costs, such as statutory civil services by government hospitals, sanitation, water supply, etc, are not covered by the old Act.
• Strict liability and punishments are not imposed on those vendors who sell hazardous goods.
• The Act does not give the Consumer Redressal Fora the authority to issue temporary injunctions. Also, the Consumer Redressal Forums are not permitted by the Act to take on suo moto cases.
• If an equivalent remedy is available under another legislation, it is against the rules, according to the Act, for a consumer to file a complaint with the Consumer Fora.
• The Consumer Protection Act of 1986 expressly states that its requirements are supplementary to and do not supersede any other currently in force laws.
• When an organisation is proven to have violated the law, the chief executive, manager, or director is not held liable under the Act.
• It has been noted that the judicial and non-judicial members of the consumer courts are in conflict. This is becoming more serious every day and threatens to have an impact on how these quasi-judicial entities operate.
• Most importantly, absence of provisions addressing teleshopping, online shopping, product liability, unfair contracts, and alternative dispute resolution mechanisms.

The above-stated fallacies are just a few of them, the old Act is not at all suitable to the modern consumer markets which have undergone a paradigm shift. Because of the emergence of global supply chains, the increase in international trade and the prevalence of e-commerce has provided new options to consumers. In contrast, the changes also led to the origin of new forms of unfair trade practices. Hence, the need for amendment was felt and made possible in 2019.

How is the 2019 Act different from the 1986 Act?

Through its foundations in accountability and transparency, the new Consumer Protection Act, 2019 has been lauded as a significant development for consumer empowerment.

In addition to enhancing efforts to safeguard consumers by this Act, it has made it possible for customers to make choices logically and intelligently before using any services or making any purchases. Furthermore, all the above-stated fallacies of the CP Act, 1986 are fixed in the amendment Act.

Consumers would be protected from exploitative practices by strict laws and the imposition of penalties and punishments by virtue of the new Act. It was created to offer significant benefits to consumers and to improve the entire system for handling consumer complaints.

Additionally, on the occasion of World Consumer Rights Day 2022, the Department of Consumer Affairs presented the concept of “eDaakhil,” where consumers may quickly submit their complaints.

What is a Product Liability Action?

One of the noteworthy and important steps included in the 2019 Act is product liability. The Act has a whole chapter devoted to discussing this idea.

If a consumer suffers harm as a result of a defective good or service, he or she may file a product liability claim against the manufacturer, the service provider, the seller or any other who is in the distributive chain. The Act provides the three essential following provisions:

• If the goods have a manufacturing defect, a design defect, does not adhere to production requirements, violates an implied guarantee, or lacks sufficient guidelines for proper use, the “manufacturer” may be held liable under Section 84 of the Act.
• The liability of the “service provider” in a product liability claim is covered under Section 85 of the Act. To be held responsible under this section, the service must be inadequate, defective, insufficient, or imperfect, as well as an act of negligence that omits any information necessary to prevent the harm from occurring, without sufficient cautionary statements and instructions, and in violation of any express warranties or contractual obligations.
• If there is an exercise of considerable control over the product’s manufacture, testing, designing, labelling, or packing, the “product seller” will be held accountable in a product liability action under Section 86 of the Act. The injury was brought about by a significant adjustment or alteration. Contrary to the manufacturer’s warranty, the product seller provided an explicit warranty.

Additionally, there are some limitations on product responsibility claims. Section 87 of the CP Act, 2019 discusses these exclusions, which are given below: 

• A consumer cannot bring a product liability claim if they misuse, modify, or otherwise alter the product and incur damage as a result.  
• When a product was intended to be utilised under the guidance of an expert, was used while under the influence of drugs or alcohol, was designed to be consumed under expert supervision, or was utilised as a component of another product that caused injury, a consumer cannot file a product liability claim.  
• A manufacturer of a product will not be made responsible for failing to disclose any known or evident risks.

Is there any provision for mediation in the CP Act, 2019?

The Consumer Dispute Redressal Forum may, with the approval of the parties, recommend the parties for mediation as a resolution mechanism if it appears that the consumer dispute can be resolved through such a process. 

As per the CP Act, 2019, the state government shall create a consumer mediation cell for every District Commission and State Commission with the objective of mediating disputes amicably. The National Commission will have a consumer mediation cell established by the Central Government. 

In accordance with the rules, the consumer mediation cell will be in charge of keeping a list of appointed mediators, cases mediated by the cell, a record of proceedings, and other information. The cell is also required to provide a quarterly report to the commission to which it is connected.

• United India Insurance Co. v. Jahangir Spinners (P) Ltd., 1998 SCC OnLine NCDRC 3: (1999) 1 CP] 5
• Book named “Consumer Protection Act, A commentary” authored by G.B. Reddy and Baglekar Akash Kumar.
• https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/Landmark_Judgements.pdf
• https://www.mondaq.com/india/dodd-frank-consumer-protection-act/1020458/consumer-protection-act-2019-key-takeaways
• https://amritmahotsav.nic.in/blogdetail.htm?84  
• https://prsindia.org/billtrack/the-consumer-protection-bill-2019  

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Protection of Consumer Rights in E-Commerce in India

• First Online: 02 March 2021

Cite this chapter

• Richa Gupta 4  

Part of the book series: India Studies in Business and Economics ((ISBE))

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The e-commerce and consumer Internet industries in India registered phenomenal growth rates with their shares in retail, grocery delivery and food technology palpable enough even in tier II and III cities. However, the space ceded from traditional businesses to online commerce has policy implications for consumer trust and confidence—one of the foundations in a market economy. A legal solution to this problem is found in the concept and device of consumer rights so that factors such as information asymmetry, collusion between manufacturers and retailers, fraud, cheating and unfair trade practices do not disadvantage consumers vis-à-vis sellers or become a hindrance in the expansion of businesses. First, a brief overview of the architecture for the protection of consumer rights in e-commerce in India is provided. This includes the Consumer Protection Act 1986 and 2019. The second part of the article looks thoroughly at various consumer cases filed in the e-commerce category at district, state and national consumer forums in India to answer certain pertinent questions in this field which may benefit much from the attention of policymakers and researchers alike. This includes, first, what are some of the biggest consumer issues of concern and frequency in e-commerce in India? Second is the current three-tier framework of consumer courts, at the national, state and district levels, sufficient to address the growing volume of consumer complaints in this area? Third, do consumer courts have adequate capacity to deal with questions involving consumer interests in a field that requires technological knowledge apart from legal know-how? Last, alternatives and policy suggestions are given to strengthen consumer protection to ensure twin goals of swiftness and fairness of decisions on consumer complaints and cases in e-commerce in the country.

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E-Commerce and Consumer Protection in India: The Emerging Trend

Consumer Protection in e-Commerce and Online Services

Research on Rights Protection of Consumer and Interests in E-Commerce-Taking Functional Department and Industry Association

Complaints against e-commerce companies top list at national consumer helpline . https://economictimes.indiatimes.com/news/politics-and-nation/complaints-against-e-commerce-companies-top-list-at-national-consumer-helpline/articleshow/58786034.cms (Accessed 19 April 2020).

NCH is a joint initiative of the Consumer Affairs Department and Indian Institute of Public Administration (IIPA), which receives about 3.5 lakh grievances annually. Since September 2016, the e-commerce sector tops in consumer complaints. https://economictimes.indiatimes.com/news/politics-and-nation/complaints-against-e-commerce-companies-top-list-at-national-consumer-helpline/articleshow/58786034.cms (Accessed 19 April 2020).

45% annual growth over the financial year 2017–2020 as per a report by domestic brokerage firm Kotak Institutional equities . https://www.business-standard.com/article/economy-policy/indian-e-commerce-market-could-reach-28-bn-by-fy2020-report-116090900611_1.html (Accessed 13 July 2017).

Complaints against e-commerce companies top list at national consumer helpline . https://economictimes.indiatimes.com/news/politics-and-nation/complaints-against-e-commerce-companies-top-list-at-national-consumer-helpline/articleshow/58786034.cms (Accessed 12 July 2017).

Consumer Protection Act, 2019 (No. 35 of 2019). It came into force on 20 July 2020 and replaced the Consumer Protection Act, 1986 by way of repealment.

The Consumer Protection (General) Rules, 2020; The Consumer Protection (Central Consumer Protection Council) Rules, 2020; The Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020; The Consumer Protection (Mediation) Rules, 2020; The Consumer Protection (Salary, allowances and conditions of service of President and Members of the State Commission and District Commission) Model Rules, 2020; The Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and members of the State Commission and District Commission) Rules, 2020; and lastly The Consumer Protection (E-Commerce) Rules, 2020. Most important are Consumer Protection (General) Rules, 2020 and Consumer Protection (E-Commerce) Rules, 2020. All except the last rule came into force on 20 July 2020 and the E-commerce Commerce Consumer Rules became enforced from 23 July 2020.

Protection against unfair contracts . https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1657006 (Accessed 29 December 2020).

The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011.

Bill No. 373 of 2019.

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry is working upon a second draft of the National e-commerce Policy. The first draft of the National e-Commerce Policy which came out on 23 February 2019 invited much attention domestically as well as globally due to ‘data localisation’ norms.

Govt: E-commerce policy in ‘final stages’ of drafting; retail trade policy to benefit 65 m small traders . https://www.financialexpress.com/industry/sme/govt-e-commerce-policy-in-final-stages-of-drafting-retail-trade-policy-to-benefit-65m-small-traders/2115990/ (Accessed 29 December 2020).

Flipkart , Amazon off the hook: No e-commerce policy for now, govt plans a set of tightened rules . https://factordaily.com/amazon-flipkart-off-the-hook-no-ecommerce-policy-for-now/ (Accessed 17 July 2018).

There are two business models of e-commerce: ‘Market Place’ model and ‘Inventory-Based’ model. Discussion Paper on E-commerce in India (2013–14) also discusses the same. https://dipp.gov.in/sites/default/files/Discussion_paper_ecommerce_07012014%20%20%2013.pdf (Accessed 17 July 2017).

Foreign Direct Investment (FDI) on E-commerce. Press Note No 3 (2016), Department of Industrial Policy and Promotion. https://dipp.gov.in/sites/default/files/pn3_2016_0.pdf (Accessed 17 July 2017).

Draft e-Commerce Policy . https://pib.gov.in/Pressreleaseshare.aspx?PRID=1575760 (Accessed 29 December 2020), E-Commerce Business Model https://pib.gov.in/PressReleasePage.aspx?PRID=1595850 (Accessed 30 December 2020).

Consolidated FDI Policy circular, pages 49–50. https://dipp.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf (Accessed 30 December 2020).

Who Owns Cloudtail India and Appario Retail, Amazon’s Largest Sellers? https://odishabytes.com/who-owns-cloudtail-india-appario-retail-amazons-largest-sellers/ (Accessed 27 December 2020).

Review of policy on Foreign Direct Investment (FDI) in e-commerce. https://pib.gov.in/PressReleasePage.aspx?PRID=1557380#:~:text=Such%20an%20ownership%20or%20control,entity%20or%20its%20group%20companies (Accessed 30 December 2020).

Committee to Review E -Commerce Rules consisting of representatives from Department of Industrial Policy and Promotion, Department of Economic Affairs, Department of Electronics and Information Technology, Department of Consumer Affairs and certain State Governments, namely Assam, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Punjab.

Govt Sets Up A Panel Of Secretaries To Look Into Draft Ecommerce Policy . https://inc42.com/buzz/govt-sets-up-a-panel-of-secretaries-to-look-into-draft-ecommerce-policy/ (Accessed 17 July 2018).

Draft e-commerce policy : DPIIT to work on inter-ministerial inputs . https://www.thehindubusinessline.com/economy/policy/draft-e-commerce-policy-dpiit-to-work-on-inter-ministerial-inputs/article32498194.ece (Accessed December 2020).

For instance, the CCI in 2018 ruled that Flipkart and Amazon did not enjoy a ‘dominant position’ in the online marketplace and were not in contravention of Section 4 of the Act. https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/flipkart-amazon-not-dominant-hence-not-in-contravention-of-competition-act-cci/articleshow/66534244.cms?from=mdr (Accessed 24 March 2020). However, the CCI ordered an investigation against unfair trade practices of Amazon and Flipkart in 2020 under Section 26 of Act, which was stayed by the Karnataka High Court and counter petitions have been filed by both parties as of February 2020. https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/ktaka-hc-stays-cci-probe-order-against-amazon-flipkart/articleshow/74135156.cms?from=mdr (Accessed 24 March 2020).

E-pharmacies may be regulated by December 2018. https://www.livemint.com/Politics/psEfbkQxDphWg4F9cBtaiO/Epharmacies-may-be-regulated-by-Dec.html (Accessed 17 July 2018).

CC/1300/2015. https://cms.nic.in/ncdrcusersWeb/GetJudgement.do?method=GetJudgement&caseidin=8%2F7%2FCC%2F1300%2F2015&dtofhearing=2015-12-04 (Accessed 20 April 2020).

CC/305/2017.

Jyoti Bhandari versus Resonance Education for Better Tomorrow CC/539/2017. “Order Not Updated or not Finalized”.

K. M. Pooja versus Indraprastha Institute for Higher Education and Others. CC/457/2017.

Nitesh Gupta versus OPJS University. CC/485/2017. “Order Not Updated or not Finalized”.

Raghav Ahuja versus Chandra Prabhu Jain College. CC/453/2017. Next hearing slated for 13 January 2021.

While the cases against Resonance Education and OPJS University have been disposed of, judgement order is unfortunately not available in the database.

Deepak Tyagi & 14 Ors. versus Shree Chhatrapati Shivaji Education Society & ANR. Case No. CC/2238/2018, NCDRC. Case disposed on 20 January 2020.

Smita Bhatia versus Spice Retail Ltd. CC/293/2017 and Ankit Rana versus Spice Retail Ltd. (Authorised Service Center) CC/302/2017. Both cases disposed of but final judgement of latter not available in the database.

Huge stake in the e-commerce arm of the company, viz., Spice Online Pvt. Ltd. was acquired by a Chinese company, which seems congruent with the idea that Chinese companies are far ahead in acquiring cutting-edge technology start-ups in Israel or profitable commercial start-ups in India.

Confonet database lists cases against e-commerce entities at district, state and national consumer fora.

Electronics Shoppe (Naveen Electronics), Spice Retail Ltd., IFB Industries Ltd. (manufacturer of engineering goods and domestic appliances), Toshiba India Pvt. Ltd. & ANR. Akshal Electronics, Anugrah Electronics & Appliances, Satyam Electronics (Dealer), Saragam India Electronics Pvt. Ltd., O General Air Conditioner, Plaza Telecom (mobile phone dealer), Hariom Retail Pvt. Ltd., Prakash Refrigeration and Electrical, Guru Kripa Enterprises Apps Daily, Max HD World, LG Electronics India Pvt. Ltd., Air Chill Electronics, M/S Juneja Electricals & ORS., Akshal Electronics, Samsung India Electronics Pvt. Ltd., Videocon Industries Ltd., Croma, Vardhaman Electronics & ANR. and Godrej Service Centre.

M/S. S. Kumars Online Ltd., And … versus C. Ravi Kumar Medak , Andhra Pradesh, SCDRC F.A. 1743/2005.

General Manager, Madras Telephones & Ors. versus R. Kannan (1994), Prof. P. Narayanankutty versus Uptron India Ltd. & Ors., I (1996).

Mysore Sales International Ltd. versus M.N. Misra, II (1996).

