Consumer Act. 2019
MINISTRY OF LAW AND JUSTICE (Legislative
Department)
New Delhi, the 9th August, 2019/Shravana 18, 1941 (Saka)
The following Act of Parliament received
the assent of the President on the 9th August, 2019, and is hereby published
for general information:—
THE CONSUMER PROTECTION ACT, 2019
NO. 35 OF 2019 [9th
August, 2019.]
An Act to provide for protection of the
interests of consumers and for the said purpose, to establish authorities for
timely and effective administration and settlement of consumers' disputes and
for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the
Seventieth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. (1) This Act may
be called the Consumer Protection Act, 2019.
(2) It extends to the whole of India except the
State of Jammu and Kashmir.
(3) It shall
come into force on such date as the Central Government may, by notification,
appoint and different dates may be appointed for different States and for
different provisions of this Act and any reference in any such provision to the
commencement of this Act shall be construed as a reference to the coming into
force of that provision.
(4) Save as
otherwise expressly provided by the Central Government, by notification, this
Act shall apply to all goods and services.
2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— 2. In this Act, unless the context otherwise requires,—
(1) "advertisement"
means any audio or visual publicity, representation, endorsement or pronouncement
made by means of light, sound, smoke, gas, print, electronic media, internet or
website and includes any notice, circular, label, wrapper, invoice or such
other documents;
(2) "appropriate laboratory" means a laboratory or an organisation—
(i) recognised by the Central Government;
or
(ii) recognised by a State Government, subject to such
guidelines as may be issued by the Central Government in this behalf;
or
(iii) established by or under any
law for the time being in force, which is maintained, financed or aided by the
Central Government or a State Government for carrying out analysis or test of
any goods with a view to determining whether such goods suffer from any defect;
(3) "branch office" means—
(i) any office or place of work described as a branch by the establishment;
or
(ii) any establishment carrying on either the same or substantially the same activity
carried on by the head office of the establishment;
(4) "Central Authority"
means the Central Consumer Protection Authority established under section 10;
(5) "complainant"
means—
(i) a consumer;
or
(ii) any voluntary
consumer association registered under any law for the time being in force;
or
(iii) the Central
Government or any State Government;
or
(iv) the Central
Authority;
or
(v) one or more consumers, where there are numerous consumers having the same interest;
or
(vi) in case of death of a consumer, his legal heir or legal representative;
or
(vii) in case of a consumer being a minor, his parent or legal guardian;
(6) "complaint"
means any allegation in writing, made by a complainant for obtaining any relief
provided by or under this Act, that—
(i) an unfair contract or unfair trade practice or a restrictive trade practice has
been adopted by any trader or service provider;
(ii) the goods bought by him or agreed to be bought by him suffer from one or more
defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him suffer
from any deficiency;
(iv) a trader or a service provider, as the case may be, has charged for the goods or
for the services mentioned in the complaint, a price in excess of the price—
(a) fixed by or under any law for the time being in force;
or
(c)
displayed
on the goods or any package containing such goods;
or
(c) displayed on the price list exhibited by him by or under any law for the time being in
force;
or
(d) agreed between the parties;
(v) the goods, which are hazardous to life and safety when used, are being offered for
sale to the public—
(a) in contravention of standards relating to
safety of such goods as required to be complied with, by or under any law for
the time being in force;
(b) where the trader knows that the goods so offered are unsafe to the public;
(vi) the services which are
hazardous or likely to be hazardous to life and safety of the public when used,
are being offered by a person who provides any service and who knows it to be
injurious to life and safety;
(vii) a claim for product liability action lies against the product manufacturer,
product seller or product service provider, as the case may be;
(7) "consumer"
means any person who—
(i) buys any goods for a 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 other than the person who
buys such goods for consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment, when such use is made with
the approval of such person, but does not include a person who obtains such
goods for resale or for any commercial purpose;
or
(ii) hires or avails of any
service for a 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 other than the person who hires or avails of the
services for consideration paid or promised, or partly paid and partly
promised, or under any system of deferred payment, when such services are availed
of with the approval of the first mentioned person, but does not include a
person who avails of such service for any commercial purpose.
Explanation.—For the
purposes of this clause,—
(a) the expression
"commercial purpose" does not include use by a person of goods bought
and used by him exclusively for the purpose of earning his livelihood, by means
of self-employment;
(b) the expressions "buys any goods" and "hires or avails any
services" includes offline or online transactions through electronic means
or by teleshopping or direct selling or multi-level marketing;
(8) "consumer dispute" means a dispute where the person against whom a complaint has
been made, denies or disputes the allegations contained in the complaint;
(9) "consumer rights" includes,—
(i) the right to be
protected against the marketing of goods, products or services which are
hazardous to life and property;
(ii) the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices;
(iii) the right to be assured, wherever possible, access to a variety of goods, products
or services at competitive prices;
(iv) the right to be
heard and to be assured that consumer's interests will receive due
consideration at appropriate fora;
(v) the right to seek redressal against unfair trade practice
or restrictive trade practices or unscrupulous exploitation of consumers; and
(vi) the right to consumer awareness;
(10) "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 under any contract, express or implied or as is claimed by
the trader in any manner whatsoever in relation to any goods or product and the
expression "defective" shall be construed accordingly;
(11) "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—
(i) any act of negligence or omission or commission by such person which causes loss or
injury to the consumer; and
(ii) deliberate withholding of relevant information by such person to the consumer;
(12)
"design", in relation to a product, means the intended or known
physical and material characteristics of such product and includes any intended
or known formulation or content of such product and the usual result of the
intended manufacturing or other process used to produce such product;
(13) "direct selling" means marketing, distribution and sale of goods or provision of
services through a network of sellers, other than through a permanent retail
location;
(14) "Director-General" means the
Director-General appointed under sub-section (2) of section 15;
(15) "District Commission" means a
District Consumer Disputes Redressal Commission
established under sub-section (1) of section 28;
(16) "e-commerce" means
buying or selling of goods or services including digital products over digital
or electronic network;
(17) "electronic service
provider" means a person who provides technologies or processes to enable
a product seller to engage in advertising or selling goods or services to a
consumer and includes any online market place or online auction sites;
(18) "endorsement",
in relation to an advertisement, means—
(i) any message, verbal statement, demonstration;
or
(ii) depiction of the name, signature, likeness or other identifiable personal characteristics
of an individual;
or
(iii) depiction of the name or seal of any institution or organisation,
which makes the consumer to believe that it reflects the opinion, finding or
experience of the person making such endorsement;
(19) "establishment"
includes an advertising agency, commission agent, manufacturing, trading or any
other commercial agency which carries on any business, trade or profession or
any work in connection with or incidental or ancillary to any commercial
activity, trade or profession, or such other class or classes of persons
including public utility entities in the manner as may be prescribed;
(20)
"express warranty" means any material statement, affirmation of fact,
promise or description relating to a product or service warranting that it
conforms to such material statement, affirmation, promise or description and
includes any sample or model of a product warranting that the whole of such
product conforms to such sample or model;
(21) "goods" means
every kind of movable property and includes "food" as defined in
clause (j) of sub-section (1) of section 3 of the Food Safety and
Standards Act, 2006;
(22) "harm",
in relation to a product liability, includes—
(i)
damage to any property, other than the product itself;
(ii) personal injury, illness or death;
(iii) mental agony or emotional distress attendant to personal injury or illness or damage
to property;
or
(iv) any loss of consortium or
services or other loss resulting from a harm referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii),
but shall not include any harm caused to a product itself or any damage to the
property on account of breach of warranty conditions or any commercial or
economic loss, including any direct, incidental or consequential loss relating
thereto;
(23) "injury"
means any harm whatever illegally caused to any person, in body, mind or
property;
(24) "manufacturer"
means a person who—
(i)
makes any goods or parts thereof;
or
(ii)
assembles any goods or parts thereof made by others;
or
(iii) puts or causes to be put his own mark on any goods made by any other person;
(25) "mediation"
means the process by which a mediator mediates the consumer disputes;
(26) "mediator"
means a mediator referred to in section 75;
(27) "member"
includes the President and a member of the National Commission or a State
Commission or a District Commission, as the case may be;
(28) "misleading advertisement" in relation to any product or service, means an
advertisement, which—
(i) falsely describes such product or service;
or
(ii) gives a false
guarantee to, or is likely to mislead the consumers as to the nature,
substance, quantity or quality of such product or service;
or
(iii) conveys an express
or implied representation which, if made by the manufacturer or seller or
service provider thereof, would constitute an unfair trade practice;
or
(iv) deliberately conceals important information;
(29) "National
Commission" means the National Consumer Disputes Redressal Commission established under sub-section (1) of section 53;
(30) "notification"
means a notification published in the Official Gazette and the term
"notify" shall be construed accordingly;
(31) "person"
includes—
(i) an individual;
(ii) a firm whether registered or not;
(iii) a Hindu undivided family;
(iv) a co-operative society;
(v) an association of
persons whether registered under the Societies Registration Act, 1860 or not; 21 of 1860.
