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Consumer Protection Act 2019

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FAQs on Consumer Protection Act 2019

FAQs on Consumer Protection Act 2019

1.    When was Consumer Protection Act 2019 enacted?

The Consumer Protection Act 2019 was notified on August 9th 2019. However, it came into effect from July 20th 2020.

2.    What are the main features of Consumer Protection Act 2019?

While retaining certain old provisions, the New Act has certain new provisions that tightens the existing rules to further safeguard consumer rights and create exhaustive consumer protection law.

New provisions under Consumer Protection Act 2019

  • Inclusion of E- commerce, Direct selling

Establishment of Central Consumer Protection Authority (CCPA)

  • Strict Norms for Misleading Advertisement
    • Strict Norms for product liability
    • Changes in the Pecuniary Jurisdiction
    • Greater ease to dispute resolution

Addition in the clause of “Unfair Trade Practice”:

  • Unfair Contract
    • Alternate Dispute Resolution through mediation

3.    Who is a consumer?

A person who buys any goods or services for a consideration, which has been paid or promised or partly paid and partly promised, or under any system of deferred payment also includes the user with approval of such goods or beneficiary of services.

As per Consumer Protection Act 2019, the expression “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.

4.    Who is a not a consumer?

  • A person who obtains;
    • goods free of charge
    • who avails services free of charge
    • who obtains goods for resale or for any commercial purposes
    • who avails services for any commercial purposes
    • who avails services under contract of service

As per the provisions of the Act, commercial purpose does not include use by a person of goods bought and used by him exclusively for the purposes of earning his livelihood by means of self-employment.

5.    What Consumers Rights are guaranteed under Consumer Protection Act, 2019?

Consumer is having the following six consumer rights under the Act

  • Right to Safety
    • Right to be Informed
    • Right to Choose
    • Right to be heard
    • Right to seek Redressal
    • Right to Consumer Awareness

6.  What are goods?

“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;

7.   Who can make complaint?

  1. a consumer; or
  2. any voluntary consumer association registered under any law for the time being in force; or
  3. the Central Government or any State Government; or
  4. the Central Authority; or
  5. one or more consumers, where there are numerous consumers having the same interest; or
  6. in case of death of a consumer, his legal heir or legal representative; or
  7. in case of a consumer being a minor, his parent or legal guardian;

8.    Can a person buying goods or hiring services for business purpose make a complaint?

No

9.   What are Consumer Disputes Redressal Agencies?

These are quasi-judicial bodies established under the Act to provide simple, speedy and inexpensive redressal to the grievances of the consumers. These have been established at three levels: District, State and National known as:

  • District Consumer Disputes Redressal Commission or District Commission
    • State Consumer Disputes Redressal Commission or State Commission
    • National Consumer Disputes Redressal Commission or National Commission.

10. What is the pecuniary jurisdiction of Commissions?

CPA 2019
District Commission: Upto 1 cr
State Commission: 1 cr – 10 cr
National Commission: above 10 cr

11. Where the complaint can be filed?

A complaint shall be instituted in a District Commission within the local limits of whose jurisdiction the:

  • Place of business or residence of opposite parties, or
    • Place of business or residence of complainant, or
    • where the cause of action, wholly or in part, arises

12.    What is meant by ‘deficiency’ under the Act?

“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—

  1. any act of negligence or omission or commission by such person which causes loss or injury to the consumer; and
  2. deliberate withholding of relevant information by such person to the consumer;

13.    What is an unfair contract?

“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: —

  1. requiring manifestly excessive security deposits to be given by a consumer for the performance of contractual obligations; or
  2. 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
  3. refusing to accept early repayment of debts on payment of applicable penalty; or
  4. entitling a party to the contract to terminate such contract unilaterally, without reasonable cause; or
  5. 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
  6. imposing on the consumer any unreasonable charge, obligation or condition which puts such consumer to disadvantage

14.    What is a misleading advertisement?

Misleading advertisement” in relation to any product or service, means an advertisement, which—

  1. falsely describes such product or service; or
  2. 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
  3. 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
  4. deliberately conceals important information

15.    Who all can be made liable for a misleading advertisement?

Manufacturers, advertising agencies, celebrity endorsers and publishers can be made liable.