Amazon Seller Services Private Limited (ASSPL) versus Dulal Ray Karmakar and Ors. , Tripura SCDRC, III(2016)CPJ6 (Trip.).

Amazon Seller Services Private Limited versus Gopal Krishan and Ors , Chandigarh SCDRC MANU/SF/0038/2017 (or First Appeal No. A/27/2017).

That is Amazon.in; ASSPL is Amazon Seller Services Private Limited.

Worth Rs. 9998, similar to the last case which was around Rs. 10,000.

It is to be noted that despite case number (A/27/2017), specific names of all respondents and, most importantly, all OPs are not available in the database of Chandigarh Forum after search on Confonet as on 17 September 2017. But from a reading of the judgement, it appears that OP No. 1 is a Customer Care Executive of Xiaomi Company; OP No. 2 is the owner of the premises from which the mobile was to be collected, again related to Xiaomi; it is not clear who is OP No. 3, OP No. 4 and OP No. 5; OP No. 6 is ASSPL.

He did not get the mobile repaired or get any response from Amazon from where he purchased the set.

Where it even reproduced a portion from an affidavit filed by the Deputy Manager (Legal) HCL Services Ltd. to highlight the same.

“…he lost faith in OPs and filed a consumer complaint. The service rendered was absolutely poor and pathetic”.

“The inordinate delay on the part of the OPs in repairing of the telephone tantamount to a deficiency in service on their part. The complainant has been deprived of the service of his mobile handset for which he has already paid. The OPs cannot be permitted to hold the complainant at ransom by their callous attitude in attending the problem of the consumer. It is further found that the motherboard, which is the backbone of the mobile handset in question, has been replaced by the OPs after finding it defective. Under these circumstances, it proves beyond doubt that the mobile handset, which the complainant had purchased, was having a manufacturing defect on the date of its purchase.”

“An agent, who sells a product, is duty-bound to ensure its quality, and if the product is found defective, the agent shall be vicariously liable for the loss caused to the purchaser, along with the manufacturer of the product”. It was so held by the Hon’ble National Consumer Disputes Redressal Commission, New Delhi, in the case titled as Emerging India Real Assets Pvt. Ltd. & Anr. versus Kamer Chand & Anr. Revision Petition No. 765 of 2016 decided on 30.3.2016.

2015 SCC Online NCDRC 950.

Value payable system by India Post is designed to meet the requirements of persons who wish to pay for articles sent to them at the time of receipt of the articles and for those traders and others who wish to recover the value of article supplied by them through the agency of the Post Office, akin to a cash-on-delivery service.

By tampering with packets and misappropriating them.

2015, SCC Online NCDRC 950.

This is the only case shown under the ‘e-commerce’ category type case under NCDRC as of 17 July 2017. Paras Jain versus Amazon Seller Services Pvt. Ltd. CC/930/2017.

https://barandbench.com/amazon-ncdrc-easy-return/ (Accessed 18 April 2020).

IRDA, TRIA, SEBI, RBI and MCI. Consumer Education Monograph Series-2 Misleading Advertisements and Consumer Centre for Consumer Studies, IIPA. https://consumeraffairs.nic.in/WriteReadData/userfiles/file/misleading_advertiesment_and_consumer%20(1).pdf (Accessed September 15, 2018) and https://consumeraffairs.nic.in/sites/default/files/file-uploads/misleading-advertisements/misleading_advertiesment_and_consumer%20%281%29_0.pdf (Accessed 18 April 2020).

Drugs and Magic Remedies (Objectionable Advertisements) Act; Cable Television Network Regulation Act and Rules; Food Safety and Standards Act, 2006; Drugs and Cosmetics Act, 1940; Bureau of Indian Standards Act, 1986; Infant Milk Substitute, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 and Infant Milk Substitute, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Amendment Act, 2002; and Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003.

‘Class Action Suits’ under CPA can be filed for the benefit of all the consumers, as per the judgement of NCDRC in Ambrish Kumar Shukla & 21 others versus Ferrous Infrastructure Private Ltd. 2016. https://www.livelaw.in/class-action-suits-under-consumer-protection-act-can-be-filed-for-the-benefit-of-all-the-consumers-ncdrc-fb/ (Accessed 19 July 2017).

Anticompetitive Agreements.

https://www.cci.gov.in/sites/default/files/172014.pdf (Accessed 15 April 2020).

Through Mr. Kunal Bahl, CEO as OP No. 1, Snapdeal.

Through Mr. Rajesh Gupta, Country Manager, Gurgaon as OP No. 2, SanDisk.

Which includes pen drives, SD cards, etc. of various brands, one of which is the OP No. 2, SanDisk.

2016 SCC OnLine CCI 42.

Whose subsidiary is Freecharge, a popular recharge site.

As per the CCI, the issues raised were as follows: items delivered by OPs were either pirated or defective or of low quality; non-delivery of the product(s) despite successful online payment; some of the bills received by the informant were fake VAT invoices; the informant received different items than what he ordered for and sellers had charged higher price.

For example, the informant argues how Flipkart had the exclusive rights to sell the book Half Girlfriend online.

Competition Commission of India Case No. 80 of 2014, page no. 8 from https://www.cci.gov.in/sites/default/files/802014.pdf (Accessed 15 September 2019).

Mallika Verma versus Union of India (2015); Gaurav Chaudhary versus Blue Dart Express Limited (2016) .

Bibliography

Abrar, P. (2020, February 20). CCI order to probe Amazon, Flipkart fell short of meeting norms: K’taka HC. Business Standard . Retrieved from https://www.business-standard.com/article/companies/cci-order-to-probe-amazon-flipkart-fell-short-of-meeting-norms-k-taka-hc-120022000312_1.html .

Ashok, K. M. (2016, October 10). Class action suits’ under Consumer Protection Act can be filed for the benefit of all the consumers: NCDRC (FB). Live Law . Retrieved from https://www.livelaw.in/class-action-suits-under-consumer-protection-act-can-be-filed-for-the-benefit-of-all-the-consumers-ncdrc-fb/ .

Bajaj, K. (2018, September 10). Govt sets up a panel of secretaries to look into draft ecommerce policy. Inc42 . Retrieved from https://inc42.com/buzz/govt-sets-up-a-panel-of-secretaries-to-look-into-draft-ecommerce-policy/ .

Chakraborty, S., & Choudhury, K. (2019, June 26). National e-commerce policy after a year, no change in FDI guidelines. Business Standard . Retrieved from https://www.business-standard.com/article/economy-policy/govt-sets-1-yr-deadline-for-e-commerce-policy-says-won-t-change-fdi-rules-119062501341_1.html .

Krishnan, M. (2017, May 7). Amazon dragged to NCDRC over allegedly ‘false and misleading’ Easy Return Policy. Bar and Bench . Retrieved from https://barandbench.com/amazon-ncdrc-easy-return/ .

Lohchab, H. (2020, February 14). K’taka HC stays CCI probe order against Amazon, Flipkart. The Economic Times . Retrieved from https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/ktaka-hc-stays-cci-probe-order-against-amazon-flipkart/articleshow/74135156.cms?from=mdr .

Sen, S. (2018, October 17). Flipkart, Amazon off the hook: No ecommerce policy for now, govt plans a set of tightened rules. Factor Daily . Retrieved from https://factordaily.com/amazon-flipkart-off-the-hook-no-ecommerce-policy-for-now/ .

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Gupta, R. (2020). Protection of Consumer Rights in E-Commerce in India. In: Das, K., Mishra, B.S.P., Das, M. (eds) The Digitalization Conundrum in India. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-15-6907-4_9

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Consumer rights: How Indian consumers made system accountable despite long court battles

Some consumers in India fought for as little as one rupee and won their case despite the wheels of justice in consumer courts grinding slowly. Other consumers continue to fight long-drawn court battles to make companies and the government accountable.

A One-Rupee Fight : Consumer Rights In India

Consumer Rights In India: Bhagwan Karia, a senior citizen and an RTI activist, fought a one-rupee case with a consumer court in Mumbai and won against the Indian Railways and a private limited company. What started as a mere exercise of checking weight on a weighing scale in a railway station in Mumbai later turned out to be a pitched battle that exposed an enormous scandal and lurking corruption within the system.

Dr MS Kamath, General Secretary of the Consumer Guidance Society of India speaks to The Probe on the state of consumer rights in India.

"Around eight years ago, I went to the Mulund station in Mumbai, used the weighing machine there, and put in a two rupee coin to check my weight. I didn't even get a ticket or reading in one machine; my weight was shown as 15 kgs more in the second weighing machine. Then I went to the Mulund station master and told him, "sir, pls give my 4 rupees back". So, he called me a "madman". I told him, "I am not a madman. I am a common man. Today, you may think of me as a madman, but tomorrow you will know the power of this common man whom you identify as a madman," reminisces Karia speaking to The Probe about Consumer Rights In India.

Karia notes that he immediately filed an RTI petition and found out that the railways had a 60 per cent margin in the income from the weighing scales installed in the railway stations, and the private limited company had a 40 per cent share. "I later learned that even part of this margin used to be grabbed by the Station Masters and the private limited company's agents, causing a huge revenue loss to the Indian Railways. I went to consumer court in Bandra and lodged a one-rupee case. Do you know that these one or two rupee machines give a turnover of one to two crores all over India, and this money is tax-free? There is a monopoly related to the company involved in providing this service," claims Karia.

Finally, when the consumer court's verdict came in, Karia said the company was slammed with a 50 lakh rupees penalty for not displaying their licence number on the weighing machines. "All this happened because of my one-rupee case. People always ask me why I fought a one-rupee case. It is not a question of one rupee. I spent more money from my pocket and fought for one rupee. The reason is not to get back the amount. The reason is to make the system more transparent and accountable to the common man."

Man Who Brought An Insurance Company To Its Knees

Like Karia, another consumer KR Srinivas from Bangalore, filed a case against an insurance company after they refused to give him the assured sum after he had a severe heart ailment. “I had taken an insurance policy from the Syndicate Bank, and the insurance company was United India Insurance Company. Then the Syndicate Bank merged with the Canara Bank, and my insurance was forcibly shifted to Bajaj Allianz. This was not my choice. I had chest pain and was admitted to Sagar hospital in Bangalore. The doctors did an angiogram on me and said a stent had to be placed. The hospital authorities gave me the documents, but Bajaj Allianz refused to give cashless approval and I wasn’t paid anything,” states Srinivas.

Srinivas, too, like Karia, went to the consumer court and filed an application and argued his own case and won against the insurance firm. “My bill was 1,62,000 rupees. I went to the consumer court in Bangalore. I produced all the papers to the court, and I argued on my own. Judgement came in my favour. I finally got my money and was also given a compensation of 25,000 rupees for the mental agony that I went through and 10,000 rupees for legal expenses with 12 per cent interest per annum for the entire amount from the date of discharge from the hospital to the final settlement day,” adds Srinivas.

While World Consumer Rights Day was observed on March 15, many consumer rights activists say India’s record for delivering justice to consumers is abysmally poor. Speaking to The Probe, Dr MS Kamath, General Secretary of the Consumer Guidance Society of India, says that consumer courts do not redress grievances on a fast-track basis, because of which the consumers’ faith in the justice delivery system has taken a beating.

“Every consumer knows that he has rights, but the implementation is not that great. That is why the number of people escalating their complaints is not as high as it should be. A consumer in India is always at the receiving end when he buys some goods or services. Until he buys the product or uses the services, sellers are always after him. But after he buys, then he has to run after them. That’s because our country’s consumer rights regulatory mechanism is not strong enough. On average, a consumer court takes three to five years to give orders. The implementation of consumer rights is abysmally low in our country,” affirms Dr Kamath.

A 5000-Rupee Fight For Nine Long Years

Neelam Palkar's long and tireless battle bears testament to Dr Kamath's statements on India's poor justice delivery mechanism. Neelam, a makeup artist in Vile Parle in Mumbai, bought a phone in 2014 from a showroom in the city for 5000 rupees, and the phone stopped working within a month. Neelam claims the company refused to keep up their assurances, and she filed a case before the consumer court. For nine years, Neelam has been fiercely contesting her case in the consumer court, hoping that one day she would be able to make the company accountable.

"In 2014, I bought a phone from Vijay Sales showroom for 5000 rupees. They also gave me papers that said that the phone would be repaired if it got damaged within a year. But within a month, the phone got damaged. The battery used to get constantly discharged. I approached the repair centre many times, but they refused to change the battery. They also started misbehaving with me when I told them about the warranty and the promises they made to me, which were in the documents. Then I decided they needed to be taught a lesson and shouldn't take consumers for a ride. That's when I took them to the court," asserts Neelam.

Neelam contends that the long court battle caused her huge mental agony, but she refused an out-of-court settlement with the company and promised to fight until she got justice. "I gave an application to the consumer court. The court sent notices to the company, but they did not answer the court at least twice. The case is still in court. The case is not moving forward. Whenever I approached the court, they kept saying that there was a dearth of professionals in the court, including judges. Then they said there were issues because of the pandemic, and that's why the case is not being heard. I have been fighting for nine long years. In between, someone from the company approached me and said they would pay me 5000 rupees and asked me to stop my fight. I refused and told them that now that I had chosen the legal route, I wanted to take this fight to its logical end. I don't want to give up my fight. I want them to know even a commoner like me can fight for her rights."

Dr Kamath notes that most consumer cases do not reach a logical end because of a lack of unity among consumers. He says that justice cannot be delivered to the Consumer Rights In India until those who are unaffected are as outraged as consumers who have been cheated off or victimised.

“Raising the voice for wrongdoing is a citizen’s fundamental duty. For instance, if I am travelling by train and someone is carrying petrol, kerosene, or some other inflammatory material, I must call the nearby authorities and alert them. Like how consumers have rights, they also have their duties. But we can only bring about change by focusing on consumer unity. If consumers can get together and stop using a bad product, then they can bring the company to its knees. I know of cases where, for even two rupees, people fought and won cases. Consumer fights can be pretty taxing. It will drain your time, energy and resources, but in the long run, you are doing a great favour to society,” maintains Dr Kamath.

Recent Post :

Analysis Of Consumer Protection Act, 2019

List of consumer rights under consumer protection act, 2019, consumer rights are outlined in section 2(9) of the act and include the following:.

• The right of a customer to be shielded from being marketed dangerous products and services that endanger life and property.
• The right of a customer to be shielded from unfair business practices by being informed of the standard, price, quality, quantity, potency, purity, and other features of commodities, products, or services.
• The right of a customer to choose from a wide range of items and services at reasonable rates.
• The right to file a complaint at the appropriate venues over unfair and limiting business practices.
• The right to fair recompense or consideration from the appropriate consumer forums if the merchant has harmed them.
• The right to receive consumer education.

Objectives Of Consumer Protection Act, 2019

• Prevent the marketing of goods that endanger life and property.
• To protect customers from unfair business practices, educate them about the product's quality, potency, amount, standard, purity, and price.
• Create consumer protection councils to safeguard the interests and rights of consumers.
• Whenever feasible, ensure that customers may access a trusted source of goods at reasonable costs.
• Seek remedy for deceptive business practices or consumer abuse.
• Defend the interests of consumers by designating authorities for the prompt and adequate handling and resolution of consumer issues.
• Establish the punishments for violations of the Act.
• Listen to complaints and disputes, and make sure that consumer welfare is given proper attention in suitable forums.
• Educate customers about their rights by offering them consumer education.
• Offer quick and efficient handling of customer concerns through alternative dispute resolution processes.

