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CONSUMER PROTECTION ACT, 1986[1]

Table of Contents

QUESTION BANK

Q.1. Discuss the nature of criminal sanction for the sale of adulterated substances and for the use of false weights and measures briefly. (Apr.04)

Q.2. Discuss the historical background of the Consumer Protection Act-1986.

Q.3. Give a brief account of the evolution of consumerism in India.

Q.4. Explain the history and development of consumerism.

SYNOPSIS

HISTORY AND DEVELOPMENT OF CONSUMERISM
a) Consumer movement in the U.S.A.-
b) Consumer movement in England-
c) Consumer Movement in India-
i) Food Adulteration:-
ii) Drug and Cosmetic:-

iii) Essential Commodities:-

iv) The Consumer Protection Act.1986-

Substantive as well as procedural law-

CRIMINAL SANCTION UNDER DIFFERENT LAWS.
a) Sale of noxious and adulterated substances:-

‘Adulterated’:-

b) False weights and measures-
i) Penalty for the use of non-standard weights or measures-
ii) Penalty for tampering, altering in any reference standard, secondary standard, or working standard –

iii) Penalty for making false weight or measure-

iv) Penalty for making of any weight or measure which bears thereon any false inscription of weight, or measure or number
c) Use of unsafe carrier:-

I. HISTORY AND DEVELOPMENT OF CONSUMERISM-

In earlier English Common law, the doctrine of caveat emptor (i.e. let the buyer beware)[2] was the philosophy of the law of sale. It might be due to the English people being traders. The purchaser was supposed to be responsible if any defect was found in the goods after the sale. He was supposed to purchase goods with open eyes and care. But subsequently, this rule got exceptions with the advent of time. Now, the law is governed by exceptions rather than the rule of caveat emptor. This doctrine accorded the shape of laissez-faire. This was the situation up to the end of the 19^th century. The existing remedy for consumer protection under common law was an action for breach of contract or action for wrong under tort. However, the existing remedies were insufficient to soften consumers’ rigour.

After the advent of the 20^th century, certain changes occurred in the nature of industrial corporations, technology, and commerce. This made the product more sophisticated and out of the reach of consumers who wanted to understand its composition. The rule of ‘demand and supply was changed vice-versa, becoming ‘supply and then demand’. Markets were flooded with products. Advertisements influence a consumer and fall into a dilemma to choose products in a competitive market. Accordingly, consumers’ capacity was affected to a great extent. In many cases, consumers were found cheating.

a) Consumer movement in the USA.-

The modern Consumer Movement was launched first in 1970 by U.S. President John Kennedy.

b) Consumer movement in England-

In England, under common law, it is used to lie either for breach of contract or a wrongful act under tort to protect consumer action. Donoghue V/s. Stevenson [3] is the landmark judgment on protecting the Consumer against harmful and noxious material or food.

Facts: – The plaintiff drank a bottle of ginger beer manufactured by the defendant company. The bottle contained the decomposed snail, which was not tested (recovered) until the greater part of the bottle had been consumed. The bottle was made of dark opaque (non-transparent) glass, so its contents could not be ascertained by inspection. The plaintiff suffered shock and severe gastroenteritis.

Atkinson L. J. Held: – Defendant is liable for the breach of duty to take care that the bottle did not contain any noxious matter. Every manufacturer has a duty to care for his consumers and ensure that their product does not contain harmful and noxious materials.

c) Consumer Movement in India-

In India, the provisions to protect consumers are found in the constitution, Indian Penal Code, etc. Many laws, such as the Sale of Goods Act, have been passed to protect consumers.1930, The Indian Contract Act.1872, Agricultural Produce (Grading and Marking) Act.1937, Drugs and Cosmetics Act.1940, Drugs (Control) Act.1950, Drugs and Magic Remedies (Objectionable Advertisements) Act.1954, Prevention of Food Adulteration Act.1954, Essential Commodities Act.1955, Essential Services Maintenance Act., 1968, Trade and Merchandise Marks Act.1958, Standards of Weights and Measures Act.1976, Bureau of Indian Standards Act.1986, The Monopolies and Restrictive Trade Practices Act., 1969, etc.

i) Food Adulteration[4]:-

The Prevention of Food Adulteration Act 1954 was passed to protect Consumers from adulterated foods. This Act is a legislative measure for social defence and to eliminate danger to human life from the sale of unwholesome articles of food.

In Tulsiram V/s. State of Madhya Pradesh[5]

The Supreme Court held that the vendor of adulterated goods, such as a mixture of two edible oils without declaration, is liable for conviction irrespective of whether the mixture has an injurious effect or not.

ii) Drug[6] and Cosmetic[7]:-

The Drugs and Cosmetics Act of 1940 regulates the import, manufacture, sale, and distribution of drugs and cosmetics. Its main aim is to protect Consumers from substandard drugs and cosmetics.