16.    What is e- Commerce?

E commerce under CP Act 2019 means buying or selling of goods or services Including digital products over digital or electronic network.

17.    What is an e commerce entity?

“e-commerce entity” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce, but does not include a seller offering his goods or services for sale on a marketplace e-commerce entity;

18.    What is CCPA?

The New Act provides power to Central Government to establish Central Consumer Protection Authority (CCPA) 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 Consumer and to promote, protect and enforce the rights of Consumer as a Class.

19.    What is the Constitution of the Central Authority?

The Central Authority shall consist of a Chief Commissioner and such number of other Commissioner to be appointed by the Central Government.

20.    Does the Central Authority have an Investigation Wing?

Yes, the Central Authority shall have an Investigation Wing headed by a Director General for the purpose of conducting inquiry or investigation.

21.    What are the powers of the Central Authority?

The Central Authority shall protect, promote and enforce the rights of the consumers as a class, and prevent violation of Consumers Rights under the Act.

22.    Does the Central Authority have Suo motu powers?

Yes, the Central Authority may inquire or cause an inquiry or investigation to be made into violations of Consumer Rights, either Suo motu or on a complaint received or on the directions from the Central Government.

23.    Does the Central Authority have the power to file complaints?

Yes, the Central Authority can file complaints before the District Commission, the State Commission or the National Commission as the case may be.

24.    Is there an appeal against decisions of CCPA?

A person aggrieved by any order passed by the Central Authority may file an appeal to the National Commission within a period of thirty days from the date of receipt of such order.

25.    Who is a product seller?

“product seller is 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—

  1. a manufacturer who is also a product seller; or
  2. a service provider, but does not include—
  1. a seller of immovable property, unless such person is engaged in the sale of constructed house or in the construction of homes or flats;
    1. 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;
    1. a person who—
      1. acts only in a financial capacity with respect to the sale of the product;
      1. is not a manufacturer, wholesaler, distributor, retailer, direct seller or an electronic service provider;
      1. 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.

26.    What is product liability?

It 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;

27.    What is “product liability action”?

It 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;

28.    What is meant by ‘Harm’?

“harm”, in relation to a product liability includes—

  1. damage to any property, other than the product itself;
  2. personal injury, illness or death;
  3. mental agony or emotional distress attendant to personal injury or illness or damage to property; or
  4. 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.

29.    Can I claim compensation if the product itself is damaged?

No, damage of the product itself cannot be the base for product liability compensation.

30.    Who all can be liable in a product liability action?

Manufacturer or a product service provider or a product seller

31.    What grounds can I claim compensation product manufacturer?

  1. A product manufacturer shall be liable in a product liability action, if—
  1. the product contains a manufacturing defect; or
    1. the product is defective in design; or
    1. there is a deviation from manufacturing specifications; or
    1. the product does not conform to the express warranty; or
    1. the product fails to contain adequate instructions of correct usage to prevent any harm or any warning regarding improper or incorrect usage.
  • A product manufacturer shall be liable in a product liability action even proves that he was not negligent or fraudulent in making the express warranty of a product.

32.      When can I claim compensation from product service provider?

A product service provider shall be liable in a product liability action, if—

  1. 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
    1. there was an act of omission or commission or negligence or conscious withholding any information which caused harm; or
    1. the service provider did not issue adequate instructions or warnings to prevent any harm; or
    1. the service did not conform to express warranty or the terms and conditions of the contract.

33.      When can I claim compensation from seller?

A product seller who is not a product manufacturer shall be liable in a product liability action,

  • if he has exercised substantial control over the designing, testing, manufacturing, packaging or labelling of a product that caused harm; or
  • he has altered or modified the product and such alteration or modification was the substantial factor in causing the harm; or
  • 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
  • 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
  • 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.

34.      What is the defence available in a product liability action?

  • The product was misused, altered, or modified.
  • 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.
  • The product was purchased and the product manufacturer had provided warnings or instructions to such employer;
  • The product was sold as a component of an end product and necessary warnings or instructions were given by the product manufacturer but the harm was caused to the complainant by use of the end product in which such component or material was used;
  • The product was legally meant to be used or dispensed only by or under the supervision of an expert 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
  • 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

35.      What is the procedure for filing the complaint before Consumer Commission?

A complaint:

A complaint can be presented by the complainant in person or by his agent. It can even be sent by registered post along with the court fee.

