Safeguarding 21st Century Consumers: Navigating the

Modern Landscape for Consumer Protection

Lochana Hegde
School of Law
CHRIST (Deemed to be University) – Pune Lavasa Campus, Lavasa, India

Abstract –

The Consumer Protection Act of 2019 defines a consumer in Section 2(7) as someone who buys any good or
receives any service for a consideration that has been paid, promised, partially paid, and partially promised,
or under any system of deferred payment and includes any user of those goods or recipient of those goods and
services who is not the person who purchases those goods for the consideration that has been paid, promised,
partially paid, and partially promised, or under any system of deferred payment when those uses or services
are obtained with that person's consent, but does not include those who does.

Purpose - To provide a strong and thorough framework for defending the rights and interests of consumers,
the Indian government drafted the Consumer Protection Act of 20191. The Act was passed to identify the
shifting market functions as well as the different difficulties that customers have while interacting with
retailers and providers of services. Laws that protect consumers work to level the playing field between
customers and producers. They make sure that customers receive fair treatment and further safeguard them
against unfair, dishonest, and deceptive business practices. Consumers frequently lack the knowledge and
experience that corporations do. By mandating companies, producers, and firms to disclose precise and
straightforward details about their goods, services, prices, terms, and conditions, consumer protection laws
seek to remedy this information asymmetry. This enables customers to make wise decisions. Consumer
protection laws set standards for the safety and quality of goods and services. They require businesses to adhere
to these standards, ensuring that consumers are not exposed to hazardous products or substandard services.
Hence, the Consumer Protection Act of 2019 was drafted accurately to address these issues2.

1
Ministry of Consumer Affairs, Food and Public Distribution, Government of India (2019) Department of Consumer Affairs:
Ministry of Consumer Affairs Food and Public Distribution: Government of India, Department of Consumer Affairs. Available at:
https://consumeraffairs.nic.in/ (Accessed: 07 July 2023).
2
GUIDELINES, ASEAN. (2015) Why is consumer protection important? Why Is Consumer Protection Important? Available at:
https://www.aseanconsumer.org/cterms-consumer-protection/why-is-consumer-protection-important (Accessed: 07 July 2023).
Introduction –

To better understand how consumers are protected today, it is of utmost importance to trace all the events in
the past that led to this statute coming into existence. Consumer protection and attention shouldn't necessarily
be seen as a novel concept in India. We must investigate the political underpinnings of consumption, consumer
protection, as well as the current developments in India. Indian consumer protection has a long history that
may be traced back to 3200 BC in both Indian jurisprudence and ancient Indian civilization. This is because
ethical behavior was valued highly even in prehistoric India, where cultural norms were respected. We believe
that as humanity advances, we are growing more conscious of and vocal about human needs, liberties, and
obligations on the one hand, and what ought to be the state's role in terms of administration in the framework
of the welfare state on the other. However, it is also important to keep in mind that the Indian state's goal of
promoting the welfare of the people is not anything new for us to observe today. The goal of the ancient Indian
kings was also to ensure the well-being of their subjects. Because of this, they demonstrated an immense stake
in "managing not only the individual's circumstances in society but also their material life, by imposing many
limitations on trade that safeguard the desires of buyers3.

The need to strengthen regulations -

Businesses have been actively and vehemently pushing their goods and services as a result of the liberalization
and globalization of the Indian economy. Every description of a good or service in a competitive setting focuses
on what "other people are not." These actions cast doubt on the accuracy and integrity of the portrayal of goods
and services. To include an area on unfair trade practices the Monopolies and Restrictive Trade Practises
(MRTP) Act, 1969, was revised in 1984. One of the clauses defines an unfair trading practice as any statement
that "gives false or misleading facts disparaging the goods, services, or trade of another person." The provision
has taken shape thanks to the work of the MRTP Commission and the Supreme Court. Additionally, advertising
is only considered an unfair commercial practice if it is disparaging and is based on "false and misleading
facts." A thorough technological evaluation of the items is frequently necessary for verifying facts. This is
beyond the capabilities of our courts. What is now significant is whether a judge would grant an interim
injunction or not since courts might take quite a while to resolve a dispute. In the interim, until the court makes
a definitive judgment, this prevents the party from publicizing. In reality, the damage from the advertising
could already have been done by the time an interim injunction is obtained4

