gUnit 3 : CONSUMER PROTECTION ACT ( COPRA ) 2019

Introduction
Consumer protection is the practice of safeguarding buyers of goods and services against unfair
practices in the market. It refers to the steps adopted for the protection of consumers from
corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc. and
to provide remedies in case their rights as a consumer have been violated.

In India, the protection of the rights of the consumers is administered by the Consumer
Protection Act, 2019. The Consumer Protection Act, 2019 was introduced to replace
the Consumer Protection Act, 1986. The new Act contains various provisions which
incorporate the challenges faced by modern and technology-dependent consumers. The Act
also contains various provisions for the protection and promoting the rights of the consumers
Need for the Consumer Protection Act, 2019
The Consumer Protection Act, 2019 was enacted by the Indian legislature to deal with matters
relating to violation of consumer’s rights, unfair trade practices, misleading advertisements,
and all those circumstances which are prejudicial to the consumer’s rights. The intention of the
Parliament behind enacting the Act was to include provisions for e-consumers due to the
development of technology, buying and selling of goods and services online have considerably
increased during the last few years.

The Act seeks to provide better protection of the rights and interests of the consumers by
establishing Consumer Protection Councils to settle disputes in case any dispute arises and to
provide adequate compensation to the consumers in case their rights have been infringed. It
further provides speedy and effective disposal of consumer complaints through alternate
dispute resolution mechanisms. The Act also promotes consumer education in order to educate
the consumer about their rights, responsibilities and also redressing their grievances.

Objective of the Consumer Protection Act, 2019

The main objective of the Act is to protect the interests of the consumers and to establish a
stable and strong mechanism for the settlement of consumer disputes. The Act aims to:
1. Protect against the marketing of products that are hazardous to life and property.
 2. Inform about the quality, potency, quantity, standard, purity, and price of goods to
safeguard the consumers against unfair trade practices.
3. Establish Consumer Protection Councils for protecting the rights and interests of the
consumers.
4. Assure, wherever possible, access to an authority of goods at competitive prices.
5. Seek redressal against unfair trade practices or unscrupulous exploitation of consumers.
6. Protect the consumers by appointing authorities for timely and sufficient administration
and settlement of consumers’ disputes.
7. Lay down the penalties for offences committed under the Act.
8. Hear and ensure that consumers’ welfare will receive due consideration at appropriate
forums in case any problem or dispute arises.
9. Provide consumer education, so that the consumers are able to be aware of their rights.
10. Provide speedy and effective disposal of consumer complaints through alternate dispute
resolution mechanisms.
Important terms-
Complaint
Section 2 of the Consumer Protection Act, 2019 defines a 'complaint' as any written allegation
made by a consumer to obtain relief under the Consumer Protection Act in the case of an unfair
contract, unfair trade practice, restrictive trade practice, defective goods, deficiency of services
or hazardous goods or service
Consumer
A consumer is defined as a person who buys any good or avails a service for a consideration.
It does not include a person who obtains a good for resale or a good or service for commercial
purpose.
Consumer dispute
consumer dispute" means a dispute where the person against whom a. complaint has been
made, denies or disputes the allegations contained in the complaint;
consumer rights
these are the rights conferred by the act to consumesrs . there are 6 rights given to consumers.
Defect
1.5-2 Defect - Section 2(1)(f) of the Act provides that, “defect” means any fault, imperfection
or shortcoming in the quality, quantity, potency, purity or standard which is required to be
maintained by or under any law of the time being in force under any contract, express or implied
or as is claimed by the trader.
Deficiency :
Section 2(11) of the Act defines deficiency to mean, “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.
Direct selling
The act defines direct selling as the "marketing, distribution and sale of goods or providing of
services as a part of network of direct selling, other than under a pyramid scheme, to consumers,
generally in their houses or at their workplace or through explanation and demonstration
E-commerce
E-commerce means digital and electronic platforms to do transactions between buyers and
sellers. There are some e-commerce rules and regulations that are helpful in solving the matters
of consumers. The e-commerce rules help in preventing unfair trade practices, price
manipulations, etc
Electronics Service providers
“Electronic Service Provider” means a person who provides technologies or processes to
enable a product seller to engage in advertising or selling of goods or services to a consumer
and includes any online market place or online auction sites
HARM :
Act states that 'harm' in relation to product liability would, amongst other things include
damage to property (apart from the product itself), personal injury, illness or death, “mental
agony or emotional distress attendant from personal injury, illness or damage to property”
Injury
'Injury' has been defined as “any harm whatsoever illegally caused to any person, in body, mind
or property”
Misleading advertisement
"an advertisement, which— (i) falsely describes such product or service; or (ii) gives a false
guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or
quality of such product or service; or (iii) conveys an express or implied representation which,
if made by the manufacturer or seller or service provider thereof, would constitute an unfair
trade practice; or (iv) deliberately conceals important information"
product liability.
CPA 2019 defines product liability as “the responsibility of a product manufacturer or product
seller, of any product or service, to compensate for any harm caused to a consumer by such
defective product manufactured or sold or by deficiency in services relating thereto”.

