Theme: Consumer Protection

The consumer protection law specifies relevant authorities and complaint forums^{(( Chapter IV, Consumer Protection Act, 2019.))} that a consumer can approach if their rights^{(( Section 2(9), Consumer Protection Act, 2019.))} as a consumer are violated. There are three Consumer Disputes Redressal Commissions, at the district^{(( Section 28, Consumer Protection Act, 2019.))}, state^{(( Section 42, Consumer Protection Act, 2019.))}, and national level^{(( Section 53, Consumer Protection Act, 2019.))}. All these forums have the duty to hear the concern of a consumer and ensure that every concern is given due importance^{(( Section 2(9)(iv), Consumer Protection Act, 2019.))}. The jurisdiction of these Commissions is based on:

1. The value (price) of the goods or services availed
2. The place of residence of the consumer or seller, or the workplace of one of the parties, or where the dispute began
3. The place where the person filing the complaint^{(( Section 2(5), Consumer Protection Act, 2019.))} resides

Complaints must be filed within 2 years since the dispute arose, to be admitted for a hearing at the Consumer Dispute Redressal Commissions^{(( Section 69(1), Consumer Protection Act, 2019))}. The Complaint Redressal Commissions that can be approached for consumer rights violations and the type of matters adjudicated by them are as follows:

District Consumer Disputes Redressal Commission (DCDRC)

The District Commission is a district-level complaint redressal forum that looks into complaints about goods whose value is below Rupees one crore^{(( Section 35(1)(a)(i), Consumer Protection Act, 2019.))}. The Commission accepts or rejects a complaint within a period of 21 days. If the commission does not respond in the specified time, the complaint will be accepted and looked into by the District Commissions^{(( Section 36(2), Consumer Protection Act, 2019.))}. Before rejecting a complaint, the commission must give the complainant the opportunity to be heard. The Commission has the power to order for the removal of any problems or defects from the goods or services availed, or it can order a payment of fine^{(( Section 39, Consumer Protection Act, 2019.))} as a relief to the complainant. The parties to a case also have the option to file an appeal against the order of the District Commission to the State Commission within 45 days of the District Commission order^{(( Section 41, Consumer Protection Act, 2019.))}. You can find details of the district commissions given in the National Consumer Redressal website.

State Consumer Disputes Redressal Commission (SCDRC)

The State Commission is a state-level complaint redressal forum located at the capital^{(( Section 42(2), Consumer Protection Act, 2019.))} of the respective state where complaints with respect to goods having value between Rupees 1 crore to 10 crores can be filed. There are about 35 state commissions in the country where complaints, appeals from the District Commission, and cases about unfair contracts are heard^{(( Section 47(1), Consumer Protection Act, 2019.))}. An appeal against the decision of the State Commission can be filed with the National Commission, within 30 days from the date of the order^{(( Section 51, Consumer Protection Act, 2019.))}. Once such an appeal is filed, it is required to be decided within 90 days by the National Commission^{(( Section 52, Consumer Protection Act, 2019.))}.

National Consumer Disputes Redressal Commission (NCDRC): 

The National Commission is the upper-most authority for consumer complaints redressals. It is located at New Delhi^{(( Section 53(2), Consumer Protection Act, 2019.))}. Complaints about goods or services whose value is above Rupees 10 crores, and appeals against the orders of the State Commission or the Central Consumer Protection Authority, can be filed with the NCDRC^{(( Section 58(1), Consumer Protection Act, 2019.))}. An appeal against the decision of the National Commission can be filed with the Supreme Court within a period of 30 days from the date of the order passed^{(( Section 67, Consumer Protection Act, 2019.))}. The orders of the Commission are published on its website. The Commission has the legal right to publish the orders and no proceedings can be brought against the Commission for publishing these orders^{(( Rule 12(8), Consumer Protection (Consumer Disputes Redressal Commission) Rules, 2020.))}. The National Commission portal also provides video instructions pertaining to registration and filing of an electronic complaint through its forum.

Time for deciding complaints

A consumer complaint must be decided by the Commissions within a period of 3 months. This may be extended to 5 months in case there is a requirement for testing of the products/defects^{(( Section 38(7), Consumer Protection Act, 2019.))}.