Changes Incorporated In Consumer Protection Act, 2019

• Where the value of the commodities, services, or products paid as consideration to the seller is less than 50 lakh rupees, the District Commissions shall have the authority to hear complaints.  
• State Commissions shall have the authority to hear complaints where the value of the commodities, services, or products paid as consideration to the seller exceeds 50 lakh rupees but does not exceed two crore rupees.  
• Where the value of the commodities, services, or products paid as consideration to the seller exceeds two crore rupees, the National Commission will have the authority to hear complaints.  
• The Act further specifies that every consumer dispute complaint must be resolved as quickly as practicable. If the complaint does not need analysis or testing of the products and services, it must be resolved within three months of the day the opposing party receives the notice. If such analysis or testing is necessary, the complaint must be resolved within five months.  
• The Consumer Protection Act of 2019 also enables online complaint submission by customers. In order for customers to access the appropriate consumer forums in the event of a disagreement, the Central Government established the E-Daakhil Portal, which offers them a simple, quick, and affordable service.  
• The Act specifies the parameters for direct selling and e-commerce.  
• The Consumer Protection Act of 2019 includes provisions for mediation and other forms of alternative dispute resolution to allow the parties to comfortably resolve their issue without the hassle of court proceedings.  
• The Consumer Protection Act of 2019 includes three new unfair business practices along with provisions for product liability and unfair contracts. The previous Act, in comparison, only listed six categories of unfair commercial practices.  
• The Act of 2019 serves as a consultative body for the promotion and protection of consumer rights.  
• Selection committees are not allowed under the Consumer Protection Act of 2019 since the Central Government is given the authority to designate the members.  

Regulatory Authority

• To safeguard and promote the rights of all consumers and to prevent the infringement of such rights
• to prohibit unfair business practices
• to ensure that no products or services are promoted in false or misleading marketing
• to ensure that no one participates in false or misleading advertisements,
• Inquire about or look into instances of consumer rights violations or unfair trade practices.
• File grievances with the National, State, or District Commission, as appropriate.
• To examine issues pertaining to the barriers to the exercise of consumer rights.
• To urge adherence to international agreements and the very best international standards for consumer rights
• Encourage investigation into and knowledge of consumer rights
•  Establish the required rules to stop unfair business practices and safeguard consumer interests.
• Recall products or services that are dangerous and damaging to consumers,
• Reimburse consumer prices for goods and services, and
• Discontinue actions that are prejudiced and harmful to consumers.

Historical Background Of Consumer Protection Act

• Adulteration of foodstuff.
• Charging of excess prices
• Fabrication of weight and measures
• Sale of forbidden articles
• Manusmriti (800 BC-600BC)
• Kautilya's arthashastra (400BC-300BC)
• Yajnavalikasmriti (300AD-100BC)
• Naradasmriti (100AD-200AD)
• Brihaspatismriti (200AD-400AD)
• Katyayanasmriti (300AD-600AD)

Why There Was A Need For A New Consumer Protection Act?

• The objective of the Parliament in creating the Act was to include protections for e-consumers since, as technology has advanced, the buying and selling of goods and services online has expanded significantly in recent years.  
• There was also a need for regulatory authority, therefore the Central Consumer Protection Authority was formed.  
• There was also the need to provide the District Commission Forum the power of hearing cases of value up to one crore to decrease the caseload on the national consumer Disputes redressal commission (NCDRC)  
• There were no provisions for unfair terms and conditions. That is why under section [5]49(2) and [6]59(2) of the new act the power was given to the state commission and NCDRC to declare any terms of the contract, which is unfair to any consumer, to be null and void  
• There was a need for a provision related to mediation under the consumer protection act that is why under section [7]80 a provision was made that court can refer for settlement through mediation.

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...provided under Section 13(2)(b)(ii) of the Consumer Protection Act . It may be that in some cases the opposite party could face hardship because of such provision, yet for achieving the object of the Act ..., which may be in exceptional cases . On the other hand, sub-Section (2)(b)(ii) of Section 13 of the Consumer Protection Act clearly provides for the consequence of the complaint to be proceeded ex parte... to be mandatory, but not so for ordinary civil suits. Similarly, in our considered view, for cases under the Consumer Protection Act also, the time provided under Section 13(2...

...has been incorporated in Section 9 of the Carriers Act . Even assuming that Section 9 of the Carriers Act , 1865 does not apply to the cases before the Consumer Fora under the Consumer Protection ...Order1. The petitioner is a common carrier governed by the Carriers Act , 1865. It contends that under Section 14(1)(d) of the Consumer Protection Act , 1986 the Consumer ...matters before the Consumer Fora under the Consumer Protection Act . It was also held that the principle underlying Section 9 of the said Act relating to burden of proof is a principle of common law and...

...poorest operate to limit medical litigation in this country. With the emergence of the Consumer Protection Act no doubt in some cases patients have been able to establish the negligence of the doctors...” in the Consumer Protection Act , 1986. It was further stated that there has been no deficiency or negligence in service on the part of the doctors of the hospital and the negligence, if any, is on the...of the Consumer Protection Act could not be invoked against the insurer. According to the insurer the insurance company issued medical establishment professional negligence errors and omissions...

...Emaar MGF Land Limited v. Aftab Singh, (2019) 12 SCC 751, this Court held that Consumer Protection Act cases are not arbitrable. On a perusal of the j...Emaar MGF Land Limited v. Aftab Singh, (2019) 12 SCC 751 a case relating to the Consumer Protection Act , 1986. Reasoning that the exemption...arbitration.”31. In Emaar MGF Land Limited, the Division Bench referred to the object and the purpose behind the Consumer Protection Act , 1986 as a law that meets the long...

...)‘2. … Even assuming that Section 9 of the Carriers Act , 1865 does not apply to the cases before the Consumer Fora under the Consumer Protection ...submitted that this appeal not only involves the applicability of Section 86 CPC and the Act , but also raises the following questions:(a) Whether the Consumer Protection Act being a...provisions of the Carriage by Air Act , 1972 will be read into the provisions of the Consumer Protection Act , 1986?19. The learned Senior Advocate for the...

...decision in New India Assurance Co. Ltd. (2000) 3 SCC 242 is expressly mindful of the doctrine. He submitted that an external aid to the interpretation of the Consumer Protection Act , 1986 also reinforces the above construc...the procedure under the Consumer Protection Act , 1986. The State Commission, Maharashtra issued notice to the opposite parties/appellants herein on 10-2-2004. On 9-9-2004, the State Commission....12. Shri Siddharth Bhatnagar, learned Senior Counsel appearing for the appellants in Civil Appeal No. 4307 of 2007 submitted that the Consumer Tribunals set up under the Consumer Protection ...

...the Consumer Protection Act filed on behalf of or for the benefit of only some of the numerous consumers having a common interest or a common grievance is maintainable or it must necessarily be...Section 12(1)(c) of the Consumer Protection Act is maintainable, before this Commission, where the value of the goods or services and compensation, if any, claimed in respect of none of the...allottees/purchasers exceeds Rupees one crore.(iii) Whether a complaint under Section 12(1)(c) of the Consumer Protection Act is maintainable before this...

...of statutory period of two years under section 24A of the Consumer Protection Act . Therefore, in our opinion the complaint is hopelessly bar... Consumer Forum are governed by Section 24-A of the Consumer Act , 1986. Accordingly, the complaint of the complainant is hereby dismissed being time barred with no order as to...

...whether a statutory School Examination Board comes within the purview of the Consumer Protection Act .8. There is some confusion and divergence in the decisions of the National Commission on this i..., Hazaribagh under Section 11 of the Consumer Protection Act , 1986 (hereinafter referred to as “the Act ”). The complaint was filed by the respondent, Suresh Prasad Sinha on behalf of his minor son...rendering any “service” as defined under the Consumer Protection Act , 1986. The appeal is, therefore, allowed. The impugned orders of the Consumer Fora are set aside. No costs...

...both the cases assumed duel capacity being a purchaser as well as seller of the goods at the same time U/s. 2 (1) (d) of the Consumer Protection Act , 1986; the benefits...purview of Consumer Disputes as envisaged under the Consumer Protection Act , 1986. It appears that, the learned District Forum did ... Consumer Protection Act . As the complaints in both the cases are not Consumers as defined under the Act , cases wo...

.... … Even assuming that Section 9 of the Carriers Act , 1865 does not apply to the cases before the Consumer Fora under the Consumer Protection Act , the principle of common law...second respondent on 15-2-1996. Thereafter, Respondents 1 and 2 filed a complaint under the Consumer Protection Act , 1986 (“the Act ”, for short) against the appellant before the District Consumer ...‘ consumer ’ within the meaning of the Consumer Protection Act and was, therefore, not entitled to maintain the complaint.24. By reason of the transfer and assignment of...

...delay, the Court has to keep in mind that the special period of limitation has been prescribed under the Consumer Protection Act , 1986 for filing appeals and revisions in consumer matters and the object...power by this Court under Section 5 of the Limitation Act .5. It is also apposite to observe that while deciding an application filed in such cases for condonation of...Order1. This petition is directed against the order passed by the National Consumer Disputes Redressal Commission (for short “the National...

...Development Authority v. Balbir Singh . (2004) 5 SCC 65 this Court opined that under the law, the Consumer Protection Act , 1986 has a wide reach and the Commission has jurisdiction even in cases of..., learned Additional Solicitor General, on the other hand, would support the judgment urging that such a relief could be granted in terms of Section 14(1)(c) of the Consumer Protection Act , 1986. The...been functioning properly for the past 6 months, the warranty period should be extended, which request was not accepted by the appellants.16. The Consumer Protection Act ...

...agencies under the Consumer Protection Act , 1986 should also keep in mind the economic situation of the country. Encashment of dollar denominated deposits have certain economic implications. In the present case, none of the...Redressal Commission, New Delhi (for short “the State Commission”) under the Consumer Protection Act , 1986 (for short “the Act ”).3. The respondent herein was a non-resident...dismissed. Hence, this civil appeal comes before this Court at the instance of the Bank.8. The Consumer Protection Act , 1986 provides for formation of the National Commission...

...award of interest is not specifically authorised under the Consumer Protection Act , 1986 (hereinafter called “the Act ”) but in view of our judgment in Sovi... Consumer Protection Act , 1986 are entitled to fasten liability against the insurance companies over and above the liabilities payable under the contract of insurance envisaged in the policy of insurance...like. If in a given case the consumer satisfies the authority under the Act that the discharge voucher was obtained by fraud, misrepresentation, undue influence or the like, coercive bargaining...

...i.e. after the expiry of statutory period of two years under section 24A of the Consumer Protection Act . Therefore, in our opinion the compl... Consumer Forum are governed by Section 24-A of the Consumer Act , 1986. Accordingly, the complaint of the complainant is hereby dismissed being time...

...functioning of8. consumer protection fora established under The Consumer Protection Act , 1986 (now The Consumer Protection Act , 2019) ... Consumer Protection Act ,1. 1986 in challenge to the Order dated 27.06.2014 of the State Commission in appeal no. 264 of 2007 arising out of the Order dated 31.01.2007...limitation period stipulated under section 24A of The Consumer Protection Act , 1986. The District Commission vide its Order dated 31.01.2007 allowed the complaint on...

... Protection Act and the cases before the Consumer Commission are governed by Section 69(1) of the Consumer Act . Accordingly, the complaint of the complainant is hereby dismissed being time barred. ...expiry of statutory period of two years under section 69(1) of the Consumer Protection Act . The Honble Supreme Court of India in Haryana...Urban Development Authority Versus B.K.Sood, Civil Appeal No.6572 of 2005 decided on 26.10.2005 has held below:- the Section debars any Fora set up under Act , admitting a complaint unless the...

...the law is that the Consumer Protection Act [, 1986] has a wide reach and the Commission has jurisdiction even in cases of service rendered by statutory and public authorities. Such authorities become...have no application to these cases , particularly as they were made in the context of a writ proceeding, whereas we are concerned with a proceedings under the Consumer Protection Act ...Commission”) under the Consumer Protection Act , 1986 (“the Act ”, for short) in the year 1999. In the said complaint they alleged that in addition to the initial payment of Rs 5,11,250 towards the lease...

...subject-matter. Similarly in Jagmittar Sain Bhagat (2013) 10 SCC 136, the claimant before the Consumer Protection Forum was found not to be a “ consumer ” under S...166 of the Motor Vehicles Act , 1988 (“the Act ”) for compensation before the Tribunal at Kolkata.3. Rash and negligent driving by the driver of the bus having been established...this Court in Mantoo Sarkar (2009) 2 SCC 244 under which the High Court could interfere in such cases only if there was failure of justice. The decisions of this Court in G.S. Grewal (2014) 7 SCC 303 and...

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Consumer Protection Act 2019 and Health Care Services

Sep 14, 2020 19:42 IST

The dialysis unit at South Central Railway's Central Hospital in Lallaguda. Photo: Special Arrangement / The Hindu.

The Consumer Protection Act, 2019 (CPA), which came into effect on July 24, 2020, is expected to go a long way in serving the interests of consumers at large. In times such as at the present, with the COVID-19 pandemic raging across the country, disputes are likely to arise over the shoddy services rendered in certain segments of the health care sector. In the views of Alexander Thomas, President of the Association of Healthcare Providers of India , and O.V. Nandimath, former Registrar of the National Law School of India University, Bangalore , the new Consumer Protection Act will attempt to address the issues of unfair practices, especially in the private health care delivery systems. They do not really see the private health care providers either being benefited by the new enactment or to be really worried, if the processes are fairly in place in accordance with the required standards. Dr. Nandimath is an Executive Chair Professor in-charge of the Think Tank on Health at the National Law School and Dr. Thomas, having spent a number of years in serving in mission hospitals, now plays an active role in engaging with the Government for health and medical education reform. He has edited many books on quality, communication, and climate change in relation to health. In this interview with S. Rajendran, Senior Fellow of The Hindu Centre for Politics and Public Policy , they seek to put to rest the doubts over whether the new consumer protection enactment is applicable to the health care sector and from the new facets of the law, including the constitution of a consumer protection authority that will have adequate powers to serve the people. Excerpts:

The new Consumer Protection Act (CPA) has come into operation replacing the earlier law, which was over three decades old. What are the fundamental differences between the two Acts and will the new law serve the expectations of the consumer better than its predecessor?

So, the new CPA will attempt to address the issues of unfair practices, especially in private health care delivery systems. We do not really see the private health care providers either going to be benefited by the new enactment or to be really worried if its processes are fairly in place in accordance with the required standards.

Does the CPA apply to the medical services rendered by both the corporate and the Government sector hospitals or is it only to ensure a better service by the corporate hospitals? The Supreme Court had in one of its orders, passed about two decades ago, stated that only the services that are charged shall come under the purview of the Act.

Nandimath : There was speculation initially when some contended that the new CPA will not be applicable to medical services. But that is now settled. This law continues to apply to all medical services, which are ‘bought’ for consideration. In other words, if the patient pays for receiving the medical services, even at concessional rates, then he gets under the ambit of CPA.

If the medical services are rendered free or as charity, then they will be exempted. These principles are applicable to both Government hospitals and corporate hospitals alike. If a Government run establishment charges a fee, its service is liable under CPA, while a private hospital providing its services as charity gets exempted.

Yes. This approach is on the basis of Hon’ble Supreme Court’s decision in V P Shanta’s case in 1985. The same continues even now under the new CPA’s regime.