Product liability

Under Section 83 of the Act, a product liability action may be brought by a complainant against
a product manufacturer, product service provider or product seller.
Liability of product manufacturer

A product manufacturer will be held liable in a product liability action under the following
circumstances:

 The product contains manufacturing defects.

 The product is defective.
 There is a deviation from manufacturing specifications.
 The product does not conform to the express warranty.
 The product fails to contain adequate information for proper usage.

Liability of product service provider

A product service provider will be held liable in a product liability action under the following
circumstances:

 The service provider will be responsible when the service provided by them is faulty
or imperfect.
 There was an act of negligence on their part.
 The service provider failed to issue adequate instructions and warnings for the
services.
 The service provider failed to conform to the express warranty or terms and
conditions of the contract.

Liability of product seller

A product seller will be held liable in a product liability action under the following
circumstances:

 They altered or modified the product which resulted in being detrimental to the
consumer.
 They failed to exercise reasonable care in assembling, inspecting or maintaining
such product
 They exercised substantial control over the product which resulted in causing harm
to the consumer.

Exceptions to product liability

There are certain exceptions to product liability action mentioned in Section 87 of the Act, such
as;

 The product was altered, modified or misused by the consumer,

  A consumer cannot bring product liability action when the manufacturer has given
adequate warnings and instructions for the use of the product,
 The manufacturer would not be liable in case of a product liability action for not
warning about any danger that is commonly known to the general public.

Restrictive trade practice,

"restrictive trade practice" means a trade practice which tends to bring about manipulation of
price or its conditions of delivery or to affect flow of supplies in the market relating to goods
or services in such a manner as to impose on the consumers unjustified costs or restrictions and
shall include--

(i) delay beyond the period agreed to by a trader in supply of such goods or in providing the
services which has led or is likely to lead to rise in the price;

(ii) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the
case may be, services as condition precedent for buying, hiring or availing of other goods or
services;
Unfair trade practice (UTP),
"unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use
or supply of any goods or for the provision of any service, adopts any unfair method or unfair
or deceptive practice including any of the following practices, namely:--

(i) making any statement, whether orally or in writing or by visible representation including by
means of electronic record, which--

(a) falsely represents that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;

(b) falsely represents that the services are of a particular standard, quality or grade;

(c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new
goods;

(d) represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, uses or benefits which such goods or services do not have;

(e) represents that the seller or the supplier has a sponsorship or approval or affiliation which
such seller or supplier does not have;
(f) makes a false or misleading representation concerning the need for, or the usefulness of,
any goods or services;

(g) gives to the public any warranty or guarantee of the performance, efficacy or length of life
of a product or of any goods that is not based on an adequate or proper test thereof:

Provided that where a defence is raised to the effect that such warranty or guarantee is based
on adequate or proper test, the burden of proof of such defence shall lie on the person raising
such defence;