Protecting the Consumers –

3
Ghosal, A. (2010) Consumer Protection in India: Past and present - sage journals, Sage Journals - Consumer Protection in
India: Past and Present. Available at: https://journals.sagepub.com/doi/abs/10.1177/0973598410110018 (Accessed: 13
September 2023).
4
Pathak, A. (2005) Comparative Advertising in India: Need to Strengthen Regulations: sage journals, Sage Journals -
Comparative Advertising in India: Need to Strengthen Regulations. Available at https://journals-sagepub-com-
culp.knimbus.com/doi/abs/10.1177/0256090920050106 (Accessed: 13 September 2023).
The defense of citizens' rights is the primary goal of the administration. And that includes guarding the weaker
and disadvantaged people among us. Ensuring customers aren't abused is what it implies. It entails assisting
them in comprehending complex financial items so they may choose wisely. In the end, this entails assisting
people in advancing economically so they can assist their households and accomplish their goals. This work
is crucial. It's important work. Therefore, it may be useful to know that we are motivated by an assumption in
favor of consumer choice when contemplating how we carry out our responsibility to safeguard consumers.
Our driving philosophy is that it fosters competition, increases choice, and supports individual freedom and
self-determination when customers are allowed to select from a variety of economical solutions that may meet
their requirements. It is a setting where everyone benefits. The practice of making any statement, whether
verbally, in writing, or by visible representation, which fraudulently suggests that the items are of a certain
standard, quality, quantity, grade, composition, style, or model is prohibited under the Consumer Protection
Act of 1986. We may claim that our Act operates with the interests of consumers at heart since it also contains
provisions that prevent manufacturers from taking advantage of buyers who are ignorant of certain items.
Consumer rights in India such as the right to be informed about a certain product, the right to be heard, right
to get compensation in case of loss ensure that a consumer remains carefree whilst buying products or availing
services. In India, consumer rights include the right to information about a product, the right to be heard, and
the right to compensation in the event of a loss guarantee that a customer is at ease when making purchases or
using services. The legislation was subsequently passed as a consequence of the numerous complaints received
by different organizations regarding the deceptive business practices of some enterprises that cost their clients
money and time. Through regulation and the promotion of ethical business practices across all sectors,
including retail, wholesale, the service industry, etc., the act attempts to defend the interests of consumers.
Businesses must exercise discipline and care for the wellness of their clients. Most issues may be avoided if
the vendors decide to abide by the laws and practice social responsibility. Government agencies have the legal
authority to impose the regulations if the businesses do not enforce them internally. The authorities make sure
that these regulations are followed as intended. Some non-governmental organizations (NGOs) and voluntary
groups seek to safeguard consumers. These organizations educate the public about consumer rights and defend
such rights. They take several different actions, such as holding seminars to raise knowledge of consumer
rights among the public. These are a few ways to safeguard consumers. These are the conventional techniques,
some of which may not always be effective5.

Consumer Dispute Redressal Mechanisms –

A three-stage structure governs the Consumer Dispute Redressal Forum. The National Consumer Redressal
Forum (NCRF), State commissions, and District forums make up the tiers of dispute resolution in consumer
awareness. The Redressal Mechanism of Consumer Protection Act, 1986, specifies the authority of each
consumer forum. The National Forum and the State Commission both accept appeals from the District Forum's

