CENTRE FOR DISTANCE AND ONLINE EDUCATION

CENTRE FOR DISTANCE AND ONLINE EDUCATION

Live Session – Session No. 6

BCOM103 – Corporate Legal Environment

Unit No. 6: Consumer Protection Act, 2019
B.Com. Semester-I
SURAJ AGARWAL
M.COM, M.B.A, UGC NET
(Qualified)
FACULTY CDOE, SMU
Learning Outcomes

1 2 3 4
Describe joint Describe the Distinguish between Know accounting
venture. features of joint joint ventures and treatment in joint
ventures. consignment sales. ventures.
 Objectives of the Act
The CP Act contains provisions that help safeguard consumers against various types of
exploitation and unfair dealings. The main objectives of the Act are:
a) The right to be protected against marketing of goods which are hazardous to life and
property
b) The right to be informed about the quality, quantity, potency, purity, standards and price
of the goods to protect the consumer from unfair trade practice
c) The right to be assured, wherever possible, access to a variety of goods at competitive
price
d) The right to be heard and to be assured that consumer interest will receive due
consideration at appropriate forums
e) The right to seek redressal against unfair trade practices or restrictive trade practices, or
unscrupulous exploitation of consumer
f) Right to consumer education
The CPA aims to remove all these barriers by providing speedy and simple redressal of the
consumers’ complaints.
Definition
Consumer: means any person who:
1. buys any goods for a consideration which has been paid or promised or partly paid
and partly promised, or under any system of deferred payment (for example hire
purchase or installment sales) and includes any other user of such goods when such
use is made with the approval of the buyer, but does not include a person who
obtains such goods for resale or for any commercial purpose; or
2. hires or avails of any services for a consideration which has been paid or promised,
or partly paid and partly promised, or under any system of deferred payment and
includes any beneficiary of such services when such services are availed of with the
approval of the first mentioned person.
Definition
Complaint: means any allegation in writing made by a complainant that:
1. An unfair trade practice or a restricted trade practice has been adopted by any trader.
2. The goods bought by him or agreed to be bought by him suffer from one more
defects.
3. The services hired or availed of or agreed to be hired or availed of by him suffer from
deficiency in any respect.
4. A trader has charged for the goods mentioned in the complaint a price excess. of the
price fixed by or under any law for the time being in force or displayed on the goods or
any package containing such goods.
5. Goods which will be hazardous to life and safety when used, are being offered for sale
to the public in contravention of the provisions of any law for the time being in force,
requiring traders to display information in regard to the contents, manner and effect
of use of such goods; with a view to obtaining any relief provided by law under the
CPA.
Definition

Complainant means:
1. A consumer; or
2. Any voluntary consumer association registered under the Companies Act, 1956 or
under any other law for the time being in force; or
3. The Central Government or any State Government, who or which makes a
complaint; or one or more consumers where there are numerous consumers having
the same interest.
Rights of Consumer
The basic rights of consumers as per the Consumer Protection Act (CPA) are:
1. Right to Seek Redressal: It is the right to seek redressal against any unfair trade practices or
unscrupulous exploitation of consumers.
2. Right to be Informed: The consumer has the right to be informed about the quality, quantity, purity,
standard and price of goods he intends to purchase. Therefore, the manufacture must mention
complete information about the product, its ingredients, date of manufacture, price, precaution of
use, etc. on the label and package of the product.
3. Right to Choose: The consumer should be assured of freedom to choose from a variety of products
at competitive prices.
4. Right to be Heard: The consumer has right to register dissatisfaction with any product and get his
complaint heard. The right to be assured that consumers’ interest will receive due consideration at
appropriate forums.
5. Right to Consumer Education: It means right of acquiring knowledge and being a wellinformed
consumer throughout his life. He should also be made aware of his rights and the remedies
available through publicity in the mass media.
6. Right to Safety: It is the consumer right to be protected against goods and services which is
hazardous to health or life.
 Consumer Protection Council
Central Consumer Protection Council State Consumer Protection Councils
Composition: Composition:
•Chairperson of central council shall be Minister-in- •Chairperson of state council shall be Minister-in-charge
charge of the Department of Consumer Affairs in the of Consumer Affairs in the State Government
Central Government. •State council will have such number of other official or
•Central council will have such number of other non-official members representing such interests as may
official or non-official members representing such be prescribed.
interests as may be prescribed. •State council shall also have such number of other official
Term - The term of the Council is three years. or non-official members, not exceeding ten, as may be
Meeting of Central Council – The Central Council nominated by the Central Government.
shall meet as and when necessary, but at least one Meeting of State Council – The State Council shall meet
meeting of the Council shall be held every year. as and when necessary but not less than two meetings
Objective of Central Council – The objects of the shall be held every year.
Central Council shall be to render advice on Objective of State Council – The objects of every State
promotion and protection of the consumers’ rights Council shall be to render advice on promotion and
under the Act. protection of consumer rights under the Act within the
State.
Consumer Protection Council