Under this Act, the consumer has a right to know whether medicines are patent or proprietary according to the standard set out by the World Health Organisation or by this Act.

Misbranding of drugs, wrongly importing a spurious drug, etc., is prohibited.

iii) Essential Commodities[8]:-

The Essential Commodities Act of 1955 is passed to secure equitable distribution and availability at fair prices of essential commodities. This Act connotes the interest of the General Public and not the interest of the dealers or traders.

Ss.3, 6, 7, 10, 12-A, and 14 of the Act protect and prevent a number of consumer rights.

However, all these Acts more or less failed to protect consumers, and hence, eventually, the Consumer Protection Act of 1986 was passed. This Act brought the Consumer into the position of King and replaced the maxim ‘Caveat Emptor’ (i.e., buyer be aware) with ‘Caveat Venditor’ (i.e., seller be aware).

iv) The Consumer Protection Act, 1986-

The Consumer Protection Act 1986 (hereinafter called ‘the Act’) was enacted to provide simple, speedy, and inexpensive justice to the Consumer from restrictive trade practices or unfair trade practices adopted by the seller of goods or services. The Act has made provisions for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and for matters connected therewith. Separate Forums are constituted by this Act at the District, State, and National levels. Complaints can be lodged before the District Forum[9] and in certain types of cases, before the State Commission[10]. Appeals against the order of the District Forum lie to the State Commission, from where the further appeal lies with the National Commission. Further, the appeal from the National Commission lies with the Supreme Court. This Act aims to provide speedy and simple redressal to consumer disputes by providing self-contained quasi-judicial machinery. This was not so in other legislations; the normal procedure under C.P.C. was required to be followed by courts. This Act is social welfare legislation made for the protection of the interest of consumers, and therefore, no court fees are to be affixed to the complaint by the complainant. Rules of law do not strictly bind these Forums but are based on equity and good conscience.

Substantive as well as procedural law-

Consumer Protection Act 1986, like I.P.C, Indian Contract Act, etc., is substantive law in a sense; it lays down the rules to protect the interests of the consumers. It is also a procedural law in the sense it lays down the rules of procedure for the establishment of consumer redressal authorities. It also provides a procedure for receiving complaints about their hearing, orders thereon, appeals therefrom, etc. Like the Civil Procedure Code. S.3 of the Consumer Protection Act provides that the Act does not derogate any other law. Still, 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.

In Secretary, Co-Operative Agriculture Society V/s. M. Lalitha[11]

Held:- that remedy before Consumer Forum is in addition and not in derogation to remedy under other Acts. Therefore, the jurisdiction of the Forum cannot be ousted because another remedy is available under the Arbitration Act.

In addition to this Act, the Consumer may have remedies available in various other laws, such as the M.R.T.P Act of 1969, the Insurance Act, the Civil Procedure Code, The Arbitration and Conciliation Act, The Motor Vehicles Act, and The Railway Claim Tribunal Act.

So, as a consequence of S.3, a complainant can seek redress either under this Act or under the provisions of any other law.

II. CRIMINAL SANCTION UNDER DIFFERENT LAWS-

In different laws, criminal sanctions (punishments) are imposed. Such laws are the Indian Penal Code and the Drugs and Cosmetics Act.1940; Drugs (Control) Act.1950; Drugs and Magic Remedies (Objectionable Advertisements) Act.1954; Prevention of Food Adulteration Act.1954; Essential Commodities Act.1955; Essential Services Maintenance Act., 1968; Trade and Merchandise Marks Act.1958; Standards of Weights and Measures Act.1976; Bureau of Indian Standards Act.1986; The Monopolies and Restrictive Trade Practices Act.1969; etc.

However, for the sake of study, we will discuss the following acts with punishments provided thereto, namely-

a) Sale of noxious[12] and adulterated[13] substances:-

S.2 (xv) of the Prevention of Food Adulteration Act. 1954 defines that whenever the word ‘noxious’ is used in relation to an article of food, it means that the article is repugnant to human use.

