Consumer Protection Act, 2019

Consumer Rights and Redressal Mechanism

Consumer Rights and Redressal Mechanism

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Introduction to Consumer Protection Act, 2019

The Consumer Protection Act, 2019 (COPRA 2019) is a significant piece of legislation in India that aims to protect the interests of consumers. It replaced the earlier Consumer Protection Act, 1986. The Act provides a framework for safeguarding consumers against unfair trade practices, defective goods, deficient services, and other forms of exploitation. It recognises that consumers are often in a weaker bargaining position compared to manufacturers, service providers, and traders, and therefore need special legal protection.

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Key Consumer Rights

The Act enshrines several key rights for consumers, which are essential for their empowerment and protection. Section 2(9) defines "consumer rights" as:

• The right to be protected against the marketing of goods, products or services which are hazardous to life and property: This ensures that consumers have a right to safety and should not be exposed to dangerous products or services.
• The right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices: Consumers have the right to get complete and accurate information about what they are buying or using.
• The right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices: This right promotes healthy competition and allows consumers access to choices.
• The right to be heard and to be assured that consumer's interests will receive due consideration at appropriate Fora: Consumers have the right to voice their grievances and have their complaints heard and addressed in the consumer redressal mechanisms.
• The right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers: This is the right to get a remedy against wrongful acts by traders or service providers.
• The right to consumer awareness: Consumers have the right to acquire knowledge and skills to be informed consumers throughout life (consumer education).

These rights form the foundation upon which consumer complaints are built under the Act.

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Consumer Redressal Mechanism (Three-Tier System)

The Act establishes a three-tier quasi-judicial mechanism at the District, State, and National levels for the redressal of consumer grievances. A consumer can file a complaint in the appropriate forum depending on the pecuniary value of the goods or services paid for, and the compensation claimed.

1. District Consumer Disputes Redressal Commission (DCDRC): Established at the District level. Handles complaints where the value of goods or services paid for, plus compensation claimed, does not exceed ₹1 Crore.

2. State Consumer Disputes Redressal Commission (SCDRC): Established at the State level. Handles complaints where the value of goods or services paid for, plus compensation claimed, exceeds ₹1 Crore but does not exceed ₹10 Crore. It also hears appeals against the orders of the District Commissions within the State.

3. National Consumer Disputes Redressal Commission (NCDRC): Established at the National level in New Delhi. Handles complaints where the value of goods or services paid for, plus compensation claimed, exceeds ₹10 Crore. It also hears appeals against the orders of the State Commissions and has revisional jurisdiction over State Commission orders.

The Act also provides for filing appeals against the order of the NCDRC to the Supreme Court of India within 30 days.

This three-tier system provides accessible and relatively speedy avenues for consumers to seek justice compared to traditional civil courts. Complaints can often be filed with minimal legal formalities, sometimes even online.

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Deficiency in Service and Defective Goods

Deficiency in Service and Defective Goods

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The core issues addressed by the Consumer Protection Act are problems arising from the purchase of goods and services, specifically concerning their quality and standard. The Act provides specific definitions for goods that are "defective" and services that are "deficient".

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Definition of Defect and Deficiency

Defect (in relation to goods): Section 2(11) defines "defect" as any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods.

This includes issues like manufacturing defects, incorrect quantity, substandard quality compared to what was promised or required by law.

Deficiency (in relation to service): Section 2(11) also defines "deficiency" as any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service and includes:

• any act of negligence or omission or commission by such person, which causes loss or injury to the consumer; and
• omission to do anything for which a service provider is or could be held liable under the law;
• conscious withholding of any information, failure to perform any service or delay in performance of service, which is likely to cause loss or injury to the consumer.

This definition is broad and covers a wide range of issues in services, including negligence, delay, failure to perform, and withholding information, if these acts result in loss or injury to the consumer. This link between negligence and deficiency is particularly relevant to tort law.

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Consumer as a vulnerable party

Consumer protection legislation is based on the premise that the consumer is often the weaker party in a transaction. This vulnerability arises from several factors:

• Information Asymmetry: Consumers often lack full information about the quality, manufacturing process, potential risks of goods, or the standard of service being provided. Manufacturers and service providers possess superior knowledge.
• Lack of Bargaining Power: In many markets, consumers deal with large corporations or monopolies and have little power to negotiate terms and conditions. They often have to accept standard form contracts.
• Technical Complexity: Modern products and services are often complex, making it difficult for consumers to assess their quality or identify defects or deficiencies themselves.
• Marketing and Advertising Practices: Consumers can be easily influenced by misleading or deceptive advertising.
• Difficulty in Accessing Justice: Traditional legal recourse through civil courts can be time-consuming, expensive, and complex, acting as a barrier for ordinary consumers.

