Legal Knowledge Hub

Consumer Rights & Protection

Empowering consumers against unfair trade practices, defective goods, and deficiency in service under the Act of 2019.

Statutory Basis

Primary Act: The Consumer Protection Act, 2019

Key Sections: Sec 34 (Jurisdiction), Sec 82-87 (Product Liability), Chapter V (Mediation).

The Consumer Protection Act, 2019

The 2019 Act replaced the old 1986 Act, introducing stricter penalties for misleading ads, bringing e-commerce under its ambit, and establishing a Central Consumer Protection Authority (CCPA).

  • Right to Safety: Protection against hazardous goods and services.
  • Right to Information: Details about quality, quantity, price, and origin.
  • Right to Choice: Freedom to choose from a variety of products at competitive prices.
  • Right to be Heard: Grievances must be acknowledged and resolved.
  • Right to Redressal: Claim compensation for unfair trade practices.
  • Right to Consumer Education: Awareness of rights is protected by law.

What is "Deficiency in Service"? (Section 2(11))

It refers to any fault, imperfection, shortcoming, or inadequacy in the quality, nature, and manner of performance required to be maintained. Examples include:

  • Faulty Products: Defective electronics, vehicles, or household goods.
  • Medical Negligence: Poor hospital care or wrong treatment.
  • False Ads: Misleading claims or hidden charges.
  • Real Estate: Delayed possession or poor construction quality.
  • E-Commerce: Fake products, refusal to refund, or delivery fraud.

How to File a Complaint

You can file a complaint physically or online. Legal representation is optional; you can argue your own case.

  • Step 1: Send a legal notice to the service provider.
  • Step 2: If unresolved, file online at edaakhil.nic.in.
  • Step 3: Prepare documents (invoices, photos, email proofs).
Time Limit: You must file the complaint within 2 years from the cause of action.

Pecuniary Jurisdiction (Revised 2021)

The jurisdiction to file a complaint depends on the Value of Goods/Services Paid:

District

Up to ₹50 Lakh

State

₹50 Lakh - ₹2 Cr

National

Above ₹2 Cr

Product Liability (Sections 82-87)

This is a significant introduction in the 2019 Act. Manufacturers, Service Providers, and Sellers (including Amazon/Flipkart) can be held liable for harm caused by a defective product.

  • Manufacturer Liability: For design defects, manufacturing deviations, or lack of warnings.
  • Seller Liability: If they exercised control over packaging or if the manufacturer is untraceable.
  • E-Commerce: Cannot hide behind "intermediary" status for defective goods sold on their platform.

Practical Rights Every Indian Should Know

Beyond the courtroom, these are rights you can enforce in daily life:

Illegal "No Refund" Policies

Notices stating "Goods once sold cannot be taken back" are illegal and constitute an Unfair Trade Practice. If a product is defective, the seller MUST repair, replace, or refund.

Carry Bag Charges

Retailers cannot charge extra for carry bags (with their branding) if you buy goods from them. Courts have ruled this as deficient service (Bata India Case).

MRP Violations

No seller can charge more than the Maximum Retail Price (MRP). This includes "cooling charges" for water bottles or "service fees" unless clearly optional.

Education Fees Refund

Colleges/Schools cannot retain original certificates or full annual fees if a student withdraws. They must refund the balance fee (UGC Guidelines & Sehgal School Case).

10 Landmark Supreme Court & NCDRC Judgments

These rulings have shaped consumer law in India:

1. Medical Negligence
IMA vs. V.P. Shantha (1995)

Brought doctors/hospitals under Consumer Act. Paid medical care is a 'service', making practitioners liable for negligence.

2. Housing Delays
Lucknow Dev. Authority vs. M.K. Gupta (1994)

Statutory housing boards are liable for delay in possession. Homebuyers can claim compensation for mental agony.

3. Insurance Claims (Delay)
Om Prakash vs. Reliance General Insurance (2017)

A genuine claim cannot be rejected purely on the technical ground of 'delay in intimation' (e.g., 2-3 days late).

4. Student Fee Refund
Sehgal School of Competition vs. Dalbir Singh (2009)

Coaching centers cannot charge lumpsum fees upfront for 2 years and refuse refund if student leaves midway.

5. Bank Recovery Harassment
ICICI Bank vs. Shanti Devi Sharma (2008)

Banks are vicariously liable for harassment by recovery agents. "Musclemen" tactics to recover loans are illegal.

6. One-Sided Contracts
Pioneer Urban Land vs. Govindan Raghavan (2019)

Builder-buyer agreements that are one-sided/unfair are not binding. Buyer can exit and claim refund with interest.

7. Carry Bag Charges (Retail)
Bata India Ltd. vs. Dinesh Prasad Raturi (2019)

Charging distinct prices for carry bags (especially with brand logos) is an unfair trade practice.

8. Electricity is Service
Karnataka Power Trans. vs. Ashok Iron Works (2009)

Supply of electricity by a board constitutes a 'service'. Consumers can sue for faulty supply/deficiency.

9. Jurisdiction in Online Age
SpiceJet Ltd. vs. Ranju Aery (2017)

For online transactions, cause of action arises where the consumer resides/receives the ticket, not just company HQ.

10. Hidden Exclusion Clauses
Texco Marketing vs. TATA AIG (2022)

Insurance exclusion clauses cannot be hidden in fine print. If not communicated clearly, they cannot be enforced.

Documents Checklist

  • Bill / Invoice / Receipt of Purchase
  • Warranty Card (for goods)
  • Correspondence complaining about the defect
  • Service Request Numbers (Job sheets)
  • Copy of Legal Notice sent (Mandatory for many cases)

Cheated by a Seller or Company?

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