COMPETITION ACT, 2002

Introduction:

Competition Act was passed in 2002 to govern commercial competition in India replacing
the Monopolies and Restrictive Trade Practices Act, 1969. This new Act aims to dissuade
activities which result in restrictive and unfair competition in India and extends to the
whole of India. The Act has been implemented to ensure that every individual and firm
operating in India get equal opportunities to grow and flourish. Promotion of competition
offers more high-quality products at affordable price to the consumers while also fostering
greater accountability and transparency among business entities. This Act has been
amended in 2007 and 2009.

Objectives of the Competition Act, 2002:

The Act seeks to provide a legal framework and tools to ensure that competition
policies are met, to prevent anti- competition practices, and provide for the penalising
such acts. The Act promotes free and fair competition which protects the freedom of
trade of people in the business domain. The main objectives of the Competition Act,
2002 are:

1. To provide the framework for the establishment of the Competition Commission.

2. To prevent monopolies and to promote competition in the market.

3. To ensure the freedom of trade for the participating individuals and business
entities in the market.

4. To protect the interest of the consumers.

Features of Competition Act, 2002:

The following are the features of the Competition Act:

1. Prohibition of Anti-competitive Agreements:

Any individual or enterprise shall not enter into any agreement to deal in
production, supply, or distribution which may cause a negative impact regarding
competition in India. Such agreements can be vertical or horizontal Vertical
agreements are those agreements between enterprises at different stages of
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production, while horizontal agreements are those between enterprises at the same
production level. The existence of any such agreements is considered illegal.

2. Prohibition of Abuse of Dominant Position:

In case an enterprise or an associated individual is found indulging in practices

that are unfair or discriminatory, it shall be considered as abuse of the dominant
position. If a party is found to be in abuse of its position, then it will be subjected
to an investigation from the concerned authorities.

3. Prohibition of Cartels:

As per Section 2(c) of this Act, Cartel' is an association of producers, sellers,

distributors, traders, or service providers who, by agreement amongst themselves,
limit, control, or attempt to control the production, distribution, sale or price of or
trade in goods or provision of services. Formation of any cartel which intends to
hurt competition among individuals or firms will be considered a criminal
offence and legal action would be initiated by the Competition Council of India
against such individual or enterprise.

4. Regulation of Combinations:

As per the Act, a combination is defined as terms which lead to acquisitions or

mergers of business units. But if such combinations cross the limits as put forth
by the Act, then the parties involved would be under the scrutiny of the
Competition Commission of India.

5. Informative Nature of this Act:

To secure misunderstanding between enterprises and individuals, an enterprise

shall inform the Competition Council of India regarding their dealings that are
likely to affect competition in the market before taking such action or entering
into such an agreement.

6. Competition Commission of India:

The Competition Commission of India consists of a maximum of six members

who are tasked with sustaining and promoting the interests of consumers to foster
an ideal environment for economic competition. The other function of the
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 Commission is to advise the Government of India regarding competition in the
economy and create public awareness in the country on the same issue.

COMPETITION APPELLATE TRIBUNAL (CAT)

The Competition Appellate Tribunal (CAT) is a statutory body established under

the provisions of the Competition Act, 2002 to hear and dispose of appeals against
any order passed by the Competition Commission of India. It also adjudicates a
claim for compensation that may arise from the findings of the Competition
Commission of India. The Central Government of India set up this Tribunal on 15
May, 2009 having its headquarters in New Delhi.

Composition of CAT:

The Tribunal consists of a chairman who shall be the justice of the Supreme Court
or a judge of a High Court. Besides, the chairman, the Tribunal shall consist of
more than two members to be appointed by the Central Government who shall be
persons of ability, integrity, and standing having in-depth knowledge and
professional experience of more than 25 years in competition matters including
Competition Law and policy, international trade, commerce, management, finance,
etc. Both chairman and members are appointed for 5 years and shall be eligible for
re-appointment till they attain the age of 68 and 65 years respectively.

Procedure for Filing Appeal:

Every appeal shall be filed with the Tribunal within two months from the date on
which a copy of the order issued by the Competition Commission of India is
received. It should be done in the prescribed form on the payment of certain amount
of fees. The Tribunal may allow an appeal after two months provided it is satisfied
with the reason given to it for the delay.

The Tribunal may, after giving the parties to the appeal, an opportunity of being
heard, pass such orders thereon as it deems fit, confirming, modifying, or setting
aside the direction, decision or order appealed against. A copy of the order shall be
sent to the Competition Commission of India and all parties to the appeal. The
appeal shall be dealt with by the Tribunal and disposed of within six months from
the date of the appeal.

