CRITICAL EVALUATION OF CONSUMER

PROTECTION AND AWARENESS OF CONSUMER

RIGHTS IN INDIA

SUBJECT: LAW OF TORTS

SUBMITTED TO:
PROF. TWINKLE MAHESHWARY
KIRIT P. MEHTA SCHOOL OF LAW,
NMIMS (DEEMED TO BE UNIVERSITY)

SUBMITTED BY:
MANSHA KATHURIA
(DIVISION F, BBA LLB)

SAP ID: 81022100371

ROLL NO: F021
 INTERIM REPORT (Marks Scored: 4/5)

INTRODUCTION

In every society, the consumer remains the centre of gravity of all business and industrial
activities. In India, in view of the ever-increasing population and the consequent need for
many goods and services of which there is no matching supply, the need for consumer
protection is crucial. Every country needs to protect the rights of their consumers. However,
it cannot be ignored that in every country, there are parts of the population who are not aware
of their rights as a consumer. A consumer is to be protected from unsafe products, poor
quality of goods and services, high prices, unfair trade practices and misleading
advertisements. Therefore, it is necessary for an awareness to prevail amongst the consumer
to protect them from unscrupulous trade practices and to give them the idea of the utility of
money spent by them.

AIM AND OBJECTIVE

The aim of this research work is to determine the legal action taken by the Indian government
to safeguard consumers and the legal remedies available under the Consumer Protection Act
and also to determine the extent and methods of consumer awareness in India.

RESEARCH QUESTIONS

 What are the measures taken by Indian government to protect consumers and their
rights?
 What are the legal remedies available for Consumer Protection Act?
 What was the case law of Sehgal School of Competition v. Dalbir Singh in reference
to consumer protection?
 What are the ways and level of consumer rights awareness in India?

RESEARCH OBJECTIVES
  To evaluate various measures taken by the Indian government to protect the
consumers and their rights.
 To determine the legal remedies available for Consumer Protection Act.
 To examine case law of Sehgal School of Competition v. Dalbir Singh in reference to
consumer protection.
 To examine the ways and level of awareness of consumer rights in India.

RESEARCH METHODOLOGY

The research methodology followed in writing this research work is secondary research. The
data has been collected from secondary resources which already exist in published form
which includes published materials, books, reports, magazines, websites, newspaper and
other relevant publications. The flow of research before beginning to write this paper is:
comprehending basic rights of consumers in India; understanding the link between law of
torts and consumer protection; acknowledging the constitutional perspective of consumer
protection; evaluating case studies based on consumer protection; analysing schemes
launched by government to increase awareness among citizens on consumer rights. The
books referred in the paper were Ratanlal and Dhirajlal's: The Law of Torts and A.K. Jain’s
Law of Torts. Also, websites like SCC, Indian Kanoon, Bar and Bench and Livelaw were
looked up.

RESEARCH PAPER

INTRODUCTION

In today's socioeconomic environment, we discover that the customer is a victim of a number

of immoral and unfair business practices. The reason for this is that the consumer is unaware
of the situation. In today's large-scale economy, where there is minimal interaction between
manufacturer and customer, sellers frequently make exaggerated promises that they do not
plan to follow through on. This puts the customer in a tough situation with few options for
redressal. Sometimes salesmen want to generate excessive profits at the expense of the safety
and health of their customers. The concept of consumerism was initially conceptualised in the
United States around the year 1900. Consumerism is a global phenomenon. It is a relatively
new social movement dedicated to the protection and preservation of consumer's interests.1
The consumer who was once the ‘king of the market’ has become the victim of it. There has
been a significant expansion in business and trade as a result of globalisation and
development in International Trade and Commerce, resulting in a diversity of consumer
goods and services to meet the demands of customers. In recent years, there has been a
greater public concern over the consumer protection issues all over the world. In the early
law, the doctrine of caveat emptor (let the buyer beware) was the philosophy of the law of
sales. Today it has been replaced by “let the seller beware”. In India, consumers are
inevitably confronted with the lack of efficient and timely mechanism for redressing their
problems in the marketplace. The legal system in India provides some remedies for the
consumers’ problems. The government, several non-governmental groups, and activists have
all taken steps to improve consumer education and awareness in the country. The government
has attempted to protect the interests of consumers by legislation from time to time, and the
CPA 1986 is widely regarded as the most advanced consumer protection regulation.2