5
The Consumer Protection Act, 1986, Acts of Parliament, 1986.
judgment and the State Commission's order, respectively. As in situations of any other kind, deadlines are
established for the appeal. There are three tiers of consumer awareness timetables for redress, as well as a 21-
day window to determine jurisdiction in a specific case. The concept of Res judicata also applies to this body,
therefore the same case cannot be considered by more than one forum, or if a civil court case is continuing, no
consumer forum may consider the same matter. Based on the claim's monetary worth and the Respondent's
place of business where the cause of action occurred, the forum's jurisdiction will be determined. The fact that
conflicts are resolved more quickly than they would in civil courts is only one advantage of this dispute-
resolution method. The complaint submission process is straightforward and less onerous. There is no
requirement that the complainant be represented by an advocate while filing the complaint. The complaint
may also be sent via mail. The Remedies Available Consumer awareness is the practice of gathering sufficient
knowledge about the products and services that people consume and exercising their consumer rights to defend
themselves against unfair trade practices. Since it is a matter of public welfare, government intervention is
necessary in the procedure or the techniques of dispute resolution in consumer awareness. The goal of this
technique is to successfully inform a client of their rights and responsibilities with the express intent of
guaranteeing their safety and safeguarding them against unfair business practices. The availability of
information and accessible resources is prioritized6.

Product Liability –

To list the circumstances in which a claim for compensation under a product liability action would be available
for "harm" caused by a "defective" product manufactured by a product manufacturer, serviced by a product
service provider, or sold by a product seller, Chapter VI of the 2019 Act, which established the legal framework
on product liability, was dedicated to this purpose. Damage to any property other than the product itself is
included in the definition of "harm," as is physical injury, illness, or death; mental anguish or emotional
distress; among other things. It should be noted that this excludes any damage done to the product itself or the
property as a result of a warranty condition being broken, as well as any financial or commercial losses,
including any direct, incidental, or consequential losses related thereto. According to the Act, a "defect" is any
flaw, imperfection, or shortcoming in the quality, quantity, potency, purity, or standard that must be upheld by
or under any express or implied law or contract, or as is asserted by the trader in any manner whatsoever about
any goods or product. As is clear from the foregoing, it is crucial to prove that "harm" was brought about by a
"defective" product to bring about a product liability lawsuit. According to Section 2(36), the term "product
manufacturer" comprises all parties involved in the selling process that fall under the definition's purview.
According to the definition of "product manufacturer," a person who does any of the following is considered
to be a manufacturer: (a) makes any product or parts thereof; (b) assembles parts thereof made by others; (c)
places or causes to be placed his mark on any product made by any other person; (d) manufactures a product
and sells, distributes, leases, installs, prepares, packages, labels, markets, repairs, maintains such product; or
(e) designs, produces. The Act's Section 84 lists the circumstances in which a product manufacturer may be

6
The Consumer Protection Act, 1986, Acts of Parliament, 1986.
held accountable in a claim for damages arising from harm brought on by a faulty product produced by the
product maker. The circumstances under which a product service provider shall be responsible in a product
liability action for damage brought about by a faulty product serviced by the product service provider are listed
in Section 85 of the Act. If the consumer forum determines that the product is flawed or if any of the
complainant's claims are found to be true, it may, among other things, order one or more of the following: the
defect be fixed, the product replaced, the price paid by the consumer plus interest be reimbursed, the consumer
be compensated, including punitive damages for negligence, unfair business practices be stopped, the
withdrawal of dangerous or unsafe goods be ordered, or a directive to ce The 2019 Act stipulates harsher
penalties to better safeguard consumers, since its goal is to do so. Reading the definition of "product liability"
indicates that the complaint must prove that "harm" was caused by a "defective" product to establish a claim
of product liability. Therefore, the lack of a "defect" and the absence of "harm" to the customer as a result of
using the product are both legitimate defenses against a product liability claim. The 2019 Act comprehensively
addresses the topic of "Product Liability" and has undoubtedly improved compliance for all parties involved
in the sale process, including product manufacturers, sellers, and service providers as well as endorsers,
importers, marketers, and repairers7.