(h) makes to the public a representation in a form that purports to be--

(A) a warranty or guarantee of a product or of any goods or services; or

(B) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue
a service until it has achieved a specified result, if such purported warranty or guarantee or
promise is materially misleading or if there is no reasonable prospect that such warranty,
guarantee or promise will be carried out;

(i) materially misleads the public concerning the price at which a product or like products or
goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a
representation as to price shall be deemed to refer to the price at which the product or goods or
services has or have been sold by sellers or provided by suppliers generally in the relevant
market unless it is clearly specified to be the price at which the product has been sold or services
have been provided by the person by whom or on whose behalf the representation is made;

(j) gives false or misleading facts disparaging the goods, services or trade of another person.
Consumer rights under Consumer Protection Act, 2019
There exist six rights of a consumer under the Consumer Protection Act, 2019. The rights of
the consumers are mentioned under Section 2(9) of the Act, which are as follows:

1. The right of a consumer to be protected from the marketing of goods and services
that are hazardous and detrimental to life and property.
2. The right of a consumer to be protected against unfair trade practices by being aware
of the quality, quantity, potency, purity, standard and price of goods, products or
services.
3. The right of a consumer to have access to a variety of goods, services and products
at competitive prices.
 4. The right to seek redressal at respective forums against unfair and restrictive trade
practices.
5. The right to receive adequate compensation or consideration from respective
consumer forums in case they have been wronged by the seller.
6. The right to receive consumer education.
consumer courts
Though consumers are the main drivers of trade and commerce. Frauds committed on a
consumer are not new. There are other legislation and acts that protect the rights of innocent
consumers such as, The Indian Contract Act, the Sales of Goods Act, the Civil Procedure
Code, etc. However, their execution is not done appropriately which makes customers hesitant
about filing complaints. The Consumer Protection Act, 1986, was a marvellous achievement
on the part of the government to this effect. The Act was passed to protect the rights and
interests of consumers. The Act directs the formation of statutory bodies known as Consumer
Courts to specifically deal with suits filed by consumers. This is a vital step under this Act, to
reduce the expense, time and burden on the consumer seeking appropriate redressal. For this
purpose, consumer courts are instituted at the three levels i.e. district, state and national levels.

The law provides for the establishment of Councils to educate and promote awareness among
consumers against the dishonest acts of traders or sellers.

A complaint can be filed under the act in cases of- unfair trade practices, restrictive trade
practices, and unfair contract, the higher price charged by the trader, goods that are hazardous
to life and property are sold without following the standards, etc.

Consumer dispute redressal forums-

The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for
redressal of consumer disputes namely district commissions, state commissions and national
commission. The Act also stipulates the pecuniary jurisdiction of each tier of consumer
commission. As per the existing provisions of the Act, District Commissions have jurisdiction
to entertain complaints where value of the goods or services paid as consideration does not
exceed one crore rupees. State Commissions have jurisdiction to entertain complaints where
value of the goods or services paid as consideration, exceeds 1 crore rupees, but does not exceed
10 crore rupees and National Commission has jurisdiction to entertain complaints where value
of goods or services paid as consideration exceeds 10 crore rupees.
After the Act came into force, it was observed that the existing provisions relating to pecuniary
jurisdiction of consumer commissions were leading to cases which could earlier be filed in
National Commission to be filed in State Commissions and cases which could earlier be filed
in State Commissions to be filed in District Commissions. This caused a significant increase in
the workload of District Commissions, leading to rise in pendency and delay in disposal of
cases, defeating the very object of securing speedy redressal to consumers as envisaged under
the Act.
With regard to revision of pecuniary jurisdiction, Central Government held wide consultation
with States/UTs, consumer organizations, law chairs etc. and examined the issues that had
created long pendency of cases in detail.
With notification of the aforementioned rules, the new pecuniary jurisdiction, subject to other
provisions of the Act, shall be as under:

1. District Commissions shall have jurisdiction to entertain complaints where value of the
goods or services paid as consideration does not exceed 50 lakh rupees.
2. State Commissions shall have jurisdiction to entertain complaints where value of the
goods or services paid as consideration exceeds 50 lakh rupees but does not exceed 2
crore rupees.
3. National Commission shall have jurisdiction to entertain complaints where value of the
goods or services paid as consideration exceeds 2 crore rupees.