District Consumer Protection Council

Composition:
Chairperson of the District Council shall be Collector of
the district.
Meeting of District Council –
•The District Council shall meet as and when necessary
but not less than two meetings shall be held every year.
•The District Council shall meet at such time and place
within the district as the Chairperson may think fit
Objective of District Council – The objects of every
District Council shall be to render advice on promotion
and protection of consumer rights under the Act within
the district
Consumer Redressal
Agencies
District Commissions
This Commission is established in each district of the State by the State Government by notification in the
official gazette for redressal of consumers’ grievances and disputes. The key features of this forum are -
1. Members: Each of the District Forum consists of the following members-
a. A President;
b. Not less than two and not more than such number of members as may be prescribed, in consultation with
the Central Government.
2. Jurisdiction: District Commissions have jurisdiction to entertain complaints where the value of the goods
or services paid as consideration does not exceed Rs. 1 crore. The Central Government has been
empowered to prescribe any other value as it may deem fit.

The District Commission can entertain a complaint filed by a consumer, a recognised consumer association,
one or more consumers as a class action complaint, or the Central/State Government. Upon receipt of a
complaint, the District Commission can either admit or reject it by recording an order in this regard. No
complaint can be rejected unless the complainant has been heard. If the Commission does not decide on the
admissibility of a complaint within 21 days of it being filed, it is deemed to have been admitted The District
Consumer Redressal Forum has the same powers as the civil court under the Code of Civil Procedure, 1908.
 Consumer Redressal
Agencies State Commission
Apart from District Commissions, the governments of each State have to set up at least one State Commission at the State
level. Each State Commission has the following features:
1. Members – Every State Commission comprises of:
a. a President, who is or has been a judge of the High Court; and
b. not less than four or not more than such number of members as may be prescribed in consultation with the Central
Government.
2. Jurisdiction: Every State Commission has jurisdiction to:
(a) entertain:
i. complaints where the value of the goods or services paid as consideration is between Rs. 1 crore and Rs. 10 crore;
ii. complaints against unfair contracts, where the value of goods or services paid as consideration does not exceed Rs. 10
crores;
iii. appeals against the orders of any District Commission within the State; and
(b) 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.
3. Appeals: In case the consumer is not satisfied with the verdict given by the State Commission in its original
jurisdiction, he/she can appeal to the National Commission.
 Consumer Redressal
Agencies National commission
The National Consumer Commission must ordinarily be functioning in New Delhi. The National Commission has the
following features:
1) Members – The National Commission comprises of:
a. a President, who is or has been a Judge of the Supreme Court; and
b. not less than four and not more than such number of members as may be prescribed.
2) Jurisdiction: The Commission has jurisdiction to.
1. entertain:
i. complaints where the value of the goods or services paid as consideration exceeds Rs. 10 crores;
ii. complaints against unfair contracts, where the value of goods or services paid as consideration exceeds Rs. 10 crores;
iii. appeals against the orders of any State Commission;
iv. appeals against the orders of the Central Authority; and
2. 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 exercise of its jurisdiction
illegally or with material irregularity.
3. Appeal: In case the consumer is not satisfied with the verdict given by the National Commission in its original
jurisdiction, he can appeal to the Supreme Court within a period of 30 days from the date of order. Every other order of
the National Commission can be challenged before the Supreme Court by way of a Special Leave Petition.
 Consumer Redressal
Agencies National commission
The National Consumer Commission must ordinarily be functioning in New Delhi. The National Commission has the
following features:
1) Members – The National Commission comprises of:
a. a President, who is or has been a Judge of the Supreme Court; and
b. not less than four and not more than such number of members as may be prescribed.
2) Jurisdiction: The Commission has jurisdiction to.
1. entertain:
i. complaints where the value of the goods or services paid as consideration exceeds Rs. 10 crores;
ii. complaints against unfair contracts, where the value of goods or services paid as consideration exceeds Rs. 10 crores;
iii. appeals against the orders of any State Commission;
iv. appeals against the orders of the Central Authority; and
2. 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 exercise of its jurisdiction
illegally or with material irregularity.
3. Appeal: In case the consumer is not satisfied with the verdict given by the National Commission in its original
jurisdiction, he can appeal to the Supreme Court within a period of 30 days from the date of order. Every other order of
the National Commission can be challenged before the Supreme Court by way of a Special Leave Petition.
Administrative Control Of National Commission
The National Commission exercises administrative control over all State Commissions
in the following ways:
1. Asking for periodical returns regarding the institution, disposal, and pendency of
cases.
2. Issuing instructions regarding the adoption of uniform procedures during the
proceedings.
3. Directing that the documents regarding the case be handed to the opposite parties
with English translation of judgments written in any language.
4. Generally, overseeing the functioning of the State Commissions or the District
Forums to ensure that the objects and purposes of the Act are given due importance
and are maintained and served in the best possible manner.

However, the National Commission is expected to carry out the above activities
without interfering with the quasi-judicial freedom of the State commissions or
district forums.
Human resources slide 9

Thank
You