19. Consumer Protection Act, 2019: A Complete Guide to Consumer Rights in India

Written and reviewed by Dr. Saint Paul | Pharm.D Graduate from JNTUK | Pharmacy Educator and D.Pharmacy Academic Content Creator

CONSUMER PROTECTION ACT, 2019: A TEACHER’S COMPREHENSIVE GUIDE TO INDIA’S CONSUMER RIGHTS FRAMEWORK

Welcome, future pharmacists and healthcare professionals!

As a pharmacy law and ethics educator with years of experience teaching consumer protection legislation, I have observed that the Consumer Protection Act, 2019, is a landmark legislation that has significantly strengthened consumer rights in India. Earlier, the protection of rights and interests of consumers was governed by the Consumer Protection Act, 1986. However, due to some flaws in the Act with respect to the changed scenario, the existing Act was required to be replaced by a new Act. Consequently, a new bill for the Consumer Protection Act, 2019 was passed by the president on 6th August, 2019. The most important objective was to resolve various consumer complaints pending in consumer courts throughout the country.

In this comprehensive guide, I will take you through the introduction, objectives, salient features, meaning of consumer, rights of consumers, importance, and the Consumer Disputes Redressal Commission (CDRC) established under the Act. By the end of this article, you will have a thorough understanding of the consumer protection framework in India and its relevance to pharmacy practice. Let us begin.

OBJECTIVES OF THE ACT

The primary objectives of the Consumer Protection Act, 2019, are as follows:

  1. To create the Central Consumer Protection Authority (CCPA) that aims to promote, defend, and uphold consumer rights.
  2. To conduct investigations for consumer rights violations.
  3. To recall products or services that are dangerous.
  4. To stop deceptive advertising and unfair business practices.
  5. To penalise producers, distributors, publishers, or endorsers for misleading advertisements.

SALIENT FEATURES OF THE ACT

Central Consumer Protection Authority (CCPA)

The Consumer Protection Act, 2019, has established the Central Consumer Protection Authority (CCPA) with the prime objective of promoting, protecting, and enforcing the rights of consumers. The CCPA can perform the following activities:

  • Investigating activities that violate the rights of consumers.
  • Filing complaints and prosecutions.
  • Passing orders for recalling unsafe goods and services.
  • Passing orders for the discontinuation of unfair trade practices and misleading advertisements.
  • Imposing penalties on manufacturers, endorsers, and publishers of misleading advertisements.

Six Rights of Consumers

The Consumer Protection Act, 2019, has provided the following six rights to consumers:

  • Right to Safety
  • Right to be Informed / Right to Representation
  • Right to Choose
  • Right to be Heard
  • Right to Seek Redressal
  • Right to Consumer Education

Covers all E-Commerce Transactions

The term “consumer” has been defined more widely by the Consumer Protection Act, 2019. The new definition includes any person who purchases any goods through offline or online or teleshopping or electronic mode or direct selling or multi-level marketing. The earlier Act, i.e., the Consumer Protection Act, 1986, did not include provisions about e-commerce transactions.

Prohibition and Penalties for Misleading Advertisements

The provisions regarding the prohibition and penalties for misleading advertisements have been included in the Consumer Protection Act, 2019. These provisions have empowered the CCPA to impose penalties on manufacturers involved in publishing misleading or false advertisements. A fine and imprisonment for 2 years can be imposed for the first offence, while a fine up to ₹50 lakh and imprisonment up to 5 years can be imposed for repeated offences.

Consumer Disputes Redressal Commission (CDRC)

The Act includes provisions for the establishment of Consumer Disputes Redressal Commissions (CDRCs) at the national, state, and district levels. The prime objective of CDRCs is to address complaints concerned with:

  • Charging prices more than the usual prices.
  • Adopting unfair or restrictive trade practices.
  • Selling goods and services that are hazardous to life.
  • Selling goods and services which are deceptive.

Alternate Dispute Resolution

The Act includes a provision for the Alternate Dispute Resolution mechanism. This mechanism has made the process of dispute dissolution simpler and quicker. With the help of this mechanism, disputes can be resolved faster, and the pressure on consumer courts can be reduced to a great extent.

MEANING OF CONSUMER

According to the Consumer Protection Act, 2019, a “Consumer” means any person who:

  • Buys any goods for consideration (paid, promised, deferred payment) and includes any user of such goods with approval. This does NOT include a person obtaining goods for resale or for any commercial purpose.
  • Hires or avails any service for consideration (paid, promised, deferred payment) and includes any beneficiary of such service with approval. This does NOT include a person availing service for any commercial purpose.

RIGHTS OF CONSUMERS – DETAILED

Right to Safety

Every customer has the right to safety against products that may harm the health, property, and life of customers. For example, low-quality food products (such as bread, milk, jam, butter), appliances made of low-quality raw material (such as electric press, pressure cooker), spurious and substandard drugs.

Right to be Informed / Right to Representation

Consumers have the right to possess all information regarding product quality, quantity, price, potency, date of manufacture, method of use, and other relevant details. This empowers consumers to make informed choices.

Right to Choose

Consumers have the right to select any product or service from available goods or services without any unfair influence. This ensures that consumers are not forced to buy products they do not want.

Right to be Heard

Consumers have the right to file a complaint against any party that is prejudicial to consumer interest. This ensures that consumer grievances are heard and addressed appropriately.

Right to Seek Redressal

Consumers have the right to receive compensation against unfair trade practices, including refund, repair, replacement, or other remedies. This ensures that consumers are not exploited by unfair practices.

