Consumer Protection & Law: A General Study From India's Perspective

INTRODUCTION
When a consumer buys a product, they are endowed with the basic right to hold the seller accountable for any deficiency in the product that cannot be reasonably foreseen by them. Such a right is necessary to ensure that consumers feel that their voices are  heard and their problems are addressed, something that plays a huge role in ensuring that the economy stays intact. Consumer protection measures ensure that the products produced by companies meet a minimum standard of quality and safety. It keeps companies from resorting to unfair business practices like high prices and misleading advertisements.
Consumer protection measures ensure that businesses compete fairly and safely, which goes on to help maintain the stability of the Indian economy. Without a proper channel to address the issues of the consumers, consumers would eventually stop buying those products that do not meet a minimum standard, while companies would continue to increase the prices of these products to a point that no one would be ready to buy them except those who are in dire need for the same. This would unarguably lead to the collapse of the economy. To ensure that such a situation does not arise in the Indian subcontinent, the Consumer Protection Act was passed, which has helped safeguard the rights of Indian consumers and encouraged them to raise their voices against subpar products.

HISTORY OF THE ACT
The Consumer Protection Act, first enacted in 1986, is a milestone in Indian socio-economic legislation. It serves as the guardian of consumers against unfair business practices and subpar products, and ensures that the economy stays intact by providing a minimum standard that has to be met by companies to survive in the country.
Prior to this Act, the Government of India had issued various legislations like the Indian Contract Act, the Sale of Goods Act, the Dangerous Drugs Act, the Indian Standards Institution (Certification Marks) Act, the Prevention of Food Adulteration Act, etc., all with the intention of protecting customers from unethical sellers.
The Consumer Protection Act, however, was the first piece of legislation that provided quicker and easier access to consumer grievance redressal measures. The definition of the term ‘consumer’ was first given in this Act, and also conferred certain rights to this ‘consumer’. Any person who came within the ambit of ‘consumer’ could enjoy the rights conferred on them by this legislation.

ESSENTIAL ELEMENTS AND FEATURES OF THE ACT
This Act was enacted with the intention of providing better protection to the interests of consumers and to establish consumer councils and other institutions to settle disputes between the consumers and sellers.

●    DEFINITION OF CONSUMER IN THE ACT
A consumer is defined in the Consumer Protection Act, 1986, in two ways, both from the standpoint of a good and from that of a service. With respect to a good, a consumer is any person who buys a good for a consideration that has been paid, or promised, or partly paid and partly promised, or under any system of delayed payment, except in cases where the good is obtained for a commercial purpose.
With respect to a service, a consumer is any person who hires or avails the services offered by another for a consideration that has been paid, promised, or partly paid and partly promised, or under any other system of delayed payment, except in cases where the service is obtained for commercial purposes.
The term ‘goods’ here means any good as mentioned in the Sale of Goods Act, 1930, which includes every kind of movable property other than actionable claims. Similarly, a ‘service’ here means a service of any description that is offered to potential users, and includes banking, financing, insurance, transport, processing, housing, construction, etc.
●    WHO CAN FILE A COMPLAINT
Any aggrieved consumer or consumer association to whom such goods are sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided, irrespective of whether they are a part of the association, can file a complaint to the District Forum. Even a group of consumers with the same interest may file a complaint with the District Forum, after obtaining permission to do the same from the Forum, on behalf of it or for the benefit of all the consumers interested in it. The Central or State government too shall file a complaint either in its individual capacity or as a representative of the interests of the consumers in general. Such a complaint shall be made on a plain paper, either handwritten or typed, without any stamp duty or court fee.
●    GROUNDS AGAINST WHICH A COMPLAINT CAN BE FILED
The Consumer Protection Act lists out the grounds against which a consumer may file their complaint in Section 2(1)(c) of itself, wherein it defines a complaint and the grounds that can institute the same. The grounds are:
1.    Any unfair or restrictive trade practice adopted by the service provider;
2.    If the goods bought by the consumer suffer from one or more defects;
3.    If the services availed suffer from any deficiency;
4.    If the seller charges an excess price than what is permissible by law, displayed on the goods, displayed on the price list exhibited by him, or than what was agreed to by both the parties;
5.    If the goods or services offered for sale are hazardous to life and safety when used, and is in contravention to any safety laws that need to be complied with, about which the trader could have known with due diligence;
●    WHERE TO FILE COMPLAINTS
Consumers can file complaints against any malpractices followed by companies in the District Forum where the value of the goods and the compensation claimed does not exceed an amount of rupees twenty lakhs. For claims above rupees twenty lakhs but below one crore, complaints can be filed in the State Commission, and claims amounting to a value above rupees one crore can be filed in the National Commission. If there is only one opposite party, the complaint must be filed in quadruplicate in the District or State Commission.
●    RELIEFS AVAILABLE TO CONSUMERS
As per Section 14 of the Act, if the District Forum is satisfied that the goods in question actually suffer from any of the defects mentioned in the complaint or if any of the allegations made in the complaint are true, it has the right to issue an order to the following effects:
1.    To remove the defects pointed out by an appropriate laboratory;
2.    To replace the good with a new good that is free from the defect;
3.    To return to the complainant the price or the charges paid by the complainant;
4.    To pay an amount as compensation to the consumer for any loss that may be suffered by them due to the negligence of the opposite party;
5.    To remove the defects or deficiencies in the services in question;
6.    To discontinue the unfair trade practice and to not repeat them;
7.    To not offer hazardous goods for sale;
8.    To withdraw the hazardous goods from sale;

LEGISLATIVE INTENT BEHIND THE ACT
The Consumer Protection Act, 1986, was enacted to provide better protection to the interests of consumers and to establish consumer councils and other authorities to settle disputes that may arise. Prior to the Consumer Protection Act, consumer protection laws were scattered throughout various legislations and they lacked conformity which led to confusion regarding their interpretation. The Act was a way to resolve these issues and bring conformity to the consumer protection laws scattered throughout various legislations, and it also gave a meaning to the term ‘consumer’ and provided them with various rights.