Is it not a fact that the consumer protection law can be counterproductive in the case of medical services as private hospitals tend to ask for diagnostic reports leading to patients having to spend much more than they really ought to? Doctors and hospitals will be compelled to fend for themselves since there is every likelihood that they will be caught up in court cases and, consequently, in the reliance on medical laboratories.

Nandimath : It is generally argued that doctors adhere to defensive medication (including excessive diagnostic investigations) to defend themselves in case of litigation. There is marginal truth in the same. The evidence-based medicine approach, otherwise, also makes doctors lean towards multiple diagnostic investigation in any way. The core idea is that the patient shall be getting quality health care, of course at affordable prices.

Therefore, it cannot be straightaway alleged that the phenomenon is a result of consumer protection laws. If there were no CPA, obviously, the Civil Courts would have exercised the jurisdiction in medical negligence litigation. The medical community should work towards providing quality affordable healthcare. However, it is a strong prevalent sense that one of the consequences of the CPA has been the practice of defensive medicine and this will push up costs.

Government hospitals, by and large, are known for rendering a poor quality of service while the corporate hospitals are better known for fleecing patients. How can it be ensured that patients receive a good service at a nominal cost?

Access to consumer dispute redressal commissions was the major contributing factor to start with, which helped the patient to litigate easily. Now the present CPA does away with fees for value of goods or services up to Rs five lakh. Therefore, most of the medical services costing less than five lakh of rupees can be litigated against without any fees. This, hopefully, should not facilitate unnecessary litigation.

Professional Regulatory Bodies (National Medical Commission) have a huge role to play to bring back professional approach and higher ethical standards into the system. This would, in the long run, reinstate the lost trust into the doctor-patient relationship, which would, in turn, help reduction of medical litigation gradually.

Medical associations should also supplement the role of a professional regulatory body and work towards development of high quality (with resource efficient) treatment protocols. These protocols would help the tribunals/courts to decide the disputes quickly and efficiently, in a worst-case scenario of litigation. Communication and trust are the key. Hopefully, the introduction of ‘communication’ and ‘ethics’ into the curriculum of MBBS will encourage and build a positive relationship between the patient and doctor.

Medical Insurance is gaining importance in the country largely due to the exorbitant cost of health care. What are your views on the same given the high cost of insurance as well? Will insurance, in the long run, help both the patients and the medical fraternity?

Alexander Thomas : As explained above, if we want quality health care, it is going to be certainly an expensive affair. Some source must fund the increased cost for better medical services. Millions of Indian families are going below poverty line due to catastrophic spending on health and this should be avoided. The state should increase its investment in improving health services, which unfortunately seems a distant dream.

The schemes announced by the Prime Minister recently will cover the large ‘missing middle’. Government needs to ensure that health provision through public institutions is, at least, around 70 per cent. Scientific costing is a prerequisite base to ensure viable healthcare providers who, in turn, can provide affordable quality care by both government and private health care providers.

More innovative ways of health financing are to be devised by careful policy analysis and planning.

However, both effective coverage as well as cost of insurance is very high in India. Pandemic situations have made insurance more expensive and this trend would continue. Unless reforms specific to our country are not brought in the insurance sector, it would not yield the desired results, as we have seen in western countries. More innovative ways of health financing are to be devised by careful policy analysis and planning.

Specially speaking from the present CPA angle, due to further relaxed standards for patients, the professional indemnity insurance cost will certainly increase, which, in turn, will make the health-cost dearer and would pinch the patient forming a vicious circle.

Will it not be appropriate for the authorities to fix costs for all medical procedures carried out at private hospitals, including the fee for the doctors concerned?

Alexander Thomas : The Utopian solution is certainly fixing the cost for all medical procedures. But the real challenge is how we cost the medical services reasonably across diversity ridden hospitals.

Obviously, costing shall precede price fixation. Therefore, the imminent need is to carry out a scientific study to ascertain actual cost of medical services. Otherwise, if unreasonable prices are fixed, it would finally lead to reducing the effectiveness of the overall system and would make the entire system to collapse, which is not the intent of anyone at all.

Health services must be affordable. But this does not mean they should only be affordable to the patient; but to the health service provider as well. Not only individual health, the health of the health delivery system should also be taken into consideration. Such a balanced approach alone will make a system sustainable.

Medical ethics is an important factor and corruption is quite rampant, be it in sourcing devices or compelling patients to undergo invasive or non-invasive medical procedures. What is your advice to the members of the medical profession and health care institutions?

Alexander Thomas : Being educators, we believe in the role of education in improving the professional standards. Education does play an important role in inculcating ethical values in the minds of medical students and, in addition, those trying to teach ethical values should themselves demonstrate to their students that their professional practice is ethical.

While we have been promoting privatisation in medical education as part of medical reform, it must be ensured that medical education is kept affordable. The nobility of the profession no doubt must be kept in mind and ethics and integrity must be emphasised right from student days. Society as a whole has to change and become more ethical.

Two reasons that have affected the doctor-patient relationship over the last decade or so are the CPA and the menace of capitation fees, which have to some extent taken away the ‘nobleness’ of the medical profession.

If we remember that the patient is the most important person and that it is because of the patient that we exist, and treat our patients with empathy and understanding, keeping his/her interests first, the situation will improve.

Related links:

• Ministry of Law and Justice. 2019. The Consumer Protection Act, 2019 , The Gazette of India , August 19. [https://consumeraffairs.nic.in/sites/default/files/CP%20Act%202019.pdf].
• Ministry of Law and Justice. 2020. Corrigendum , The Gazette of India , April 24. [https://consumeraffairs.nic.in/sites/default/files/CP%20Act%202019-corrigendum.pdf].
• Ministry of Consumer Affairs, Food and Public Distribution. 2010. Notification , The Gazette of India, Department of Consumer Affairs, New Delhi, July 15. [https://consumeraffairs.nic.in/sites/default/files/Act%20into%20force.pdf].
• Ministry of Consumer Affairs, Food and Public Distribution. 2020. Notification , The Gazette of India, Department of Consumer Affairs, New Delhi, July 23. Source: Government of India. [https://consumeraffairs.nic.in/sites/default/files/Provisions%20of%20Act%20comes%20into%20force.pdf].

[ S. Rajendran is Senior Fellow, The Hindu Centre for Politics and Public Policy. He was formerly Resident Editor/ Associate Editor, The Hindu, Karnataka.

In a journalistic career of nearly 40 years with The Hindu in Karnataka, he has extensively reported on and analysed various facets of life in the State. He holds a Master’s degree from the Bangalore University. The Government of Karnataka, in recognition of his services, presented him the Rajyotsava Award - the highest honour in the State - in 2010. He can be contacted at [email protected] ].

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E-Commerce and Consumer Protection in India: The Emerging Trend

Neelam chawla.

1 Vivekananda Institute of Professional Studies, Guru Govind Singh Indraprastha University, New Delhi, 110027 India

Basanta Kumar

2 Academic, Research and Legal Consultant, C-202/Satyam Tower, Bomikhal, Bhubaneswar, 751010 India

Given the rapid growth and emerging trend of e-commerce have changed consumer preferences to buy online, this study analyzes the current Indian legal framework that protects online consumers ’  interests. A thorough analysis of the two newly enacted laws, i.e., the Consumer Protection Act, 2019 and Consumer Protection (E-commerce) Rules, 2020 and literature review support analysis of 290 online consumers answering the research questions and achieving research objectives. The significant findings are that a secure and reliable system is essential for e-business firms to work successfully; cash on delivery is the priority option for online shopping; website information and effective customer care services build a customer's trust. The new regulations are arguably strong enough to protect and safeguard online consumers' rights and boost India’s e-commerce growth. Besides factors such as s ecurity, privacy, warranty, customer service, and website information, laws governing  consumer rights protection in e-commerce influence customers’ trust. Growing e-commerce looks promising with a robust legal framework and consumer protection measures. The findings contribute to the body of knowledge on e-commerce and consumer rights protection by elucidating the key factors that affect customer trust and loyalty and offering an informative perspective on e-consumer protection in the Indian context with broader implications.

Study Background

The study context, which discusses two key aspects, namely the rationale for consumer protection in e-commerce and its growth, is presented hereunder:

The Rationale for Consumer Protection in E-commerce

Consumer protection is a burning issue in e-commerce throughout the globe. E-Commerce refers to a mechanism that mediates transactions to sell goods and services through electronic exchange. E-commerce increases productivity and widens choice through cost savings, competitiveness and a better production process organisation 1 (Vancauteren et al., 2011 ). According to the guidelines-1999 of the Organisation for Economic Cooperation and Development (OECD), e-commerce is online business activities-both communications, including advertising and marketing, and transactions comprising ordering, invoicing and payments (OECD, 2000 ). OCED-1999 guidelines recognised, among others, three essential dimensions of consumer protection in e-commerce. All consumers need to have access to e-commerce. Second, to build consumer trust/confidence in e-commerce, the continued development of transparent and effective consumer protection mechanisms is required to check fraudulent, misleading, and unfair practices online. Third, all stakeholders-government, businesses, consumers, and their representatives- must pay close attention to creating effective redress systems. These guidelines are primarily for cross-border transactions (OECD, 2000 ).

Considering the technological advances, internet penetration, massive use of smartphones and social media penetration led e-commerce growth, the OECD revised its 1999 recommendations for consumer protection in 2016. The 2016-guidelines aim to address the growing challenges of e-consumers’ protection by stimulating innovation and competition, including non-monetary transactions, digital content products, consumers-to-consumers (C2C) transactions, mobile devices, privacy and security risks, payment protection and product safety. Furthermore, it emphasises the importance of consumer protection authorities in ensuring their ability to protect e-commerce consumers and cooperate in cross-border matters (OECD, 2016 ). The United Nations Conference on Trade and Development (UNCTAD), in its notes-2017, also recognises similar consumer protection challenges in e-commerce. The notes look into policy measures covering relevant laws and their enforcement, consumer education, fair business practices and international cooperation to build consumer trust (UNCTAD, 2017 ).

E-commerce takes either the domestic (intra-border) route or cross-border (International) transactions. Invariably, six e-commerce models, i.e. Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Business (C2B), Consumer-to-Consumer (C2C), Business-to-Administration (B2A) and Consumer-to-Administration (C2A) operate across countries (UNESAP and ADB, 2019 ; Kumar & Chandrasekar, 2016 ). Irrespective of the model, the consumer is the King in the marketplace and needs to protect his interest. However, the focus of this paper is the major e-commerce activities covering B2B and B2C.

The OECD and UNCTAD are two global consumer protection agencies that promote healthy and competitive international trade. Founded in 1960, Consumer International 2 (CI) is a group of around 250 consumer organisations in over 100 countries representing and defending consumer rights in international policy forums and the global marketplace. The other leading international agencies promoting healthy competition in national and international trade are European Consumer Cooperation Network, ECC-Net (European Consumer Center Network), APEC Electronic Consumer Directing Group (APECSG), Iberoamerikanische Forum der Konsumer Protection Agenturen (FIAGC), International Consumer Protection and Enforcement Agencies (Durovic, 2020 ).

ICPEN, in the new form, started functioning in 2002 and is now a global membership organisation of consumer protection authorities from 64 countries, including India joining in 2019 and six observing authorities (COMESA, EU, GPEN, FIAGC, OECD and UNCTAD). While it addresses coordination and cooperation on consumer protection enforcement issues, disseminates information on consumer protection trends and shares best practices on consumer protection laws, it does not regulate financial services or product safety. Through econsumer.gov 3 enduring initiative, ICPEN, in association with the Federal Trade Commission (FTC), redresses international online fraud. 4 Econsumer.gov, a collaboration of consumer protection agencies from 41 countries around the world, investigates the following types of international online fraud:

• Online shopping/internet services/computer equipment
• Credit and debit
• Telemarketing & spam
• Jobs & making money
• Imposters scam: family, friend, government, business or romance
• Lottery or sweepstake or prize scams
• Travel & vacations
• Phones/mobile devices & phone services
• Something else

Online criminals target personal and financial information. Online trading issues involve scammers targeting customers who buy/sell/trade online. Table ​ Table1 1 on online cross-border complaints of fraud reported by econsumer.gov reveals that international scams are rising. Total cross-border fraud during 2020 (till 30 June) was 33,968 with a reported loss of US$91.95 million as against 40,432 cases with a loss of US$ 151.3 million and 14,797 complaints with the loss of US$40.83 million 5 years back. Among others, these complaints included online shopping fraud, misrepresented products, products that did not arrive, and refund issues. Figure  1 shows that the United States ranked first among the ten countries where consumers lodged online fraud complaints based on consumer and business locations. India was the third country next to France for online fraud reporting in consumer locations, while it was the fifth nation for company location-based reporting. Besides the USA and India, Poland, Australia, the United Kingdom, Canada, Turkey, Spain, and Mexico reported many consumer complaints. Companies in China, the United Kingdom, France, Hong Kong, Spain, Canada, Poland and Turkey received the most complaints. The trend is a serious global concern, with a magnitude of reported loss of above 60%.

International online fraud

Source: Data compiled from https://public.tableau.com/profile/federal.trade.commission#!/vizhome/eConsumer/Infographic and https://www.statista.com/outlook/243/100/ecommerce/worldwide , Accessed 17 October 2020

Online shopping-top consumer locations and company locations.

Source: Data compiled from https://public.tableau.com/profile/federal.trade.commission#!/vizhome/eConsumer/Infographic , Accessed 7 October 2020

The international scenario and views on consumer protection in e-commerce provide impetus to discuss consumer protection in e-business in a regional context-India. The reason for this is that India has become a leading country for online consumer fraud, putting a spotlight on electronic governance systems-which may have an impact on India's ease of doing business ranking. However, to check fraud and ensure consumer protection in e-commerce, the government has replaced the earlier Consumer Protection Act, 1986, with the new Act-2019 and E-Commerce Rule-2020 is in place now.

E-commerce Growth

E-commerce has been booming since the advent of the worldwide web (internet) in 1991, but its root is traced back to the Berlin Blockade for ordering and airlifting goods via telex between 24 June 1948 and 12 May 1949. Since then, new technological developments, improvements in internet connectivity, and widespread consumer and business adoption, e-commerce has helped countless companies grow. The first e-commerce transaction took place with the Boston Computer Exchange that launched its first e-commerce platform way back in 1982 (Azamat et al., 2011 ; Boateng et al., 2008 ). E-commerce growth potential is directly associated with internet penetration (Nielsen, 2018 ). The increase in the worldwide use of mobile devices/smartphones has primarily led to the growth of e-commerce. With mobile devices, individuals are more versatile and passive in buying and selling over the internet (Harrisson et al., 2017 ; Išoraitė & Miniotienė, 2018 ; Milan et al., ( 2020 ); Nielsen, 2018 ; Singh, 2019 ; UNCTAD, 2019a , 2019b ). The growth of the millennial digital-savvy workforce, mobile ubiquity and continuous optimisation of e-commerce technology is pressing the hand and speed of the historically slow-moving B2B market. The nearly US$1 Billion B2B e-commerce industry is about to hit the perfect storm that is driving the growth of B2C businesses (Harrisson et al., 2017 ). Now, e-commerce has reshaped the global retail market (Nielsen, 2019 ). The observation is that e-commerce is vibrant and an ever-expanding business model; its future is even more competitive than ever, with the increasing purchasing power of global buyers, the proliferation of social media users, and the increasingly advancing infrastructure and technology (McKinsey Global Institute, 2019 ; UNCTAD, 2019a , 2019b ).

