19. INTRODUCTION TO THE CONSUMER PROTECTION ACT

CONSUMER PROTECTION ACT, 2019: A TEACHER’S COMPREHENSIVE GUIDE

Welcome, future pharmacists and healthcare professionals!

The Consumer Protection Act, 2019 is a landmark legislation that replaced the earlier Consumer Protection Act, 1986. The previous Act had several flaws with respect to the changed scenario, and a new bill was required to address the evolving needs of consumers. The new Act was passed by the President on 6 August 2019 with the most important objective of resolving various consumer complaints which were pending in consumer courts throughout the country. It has introduced several ways and means to solve consumer grievances rapidly and efficiently.

As a pharmacy educator with years of experience teaching law and ethics, I have observed that students often find consumer protection laws complex. However, understanding the Consumer Protection Act is essential for every pharmacist—it governs the rights of consumers, protects against unfair trade practices, and provides mechanisms for redressal. In this comprehensive guide, I will break down the Act into manageable sections, explaining the objectives, salient features, consumer rights, the role of CCPA, and the Consumer Disputes Redressal Commission at various levels. Let us begin our journey.

Dpharmguru’s exam insights:

The Consumer Protection Act, 2019 is frequently tested in pharmacy law and ethics exams. Remember: It was passed on 6 August 2019, replacing the 1986 Act; it establishes the Central Consumer Protection Authority (CCPA); it covers e-commerce transactions; it provides six consumer rights; it establishes Consumer Disputes Redressal Commissions at District, State, and National levels. Pay special attention to the jurisdiction limits of each commission—these are almost always asked in exams!

OBJECTIVES OF THE CONSUMER PROTECTION ACT, 2019

The primary objectives of this Act are as follows:

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

Dpharmguru’s exam insights:

The five objectives of the Consumer Protection Act, 2019 are frequently tested. Remember them as: (1) Create CCPA, (2) Conduct investigations, (3) Recall dangerous products, (4) Stop deceptive advertising, (5) Penalise misleading advertisements. This is a common long-answer question in exams!

SALIENT FEATURES OF THE ACT

1. Establishment of Central Consumer Protection Authority (CCPA)

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

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

2. 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

3. 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, online, teleshopping, electronic mode, direct selling, or multilevel marketing. The earlier Act (1986) did not include provisions about e-commerce transactions.

4. Prohibition and Penalties for Misleading Advertisements

The provisions regarding the prohibition and penalties for misleading advertisements have been included in the Act. These provisions empower the CCPA to impose penalties on manufacturers involved in publishing misleading or false advertisements:

• First Offence: Fine up to ₹10 lakh and imprisonment up to 2 years.
• Repeated Offence: Fine up to ₹50 lakh and imprisonment up to 5 years.

5. Establishment of Consumer Disputes Redressal Commission (CDRC)

The Act includes provisions for the establishment of Consumer Disputes Redressal Commissions 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.

6. Provision for Alternate Dispute Resolution

The Act includes the provision for the Alternate Dispute Resolution mechanism. This mechanism has made the process of dispute dissolution simpler and quicker, allowing disputes to be resolved faster and reducing the pressure on consumer courts.

Dpharmguru’s exam insights:

The salient features of the Consumer Protection Act, 2019 are frequently tested. Remember: CCPA can recall unsafe goods; e-commerce transactions are covered; penalties for misleading advertisements are up to ₹50 lakh and 5 years; CDRCs exist at three levels; Alternate Dispute Resolution is provided. The six consumer rights are also important—memorise the acronym “SIC HRE” (Safety, Information, Choice, Heard, Redressal, Education)!

MEANING OF CONSUMER

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

• Buys any goods for consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any user of such goods with the approval of the buyer. Does not include a person who obtains such goods for resale or for any commercial purpose.
• Hires or avails of any service for 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 service with the approval of the first mentioned person. Does not include a person who avails of such service for any commercial purpose.