Normally three copies of the complaint are required to be submitted out of which one retained for the official purpose, one is forwarded to the opposite party and one is the for the complainant. In case the number of opposite parties is more correspondingly more copies of the complaint are required.

36.      Can a consumer complaint be resolved through mediation?

Yes. Either at the first hearing after admission, or at later stage if the District Commission is of the view that, there exists an element of settlement, can refer the complaint to Mediation with the consent of the parties.

Also, parties at any stage of the complaint can opt for settlement through mediation.

37.      Is there any fee to be paid for Mediation?

No, There is no fee prescribed for Mediation.

38.      Can appeal be filed after settlement through mediation?

No appeal lies after the settlement of dispute through mediation.

39.     Does consumer need an advocate to represent his case in the Commission?

Consumer Commissions are quasi-judicial bodies to provide simple and speedy justice. These have been kept free from the complicated judicial procedures. The manner is quite informal and free from the shackles of the Civil Court. There is no need for an advocate or any other pleader and consumer can himself or through his representative file and represent his complaint.

40.      What particulars should be furnished in the complaint?

  • Name, description and address of the complainant;
  • Name, description and address of the opposite party or parties;
  • Facts relating the complaint and when and where it arose;
  • Documents, if any in support of allegations

41.      What is the time limit for filing the complaint?

The complaint shall be filed within two years from the date on which the cause of action has arisen. This would mean two years from the day the deficiency in service or defect in goods has arisen/detected. This is also known as the limitation period for filing the complaint.

42.      How to make the payment of the Court fee?

Every complaint filed before District Commission/ State Commission/ National Commission shall be accompanied by a fee as specified, in the form of crossed Demand Draft drawn on a nationalized bank or through a crossed Indian Postal Order drawn in favour of the Registrar of the State Commission and payable at the respective place where the State Commission or the National Commission is situated. The concerned District Commission shall deposit the amount so received.

43.      What reliefs are provided by Consumer Commissions?

  1. Removal of defects from the goods;
  2. Replacement of the goods;
  3. Refund of the price paid;
  4. Removal of defects or deficiencies in the services;
  5. Award of compensation for the loss or injury suffered;
  6. Discontinue and not to repeat unfair trade practice or restrictive trade practice;
  7. To withdraw hazardous goods from being offered for sale;
  8. To cease manufacture of hazardous goods and desist from offering services which are hazardous in nature;
  9. If the loss or injury has been suffered by a large number of consumers who are not identifiable conveniently, to pay such sum (not less than 25% of the value of such defective goods or services provided) which shall be determined by the Commission;
  10. To issue corrective advertisement to neutralize the effect of misleading advertisement;
  11. To provide adequate costs to parties.

44. What if the consumer is not satisfied with the order of the Consumer commission?

Any consumer who is aggrieved by the order of a commission can prefer an appeal in the higher commission within a period of thirty days from the date of the order. The appeal can be preferred

against order of the District Commission before the State Commission

against order of the State Commission before the National Commission

against order of the National Commission before the Supreme Court Within 30 days

45.      Is there any fee for filing a complaint with the Commissions?

Every complaint filed shall be accompanied by a fee, as specified in the table given below, in the form of crossed Demand Draft drawn on a nationalized bank or through

a crossed Indian Postal Order in favour of the President of the District Commission or the Registrar of the State Commission or the Registrar of the National Commission, and payable at the respective place where the District Commission, State Commission or the National Commission is situated, or through electronic mode as per arrangement made by the Commission concerned.

