Consumer Protection Act, 2017

Anshu, Galgotias university

ABSTRACT

The Consumer Protection Act, 2017 replaces the Consumer Protection Act, 1986 and brings significant changes in the legal landscape of consumer rights in India. This comprehensive bill seeks to protect the interests of consumers by establishing institutions for the fair and effective resolution of consumer disputes. The Act introduces important provisions and frameworks to strengthen consumer rights and create stronger protection mechanisms. Among the highlights of the Consumer Protection Act 2017 is the establishment of the Central Consumer Protection Authority (CCPA) to deal with matters related to violation of consumer rights, unfair trade practices directly and false advertisements or misleading the law. It also introduces the concept of product liability, which holds manufacturers, service providers and consumers responsible for damages caused to consumers as a result of defective products or defective services. The law also expands the mandate of the Consumer Ombudsman and simplifies how consumers seek relief by allowing consumers to file complaints electronically. It also introduces arbitration as a way to resolve conflicts, with the aim of speeding up the resolution process and reducing the burden on the consumer courts. The law strengthens consumer protection by introducing a class action provision, which allows groups of similarly aggrieved consumers to file a single complaint.

Keywords: Consumer Protection Act, 2017, Consumer Rights, Consumer Protection Center, Product Support, Consumer Redress, Arbitration, Class Action, Misleading Advertising in the Marketplace.

OBJECTIVE

The main objectives of this article are:

To understand the evolution of consumer protection law.
To trace the historical development of consumer protection law in India and show the transition from the Consumer Protection Act of 1986. According to the Consumer Protection Act, 2017.To analyze the main provisions of the Consumer Protection Act, 2017.
Assess how new laws will improve consumer rights and their impact on businesses, focusing on compliance, accountability, and anti-trafficking.

INTRODUCTION

The moment a person enters this world, they begin consuming. Throughout his life, he consistently requires items such as clothes, milk, oil, soap, water, and numerous other necessities, which manifest in various forms. Therefore, we are all customers in the true meaning of the word. As consumers, we anticipate receiving value for our money in the form of appropriate quality, quantity, prices, and usage information.

The Government recognized the importance of safeguarding consumers from dishonest suppliers, leading to the creation of multiple laws for this specific reason. The Indian Contract Act, the Sale of Goods Act, the Dangerous Drugs Act, the Agricultural Produce (Grading and Marketing) Act, the Indian Standards Institution (Certification Marks) Act, the Prevention of Food Adulteration Act, the Standards of Weights and Measures Act, etc. are laws that partially safeguard consumer interests. Nevertheless, consumers must take the first step through a costly and time-consuming civil lawsuit as required by these regulations.

The main goal of enacting the Consumer Protection Act, 1986 was to make it easier and faster for consumers to address their complaints. The Act for the first time brought in the idea of ‘consumer’ and granted him specific new rights.

WHO IS CONSUMER?

A CONSUMER IS ANYONE WHO USES THE GOODS WITH THE BUYER’S AGREEMENT – If someone purchases goods, their family, relatives, and friends can also use them. Defects in goods may be encountered by anyone using the goods in real life.

The market orientation concept revolves around the customer, yet no differentiation has been made between the various customer roles. Every marketplace transaction involves a minimum of three roles for the customer:

LITERATURE REVIEW:

The Consumer Protection Act 2017 is an important law aimed at strengthening the rights of Indian consumers. This literature review provides an in-depth analysis of academic literature, legal commentary, and empirical research on the Act and examines the Act’s features, key principles, implications, and challenges. Background and Historical Context The transition from the Consumer Protection Act, 1986 to the Consumer Protection Act, of 2017 marks an important development in consumer rights in India.

The Central Consumer Protection Authority (CCPA): CCPA has the authority to deal with matters related to violation of consumer rights, inaccurate commercial activities, and misleading advertisements. It has the power to act on its own motion, issue recall orders, and impose penalties.

Product Liability: The Act outlines the concept of product liability, making manufacturers, service providers, and consumers liable for damages caused to consumers by defective products and services.

Digital and Electronic Complaint Filing: Understanding the digital world, the Act allows consumers to file complaints electronically, thereby increasing access to redressal culture.

Impact on consumer rights and businesses:- The Consumer Protection Act 2017 will have a significant impact on consumers and businesses.

THE CONSUMER’s RIGHTs :

1) demand and receive goods or services that meet the requirements, are safe for the consumer’s life, health and property, and whose possession and use are not prohibited;

2) receive the necessary and true information about the offered goods and services to make an informed choice and timely information about the risks associated with the goods or services;

3) receive consumer law and consumer information;

4) get advice and help if his rights have been violated.