(vi) any corporation, company or a body of individuals whether incorporated or not;
(vii) any artificial juridical person, not falling within any of the preceding
sub-clauses;
(32) "prescribed"
means prescribed by rules made by the Central Government, or, as the case may
be, the State Government;
(33)
"product" means any article or goods or substance or raw material or
any extended cycle of such product, which may be in gaseous, liquid, or solid
state possessing intrinsic value which is capable of delivery either as wholly
assembled or as a component part and is produced for introduction to trade or
commerce, but does not include human tissues, blood, blood products and organs;
(34) "product
liability" means the responsibility of a product manufacturer or product
seller, of any product or service, to compensate for any harm caused to a consumer
by such defective product manufactured or sold or by deficiency in services
relating thereto;
(35) "product liability action" means a complaint filed by a person before a District
Commission or State Commission or National Commission, as the case may be, for
claiming compensation for the harm caused to him;
(36) "product manufacturer" means a person who—
(i)
makes any product or parts thereof;
or
(ii)
assembles parts thereof made by others;
or
(iii) puts or causes to be put his own mark on any products made by any other person;
or
(iv) makes a product and sells, distributes,
leases, installs, prepares, packages, labels, markets, repairs, maintains such
product or is otherwise involved in placing such product for commercial
purpose;
or
(v) designs, produces,
fabricates, constructs or re-manufactures any product before its sale;
or
(vi) being a product seller of a product, is also a manufacturer of such product;
(37)
"product seller", in relation to a product, means a person who, in
the course of business, imports, sells, distributes, leases, installs,
prepares, packages, labels, markets, repairs, maintains, or otherwise is
involved in placing such product for commercial purpose and includes—
(i) a manufacturer who is also a product seller;
or
(ii) a service provider,
but does not include—
(a) a seller of immovable property, unless such person is engaged in the sale of
constructed house or in the construction of homes or flats;
(b) a provider of professional services in any transaction in which, the sale or use
of a product is only incidental thereto, but furnishing of opinion, skill or
services being the essence of such transaction;
(c) a person who—
(I) acts only in a financial capacity with respect
to the sale of the product;
(II) is not a manufacturer,
wholesaler, distributor, retailer, direct seller or an electronic service
provider;
(III) leases a product, without having a reasonable opportunity to inspect and discover
defects in the product, under a lease arrangement in which the selection,
possession, maintenance, and operation of the product are controlled by a
person other than the lessor;
(38) "product service provider", in relation to a product, means a person who provides
any service in respect of such product;
(39) "regulations"
means the regulations made by the National Commission, or as the case may be,
the Central Authority;
(40) "Regulator" means
a body or any authority established under any other law for the time being in
force;
(41) "restrictive trade
practice" means a trade practice which tends to bring about manipulation
of price or its conditions of delivery or to affect flow of supplies in the
market relating to goods or services in such a manner as to impose on the
consumers unjustified costs or restrictions and shall include—
(i) delay beyond the period agreed to by a trader in supply of such goods or in providing
the services which has led or is likely to lead to rise in the price;
(ii) any trade practice which
requires a consumer to buy, hire or avail of any goods or, as the case may be,
services as condition precedent for buying, hiring or availing of other goods
or services;
(42)
"service" means service of any description which is made available to
potential users and includes, but not limited to, the provision of facilities
in connection with banking, financing, insurance, transport, processing, supply
of electrical or other energy, telecom, boarding or lodging or both, housing
construction, entertainment, amusement or the purveying of news or other
information, but does not include the rendering of any service free of charge
or under a contract of personal service;
(43) "spurious goods" means such goods which are falsely claimed to be genuine;
(44) "State Commission" means a State
Consumer Disputes Redressal Commission established
under sub-section (1) of section 42;
(45) "trader",
in relation to any goods, means a person who sells or distributes any goods for
sale and includes the manufacturer thereof, and where such goods are sold or
distributed in package form, includes the packer thereof;
(46) "unfair contract"
means a contract between a manufacturer or trader or service provider on one
hand, and a consumer on the other, having such terms which cause significant change in the rights of
such consumer, including the following, namely:—
(i)
requiring
manifestly excessive security deposits to be given by a consumer for the
performance of contractual obligations;
or
(ii)
imposing
any penalty on the consumer, for the breach of contract thereof which is wholly
disproportionate to the loss occurred due to such breach to the other party to
the contract;
or
(iii)
refusing
to accept early repayment of debts on payment of applicable penalty;
or
(iv)
entitling
a party to the contract to terminate such contract unilaterally, without
reasonable cause;
or
(v)
permitting
or has the effect of permitting one party to assign the contract to the
detriment of the other party who is a consumer, without his consent;
or
(vi)
imposing on the consumer any unreasonable charge, obligation or condition which
puts such consumer to disadvantage;
(47) "unfair trade
practice" means a trade practice which, for the purpose of promoting the
sale, use or supply of any goods or for the provision of any service, adopts
any unfair method or unfair or deceptive practice including any of the
following practices, namely:—
(i) making any statement, whether orally or in writing or by
visible representation including by means of electronic record, which—
(a) falsely represents
that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;
(b) falsely represents
that the services are of a particular standard, quality or grade;
(c) falsely represents
any re-built, second-hand, renovated, reconditioned or old goods as new goods;
(d) represents that the
goods or services have sponsorship, approval, performance, characteristics,
accessories, uses or benefits which such goods or services do not have;
(e) represents that the seller
or the supplier has a sponsorship or approval or affiliation which such seller
or supplier does not have;
(f) makes a false or misleading representation concerning the need for, or the usefulness
of, any goods or services;
(g)
gives to the public any warranty or guarantee of the performance, efficacy or
length of life of a product or of any goods that is not based on an adequate or
proper test thereof: Provided that where a defence is
raised to the effect that such warranty or guarantee is based on adequate or
proper test, the burden of proof of such defence shall lie on the person raising such defence;
(h) makes to the public a representation in a form that purports to be—
(A) a warranty or
guarantee of a product or of any goods or services;
or
(B) a promise to replace, maintain or repair an article or any part thereof or to
repeat or continue a service until it has achieved a specified result,
if such purported warranty or guarantee or
promise is materially misleading or if there is no reasonable prospect that
such warranty, guarantee or promise will be carried out;
(i)
materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided,
and, for this purpose, a representation as to price shall be deemed to refer to
the price at which the product or goods or services has or have been sold by
sellers or provided by suppliers generally in the relevant market unless it is
clearly specified to be the price at which the product has been sold or
services have been provided by the person by whom or on whose behalf the
representation is made;
(j) gives false or misleading facts disparaging the goods,
services or trade of another person.
Explanation.—For the purposes of this sub-clause, a
statement that is,—
(A) expressed on an article offered or displayed for sale,
or on its wrapper or container; or
(B)
expressed on anything attached to, inserted in, or accompanying, an article
offered or displayed for sale, or on anything on which the article is mounted
for display or sale; or
(C) contained in or on anything that is sold, sent, delivered, transmitted or in any other
manner whatsoever made available to a member of the public,
shall be deemed to be a statement made
to the public by, and only by, the person who had caused the statement to be so
expressed, made or contained;
(ii) permitting the publication
of any advertisement, whether in any newspaper or otherwise, including by way
of electronic record, for the sale or supply at a bargain price of goods or
services that are not intended to be offered for sale or supply at the bargain
price, or for a period that is, and in quantities that are, reasonable, having
regard to the nature of the market in which the business is carried on, the
nature and size of business, and the nature of the advertisement.
Explanation.—For the purpose of this sub-clause,
"bargain price" means,—
(A) a price that is stated in any advertisement to be a
bargain price, by reference to an ordinary price or otherwise; or
(B) a price that a person who
reads, hears or sees the advertisement, would reasonably understand to be a bargain
price having regard to the prices at which the product advertised or like
products are ordinarily sold;
(iii) permitting—
(a)
the offering of gifts, prizes or other items with the intention of not
providing them as offered or creating impression that something is being given
or offered free of charge when it is fully or partly covered by the amount
charged, in the transaction as a whole;
(b)
the conduct of any contest, lottery, game of chance or skill, for the purpose
of promoting, directly or indirectly, the sale, use or supply of any product or
any business interest, except such contest, lottery, game of chance or skill as
may be prescribed;
(c) withholding from the participants of any scheme offering gifts, prizes or other items free
of charge on its closure, the information about final results of the scheme.
Explanation.—For the purpose of this sub-clause, the
participants of a scheme shall be deemed to have been informed of the final
results of the scheme where such results are within a reasonable time
published, prominently in the same newspaper in which the scheme was originally
advertised;
(iv)
permitting the sale or supply of goods intended to be used, or are of a kind
likely to be used by consumers, knowing or having reason to believe that the
goods do not comply with the standards prescribed by the competent authority
relating to performance, composition, contents, design, constructions,
finishing or packaging as are necessary to prevent or reduce the risk of injury
to the person using the goods;
(v)
permitting the hoarding or destruction of goods, or refusal to sell the goods
or to make them available for sale or to provide any service, if such hoarding
or destruction or refusal raises or tends to raise or is intended to raise, the
cost of those or other similar goods or services;
(vi) manufacturing of spurious goods or offering such goods for sale or adopting deceptive
practices in the provision of services;
(vii) not issuing bill or cash memo or receipt for the goods sold or services rendered in
such manner as may be prescribed;
(viii) refusing, after selling
goods or rendering services, to take back or withdraw defective goods or to
withdraw or discontinue deficient services and to refund the consideration
thereof, if paid, within the period stipulated in the bill or cash memo or
receipt or in the absence of such stipulation, within a period of thirty days;
(ix) disclosing to other person any personal information given in confidence by the consumer
unless such disclosure is made in accordance with the provisions of any law for
the time being in force.
CHAPTER II
CONSUMER PROTECTION COUNCILS
3. (1) The Central Government shall,
by notification, establish with effect from such date as it may specify in that
notification, the Central Consumer Protection Council to be known as the
Central Council.
(2) The Central Council shall be
an advisory council and consist of the following members, namely:—
(a) the Minister-in-charge of the Department of Consumer
Affairs in the Central Government, who shall be the Chairperson; and
(b) such number of other official or non-official members representing such interests as
may be prescribed.
4. (1) The Central Council shall
meet as and when necessary, but at least one meeting of the Council shall be
held every year.
(2) The Central Council shall
meet at such time and place as the Chairperson may think fit and shall observe
such procedure in regard to the transaction of its business as may be
prescribed.
5. The objects of the Central Council shall
be to render advice on promotion and protection of the consumers' rights under
this Act.
6. (1) Every State
Government shall, by notification, establish with effect from such date as it
may specify in such notification, a State Consumer Protection Council for
such State to be known as the State
Council.
(2) The State Council shall be an
advisory council and consist of the following members, namely:—
(a) the Minister-in-charge of Consumer Affairs in the
State Government who shall be the Chairperson;
(b) such number of other official or non-official members
representing such interests as may be prescribed;
(c) such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.
(3)
The State Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The State Council shall meet
at such time and place as the Chairperson may think fit and shall observe such
procedure in regard to the transaction of its business, as may be prescribed.
7. The objects of every
State Council shall be to render advice on promotion and protection of consumer
rights under this Act within the State.
8. (1) The State Government shall, by notification, establish for every District with effect from such date as it may specify in such notification, a District Consumer Protection Council to be known as the District Council.
(2) The District Council shall be
an advisory council and consist of the following members, namely:—
(a) the Collector of the district (by whatever name
called), who shall be the Chairperson; and
(b) such number of other official and non-official members representing such interests
as may be prescribed.
(3)
The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The District Council shall
meet at such time and place within the district as the Chairperson may think
fit and shall observe such procedure in regard to the transaction of its
business as may be prescribed.
9. The objects of every District Council
shall be to render advice on promotion and protection of consumer rights under
this Act within the district.
CHAPTER III
CENTRAL CONSUMER PROTECTION AUTHORITY
10. (1) The Central Government shall,
by notification, establish with effect from such date as it may specify in that
notification, a Central Consumer Protection Authority to be known as the
Central Authority to regulate matters relating to violation of rights of
consumers, unfair trade practices and false or misleading advertisements which
are prejudicial to the interests of public and consumers and to promote,
protect and enforce the rights of consumers as a class.
(2) The Central Authority shall
consist of a Chief Commissioner and such number of other Commissioners as may
be prescribed, to be appointed by the Central Government to exercise the powers
and discharge the functions under this Act.
(3) The headquarters of the
Central Authority shall be at such place in the National Capital Region of
Delhi, and it shall have regional and other offices in any other place in India
as the Central Government may decide.
11. The Central Government may, by
notification, make rules to provide for the qualifications for appointment,
method of recruitment, procedure for appointment, term of office, salaries and
allowances, resignation, removal and other terms and conditions of the service
of the Chief Commissioner and Commissioners of the Central Authority.