Role of technology –

Consumers may see a huge shift in the market thanks to the technology, which will provide them access to
almost limitless information, a worldwide market, and increased buying convenience. The Internet already
gives users the option to select the information they need from a variety of international sources and obtain it
instantly. New information, retail, and entertainment services are also anticipated to be made available to
customers with the upcoming wave of telephone and television technology. The Internet could make it possible
for con artists to establish themselves quickly and affordably anywhere in the globe, prey on naïve customers,
and disappear without a trace. Recent experience with emerging technology, like pay-per-call phone systems,
indicates that scammers are eager to use new promotional resources. At a point when their capital and staff are
scarcer than ever, government consumer protection organizations will face greater problems. Low-tech scams
are not going away, and there is every reason to believe that "next-tech" frauds will become more prevalent
and challenging to identify and trace across nations. To make the most of their little resources, organizations
that enforce the law must work harder, more shrewdly, and more together. Undoubtedly, the most significant
change in the marketplace throughout the 1990s was the deluge of information that customers now have at
their disposal. Customers may investigate their interests, read the most recent news summaries, and browse
for automobiles in a matter of minutes on the Internet. Even though it is still in its early days as an advertising
medium, the Internet itself is expected to develop rapidly over the next years. Digital advertising and e-
commerce are widely anticipated to follow suit. Most of the time, customers will be willing to use the wealth
of information available on the World Wide Web to make more educated judgments. Indeed, some analysts
believe that customers will get overloaded and perplexed as the sheer quantity of data accessible in the retail

7
The Consumer Protection Act, 1986, Acts of Parliament, 1986.
sector increases. Because of the Internet, customers will soon have access to a larger selection of items, more
alternatives for services and prices, and more purchasing possibilities in a worldwide market. Internet
marketing channels won't likely take the place of older, more established ones. 4 The volume of data and the
goods that can be sent by even these tools, the telephone, and the television, are growing. For instance, the
quantity of broadcasting networks has quadrupled and the average count of stations per home has increased
sixfold since the 1960s. A wide variety of information, goods, and entertainment are continuously being made
available through telephone services. For instance, buyers may now preview and buy compact CDs over cell
phones along with getting full motion video. Online purchases by customers could soon grow to be quite
mainstream. As more things, including software, can be transferred that way, consumers will more and more
be able to complete their whole interactions online, from choosing products and negotiating pricing to
purchasing and paying for goods, completing product registration cards, and even getting the products. In the
future, live television and internet access could provide in-home face-to-face purchasing. There is no doubt
that the new technologies offer customers a variety of fascinating advantages. It is equally obvious that they
put consumers at risk and put businesses and governments in unfamiliar areas. The expanding areas of concern
indicate that effective solutions need innovative thinking and teamwork from all involved parties. The fact that
fraud has significantly expanded over the past 30 years is partially due to modern technologies. The rise in
fraud has been aided by globalization as well, but what is novel and astounding is the magnitude of the market
that may be exploited, as well as how cheap and simple it is to pull off a hoax. Innovations pose significant
obstacles to discovery, capture, and enforcement for law enforcement organizations. The work of authorities
alongside business self-regulatory organizations is expanding along with the array of media outlets. The
proliferation of channels and infomercials has made it increasingly challenging to keep an eye on television
advertising. It will be increasingly harder to keep an eye on the Internet. However, it is essential since
newcomers might not be familiar with their legal responsibilities under consumer protection legislation. Law
enforcement organizations will face a dizzying array of legal problems in the new economy. Electronic
communications across countries and borders give rise to fresh questions concerning the selection of laws and
jurisdictions. Various legal requirements for advertising, such as claim substantiation, the use of sweepstakes,
and privacy rights, may apply to any international consumer transaction. The relative legal responsibilities of
players in the new market, such as suppliers of services, website sponsors, and message board owners, are
raised by several difficulties raised by online transactions. New forms of activity, such as Web sites that engage
directly with children and request information from them, may potentially give rise to legal difficulties. In a
new setting where customers have better access to comprehensive product information, it could be essential
to reevaluate the application of various consumer protection regulations. The quantity and complexity of
consumer protection issues are expanding, yet all levels of government are running out of resources to address
them. To complete the task with fewer resources is a problem for law enforcement organizations. They must
operate more shrewdly and effectively, maximizing their influence by collaborating with other organizations
and the private sector as a whole. To prevent fraud and inform customers, they must also employ new
technology more effectively. While developing technologies could increase consumer sovereignty, they might
also take away control in certain areas, such as the gathering and use of personal data. The amount of data
collected will probably increase. It is possible to trace every step a person makes online, particularly private
information about their location when shopping, what they are seeking, what they ultimately purchase, who
they chat with, as well as how long. In addition to the participants in a transaction, online services, Internet
service providers, and digital payment providers will also have access to this information. Many of the worries
that customers have about modern technology may be addressed by the private sector. It possesses the "know-
how" to identify viable options without unreasonably complicating its operations. Private organizations may
be able to create pro-competitive certification requirements that enable customers to verify that a vendor abides
by safeguarding consumer principles. They may also be able to come up with strategies for leveraging the new
technology to settle disputes. Self-regulation allows for flexibility in problem-solving. It offers a chance to
take things carefully in sensitive areas like privacy, to establish industry-wide standards of conduct, and to try
out various strategies. Additionally, self-regulation benefits the business industry since customers will only
adopt cutting-edge technology in which they place their faith. Finally, autonomy can reduce the demands
placed on law enforcement. Governmental organizations can concentrate their energies on fraud and deceit if
the business is successful in promoting overall standards of consumer protection. But it's important to keep in
mind that self-regulation is not always consistent. Face the problems of a quickly evolving economy, often
requires a significant presence of law enforcement as well as ongoing renewal and modification. Informed
decision-making is fuelled by consumer education. This important, if expensive, component of the consumer
protection agenda needs to come from a range of sources, including businesses, consumer advocacy
organizations, educational institutions, and government organizations that collaborate but operate
independently. Getting messages across to customers in an era of information overload may be challenging.
Additionally, consumer education messages must alter people's behavior in specific situations, including
telemarketing fraud, which is a difficult process. Even the finest consumer education cannot, in the end, suffice
on its own. Although the government, businesses, academics, and consumer organizations are unsure, none of
them want to fall behind. They are cautiously optimistic as they enter the new market. They anticipate greater
and better information, larger markets, more intense competition, and more cooperation opportunities.
Nevertheless, they are fully aware of the dangers, including increased privacy threats, new forms of fraud and
deceit, and a global platform for con artists8.