REVIEW OF LITERATURE

Singh, K. J., Lehkar, M., & Patti, S. (2017) in their study ‘Awareness of Consumer Rights: A
Comparative Study’ have compared the level of awareness of consumer rights in big
metropolitan cities and rural areas of India. The study covers five factors, i.e., Cash Memo,
MRP, Standardization Mark, Expiry Date and Quantity Check, which were considered by the
consumers while purchasing the goods or services. It was primary research and the relevant
data was analysed to examine the impact of geographical location and occupation. A
standardised questionnaire was used to perform the study, which included a survey of
respondents. The research emphasises the urgent need for rural consumers to be empowered.

PROTECTION OF CONSUMER IN INDIA

1
Kumar, N., Rao, D. N., Narayana, M. S., & Narasaraopet, G. (1999). Consumer Protection in India.
Himalaya Publishing House.
2
Chatterjee, A., & Sahoo, S. (2011). Consumer protection: Problems and prospects. Postmodern
Openings, 7(9), 157-182.
The Indian government has been careful and aware in combating traders' nefarious
inclinations to harm and defame the interests of ordinary people. The following
legislations provide adequate insight into the government's attempts to protect consumers
against fraud in several industries3-

1. The Consumer Protection Act 1986: This Act was enacted for better protection of
the interests of consumers, and it included provisions for the formation of
consumer councils and other bodies for the resolution of consumer disputes and
other related topics.

2. Indian Contract Act, 1972: This law specifies the terms under which the parties
commit to deliver services to one other and agree on particular terms. A contract
is formed that is binding on both parties. They safeguard the interests of the
parties by ensuring that the contract is not broken and, if it is, that payment is
paid.

3. The Sales of Good Act, 1930: This act provides safeguard and relief to customers
in case goods are not complying with the expressed conditions and warranty.

4. The Essential Commodities Act 1955: This legislation was enacted to regulate the
production, distribution, and supply of essential commodities. It keeps inflation
under control and maintains a constant and equitable supply of these items. It also
keeps an eye on black marketing and hoarding.

5. The Prevention of Food Adulteration Act, 1954: This act ensures the integrity of
food products as well as the health of customers who may be harmed by
contaminated products.

3
Indian government innovative and magnificent steps towards consumer awareness, education
and protect. Legal Service India - Law, Lawyers and Legal Resources. (n.d.). Retrieved
December 22, 2021
 6. The Standards of Weights and Measures Act, 1976: The Standards of Weights and
Measures Act protects the right against the goods which is underweight or under
measured.

7. The Competition Act, 2002: The Competition Act, which superseded the
Monopolies and Restrictive Trade Practices Acts, was enacted to penalize
companies who engage in such practises, which impede market competition.

8. The Bureau of Indian Standards Act, 1986: This act ensures about the quality of
the product to be used by the consumer and have introduced BIS Mark to certify
the quality of the product and have set up grievance cell which can take
complaints regarding the quality of the product.

9. The Agricultural Produce (Grading and Marking) Act, 1937: To implement the
grading standard and hence monitoring the same whether standard checks are
been done to issue the grading. In this, AGMARK is the standard introduced for
agricultural goods.

RIGHTS OF A CONSUMER UNDER CONSUMER PROTECTION ACT,

19864

1. Right to safety: It is the consumer's right to be protected from goods and

services that endanger his or her health, life, or property. Consumers have the
right to safety against loss caused by such products.
2. Right to be Informed/ Right to Representation: The consumer also has the
right to get all of the information on which he bases his decision to purchase
products or services. As a result, the manufacturer must communicate all of
the information in a timely way so that the consumer is not deceived.
3. Right to choose: The consumer has complete freedom to purchase the items or
services of his choosing from the market's many offerings. A seller cannot
influence his choice in an unfair manner. Any seller who does so will be
considered to be interfering with the consumer’s freedom to choose.