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Powers of Competition Appellate Tribunal:

The Tribunal shall have the same powers as are vested in a Civil Court under the
Code of Civic Procedure, 1908 while trying a suit in respect of the following:

1. Summoning or enforcing the presence of any person for examination on oath;

2. Requiring the production of relevant documents;

3. Receiving evidence of affidavits;

4. Issuing commissions for the examination of documents of witnesses;

5. Reviewing its decisions; dismissing a representation for default or deciding ex-

parte;

6. Setting aside any order of dismissal of any representation for default or any order
passed by it ex-parte;

7. Any other matter which may be prescribed.

Every order made by the Tribunal shall be enforced by it in the same manner as if it
were a decree made by a court in the suit pending therein. If any person fails to
obey the order issued by the Tribunal, shall be liable for a penalty of not exceeding
1 crore or imprisonment upto three years or both as the Chief Metropolitan
Magistrate may think fit.

OFFENCES AND PENALTIES:

Penalties Recognised under Competition Act, 2002:

The Act is meant to prevent unfair trade practices adopted by unscrupulous business
entities to gain an edge over their competitors or by entering into anti- competitive
agreements. The Competition Commission is empowered to levy a penalty on such
a business entity which deliberately indulges in unfair trade practices or fails to
follow the provisions of the Competition Act. A person or entity under this Act is at
liberty to make an application to the Appellate Tribunal about the recovery of
compensation for any loss or damage that has been done due to such failure to
comply by another person or entity. The Commission then can either approve,
sanction, or exempt the non-compliant company in this relation and order it to
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fulfill the losses. The following is a brief account of such penalties levied by the
Commission:

1. Penalty for Failure to Comply with the Directions of the Commission:

In any case, if a person or entity fails to follow the direction given by the
Commission under Section 36 (2) and (4) or the directions given by the Director
General while exercising the powers referred to in Section 41 (2), and that too
without any reasonable cause, then such a person or entity will be punishable and
shall have to pay a fine which could extend up to the sum of Rs. 1 lakh for each
day of non-compliance. However, this sum of penalty shall not exceed Rs. 1
crore.

2. Penalty for Failure to Furnish Information on Combinations:

In case any person or entity fails to give notice to the Commission under Section
6(2), then such a person or entity shall be imposed a penalty which may extend
up to 1% of the total turnover of the assets of such a combination.

3. Penalty for False Statement or Omission to Give Crucial Information:

In case a person or an entity makes a false statement knowing the fact that it is
false or omits to submit the material information towards compliance with the
Competition Act 2002, then such a person or entity is liable to pay a penalty of
not less than Rs. 50 lakhs subject to a maximum of Rs. 1 crore as may be
determined by the Commission.

4. Penalty for the Offences Concerning Furnishing the Information:

In case a person who is required to provide information under the Competition

Act, 2002 in the form of any document or wilfully alters them or tries to suppress
or destroy any such document, then such a person is liable to be punished with a
fine which may extend up to Rs. 1 crore.

ANTI-COMPETITIVE AGREEMENTS

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Anti-competitive agreements are those agreements which are made by two or more
firms competing in the same market to fix prices or reduce stocks, etc. to
manipulate the market in their favour. This has the effect of the companies
minimising the competition in the market which may adversely affect the interest of
the ultimate consumer. Examples of agreements which are are likely to cause an
appreciable adverse effect on competition include:

1. Tie-in arrangement requiring a purchaser of goods, as a condition of such

purchase, to purchase compulsorily some other goods.

2. Exclusive supply agreement limiting in any manner the purchaser in the course of
his trade from acquiring or otherwise dealing in any goods, other than those of the
seller or any other person.

3. Exclusive distribution agreement restricting or withholding the output or supply

of any goods or allocating any area or market for the disposal or sale of the goods.

4. Refusal to deal which restricts or is likely to restrict, by any method, the persons
or classes of persons to whom goods are sold or from whom goods are bought.

5. Resale price maintenance in which goods are sold on the condition that the prices
to be charged on the resale by the purchaser shall be the prices stipulated by the
seller.

All the above mentioned agreements are termed as Appreciable Adverse Effect on
Competition (AAEC) agreements. The Act expressly states that such agreements
shall be void. An AAEC agreement is classified as any agreement that results in-

1. Directly affects purchase or sale prices.

2. Indirectly affects purchase or sale prices.

3. Restricts production.

4. Limits supply.

5. Limits technical development.

6. Limits service provision in the market.

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7. Leads to the rigging of bids.

8. Leads to collusive bidding.

ABUSE OF DOMINANT POSITION

The abuse of the dominant position is prohibited by Section 4 of the Competition

Act. Dominant position means a position of strength enjoyed by an enterprise in the
relevant market in India or outside India, which enables it to operate independently
of competitive forces prevailing in the relevant market or affect its competitors or
consumers or the relevant market in its favour.