12. No act or proceeding of the Central
Authority shall be invalid merely by reason of—
(a) any vacancy in, or any defect in the
constitution of, the Central Authority; or (b) any defect in the appointment of
a person acting as the Chief Commissioner or as a Commissioner;
or
(c) any irregularity in the procedure of the Central Authority not affecting the merits
of the case.
13. (1) The Central Government shall
provide the Central Authority such number of officers and other employees as it
considers necessary for the efficient performance of its functions under this
Act.
(2) The
salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the Central Authority appointed
under this Act shall be such as may be prescribed.
(3) The Central Authority may
engage, in accordance with the procedure specified by regulations, such number
of experts and professionals of integrity and ability, who have special
knowledge and experience in the areas of consumer rights and welfare, consumer
policy, law, medicine, food safety, health, engineering, product safety,
commerce, economics, public affairs or administration, as it deems necessary to
assist it in the discharge of its functions under this Act.
14. (1) The Central Authority shall
regulate the procedure for transaction of its business and allocation of its
business amongst the Chief Commissioner and Commissioners as may be specified
by regulations.
(2) The Chief Commissioner shall
have the powers of general superintendence, direction and control in respect of
all administrative matters of the Central Authority:
Provided that the Chief Commissioner may
delegate such of his powers relating to administrative matters of the Central
Authority, as he may think fit, to any Commissioner (including Commissioner of
a regional office) or any other officer of the Central Authority.
15. (1) The Central Authority shall have
an Investigation Wing headed by a Director-General for the purpose of
conducting inquiry or investigation under this Act as may be directed by the
Central Authority.
(2)
The Central Government may appoint a Director-General and such number of
Additional Director-General, Director, Joint Director, Deputy Director and
Assistant Director, from amongst persons who have experience in investigation
and possess such qualifications, in such manner, as may be prescribed.
(3)
Every Additional Director-General, Director, Joint Director, Deputy Director
and Assistant Director shall exercise his powers, and discharge his functions,
subject to the general control, supervision and direction of the
Director-General.
(4) The Director-General may delegate all or any of his powers to the Additional Director-General or Director, Joint Director or Deputy Director or Assistant Director, as the case may be, while conducting inquiries or investigations under this Act.
(5) The inquiries or the investigations made by the Director- General shall be submitted to the Central Authority in such form, in such manner and within such time, as may be specified by regulations.
16. The District Collector (by whatever name
called) may, on a complaint or on a reference made to him by the Central
Authority or the Commissioner of a regional office, inquire into or investigate
complaints regarding violation of rights of consumers as a class, on matters
relating to violations of consumer rights, unfair trade practices and false or
misleading advertisements, within his jurisdiction and submit his report to the
Central Authority or to the Commissioner of a regional office, as the case may
be.
17. A complaint relating to violation of
consumer rights or unfair trade practices or false or misleading advertisements
which are prejudicial to the interests of consumers as a class, may be
forwarded either in writing or in electronic mode, to any one of the
authorities, namely, the District Collector or the Commissioner of regional
office or the Central Authority.
18. (1) The Central Authority shall—
(a) protect, promote and enforce the rights of consumers
as a class, and prevent violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no
person engages himself in unfair trade practices;
(c) ensure that no false or misleading advertisement is
made of any goods or services which contravenes the provisions of this Act or
the rules or regulations made thereunder;
(d) ensure that no person takes part in the publication of any advertisement which is
false or misleading.
(2) Without prejudice to the
generality of the provisions contained in sub-section (1), the Central
Authority may, for any of the purposes aforesaid,—
(a) inquire or cause an inquiry or investigation to be
made into violations of consumer rights or unfair trade practices, either suo motu or on a
complaint received or on the directions from the Central Government;
(b) file complaints before the District Commission, the
State Commission or the National Commission, as the case may be, under this
Act;
(c) intervene in any proceedings before the District
Commission or the State Commission or the National Commission, as the case may
be, in respect of any allegation of violation of consumer rights or unfair
trade practices;
(d) review the matters relating
to, and the factors inhibiting enjoyment of, consumer rights, including
safeguards provided for the protection of consumers under any other law for the
time being in force and recommend appropriate remedial measures for their
effective implementation;
(e) recommend adoption of international covenants and best international practices on
consumer rights to ensure effective enforcement of consumer rights;
(f) undertake and promote
research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working in the field of consumer rights to co-operate
and work with consumer protection agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as may be necessary, to prevent unfair trade practices and to protect consumers' interest;
(j) issue safety notices to alert consumers against dangerous
or hazardous or unsafe goods or services;
(k) advise the Ministries and Departments of the Central
and State Governments on consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect consumers'
interest.
19. (1) The Central Authority may,
after receiving any information or complaint or directions from the Central
Government or of its own motion, conduct or cause to be conducted a preliminary
inquiry as to whether there exists a prima facie case of violation of
consumer rights or any unfair trade practice or any false or misleading
advertisement, by any person, which is prejudicial to the public interest or to
the interests of consumers and if it is satisfied that there exists a prima
facie case, it shall cause investigation to be made by the Director-
General or by the District Collector.
(2)
Where, after preliminary inquiry, the Central Authority is of the opinion that
the matter is to be dealt with by a Regulator established under any other law
for the time being in force, it may refer such matter
to the concerned Regulator along with its report.
(3) For the purposes of
investigation under sub-section (1), the Central Authority, the Director
General or the District Collector may call upon a person referred to in
sub-section (1) and also direct him to produce any document or record in
his possession.
20. Where the Central Authority is satisfied
on the basis of investigation that there is sufficient evidence to show
violation of consumer rights or unfair trade practice by a person, it may pass
such order as may be necessary, including—
(a) recalling of goods or withdrawal of services which are dangerous, hazardous or unsafe;
(b) reimbursement of the prices of goods or services so
recalled to purchasers of such goods or services; and
(c) discontinuation of practices which are unfair and prejudicial to consumers' interest:
Provided that the Central Authority
shall give the person an opportunity of being heard before passing an order under
this section.
21. (1) Where the Central Authority
is satisfied after investigation that any advertisement is false or misleading
and is prejudicial to the interest of any consumer or is in contravention of consumer
rights, it may, by order, issue directions to the concerned trader or
manufacturer or endorser or advertiser or publisher, as the case may be, to
discontinue such advertisement or to modify the same in such manner and within
such time as may be specified in that order.
(2)
Notwithstanding the order passed under sub-section (1), if the Central
Authority is of the opinion that it is necessary to impose a penalty in respect
of such false or misleading advertisement, by a manufacturer or an endorser, it
may, by order, impose on manufacturer or endorser a penalty which may extend to
ten lakh rupees: Provided that the Central Authority
may, for every subsequent contravention by a manufacturer or endorser, impose a
penalty, which may extend to fifty lakh rupees.
(3) Notwithstanding any order
under sub-sections (1) and (2), where the Central Authority deems
it necessary, it may, by order, prohibit the endorser of a false or misleading
advertisement from making endorsement of any product or service for a period
which may extend to one year:
Provided that the Central Authority may,
for every subsequent contravention, prohibit such endorser from making
endorsement in respect of any product or service for a period which may extend
to three years.
(4) Where the Central Authority
is satisfied after investigation that any person is found to publish, or is a
party to the publication of, a misleading advertisement, it may impose on such
person a penalty which may extend to ten lakh rupees.
(5) No endorser shall be liable
to a penalty under sub-sections (2) and (3) if he has exercised
due diligence to verify the veracity of the claims made in the advertisement
regarding the product or service being endorsed by him.
(6) No person shall be liable to
such penalty if he proves that he had published or arranged for the publication
of such advertisement in the ordinary course of his business: Provided that no
such defence shall be available to such person if he
had previous knowledge of the order passed by the Central Authority for
withdrawal or modification of such advertisement.
(7) While determining the penalty
under this section, regard shall be had to the following, namely:—
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by such
offence; and
(d) the gross revenue from the sales effected by virtue of such
offence.
(8) The Central Authority shall
give the person an opportunity of being heard before an order under this
section is passed.
22. (1) For the purpose of conducting
an investigation after preliminary inquiry under sub-section (1) of
section 19, the Director-General or any other officer authorised by him in this behalf, or the District Collector, as the case may be, may, if
he has any reason to believe that any person has violated any consumer rights
or committed unfair trade practice or causes any false or misleading
advertisement to be made, shall,—
(a) enter at any reasonable time
into any such premises and search for any document or record or article or any
other form of evidence and seize such document, record, article or such
evidence;
(b) make a note or an inventory of such record or article; or
(c) require any person to produce any record, register or other document or article.
(2) The provisions of the Code of
Criminal Procedure, 1973, relating to search and seizure shall apply, as far as
may be, for search and seizure under this Act.
(3) Every document, record or
article seized under clause (a) of sub-section (1) or produced
under clause (c) of that sub-section shall be returned to the person,
from whom they were seized or who produced the same, within a period of twenty
days of the date of such seizure or production, as the case may be, after
copies thereof or extracts therefrom certified by
that person, in such manner as may be prescribed, have been taken.
(4) Where any article seized
under sub-section (1) are subject to speedy or natural decay, the
Director-General or such other officer may dispose of the article in such
manner as may be prescribed.
(5) In the case of articles other
than the articles referred to in sub-section (4), provisions contained
in clause (c) of sub-section (2) of section 38 shall mutatis
mutandis apply in relation to analysis or tests.
23. The Central Government may, if it
considers necessary, by notification, designate any statutory authority or body
to exercise the powers and perform the functions of the Central Authority
referred to in section 10.
24. A person aggrieved by any order passed
by the Central Authority under sections 20 and 21 may file an appeal to the
National Commission within a period of thirty days from the date of receipt of
such order.
25. The Central Government may, after due
appropriation made by Parliament by law in this behalf, make to the Central
Authority grants of such sums of money as that Government may think fit for
being utilised for the purposes of this Act.
26. (1) The Central Authority shall
maintain proper accounts and other relevant records and prepare an annual
statement of accounts in such form and manner as may be prescribed in
consultation with the Comptroller and Auditor-General of India.
(2)
The accounts of the Central Authority shall be audited by the Comptroller and
Auditor-General of India at such intervals as may be specified by him and any
expenditure incurred in connection with such audit shall be payable by the
Central Authority to the Comptroller and Auditor-General of India.
(3)
The Comptroller and Auditor-General of India or any other person appointed by
him in connection with the audit of the accounts of the Central Authority shall
have the same rights, privileges and authority in connection with such audit as
the Comptroller and Auditor-General of India generally has, in connection with
the audit of the Government accounts and, in particular, shall have the right
to demand the production of books, accounts, connected vouchers and other
documents and papers and to inspect any of the offices of the Central
Authority.
(4) The accounts of the Central
Authority as certified by the Comptroller and Auditor-General of India or any
other person appointed by him in this behalf together with the audit report thereon
shall be forwarded annually to the Central Government which shall cause the
same to be laid before each House of Parliament.
27. (1) The Central Authority shall
prepare once in every year, in such form, manner and at such time as may be
prescribed, an annual report giving full account of its activities during the
previous year and such other reports and returns, as may be directed, and
copies of such report and returns shall be forwarded to the Central Government.