Challenges faced –

Consumer protection laws may be broken in a plethora of ways, from defective goods to costly services. Even
worse, the laws that are now in place to safeguard consumers are out-of-date. They don't go far enough to
safeguard customers from being exploited. If we want to ensure that customers are treated properly, these rules

8
United States. Federal Trade Commission. (1996)
Anticipating the 21st century: competition policy in the new high-tech,
global marketplace.
United States. Federal Trade Commission. - Anticipating the 21st century: competition policy in the new high-tech, global
marketplace.
. Available at: https://onlinebooks.library.upenn.edu/webbin/book/lookupid?key=ha101712620 (Accessed: 17 September 2023)
urgently need to be revised. Why it's necessary to increase customer awareness in India may be a question on
your mind. After all, the government doesn't already have regulations in place to safeguard consumers. That's
regrettably not always the case. In truth, corporations frequently take their customers for granted. And even
when they do make an effort to defend themselves, they frequently lack direction and know-how. People need
to be mindful of their entitlements as customers because of this. Consumers must be made aware of their rights.
Campaigns and outreach initiatives, as well as the internet and other platforms, can be used to accomplish this.
A more robust legislative framework is required for consumer protection. This will make it possible to hold
companies liable for their deeds and provide customers with redress if they are mistreated. The implementation
of consumer protection legislation has to be strengthened. This entails making sure organizations like the
Consumer Protection Council have the funding and resources to fulfill their role. Law schools or regional
consumer protection organizations might arrange workshops and seminars on consumer protection legislation
and rights. We could ask legal professionals to speak on pertinent legal frameworks. Webinars are a successful
technique to reach a larger audience in the digital era. On websites like Zoom or YouTube, we may conduct
webinars that address different facets of consumer protection, current law developments, and case studies.
Make use of social media to raise awareness. Share articles, infographics, and videos with useful information
about consumer rights, how to spot fraud, and where to turn for support in case of problems. Create a blog or
write articles for legal websites that cover themes related to consumer protection. These articles might be
helpful tools for anyone looking for information. Join forces with well-known consumer rights groups
worldwide. They frequently have connections and resources that can help your efforts succeed. Offer to talk
on consumer protection at community events, universities, and local schools. Make sure to adjust your
presentations for various age and demographic groups. Encourage companies to use moral and client-focused
practices. Some people could be amenable to collaborations that aim to increase consumer protection. Maintain
a consumer protection-focused website or social media account. Update it frequently with useful information
and material9.