Dpharmguru’s exam insights:

The definition of consumer is frequently tested. Remember: A consumer buys goods or avails services for consideration; includes users with approval; excludes those who buy for resale or commercial purposes. The new definition includes e-commerce, teleshopping, and direct selling!

RIGHTS OF CONSUMERS

1. 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, appliances made of low-quality raw material, spurious and sub-standard drugs, etc. If any loss is sustained by any customer due to these products, such customer should be compensated.

2. Right to be Informed/Right to Representation

Every consumer has the right to possess all the information regarding the product and services such as quality, quantity, price, potency, date of manufacture, method of using the products, etc. Such information helps consumers make decisions about whether to purchase a certain product or service.

3. Right to Choose

Every customer has the right to select any product or service from the number of goods and services depending upon his/her choice. No producer can use any unfair means to influence the customer to change his/her choice. Any attempt in this regard will be considered as a violation of the customer’s right to choice.

4. Right to be Heard

Every customer has the right that his/her complaints are heard. This right enables a customer to file a complaint against every party that is deemed to be liable for any prejudicial act. Several consumer service cells have been formed by large organisations to enable this right.

5. Right to Seek Redressal

Every customer has the right to seek redressal that enables him/her to receive compensation against unfair trade practices of the seller. A customer can receive compensation through different methods such as taking back the defective product, refund of money, repairing the defective product, or replacing the product.

6. Right to Consumer Education

Every customer has the right to get education about the rights available to him/her in case of any loss due to defective goods and services. This education can be provided through various means initiated by the government:

• ‘Upbhokta Jagran’ — a quarterly magazine issued by the Ministry of Civil Supplies.
• ‘Sanrakshan Upbhokta Ka’ — a program telecasted by Doordarshan.
• Celebrating ‘Consumer Day’ on 15 March every year.

Dpharmguru’s exam insights:

The six consumer rights are frequently tested. Remember them as: Safety, Information, Choice, Heard, Redressal, and Education. Consumer Day is celebrated on 15 March every year—this is a specific fact often asked in exams!

IMPORTANCE OF THE ACT

1. From Consumer’s Point of View

• Consumer Ignorance: The Act educates consumers about their rights and interests, protecting them from loss caused by unawareness.
• Widespread Exploitation: Various unfair and fraudulent trade practices are adopted to exploit consumers. The Act protects consumers from such exploitation.
• Unorganised Consumers: The distribution pattern of consumers in India is unorganised. The Act protects all consumers spread unevenly.

2. From Business Point of View

• Long-Term Business Interest: Satisfying customers leads to long-term business growth. Word-of-mouth recommendations from satisfied customers attract more consumers.
• Regulation Benefits: Adhering to consumer protection regulations benefits businesses by maintaining trust and goodwill.
• Ethical Practices: Upholding consumer rights promotes ethical business practices and ensures fair competition.

CONSUMER DISPUTES REDRESSAL COMMISSION

A. District Commission

Section 28 specifies that a District Consumer Disputes Redressal Commission should be established by the State Government in every district.

Composition:

• A President
• Two other members (one of whom should be a woman)

• • Complaints where the aggregate value of goods or services and compensation claimed is not more than ₹20 lakhs.

• • Appeals can be filed before the State Commission within 30 days.

B. State Commission

Section 42 specifies that a State Consumer Disputes Redressal Commission should be established by the State Government in the State.

Composition:

• • A President

• • At least two other members (one of whom should be a woman)

• • Complaints where the aggregate value is more than ₹20 lakhs but less than ₹1 crore.

• • Appeals against the judgement of a District Commission.

• • Appeals can be filed before the National Commission within 30 days.

C. National Commission

Section 53 specifies that a National Consumer Disputes Redressal Commission should be established by the Central Government.

Composition:

• • A President

• • At least four other members (one of whom should be a woman)

• • Complaints where the aggregate value is more than ₹1 crore.

• • Appeals against the judgement of a State Commission.

• • Appeals can be filed before the Supreme Court of India.

