Consumer protection laws in india
What are the different types of unfair trade practices?
Some unfair trade practices are:
- When goods and services are not of the required standard such as products beyond their expiry date
- When second-hand goods are sold as new
- When goods and services do not have the claimed use or benefit
- When products/ services do not have the claimed warranty/guarantee
- When the price of a product or service is misleading
- False and misleading advertisements for selling at a bargain price
- Offering gifts and prizes to lure customers with no intention of providing them
- Selling goods which do not fall within the safety standards set up by the competent authority
- Hoarding or destroying goods with the intention of raising the cost of these similar goods manufactured in greater number so as to manipulate higher prices
- Manufacturing or offering spurious goods or adopting deceptive practices in the provision of services such as penalty on delivering a wrong product
What is the objective of the consumer protection act (CPA), 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.
What is a consumer?
A person who buys any goods or avails a service for a fee is a consumer. It does not include a person who obtains a good for resale. The consumer protection act, 2019 covers offline and online transactions done through electronic means, teleshopping, multi-level marketing or direct selling
A person is not a consumer if s/he:
- Purchases any goods or avails any service free of charge
- Purchases a good or hires a service for a commercial purpose
- Avails any service under a contract of service
What are goods and services?
Goods refer to every kind of movable property other than actionable claims and money. It includes stock and shares, growing crops, grass and things attached to or forming part of the land.
Services are something you pay money for but it does not fall under the goods category. Examples are banking, transport, electricity supply and entertainment. It does not include free services.
What are defects in goods and services?
In goods, defects are any fault, imperfection or shortcoming in quality, quantity, potency, purity or standard of goods. For example: dents, leaks and tears. In services, defects are deficiency in service which includes any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of a service.
What is an unfair trade practice?
A trade practice which adopts an unfair or deceptive method or practice in order to sell a good or service is an unfair trade practice