What needs to be done to improve Consumer Protection in India?

• Educating customers on their rights might be a good place to start. Many individuals don't even realize
they are entitled to certain things, which is a problem. We must ensure that everyone is informed of
their options if they are dissatisfied with a good or service.
• A more efficient procedure for submitting concerns has to be developed. Consumers now find it
difficult to make a complaint, and this has to change. People should be able to make complaints through
a centralized system, and the procedure should be easy to understand.
• We must uphold the law as it is. Because the government doesn't adequately police consumer protection
rules, businesses frequently get away with breaking them. Bringing the consumer court online would
allow the authorities to be harsher when it comes to upholding the law.

9
Consumer Protection in India: Needs and Methods," Vakilsearch, https://vakilsearch.com/blog/consumer-protection-in-india-
needs-and-methods/ (last visited September 17, 2023).
 • We must enact new legislation to safeguard consumers. Many of the current regulations are out of date
and inadequately shield consumers from business abuses. We must enact new rules that better
safeguard consumers and are more pertinent to the modern world.

The penalty for businesses breaking consumer protection regulations needs to be increased. Because the fines
are now too low, businesses are encouraged to flout the law10.

Conclusion –

Consumers are at the whim of retailers and manufacturers that frequently prioritize profit above people,
resulting in defective products and expensive items. This must be altered. By increasing consumer
understanding of their rights and speaking out against businesses that treat customers unfairly, you may
contribute to the improvement of consumer protection in India. In conclusion, India's consumer protection
environment has changed dramatically in response to the problems brought on by the competitive marketplace
of the twenty-first century. The Consumer Protection Act, of 2019, as well as the rise of e-commerce and
difficulties affecting digital consumers, are only a few of the aspects of this transition that have been covered
in this research paper. The legislative framework, consumer rights, dispute resolution procedures, and the value
of consumer education have all been covered in detail. It is clear that while India has improved consumer
protection in respectable ways, there is still room for improvement. For example, since e-commerce expands
quickly, consumer rules must be continuously modified to handle difficulties with online fraud, data privacy,
and product quality unique to the digital sphere. Additionally, the promotion of consumer awareness and
education must be a continuous effort, giving people the capacity to make wise decisions and assert their
rights. Stakeholders, including the government, companies, and consumer advocacy organizations, should
work together to simplify enforcement, establish strict standards for product safety, and offer accessible
channels for dispute resolution to significantly strengthen consumer protection. Regulations should be adjusted
by policymakers in light of the market's dynamic changes.

In the final analysis, defending the rights and interests of customers is both a moral and legal requirement. In
addition to fostering market confidence, a well-protected customer base also promotes economic expansion.
A strong consumer protection framework will be essential to ensuring a fair and sustainable market that
benefits everyone as India moves forward in the twenty-first century. This research study provides a current
assessment of consumer protection in India and will add to ongoing discussions and initiatives aimed at
defending consumers' rights in this multicultural and dynamic country.
I appreciate you paying attention to this important matter, and I hope it encourages future research and action
in the area of consumer protection.

10
Consumer Protection in India: Needs and Methods," Vakilsearch, https://vakilsearch.com/blog/consumer-protection-in-india-
needs-and-methods/ (last visited September 17, 2023).