The analysis of the growth trend in e-commerce, especially since 2015, explains that online consumers continue to place a premium on both flexibility and scope of shopping online. With the convenience of buying and returning items locally, online retailers will increase their footprint (Harrisson et al., 2017 ). Today, e-commerce is growing across countries with a compound annual growth rate (CAGR) of 15% between 2014 and 2020; it is likely to grow at 25% between 2020 and 2025. Further analysis of e-commerce business reveals that internet penetration will be nearly 60% of the population in 2020, and Smartphone penetration has reached almost 42%. Among the users, 31% are in the age group of 25–34 years old, followed by 24% among the 35–44 years bracket and 22% in 18–24 years. Such a vast infrastructure and networking have ensured over 70% of the global e-commerce activities in the Asia–Pacific region. While China alone accounts for US$740 billion, the USA accounts for over US$$560 billion (Kerick, 2019 ). A review of global shoppers making online purchases (Fig.  2 ) shows that consumers look beyond their borders-cross-border purchases in all regions. While 90% of consumers visited an online retail site by July 2020, 74% purchased a product online, and 52% used a mobile device.

Global e-commerce activities and overseas online purchase.

Source: Data compiled from https://datareportal.com/global-dig ital-overview#: ~ :text = There%20are%205.15%20billion%20unique,of%202.4%20percent%20per%20 year and , Accessed 12 October 2020

The e-commerce uprising in Asia and the Pacific presents vast economic potential. The region holds the largest share of the B2C e-commerce market (UNCTAD, 2017 ). The size of e-commerce relative to the gross domestic product was 4.5% in the region by 2015. E-commerce enables small and medium-sized enterprises to reach global markets and compete on an international scale. It has improved economic efficiency and created many new jobs in developing economies and least developed countries, offering them a chance to narrow development gaps and increase inclusiveness—whether demographic, economic, geographic, cultural, or linguistic. It also helps narrow the rural–urban divide.

Nevertheless, Asia’s e-commerce market remains highly heterogeneous. In terms of e-commerce readiness—based on the UNCTAD e-commerce index 2017, the Republic of Korea ranks fifth globally (score 95.5) while Afghanistan, with 17 points, ranks 132 (UNCTAD, 2017 ). According to a joint study (2018) by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and Asian Development Bank (ADB), Asia is the fastest-growing region in the global e-commerce marketplace. The region accounted for the largest share of the world’s business-to-consumer e-commerce market (UNESCAP and ADB, 2019). World Retail Congress (2019) brought out the Global E-Commerce Market Ranking 2019 assessing the top 30 ranking e-commerce markets on various parameters-USA, UK, China, Japan and Germany were the first top countries. India figured at 15 with a CAGR of 19.8% between 2018 and 2022. The report suggests that companies need to enhance every aspect of online buying, focusing on localised payment mode and duty-free return. 5 The observation of this trend implies online consumers’ safety and security.

Figure  3 explains that global cross-border e-commerce (B2C) shopping is growing significantly and is estimated to cross US$1 Trillion in 2020. Adobe Digital Economic Index Survey-2020 6 in March 2020 reported that a remarkable fact to note is about steadily accelerated growth in global e-commerce because of COVID-19. While virus protection-related goods increased by 807%, toilet paper spiked by 231%. Online consumers worldwide prefer the eWallet payment system. The survey also revealed an exciting constellation that COVID-19 is further pushing overall online inflation down.

Global cross-border e-commerce (B2C) market. *Estimated to cross US$ 1 Trillion in 2020.

Source: Authors’ compilation from https://www.invespcro.com/blog/cross-border-shopping/ , Accessed on 15 October 2020

According to UNCTD’s B2C E-Commerce Index 2019 survey measuring an economy’s preparedness to support online shopping, India ranks 73rd with 57 index values, seven times better than the 80th rank index report 2018 (UNCTAD, 2019a , 2019b ). The E-commerce industry has emerged as a front-runner in the Indian economy with an internet penetration rate of about 50% now, nearly 37% of smartphone internet users, launching the 4G network, internet content in the local language, and increasing consumer wealth. Massive infrastructure and policy support propelled the e-commerce industry to reach US$ 64 billion in 2020, up by 39% from 2017 and will touch US$ 200 by 2026 with a CAGR of 21%. 7 Now, India envisions a five trillion dollar economy 8 by 2024. It would be difficult with the present growth rate, but not impossible, pushing for robust e-governance and a digitally empowered society. The proliferation of smartphones, growing internet access and booming digital payments and policy reforms are accelerating the growth of the e-commerce sector vis-a-vis the economy.

Analysis of different studies on the growth of e-commerce in India shows that while retail spending has grown by a CAGR of 22.52% during 2015–2020, online buyers have climbed by a CAGR of 35.44% during the same period (Fig.  4 ). The government’s Digital India drive beginning 1 July 2015-surge using mobile wallets like Paytm, Ola Money, Mobiwik, BHIM etc., and the declaration of demonetisation on 9 November 2016 appears to be the prime reasons for such a vast growth in the country’s e-commerce industry. The Times of India (2020 October 12), a daily leading Indian newspaper, reported that India's increase in digital payments was at a CAGR of 55.1% from March 2016 to March 2020, jumping from US$ 73,90 million to 470.40, reflecting the country's positive policy environment and preparedness for the digital economy. The government's policy objective is to promote a safe, secure, sound and efficient payment system; hence, the Reserve Bank of India (RBI), the national financial and fiscal regulating authority, attempts to ensure security and increase customer trust in digital payments (RBI, 2020 ).

E-Commerce growth in India during 2015–2020.

Source: Data compiled from https://www.ibef.org/news/vision-of-a-new-india-US$-5-trillion-economy , http://www.ficci.in/ficci-in-news-page.asp?nid=19630 , https://www.pwc.in/research-insights/2018/propelling-india-towards-global-leadership-in-e-commerce.html , https://www.forrester.com/data/forecastview/reports# , Accessed 12 October 2020

The massive growth of e-commerce in countries worldwide, especially in India, has prompted an examination of the legal structure regulating online consumer protection.

Literature Review and Research Gap

Theoretical framework.

Generally speaking, customers, as treated inferior to their contracting partners, need protection (Daniel, 2005 ). Therefore, due to low bargaining power, it is agreed that their interests need to be secured. The ‘inequality of negotiating power’ theory emphasises the consumer's economically weaker status than suppliers (Haupt, 2003 ; Liyang, 2019 ; Porter, 1979 ). The ‘inequality in bargaining power’ principle emphasises the customer's economically inferior position to suppliers (Haupt, 2003 ). The ‘exploitation theory’ also supports a similar view to the ‘weaker party’ argument. According to this theory, for two reasons, consumers need protection: first, consumers have little choice but to buy and contract on the terms set by increasingly large and powerful businesses; second, companies can manipulate significant discrepancies in knowledge and complexity in their favour (Cockshott & Dieterich, 2011 ). However, a researcher such as Ruhl ( 2011 ) believed that this conventional theoretical claim about defining the customer as the weaker party is no longer valid in modern times. The logic was that the exploitation theory did not take into account competition between firms. Through competition from other businesses, any negotiating power that companies have vis-a-vis clients is minimal. The study, therefore, considers that the ‘economic theory’ is the suitable theoretical rationale for consumer protection today.

The principle of ‘economic philosophy’ focuses primarily on promoting economic productivity and preserving wealth as a benefit (Siciliani et al., 2019 ). As such, the contract law had to change a great deal to deal with modern-age consumer transactions where there is no delay between agreement and outcomes (McCoubrey  & White, 1999 ). Thus, the ‘economic theory’ justifies the flow of goods and services through electronic transactions since online markets' versatility and rewards are greater than those of face-to-face transactions. The further argument suggests that a robust consumer protection framework can provide an impetus for the growth of reliability and trust in electronic commerce. The ‘incentive theory’ works based on that argument to describe consumer protection in electronic transactions (McCoubrey & White, 1999 ).

Online shopping needs greater trust than purchasing offline (Nielsen, 2018 ). From the viewpoint of ‘behavioural economics, trust (faith/confidence) has long been considered a trigger for buyer–seller transactions that can provide high standards of fulfilling trade relationships for customers (Pavlou, 2003 ). Pavlou ( 2003 ) supports the logical reasoning of Lee and Turban ( 2001 ) that the role of trust is of fundamental importance in adequately capturing e-commerce customer behaviour. The study by O'Hara ( 2005 ) also suggests a relationship between law and trust (belief/faith), referred to as ‘safety net evaluation’, suggesting that law may play a role in building trust between two parties. However, with cross-border transactions, the constraint of establishing adequate online trust increases, especially if one of the parties to the transaction comes from another jurisdiction with a high incidence of counterfeits or a weak rule of law (Loannis et al., 2019 ). Thus, the law promotes the parties' ability to enter into a contractual obligation to the extent that it works to reduce a contractual relationship's insecurity. The present research uses the idea of trust (faith/belief/confidence) as another theoretical context in line with ‘behavioural economics’.

As a focal point in e-commerce, trust refers to a party's ability to be vulnerable to another party's actions; the trustor, with its involvement in networking, sees trust in the form of risk-taking activity (Mayer et al., 1995 ; Helge et al.,  2020 ). Lack of confidence could result in weak contracts, expensive legal protections, sales loss and business failure. Therefore, trust plays a crucial role in serving customers transcend the perceived risk of doing business online and in helping them become susceptible, actual or imaginary, to those inherent e-business risks. While mutual benefit is usually the reason behind a dealing/transaction, trust is the insurance or chance that the customer can receive that profit (Cazier, 2007 ). The level of trust can be low or high. Low risk-taking behaviour leads to lower trustor engagement, whereas high risk-taking participation leads to higher trustor engagement (Helge et al.,  2020 ). The theory of trust propounded by (Mayer et al., 1995 ) suggests that trust formation depends on three components, viz. ability, benevolence, and integrity (ABI model). From the analysis of the previous studies (Mayer et al., 1995 ; Cazier, 2007 ; Helge et al.,  2020 ), the following dimensions of the ABI model emerge:

Precisely, ability, benevolence and integrity have a direct influence on the trust of e-commerce customers.

Gaining the trust of consumers and developing a relationship has become more challenging for e-businesses. The primary reasons are weak online security, lack of effectiveness of the electronic payment system, lack of effective marketing program, delay in delivery, low quality of goods and services, and ineffective return policy (Kamari  & Kamari, 2012 ; Mangiaracina & Perego, 2009 ). These weaknesses adversely impact business operations profoundly later. Among the challenges that are the reasons for the distrust of customers and downsides of e-commerce is that the online payment mechanism is widely insecure. The lack of trust in electronic payment is the one that impacts negatively on the e-commerce industry, and this issue is still prevalent (Mangiaracina  & Perego, 2009 ). The revelation of a recent study (Orendorff, 2019 ) and survey results 9 on trust-building, particularly about the method of payment, preferred language and data protection, is fascinating. The mode of payment is another matter of trust-building. Today’s customers wish to shop in their local currency seamlessly. In an online shoppers’ survey of 30,000 respondents in 2019, about 92% of customers preferred to purchase in their local currency, and 33% abandoned a buy if pricing was listed in US$ only (Orendorff, 2019 ). Airbnb, an online accommodation booking e-business that began operations in 2009, has expanded and spread its wings globally as of September 2020-over 220 countries and 100 k + cities serving 7 + billion customers (guests) with local currency payment options. 10

Common Sense Advisory Survey 11 -Nov. 2019-Feb. 2020 with 8709 online shoppers (B2C) in 29 countries, reported that 75% of them preferred to purchase products if the information was in their native language. About 60% confirmed that they rarely/never bought from an English-only website because they can’t read. Similarly, its survey of 956 business people (B2B) moved in a similar direction. Whether it is B2B or B2C customers, they wanted to go beyond Google translator-this is about language being a front-line issue making or breaking global sales. Leading Indian e-commerce companies like Amazon 12 and Flipkart 13 have started capturing the subsequent 100 million users by providing text and voice-based consumer support in vernacular languages. These observations suggest trust in information that the customers can rely upon for a successful transaction.

Data protection is probably the most severe risk of e-commerce. The marketplaces witness so many violations that it often seems that everyone gets hacked, which makes it a real challenge to guarantee that your store is safe and secure. For e-commerce firms, preserving the data is a considerable expense; it points a finger to maintaining the safety and security of the e-commerce consumers’ data privacy in compliance with General Data Protection Regulations (GDPR) across countries. 14

PwC’s Global Consumer Insight Survey 2020 reports that while customers’ buying habits would become more volatile post-COVID 19, consumers’ experience requires safety, accessibility, and digital engagement would be robust and diversified. 15 The report reveals that the COVID-19 outbreak pushed the popularity of mobile shopping. Online grocery shopping (including phone use) has increased by nearly 63% post-COVID than before social distancing execution and is likely to increase to 86% until its removal. Knowing the speed of market change will place companies in a position to handle the disruption-74% of the work is from home, at least for the time being. Again, the trend applies to consumers’ and businesses’ confidence/trust-building. The safety and security of customers or consumer protection are of paramount importance.

Given the rationale above, the doctrine of low bargaining power, exploitation theory and the economic approach provides the theoretical justification for consumer protection. Economic theory also justifies electronic transactions and e-commerce operations as instruments for optimising income. The trust theory based on behavioural economic conception also builds up the relationship between the law and customer trust and thus increases confidence in the online market. These premises form the basis for this research.

Need and Instruments for Online Consumer Protection

The law of the land guides people and the living society. Prevailing rules and regulations, when followed, provide peace of mind and security in all spheres, including business activities (Bolton et al., 2004 ). Previous research by Young & Wilkinson ( 1989 ) suggested that those who have more legally strict contracts face more legal problems in contrast to trust-related issues (Young & Wilkinson, 1989 ). Time has changed; people going for online transactions go with the legal framework and feel safe and secured (Bolton et al., 2004 ). An online agreement is a valid contract. Most UNCTAD member countries, including India, have adopted various laws concerning e-governance/e-business/e-society, such as e-transaction laws, consumer protection laws, cyber-crime laws, and data privacy and protection laws. The trend indicates that the law is vital in establishing trust in online transactions.

A review of literature on e-commerce and consumer protection suggests that over the years, consumer protection in e-commerce has received significant attention, particularly from the regulatory authorities-government agencies, trade associations and other associated actors (Belwal et al., 2020 ; Cortés, 2010 ; Dhanya, 2015 ; Emma et al., 2017 ; Ibidapo-Obe, 2011 ; ITU, 2018 ; Jaipuriar et al., 2020 ; Rothchild, 1999 ; Saif, 2018 ). The OECD ( 2016 ), UNCTAD ( 2017 ), and World Economic Forum ( 2019 ) guidelines on e-commerce have facilitated countries to have regulations/laws to provide online customers with data privacy, safe transaction and build trust. Table ​ Table2 2 explains policy guidelines on consumer protection based on a summary of online consumer challenges and possible remedies at different purchases stages.