Recognising this vulnerability, the Consumer Protection Act provides a dedicated framework and simplified procedures to enable consumers to seek redress effectively and efficiently. The inclusion of negligence within the definition of "deficiency in service" directly addresses situations where a service provider's carelessness harms the consumer, allowing the consumer to use the consumer forum route instead of a potentially more arduous civil tort claim.

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Answer:

Consumer Forums and Their Powers

Consumer Forums and Their Powers

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Composition and Jurisdiction

As mentioned, the Act establishes a three-tier system of Consumer Commissions. The composition and pecuniary jurisdiction are as follows:

Composition: Each Commission consists of a President and members as prescribed. The President is typically a person who is or has been a Judge of a similar level court (District Judge for DCDRC, High Court Judge for SCDRC, Supreme Court Judge for NCDRC). Members are appointed based on their qualifications and experience.

Pecuniary Jurisdiction (Value of goods/services + compensation claimed):

Commission	Jurisdiction Value
District Commission	Up to ₹1 Crore
State Commission	Exceeding ₹1 Crore up to ₹10 Crore
National Commission	Exceeding ₹10 Crore

Territorial Jurisdiction: A complaint can be filed where the cause of action arises, or where the opposite party resides or carries on business, or where the complainant resides or personally works for gain. The 2019 Act introduced the option to file where the consumer resides or personally works for gain, making it more convenient for consumers.

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Powers of the Consumer Commissions

The Consumer Commissions have significant powers to grant relief to consumers. If the Commission is satisfied that the goods are defective or the service is deficient, it can issue an order directing the opposite party to do one or more of the following (Section 39):

• To remove the defect pointed out in the goods or deficiency in the service.
• To replace the goods with new goods of similar description, which shall be free from any defect.
• To return to the complainant the price, or, as the case may be, the charges paid by the complainant.
• To pay such amount as may be awarded as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party.
• To pay such amount as may be awarded as punitive damages (in circumstances specified by the Act).
• To remove the defects in goods or deficiency in services that are likely to cause injury to health or risk to life.
• To discontinue the unfair trade practice or restrictive trade practice and not to repeat it.
• Not to offer hazardous goods for sale.
• To withdraw hazardous goods from being offered for sale.
• To cease manufacture of hazardous goods and desist from offering services that are hazardous in nature.
• To pay the amount as may be awarded as costs to the complainant.

The commissions have the powers of a Civil Court for certain purposes, such as summoning witnesses, discovering and producing documents, and receiving evidence on affidavits. They can also enforce their own orders.

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Answer:

Negligence and Deficiency in Service

Negligence and Deficiency in Service

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The Link Between Negligence in Tort and Deficiency under COPRA

In traditional tort law, negligence is a distinct tort where a duty of care is owed, that duty is breached, causing foreseeable damage to the plaintiff. A person suffering loss or injury due to the negligence of another can sue for damages in a civil court.

The Consumer Protection Act, 2019, specifically incorporates negligence within the definition of "deficiency" in service. Section 2(11) explicitly states that "deficiency" includes "any act of negligence or omission or commission by such person, which causes loss or injury to the consumer".

This inclusion is highly significant because it provides consumers with an alternative, often more accessible and faster, route to seek redress for harm caused by the negligence of service providers, without having to navigate the complexities of a full-fledged civil suit in tort.

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How Negligence Becomes a Consumer Issue

When a service provider (like a doctor, hospital, lawyer, builder, bank, transporter, etc.) provides a service, they owe a duty of care to the consumer. If they fail to exercise the reasonable care and skill expected of a professional or service provider in that field, and this failure (negligence) causes loss or injury to the consumer, the consumer can file a complaint under the Consumer Protection Act alleging "deficiency in service" caused by negligence.

The Consumer Commissions, when entertaining such complaints, effectively apply principles analogous to tort law negligence to determine if there was a deficiency. They examine whether the service provider acted with the required standard of care and skill. If negligence is established and it caused the consumer's loss or injury, the Commission can order compensation.

Examples of negligence constituting deficiency in service:

• Medical Negligence: A doctor or hospital acting negligently during treatment or surgery causing harm to the patient. (However, note that gross negligence is often required for compensation, and complex medical cases may still be challenging).
• Legal Negligence: A lawyer failing to file a suit within the limitation period due to carelessness, causing the client loss.
• Banking Negligence: A bank failing to act diligently on instructions, leading to financial loss for the customer.
• Builder's Negligence: A builder using substandard materials or poor construction practices leading to structural defects in a property purchased by a consumer.

By categorising negligence in service as a deficiency, the Act allows consumers to leverage the specific machinery and powers of the Consumer Commissions to obtain compensation for harm that would traditionally only be recoverable through a tort claim in a civil court. This significantly enhances consumer protection in the service sector.

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