Sl.NoValue of Goods or Service paid as ConsiderationCourt Fee
District Commission
1Upto 5 LakhNil
2Above 5 Lakh – Upto 10 LakhRs 200
3Above 10 lakh – Upto 20 LakhRs 400
4Above 20 Lakh – Upto 50 LakhRs 1000
5Above 50 Lakh – Upto 1 CroreRs 2000
State Commission
6Above 1 Crore – Upto 2 CroreRs 2500
7Above 2 Crore – Upto 4 CroreRs 3000
8Above 4 Crore – Upto 6 CroreRs 4000
9Above 6 Crore – Upto 8 CroreRs 5000
10Above 8 Crore – Upto 10 CroreRs 6000
National Commission
11Above 10 CroreRs 7500

46.      Is there any change in the amount to be deposited for filing an appeal?

For appeal before State Commission and National Commission, 50% of the total award amount passed by the low

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Television advertisement on online gaming and fantasy sports must carry mandatory warning message

Television advertisement on online gaming and fantasy sports must carry mandatory warning message

The Ministry of Information and Broadcasting has issued an advisory asking all private television broadcasters to follow guidelines issued by the Advertising Standards Council of India (ASCI) for advertisements relating to online gaming, fantasy sports etc. The Ministry has advised that the advertisements should not promote any activity prohibited by statute or law.

“It has come to the notice of Ministry of I&B that a large number of advertisements on Online Gaming, Fantasy Sports, etc have been appearing on the television. Concerns were expressed that such advertisements appear to be misleading, do not correctly convey to the customers the financial and other risks associated thereof, are not in strict conformity with the Advertising Code laid down under Cable Television Networks (Regulation) Act, 1995 and the Consumer Protection Act, 2019” the advisory said.

The advisory has been issued after a consultation meeting held by the I&B Ministry with the officials and representatives of the Ministry of Consumer Affairs, ASCI, News Broadcasters Association, Indian Broadcasting Foundation, All India Gaming Federation, Federation of Indian Fantasy Sports, and the Online Rummy Federation.

ASCI guidelines require that every such gaming advertisement must carry the following disclaimer:

‘This game involves an element of financial risk and may be addictive. Please play responsibly and at your own risk”. Such a disclaimer should occupy at least 20% of the advertisement space. 

The guidelines also state that gaming advertisements cannot depict users under the age of 18 years as engaged in playing a game of “online gaming for real money winnings” or suggest that such users can play these games. The advertisements should neither suggest that online gaming presents an income generating opportunity as an alternative to employment nor depict a person playing such games is more successful than others.

The Advertising Standards Council of India, established in 1985, is a Mumbai based self-regulatory voluntary organization of the advertising industry in India. It seeks to ensure that advertisements conform to its Code for Self-Regulation.  Under the Cable Television Networks (Regulation) Act, 1995 it is mandatory for television networks to follow the advertising code laid down by ASCI.

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RERA does not bar remedies under the Consumer Protection Act – Supreme Court

RERA does not bar remedies under the Consumer Protection Act – Supreme Court

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which sought to protect home-buyers as well as help boost investments in the real estate industry. The Act established a Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution. A regulation like RERA was needed in order to revive confidence in our country’s real estate sector. It is one of the leading revenue generators in our country and it is needed some transparent government authority to keep a check on developers.

The Consumer Protection Act, 2019 (CP Act) proposed a slew of measures and tightens the existing rules to further safeguard consumer rights. Introduction of a central regulator, strict penalties for misleading advertisements and guidelines for e-commerce and electronic service providers were some of the key highlights of the Act.

However, a court reject an appeal on the argument that RERA barred remedies under the Consumer Protection Act. Let us refer to the case of Imperia Structures Ltd vs Anil Patni to know about this issue more.

Facts of the Case:

  • A Housing Scheme Project was launched by the Appellant in 2011 and all the original Complainants booked their respective apartments by paying the booking amounts and thereafter each of them executed Builder Buyer Agreement with the Appellant.
  • The Respondents booked an apartment whose basic price was Rs.56,01,750 to which additional charges such as preferential location charges for “corner” “park facing” and for “higher floor” as well as charges for reserve parking, club membership and development were added, which made the aggregate price Rs.76,43,000.
  • The Agreement dated 30.11.2013 dealt with “delay due to reasons beyond the control of the Developer/Company” and “failure to deliver possession due to Government Rules, Orders, Notifications, etc.” respectively.
  • On 01.05.2016, the Real Estate (Regulation and Development) Act, 2016 (RERA Act) came into force.
  • Over a period of time the Respondents had paid Rs.63,53,625 out of the agreed sum. However, even after four years there were no signs of the Project getting completed.