Online consumer protection instruments

Source: Authors’ compilation

Research Issue and Objective

The research gap identification involves reviewing the literature on various aspects of e-commerce and consumer rights protection issues spanning two decades. An objective review of 36 highly rated (Scopus/Web Services/ABDC Ranking or the like) e-commerce related publications from over 100 articles published in the last 20 years (2000–2020) suggests that the vast majority of earlier studies in this field have been conceptual/theoretical and generic. Regarding the legal framework of e-commerce and consumers’ rights protection, six current papers exclusively in the Indian context were available for analysis and review. The observations are that while the focus on consumer privacy and rights protection concerns is too general, the legal framework's scrutiny has limited its scope. A review of selected studies on trust and consumer rights protection in e-commerce, as shown in Table ​ Table3, 3 , reveals that application aspects, particularly legal issues, are lacking. Indian experience in e-commerce consumer rights protection through jurisprudence is nascent. Review studies show the research of a combination of management and law-related analysis in e-commerce and consumer rights protection is lacking. This scenario showed a gap in exploring a more comprehensive research opportunity in the Indian context.

Summary of selected studies on trust in e-commerce and consumer protection in e-commerce: research gap identification

While e-commerce and electronic transactions have evolved as a global trend, it is noteworthy that Indian customers are still reluctant to place complete confidence and trust in commercial online transactions. Compared to conventional offline customers, online customers face greater risk in cyberspace because they negotiate with unknown vendors and suppliers. 16 The common issues 17 related to e-commerce are data privacy and security, product quality, uncertain delivery, no/low scope of replacement, the jurisdiction of filing complaints, and inconceivable terms and conditions (Lahiri, 2018 ). “Country of origin” of the product is a significant issue in e-commerce, particularly in cross-border transactions (Bhattacharya et al., 2020 ). The inadequacy of the Consumer Protection Act, 1986 and other associated laws has surged the insecurity and lack of trust among online customers. The significance of digital payments pursued by the Government of India's essential demonetisation policy-2016 has pushed for online transaction security and consumer protection in e-commerce activities. Therefore, the Consumer Protection Act, 2019 18 replaced the Consumer Protection Act 1986 and became effective with effect from 20 July 2020, 19 while on 7 July 2020, the Consumer Protection (E-commerce) Rules, 2020 20 came into force to address the e-commerce challenges. Nevertheless, it was evident that to attract additional investment and to engage with the global market, India, as an emerging country, had to gain the confidence of e-consumers.

These two legislations primarily govern domestic e-commerce businesses. Therefore, the research focuses on these two legal infrastructure strands-new laws enacted during 2019 and 2020 and discusses their implications for online consumer security to increase customers' interest and trust in India's electronic transactions. Like the  ABI model , the study also examines the factors influencing e-commerce customers' confidence in the present research context.

Methodology

The research initially depended on the rigorous review of the consumer protection guidelines released from time to time by various bodies, such as the OECD and UNCATD, accompanied by an analysis of the Indian consumer protection legal structure. The Indian Consumer Protection Act, 2019 and the Consumer Protection (E-commerce) Rules, 2020 were the review and analysis subjects. The study used e-commerce driver data collected from secondary sources-published material; the survey reported e-commerce growth and trends and consumer protection and conducted an online survey of 432 online consumers during August and September 2020.

Analysing the arguments of Zikmund ( 2000 ), Bryman ( 2004 ), Saumure & Given ( 2008 ), Bill et al., ( 2010 ) and Bornstein et al. ( 2013 ) about the representative of convenience sampling and bias, we consider it is similar to that of the population, and there is no harm with due care. Regarding inherent bias in convenience sampling, data collection from different sources with different respondents’ inclusion provides more data variability and considerably reduces prejudice (Sousa et al., 2004 ; Edgar and Manz, 2017 ). Therefore, the respondents included in the research were students, professors, advocates, doctors, professionals, and homemakers, avoiding excluding family, relatives and friends to ensure bias-free. Their contact details sources were various channels, including public institution websites, social networking sites, and the authors’ email box. Assuming that more respondents feel fun filling out online questionnaires and providing truthful answers (Chen & Barnes, 2007 ; Saunders et al.,  2007 ), the study used an online survey. Furthermore, because people in the digital age are more computer/smartphone savvy, they are more likely to follow a similar trend. Besides, such a technique was convenient during the COVID-19 pandemic condition because of its timeliness, inexpensive methods, ease of research, low cost (no support for this research), readily available, and fewer rules to follow. The respondents' contact details sources were various channels, including public institution websites, social networking sites, and the authors' email box.

The study used a structured questionnaire comprising seven questions with sub-questions except the 7th one being open-ended, consuming about 8–10 min, designed based on the insights gained from responding to customer surveys of different e-commerce companies last year. Pretesting the questionnaire with 17 responses from the target group supported modifying the final questionnaire partially. The first four questions were background questions-gender, age, respondent's attitude towards internet purchasing. Question number five with sub-questions, being the focused question, provided the answer to some trust-building factors found in the literature review. Following previous research (McKnight et al.,  2002 ; Corbit et al.,  2003 ; Pavlou,  2003 ) tested the Likert-scale, this question's solicited response relied on a five-point Likert-rating scale (1 = Not important at all, 2 = Less important, 3 = Somewhat important, 4 = Important, 5 = Very important). The query six asked was about the consumer protection issues in e-commerce/online transaction-scam/fraud and grievance settlement. The final question seven was open-ended for any remark the respondent wanted to make. The questionnaire was reliable on a reasonable basis with greater internal consistency on overall internal reliability (Cronbach's alpha = 0.829) at a 1% level of significance. The Zoho Survey technique was used to solicit required information. The response rate was 76% (327) of the total emails sent (432). The retained responses were 290, i.e. 88.69% of the replies received, completed in all respects and satisfying the research requirement. The research applied statistical instruments like percentage, weighted mean and multiple regression analysis using SPSS-26 for analysis and interpretation.

Figure  5 highlights the research framework and process.

Research framework and process

Deficiency in Act, 1986 and Key Feature of the New Act Governing E-Commerce Consumer Protection

The rapid development of e-commerce has led to new delivery systems for goods and services and has provided new opportunities for consumers. Simultaneously, this has also exposed the consumer vulnerable to new forms of unfair trade and unethical business. The old Act, 1986, has severe limitations regarding its applicability and adjudication processes in consumer rights protection in e-commerce. The new Act, 2020 brings fundamental changes regarding its scope of application, penalty and governance; and envisages CCPA and vests regulating and controlling powers. Table ​ Table4 4 explains the comparative picture between the old Act, 1986 and the new Act, 2019.

Comparison between old Act, 1986 and new Act, 2019

The Act, 2019 applies to buying or selling goods or services over the digital or electronic network, including digital products [s.2 (16)] and to a person who provides technologies enabling a product seller to engage in advertising/selling goods/services to a consumer. The Act also covers online market places or online auction sites [s.2 (17)].

Necessary definition/explanation connected to e-commerce provided by the Act are:

Consumer: Meaning

If a person buys any goods and hires or avails any service online through electronic means, the person would be a consumer of the Act [Explanation b to s.2 (7)].

Product Seller: Electronic Service Providers

The electronic service providers are the product sellers under the Act and have the same duties, responsibilities, and liabilities as a product seller [s.2 (37)].

Unfair Trade Practice: Disclosing Personal Information

Unfair trade practice under the Act [s.2 (47) (ix)] refers to electronic service providers disclosing to another person any personal information given in confidence by the consumer.

Authorities: Central Consumer Protection Authority (CCPA)

The Act, 2019 provides, in addition to the existing three-tier grievance redress structure, the establishment of the Central Consumer Protection Authority [CCPA] [s.10 & 18] to provide regulatory, investigative or adjudicatory services to protect consumers’ rights. The CCPA has the powers to regulate/inquire/investigate into consumer rights violations and/unfair trade practice  suo motu  or on a complaint received from an aggrieved consumer or on a directive from the government. The specific actions it can take include:

• Execute inquiries into infringements of customer rights and initiate lawsuits.
• Order for the recall of dangerous/hazardous/unsafe products and services.
• Order the suspension of unethical commercial practises and false ads.
• Impose fines on suppliers or endorsers or publishers of false advertising.

The power of CCPA is categorical regarding dangerous/hazardous/unsafe goods and false/misleading advertisements. The CCPA has the authority to impose a fine ranging from Rs 100 k to Rs 5 million and/imprisonment up to life term for the violators depending on the type of offences committed by them (Table ​ (Table5 5 ).

Penal provisions

Redress Mechanism

The provisions laid down in Sect. 28 through Sect. 73 deal with various aspects of the consumer dispute redress system. The new Act has changed the District Consumer Dispute Redressal Forum terminology to the District Consumer Dispute Redressal Commission. The pecuniary jurisdiction of filling complaints in the three-tier consumer courts at the District, State and National level has increased (Table ​ (Table5). 5 ). For better understanding, Fig.  6 shows a diagrammatic picture of the judicial system of dispute settlement.

Grievance redress mechanism

The Act, 2019 provides a dispute settlement mechanism through the mediation process in case of compromise at the acceptance point of the complaint or some future date on mutual consent (Sec 37). A mediation cell would operate in each city, state, national commission, and regional bench to expedite redress. Section 74 through 81 of the Act lays down the detailed procedure. Section 81(1) maintains that no appeal lies against the order passed by Mediation, implying that the redress process at the initial stage would be speedy, impacting both the consumers and service providers.

Consumer Protection (E-Commerce) Rules, 2020

The Consumer Protection (E-Commerce) Rules, 2020, notified under the Consumer Protection Act, 2019 on 23 July 2020, aims to prevent unfair trade practices and protect consumers' interests and rights in e-commerce.

Applicability (Rule 2)

The Rules apply to:

• i. Both products and services acquired or sold through automated or electronic networks;
• ii. All models of e-commerce retail;
• iii. All the e-commerce entities, whether they have inventory or market place model. The inventory-based model includes an inventory of goods and services owned by an e-commerce entity and directly sold to consumers [Rule 3(1) f]. In the marketplace model, an e-commerce entity has an information infrastructure platform on a digital and electronic network that facilitates the consumer and the seller. [Rule 3(1)g];
• iv. All aspects of unfair trading practise in all models of e-commerce; and
• v. An e-commerce entity is offering goods or services to consumers in India but not established in India.

General Duties of E-commerce Entities (Rule 4)

The duties of e-commerce entities are:

• i. An e-commerce entity must be a company incorporated under the Companies Act.
• ii. Entities must appoint a point of contact to ensure compliance with the Act.
• iii. They have to establish an adequate grievance redress mechanism; they would appoint a grievance officer for this purpose and display his name, contact details, and designation of their platform. He would acknowledge the complaint's receipt within 48 h and resolve the complaint within a month from receipt of the complaint.
• iv. If they are offering imported goods, the importers’ names and details from whom the imported goods are purchased, and the sellers’ names are to be mentioned on the platform.
• v. They cannot impose cancellation charges on consumers unless they bear similar costs.
• vi. They have to affect all payments towards accepted refund requests of the consumers within a reasonable period.
• vii. They cannot manipulate the goods' prices to gain unreasonable profit by imposing unjustified costs and discriminating against the same class of consumers.

Liabilities of Marketplace E-commerce Entities (Rule 5)

The liabilities of marketplace e-commerce entities include the following:

• i. The marketplace e-commerce entity would require sellers to ensure that information about goods on their platform is accurate and corresponds with the appearance, nature, quality, purpose of goods.
• ii. They would display the following information prominently to its users at the appropriate place on its platform:
• • Details about the sellers offering goods-principal geographic address of its headquarters and all branches and name and details of its website for effective dispute resolution.
• • Separate ticket/docket/complaint number for each complaint lodged through which the user can monitor the status of the complaint.
• • Information about return/refund/exchange, warranty and guarantee, delivery and shipment, payment modes and dispute/grievance redress mechanism.
• • Information on the methods of payment available, the protection of such forms of payment, any fees or charges payable by users.
• iii. They would make reasonable efforts to maintain a record of relevant information allowing for the identification of all sellers who have repeatedly offered goods that were previously removed under the Copyright Act/Trademarks Act/Information Technology Act.

Sellers’ Duties on the Marketplace (Rule 6)

The duties of sellers on the market encompass:

• i. The seller would not adopt any unfair trade practice while offering goods.
• ii. He should not falsely represent himself as a consumer and post-product review or misrepresent any products' essence or features.
• iii. He could not refuse to take back goods purchased or to refund consideration of goods or services that were defective/deficient/spurious.
• iv. He would have a prior written contract with the e-commerce entity to undertake sale.
• v. He would appoint a grievance officer for consumer grievance redressal.
• vi. He would ensure that the advertisements for the marketing of goods or services are consistent with the actual characteristics, access and usage conditions of goods.
• vii. He will provide the e-commerce company with its legal name, the primary geographic address of its headquarters and all subsidiaries/branches, the name and details of the website, e-mail address, customer contact details such as faxes, landlines and mobile numbers, etc.

Duties and Liabilities of Inventory E-commerce Entities (Rule 7)

As in the inventory-based model, inventory of goods and services is owned and sold directly to consumers by e-commerce entities, so inventory e-commerce entities have the same liabilities as marketplace e-commerce entities and the same duties as marketplace sellers.

The Act 2019 has several provisions for regulating e-commerce transactions with safety and trust. Since the Act is new, it would be premature to comment on its operational aspects and effectiveness. In a recent judgement in Consumer Complaint No 883 of 2020 ( M/s Pyaridevi Chabiraj Steels Pvt. Ltd vs National Insurance Company Ltd , the NCDRC 21 has proved the Act's operational effectiveness by deciding the maintainability of a claim's jurisdiction based on the new Act's provisions. However, it is inevitable that "beware buyer" will be replaced by "beware seller/manufacturer"; the consumer will be the real king. The Rules 2020 strike a balance between the responsibilities of e-commerce business owners and on-the-platform vendors. Contravention, if any, of the new regulation/rules would invite the provisions of the Act 2019. The observation is that limited liability partnerships are missing from the e-commerce entities. However, with the Act and Rules' operational experience, the judiciary or legislature will address this issue sooner or later.

Nevertheless, the Rules 2020 provide a robust legal framework to build consumers' trust in e-commerce transactions and protect their rights and interests, thereby proving the notion, "consumer is the king". The COVID-19 impact has pushed the government to adopt and encourage online compliant filling procedures through the National Consumer Helpline. Using various APPs is likely to expedite the adjudication process and benefit the aggrieved consumer and build trust in the governance system.

Reading the Rules, 2020, with the Act, 2019, the observation is that by making smartphones the primary target of the new legislation, the Act, 2019 is hailed as an all-inclusive regulatory regime that would raise customer interest investment in e-commerce. To safeguard consumers' rights in all modern-day retail commerce models, the Act, 2019 attempts to turn the jurisprudence pervading consumer protectionism from a caveat emptor to a caveat seller. In addition, the Act formally incorporated e-commerce within its limits and entered the realm of B2C e-commerce. One crucial takeaway benefit for consumers is simplifying the complaint filing process, enabling consumers to file complaints online and redress grievances.

E-commerce has become a gift to all customers in the COVID-19 pandemic's aftermath. The E-Commerce Rules, 2020 follow the stringent consumer protection regime under the new Act, 2019. In the raging pandemic, the timing of the E-Commerce Rules, 2020 is beneficial considering the current limitations on customers' freedom of travel and increased reliance on e-commerce. The grievances redress mechanism as provided in the Rules, 2020 is indubitably a calibrated step ensuring neutrality in the e-commerce market place, greater transparency, stringent penalties and a striking balance between the commitments of e-commerce firms and vendors in the marketplace. The mandatory provisions of appointing a consumer grievance redress officer and a nodal contact person or an alternative senior appointed official (resident in India) with contact details, acknowledging consumer complaints within 48 h of receipt with a ticket number, and resolving complaints within 1 month of receipt are unquestionably beneficial to consumers. Although each e-commerce company has its refund policy, all refund claims must have a timely settlement. However, anxiety abounds as daily online fraud and unethical trading practices have made consumers fearful of exposing themselves to unscrupulous vendors and service providers. Moreover, the regulations' effective enforcement would dissuade unethical retailers and service providers, thereby building consumer trust, which time will see.