(2) A copy of the annual report received
under sub-section (1) shall be laid, as soon as may be after it is
received, before each House of Parliament.
CHAPTER IV
CONSUMER DISPUTES REDRESSAL COMMISSION
28. (1) The State Government shall, by notification, establish
a District Consumer
Disputes Redressal Commission, to be known as the District
Commission, in each district of
the State:
Provided
that the State Government may, if it deems fit, establish more than one
District Commission in a district.
(2)
Each District Commission shall consist of—
(a) a President; and
(b) not less than two and not more than such number of
members as may be prescribed, in consultation with the Central Government.
29. The Central Government may, by notification, make
rules to provide for the qualifications, method of recruitment, procedure for
appointment, term of office, resignation and removal of the President and
members of the District Commission.
30. The State Government may, by notification, make rules
to provide for salaries and allowances and other terms and conditions of
service of the President, and members of the District Commission.
31. Any person appointed as President or, as the case
may be, a member of the District Commission immediately before the commencement
of this Act shall hold office as such as President or, as the case may be, as
member till the completion of his term for which he has been appointed.
32. If, at any time, there is a vacancy in the office of
the President or member of a District Commission, the State Government may, by
notification, direct—
(a) any other District Commission specified in that
notification to exercise the jurisdiction in respect of that district also; or
(b) the President or a member of any other District
Commission specified in that notification to exercise the powers and discharge
the functions of the President or member of that District Commission also.
33. (1) The State Government shall provide the District
Commission with such officers and other employees as may be required to assist
the District Commission in the discharge of its functions.
(2)
The officers and other employees of the District Commission shall discharge
their functions under the general superintendence of the President of the
District Commission.
(3)
The salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the District Commission shall
be such as may be prescribed.
34. (1)
Subject to the other provisions of this Act, the District Commission shall have
jurisdiction to entertain complaints where the value of the goods or services
paid as consideration does not exceed one crore rupees:
Provided that where the Central Government deems it
necessary so to do, it may
prescribe such other value, as it deems fit.
(2)
A complaint shall be instituted in a District Commission within the local
limits of
whose jurisdiction,—
(a)
the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or
carries on business or has a branch office or personally works for gain;
or
(b)
any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office, or personally works for gain, provided that in
such case the permission of the District Commission is given;
or
(c) the cause of action, wholly or in part, arises;
or
(d) the complainant resides or personally works for gain.
(3)
The District Commission shall ordinarily function in the district headquarters
and may perform its functions at such other place in the district, as the State
Government may, in consultation with the State Commission, notify in the
Official Gazette from time to time.
35. (1) A complaint, in relation to any goods sold or
delivered or agreed to be sold or delivered or any service provided or agreed to
be provided, may be filed with a District Commission by—
(a) the consumer,—
(i) to whom such goods are
sold or delivered or agreed to be sold or delivered or such service is provided
or agreed to be provided;
or
(ii) who alleges unfair trade practice in respect of such
goods or service;
(b)
any recognised consumer association, whether the
consumer to whom such goods are sold or delivered or agreed to be sold or
delivered or such service is provided or agreed to be provided, or who alleges
unfair trade practice in respect of such goods or service, is a member of such
association or not;
(c)
one or more consumers, where there are numerous consumers having the same
interest, with the permission of the District Commission, on behalf of, or for
the benefit of, all consumers so interested; or
(d) the Central Government, the Central Authority or the
State Government, as the case may be:
Provided that the complaint under this sub-section
may be filed electronically in such manner as may be prescribed.
Explanation.—For the purposes of this sub-section, "recognised consumer association" means any voluntary
consumer association registered under any law for the time being in force.
(2)
Every complaint filed under sub-section (1) shall be accompanied with
such fee and payable in such manner, including electronic form, as may be
prescribed.
36. (1) Every proceeding before the District Commission
shall be conducted by the President of that Commission and atleast one member thereof, sitting together:
Provided that where a member, for any reason, is
unable to conduct a proceeding till it is completed, the President and the
other member shall continue the proceeding from the stage at which it was last
heard by the previous member.
(2)
On receipt of a complaint made under section 35, the District Commission may,
by order, admit the complaint for being proceeded with or reject the same:
Provided that a complaint shall not be rejected
under this section unless an opportunity of being heard has been given to the
complainant:
Provided further that the admissibility of the
complaint shall ordinarily be decided within twenty-one days from the date on
which the complaint was filed.
(3)
Where the District Commission does not decide the issue of admissibility of the
complaint within the period so specified, it shall be deemed to have been
admitted.
37. (1) At the first hearing of the complaint after its
admission, or at any later stage, if it appears to the District Commission that
there exists elements of a settlement which may be acceptable to the parties,
except in such cases as may be prescribed, it may direct the parties to give in
writing, within five days, consent to have their dispute settled by mediation
in accordance with the provisions of Chapter V.
(2)
Where the parties agree for settlement by mediation and give their consent in
writing, the District Commission shall, within five days of receipt of such
consent, refer the matter for mediation, and in such case, the provisions of
Chapter V, relating to mediation, shall apply.
38. (1) The District Commission shall, on admission of a
complaint, or in respect of cases referred for mediation on failure of
settlement by mediation, proceed with such complaint.
(2)
Where the complaint relates to any goods, the District Commission shall,—
(a)
refer a copy of the admitted complaint, within twenty-one days from the date of
its admission to the opposite party mentioned in the complaint directing him to
give his version of the case within a period of thirty days or such extended
period not exceeding fifteen days as may be granted by it;
(b) if the opposite party on receipt of a complaint
referred to him under clause
(a)denies
or disputes the allegations contained in the complaint, or omits or fails to
take any action to represent his case within the time given by the District
Commission, proceed to settle the consumer dispute in the manner specified in
clauses (c) to (g);
(c)
if the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, obtain a sample of the goods from
the complainant, seal it and authenticate it in the manner as may be prescribed
and refer the sample so sealed to the appropriate laboratory along with a
direction that such laboratory to make an analysis or test, whichever may be
necessary, with a view to finding out whether such goods suffer from any defect
alleged in the complaint or from any other defect and to report its findings
thereon to the District Commission within a period of forty-five days of the
receipt of the reference or within such extended period as may be granted by
it;
(d)
before any sample of the goods is referred to any appropriate laboratory under
clause (c), require the complainant to deposit to the credit
of the Commission such fees as may be specified, for payment to the appropriate
laboratory for carrying out the necessary analysis or test in relation to the
goods in question;
(e)
remit the amount deposited to its credit under clause (d)
to the appropriate laboratory to enable it to carry out the analysis or test
mentioned in clause (c) and on receipt of the report from the appropriate
laboratory, it shall forward a copy of the report along with such remarks as it
may feel appropriate to the opposite party;
(f)
if any of the parties disputes the correctness of the findings of the
appropriate laboratory, or disputes the correctness of the methods of analysis
or test adopted by the appropriate laboratory, require the opposite party or
the complainant to submit in writing his objections with regard to the report
made by the appropriate laboratory;
(g)
give a reasonable opportunity to the complainant as well as the opposite party
of being heard as to the correctness or otherwise of the report made by the
appropriate laboratory and also as to the objection made in relation thereto
under clause (f) and issue an appropriate order under section 39.
(3)
The District Commission shall, if the complaint admitted by it under
sub-section (2) of section 36 relates to goods in respect of which
the procedure specified in sub-section (2) cannot be followed, or if the
complaint relates to any services,—
(a)
refer a copy of such complaint to the opposite party directing him to give his
version of the case within a period of thirty days or such extended period not
exceeding fifteen days as may be granted by the District Commission;
(b) if the opposite party, on receipt of a copy of the
complaint, referred to him under clause (a) denies or disputes the
allegations contained in the complaint, or omits or fails to take any action to
represent his case within the time given by the District Commission, it shall
proceed to settle the consumer dispute—
(i) on the basis of evidence
brought to its notice by the complainant and the opposite party, if the
opposite party denies or disputes the allegations contained in the complaint,
or
(ii) ex parte on
the basis of evidence brought to its notice by the complainant, where the
opposite party omits or fails to take any action to represent his case within
the time given by the Commission;
(c) decide the complaint on merits if the complainant
fails to appear on the date of hearing.
(4)
For the purposes of sub-sections (2) and (3),
the District Commission may, by order, require an electronic service provider
to provide such information, documents or records, as may be specified in that
order.
(5)
No proceedings complying with the procedure laid down
in sub-sections (1) and (2) shall be called in question
in any court on the ground that the principles of natural justice have not been
complied with.
(6)
Every complaint shall be heard by the District Commission on the basis of
affidavit and documentary evidence placed on record:
Provided that where an application is made for
hearing or for examination of parties in person or through video conferencing,
the District Commission may, on sufficient cause being shown, and after
recording its reasons in writing, allow t he
same.
(7)
Every complaint shall be disposed of as expeditiously as possible and endeavour shall be made to decide the complaint within a
period of three months from the date of receipt of notice by opposite party
where the complaint does not require analysis or testing of commodities and
within five months if it requires analysis or testing of commodities:
Provided that no adjournment shall ordinarily be
granted by the District Commission unless sufficient cause is shown and the
reasons for grant of adjournment have been recorded in writing by the
Commission:
Provided further that the District Commission shall
make such orders as to the costs occasioned by the adjournment as may be
specified by regulations:
Provided also that in the event of a complaint being
disposed of after the period so specified, the District Commission shall record in writing,
the reasons for the same at the time of disposing of the said complaint.
(8)
Where during the pendency of any proceeding before the District Commission, if it appears
necessary, it may pass such interim order as is just and proper in the facts
and circumstances of the case.
(9)
For the purposes of this section, the District Commission shall have the same
powers as are vested in a civil court under the Code of Civil Procedure, 1908
while trying a suit in respect of the following matters, namely:—
(a) the summoning and enforcing the attendance of any
defendant or witness and examining the witness on oath;
(b) requiring the discovery and production of any document
or other material object as evidence;
(c) receiving of evidence on affidavits;
(d) the requisitioning of the report of the concerned
analysis or test from the appropriate laboratory or from any other relevant
source;
(e) issuing of commissions for the examination of any
witness, or document; and
(f) any other matter which may be prescribed by the
Central Government.
(10)
Every proceeding before the District Commission shall be deemed to be a
judicial proceeding within the meaning of sections 193 and 228 of the Indian
Penal Code, and the District Commission shall be deemed to be a criminal court
for the purposes of section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973.
(11)
Where the complainant is a consumer referred to in sub-clause (v)
of clause (5) of section 2, the provisions of Order I Rule 8 of
the First Schedule to the Code of Civil Procedure, 1908 shall apply subject to
the modification that every reference therein to a suit or decree shall be
construed as a reference to a complaint or the order of the District Commission
thereon.