Case before the Commission

  • In the circumstances a Consumer Case was preferred by the Respondents before the Commission
  • In its response to the Consumer Case, the Appellant challenged the jurisdiction of the Commission inter alia, on the ground that the apartment having been booked for commercial purposes, the Respondents would not come within the definition of “the consumer” under Section 2(d) of the CP Act.
  • No reference was however made to the fact that the Project was registered under the RERA Act
  • The Consumer Case was allowed by the Commission,concluding that the Appellant was deficient in rendering service.
  • The Commission granted relief to the Respondents of refund of the amounts deposited by each of the Complainants with simple interest @ 9% pa from the respective dates of deposits along with Rs.50,000 towards costs.
  • It was also directed that the amounts be deposited within 4 weeks, failing which the amounts would carry interest @ 12% p.a.

Appeal to Supreme Court (SC)

The Appellant being aggrieved preferred an appeal before the Supreme Court (SC).

At the outset, SC had to deal with two issues. It was concluded by the Commission that; (i) all the Complainants were ‘Consumers’ within the meaning of the Act and that; (ii) there was delay on part of the Appellant in completing the construction within time.

In the view of the SC, the conclusions drawn by the National Commission in relation to these issues were absolutely correct and did not call for any interference.

Observations of the SC on the remedies available to the consumers under the provisions of the CP Act

It was consistently held by the SC that the remedies available under the provisions of the CP Act were additional remedies over and above the other remedies including those made available under any special statutes and that the availability of an alternate remedy was no bar in entertaining a complaint under the CP Act.

Before SC considered whether the provisions of the RERA Act have made any change in the legal position stated in the preceding paragraph, SC noted that an allottee placed in circumstances similar to that of the Complainants, could have initiated following proceedings before the RERA Act came into force:

  • If he satisfied the requirements of being a “consumer” under the CP Act, he could have initiated proceedings under the CP Act in addition to normal civil remedies.
  • However, if he did not fulfil the requirements of being a “consumer”, he could initiate and avail only normal civil remedies.
  • If the agreement with the developer or the builder provided for arbitration:
  • in cases, he could initiate or could be called upon to invoke the remedies in arbitration
  • in other cases, he could still choose to proceed under the CP Act

Observations of the SC on the Provisions of the RERA Act

  • In terms of Section 18 of the RERA Act, if a promoter fails to complete or is unable to give possession of an apartment duly completed by the date specified in the agreement, the Promoter would be liable, on demand, to return the amount received by him in respect of that apartment if the allottee wishes to withdraw from the Project.
  • Such right of an allottee was specifically made “without prejudice to any other remedy available to him”.
  • The right so given to the allottee was unqualified and if availed, the money deposited by the allottee had to be refunded with interest at such rate as may be prescribed.
  • The proviso to Section 18(1) contemplated a situation where the allottee does not intend to withdraw from the Project.
  • In that case he was entitled to and had to be paid interest for every month of delay till the handing over of the possession.
  • It was up to the allottee to proceed either under Section 18(1) or under proviso to Section 18(1).
  • The RERA Act thus definitely provides a remedy to an allottee who wishes to withdraw from the Project or claim return on his investment.

Observations of the SC on whether RERA Act barred consideration of the grievance of an allottee by CP Act

