Consumer Protection: Rights, 4.

Using Legal Recourse – Reporting

Responsibilities & Mechanisms fraud, defects, or unfair practices to
consumer forums.
Consumer protection refers to the laws, 5. Avoiding Wasteful Consumption
regulations, and mechanisms that – Making responsible and
safeguard consumers from unfair trade sustainable purchases.
practices, fraud, and exploitation. It 6. Rejecting False Advertising –
ensures that businesses operate ethically Being cautious of misleading
and provide fair treatment to consumers. promotions.

3. Techniques and Mechanisms to

Protect Consumers
1. Rights of Consumers (As per the
Consumer Protection Act, 2019) A) Self-Regulation by Businesses

1. Right to Safety – Protection  Companies adopt ethical practices

against hazardous goods and and voluntary standards to ensure
services. consumer satisfaction and fair
2. Right to Information – Access to trade.
accurate and truthful information  Example: Ethical advertising,
about products and services. product transparency, and
3. Right to Choose – Freedom to complaint redressal mechanisms.
select from various products at
competitive prices. B) Role of Business Associations
4. Right to be Heard – Consumers
can voice grievances and receive  Industry groups promote fair
fair consideration. competition and quality
5. Right to Redressal – assurance.
Compensation for defective  Example: Federation of Indian
products, poor services, or unfair Chambers of Commerce and
practices. Industry (FICCI), Confederation
6. Right to Consumer Education – of Indian Industry (CII).
Awareness about rights and
protection mechanisms. C) Consumer Awareness
7. Right to a Healthy Environment
– Safe and sustainable  Educating consumers about their
consumption. rights through campaigns,
advertisements, and consumer
2. Responsibilities of Consumers literacy programs.
 Example: Jago Grahak Jago
1. Being Aware – Understanding campaign in India.
rights, responsibilities, and market
conditions. D) Consumer Organizations
2. Checking Product Information –
Reading labels, terms, and  NGOs and consumer advocacy
conditions before purchase. groups help in resolving disputes,
3. Ensuring Product Quality – filing complaints, and spreading
Buying standardized goods (ISI, awareness.
BIS, FSSAI certified).  Example: Consumer Voice,
CUTS International.
E) Government Initiatives  Example: A fairness cream falsely
claiming instant results.
 Consumer Protection Act, 2019 –
Strengthens consumer rights, B) Price Discrimination
introduces e-commerce regulations,
and establishes Consumer Dispute  Charging different prices for the
Redressal Commissions. same product without justification.
 National Consumer Helpline – A  Example: Airlines charging
government initiative for consumer different rates for the same
grievance redressal. flight.

4. Consumer Protection Act (CPA) – C) Puffery

1986 vs. 2019
 Exaggerated or false claims
Consumer Consumer without factual basis.
Feature Protection Protection Act,  Example: "The best coffee in the
Act, 1986 2019 world!"
Covers e-
Limited to D) Bait and Switch
commerce and
Scope goods and
digital
services  Advertising a low-price product to
transactions
Central attract consumers but persuading
Consumer them to buy a higher-priced item.
3-tier  Example: A mobile phone store
Consumer Protection
consumer advertises a cheap phone but
Redressal Authority
forums claims it’s out of stock, pushing a
(CCPA)
introduced costlier model.
No product Manufacturers
Product 6. Restrictive Trade Practices
liability and sellers can
Liability
provision be held liable
Penalties for Restrictive practices limit competition
Misleading No strict false advertising and harm consumers.
Ads penalties and
endorsements A) Price Fixing
E-commerce and
 Collusion among businesses to
Online Not online
maintain high prices.
Purchases covered transactions
 Example: Cement manufacturers
covered
fixing prices.
5. Unfair Trade Practices
B) Cartels
Unfair trade practices deceive or exploit
 Secret agreements between
consumers for profit maximization.
competitors to control supply and
prices.
A) False Advertising  Example: OPEC controlling oil
prices.
 Providing misleading claims about
a product's quality, benefits, or C) Refusal to Deal
performance.
  Businesses deny supply to certain  The Competition Act, 2002
retailers to control pricing or (India) – Prevents anti-competitive
distribution. practices, regulates mergers and
monopolies.
D) Exclusive Dealing  Sherman Antitrust Act (USA) –
Prevents monopolization and anti-
 Suppliers force retailers to sell only competitive agreements.
their products, restricting
competition. C) International Cooperation

E) Tying Arrangements  United Nations Guidelines for

Consumer Protection (UNGCP)
 Forcing consumers to buy – Provides global principles for
additional products with the main consumer rights.
product.  World Trade Organization
 Example: A printer company (WTO) – Regulates international
requiring users to buy only their trade and ensures fair consumer
ink cartridges practices globally.

7. Impact of Unfair and Restrictive Consumer Dispute Redressal

Trade Practices Commission

Aspect Impact The Consumer Dispute Redressal

Reduces competition, Commission (CDRC) is a quasi-judicial
On body established under the Consumer
damages reputation, leads to
Businesses Protection Act, 2019 to resolve consumer
legal penalties
Distorts market efficiency, grievances effectively and efficiently. The
On commission operates at three levels—
increases monopolies,
Economy District, State, and National—to address
reduces consumer choice
Leads to exploitation, higher consumer complaints related to defective
On goods, deficient services, and unfair trade
prices, limited product
Consumers practices.
options

8. Legal Remedies
Composition
A) Consumer Protection Laws
1. District Commission: President (a
District Judge) and at least two
 Consumer Protection Act, 2019
members (one must be a woman).
(India) – Strengthens consumer
2. State Commission: President (a
rights, introduces product liability,
current or former High Court
and regulates misleading
Judge) and at least four members
advertisements.
(one must be a woman).
 Consumer Rights Act, 2015 (UK)
3. National Commission: President
– Covers goods, services, and
(a current or former Supreme Court
unfair contract terms.
Judge) and at least four members
(one must be a woman).
B) Competition Laws
Jurisdiction 5. Appeal Process: Aggrieved parties
can appeal to the higher
 District Commission: Cases up to commission within 30 days.
₹50 lakh.
 State Commission: Cases between The CDRC plays a crucial role in
₹50 lakh and ₹2 crore; appeals protecting consumer rights by ensuring
against District Commission timely justice and fair resolution of
orders. disputes.
 National Commission: Cases
above ₹2 crore; appeals against (Refer our note for this topic)
State Commission orders.

Powers and Functions

 Adjudicate consumer complaints

related to defective products,
service deficiencies, unfair
contracts, etc.
 Issue orders for compensation,
refunds, or replacement of
goods/services.
 Enforce penalties for misleading
advertisements and unfair trade
practices.
 Conduct mediation to resolve
disputes amicably.
 Direct compliance with consumer
rights and safety standards.

Adjudication Process

1. Filing of Complaint: Consumers

file a complaint online or offline
with the relevant commission.
2. Admission & Hearing: The
commission examines the
complaint, issues notices, and hears
both parties.
3. Evidence & Arguments:
Submission of documents, witness
statements, and legal arguments.
4. Decision & Order: The
commission issues a verdict, which
is binding and enforceable.