‘Adulterated’:-

S.2 (i) of the Prevention of Food Adulteration Act 1954 defines ‘adulterated’- as an article of food that shall be deemed to be adulterated-

if the article sold by a vendor is not of the nature, substance, or quality demanded by the purchaser and is to his prejudice, or is not of the nature, substance, or quality which it purports or is represented to be:
if the article contains any other substance which affects, or if the article is so processed as to affect injuriously the nature, substance, or quality thereof;
if any inferior or cheaper substance has been substituted wholly or in part for the article so as to affect injuriously the nature, substance, or quality thereof;
if any constituent of the article has been wholly or in part abstracted so as to affect injuriously the nature, substance, or quality thereof;
if the article had been prepared, packed, or kept under insanitary conditions whereby it has become contaminated or injurious to health;
if the article consists wholly or in part of any filthy, putrid, rotten, decomposed, or diseased animal or vegetable substance or is insect-infected or is otherwise unfit for human consumption;
if the article is obtained from a diseased animal;
if the article contains any poisonous or other ingredients which render it injurious to health;
if the container of the article is composed, whether wholly or in part, of any poisonous or deleterious substance which renders its contents injurious to health;
if any colouring matter other than that prescribed in respect thereof is present in the article, or if the amount of the prescribed colouring matter which is present in the article is not within the prescribed limits of variability;
if the article contains any prohibited preservative or permitted preservative in excess of the prescribed limits;
if the quality or purity of the article falls below the prescribed standard or its constituents are present in quantities not within the prescribed limits of variability, which renders it injurious to health;
if the quality or purity of the article falls below the prescribed standard or its constituents are present in quantities not within the prescribed limits of variability but which do not render it injurious to health;

Provided that where the quality or purity of the article, being primary food, has fallen below the prescribed standards or its constituents are present in quantities not within the prescribed limits of variability, in either case, solely due to natural causes and beyond the control of the human agency, then, such article shall not be deemed to be adulterated within the meaning of this sub-clause.

Explanation– where two or more articles of primary food are mixed together, and the resultant article of food-

is stored, sold, or distributed under a name which denotes the ingredients thereof; and
is not injurious to health,

-then such resultant article shall not be deemed to be adulterated within the meaning of this clause;

16 of the Act has prescribed punishment for the import, manufacture, sale, store, sell or distribution of any adulterated food article shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than one thousand rupees.

b) False weights and measures [14]–

The Standards of Weights and Measures Act of 1976 provides punishment for various acts; however, we will discuss some of them.

Penalty for using non-standard weights or measures:
imprisonment up to 6 months, or a fine of up to Rs. 1000 or both (S.50).

Penalty for tampering, altering in any reference standard, secondary standard, or working standard –

imprisonment up to two years or a fine up to Rs 5000 or both.
Penalty for making of false weight or measure–
imprisonment up to 1 year or fine up to Rs. 2000 or with both.

Penalty for making of any weight or measure which bears thereon any false inscription of weight, or measure or number– imprisonment up to 1 year or fine up to Rs. 2000 or with both.

c) Use of an unsafe carrier[15]:-

S.190 of the Motor Vehicle Act provides punishment for using the vehicle in unsafe conditions:-

Any person who drives or causes or allows to be driven in any public place a motor vehicle or trailer while the vehicle or trailer has any defect, which such person knows of or could have discovered by the exercise of ordinary care and which is calculated to render the driving of vehicle a source of danger to person and vehicles using such place, shall be punishable with fine which may extend to two hundred and fifty rupees, or if as a result of such defect, any accident is caused, causing bodily injury or damage to property, punishment is imprisonment up to three months or fine up to rupees one thousand or both.
Any person who drives or causes or allows to be driven, in any public place, a motor vehicle which violates the standards prescribed in relation to road safety, control to noise and air pollution shall be punishable for the first offence with a fine up to one thousand rupees and for any second or subsequent offence with a fine up to rupees two thousand.
any person who drives or causes to be driven or allows to be driven, in any public place, a motor vehicle which violates the provisions of this Act or the Rules made there under relating to the carriage of goods which are of dangerous or hazardous nature to human life, shall be punishable for the first offence for a fine up to rupees three thousand or with imprisonment up to one year, or with both, and for any second offence or subsequent offence with a fine up to rupees five thousand, or with imprisonment up to three years or with both.

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[1] ग्राहक संरक्षण [ उपभोक्ता संरक्षण ]

[2] खरेदीदार सावधान! [ खरीदार खबरदार!]

[3] (1932) AC 562

[4] अन्न भेसळ [ खाद्य अपमिश्रण]

[5] AIR 1985 SC 299

[6] औषधे [ खाद्य अपमिश्रण]

[7] सौंदर्य प्रसाधने [ प्रसाधन सामग्री]

[8] जीवनावष्यक वस्तु [ एक महत्वपूर्ण वस्तु]

[9] जिल्हा ग्राहक तक्रार निवारण मंच [ जिला उपभोक्ता शिकायत निवारण फोरम]

[10] राज्य आयोग [ राज्य आयोग]

[11] [AIR 2004 SC 448]

[12] अपायकारक [ हानिकारक]

[13] भेसळयुक्त [ मिलावटी]

[14] बनावट वजन मापे [ नकली वजन] ‘False weight or measures’ means any weight or measure which does not conform to the standards established by or under this Act in relation to that weight or measure.

[15] असुरक्षित वाहन वापरणे [ असुरक्षित वाहन का उपयोग करना]