DRAWBACKS OF THE ACT
The Consumer Protection Act, 1986, which tried to address consumer grievances, had a large amount of drawbacks that resulted in its implementation being hindered.
1.    The Act does not apply to mandatory services like water supply that are provided by state agencies;
2.    The Act only covered two clauses related to the supply of hazardous substances;
3.    It focused on the supply of ineffective goods but no restrictions were imposed on those who produced it;
4.    The President lacked the power to take up such cases that had the potential to affect a large amount of people;
5.    A consumer did not include those that bought goods or availed services through online means;
6.    Advertisement in this Act only included physical advertisements;
7.    Did not cover online transactions;

MAJOR AMENDMENTS TOWARDS ITS RECTIFICATION
The 2019 amendment to the Consumer Protection Act resolved one of the major issues that plagued the 1986 Act, which was that it did not cover online transactions. With the 2019 amendment, the Act expanded the definition of ‘consumer’ to include those that bought goods or services online, and covered both online transactions and online advertisements in its ambit.

CONSUMER PROTECTION ACT IN THE MEDICAL PROFESSION
A confusion existed on the nature of the relationship between the doctor and the patient, as it was unclear whether the Consumer Protection Act covered this relationship. In the judgment issued by the Honourable Supreme Court in the case of Indian Medical Association v. V P Shantha, the Court held that the relationship between a doctor and a patient would come under the ambit of a service under the Consumer Protection Act, 1986. In the draft bill of the 2019 amendment to the Consumer Protection Act, the word ‘health services’ was included, which was dropped in the final bill. This raised confusion as to the inclusion of medical services under the ambit of a ‘service’ under the Consumer Protection Act. It was later clarified that only two types of services were excluded from the definition of services in the Consumer Protection Act: those which are free and those which are personal. Medical services would come under the ambit of ‘service’ even if they are free if other people pay for the same service. Similarly, a medical service is a ‘contract for personal service’ which would come under the Consumer Protection Act, 2019, since it was dependent on the skill, knowledge, and discretion of an individual.

COMPARATIVE ANALYSIS WITH CONSUMER PROTECTION ACT, 2019
The Consumer Protection Act, 2019, further strengthens the provisions for consumer protection and ensures that the laws and rules regarding consumer protection are updated and relevant in the current world. The new Act broadens its scope by including online platforms in its ambit, thereby widening its coverage in the area of consumer protection. It now serves as a comprehensive piece of legislation that covers all aspects related to consumer protection. One of the main features in the 2019 amendment is that it widened the definition of ‘consumer’ to include those consumers who bought or availed services online. The definition of advertisement now includes audio or visual publicity, representation, endorsement, or pronouncement that are made through electronic media. 
The Consumer Protection Act, 2019, establishes a Central Consumer Protection Authority to regulate matters relating to false or misleading advertisement. E-commerce transactions also now come under the ambit of the Consumer Protection Act, which defines e-commerce transactions as those transactions that involve buying or selling goods through a digital network. The 2019 amendment also updated certain provisions in the old act to make it more relevant to the current world, such as increasing the maximum amount of money till which each Forum shall have jurisdiction. The District Commission which only had jurisdiction on cases not exceeding an amount of Rs. 20 Lakhs now have jurisdiction over cases not exceeding an amount of Rs. One Crore.
Similarly, MRP was a major criterion in the previous act to decide jurisdiction, while in the new act, the discounted price or the actual selling price is used as the criterion to decide jurisdiction. The 2019 amendment also allows mediation as a method of alternative resolution to settle disputes between the parties, thereby reducing the burden on these forums. The new act also gives the authority to declare unfair terms and conditions as a null contract to the State and National Commissions. The authorities under the new act are also different from the previous one, namely the District Commission, State Commission, and the National Consumer Dispute Redressal Commission. The composition of the State Commission was also widened to include two new members, thus increasing its total composition to five.

RELEVANT CASE LAWS
1.    Experion Developers Pvt. Ltd. v. Sushma Ashok Shiroor (2019)
The Supreme Court in this case held that a consumer invoking the jurisdiction of a consumer forum can seek such relief as they deem appropriate. They can seek a refund of the money with interest and compensation. If the consumer prays for a refund without any alternative prayers, the consumer forum may grant such prayer after looking into the merits of the case. 
2.    Shrikant G. Mantri v. Punjab National Bank (2016)
The Supreme Court held that a person availing a commercial service will have to establish that the services were availed for the sole purpose of earning his livelihood by means of self employment to come under the ambit of ‘consumer’ as per the Consumer Protection Act.
3.    Arun Bhatiya v. HDFC Bank and Ors. (2022)
In this case, the Supreme Court held that a person who avails any service from a bank would come under the purview of a ‘consumer’ as defined in the Consumer Protection Act, and therefore, the consumer may seek such remedies as provided in the Act.

CONCLUSION
The Consumer Protection Act in itself is a major milestone for the Indian consumers as it provides them with a way to ensure that their grievances are addressed and that they are not exploited by the companies. This Act provides protection from malpractices employed by companies with the intention of any unfair gain. It allows consumers to get the goods they bought from these companies to be replaced upon finding any defect in it, or ask for compensation for the same. The Consumer Protection Act consolidated all the provisions that were scattered throughout various legislations into one, and also provided new provisions in the interest of consumer protection.