For example, predatory pricing is a practice that is seen to be an abuse of the

dominant position. Predatory price means the sale of goods or provision of services
at a price which is below the cost, as may be determined by regulations of
production of the goods or provision of services, with a view to reduce competition.

In simple words, when a dominant enterprise engages in AAEC acts, it is

considered an abuse of the dominant position. The difference between the definition
of anti- competitive agreements and abuse of dominant position is that in anti-
competitive agreements, there has to be two or more parties and it can be between
any enterprise or firm and doesn't require the involvement of a dominant firm. In
abuse of a dominant position, it can be done by a single party but the party has to be
in a dominant position in the relevant market.

Remedies:

Remedies against AAEC agreements and abuse of dominant position are provided
by the Competition Commission of India. Upon a review and enquiry into the
alleged practices, the Competition Commission may pass the following orders:

1. Direct the discontinuance of such practices.

2. Impose a penalty that is less than 10% of the turnover of the preceding three
financial years; in the case of a cartel, the penalty shall be 10% or three times the
turnover of every financial year and shall continue for the period of continuance of
such practices.

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3. Direct the modification of such an agreement or abuse to curtail its adverse effect
upon the competition in the market.

4. Pass any order that it may deem fit.

COMPETITION COMMISSION OF INDIA

The Competition Commission of India is established under the Competition Act,

2002. It is a statutory body which is empowered to govern and enforce the
Competition Act including penalties. The Commission serves as a forum for
complaints and disputes concerning competition. It aims at avoiding business
practices which harm competition and ensures freedom of trade, by regulating
mergers and amalgamations. It was established when the need for a healthy
competitive environment became necessary following liberalisation regime under
the Vajpayee Government.

Its objectives, duties, and powers are stated in the Competition Act, 2002. It is the
duty and main object of the Commission to maintain and sustain a healthy,
congenial, and fair competitive environment in the Indian markets and punish those
acts which adversely affect its duties.

Powers and Functions of the Competition Commission of India:

The Commission is composed of a chairman and a minimum of 2 board members

and a maximum of 6 board members. The statutory provision further details that the
chairperson and other members of the Commission shall possess special knowledge
and professional experience of not less than 15 years in international trade,
economics, business, commerce, law, finance, accountancy, etc. Under the
provisions of the Act, the chairperson and other members shall be selected in the
manner and under the rules prescribed by the Central Government.

The following are the important powers and functions of the Competition
Commission of India:

1. Elimination of Practices having Adverse Effects on Competition:

The Commission aims at removing those practices which harm competition

intending to promote and sustain competition and ensure freedom of trade for all the
participants.
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2. Enquiry into Certain Agreements and Dominant Positions of Enterprise:

It provides that the Commission may either suo moto (on its own) or on receipt of
any information of alleged contravention of Section 3 (prohibits anti-competitive
agreements) may enquire into the same.

3. Enquiry into Combinations:

Section 20 of the Act empowers the Commission to enquire into any information
relating to acquisition and find out whether such combination or acquisition may
have an appreciable adverse effect on competition (AAEC).

4. Protecting the Interest of the Consumers:

The Commission ensures the protection of the interest and welfare of the consumers
in the Indian market and satisfies that the consumers can purchase quality products
and services at competitive prices.

5. Regulating Foreign Companies:

The Commission is empowered to scrutinise any foreign company which gets into
the Indian market through a merger or acquisition and confirms that such a
company abides by the competition laws prevailing in India.

6. Acts as a Business Facilitator:

The Commission has the power to prevent any firm from acquiring monopoly
power to ensure that there is a peaceful co-existence between the small firms and
big business magnets in the market. Thus, it acts as a business facilitator in the
Indian market.

7. Reference of an Issue by a Statutory Authority to the Commission:

Section 21 of the Act states that in the course of a proceeding, if any issue is raised
that any decision of statutory authority will conflict with the provisions of the
Competition Act, 2002, the statutory authority shall refer the matter to the
Commission.

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8. Power to Issue Interim Order:

Section 33 of the Act empowers the Commission to issue interim orders in cases of
anti-competitive agreements and abuse of dominant position, thereby temporarily
stopping any party from carrying on such an activity.

9. Competition Advocacy:

Section 49 of the Act provides for competition advocacy and enumerates that the
Central or the State Government may while formulating any policy on Competition
may refer to the Commission for its opinion on the possible effect of such policy on
Competition. However, it is to be noted that the opinion given by the Commission
is not binding on the Central Government.