(12)
In the event of death of a complainant who is a consumer or of the opposite
party against whom the complaint has been filed, the provisions of Order XXII
of the First Schedule to the Code of Civil Procedure, 1908 shall apply subject
to the modification that every reference therein to the plaintiff and the
defendant shall be construed as reference to a complainant or the opposite
party, as the case may be.
39. (1) Where the District Commission is satisfied that
the goods complained against suffer from any of the defects specified in the
complaint or that any of the allegations contained in the complaint about the
services or any unfair trade practices, or claims for compensation under
product liability are proved, it shall issue an order to the opposite party
directing him to do one or more of the following, namely:—
(a) to remove the defect pointed out by the appropriate
laboratory from the goods in question;
(b) to replace the goods with new goods of similar
description which shall be free from any defect;
(c)
to return to the complainant the price, or, as the case may be, the charges
paid by the complainant along with such interest on such price or charges as
may be decided;
(d) to pay such amount as may be awarded by it as
compensation to the consumer for any loss or injury suffered by the consumer
due to the negligence of the opposite party:
Provided that the District Commission shall have the
power to grant punitive damages in such circumstances as it deems fit;
(e) to pay such amount as may be awarded by it as
compensation in a product liability action under Chapter VI;
(f) to remove the defects in goods or deficiencies in the
services in question;
(g) to discontinue the unfair trade practice or
restrictive trade practice and not to repeat them;
(h) not to offer the hazardous or unsafe goods for sale;
(i) to withdraw the hazardous
goods from being offered for sale;
(j) to cease manufacture of hazardous goods and to desist
from offering services which are hazardous in nature;
(k) to pay such sum as may be determined by it, if it is
of the opinion that loss or injury has been suffered by a large number of
consumers who are not identifiable conveniently:
Provided that the minimum amount of sum so payable shall
not be less than twenty-five per cent. of the value of
such defective goods sold or service provided, as the case may be, to such
consumers;
(l) to issue corrective advertisement to neutralise the effect of misleading advertisement at the
cost of the opposite party responsible for issuing such misleading
advertisement;
(m) to provide for adequate costs to parties; and
(n) to cease and desist from issuing any misleading
advertisement.
(2)
Any amount obtained under sub-section (1) shall be credited to such
fund and utilised in such manner as may be
prescribed.
(3)
In any proceeding conducted by the President and a member and if they differ on
any point or points, they shall state the point or points on which they differ
and refer the same to another member for hearing on such point or points and
the opinion of the majority shall be the order of the District Commission:
Provided that the other member
shall give his opinion on such point or points referred to him within a period
of one month from the date of such reference.
(4)
Every order made by the District Commission under sub-section (1)
shall be signed by the President and the member who conducted the proceeding:
Provided that where the order is made as per
majority opinion under sub-section (3), such order shall also be
signed by the other member.
40. The District Commission shall have the power to
review any of the order passed by it if there is an error apparent on the face
of the record, either of its own motion or on an application made by any of the
parties within thirty days of such order.
41. Any person aggrieved by an order made by the District Commission
may prefer an appeal against such order to the State Commission on the grounds of
facts or law within a period of forty-five days from the date of the order, in
such form and manner, as may be prescribed:
Provided that the State
Commission may entertain an appeal after the expiry of the said period of forty-five days, if it is satisfied that there was sufficient cause
for not filing it within that period:
Provided
further that no appeal by a person, who is required to pay any amount in terms
of an order of the District Commission, shall be entertained by the State
Commission unless the appellant has deposited fifty per cent. of that amount in the
manner as may be prescribed:
Provided
also that no appeal shall lie from any order passed under sub-section (1)
of section 81 by the District Commission pursuant to a settlement by mediation
under section 80.
42. (1) The State Government shall, by notification,
establish a State Consumer Disputes Redressal Commission, to be known as the State Commission, in the State.
(2)
The State Commission shall ordinarily function at the State capital and perform
its functions at such other places as the State Government may in consultation
with the State Commission notify in the Official Gazette:
Provided that the State Government may, by
notification, establish regional benches of the State Commission, at such
places, as it deems fit.
(3)
Each State Commission shall consist of—
(a) a President; and
(b) not less than four or not more than such number of
members as may be prescribed in consultation with the Central Government.
43. The Central Government may, by notification, make rules to
provide for the qualification for appointment, method of recruitment, procedure
of appointment, term of office, resignation and removal of the President and
members of the State Commission.
44. The State Government may, by notification, make
rules to provide for salaries and allowances and other terms and conditions of
service of the President and members of the State Commission.
45. Any person appointed as President or, as the case
may be, a member of the State Commission immediately before the commencement of
this Act shall hold office as such, as President or member, as the case may be,
till the completion of his term.
46. (1) The State Government shall determine the nature
and categories of the officers and other employees required to assist the State
Commission in the discharge of its functions and provide the Commission with
such officers and other employees as it may think fit.
(2)
The officers and other employees of the State Commission shall discharge their
functions under the general superintendence of the President.
(3)
The salaries and allowances payable to and the other terms and conditions of
service of, the officers and other employees of the State Commission shall be
such as may be prescribed.
47. (1) Subject to the other provisions of this Act, the
State Commission shall have jurisdiction—
(a) to entertain—
(i) complaints where the
value of the goods or services paid as consideration, exceeds rupees one crore, but does not exceed rupees ten crore:
Provided that where the Central Government deems it
necessary so to do, it may prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value
of goods or services paid as consideration does not exceed ten crore rupees;
(iii) appeals against the orders of any District Commission
within the State; and
a.
to call for the records and pass appropriate orders
in any consumer dispute which is pending before or has been decided by any
District Commission within the State, where it appears to the State Commission
that such District Commission has exercised a jurisdiction not vested in it by
law, or has failed to exercise a jurisdiction so vested or has acted in
exercise of its jurisdiction illegally or with material irregularity.
(2)
The jurisdiction, powers and authority of the State Commission may be exercised
by Benches thereof, and a Bench may be constituted by the President with one or
more members as the President may deem fit:
Provided that the senior-most member shall preside
over the Bench.
(3)
Where the members of a Bench differ in opinion on any point, the points shall
be decided according to the opinion of the majority, if there is a majority,
but if the members are equally divided, they shall state the point or points on
which they differ, and make a reference to the President who shall either hear
the point or points himself or refer the case for hearing on such point or
points by one or more of the other members and such point or points shall be
decided according to the opinion of the majority of the members who have heard
the case, including those who first heard it:
Provided
that the President or the other members, as the case may be, shall give opinion
on the point or points so referred within a period of one month from the date
of such reference.
(4) A complaint shall be instituted in a State
Commission within the limits of whose jurisdiction,—
(a) the opposite party or each of the opposite parties,
where there are more than one, at the time of the institution of the complaint,
ordinarily resides or carries on business or has a branch office
or
personally works for gain;
or
(b)
any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office or personally works for gain, provided in such
case, the permission of the State Commission is given;
or
(c) the cause of action, wholly or in part, arises;
or
(d) the complainant resides or personally works for gain.
48. On the application of the complainant or of its own
motion, the State Commission may, at any stage of the proceeding, transfer any complaint
pending before a District Commission to another District Commission within the
State if the interest of justice so requires.
49. (1) The provisions relating to complaints under
sections 35, 36, 37, 38 and 39 shall, with such modifications as may be
necessary, be applicable to the disposal of complaints by the State Commission.
(2)
Without prejudice to the provisions of sub-section (1),
the State Commission may also declare any terms of contract, which is unfair to
any consumer, to be null and void.
50. The State Commission shall have the power to review
any of the order passed by it if there is an error apparent on the face of the
record, either of its own motion or on an application made by any of the
parties within thirty days of such order.
51. (1) Any person aggrieved by an order made by the State
Commission in exercise of its powers conferred by sub-clause (i)
or (ii) of clause (a) of sub-section (1)
of section 47 may prefer an appeal against such order to the National
Commission within a period of thirty days from the date of the order in such
form and manner as may be prescribed:
Provided that the National
Commission shall not entertain the appeal after the expiry of the said period of thirty days unless it is satisfied that
there was sufficient cause for not filing it within that period:
Provided
further that no appeal by a person, who is required to pay any amount in terms
of an order of the State Commission, shall be entertained by the National
Commission unless the appellant has deposited fifty per cent. of that amount in the
manner as may be prescribed.
(2)
Save as otherwise expressly provided under this Act or by any other law for the
time being in force, an appeal shall lie to the National Commission from any
order passed in appeal by any State Commission, if the National Commission is
satisfied that the case involves a substantial question of law.
(3)
In an appeal involving a question of law, the memorandum of appeal shall precisely
state the substantial question of law involved in the appeal.
(4)
Where the National Commission is satisfied that a substantial question of law
is involved in any case, it shall formulate that question and hear the appeal
on that question:
Provided that nothing in this
sub-section shall be deemed to take away or abridge the power of the National
Commission to hear, for reasons to be recorded in writing, the appeal on any
other substantial question of law, if it is satisfied that the case involves such
question of law.
(5)
An appeal may lie to the National Commission under this section from an order
passed ex parte by the State Commission.
52. An appeal filed before the State Commission or the
National Commission, as the case may be, shall be heard as expeditiously as
possible and every endeavour shall be made to dispose
of the appeal within a period of ninety days from the date of its admission:
Provided that no adjournment
shall ordinarily be granted by the State Commission or the National Commission,
as the case may be, unless sufficient cause is shown and the reasons for grant
of adjournment have been recorded in writing by such Commission:
Provided further that the State
Commission or the National Commission, as the case may be, shall make such orders
as to the costs occasioned by the adjournment, as may be specified by
regulations:
Provided
also that in the event of an appeal being disposed of after the period so
specified, the State Commission or the National Commission, as the case may be,
shall record in writing the reasons for the same at the time of disposing of
the said appeal.
53. (1) The Central Government shall, by notification,
establish a National Consumer Disputes Redressal Commission, to be known as the National Commission.
(2)
The National Commission shall ordinarily function at the National Capital
Region and perform its functions at such other places as the Central Government
may in consultation with the National Commission notify in the Official
Gazette:
Provided that the Central
Government may, by notification, establish regional Benches of the National
Commission, at such places, as it deems fit.
54. The National Commission shall consist of—
(a) a President; and
(b) not less than four and not more than such number of
members as may be prescribed.
55. (1) The Central Government may, by notification, make
rules to provide for qualifications, appointment, term of office, salaries and
allowances, resignation, removal and other terms and conditions of service of
the President and members of the National Commission:
Provided that the President and
members of the National Commission shall hold office for such term as specified
in the rules made by the Central Government but not exceeding five years from
the date on which he enters upon his office and shall be eligible for
re-appointment:
Provided further that no
President or members shall hold office as such after he has attained such age
as specified in the rules made by the Central Government which shall not
exceed,—
(a) in the case of the President, the age of seventy
years;
(b) in the case of any other member, the age of
sixty-seven years.
(2) Neither the salary and allowances nor the other terms and conditions of service of President and members of the National Commission shall be varied to his disadvantage after his appointment.