Practical Contributions

The practical contributions of the paper emerge from survey findings. Concerning the primary survey, the male–female ratio is nearly 1:1, with an average age of 36 years in the age range of 20–65. As regards profession, 67% were working professionals, and 22% were students. While all of the respondents were computer/tablet/mobile-savvy, 96% had at least a five-time online shopping experience during the last 7 months between January–July 2020. The desktop with 61% response is still the preferred device for online shopping. The pricing with cash on delivery, shipping convenience, and quality reviews determined online shopping factors. About 57% of them agreed that COVID-19 impacted their online purchase habits and pushed for online transactions even though they feared insecurity about online shopping. The primary concerns were low-quality products at a high price, a refund for defective products, and a delay in settlement of wrong/excess payments. The top five leading e-commerce platforms reported were Amazon, Flipkart, Alibaba, Myntra, and IndiaMart. Netmeds was also a leading e-commerce business platform in the pharmaceutical sector. During the COVID-19 pandemic, JioMart was very popular for home-delivery food products, groceries and vegetables in the metro locality. The customer feedback system was found robust on Amazon.

The respondents' trust in online shopping reveals that a secure and reliable system was essential for 93% of the respondents. For nearly the same proportion, information about how e-business firms work provided security solutions was a priority factor. Choosing a payment option, 76% of the respondents prioritised “cash on delivery-online transfer at the doorstep. Regarding the privacy of personal information shared by online shoppers, 52% said that they cared about this aspect. Factors like warranty and guarantee (67%) and customer service (69%) were important factors of trust-building with the e-entities. Information on the websites (easy navigation/user friendly and reviews) was either important or very important, with 77% of the respondents’ confidence building to buy online. Information about the product features and its manufacturer/supplier was essential to 86% of the respondents for trust-building on the product and the supplier (manufacture) and e-commerce entity. Along with the ABI model discussed above, the presumption is that security, privacy, warranty/guarantee, customer service, and website information factors positively influence e-commerce customers' trust.

Multiple regression analysis suggests that as the  P  = value of every independent variable is below 0.05% level of significance, the independent variables security, privacy, warranty, customer service, and website information are all significant. Alternatively, the overall  P value of 0.032 with R 2 0.82 supports the presumption that security, privacy, warranty/guarantee, customer service, website information factors have a combined influence on e-commerce customers' trust.

Given this backdrop, Table ​ Table6 6 summarises the micro findings on respondents' online shopping behaviour, their trust and safety aspects, and understanding of the provisions of the new Act, 2019 and Rules, 2020. The higher mean value for a sub-factor implies higher importance attached to the factor by the respondents. P value at a 5% level of significance explains an individual element's contribution to trust-building behaviour for online buying.

Statistical analysis of online shopping trust factors ( N  = 290)

Managerial Insights

The first observation from the data analysis is that, comparatively, the younger generation is prone to online shopping; it goes along with Xiaodong and Min ( 2020 ). Secondly, the respondents of all age groups have online buying experience even in a pandemic situation forced by COVID-19, compromising their safety and security concerns. The third observation is that factors like “cash on the delivery option (COD)”, adequate information on the e-commerce entity corporate website, and effective grievance/complaint redress mechanism are the three crucial factors that build consumers’ trust in e-commerce transactions. The reason probably is that this Act and Rules are new and significant dispute (s) could yet be reported seeking invoking the relevant provisions of the Act and Rules in an appropriate legal forum.

Further, the logical observation of the COD option being a perceived influential factor in trust-building emanates from the fact that protection and security are the essential elements that make customers hesitant toward utilizing other e-payment options. The studies by Mekovec and Hutinski ( 2012 ), Maqableh ( 2015 ) and Ponte et al.( 2015 ); have similar views. However, post-demonetization (2016), India is growing with more digital payments. In this context, we value Harvard researchers Bandi et al. ( 2017 ) contention that customers who switch to digital payments maintain their purchasing recurrence but spend more and are less likely to restore their purchases. The firms in emerging markets may appreciate gains from customer interest, notwithstanding operational increases from payment digitalization. The coherent perception about the impact of website information on trust-building is in line with the findings of Brian et al. ( 2019 ) that the online information source creates a spill-over effect on satisfaction and trust toward the retailer. The implication of the need for an effective grievance redress mechanism is that trust-building would be a tricky proposition if the company cannot ensure dedicated and tailored customer service and support. Kamari and Kamari ( 2012 ) and Mangiaracina and Perego ( 2009 ) had comparative perspectives likewise.

The final observation is that the level of trust required to engage in online shopping/transaction varies among the respondents depending on their trust perception level. The younger generation, less than 35 years old, is more risk-taking when it comes to pre-purchase online payment, but women over 45 years old are a little hesitant and prefer to do their online shopping with payment at the time of placing an order. This is ostensibly because the younger generation is more tuned to network connectivity via smartphone/tablet, and they perceive online transactions as less dangerous. The present research findings on the influence of security, privacy, warranty/guarantee, customer service, and website information on e-commerce customers' confidence-building support the earlier discussed ABI model proposition (Mayer et al., 1995 ; Cazier, 2007 ; Helge et al.,  2020 ). The  R 2 -value of 0.82 implies that there are other factors beyond what is studied. The other probable factor (s) that might have influenced trust is the new Act and Rules' effectiveness in protecting online consumers' interests. The new regulations need a couple of years (at least 2 years) of operational experience for proper assessment. The Act 2019 appears robust to protect consumer rights and interests of e-commerce customers with specific regulations (i.e. Consumer Protection (E-Commerce) Rules, 2020) in force, helping the country's economic growth.

The study variably supports Nehf ( 2007 ) view that consumers make decisions about distributing their data in exchange for different benefits like, e.g., information on web sites and access to databases. Trust, credibility, privacy issues, security concerns, the nature of the information on the website, and the e-commerce firm's reputation directly influence consumers' internet trust (Kim et al., 2008 ). Trust is the focal point of online consumers' decision-making; the observation endorses  Larose and Rifon ( 2007 ) creation of privacy alerts as part of consumer privacy self-regulation initiatives and the use of a social cognitive model to consider consumer privacy behaviours. Besides, data privacy and trust breaches adversely affect the firm's market value (Tripathi & Mukhopadhyay, 2020 ) also hold good in the present context. Figure  7 demonstrates a diagrammatic model of trust of the consumer on e-commerce transactions leading to his decision-making.

Model for consumers’ trust on e-commerce transactions

Limitations

Every research has more or less some limitations; this one has too. The main impediment was the non-availability of adequate literature defining the impact assessment of the legal framework of consumer protection measures in e-commerce. The probable reasoning is that the Acts/Laws governing e-commerce and online consumer rights protection under consideration are new; ethical dispute resolution and judicial interventions have only recently begun. Sample size limitation is also a hindering factor in the generalisation of the findings. The observations and managerial insights are likely to change with a few more years of implementation experience of the Acts.

Conclusions, Implications and Future Research

Conclusions.

Lack of trust in goods and their suppliers/manufacturers was one of the primary reasons for people not buying online. The widespread internet penetration and the growing use of computer/tablets/smartphones have pushed e-commerce growth across countries, including India. The rapid e-commerce development has brought about new distribution methods. It has provided new opportunities for consumers, forcing consumers vulnerable to new forms of unfair trade and unethical business. Further, the government's measures to protect consumer rights, particularly online consumers, are inadequate. Hence, the government enacted the Consumer Protection Act, 2019 and the Consumer Protection (E-commerce) Rules, 2020 and made them effective from July 2020. The new Act and Rules have less than 6 months of operational experience, implying premature comment on its effectiveness in providing safety and security to online consumers. However, online consumers' positive responses suggest that people gain confidence in online shopping with safety and security. Because consumer rights protection is paramount in the growth of e-commerce, the new regulations strengthen the grievance redress mechanism of online consumers, ensuring their trust-building ability, safety, and security. The "Consumer is the King with power" now. The new reform, i.e., enactment of the two laws, aids in doing business too. Some legal complications may arise with more operational experience in the future. Still, with judiciary intervention and directives, the online consumer's safety and security will pave the growth of e-commerce in India.

Implications

Some stakeholders have apprehension about the new Act and Rules' effectiveness because of the slow judiciary process, inadequate infrastructure support, and corrupt practices. The findings provide some practical implications for consumer activists, policymakers, and research communities to explore how to strengthen trust-building among online consumers. Regarding theoretical implications, the research improves the scientific community's understanding of the existing body of knowledge about online trust and e-consumer protection. The article further contributes to the body of literature on e-commerce and consumer protection, understanding the crucial factors impacting customer trust and loyalty and provides an insightful perspective on e-consumer protection in the Indian context on the eve of the new legislation enacted in 2019–2020.

Future Research

Given the presumption that e-commerce and trust are areas of constant change, trust in e-commerce will change, and it will be more challenging to integrate e-commerce into people's lives. The scope for further research to test the effectiveness of the Act, 2019, and Rule, 2020 in redressing e-commerce consumers' grievances and protecting their rights is wider only after a couple of years of operational experience. The government's policy drive for accelerating online transactions also poses challenges considering the importance of trust-building and consumer rights protection in e-commerce. Future research would shed more light on these issues.

Acknowledgements

The authors express their appreciation to the section editor and two anonymous reviewers for providing insightful comments and constructive suggestions to improve the paper's quality.

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

Declarations

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

This article does not contain any studies with human participants or animals performed by any of the authors.

1 See The United Nations Economic Commission for Europe (UNECE) guidelines on e-commerce https://www.unece.org/fileadmin/DAM/stats/groups/wggna/GuideByChapters/Chapter_13.pdf , pp 249–263, Accessed 7 October 2020.

2 Consumer International is a champion in the sustainable consumer movement for the last 60 years. Its vision for the future of 2030 is to address three issues-sustainability, digitalization and inclusion. See for more details https://www.consumersinternational.org/who-we-are/ .

3 econsumer.gov came into being in April 2001, addresses international scams and guides its members to combat fraud worldwide; see for details https://econsumer.gov/#crnt .

4 For more details, refer to https://icpen.org/consumer-protection-around-world .

5 For a detailed report, see https://www.worldretailcongress.com/__media/Global_ecommerce_Market_Ranking_2019_001.pdf , Accessed 10 October 2020.

6 Complete report available at https://business.adobe.com/resources/digital-economy-index.html , Accessed 10 October 2020.

7 https://www.ibef.org/news/vision-of-a-new-india-US$-5-trillion-economy , Accessed 7 October 2020.

8 Government of India’s press release, see https://pib.gov.in/PressReleseDetailm.aspx?PRID=1603982 , Accessed 7 October 2020.

9 See CUTS International survey at https://cuts-citee.org/pdf/Discussion_Paper_E-Commerce_in_the_Context_of_Trade_Consumer_Protection_and_Competition_in_India.pdf , CSA Research at https://insights.csa-research.com/reportaction/305013126/Marketing , https://insights.csa-research.com/reportaction/305013125/Marketing , and UNTAD study at https://unctad.org/page/data-protection-and-privacy-legislation-worldwide , Accessed 12 December 2020.

10 https://innovationtactics.com/business-model-canvas-airbnb/ , Accessed 12 December 2020.

11 Detailed findings at https://insights.csa-research.com/reportaction/305013125/Marketing , Accessed 19 October 2020.

12 Amazon India began testing a Hindi for its mobile website, marking its first foray into vernacular languages in August 2018.

13 Flipkart started voice assist in multiple languages - Hindi and English to make shopping easier in June 2020 .

14 See cross-border shopping statistics and trends at https://www.invespcro.com/blog/cross-border-shopping/ , Accessed 15 October 2020.

15 https://www.pwc.com/gx/en/consumer-markets/consumer-insights-survey/2020/pwc-consumer-insights-survey-2020.pdf , Accessed 15 October 2020.

16 For global trend-access, explore, and personalized insights, see details at https://www.forrester.com/data/forecastview/reports# , Accessed 15 October 2020.

17 For defined common issues, see Government’s e-gazette at http://egazette.nic.in/WriteReadData/2020/220661.pdf , Accessed 15 October 2020.

18 https://consumeraffairs.nic.in/sites/default/files/Act%20into%20force.pdf , Accessed 30 October 2020.

19 See Government’s e-gazette notification http://egazette.nic.in/WriteReadData/2019/210422.pdf , Accessed 30 October 2020.

20 Government of India’s press release see https://pib.gov.in/Pressreleaseshare.aspx?PRID=1656161 and for detailed Rules see https://consumeraffairs.nic.in/theconsumerprotection/consumer-protection-e-commerce-rules-2020 .

21 Full reported case details are available at https://indiankanoon.org/doc/49459460/ , Accessed November 22, 2020.

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Contributor Information

Neelam Chawla, Email: [email protected] .

Basanta Kumar, Email: [email protected] .

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Celebrating 20 Years of IP Excellence

Indian Consumer Protection Cases Recap – 2021

In this post, we bring to you a recap of important Consumer Protection cases of Year 2021

The Bombay Dyeing  Vs. Ashok Narang and Anr.

In this case, the Appellant, The Bombay Dyeing and Manufacturing Company Ltd was the builder-promoter whereas Mr. Ashok Narang and others were the allotees/buyers of the flats. It was agreed by the Parties that the possession would be delivered by 2017 at a 20:80 scheme consideration (20% initially and 80% at the time of delivery), in which the Respondents had already made payment of 20% in 2012-13 inclusive of tax and premium. The appellants failed to deliver the flats for possession on the stipulated time and extended it by 2 years. Thus, the Respondents filed a complaint u/s 31 of the Real Estate (Regulation and Development) Act, 2016 (“2016 Act”) before the Authority citing breach u/s 12 read with S. 18 of the 2016 Act seeking cancellation of the allotment and also a refund of the amount they had paid. The Authority did not pass any order regarding the refund stating that S. 12 did not apply retrospectively, and also that the cancellation should be done as per the allotment agreement. Further when appealed before the Appellate authority, it found that S. 12 of the 2016 Act had a retroactive operation and directed the respondent to refund with due interest and also ordered cancellation of the allotments. Consequently, the Appellants approached the Bombay High Court wherein the Appellant-counsel submitted that the provisions of the 2016 Act were prospective in operation and that the written agreement for sale was also absent due to which no liabilities could be imposed upon it as u/s 18. To this, the Respondent-counsel contended that the application of the 2016 Act to an ongoing project itself indicated that the provisions were quasi-retroactive in nature. Also, regarding the absence of a written agreement, it was argued that the Appellant could not be permitted to raise a new contention for the first time in the second appeal, thus it had waived the right to raise any such claims and that could not be allowed to approbate and then reprobate later on. The Court pointed out that no one should be made to wait indefinitely for delivery of possession and thereby held that there was a deficiency of service and disposed of the appeals with no order as to costs.

Citation : The Bombay Dyeing and … vs Ashok Narang and Anr., Decided by Bombay High Court on 30th August, 2021, available at :  The Bombay Dyeing and … vs Ashok Narang and Anr , visited on 9th September 2021.

Punit Jain Vs M/S. Ireo Grace Realtech Pvt. Ltd.