  • It was, therefore, required to be considered whether the remedy so provided under the RERA Act to an allottee was the only and exclusive modality to raise a grievance and whether the provisions of the RERA Act barred consideration of the grievance of an allottee by other forums.
  • Section 79 of the RERA Act barred jurisdiction of a Civil Court to entertain any suit or proceeding in respect of any matter which the Authority, the adjudicating officer or the Appellate Tribunal is empowered under the RERA Act to determine.
  • Section 88 specifies that the provisions of the RERA Act would be in addition to and not in derogation of the provisions of any other law, while in terms of Section 89, the provisions of the RERA Act shall have effect notwithstanding anything inconsistent contained in any other law for the time being in force.
  • On plain reading of Section 79 of the RERA Act, an allottee, would stand barred from invoking the jurisdiction of a Civil Court.
  • However, as regards the allottees who can be called “consumers” within the meaning of the CP Act, two questions would arise; a) whether the bar specified under Section 79 of the RERA Act would apply to proceedings initiated under the provisions of the CP Act; and b) whether there is anything inconsistent in the provisions of the CP Act with that of the RERA Act
  • In Malay Kumar Ganguli vs. Dr. Sukumar Mukherjee, it was held by the SC that Section 79 of the RERA Act does not in any way bar the Commission or Forum under the provisions of the CP Act to entertain any complaint.
  • Proviso to Section 71(1) of the RERA Act entitled a complainant who had initiated proceedings under the CP Act before the RERA Act came into force, to withdraw the proceedings under the CP Act with the permission of the Forum or Commission and file an appropriate application before the adjudicating officer under the RERA Act.
  • The proviso thus gave a right or an option to the concerned complainant but did not statutorily force him to withdraw such complaint nor do the provisions of the RERA Act create any mechanism for transfer of such pending proceedings to authorities under the RERA Act.
  • As against that the mandate in Section 12(4) of the CP Act to the contrary was quite significant.
  • Again, insofar as cases where such proceedings under the CP Act were initiated after the provisions of the RERA Act came into force, there was nothing in the RERA Act which barred such initiation.
  • The absence of bar under Section 79 to the initiation of proceedings before a forum which cannot be called a Civil Court and express saving under Section 88 of the RERA Act, made the position quite clear.
  • Further, Section 18 itself specified that the remedy under said Section was “without prejudice to any other remedy available”.
  • Thus, the parliamentary intent was clear that a choice or discretion was given to the allottee whether he wished to initiate appropriate proceedings under the CP Act or file an application under the RERA Act.
  • It was true that some special authorities were created under the RERA Act for the regulation and promotion of the real estate sector and the issues concerning a registered project were specifically entrusted to functionaries under the RERA Act.
  • But for the present purposes, SC went by the purport of Section 18 of the RERA Act.
  • Since it gave a right “without prejudice to any other remedy available’, in effect, such other remedy was acknowledged and saved subject always to the applicability of Section 79.

Conclusion by the Supreme Court

  • SC, therefore, rejected the submissions advanced by the Appellant and answered the questions raised against the Appellant.
  • SCalso considered the effect of the registration of the Project under the RERA Act.
  • In the present case the apartments were booked by the Complainants in 2011-2012 and the Builder Buyer Agreements were entered into in November, 2013.
  • As promised, the construction should have been completed in 42 months.
  • The period had expired well before the Project was registered under the provisions of the RERA Act.
  • Merely because the registration under the RERA Act was valid till 31.12.2020 did not mean that the entitlement of the concerned allottees to maintain an action stands deferred.
  • It was relevant to note that even for the purposes of Section 18, the period has to be reckoned in terms of the agreement and not the registration.
  • Therefore, the entitlement of the Complainants had to be considered in the light of the terms of the Builder Buyer Agreements and was rightly dealt with by the Commission.
  • It had to be noted that the Consumer Protection Act was enacted by the Parliament “to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effectively administration and settlement of the consumers’ dispute and for matters connected therewith or incidental thereto”.
  • It was significant that Section 100 was enacted with an intent to secure the remedies under 2019 Act dealing with protection of the interests of Consumers, even after the RERA Act was brought into force.
  • Therefore, the proceedings initiated by the complainants in the present cases and the resultant actions including the orders passed by the Commission were fully saved.
  • SC rejected all the submissions advanced by the Appellant.

Therefore, period for allotment of flat to a homebuyer has to be reckoned from the date of the buyer agreement and not from the date of the registration of the project under the Real Estate Regulation and Development Act (RERA Act).Also,RERA does not bar remedies under the Consumer Protection Act.

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E- Commerce platforms now cannot charge cancellation fees

E- Commerce platforms now cannot charge cancellation fees

Electronic Commerce in India

  1. Electronic commerce (E-commerce) refers to the buying and selling of physical goods or services using the internet. India has become one of the largest consumer markets for e-commerce industries.
  2. E-commerce means buying or selling of goods or services including digital products over digital or electronic network.
  3. The growth of these e-commerce industries in India has bought in many old and new players in the market like Amazon India, Flipkart, Snapdeal, etc.; which are very prominent in this industry and earn a lot of revenue from the nation.
  4. Online shopping has in fact, become a trend owing to the development of the web portals. India is developing rapidly more towards the e-commerce industry due to the benefits it has for instance time saving, etc.