It may be mentioned that the Consumer Protection Act, 2019 stipulates that every complaint
shall be disposed of as expeditiously as possible and endeavour shall be made to decide the
complaint within a period of 3 months from the date of receipt of notice by opposite party
where the complaint does not require analysis or testing of commodities and within 5 months
if it requires analysis or testing of commodities.
The Act also provides consumers the option of filing complaint electronically. To facilitate
consumers in filing their complaint online, the Central Government has set up the E-Daakhil
Portal, which provides a hassle-free, speedy and inexpensive facility to consumers around the
country to conveniently approach the relevant consumer forum, dispensing the need to travel
and be physically present to file their grievance. E-Daakhil has many features like e-Notice,
case document download link & VC hearing link, filing written response by opposite party,
filing rejoinder by complainant and alerts via SMS/Email. Presently, facility of E-Daakhil is
available in 544 consumer commissions, which includes the National Commission and
consumer commissions in 21 states and 3 UTs. So far, more than 10,000 cases have been filed
using the E-Daakhil Portal and more than 43000 users have registered on the portal.
To provide a faster and amicable mode of settling consumer disputes, the Act also includes
reference of consumer disputes to Mediation, with the consent of both parties. This will not
only save time and money of the parties involved in litigating the dispute, but will also aid in
reducing overall pendency of cases.
District forum :

Section 34 of The Consumer Protection Act , 2019

34. Jurisdiction of District Commission (1) Subject to the other provisions of this Act, the
District Commission shall have jurisdiction to entertain complaints where the value of
the goods or services paid as consideration does not exceed one crore rupees:

Provided that where the Central Government deems it necessary so to do, it may prescribe
such other value, as it deems fit.

(2) A complaint shall be instituted in a District Commission within the local limits of whose
jurisdiction,--

(a) the opposite party or each of the opposite parties, where there are more than one, at the
time of the institution of the complaint, ordinarily resides or carries on business or has a branch
office or personally works for gain; or
 (b) any of the opposite parties, where there are more than one, at the time of the institution of
the complaint, actually and voluntarily resides, or carries on business or has a branch office, or
personally works for gain, provided that in such case the permission of the District Commission
is given; or

(c) the cause of action, wholly or in part, arises; or

(d) the complainant resides or personally works for gain.

(3) The District Commission shall ordinarily function in the district headquarters and may
perform its functions at such other place in the district, as the State Government may, in
consultation with the State Commission, notify in the Official Gazette from time to time.

This section provides for the pecuniary and geographical jurisdiction for filing of complaints
in the District Commission. The pecuniary jurisdiction shall be for value of goods or service
not exceeding one crore rupees. A consumer may file a complaint in a District Commission
within the local limits of whose jurisdiction he resides or personally works for gain. This
section also makes provision for Circuit Benches of District Commission.

Each district forum would comprise of:

1. A President who is qualified, or has been qualified, to be a district judge, and

2. Two other members, having ability, integrity and standing and possess knowledge and
experience in dealing with problems related to economics, law, commerce etc. and one of
whom shall be a woman.

State commission:

Section 47 of The Consumer Protection Act, 2019

47. Jurisdiction of State Commission.- (1) Subject to the other provisions of this Act, the
State Commission shall have jurisdiction—

(a) to entertain—

(i) complaints where the value of the goods or services paid as consideration, exceeds rupees
one crore, but does not exceed rupees ten crore:

Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit;

(ii) complaints against unfair contracts, where the value of goods or services paid as
consideration does not exceed ten crore rupees;

(iii) appeals against the orders of any District Commission within the State; and

(b) to call for the records and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any District Commission within the State, where it appears to
the State Commission that such District Commission has exercised a jurisdiction not vested in
it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its
jurisdiction illegally or with material irregularity.

(2) The jurisdiction, powers and authority of the State Commission may be exercised by
Benches thereof, and a Bench may be constituted by the President with one or more members
as the President may deem fit:

Provided that the senior-most member shall preside over the Bench.