Mr. Punit Jain, the Complainant, filed a consumer complaint against Ireo Grace Realtech Pvt. Ltd. for making him sign a one-sided agreement concerning the sale of a 1483.28 sq. ft. apartment at 9200/ – per sq. ft. instead of the previously agreed rate of 8750/ – per sq. ft on 16.03.2013. The company also agreed to make the apartment available to the Complainant within 42 months of execution of the agreement 03.04.2014. The Agreement also mentioned a 180 days’ grace period. The Complainant made full payment of the agreed amount of 1,55,17,716/ – Rupees before filing the present complaint against the builder when it failed to complete the construction within the stipulated time period. The Counsel for the builder contended that the Complainant would not be considered as a ‘Consumer’ under Section 2(1)(d) of the Consumer Protection Act, 1986 as he had bought the apartment for a commercial purpose and had also made a similar booking in another project by the builder. It was also argued that there was an arbitration clause in the agreement signed by the complainant. The builder’s counsel further contended that the Complainant was bound by the terms of the agreement on the Basic Sale Price. The Consumer Disputes Redressal Forum held that the present agreement was a one-sided agreement and was an unfair contract. It was stated that the Developer could not compel the apartment buyers to be bound by the one-sided contractual terms contained in the Buyer’s Agreement. The court also directed the builder to pay interest @ 9% S.I. per annum from 27.11.2018 till the date of payment of the entire amount. The court also directed interest @ 12% S.I. p.a. should be paid in case of a default.

Citation: Punit Jain vs M/S. Ireo Grace Realtech Pvt. Ltd., Decided by The Consumer Disputes Redressal on 31st August, 2021, available at:  Punit Jain vs M/S. Ireo Grace Realtech Pvt. Ltd. , visited on 9th September, 2021.

Khatema Fibres Ltd. V. New India Assurance Company Ltd.

The Appellant, Khatema Fibres Ltd., took out a “Standard Fire and Social Perils” insurance policy from Respondent-Insurance Company New Assurance Co. Ltd. for a sum of approx. 42 crores from 7/5/2007 to 6/5/2008, but a fire broke out on its factory premises on 15/11/2007. The firm, M/s Adarsh Associates, appointed by the Respondent ascertained the value of loss as approx. 2 crores upon their investigation. The Appellants felt the assessment of was loss was approx. 13 crores, but the Insurance Company stated that it could give a maximum claim only up to the amount quoted by the firm. The Appellant filed a consumer complaint under Section 21 (a)(i) of the CPA, 1986 before the NCDRC seeking various types of compensation from the insurance company, for loss caused due to fire, financial stress, legal fees, and so on. The Commission allowed payment to the Appellant for 2 crores, which was original amount assessed by Respondents. The present case was an appeal under Section 23, where the Appellant contended that the net weight of the damaged material was not correct. The Respondents made the counter-argument that the surveyor was an expert at his field and did the assessment in a scientific manner. The Supreme Court observed that there were many discrepancies found by the surveyor with respect to documents submitted, wherein one document showed a certain amount of waste paper stock, and the other showed a huge increase in the stock. The Court agreed with the National Commission’s finding that the Appellant was not able to establish deficiency in service under Section 2(1)(g). Thus, the Court upheld the previous judgement because there was no arbitrariness or unjustness exercised by the Commission in granting claim to the extent of 2 crores.

Citation: Khatema Fibres Ltd. vs New India Assurance Company Ltd. & Anr., Decided by The Supreme Court on 28th September, 2021, available at:  Khatema Fibres Ltd. v. New India Assurance Co. Ltd. (2021) /, last visited on 4th October, 2021.

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BananaIP’s Consulting & Strategy Department has the experience of helping companies use IP for business and competitive advantage. Companies regularly seek their assistance, advise and opinions on identifying/mining inventions and creations, conducting IP audits, protecting IP assets appropriately, launching risk free products, managing litigation for business benefit, resolving disputes out of Court, making money out of IP, enforcing IP, and licensing transactions. If you have any questions, or need any clarifications, please write to [email protected] .

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Adequacy decisions

How the EU determines if a non-EU country has an adequate level of data protection.

The European Commission has the power to determine, on the basis of article 45 of Regulation (EU) 2016/679  whether a country outside the EU offers an adequate level of data protection.

The adoption of an adequacy decision involves:

• a proposal from the European Commission;
• an opinion of the European Data Protection Board;
• an approval from representatives of EU countries;
• the adoption of the decision by the European Commission.

At any time, the European Parliament and the Council may request the European Commission to maintain, amend or withdraw the adequacy decision on the grounds that its act exceeds the implementing powers provided for in the regulation.

The effect of such a decision is that personal data can flow from the EU (and Norway, Liechtenstein and Iceland) to that third country without any further safeguard being necessary. In others words, transfers to the country in question will be assimilated to intra-EU transmissions of data.

The European Commission has so far recognised Andorra , Argentina , Canada (commercial organisations), Faroe Islands , Guernsey , Israel , Isle of Man , Japan , Jersey , New Zealand ,  Republic of Korea ,  Switzerland  , the United Kingdom under the GDPR  and the LED , the United States (commercial organisations participating in the EU-US Data Privacy Framework)  and  Uruguay  as providing adequate protection.

With the exception of the United Kingdom, these adequacy decisions do not cover data exchanges in the law enforcement sector which are governed by the Law Enforcement Directive (Article 36 of  Directive (EU) 2016/680 ).

The Commission is required to periodically review the adequacy decisions adopted under the GDPR and its predecessor, Directive 95/46/EC, and to report its findings to the European Parliament and the Council. In line with this obligation, the Commission published its Report on the first periodic review of the adequacy decision for Japan on 4 April 2023. On 15 January 2024 the Commission published its Report on the first review of the functioning of the eleven adequacy decisions adopted pursuant to Directive 95/46/EC .

High-level meeting on International Data Flows

On 4 March 2024, the Commission hosted the first ever high-level meeting on safe data flows, gathering responsible Ministers and heads of the data protection authorities of 15 countries and territories for which the EU has adopted an adequacy decision as well as the Chair of the European Data Protection Board. Participants discussed ways to leverage this network of like-minded partners to maximise the benefits of safe and free data flows and explored avenues for closer cooperation on enforcement of data protection rules.

Adequacy decisions latest

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Related links

Press release - 19 February 2021

Press release - 5 September 2018

Press Statement - 20 November 2017

Joint Declaration - 6 July 2017

Joint Statement - 4 July 2017

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Our Current Understanding of the Human Health and Environmental Risks of PFAS

What epa is doing.

Learn what EPA is doing to address PFAS.

Per- and Polyfluoroalkyl Substances (PFAS) Are a Group of Manufactured Chemicals

PFAS are a group of manufactured chemicals that have been used in industry and consumer products since the 1940s because of their useful properties. There are thousands of different PFAS, some of which have been more widely used and studied than others.

Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonate (PFOS), for example, are two of the most widely used and studied chemicals in the PFAS group. PFOA and PFOS have been replaced in the United States with other PFAS in recent years.

One common characteristic of concern of PFAS is that many break down very slowly and can build up in people, animals, and the environment over time.

PFAS Can Be Found in Many Places

PFAS can be present in our water, soil, air, and food as well as in materials found in our homes or workplaces, including:

• Drinking water – in public drinking water systems and private drinking water wells.
• Soil and water at or near waste sites - at landfills, disposal sites, and hazardous waste sites such as those that fall under the federal Superfund and Resource Conservation and Recovery Act programs.
• Fire extinguishing foam - in aqueous film-forming foams (or AFFFs) used to extinguish flammable liquid-based fires.  Such foams are used in training and emergency response events at airports, shipyards, military bases, firefighting training facilities, chemical plants, and refineries.
• Manufacturing or chemical production facilities that produce or use PFAS – for example at chrome plating, electronics, and certain textile and paper manufacturers.
• Food – for example in fish caught from water contaminated by PFAS and dairy products from livestock exposed to PFAS.
• Food packaging – for example in grease-resistant paper, fast food containers/wrappers, microwave popcorn bags, pizza boxes, and candy wrappers.
• Household products and dust – for example in stain and water-repellent used on carpets, upholstery, clothing, and other fabrics; cleaning products; non-stick cookware; paints, varnishes, and sealants.
• Personal care products – for example in certain shampoo, dental floss, and cosmetics.
• Biosolids – for example fertilizer from wastewater treatment plants that is used on agricultural lands can affect ground and surface water and animals that graze on the land.

People Can Be Exposed to PFAS in a Variety of Ways

Due to their widespread production and use, as well as their ability to move and persist in the environment, surveys conducted by the Centers for Disease Control and Prevention (CDC) show that most people in the United States have been exposed to some PFAS. Most known exposures are relatively low, but some can be high, particularly when people are exposed to a concentrated source over long periods of time. Some PFAS chemicals can accumulate in the body over time.

Current research has shown that people can be exposed to PFAS by:

• Working in occupations such as firefighting or chemicals manufacturing and processing.
• Drinking water contaminated with PFAS.
• Eating certain foods that may contain PFAS, including fish.
• Swallowing contaminated soil or dust.
• Breathing air containing PFAS.
• Using products made with PFAS or that are packaged in materials containing PFAS.

Exposure to PFAS May be Harmful to Human Health

Current scientific research suggests that exposure to certain PFAS may lead to adverse health outcomes. However, research is still ongoing to determine how different levels of exposure to different PFAS can lead to a variety of health effects. Research is also underway to better understand the health effects associated with low levels of exposure to PFAS over long periods of time, especially in children.

What We Know about Health Effects

Current peer-reviewed scientific studies have shown that exposure to certain levels of PFAS may lead to:

• Reproductive effects such as decreased fertility or increased high blood pressure in pregnant women.
• Developmental effects or delays in children, including low birth weight, accelerated puberty, bone variations, or behavioral changes.
• Increased risk of some cancers, including prostate, kidney, and testicular cancers.
• Reduced ability of the body’s immune system to fight infections, including reduced vaccine response.
• Interference with the body’s natural hormones.
• Increased cholesterol levels and/or risk of obesity.

Additional Health Effects are Difficult to Determine

Scientists at EPA, in other federal agencies, and in academia and industry are continuing to conduct and review the growing body of research about PFAS. However, health effects associated with exposure to PFAS are difficult to specify for many reasons, such as:

• There are thousands of PFAS with potentially varying effects and toxicity levels, yet most studies focus on a limited number of better known PFAS compounds.
• People can be exposed to PFAS in different ways and at different stages of their life.
• The types and uses of PFAS change over time, which makes it challenging to track and assess how exposure to these chemicals occurs and how they will affect human health. 

Certain Adults and Children May Have Higher Exposure to PFAS

Some people have higher exposures to PFAS than others because of their occupations or where they live. For example:

• Industrial workers who are involved in making or processing PFAS or PFAS-containing materials, or people who live or recreate near PFAS-producing facilities, may have greater exposure to PFAS.
• Pregnant and lactating women tend to drink more water per pound of body weight than the average person and as a result they may have higher PFAS exposure compared to other people if it is present in their drinking water.

Because children are still developing, they may be more sensitive to the harmful effects of chemicals such as PFAS. They can also be exposed more than adults because:

• Children drink more water, eat more food, and breathe more air per pound of body weight than adults, which can increase their exposure to PFAS.
• Young children crawl on floors and put things in their mouths which leads to a higher risk of exposure to PFAS in carpets, household dust, toys, and cleaning products.

Breast milk from mothers with PFAS in their blood and formula made with water containing PFAS can expose infants to PFAS, and it may also be possible for children to be exposed in utero during pregnancy.  Scientists continue to do research in this area. Based on current science, the benefits of breastfeeding appear to outweigh the risks for infants exposed to PFAS in breast milk . To weigh the risks and benefits of breastfeeding, mothers should contact their doctors.

Where to Go for the Latest Information on PFAS

News releases from epa about pfas.

Sign up to receive EPA’s press releases and alerts on PFAS related topics.

Federal Government Resources

• U.S. Environmental Protection Agency (EPA)
• Agency for Toxic Substances and Disease Registry (ATSDR)
• National Institutes of Health (NIH) 
• Food and Drug Administration (FDA)
• United States Department of Defense (DOD)
• United States Navy
• United States Air Force, Civil Engineering Center

State Government Resources

• Association of State Drinking Water Administrators (ASDWA)
• Interstate Technology and Regulatory Council (ITRC)
• Environmental Council of the States (ECOS)
• Environmental Research Institute of the States (ERIS)

Information on How to Provide Input on Proposed Government Actions

What is a regulation.

Under federal environmental laws, EPA and other federal agencies are authorized to help put those laws into effect by creating and enforcing regulations.

Regulations are mandatory requirements that can apply to individuals, businesses, state or local governments, non-profits, and others.

Federal agencies are required to provide an opportunity for public comment when proposing a new regulation and must consider the comments in revising the proposal and issuing a final rule.  In carrying out our mission to protect human health and the environment, EPA develops regulations to prevent or to clean up hazardous chemicals released into our air, land, and water, some of which relate to PFAS. 

Commenting on a proposed regulation is an important opportunity to make your voice heard. It is a way for you to provide decisionmakers with key information on any or all aspects of the proposed action, including:

• Pointing out key issues in the proposed regulation that you or your community are concerned about,
• Offering additional data and scientific evidence that may not have been considered,
• Identifying factual errors, and
• Proposing alternative solutions.  

EPA’s regulations will always be announced in the Federal Register and can be found at the following government websites: https://www.federalregister.gov/ , and https://www.regulations.gov/ .

For some rules, EPA holds a public hearing where you can provide comments in person or remotely. The agency always accepts comments in writing. All comments – whether in person or written – get the same level of consideration. Below are additional resources to help you comment on EPA’s proposed regulations related to PFAS.

• Learn how to get involved with EPA regulations .
• Read tips for submitting effective comments on EPA’s proposed regulations .
• Watch a webinar on “Techniques and Skills for Providing Effective Input in the EPA Rulemaking Process.”
• EPA's Current Understanding
• Increasing Our Understanding
• Action Steps to Reduce Risk
• EPA Actions to Address PFAS
• PFAS Strategic Roadmap
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CCNP Enterprise certification

Demonstrate your expertise in enterprise infrastructure, assurance, security, and more. Configure, troubleshoot, and manage the networks of the largest companies in the world with the Cisco Certified Network Professional (CCNP) Enterprise certification.

Empower the world's biggest networks

Earning a CCNP Enterprise certification demonstrates your ability to scale and maintain enterprise networks to meet growing demands. Showcase your expertise in enterprise infrastructure, virtualization, assurance, security, and automation to influential employers.

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Understand Cisco's solutions for managing networks, including configuring the quality of service settings, and switching between hardware and software.

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Demonstrate your understanding of   virtualization software, virtual machines, and virtual switches. Showcase your ability to divide and manage data paths and create virtual networks.

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Set up and troubleshoot communication protocols. Set up wireless networks and configure features like network time protocol and Network Address Translation/Port Address Translation (NAT/PAT).

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Be able to diagnose and fix network problems. Configure and verify various networking features for optimal performance.

CCNP Enterprise

How it works, no formal prerequisites.

Learners often have three to five years of experience implementing enterprise network solutions.

Common learner profiles

Professional-level certifications expand on the foundations of associate-level certifications. They cover more advanced topics and allow candidates to hone in on a specific focus area of their choice. Many professional-level certification candidates are looking to prove they’re the best of the best in a specialized field.

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• A core exam
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