56. The President and every other member appointed
immediately before the commencement of section 177 of the Finance Act, 2017
shall continue to be governed by the provisions of the Consumer Protection Act,
1986 and the rules made thereunder as if this Act had
not come into force.
57. (1) The Central Government shall provide, in
consultation with the President of the National Commission, such number of
officers and other employees to assist the National Commission in the discharge
of its functions as it may think fit.
(2)
The officers and other employees of the National Commission shall discharge
their functions under the general superintendence of the President of the
National Commission.
(3)
The salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the National Commission shall
be such as may be prescribed.
58. (1) Subject to the other provisions of this Act, the
National Commission shall have jurisdiction—
(a) to entertain—
(i) complaints where the
value of the goods or services paid as consideration exceeds rupees ten crore:
Provided that where the Central
Government deems it necessary so to do, it may prescribe such other value, as
it deems fit;
(ii) complaints against unfair contracts, where the value
of goods or services paid as consideration exceeds ten crore rupees;
(iii) appeals against the orders of any State Commission;
(iv) appeals against the orders of the Central Authority;
and
(b)
to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any State Commission where it
appears to the National Commission that such State Commission has exercised a
jurisdiction not vested in it by law, or has failed to exercise a jurisdiction
so vested, or has acted in the exercise of its jurisdiction illegally or with
material irregularity.
(2)
The jurisdiction, powers and authority of the National Commission may be
exercised by Benches thereof and a Bench may be constituted by the President
with one or more members as he may deem fit:
Provided that the senior-most
member of the Bench shall preside over the Bench.
(3)
Where the members of a Bench differ in opinion on any point, the points shall
be decided according to the opinion of the majority, if there is a majority,
but if the members are equally divided, they shall state the point or points on
which they differ, and make a reference to the President who shall either hear
the point or points himself or refer the case for hearing on such point or
points by one or more of the other members and such point or points shall be
decided according to the opinion of the majority of the members who have heard
the case, including those who first heard it:
Provided
that the President or the other member, as the case may be, shall give opinion
on the point or points so referred within a period of two months from the date
of such reference.
59. (1) The provisions relating to complaints under
sections 35, 36, 37, 38 and 39 shall, with such modifications as may be
considered necessary, be applicable to the disposal of complaints by the
National Commission.
(2)
Without prejudice to sub-section (1), the National Commission may
also declare
any terms of contract, which is unfair to any consumer
to be null and void.
60. The National Commission shall have the power to
review any of the order passed by it if there is an error apparent on the face
of the record, either of its own motion or on an application made by any of the
parties within thirty days of such order.
61. Where an order is passed by the National Commission ex parte,
the aggrieved party may make an application to the Commission for setting aside
such order.
62. On the application of the complainant or of its own
motion, the National Commission may, at any stage of the proceeding, in the
interest of justice, transfer any complaint pending before the District
Commission of one State to a District Commission of another State or before one
State Commission to another State Commission.
63. When the office of President of the National Commission is
vacant or a person occupying such office is, by reason of absence or otherwise,
unable to perform the duties of his office, these shall be performed by the
senior-most member of the National Commission:
Provided that where a retired
Judge of a High Court or a person who has been a Judicial Member is a member of
the National Commission, such member or where the number of such members is
more than one, the senior-most person amongst such members, shall preside over
the National Commission in the absence of President of that Commission.
64. No act or proceeding of the District Commission, the
State Commission or the National Commission shall be invalid by reason only of
the existence of any vacancy amongst its members or any defect in the
constitution thereof.
65. (1) All notices, required by this Act to be served,
shall be served by delivering or
transmitting a copy thereof by registered post acknowledgment due addressed
to opposite
party against whom complaint is made or to the complainant by speed post or by such
courier service, approved by the District Commission, the
State Commission or the National Commission, as the case may be, or by any
other mode of transmission of documents including electronic means.
(2)
Without prejudice to the provisions contained in sub-section (1),
the notice required by this Act may be served on an electronic service provider
at the address provided by it on the electronic platform from where it provides
its services as such and for this purpose, the electronic service provider
shall designate a nodal officer to accept and process such notices.
(3)
When an acknowledgment or any other receipt purporting to be signed by the
opposite party or his agent or, as the case may be, by the complainant is
received by the District Commission, the State Commission or the National
Commission, as the case may be, or postal article containing the notice is
received back by such District Commission, State Commission or the National
Commission, with an endorsement purporting to have been made by a postal
employee or by any person authorised by the courier
service to the effect that the opposite party or his agent or complainant had
refused to take delivery of the postal article containing the notice or had
refused to accept the notice by any other means specified in sub-section (1)
when tendered or transmitted to him, the District Commission or the State
Commission or the National Commission, as the case may be, shall declare that
the notice has been duly served on the opposite party or to the complainant, as
the case may be:
Provided that where the notice was properly addressed, pre-paid and duly sent by registered post acknowledgment due, a declaration referred to in this sub-section shall be made notwithstanding the fact that the acknowledgment has been lost or misplaced, or for any other reason, has not been received by the District Commission, the State Commission or the National Commission, as the case may be, within thirty days from the date of issue of notice.
(4)
All notices required to be served on an opposite party or to complainant, as
the case may be, shall be deemed to be sufficiently served, if addressed in the
case of the opposite party, to the place where business or profession is
carried on, and in case of the complainant, the place where such person
actually and voluntarily resides.
66. Where the National Commission or the State
Commission, as the case may be, on an application by a complainant or
otherwise, is of the opinion that it involves the larger interest of consumers,
it may direct any individual or organisation or
expert to assist the National Commission or the State Commission, as the case
may be.
67. Any person, aggrieved by an order made by the
National Commission in exercise of its powers conferred by sub-clause (i) or (ii) of clause (a)
of sub-section (1) of section 58, may prefer an appeal against such
order to the Supreme Court within a period of thirty days from the date of the
order:
Provided that the Supreme Court
may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for
not filing it within that period:
Provided
further that no appeal by a person who is required to pay any amount in terms
of an order of the National Commission shall be entertained by the Supreme
Court unless that person has deposited fifty per cent. of that amount in the
manner as may be prescribed.
68. Every order of a District Commission or the State
Commission or the National Commission, as the case may be, shall, if no appeal
has been preferred against such order under the provisions of this Act, be
final.
69. (1) The 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 has arisen.
(2)
Notwithstanding anything contained in sub-section (1),
a complaint may be entertained after the period specified in sub-section (1),
if the complainant satisfies the
District Commission, the State
Commission or the National Commission, as the case may be, that he had
sufficient cause for not filing the complaint within such period:
Provided that no such complaint
shall be entertained unless the District Commission or the State Commission or
the National Commission, as the case may be, records its reasons for condoning
such delay.
70. (1) The National Commission shall have the authority
to lay down such adequate standards in consultation with the Central Government
from time to time, for better protection of the interests of consumers and for that
purpose, shall have administrative control over all the State Commissions in
the following matters, namely:—
(a) monitoring performance of the State Commissions in
terms of their disposal by calling for periodical returns regarding the
institution, disposal and pendency of cases;
(b)
investigating into any allegations against the President and members of a State
Commission and submitting inquiry report to the State Government concerned
along with copy endorsed to the Central Government for necessary action;
(c)
issuance of instructions regarding adoption of uniform procedure in the hearing
of matters, prior service of copies of documents produced by one party to the
opposite parties, furnishing of english translation
of judgments written in any language, speedy grant of copies of documents;
(d) overseeing the functioning of the State Commission or
the District
Commission either by way of
inspection or by any other means, as the National Commission may like to order
from time to time, to ensure that the objects and purposes of the Act are best
served and the standards set by the National Commission are implemented without
interfering with their quasi-judicial freedom.
(2)
There shall be a monitoring cell to be constituted by the President of the National
Commission to oversee the functioning of the State Commissions from the
administrative point of view.
(3)
The State Commission shall have administrative control over all the District
Commissions within its jurisdiction in all matters referred to in sub-section (1).
(4)
The National Commission and the State Commissions shall furnish to the Central
Government periodically or as and when required, any information including the
pendency of cases in such form and manner as may be prescribed.
(5)
The State Commission shall furnish, periodically or as and when required to the
State Government any information including pendency of cases in such form and
manner as may be prescribed.
71. Every order made by a District Commission, State Commission or
the National Commission shall be enforced by it in the same manner as if it
were a decree made by a Court in a suit before it and the provisions of Order
XXI of the First Schedule to the Code of Civil Procedure, 1908 shall, as far as
may be, applicable, subject to the modification that every reference therein to
the decree shall be construed as reference to the order made under this Act.
72. (1) Whoever fails to comply with any order made by the
District Commission or the State Commission or the National Commission, as the
case may be, shall be punishable with imprisonment for a term which shall not
be less than one month, but which may extend to three years, or with fine,
which shall not be less than twenty-five thousand rupees, but which may extend
to one lakh rupees, or with both.
(2)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the
District Commission, the State Commission or the National Commission, as the
case may be, shall have the power of a Judicial Magistrate of first class for
the trial of offences under sub-section (1), and on conferment of such
powers, the District Commission or the State Commission or the National Commission, as the case may be, shall be
deemed to be a Judicial Magistrate of first class for the purposes of the Code
of Criminal Procedure, 1973.
(3)
Save as otherwise provided, the offences under sub-section (1)
shall be tried summarily by the District Commission or the State Commission or
the National Commission, as the case may be.
73. (1) Notwithstanding anything
contained in the Code of Criminal Procedure, 1973, where an order is passed
under sub-section (1) of section 72, an appeal shall lie, both on facts
and on law from—
(a) the order made by the District Commission to the
State ommission;
(b) the order made by the State Commission to the
National Commission; and
(c) the order made by the National Commission to the
Supreme Court.
(2)
Except as provided in sub-section (1), no appeal shall lie before
any court, from any order of a District Commission or a State Commission or the
National Commission, as the case may be.
(3)
Every appeal under this section shall be preferred within a period of thirty
days from the date of order of a District Commission or a State Commission or the
National Commission, as the case may be:
Provided that the State
Commission or the National Commission or the Supreme Court, as the case may be,
may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that the appellant had sufficient
cause for not preferring the appeal within the said period of thirty days.
CHAPTER V
MEDIATION
74. (1) The State Government shall establish, by
notification, a consumer mediation cell to be attached to each of the District
Commissions and the State Commissions of that State.
(2)
The Central Government shall establish, by notification, a consumer mediation
cell
to be attached to the National Commission and each of the regional Benches.
(3)
A consumer mediation cell shall consist of such persons as may be prescribed.
(4)
Every consumer mediation cell shall maintain—
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by
regulations.
(5)
Every consumer mediation cell shall submit a quarterly report to the District
Commission, State Commission or the National Commission to which it is
attached, in the manner specified by regulations.
75. (1) For the purpose of mediation, the National
Commission or the State Commission or the District Commission, as the case may
be, shall prepare a panel of the mediators to be maintained by the consumer
mediation cell attached to it, on the recommendation of a selection committee
consisting of the President and a member of that Commission.