E-commerce during the COVID 19 pandemic

  1. With the outbreak of the COVID 19 pandemic, it has rather become more convenient to shop from the online web portals which is much safer in comparison to visit the physical stores.
  2. Even during the lockdown period when the shops were shut, it was the e-commerce industries only that were providing people with essential commodities at their doorstep. This depicts the importance of these industries in our lives.

E-Commerce platforms cannot charge cancellation fees

The Central Government notified the new Consumer Protection Rules for e-commerce termed as the Consumer Protection (E-Commerce) Rules, 2020. It also notified the new Central Consumer Protection Authority (CCPA), with sweeping powers to book those found violating consumer rights.

The watchdog led by a chief commissioner will enforce the Consumer Protection Act, 2019, regulating issues related to consumer rights, including unfair trade practices and misleading advertisements.

The new rules seek to lay down duties for the sellers on marketplace e-commerce and duties and liabilities of inventory e-commerce entities, making online retailers more accountable and their businesses more transparent.

However, these rules shall not apply to any activity of a natural person carried out in a personal capacity not being part of any professional or commercial activity undertaken on a regular or systematic basis.

The Consumer Protection (E-Commerce) Rules, 2020 states that platforms cannot charge cancellation fees if a consumer chooses to cancel an order after confirming the purchase, which made the lives of the consumers easier. Otherwise, e-tailers should also pay similar charges, if they cancel the purchase order unilaterally for any reason, according to the new guidelines.

Who shall these rules apply to?

These rules shall apply to:-

  1. all goods and services bought or sold over digital/electronic network including digital products
  2. all models of e-commerce, including marketplace and inventory models of e-commerce
  3. all e-commerce retail, including multi-channel single brand retailers and single brand retailers in single or multiple formats and
  4. all forms of unfair trade practices across all models of e-commerce
  5. e-commerce entity which is not established in India, but systematically offers goods or services to consumers in India.

What are the duties of e-commerce entities?

The Rules provide for the duties of the seller and various e-commerce entities.

1.An e-commerce entity shall appoint a nodal person of contact or an alternate senior designated functionary who is resident in India, to ensure compliance with the provisions of the Act or the rules made thereunder.

2. Every e-commerce entity shall provide the following information in a clear and accessible manner on its platform, displayed prominently to its users, namely:-

i. legal name of the e-commerce entity

ii. principal geographic address of its headquarters and all branches

iii. name and details of its website; and

iv. contact details of customer care as well as of grievance officer

3. Every e-commerce entity shall establish an adequate grievance redressal mechanism and shall appoint a grievance officer for consumer grievance redressal

4. Every e-commerce entity shall ensure that the grievance officer acknowledges the receipt of any consumer complaint within 48 hours and redresses the complaint within 1 month from the date of receipt of the complaint.

5. Where an e-commerce entity offers imported goods or services for sale, it shall mention the name and details of any importer from whom it has purchased such goods or services, or who may be a seller on its platform.

6. Every e-commerce entity shall endeavour on a best effort basis to become a partner in the convergence process of the National Consumer Helpline of the Central Government.

7. No e-commerce entity shall impose cancellation charges on consumers cancelling after confirming purchase unless similar charges are also borne by the e- commerce entity, if they cancel the purchase order unilaterally for any reason.

8. Every e-commerce entity shall record the consent of a consumer for the purchase offered on its platform where such consent is expressed through an explicit and affirmative action

9.Every e-commerce entity shall effect all payments towards accepted refund requests of the consumers as prescribed by the RBI or any other competent authority under any law for the time being in force, within a reasonable period of time, or as prescribed under applicable laws.

What restrictions are imposed on e-commerce companies?

No e-commerce entity shall:-

  1. manipulate the price of the goods or services offered on its platform in such a manner as to gain unreasonable profit by imposing on consumers any unjustified price
  2. discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act.
  3. adopt any unfair trade practice

These rules were formulated in an attempt to create more transparency for buyers, ecommerce platforms selling in India. The effort to create consumer awareness comes against the backdrop of the government’s push to promote Indian products over imported ones in order to boost the startup and the MSME sectors, which took massive hits following the onset of the coronavirus pandemic. The provisions of the Consumer Protection Act, 2019 shall apply for any violation of the provisions of these rules.

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