Appeals for orders passed by Commissions

The order passed by the Commissions are final if they have not been appealed in the specified period of time^{(( Section 68, Consumer Protection Act, 2019.))}. This rule has exceptions, as the Commission can accept cases for which appeals were not filed in the prescribed time.  Besides these provisions, the cases can be transferred from one district commission to another and from one State Commission to another by the State¹ and National Commissions^{(( Section 62, Consumer Protection Act, 2019.))} respectively, if and when the parties apply.

A consumer who has filed a complaint with any of the forums given above, can track their case through the Online Case Status portal. You can ask your lawyer for details of your case number for tracking the case^{(( Rule 7(2), Consumer Protection (Consumer Dispute Redressal Commissions) Rules, 2020.))}.

 

1. Section 48, Consumer Protection Act, 2019. [↩]

Consumers can also complain against unfair trade practices involving digital and other products bought through e-commerce platforms and retailers. Any person who owns, operates or manages any digital or electronic platform offering goods or services for sale, is an e-commerce entity. An e-commerce entity is separately governed by e-commerce rules^{(( Consumer Protection (E-Commerce) Rules, 2020.))} in India.

These rules are only applicable to professional and commercial businesses and not for an individual acting in their personal capacity^{(( Proviso to Rule 2, Consumer Protection (E-Commerce) Rules, 2020))}. For instance, a consumer can complain against Amazon as it is an e-commerce entity regularly engaged in the activity of sale of goods through its e-commerce website. However, if there are issues with a product on a platform like Amazon, Amazon would be held liable for product liability actions, not the product manufacturer.

Interestingly, the product liability for an e-commerce entity extends beyond India. This means that these platforms are equally liable under the consumer protection law, in addition to their own country’s domestic laws^{(( Rule 2(2), Consumer Protection (E-Commerce) Rules, 2020.))}. For instance, a foreign e-commerce entity such as Liyid delivers its products in India; in case of any harm caused due to defective products, a product liability action can be brought against Liyid in India and in the foreign country.

Liabilities of e-commerce platforms

E-commerce platforms are held liable for the following:

• Price manipulations on their sites,^{(( Rule 4(11)(a), Consumer Protection (E-Commerce) Rules, 2020.))}
• Negligence in services provided and discrimination against customers^{(( Rule 4(11)(b), Consumer Protection (E-Commerce) Rules, 2020.))}.
• Misleading advertisements, unfair trade practices^{(( Rule 4(3), Consumer Protection (E-Commerce) Rules, 2020))} and inaccurate descriptions/information of products.
• Refusing to refund or return a defective product^{(( Rule 7(4), Consumer Protection (E-Commerce) Rules, 2020))}.
• Failure to provide warnings or instructions with respect to the goods or services availed by a customer^{(( Section 85(c), Consumer Protection Act, 2019))}.
• False descriptions, and violations about the authenticity and images of the goods or services advertised for sale on their platform^{(( Rule 5(2), Consumer Protection (E-Commerce) Rules, 2020))}.

However, they will not be liable if the dangers of the product are common knowledge. For example, if a consumer misuses or alters a dangerous product like flamethrowers then the e-commerce entity cannot be held liable for this^{(( Section 87(1), Consumer Protection Act, 2019))}.

Complaining to E-Commerce Platforms

E-commerce platforms must establish a ‘Grievance Redressal Mechanism’ and should appoint a ‘Grievance Officer’ for Indian customers to get their concerns addressed^{(( Rule 4(4), Consumer Protection (E-Commerce) Rules, 2020))}. The details about the Grievance Redressal Mechanism must be displayed on the e-commerce platform. The Grievance officer must acknowledge the complaint within 48 hours and address the concern within a period of one month^{(( Rule 4(5), Consumer Protection (E-Commerce) Rules, 2020))}.