(2)
The qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empanelled mediators, the fee
payable to empanelled mediator, the terms and conditions for empanelment, the
code of conduct for empanelled mediators, the grounds on which, and the manner
in which, empanelled mediators shall be removed or empanelment shall be
cancelled and other matters relating thereto, shall be such as may be specified
by regulations.
(3)
The panel of mediators prepared under sub-section (1)
shall be valid for a period of five years, and the empanelled mediators shall
be eligible to be considered for re-empanelment for another term, subject to
such conditions as may be specified by regulations.
76. The District Commission, the State Commission or the
National Commission shall, while nominating any person from the panel of
mediators referred to in section 75, consider his suitability for resolving the
consumer dispute involved.
77. It shall be the duty of the mediator to disclose—
(a) any personal, professional or financial interest in
the outcome of the consumer dispute;
(b) the circumstances which may give rise to a justifiable
doubt as to his
independence or impartiality; and
(c) such other facts as may be specified by regulations.
78. Where the District Commission or the State
Commission or the National Commission, as the case may be, is satisfied, on the
information furnished by the mediator or on the information received from any
other person including parties to the complaint and after hearing the mediator,
it shall replace such mediator by another mediator.
79. (1) The mediation shall be
held in the consumer mediation cell attached to the District Commission, the
State Commission or the National Commission, as the case may be.
(2)
Where a consumer dispute is referred for mediation by the District Commission
or the State Commission or the National Commission, as the case may be, the
mediator nominated by such Commission shall have regard to the rights and
obligations of the parties, the usages of trade, if any, the circumstances
giving rise to the consumer dispute and such other relevant factors, as he may
deem necessary and shall be guided by the principles of natural justice while
carrying out mediation.
(3)
The mediator so nominated shall conduct mediation within such time and in such
manner as may be specified by regulations.
80. (1) Pursuant to mediation, if an agreement is reached
between the parties with respect to all of the issues involved in the consumer
dispute or with respect to only some of the issues, the terms of such agreement
shall be reduced to writing accordingly, and signed by the parties to such
dispute or their authorised representatives.
(2)
The mediator shall prepare a settlement report of the settlement and forward
the signed agreement along with such report to the concerned Commission.
(3)
Where no agreement is reached between the parties within the specified time or the
mediator is of the opinion that settlement is not possible, he shall prepare
his report accordingly and submit the same to the concerned Commission.
81. (1) The District Commission or the State Commission or
the National Commission, as the case may be, shall, within seven days of the
receipt of the settlement report, pass suitable order recording such settlement
of consumer dispute and dispose of the matter accordingly.
(2)
Where the consumer dispute is settled only in part, the District Commission or the
State Commission or the National Commission, as the case may be, shall record
settlement of the issues which have been so settled and continue to hear other
issues involved in such consumer dispute.
(3)
Where the consumer dispute could not be settled by mediation, the District
Commission or the State Commission or the National Commission, as the case may
be, shall continue to hear all the issues involved in such consumer dispute.
CHAPTER VI
PRODUCT LIABILITY
82. 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.
83. A product liability action may be brought by a
complainant against a product manufacturer or a product service provider or a
product seller, as the case may be, for any harm caused to him on account of a
defective product.
84. (1) A product manufacturer shall be liable in a product
liability action, if—
(a) the product contains a manufacturing defect; or
(b) the product is defective in design; or
(c) there is a deviation from manufacturing
specifications; or
(d) the product does not conform to the express warranty;
or
(e) the product fails to contain adequate instructions of
correct usage to prevent
any harm or any warning regarding improper or incorrect
usage.
(2)
A product manufacturer shall be liable in a product liability action even if he
proves that he was not negligent or fraudulent in making the express warranty
of a product.
85. A product service provider shall be liable in a
product liability action, if—
(a)
the service provided by him was faulty or imperfect or deficient or inadequate in quality, nature or manner of
performance which is required to be provided by or under any law for the time
being in force, or pursuant to any contract or otherwise; or
(b) there was an act of omission or commission or
negligence or conscious
withholding any information which caused harm; or
(c) the service provider did not issue adequate
instructions or warnings to
prevent any harm; or
(d) the service did not conform to express warranty or the
terms and conditions
of the contract.
86. A product seller who is not a product manufacturer
shall be liable in a product liability action, if—
(a)
he has exercised substantial control over the designing, testing,
manufacturing, packaging or labelling of a product
that caused harm; or
(b) he has altered or modified the product and such alteration
or modification
was the substantial factor in causing the harm; or
(c) he has made an express warranty of a product
independent of any express
warranty made by a manufacturer and such product failed to
conform to the express warranty made by the product seller which caused the
harm; or
(d)
the product has been sold by him and the identity of product manufacturer of
such product is not known, or if known, the service of notice or process or warrant
cannot be effected on him or he is not subject to the law which is in force in
India or the order, if any, passed or to be passed cannot be enforced against
him; or
(e) he failed to exercise reasonable care in assembling,
inspecting or maintaining
such product or he did not pass
on the warnings or instructions of the product manufacturer regarding the
dangers involved or proper usage of the product while selling such product and
such failure was the proximate cause of the harm.
87. (1) A product liability action cannot be brought
against the product seller if, at the time of harm, the product was misused,
altered, or modified.
(2)
In any product liability action based on the failure to provide adequate
warnings or
instructions, the product manufacturer shall not be liable, if—
(a) the product was purchased by an employer for use at
the workplace and the
product manufacturer had provided warnings or instructions to such employer;
(b) the product was sold as a component or material to be used
in another
product and necessary warnings or instructions were given
by the product manufacturer to the purchaser of such component or material, but
the harm was caused to the complainant by use of the end product in which such
component or material was used;
(c) the product was one which was legally meant to be used
or dispensed only
by or under the supervision of an expert or a class of experts and the product
manufacturer had employed reasonable means to give the warnings
or instructions for usage of such product to such expert or class of experts;
or
(d) the complainant, while using such product, was under
the influence of alcohol or any prescription drug which had not been prescribed
by a medical practitioner.
(3)
A product manufacturer shall not be liable for failure to instruct or warn
about a danger which is obvious or commonly known to the user or consumer of
such product or
which, such user or consumer, ought to have known, taking
into account the characteristics
of such product.
CHAPTER VII
OFFENCES AND PENALTIES
88. Whoever, fails to comply with any direction of the
Central Authority under sections 20 and 21, shall be punished with imprisonment
for a term which may extend to six months or with fine which may extend to twenty lakh rupees, or with both.
89. 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; and for every subsequent offence, be punished with imprisonment for a
term which may extend to five years and with fine which may extend to fifty lakh rupees.
90. (1) Whoever, by himself or by any other person on his
behalf, manufactures for sale or stores or sells or distributes or imports any
product containing an adulterant shall be punished, if such act—
(a) does not result in any injury to the consumer, with
imprisonment for a term
which may extend to six months and with fine which may
extend to one lakh rupees;
(b) causing injury not amounting to grievous hurt to the
consumer, with imprisonment for a term which may extend to one year and with
fine which may extend to three lakh rupees;
(c) causing injury resulting in grievous hurt to the
consumer, with imprisonment
for a term which may extend to seven years and with
fine which may extend to five lakh rupees; and
(d) results in the death of a consumer, with imprisonment
for a term which shall
not be less than seven years, but which may extend to
imprisonment for life and with fine which shall not be less than ten lakh rupees.
(2)
The offences under clauses (c) and (d) of sub-section (1)
shall be cognizable and non-bailable.
(3)
Notwithstanding the punishment under sub-section (1),
the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the
time being in force, for a period up to two years, and in case of second or
subsequent conviction, cancel the licence.
Explanation.—For the purposes of this section,—
(a)
"adulterant" means any material including
extraneous matter which is employed or used for making a product unsafe;
(b)
"grievous hurt" shall have the same meaning
as assigned to it in section 320 of the Indian Penal Code.
91. (1) Whoever, by himself or by any other person on his
behalf, manufactures for sale or stores or sells or distributes or imports any
spurious goods shall be punished, if such act—
(a) causing injury not amounting to grievous hurt to the
consumer, with imprisonment for a term which may extend to one year and with
fine which may extend to three lakh rupees;
(b) causing injury resulting in grievous hurt to the
consumer, with imprisonment for a term which may extend to seven years and with
fine which may extend to five lakh rupees;
(c) results in the death of a consumer, with imprisonment
for a term which shall not be less than seven years, but may extend to
imprisonment for life and with fine which shall not be less than ten lakh rupees.
(2)
The offences under clauses (b) and (c) of sub-section (1)
shall be cognizable and non-bailable.
(3)
Notwithstanding the punishment under sub-section (1),
the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the
time being in force, for a period up to two years, and in case of second or
subsequent conviction, cancel the licence.
92. No cognizance shall be taken by a competent court of
any offence under sections 88 and 89 except on a complaint filed by the Central
Authority or any officer authorised by it in this
behalf.
93. The Director General or any other officer, exercising
powers under section 22, who knows that there are no reasonable grounds for so
doing, and yet—
(a)
searches, or causes to be searched any premises; or (b)
seizes any record, register or other document or article, shall, for every such
offence, be punished with imprisonment for a term which may extend to one year,
or with fine which may extend to ten thousand rupees or with both.
CHAPTER VIII
MISCELLANEOUS
94. For the purposes of preventing unfair trade practices
in e-commerce, direct selling and also to protect the interest and rights of
consumers, the Central Government may take such measures in the manner as may be prescribed.
95. The Presidents and members of the District
Commission, the State Commission and the National Commission, and officers and
other employees thereof, the Chief Commissioner and the Commissioner of the
Central Authority, the Director General, the Additional Director General, the
Director, the Joint Director, the Deputy Director and the Assistant Director
and all other officers and employees of the Central Authority and other persons
performing any duty under this Act, while acting or purporting to act in
pursuance of any of the provisions of this Act, shall be deemed to be public
servants within the
meaning of section 21 of the Indian Penal Code.
96. (1) Any offence punishable under sections 88 and 89, may, either before or after
the institution of the prosecution, be compounded, on
payment of such amount as may be prescribed:
Provided that no compounding of
such offence shall be made without the leave of the court before which a
complaint has been filed under section 92:
Provided
further that such sum shall not, in any case, exceed the maximum amount of the
fine, which may be imposed under this Act for the offence so compounded.
(2)
The Central Authority or any officer as may be specially authorised by him in this behalf, may compound offences under sub-section (1).
(3)
Nothing in sub-section (1) shall apply to person who commits the same or
similar offence, within a period of three years from the date on which the
first offence, committed by him, was compounded.
Explanation.—For the purposes of this sub-section, any second or
subsequent offence committed after the expiry of a period of three years from
the date on which the offence was previously compounded, shall be deemed to be
a first offence.
(4)
Where an offence has been compounded under sub-section (1),
no proceeding or further proceeding, as the case may be, shall be taken against
the offender in respect of the offence so compounded.
(5)
The acceptance of the sum of money for compounding an offence in accordance
with sub-section (1) by the Central Authority or an officer of the
Central Authority empowered in this behalf shall be deemed to amount to an
acquittal within the meaning of the Code of Criminal Procedure, 1973.