5) request consideration of one’s interests and be represented through consumer associations and unions in making decisions shaping consumer policy.

THE CHANGING CONSUMER RELATIONSHIPS

Value for money. Consumers are not driven by price only. What they want is better value for their money. Other attributes than low price can have greater relevance and provide a basis for product differentiation.

A sense of strength. Consumers act in situations with abundant supply, numerous brands, and fierce competition in markets. Additionally, they are supported by strong and outspoken consumerists, environmentalists, NGOs, and human rights advocates, together forming what is known as “civil society”.

Importance of communication and connections. Individuals desire to have their voices heard and their perspectives comprehended. They desire individual relationships and tailored answers. Ideally, they prefer having “one-on-one” connections rather than “many-to-many” connections.

UNFAIR TRADE PRACTICE AND TRADE PRACTICE WITH RESTRICTIONS

In this where the consumer have the right to file a complaint if a trader engages in unfair or restrictive trade practices. An Unfair Trade Practice is defined as a trade practice under the Act that involves using unfair methods or deceptive practices to promote the sale, use, or supply of goods or services.

(i) inaccurately claims that the products meet a specific standard, quality, quantity, grade, composition, style or model;

(ii) gives a false impression that the services meet a specific standard, quality, or grade.

(iii) mistakenly presents any refurbished, used, upgraded, revitalized, or aged products as brand-new items;

(iv) implies that the goods or services possess qualities, features, or benefits that they actually do not possess.

(v) signifies that the seller or supplier has a sponsorship, approval, or affiliation that they actually do not possess.

CASE STUDY:-

Manjeet Singh Vs. National Insurance Company Ltd. & Anr:

In this instance, the appellant acquired a used truck through a Hire Purchase agreement. The respondent insurance company insured the vehicle. While he was driving the truck one day, a passenger requested him to pull over and provide a ride. After the driver stopped the truck, the passenger violently attacked him and drove away in the vehicle. A First Information Report was filed and the finance company was informed about the theft. Yet, the insurance company denied the claim due to a violation of the policy terms. The person filed a complaint with the District Consumer Disputes Forum, State Commission, and National Commission seeking compensation for their losses. Each one of them had turned down the case. Therefore, he eventually made his way to the Supreme Court.

Nizam Institute of Medical Sciences v Prasanth S. Dhananka & Ors

This case under the Consumer Protection Act involves a complaint of medical negligence regarding a 20-year-old engineering student admitted to NIMS for acute chest pain. Following multiple examinations and x-ray scans, a tumor was discovered. Even though it was uncertain if the tumor was malignant, the patient was recommended to have it surgically removed. Following the surgery, the patient experienced paralysis. Loss of control over lower limbs resulted in related complications like urinary tract infections and bedsores. The patient’s family held NIMS and the government of Andhra Pradesh responsible for negligence. The family also alleged that no pre-operative tests were performed and no neurosurgeon was present during the surgery. Consent was given only for the removal of the tumor, however, the doctors also excised ribs, the tumor mass, and caused damage to blood vessels resulting in paralysis.

CHALLENGES

Lack of awareness: Many consumers, especially those in rural and urban areas, are unaware of their rights under the new law. Lack of awareness can lead to measures not being taken to protect them.
Caseload: Consumer courts and commissions often hear cases and it takes time to resolve consumer disputes. The introduction of mediation is one way to solve this problem, but its effectiveness is unknown.
Infrastructure and resources: Aid agencies often lack the infrastructure and resources to adequately manage the increased workload brought by new regulations.
Security Issues: The move to digital platforms for filing complaints and conducting transactions has increased the risk of online fraud and data breaches. Ensuring the security of customer data is an important concern.

CONCLUSION

The Consumer Protection Act of 2017 is a significant law that empowers consumers to address unfair trade practices and inadequate products or services. It also offers consumer redressal through three levels, which is highly beneficial for addressing customer issues. By using knowledge, staying vigilant, and being open to change, we progress towards a more improved society. To exist, there must be agreement between producers and consumers in the market, which requires goodwill from all parties involved. The main aim of the Consumer Protection Act is to protect consumers’ rights and interests to make sure they are treated fairly. The Consumer Protection Act, 1986 protected the rights and interests of consumers. It introduced consumer disputes and redressal commissions dealing with compensation, product liability, and penalties. A three-tier system across the district, state, and centre made quality assurance, consumer education, and justice accessible to all.

The simplicity of submitting complaints under CPA 2017 and the lack of consequences for filing baseless or inaccurate complaints will significantly boost the amount of baseless cases against doctors and other service providers. Increased defensive medicine practices can lead to higher medical service costs.

Today, the Consumer Protection Act, 2017 protects the interests of the consumers.