 

A complaint^{(( Section 2(6), Consumer Protection Act, 2019))} can be filed electronically to the Integrated Grievance Redressal Mechanism portal (INGRAM), or offline with the consumer protection authorities such as district or state commissions to seek relief for consumer rights violations. Further there are helplines as well as phone based applications one can use to register complaints. If the complaint is not resolved, you can take the help of a lawyer to approach the consumer forums as the next step.

Complaint Process: Telephone 

 

Step-1: Check if you are a Consumer under the law

The complainant should be a consumer or an association of consumers^{(( Section 35(1), Consumer Protection Act, 2019))}.

Step-2: Call the Helpline Number

Consumers can call the National Consumer Helpline: 1800-11-4000 or 14404 to register a complaint, except on national holidays. Alternatively, complaints can also be registered through SMS on + 91 8130009809.

Step-3: Give details about the Complaint

Name, contact details and address of the complainant and the seller must be mentioned to the helpline authority, along with the details of the complaint. The authority will register your complaint and give you a Unique Grievance ID.

Step-4: Track your Application

The grievance is then forwarded to the concerned seller, company, regulator, or authority for action. The action taken is updated against each grievance. Your grievance can be tracked with your Grievance ID by calling the helpline or through the Integrated Grievance Redressal Mechanism portal.

Step-5: Resolution of complaint

If your complaint is not resolved, then you can initiate a legal process by approaching the relevant Consumer Forum. The helpline authority can help in clarifying any doubts that you may have about the legal procedure.

E-Complaint Process: Internet (INGRAM Portal)

The Department of Consumer Affairs has launched a portal known as the Integrated Grievance Redress Mechanism (INGRAM) for bringing all stakeholders such as Consumers, Central and State Government Agencies, Private Companies, Regulators, Ombudsmen and call centres etc. onto a single platform. The portal will also help in creating awareness among consumers to protect their rights and inform them of their responsibilities. Consumers can register their grievances online through this portal.

Step-1: Check if you are a consumer under the law

The complainant should be a consumer under the law, meaning someone who is a consumer of a product or an association of consumers.

Step-2: Register on the INGRAM Portal

The complainant must register themselves as a consumer on the INGRAM portal. The complainant must fill in the required details and documents^{(( Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020))}to register their complaint, such as name and address of the complainant and the seller, the facts of the dispute and the relief that the complainant seeks^{(( Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020))}. A one time registration is required for lodging a grievance. For registration, go to the web portal http://consumerhelpline.gov.in and click on the login link. Sign up giving the details required, and verify through your email. The user id and password are created. Using this user id and password, enter the portal and fill in required details of the grievance, attaching necessary documents (if available).

Step-3: Pay the Fee

The complainant must pay the fee^{(( Section 35(2), Consumer Protection Act, 2019))}(if applicable) for complaint registration through digital payment mode, or apps like BHIM App, UMANG App to the respective Consumer Commissions in accordance with the value of the goods^{(( Rule 7(2), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020))}.

Step-4: Track your Application

Every grievance is registered and a Unique Grievance ID is issued. The grievance is forwarded to the concerned company, regulator, or authority for action. The action taken by them is updated against each grievance. The grievances filed can be tracked through the INGRAM portal.

Consumer Courts/Forums

Through the INGRAM portal, efforts are made to ensure that the grievance is redressed by taking up with the authorities concerned, which may be a company, ombudsman etc. However, if the issue is still pending, a consumer has a choice to approach the appropriate consumer court or forums with the help of a lawyer. Only complaints that are filed within 2 years since the dispute arose will be admitted for a hearing at the Consumer Dispute Redressal Commissions.

 

Every complaint^{(( Section 2(6), Consumer Protection Act, 2019.))} filed under the consumer protection law must be accompanied with a nominal fee that is payable in the form of a demand draft of a nationalized bank or through a postal order^{(( Rule 7(1), Consumer Protection (Consumer Complaint Redressal Commissions) Rules, 2020))}, or in electronic form^{(( Section 35(2), Consumer Protection Act, 2019))}. The fee structure based on the value of goods or services is given below^{(( Section 35(2), Consumer Protection Act, 2019))}:

 

Fee payable to the District Consumer Disputes Redressal Commission:

 

 

Fee payable to the State Consumer Disputes Redressal Commission:

 

Fee payable to the National Consumer Disputes Redressal Commission:

 

 

An important thing to note is that the fees so collected goes to the Consumer Welfare Fund, at the State level or the National level, as the case may be. Where such Fund does not exist, it is directed to the State Government^{(( Rule 7(2), Consumer Protection (Consumer Complaint Redressal Commissions) Rules, 2020))}. The fee is utilized towards the continuation of consumer welfare projects.