97. The penalty collected under section 21 and the
amount collected under section 96 shall be credited to such fund as may be
prescribed.
98. No suit, prosecution or other legal proceeding shall
lie against the Presidents and members of the District Commission, the State
Commission and the National Commission, the Chief Commissioner, the
Commissioner, any officer or employee and other person performing any duty
under this Act, for any act which is in good faith done or intended to be done
in pursuance of this Act or under any rule or order made thereunder.
99. (1) Without prejudice to the foregoing provisions of this
Act, the Central Authority, shall, in exercise of its powers or the performance
of its functions under this Act, be bound by such directions on questions of
policy, as the Central Government may give in writing to it from time to time:
Provided that the Central
Authority shall, as far as practicable, be given an opportunity to express its
views before any direction is given under this sub-section.
(2)
The decision of the Central Government whether a question is one of policy or
not shall be final.
100. The
provisions of this Act shall be in addition to and not in derogation of the
provisions of any other law for the time being in force.
101. (1) The Central Government may, by notification, make
rules for carrying out any of the provisions contained in this Act.
(2)
Without prejudice to the generality of the foregoing power, such rules may
provide for, —
(a) the other class or classes of persons including public
utility entities under clause (19) of section 2;
(b) the contest, lottery, game of chance or skill which
are to be exempted under item (b)
of sub-clause (iii) of clause (47) of section 2;
(c)
the manner of issuing bill or cash memo or receipt for goods sold or services
rendered under sub-clause (vii) of clause (47) of section 2;
(d) the number of other official or non-official members
of the Central Council under clause (b) of sub-section (2)
of section 3;
(e) the time and place of meeting of Central Council and
the procedure for the transaction of its business under sub-section (2)
of section 4;
(f) the number of Commissioners in the Central Authority
under sub-section (2) of section 10;
(g)
the qualifications for appointment, method of recruitment, procedure of
appointment, term of office, salaries and allowances, resignation, removal and
other terms and conditions of service of the Chief Commissioner and other
Commissioners of the Central Authority under section 11;
(h)
the salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the Central Authority under
sub-section (2) of section 13;
(i) the qualifications for appointment of Director
General, Additional Director General, Director, Joint Director, Deputy Director
and Assistant Director and the manner of appointment under sub-section (2)
of section 15;
(j) the manner of taking copies or extracts of document,
record or article seized or
produced before returning to the person under sub-section (3)
of section 22;
(k) the officer and the manner of disposing of articles
which are subject to speedy or natural decay under sub-section (4)
of section 22;
(l) the form and manner for preparing annual statement of
accounts by the Central Authority in consultation with the Comptroller and
Auditor-General of India under sub-section (1) of section 26;
(m) the form in which, and the time within which, an
annual report, other reports and returns may be prepared by the Central
Authority under sub-section (1) of section 27;
(n) the qualifications for appointment, method of
recruitment, procedure for appointment, term of office, resignation and removal
of President and members of the District Commission under section 29;
(o) the other value of goods and services in respect of
which the District Commission shall have jurisdiction to entertain complaints
under proviso to sub-section (1) of section 34;
(p) the manner of electronically filing complaint under
the proviso to sub- section (1) of section 35;
(q) the fee, electronic form and the manner of payment of
fee for filing complaint under
sub-section (2) of section 35;
(r) the cases which may not be referred for settlement by
mediation under sub-section (1)
of section 37;
(s) the manner of authentication of goods sampled in case
of the National Commission under clause (c) of sub-section (2)
of section 38;
(t) any other matter which may be prescribed under clause
(f) of sub-section (9) of section 38;
(u) the fund where the amount obtained may be credited and
the manner of utilisation of such amount under
sub-section (2) of section 39;
(v) the form and the manner in which appeal may be
preferred to the State Commission under section 41;
(w) the qualifications for appointment, method of
recruitment, procedure for appointment, term of office, resignation and removal
of the President and members of the State Commission under section 43;
(x) the other value of goods and services in respect of
which the State Commission shall have
jurisdiction under the proviso to sub-clause (i)
of clause (a) of sub-section (1) of section 47;
(y) the form and manner of filing appeal to the National
Commission, and the manner of depositing fifty per cent. of the amount before filing appeal, under sub-section (1)
of section 51;
(z) the number of members of the National Commission under
clause (b) of section 54;
(za)
the qualifications, appointment, term of office, salaries and allowances,
resignation, removal and other terms and conditions of service of the President
and members of the National Commission under sub-section (1)
of section 55;
(zb) the salaries and allowances payable to, and other
terms and conditions of service of, the officers and other employees of the
National Commission under
sub-section (3) of section 57;
(zc) the other value of goods and services in respect
of which the National Commission shall have jurisdiction under the proviso to
sub-clause (i) of
clause (a) of sub-section (1) of section 58;
(zd) the manner of depositing fifty per cent. of the amount under the second proviso to section 67;
(ze)
the form in which the National Commission and the State Commission shall
furnish information to the Central Government under sub-section (4)
of section 70;
(zf) the persons in the consumer mediation cell under
sub-section (3) of section 74;
(zg)
the measures to be taken by the Central Government to prevent unfair trade
practices in e-commerce, direct selling under section 94;
(zh) the amount for compounding offences under
sub-section (1) of section 96;
(zi) the fund to which the penalty and amount collected
shall be credited under section 97; and
(zj) any
other matter which is to be, or may be, prescribed, or in respect of which
provisions are to be, or may be, made by rules.
102. (1) The State Governments may, by notification, make
rules for carrying out the provisions of this Act:
Provided that the Central
Government may, frame model rules in respect of all or any of the matters with
respect to which the State Government may make rules under this section, and
where any such model rules have been framed in respect of any such matter, they
shall apply to the State until the rules in respect of that matter is made by
the State Government and while making any such rules, so far as is practicable,
they shall conform to such model rules.
(2)
In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:—
(a) the other class or classes of persons including public
utility entities under clause (19) of section 2;
(b) the contest, lottery, game of chance or skill which
are to be exempted under item (b) of sub-clause (iii)
of clause (47) of section 2;
(c) the number of other official or non-official members
of the State Council under clause (b) of sub-section (2)
of section 6;
(d) the time and place of meeting of the State Council and
the procedure for the transaction of its business under sub-section (4)
of section 6;
(e) the number of other official and non-official members
of District Council under clause (b) of sub-section (2)
of section 8;
(f) the time and place of meeting of the District Council
and procedure for the transaction of its business under sub-section (4)
of section 8;
(g) the number of members of the District Commission under
clause (b) of sub-section
(2) of section 28;
(h) the salaries and allowances payable to, and other
terms and conditions of service of, the President and members of the District
Commission under section 30;
(i)
the salaries and allowances payable to, and other terms and conditions of
service of, the officers and other employees of the District Commission under
sub-section (3) of section 33;
(j) the manner of authentication of goods sampled by the
State Commission and the District Commission under clause (c)
of sub-section (2) of section 38;
(k) the manner of depositing fifty per cent. of the amount before filing appeal under second proviso to
section 41;
(l) the number of members of the State Commission under
sub-section (3) of section 42;
(m) the salaries and allowances payable to, and other
terms and conditions of service of, the President and members of the State
Commission under section 44;
(n)
the salaries and allowances payable to, and other terms and conditions of
service of, the officers and other employees of the State Commission under
sub-section (3) of section 46;
(o) the form in which the State Commission shall furnish
information to the State Government under sub-section (5)
of section 70;
(p) the persons in the consumer mediation cell under
sub-section (3) of section 74;
(q) any other matter which is to be, or may be prescribed,
or in respect of which provisions are to be, or may be, made by rules.
103. (1) The National Commission may, with the previous
approval of the Central Government, by notification, make regulations not
inconsistent with this Act to provide for all matters for which provision is
necessary or expedient for the purpose of giving effect to the provisions of
this Act.
(2)
In particular, and without prejudice to the generality of the foregoing power,
such regulations may make
provisions for—
(a) the costs for adjournment to be imposed by the
District Commission under the second proviso to sub-section (7)
of section 38;
(b) the costs for adjournment to be imposed by the State
Commission or the National Commission, as the case may be, under the second
proviso to section 52;
(c) the maintenance of any other information by the
consumer mediation cell under sub-section (4) of section 74;
(d) the manner of submission of quarterly report by
consumer mediation cell to the District Commission, the State Commission or the
National Commission under sub-section (5) of section 74;
(e)
the qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empanelled mediators, the fee
payable to empanelled mediator, the terms and conditions for empanelment, the
code of conduct for empanelled mediators, the grounds on which, and the manner
in which, empanelled mediators shall be removed or empanelment shall be
cancelled and the other matters relating thereto under sub-section (2)
of section 75;
(f) the conditions for re-empanelment of mediators for
another term under sub-section (3)
of section 75;
(g) the other facts to be disclosed by mediators under
clause (c) of section 77;
(h) the time within which, and the manner in which,
mediation may be conducted under sub-section (3) of section 79; and
(i) such other matter for
which provision is to be, or may be, made by regulation.
104. (1) The Central Authority may, with the previous
approval of the Central Government, by notification, make regulations not
inconsistent with this Act, for the purpose of giving effect to the provisions
of this Act.
(2)
In particular, and without prejudice to the generality of the foregoing power,
such regulations may provide for all or any of the following matters, namely:—
(a) the procedure for engaging experts and professionals
and the number of such experts and
professionals under sub-section (3) of section 13;
(b) the procedure for transaction of business and the
allocation of business of the Chief
Commissioner and Commissioner under sub-section (1)
of section 14;
(c)
the form, manner and time within which, inquiries or investigation made by the
Director-General shall be submitted to the Central Authority under sub-section
(5) of section 15; and
(d) such other matter for which provision is to be, or may
be, made by regulation.
105. (1) Every rule and every regulation made under this
Act shall be laid, as soon as may be after it is made, before each House of
Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in
the rule
or
regulation or both Houses agree
that the rule or regulation shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of
anything previously done under that rule or regulation.
(2)
Every rule made by a State Government under this Act shall be laid as soon as
may be after it is made, before the State Legislature.
106. If
any difficulty arises in giving effect to the provisions of this Act, the
Central Government may, by order in the Official Gazette, make such provisions
not inconsistent with the provisions of this Act as appear to it to be
necessary or expedient for removing the difficulty:
Provided
that no such order shall be made after the expiry of a period of two years from
the commencement of this Act.
107. (1)
The Consumer Protection Act, 1986 is hereby repealed.
(2)
Notwithstanding such repeal, anything done or any action taken or purported to
have been one or taken under the Act hereby repealed shall, in so far as it is
not inconsistent with the provisions of this Act, be deemed to have been done
or taken under the corresponding provisions of this Act.
(3)
The mention of particular matters in sub-section (2)
shall not be held to prejudice or affect the general application of section 6
of the General Clauses Act, 1897 with regard to the effect of repeal.
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.