Understanding Redressal Under The Consumer Protection Act: Your Guide To Consumer Rights And Compensation

One of the most important consumer rights is the ability to demand compensation and corrective action when unfair company practices or faulty items are encountered. Within the context of the Consumer Protection Act, this legal guide examines the idea of redressal. It does so by outlining the functions of different consumer rights, the legislative progression from the 1986 Act to the 2019 Act, and the safeguards put in place to protect the interests of consumers. Consumers must comprehend these principles in order to assert their rights and obtain justice in situations of misconduct. Scroll through the article to know more.

What Is A Redressal?

This means that whatever went wrong in the past must be made right, and the party who survived must receive some sort of recompense that lessens the impact of the error to some degree. The nation's customers are endowed with certain rights and obligations under the terms of the Consumer Protection Act. If a customer fulfills all of his obligations and sustains damages as a result of unfair business practices, he is entitled to compensation for the harm incurred as well as further remedies.

Role Of Consumer Protection Act, 1986

An Act to safeguard consumer interests, create agencies for the stated purpose, and provide for the prompt and efficient administration and resolution of consumer disputes, as well as for matters related thereto (In line with the 2019 Consumer Protection Act).

"An Act to provide for the establishment of consumer councils and other authorities for the settlement of consumer disputes and the matters connected therewith, and to provide for better protection of the interests of consumers."(In line with the 1986 Consumer Protection Act).

The goal of the 1986 Consumer Protection Act is to safeguard and advance consumers' interests against flaws and shortcomings in products and services. Additionally, it aims to protect Consumer Rights against deceptive or unfair business activities. 

Role Of CCPA

The Central Consumer Protection Authority (CCPA) will be established by the Central Government under the Consumer Protection Act, 2019 in order to safeguard, uphold, and advance consumer rights. It oversees issues about deceptive advertising, unfair business practices, and abuses of consumer rights.

Inquiries and investigations of such infractions may be carried out by the Central Consumer Protection Authority's investigation wing, which is led by a director general.

What Are Unfair Trade Practices?

Any action or company practice that is dishonest and harms customers is considered an unfair trade practice. A few of the few actions that fall under its purview are publishing false or misleading ads, hoarding, black marketing, publishing false or misleading advertisements, and fraudulent use of trademarks or any other kind of intellectual property.  

What Are The Rights To Seek Redressal?

There are 6 main Consumer Rights and the right to seek redressal gives the right to seek justice in case of situations where the consumer rights of an individual are hurt and violated. The rights are as follows:

Right To Safety: The first and most significant of consumer rights is the right to safety. They ought to be shielded against products that jeopardise their security. Protection must be provided against any product that could be harmful to their physical, mental, or any combination of these aspects of their health.

Right To Information: They have a right to know what the product is like. The information that should be disclosed to the consumer should be listed on the product package; the manufacturer shall not withhold this information or give misleading information.

Right To Choose: People shouldn't be pressured to decide on a certain item. A buyer ought to be persuaded of the thing he is about to select and ought to make his Judgement. This implies that readers should be able to select from a wide range of content. Practices that create monopolies are illegal.

Right To Be Heard: A customer has the full right to lodge a complaint against a product if they are unhappy with it. Furthermore, the aforementioned issue must be taken seriously and resolved within a reasonable time limit.

Right To Consumer Education: The public has the right to be fully informed about their rights and duties, as well as to know all available information. The biggest issue that has to be resolved by our administration is a lack of consumer knowledge.

Right To Seek Redressal: This right refers to the right to file a complaint about unethical business activities or the deceptive exploitation of customers. It also involves the right to a just resolution of the customer's legitimate complaints. Customers who have legitimate complaints must file them. Frequently, their grievance may seem insignificant, but it might have a significant effect on society as a whole. Consumer associations might also assist them in pursuing remedies for their complaints.

With the globalisation of markets and the growing distance between the maker and the end consumer, it is imperative that issues related to purchases be addressed through a robust grievance redressal mechanism. 

For this, Consumer dispute redressal agencies (popularly known as Consumer Forums or Consumer Courts) are set up under the Act at the District, State and National levels to provide simple and inexpensive quick redressal against consumer complaints.

• District Commissions shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed 50 lakh rupees.

• State Commissions shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds 50 lakh rupees but does not exceed 2 crore rupees.

• National Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds 2 crore rupees.

The Consumer Forum can order the company to take the following actions once it hears the complaint and decides that the company is at fault:

• Correct deficiencies in the product to what they claim.

• Repair defect free of charges

• Replace the product with a similar or superior product

• Issue a full refund of the price

• Pay compensation for damages/costs/Inconveniences

• Withdraw the sale of the product altogether

• Discontinue or not repeat any unfair trade practice or restrictive trade practice

• Issue corrective advertisement for any earlier misrepresentation

Who Is A Consumer?

A person is referred to as a consumer if they acquire any form of goods or services for their consumption alone—that is, not for marketing or production. A consumer can be an individual or a collection of people.

Consumer protection benefits both companies and end users. This consumer protection forum is necessary to provide customers with accurate information about products and services and to keep them informed about their purchases. Customers are therefore able to make informed Judgements and are shielded from false information disseminated by companies.

Further, as per the provisions given under Section 2(7) of the Consumer Protection Act, 2019, a consumer is defined as a person who-

1. “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, 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.” 

2. “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, 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.”

All those people who fall under the ambit of this definition, as provided in the statute, are considered consumers.

What Is A Product?