4
Consumer Protection Act, 1986
 4. Right to be heard: If a customer is unhappy with a product they have
purchased, they have the right to make a complaint. And the complaint must
not go unanswered; it must be addressed in a timely manner.
5. Right to Seek redress: This compensates customers who have been victimised
by a seller's unscrupulous business practices.
6. Right to consumer education: Consumers must be aware of the rights they
enjoy against the loss the suffer on account of goods and service purchased by
them.

REMEDIES AVAILABLE TO CONSUMERS UNDER CONSUMER

PROTECTION ACT, 1986

1. Removal of Defects: If the product is shown to be faulty following

adequate testing, the authority responsible might issue an order to "remove
it’s defects."
2. Replacement of Goods: Orders can be passed to replace the defective
product by a new non-defective product of the same type.
3. Refund of Price: Orders can be passed to refund the price paid by the
complainant for the product.
4. Award of Compensation: If a customer suffers a physical or other damage
as a result of the seller's carelessness, recompense for that loss can be
sought.
5. Removal of Deficiency in Service: If there is any deficiency in delivery of
service, then orders can be passed to remove that deficiency.
6. Discontinuance of Unfair/Restrictive Trade Practice: If a complaint is filed
against unfair/restrictive trade practice, then under the Act that practice
can be banned with immediate effect.
7. Stopping the Sale of Hazardous Goods: The sale of products that are
potentially life-threatening can be halted.
8. Withdrawal of Hazardous Goods from the Market: Hazardous items can be
withdrawn from the market if substantial negative impacts on consumers
 are observed. The goal is to ensure that such items are not available for
purchase.5

CASE ANALYSIS - Sehgal School of Competition v. Dalbir Singh 6

Facts of the Case: Dalbir Singh, the respondent, filed a case against the appellant Sehgal
School of Competition v. Dalbir Singh in Janaki Puri, New Delhi District Forum. The
complainant enrolled in Sehgal School for two years to prepare for the Medical Entrance
Examination. Lump-sum fees of Rs. 18734/- was deposited on 7-7-2005 and 7-10-2005 in
two installments, that is, the entire fee was deposited within six months. However, the
complainant believed that the teaching was oriented towards engineering and not up to par for
medical aspirants halfway through the programme. He decided to stop wasting his time and
dropped out of the coaching programme. He wanted a refund for the remaining one-year
charge, which the academy refused. He subsequently sought relief before the district forum.

Issues:

1. Whether the complainant should be refunded the balance fees for the remaining
year.
2. Whether coaching institutes claiming that the condition imposed by them that
‘refundability/transferability of seat/fee is not possible under any circumstances’
holds any merit.

Judgement: The district forum directed the petitioner to refund half of the fees to Dalbir
Singh to the tune of Rs. 18, 734. However, he received no remuneration for the mental
anguish, legal costs, or harassment that drove him to the district forum. The district forum
further held that they did not find any merit in the appeal by the petitioner and dismissed it.
Since higher compensation was not asked for by the respondent, no order was passed for the
same.

CONSUMER AWARENESS IN INDIA

5
9 essential remedies available to consumers under Indian Consumer Protections Act. Your
Article Library. (2014, February 24). Retrieved December 22, 2021

6
Sehgal School of Competition vs Dalbir Singh on 10 December, 2008
Consumer rights awareness is critical in today's environment, since they are often exploited
in the marketplace. most of the consumers are unaware about consumer rights due to
illiteracy, poverty, unemployment, demographic factor etc. The act of ensuring that a buyer
or customer is aware of information regarding products, commodities, services, and consumer
rights is known as consumer awareness.7 Consumer knowledge is critical in order for buyers
to make the best selection possible. The customer has a certain amount of duty to bear, since
an informed consumer may assist other consumers combat unfair practices or become aware
of them. Consumers have a right to all information and should be made fully informed of the
government's rights and duties. The most pressing issue that our government must address is
a lack of consumer awareness. It is important to emphasise that consumer awareness
encompasses more than just consumer rights. Many people throughout the world have been
engaging in thoughtless and wasteful purchase as a result of their financial power. This has
divided the society into rich consumers and the poor.8 Consumers also need to act more
responsibly and join hands with the government. consumer also must be aware while buying
goods and services by way of checking MRP and Expiry date to protect themselves from
exploitation and unfair trade practices. The rural consumers in India are generally ignorant
and illiterate. So, they are exploited by the manufacturers, traders and service providers.
Rural consumers face problems like fake brands, spurious products, lack warranties and
guarantees, imitation, unreasonable pricing, lack of varieties and so on. There is a need for
spreading consumer awareness in the rural areas more seriously. Jago Grahak Jago (Wake Up
Customer) is a consumer awareness program launched in 2005 by the Department of Food
under the government of India. The Government of India used various channels to create
awareness among consumers.