(3) Where the members of a Bench differ in opinion on any point, the points shall be decided
according to the opinion of the majority, if there is a majority, but if the members are equally
divided, they shall state the point or points on which they differ, and make a reference to the
President who shall either hear the point or points himself or refer the case for hearing on such
point or points by one or more of the other members and such point or points shall be decided
according to the opinion of the majority of the members who have heard the case, including
those who first heard it:

Provided that the President or the other members, as the case may be, shall give opinion
on the point or points so referred within a period of one month from the date of such reference.

(4) A complaint shall be instituted in a State Commission within the limits of whose
jurisdiction,--

(a) the opposite party or each of the opposite parties, where there are more than one, at the
time of the institution of the complaint, ordinarily resides or carries on business or has a branch
office or personally works for gain; or

(b) any of the opposite parties, where there are more than one, at the time of the institution of
the complaint, actually and voluntarily resides, or carries on business or has a branch office or
personally works for gain, provided in such case, the permission of the State Commission is
given; or

(c) the cause of action, wholly or in part, arises; or

(d) the complainant resides or personally works for gain.

National commission. :

Section 58 of The Consumer Protection Act ,2019

58. Jurisdiction of National Commission.- (1) Subject to the other provisions of this Act, the
National Commission shall have jurisdiction-
(a) to entertain—
(i) Complaints where the value of the goods or services paid as consideration exceeds rupees
ten crore:
Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit;
 (ii) Complaints against unfair contracts, where the value of goods or services paid as
consideration exceeds ten crore rupees;
(iii) Appeals against the orders of any State Commission;
(iv) Appeals against the orders of the Central Authority; and
(b) to call for the records and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any State Commission where it appears to the National
Commission that such State Commission has exercised a jurisdiction not vested in it by law,
or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction
illegally or with material irregularity.
(2) The jurisdiction, powers and authority of the National Commission may be exercised by
Benches thereof and a Bench may be constituted by the President with one or more members
as he may deem fit:
Provided that the senior-most member of the Bench shall preside over the Bench.
(3) Where the members of a Bench differ in opinion on any point, the points shall be decided
according to the opinion of the majority, if there is a majority, but if the members are equally
divided, they shall state the point or points on which they differ, and make a reference to the
President who shall either hear the point or points himself or refer the case for hearing on such
point or points by one or more of the other members and such point or points shall be decided
according to the opinion of the majority of the members who have heard the case, including
those who first heard it: Provided that the President or the other member, as the case may be,
shall give opinion on the point or points so referred within a period of two months from the
date of such reference.

Over and above the state consumer forum, lies the national consumer dispute redressal forum.
As per the Act, the forum shall comprise of:

1. A president appointed by the central government, who is a judge or has been a judge of the
Supreme court and these appointments are to be mandatorily made after consulting the Chief
Justice of India.
2. Four other members have the ability, integrity and standing and also possess knowledge and
experience in dealing with problems related to economics, law, commerce, public affairs,
administration, etc. and one of whom shall be a woman.
The act provides that these appointments are to be made by the Central government on the
recommendation of a selection committee constituting of:

1. A person who is a judge of the Supreme Court to be nominated by the chief justice of India.
2. The secretary in the Department of legal affairs in the government of India.
3. Secretary of the Department dealing with consumer affairs in the Government of India.

Jurisdiction of consumer dispute redressal forums

The consumer protection act, 2019 replaced the Act of 1986 to adapt to the changing
environment. The new Act includes, in its ambit, e-commerce transactions. The act has also
modified the definition of the complainant to include a parent or legal guardian in case the
complainant is a minor.
 Certain significant amendments have been brought by the 2019 Act, with respect to
the Consumer Redressal Forums, also. These are:-

1. Territorial Jurisdiction – The Consumer Protection Act, 2019 now provides that the consumers
can register their complaints at a place where all or one of the opposite parties resides or carries
on business, or the place of cause of action or where the complainant is residing or works for
gain unlike the 1986 Act (which mandated filing of a complaint by the complainant at a place
of residence or business of the respondent only), thus increasing the scope of territorial
jurisdiction. The ultimate objective behind this is to remove the difficulties and problems faced
by the consumers in seeking redressal against businesses.
The complaints are registered at appropriate forums based on the limit of pecuniary
jurisdiction.