According to the Consumer Protection Act of 2019, the term "product" includes both products and services related to the items delivered, unless the Central Government officially excludes them by notice. Furthermore, the term "product" does not include human tissues, blood, blood products, organs, or services provided for free or under a personal service agreement. 

Details On Filing A Complaint

The very first thing one needs to know about filing a complaint is the limitation period of the same. In accordance with Section 69 of the Consumer Protection Act of 2019, a grievance may be submitted to the District, State, or National Commissions within a period of two years from the day on which the conduct first became liable. In extraordinary circumstances, the commission may also decide whether to implement this clause if it is persuaded by the justifications offered for the filing's delay.

Who Can File A Complaint?

Since the new Act of 2019 went into effect, consumers, groups of consumers, recognised consumer associations, the Central Government, the Central Consumer Protection Authority, or the State Government may file complaints in consumer courts based on suo-moto cognisance. Previously, only a consumer could file a complaint under the Consumer Protection Act, of 1986.

How To File A Complaint?

The Consumer Protection Act of 2019 has many phases in the complaint process:

1. Issuance of Notice: The complainant must notify the other party of the flaws or faults in writing prior to filing a complaint. The complaint may be pursued if a settlement is not achieved.

2. Jurisdiction Determination: In accordance with the case's financial and geographical jurisdiction, the complaint has to be submitted to the relevant commission.

3. Complaint Filing: By submitting the appropriate information and using Demand Draft to pay the necessary court costs, the complaint can be filed online. Filing costs for complaints under Rs. 5 lakh are non-existent.

4. Options for Resolving Disputes: Commission-affiliated Mediation Cells or court procedures are the two ways in which disputes can be settled. The state pays for the costs of the mediation; however, the parties are responsible for paying for the experts, witnesses, and paperwork.

Liability For Damages

The second question that comes up in the event of a defective product is who will be responsible for paying the damages that the customer has sought. This is because it is evident that the consumer has experienced some sort of harm and is demanding compensation for it. The Consumer Protection Act of 2019's Chapter VI provides a detailed response to this query. Although this chapter was not expressly stated in the Consumer Protection Act of 1986, it was added to the newly formed Act once it became apparent how important it was at the time. All of the provisions pertaining to the idea of product responsibility are covered in this chapter. A complainant may register a complaint under the provisions of this chapter against the product seller, product service provider, or product manufacturer, depending on the specifics of the situation. Additionally, the differentiation between the particular circumstances in which the product seller, product service provider, or manufacturer is held accountable and requested to reimburse the customer for losses still exists.

How To Be Sure Your Rights Aren’t Violated?

Learning more about consumer rights is the first and most important step in safeguarding them. A customer must understand their rights, and they should also know when and how to exercise them. A customer will benefit from this by being able to exercise their rights if something goes wrong and by feeling more confident about their safety. 

What Is Consumer Awareness?

The practice of educating a customer about his rights when purchasing products and services is known as consumer awareness. It includes teaching a customer about information, safety, and his choices for redress. As was previously said, one of the government's most enduring issues with consumer protection is consumer awareness. Over the years, the government has developed a number of strategies to address this issue.

Actually, that is the Department of Consumer Affairs' primary goal.  "Jago Grahak Jago" has been one of the most significant and effective consumer awareness campaigns in recent memory. It is certain that you have encountered it. It's an excellent illustration of customer awareness done right.

Responsibilities Of A Consumer

As a knowledgeable consumer who may influence society and assist other consumers in opposing unfair practices or raising awareness of them, the consumer has some responsibility.

• They ought to be conscious of their rights under the Consumer Protection Act and act accordingly in an emergency.

• They have to know a lot about the item they are purchasing. should buy the goods with caution, just like any other buyer.

• A complaint should be made if a product is discovered to contain any incorrect information or to be unsatisfactory.

• When making a transaction, the customer ought to request a Cash Memo.

• Customers should verify the product's legitimacy and quality by looking for the newly established standard markings.

Landmark Cases

Sapient Corporation Employees v. Hdfc Bank Ltd. & Ors. (2012)

The Sapient Corporation Employees Provident Fund Trust lodged a consumer complaint against HDFC Bank Ltd. in this instance. The complaint alleged that by debiting the complainant's account, OP-Bank had provided inadequate services. In this instance, the court determined that there was no service defect on the side of OP-bank and that the complainant's complaints lacked foundation. It is impossible to classify activity that complies with regulatory body directives as carelessness or a lack of quality service.

Brigade Enterprise Ltd v Anil Kumar 2021 SCC Online SC 1283

In this instance, the Supreme Court bench was asked to rule on whether more than one consumer might file a complaint under the Act. In response to this query, the court provided the following illustration. "a situation in which a parent and kid or a husband and wife jointly buy a residential flat. Both of them are allowed to submit a complaint together if they have a problem against the constructor. Section 35(1)(a) shall apply to such a complaint instead of Section 35(1)(c). The fact that a complaint is not from a single customer does not exclude the person filing it from Section 2(5)(i)."

Conclusion

In conclusion, one of the most important components of consumer protection is the ability for customers to file complaints about unfair business practices or faulty goods. This is known as the right to seek redressal. The progression of consumer protection legislation, shown by the 1986 Act and the more extensive 2019 Act, underscores the growing acknowledgement of consumer rights and the significance of a resilient redressal system. Now that there are several consumer forums and mediation available, the legal system provides easier and more effective means for consumers to seek justice. To encourage justice and accountability in the marketplace, it is essential for customers to be informed of their rights, comprehend the complaint process, and actively utilise their rights.