Dpharmguru’s exam insights:

The CDRC structure is frequently tested. Remember the jurisdiction limits: District Commission (up to ₹20 lakhs), State Commission (₹20 lakhs to ₹1 crore), National Commission (above ₹1 crore). Also remember the composition—each commission must have at least one woman member. Appeals go to the next higher level, and the National Commission appeals go to the Supreme Court!

COMPARISON: CONSUMER PROTECTION ACT 1986 VS 2019

Feature	CPA 1986	CPA 2019
E-Commerce Coverage	Not covered	Explicitly covered
CCPA	Not established	Established
Misleading Advertisements	Limited provisions	Comprehensive provisions with penalties
Alternate Dispute Resolution	Not provided	Provided
Consumer Rights	Six rights	Six rights (expanded)

FREQUENTLY ASKED QUESTIONS (FAQs)

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

The Consumer Protection Act, 2019 was passed by the President on 6 August 2019, replacing the earlier Consumer Protection Act, 1986.

2. 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.

3. What is the Central Consumer Protection Authority (CCPA)?

CCPA is a body established under the Act to promote, protect, and enforce consumer rights. It can investigate violations, recall unsafe goods, and impose penalties for misleading advertisements.

4. What is the penalty for misleading advertisements?

For the first offence: fine up to ₹10 lakh and imprisonment up to 2 years. For repeated offence: fine up to ₹50 lakh and imprisonment up to 5 years.

5. What is the jurisdiction of the District Commission?

The District Commission has jurisdiction over complaints where the aggregate value of goods or services and compensation claimed is not more than ₹20 lakhs.

6. What is the jurisdiction of the State Commission?

The State Commission has jurisdiction over complaints where the aggregate value is more than ₹20 lakhs but less than ₹1 crore.

7. What is the jurisdiction of the National Commission?

The National Commission has jurisdiction over complaints where the aggregate value is more than ₹1 crore.

8. Does the Act cover e-commerce transactions?

Yes. The Consumer Protection Act, 2019 explicitly covers e-commerce transactions, including online purchases, teleshopping, direct selling, and multilevel marketing.

SUMMARY

The Consumer Protection Act, 2019 is a comprehensive legislation that replaced the earlier 1986 Act to address the evolving needs of consumers. Passed on 6 August 2019, the Act introduces several new provisions, including the establishment of the Central Consumer Protection Authority (CCPA), coverage of e-commerce transactions, and enhanced penalties for misleading advertisements.

The Act provides six fundamental rights to consumers: Safety, Information, Choice, Heard, Redressal, and Education. It establishes a three-tier Consumer Disputes Redressal Commission at the District, State, and National levels, with jurisdiction limits of ₹20 lakhs, ₹1 crore, and above ₹1 crore respectively.

The Act also includes provisions for Alternate Dispute Resolution to make the process of dispute dissolution simpler and quicker. It is important for both consumers and businesses—it protects consumers from exploitation while helping businesses build trust and goodwill.

As I always tell my students: “Consumer protection is the foundation of a fair marketplace. The Consumer Protection Act, 2019 ensures that the voice of every consumer is heard and that businesses are held accountable for their actions. Understanding this Act is essential for every pharmacist and healthcare professional.”

REFERENCES AND FURTHER READING

• • Consumer Protection Act, 2019. Government of India.

• • Ministry of Consumer Affairs, Food and Public Distribution. (2022). Guidelines on Consumer Protection. Government of India.

• • Central Consumer Protection Authority (CCPA). (2022). Official Website. Retrieved from https://consumeraffairs.nic.in.

• • National Consumer Disputes Redressal Commission (NCDRC). (2022). Official Website. Retrieved from https://ncdrc.nic.in.

• • United Nations Conference on Trade and Development (UNCTAD). (2022). Guidelines on Consumer Protection. Retrieved from https://unctad.org.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consumer protection laws and regulations may change over time—always refer to the latest official guidelines and consult qualified professionals for specific matters.

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