2. Pecuniary Jurisdiction – Certain significant modifications have been brought forth by the Act
of 2019 concerning the pecuniary jurisdiction for all the forums i.e. the District, State, and
National Commissions, respectively:

1. The upper limit of pecuniary jurisdiction for the District Commission has been increased from
Rs.20,00, 000 to Rs.100,00,000 as per Section 34, Consumer Protection Act, 2019.
2. The limit of pecuniary jurisdiction for the State Commission has been increased from
Rs.100,00,000 to Rs.10,00,00,000 as per Section 47, Consumer Protection Act, 2019 and,
3. The limit of pecuniary jurisdiction for the National Commission has been increased from above
Rs.10,00,00,000 to above Rs.10,00,00,000 as per Section 58, Consumer Protection Act, 2019.

These modifications have widened the scope of pecuniary jurisdiction to a much larger extent.
Along with the above-mentioned changes, the 2019 Act has also changed the means for the
determination of the pecuniary jurisdiction on the basis of the valuation of goods and services
payable as consideration, unlike the 1986 Act where, pecuniary jurisdiction was determined by
the value of the goods and services as well as the compensation sought, therefore not escalating
the amount of compensation claimed to bring the complaint within the pecuniary jurisdiction
of State or National Commission.

For determining the value of the complaint, the aggregate value of the goods or services and
compensation claimed by the complainant. This was held in the case of “M/s Pyaridevi
Chabiraj Steels Pvt. Ltd. v. National Insurance Corporation Ltd.

3. Alternate Dispute Resolution– Another crucial redressal mechanism incorporated by the

2019 Act, is the alternate dispute resolution in the form of mediation. This is done to ensure
speedy resolution of disputes and is less expensive. As per the 2019 Act, the complaint may
be referred to mediation after the admission of the complaint or at the first hearing or at any
time before the dispute is resolved. The forum shall refer the matter to mediation with the
written consent of both the parties, furnished within 5 days.
To this effect, the new act incorporates the establishment of a consumer mediation cell by the
respective State Government in each district and state as well as at the national commission by
the central government and be attached to the forums.
It is based on the principles of natural justice.

4. E-Complaints– The 2019 Act also includes the filing of Complaints before the District
Forums electronically. The rules regarding this are yet to be prescribed by the Government.
This was done to tackle problems related to the increase in digitalisation.

The offences and penalties listed under this Act are mentioned as follows.

1. Punishment for false and misleading advertisements: Under Section 89 of the

Act any manufacturer or service provider who promotes false or misleading
advertisements will be punished with imprisonment for a term that may extend to
two years and with fine that may extend to ten lakh rupees.
2. Punishment for manufacturing, selling, distributing products containing
adulterants: Under Section 90 of the Consumer Protection Act, 2019 any person
who sells, manufactures, distributes products containing adulterants shall be
penalised in case of the following circumstances;

 If the adulterated product does not cause any injury to the consumer then the term
for imprisonment will extend to a period of six months and fine which may extend
to one lakh rupees,
 If the product containing adulterant causes injury not amounting to grievous hurt
then the term for imprisonment will extend to a period of one year and fine which
may extend to three lakh rupees,
 If the product containing adulterant causes injury amounting to grievous hurt then
the term for imprisonment will extend to a period of seven years and fine which may
extend to five lakh rupees,
 If the product results in causing death to the consumer then the term for
imprisonment will be for a period of seven years which may extend to life
imprisonment and fine not less than ten lakh rupees.

3. Punishment for manufacturing, selling, and distributing spurious

products: Section 91 states that any person who sells, manufactures, or distributes
spurious products shall be punished for such acts.
How do consumers benefit from Consumer Protection Act, 2019
The Consumer Protection Act, 2019 is a significant piece of legislation brought as it is
beneficial for the consumers. The Act widens the scope of protection regarding the rights and
interests of consumers.

