A curated selection of the Consumer Protection Act's most-used provisions — consumer rights, the redressal commission structure, complaint procedure, and product liability. Not the complete text; verify against India Code before citing.
Provided for study purposes. Cross-check against the official source (India Code / the relevant government gazette) before citing or relying on this text — amendments and corrections may not be reflected here.
"Defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force, or as claimed by the trader in any manner whatsoever in relation to any goods or product.
"Deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force, or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service, and includes any act of negligence, omission or commission, or deliberate withholding of relevant information by such person.
"Unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or services, adopts any unfair method or deceptive practice, including making a false representation, giving a false guarantee, or offering gifts, prizes or other items with the intention of not providing them as offered.
A complaint means any allegation in writing, made by a complainant, that an unfair or restrictive trade practice has been adopted, that the goods bought or agreed to be bought suffer from one or more defects, that the services hired or availed of suffer from a deficiency, that a trader or service provider has charged a price in excess of that fixed by law or displayed, that goods or services which are hazardous to life and safety are being offered for sale, or that a claim for product liability action lies against a product manufacturer, seller or service provider.
"Consumer" means any person who buys any goods for a consideration which has been paid or promised, or under any system of deferred payment, and includes any user of such goods other than the person who buys them for consideration, when such use is made with the approval of the buyer; or who hires or avails of any service for a consideration, and includes any beneficiary of such service; but does not include a person who obtains such goods or avails such service for any commercial purpose.
"Consumer rights" includes — the right to be protected against marketing of goods, products or services which are hazardous to life and property; the right to be informed of the quality, quantity, potency, purity, standard and price of goods, products or services; the right to be assured access to a variety of goods, products or services at competitive prices, wherever possible; the right to be heard and to be assured that the consumer's interests will receive due consideration; the right to seek redressal against unfair or restrictive trade practices; and the right to consumer awareness.
The Central Government shall, by notification, establish a Central Authority to be known as the Central Consumer Protection Authority to regulate matters relating to violation of consumer rights, unfair trade practices, and false or misleading advertisements which are prejudicial to the interests of the public and consumers, and to promote, protect and enforce the rights of consumers as a class.
The Central Consumer Protection Authority may, among other things — inquire into or investigate violations of consumer rights or unfair trade practices; recall goods or withdraw services that are dangerous, hazardous or unsafe; order reimbursement of the price paid; direct discontinuation of unfair trade practices and false or misleading advertisements; and impose penalties for false or misleading advertisement on the manufacturer, endorser or publisher.
The District Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed such amount as may be prescribed. A complaint may be instituted in the District Commission within the local limits of whose jurisdiction the opposite party resides or carries on business, or where the cause of action arises, or where the complainant resides or personally works for gain. Under the Jurisdiction Rules notified in 2021, the District Commission hears complaints where the consideration paid does not exceed fifty lakh rupees.
A complaint may be filed with the District Commission by the consumer to whom the goods are sold or delivered or agreed to be sold or delivered, or the service is provided or agreed to be provided; any registered consumer association; the Central or a State Government; one or more consumers, on behalf of numerous consumers having the same interest; or, in case of death of a consumer, their legal heir or representative.
The District Commission shall, on admission of a complaint, refer a copy to the opposite party, who must give their version within thirty days, extendable by up to fifteen days. Where goods are alleged to be defective and the defect cannot be determined without analysis, a sample may be sent to an appropriate laboratory. Every complaint shall be heard expeditiously and endeavoured to be decided within three months from the date of receipt of notice by the opposite party, or five months where the goods require analysis or testing.
If the District Commission is satisfied that the goods complained against suffer from any defect, or the service is found to be deficient, it may direct the opposite party to remove the defect, replace the goods, return the price paid, pay compensation for loss or injury suffered, discontinue the unfair trade practice, or withdraw the hazardous goods from being offered for sale.
The State Commission has jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds the amount prescribed for the District Commission but does not exceed such higher amount as may be prescribed, and appeals against the orders of any District Commission within the State. It may also call for the records of and pass appropriate orders in any consumer dispute pending before or decided by a District Commission where that Commission has exercised a jurisdiction not vested in it or acted with material irregularity. Under the Jurisdiction Rules notified in 2021, the State Commission hears complaints where the consideration paid exceeds fifty lakh rupees but does not exceed two crore rupees. These ceilings are set by rules and are revised from time to time — check the current notification before filing.
The National Commission has jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds such amount as may be prescribed, appeals against orders of any State Commission and of the Central Authority, and revision of orders of a State Commission where it has exercised a jurisdiction not vested in it or acted with material irregularity. Under the Jurisdiction Rules notified in 2021, the National Commission hears complaints where the consideration paid exceeds two crore rupees. This ceiling is set by rules and is revised from time to time — check the current notification before filing.
A District Commission, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action arose. A complaint may nevertheless be entertained after that period if the complainant satisfies the Commission that they had sufficient cause for not filing within it, and the reasons for condoning the delay are recorded.
The State Government shall establish, by notification, a consumer mediation cell to be attached to each of the District Commissions and the State Commission of that State. The Central Government shall establish, by notification, a consumer mediation cell to be attached to the National Commission and each of its regional Benches.
This Chapter shall apply to every claim for compensation under a product liability action by a complainant for any harm caused by a defective product manufactured by a product manufacturer, or serviced by a product service provider, or sold by a product seller.
A product liability action may be brought by a complainant against a product manufacturer, a product service provider or a product seller, as the case may be, for any harm caused to them on account of a defective product.
A product manufacturer shall be liable in a product liability action if the product contains a manufacturing defect, is defective in design, deviates from manufacturing specifications, does not conform to an express warranty, or fails to contain adequate instructions for correct use or adequate warnings regarding improper or incorrect usage.
A product service provider is liable in a product liability action if the service provided was faulty, imperfect, deficient or inadequate in quality, nature or manner of performance as required by law or by contract; if there was an act of omission, commission or negligence, or conscious withholding of information, which caused harm; if adequate instructions or warnings were not issued to prevent harm; or if the service did not conform to express warranty or the terms of the contract.
A product seller is not liable where the product has been misused, altered or modified. A product manufacturer is not liable for failure to instruct or warn about a danger that is obvious or commonly known, or that the user ought to have known given their role, or where the product was legally meant to be used only under an expert's supervision.
Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; for every subsequent offence, with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees.
Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers is punishable with imprisonment of up to two years and a fine of up to ten lakh rupees; for every subsequent offence, imprisonment of up to five years and a fine of up to fifty lakh rupees.
The provisions of this Act are in addition to, and not in derogation of, the provisions of any other law for the time being in force.