 

The Central Consumer Protection Authority has the power to penalize an individual or entity for violating consumer rights. This is ensured through various means such as fines, taking back the defective goods^{(( Section 20(a), Consumer Protection Act, 2019))}, reimbursements for such goods/services^{(( Section 20(b), Consumer Protection Act, 2019))}, or discontinuation of unfair trade practices^{(( Section 20(c), Consumer Protection Act, 2019))}.

Punishments for false or misleading advertisements

The manufacturer, advertiser or endorser is liable for false or misleading advertisements. However, the endorser’s liability in these cases only arises when they have not done their research^{(( Section 21(5), Consumer Protection Act, 2019))} before endorsing such an advertisement. The punishment is:

• For the first offence: A fine which may extend up to Rs. 10 lakh and jail time up to 2 years^{5(( Section 89 & Section 21 (2), Consumer Protection Act, 2019))}.
• For every repeat offence: A fine which may extend up to Rs. 50 lakh and jail time up to 5 years may be awarded^{(( Section 89 & Section 21 (2), Consumer Protection Act, 2019))}.
• The Central Authority can also prohibit them from endorsing any product for up to 1 year. In case of subsequent offences, it can be extended up to 3 years^{(( Section 21(3), Consumer Protection Act, 2019))}.
• Failure to comply with these directions of the Central Authority can result in jail time for up to 6 months or a fine extending to Rs. 20 lakh^{(( Section 88, Consumer Protection Act, 2019))}.

 

Punishments for sale of adulterated products

Any action of the manufacturer or retailer involving the sale, import, storage or distribution of adulterated food is punishable. The following punishments apply:

• When there is no injury^{(( Section 2(23), Consumer Protection Act, 2019))} to the consumer, like any kind of pain or death, jail time for up to 6 months and a fine of up to Rs. 1 lakh may be granted^{(( Section 90(1)(a), Consumer Protection Act, 2019))}.
• When the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be granted^{(( Section 90(1)(b), Consumer Protection Act, 2019))}.
• When there is grievous hurt to the consumer, jail time for up to 7 years and a fine of up to Rs. 5 lakhs may be granted^{(( Section 90(1)(c), Consumer Protection Act, 2019))}.
• When the adulteration has caused the death of the consumer, jail time for not less than 7 years and extending up to life, and a fine of not less than Rs. 10 lakhs may be granted^{(( Section 90(1)(d), Consumer Protection Act, 2019))}.

Additionally, the Consumer Authority may suspend the license of the manufacturer for up to 2 years, when it is the first offence or cancel the license of such manufacturer altogether if the offence is repeated^{(( Section 90(3), Consumer Protection Act, 2019))}.

Punishments for sale of spurious goods

Spurious goods are those which are falsely claimed to be genuine^{(( Section 2(43), Consumer Protection Act, 2019))} or are fake or imitative of real, original goods. These are often of inferior quality and infringe upon the trademarks and copyrights of legal owners of the original goods. A crucial example is that of medicines or cheap make-up products found in local markets. Any action of the manufacturer involving the sale, import, storage or distribution of these goods, is punishable as follows:

1. If the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be awarded^{15(( Section 91(1)(a), Consumer Protection Act, 2019))}.
2. When such spurious goods cause grievous hurt to a consumer, jail time up to 7 years and a fine up to Rs. 5 lakhs may be awarded to the manufacturer^{16(( Section 91(1)(b), Consumer Protection Act, 2019))}.
3. When the good bought has caused the death of a consumer, jail time for a minimum period of 7 years extending up to life jail time and a minimum fine of Rs. 10 lakhs may be awarded^{17(( Section 91(1)(c), Consumer Protection Act, 2019))}.