1. Unfair contracts: The Act introduced ‘unfair contract’ under Section 2(46) of the
Act, which includes contracts requiring excessive security deposits to be given by
the consumer for the performance of contractual obligations. However, the inclusion
of unfair contracts in the Act would enable the consumer to file complaints in such
cases and would also keep the fraudulent businesses in check.
 2. Territorial jurisdiction: The Act enables the consumers to file complaints where
the complainant resides or personally works for gain thus it would benefit the
consumers in seeking redressal for their grievances when their rights have been
violated.
3. False and misleading advertisements: The Act defines the term ‘false and
misleading advertisements’ and also lays down strict penalties for such acts or
omissions.
4. Product liability: The term ‘product liability’ has been defined by this Act, which
states that it is the duty of the product manufacturer, service provider or seller to
compensate for any harm caused to a consumer by such defective product
manufactured or service provided to the consumer.
5. Mediation and alternative dispute resolution: The Act enables the consumer to
opt for mediation and alternative dispute resolution mechanisms for speedy and
effective settlement of consumer disputes.
6. E-filing of complaints: The Act also facilitates e-filling of the complaints and
seeking video conference hearings by the Commission. Thus, providing convenient
means for the consumers to voice their grievances.
Landmark case laws

Horlicks Ltd. v. Zydus Wellness Products Ltd. (2020)

In this case, both parties are manufacturers of nutritional drinks, however, Zydus advertised a
television commercial trivialising the products of Horlicks Ltd. The commercial was being
telecasted in various languages including English, Tamil and Bengali. Therefore, the Delhi
High Court relied on various judgments on misleading advertisements, disparagement and law
governing the publication of advertisements on television and held that the advertisement is
disparaging as it does not provide any concrete proof regarding the quality of the product.
Further, electronic media leaves an impression on the minds of the viewers thus, these types of
advertisements would not only be detrimental to the consumers but also the complainant would
suffer irreparable damage.

A famous judgement relied on by Delhi High Court while deciding this case is Pepsi Co. Inc.
v. Hindustan Coca Cola Ltd., 2003 where the Delhi High Court held that there are certain
important factors that are to be kept in mind in case of disparagement which are; manner of the
commercial, intent of the commercial and storyline of the commercial.

Veena Khanna v. Ansal Properties & Industries Ltd, NCDRC (2007)

In this case, the complainant offered to purchase a flat from the respondent which the
respondent agreed to deliver on 1.6.1999 through a letter. However, the flat was not constructed
within the specified date and hence it was not delivered. For such deficiency in services, the
complainant demanded the refund of the deposited amount with interest at the rate of 18% pa
which was refused by the opposite party.
The National Commission observed that due to delays in construction and delivery of
possession it is quite difficult for a consumer to purchase a flat at market price. The National
Commission stated that it is the duty of the State Commission to direct the builders to deliver
the possession of the flat as soon as it is completed and the complainant should be awarded
suitable compensation for the delay in construction. The complainant just claimed the refund
amount before the State Commission, but the case was pending before the commission for five
years and during that time there was a tremendous rise in the market prices of the immovable
property. The National Commission further stated that it was the duty of the State Commission
to direct the respondents to deliver the possession of the flat or any other flat of equivalent size
to the complainant with appropriate compensation, due to the delay in delivering the possession
within the specified time. Or, adequate compensation ought to have been provided to the
complainant so that they could purchase a new flat of the same size at the prevailing market
rate in that same locality.

Sapient Corporation Employees v. Hdfc Bank Ltd. & Ors. (2012)

In this case, a consumer complaint was filed by Sapient Corporation Employees Provident
Fund Trust against HDFC bank Ltd. The complainant claimed that OP-Bank has committed
deficiency of services by debiting the account of the Complainant. The court in this case held
that there was no deficiency of service on the part of OP-bank and the arguments contented by
the complainant are baseless. A behaviour that conforms to the direction of regulatory authority
cannot be said to be negligence or service deficiency.

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