Right to Consumer Education

Consumers have the right to get education about their rights available in case of loss due to defective goods or services. This empowers consumers to exercise their rights effectively.

IMPORTANCE OF THE ACT

From Consumer’s Point of View

  • Consumer Ignorance: Educates consumers about their rights and interests, helping them make informed decisions.
  • Widespread Exploitation of Consumers: Protects consumers from unfair and fraudulent trade practices.
  • Unorganised Consumers: Provides protection for consumers spread unevenly across India.

From Business Point of View

  • Long-Term Business Interest: Satisfied customers lead to long-term business growth and loyalty.
  • Regulation Benefits: Maintaining trust and goodwill with consumers.
  • Ethical Practices: Promotes ethical business practices and fair competition.

CONSUMER DISPUTES REDRESSAL COMMISSION (CDRC)

District Commission

  • Composition: President + 2 members (one woman)
  • Jurisdiction: Value of goods/services + compensation claimed ≤ ₹20 lakhs
  • Appeal: To State Commission within 30 days

State Commission

  • Composition: President + at least 2 members (one woman)
  • Jurisdiction: Value of goods/services + compensation claimed > ₹20 lakhs but < ₹1 crore; also hears appeals from District Commission
  • Appeal: To National Commission within 30 days

National Commission

  • Composition: President + at least 4 members (one woman)
  • Jurisdiction: Value of goods/services + compensation claimed > ₹1 crore; also hears appeals from State Commission
  • Appeal: To Supreme Court of India

SUMMARY TABLES

Table 1: CDRC Jurisdiction

CommissionMonetary JurisdictionCompositionAppeal To
District Commission≤ ₹20 lakhsPresident + 2 members (1 woman)State Commission (30 days)
State Commission> ₹20 lakhs < ₹1 crorePresident + at least 2 members (1 woman)National Commission (30 days)
National Commission> ₹1 crorePresident + at least 4 members (1 woman)Supreme Court

Table 2: Six Rights of Consumers

RightDescription
Right to SafetyProtection against harmful products
Right to be InformedAccess to complete product information
Right to ChooseFreedom to select from available options
Right to be HeardRight to file complaints
Right to Seek RedressalRight to compensation for unfair practices
Right to Consumer EducationRight to learn about consumer rights

A TEACHER’S LEGAL INSIGHTS

Over my years of teaching pharmacy law and ethics, I have developed a few key insights about the Consumer Protection Act, 2019, that I always share with my students:

  • The Consumer Protection Act, 2019, is a significant improvement over the 1986 Act, particularly in its coverage of e-commerce transactions and the establishment of the CCPA.
  • Pharmacists must be aware of the six rights of consumers, as they are directly relevant to the dispensing of medicines and the provision of pharmaceutical services.
  • Understanding the CDRC structure and jurisdiction is essential for pharmacy professionals who may need to address consumer complaints.
  • Consumers have become more aware of their rights, and pharmacy professionals must ensure that they provide safe and quality products and services.

FREQUENTLY ASKED QUESTIONS (FAQs)

1. When was the Consumer Protection Act, 2019 passed?

The Consumer Protection Act, 2019 was passed by the President of India on 6th August, 2019.

2. What is the Central Consumer Protection Authority?

The CCPA is a regulatory body established under the Act to promote, protect, and enforce the rights of consumers. It has powers to investigate violations, recall unsafe goods, and impose penalties for misleading advertisements.

3. What are the six rights of consumers under the Act?

The six rights are: Right to Safety, Right to be Informed, Right to Choose, Right to be Heard, Right to Seek Redressal, and Right to Consumer Education.

4. What is the monetary jurisdiction of the District Commission?

The District Commission has jurisdiction over claims where the value of goods/services and compensation claimed is up to ₹20 lakhs.

5. What is the monetary jurisdiction of the State Commission?

The State Commission has jurisdiction over claims where the value of goods/services and compensation claimed is more than ₹20 lakhs but less than ₹1 crore.

6. What is the monetary jurisdiction of the National Commission?

The National Commission has jurisdiction over claims where the value of goods/services and compensation claimed is more than ₹1 crore.

7. Does the Act cover e-commerce transactions?

Yes, the Act explicitly covers e-commerce transactions, including online, teleshopping, electronic mode, direct selling, and multi-level marketing.

SUMMARY

The Consumer Protection Act, 2019, is a comprehensive legislation that has significantly strengthened consumer rights in India. It establishes the Central Consumer Protection Authority (CCPA), defines six fundamental rights of consumers, covers e-commerce transactions, provides for penalties for misleading advertisements, and establishes a three-tier Consumer Disputes Redressal Commission (CDRC) at the district, state, and national levels. The Act empowers consumers and ensures that businesses operate ethically and fairly.

As healthcare professionals and pharmacy students, understanding the Consumer Protection Act is essential for ensuring that we provide safe and quality products and services to our patients and customers.

As I always tell my students: “Consumer protection is not just a legal requirement—it is a moral obligation. Every patient and customer deserves to be treated with fairness, respect, and transparency.”

REFERENCES AND FURTHER READING

  • The Consumer Protection Act, 2019. Government of India.
  • Central Consumer Protection Authority (CCPA). (2022). Consumer Rights and Guidelines. Retrieved from https://consumeraffairs.nic.in.
  • National Consumer Disputes Redressal Commission (NCDRC). (2022). Consumer Disputes Redressal Guidelines. Retrieved from https://ncdrc.nic.in.
  • Ministry of Consumer Affairs, Food and Public Distribution. (2022). Consumer Protection Resources. Government of India.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always refer to the latest regulatory guidelines and consult legal experts for compliance matters.

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