RECOMMENDATIONS AND SUGGESTIONS

For commercial organisations to succeed, they must have a pleased customer base.
Simultaneously, the usage of information and communication technology in India must
address consumer concerns. Consumer rights and complaints must be handled in a clear,
efficient, and hassle-free way in an online context. We need to capitalise “collective

7
Singh, K. J., Lehkar, M., & Patti, S. (2017). Awareness of Consumer Rights: A Comparative
Study. Ramanujan International Journal of Business and Research, 2, 75-84.
8
Bhattacharyya, M. R. (2014). An Analysis on the Various Aspects of Consumer Protection in
India. International Journal of Research, 1(6), 1-25.
expertise” and an “ideal public private partnership” base in India to effectuate consumers
rights in India. The government should develop and enforce harsher punishment measures so
that manufacturers and shopkeepers think twice about engaging in deceptive activities. It is
vital to highlight that, despite the fact that the government has spent a significant amount of
money to raise awareness, the procedural aspect is not depicted in those advertising.
Consumers should be educated about the procedure for submitting a complaint through
special commercials regarding where should a complaint be filed, when should it be filed,
and so on. Consumer associations should also step forward to work more to educate
consumers and empower them to speak out against exploitation.

CONCLUSION

Consumers are not only the greatest economic group, but also the pivots of all economic
operations, as is self-evident. As a consumer, you must be aware of your rights and the
remedies available if those rights are violated. Only when customers in a country are adamant
about standing up for their rights will sellers and manufacturers take precautions to guarantee
that they are never embroiled in disputes over violations of consumer rights. 9 With a recent
change to consumer social legislation, it is now simpler than ever to call out sellers and
manufacturers' faults and unethical practices. It is now our responsibility as customers to
safeguard our own well-being. The phrase caveat emptor (buyer beware!) may have been
declared outdated by the new legislation, but it can only genuinely be rendered obsolete if we
exercise the rights that have been granted to us.10

REFERENCES

1. Selvi, V. D. Critical Evaluatiion of Awareness of Consumer Rights and

Protection.
2. Devi, P. U. M., & Rao, B. S. (2016). Consumer Protection Awareness-Role of
Education. Universal Journal of Industrial and Business Management, 4(4), 97-
103.
9
Chatterjee, A., & Sahoo, S. (2011). Consumer protection: Problems and prospects. Postmodern
Openings, 7(9), 157-182.
10
Venkatesan, D., & Leelavathi, R. (2020). A study on Consumer Rights Awareness among Rural
consumers–A study in Rural Areas with special reference to Chegam Block of Tiruvannamalai
District.
3. Khan, N. U., & Nadeem, M. (2017). Legal Empowerment of Society and
Redressal Mechanisms about Consumer's Grievances-A Critical Evaluation of the
Punjab Consumer Protection Act 2005. JL & Soc'y, 48, 1.
4. Kumar, N., Rao, D. N., Narayana, M. S., & Narasaraopet, G. (1999). Consumer
Protection in India. Himalaya Publishing House

5. Chatterjee, A., & Sahoo, S. (2011). Consumer protection: Problems and prospects.
Postmodern Openings, 7(9), 157-182.
6. Singh, K. J., Lehkar, M., & Patti, S. (2017). Awareness of Consumer Rights: A
Comparative Study. Ramanujan International Journal of Business and Research, 2,
75-84.
7. Bhattacharyya, M. R. (2014). An Analysis on the Various Aspects of Consumer
Protection in India. International Journal of Research, 1(6), 1-25.
8. Reform, D. F. W. S. (2010). Consumer Protection Act. Public Law, 111, 203.
9. Ratanlal and Dhirajlal's: The Law of Torts ISBN-10: 8180389855