10. Aims at Accelerated Economic Growth:

The Commission aims at accelerated and inclusive economic growth of the Indian
economy by creating a constructive and conducive competitive environment in the
Indian market.

CONSUMER PROTECTION ACT, 1986

Introduction:

Goods are produced by manufacturers with the intent of placing them in the hands
of satisfied consumers in the market for profit. This production activity becomes
worthless if goods are not purchased by the consumers. Therefore, every
manufacturer must aim to satisfy the needs of the consumers and protect their
interests to ensure the survival of his business enterprise in the competitive business
world. Though in principle, the consumer is regarded as the king of the market by
the manufacturers, in practice, he is the most neglected and side-lined and is being
exploited in several ways in the market. This calls for the protection of the interest
and rights of the consumers in the market. Consumer protection refers to
protecting consumers against their exploitation by corrupt and unscrupulous
malpractices by producers and traders and providing proper remedies in case
their rights as a consumer have been violated.

In India, the protection of consumer rights used to be governed by the provisions

Consumer Protection Act 1986. This Act was replaced by the Consumers
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Protection, Act, 2019 in order to incorporate the challenges faced by modern and
technology-driven consumers due to the increased marketing of goods and services
online which has significantly increased in recent years. The new Act has come into
force on 20-7- 2020 has also changed the ambit of protecting the rights of
consumers in the country. Thus, this new Act has widened the scope of consumer
rights to cover the fields of e-commerce, direct selling, teleshopping, and other
multi-levels of marketing in the era of globalization and digitalisation.

Objects of the Consumer Protection Act:

The most important objective of the Consumer Protection Act, 2019 is to protect the
interests of consumers and to establish a vibrant mechanism for the early settlement
of their disputes. The Act aims-

1. To protect the consumers against the marketing of products which are dangerous
to their life and property.

2. To disseminate (pass on) information on the quality, quantity, standard, purity,

and price of goods to the consumers and to guard them against any unfair trade
practices.

3 To seek inexpensive redressal against unfair trade practices or unscrupulous

exploitation of consumers.

4. To establish Consumer Protection Councils for protecting the rights and interests
of the consumers.

5. To lay down penalties for offences committed by the traders under the Act.

6. To ensure that the consumers' welfare will receive proper consideration at

appropriate forums in case of any problems or disputes.

7. To provide effective disposal of consumer complaints through alternate dispute

resolution mechanisms.

8. To impart consumer education enabling consumers to become aware of their

rights and fight against their exploitation.

Meaning of a Consumer:

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As per the Consumer Protection Act, a consumer is a person who-

1. Buys any goods for a consideration; or

2. Hires or avails of any services for a consideration; or

3. Uses the goods with the approval of the person who has bought the goods for a
consideration; or

4. Is the beneficiary of services with the consent of the person who has hired the
services for a consideration. Consideration for the transaction may have been paid
or promised, or partly paid and partly promised. A person may also buy the goods
or may hire or avail of the services under any system of deferred payment. Buying
of goods and hiring of services must be there for a consideration. There should be a
completed transaction of sale and purchase.

A person may be either an individual, a firm whether registered or not, a Hindu

Undivided Family, a co-operative society, an association of persons, any
corporation, or any artificial judiciary person.

Persons who are Held to be Consumers:

A few instances of persons who are held as consumers. Bank customers, a depositor
of money, subscribers of telephones, consumers of electricity, a beneficiary of
services like a nominee of the insured, a patient receiving health care facility from a
hospital or a nursing home, a passenger travelling by train, boat contractor plying
boats, and persons allotted houses/plots by State Housing Boards.

Persons who are not Held to be Consumers:

The following persons are, however, not held to be consumers:

A patient receiving medical treatment in a government hospital, a charitable trust

running the diagnostic centre, a government servant, a client of an advocate, the
person presenting a document for registration, persons who purchase goods for
resale, or any commercial purpose, the purchaser of shares and debentures for sale,
a student hiring services of a tutor, the purchaser of a taxi, a tenant of a landlord,
and the insurance company after compensating the consignor for loss of goods in
transit.
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Meaning of a Trader:

As per the Consumer Protection Act, a trader is one-

1. Who sells goods, or

2 Who distributes any goods for sale;

3 Manufacturer of goods for sale;

4. Packer of goods who sells or distributes goods in package form.

Meaning of Defect:

It is for the complainant to prove that the goods mentioned in the complaint suffer
from one or more defects. Defect means any fault, imperfection, or shortcoming in
the quality, quantity, potency, purity, or standard which is required to be maintained
by the trader under any law for the time being in force or under any contract,
express or implied or as is claimed by the traders in any manner whatsoever,
concerning any goods. A defect could even be the failure on the part of the trader to
deliver the full quantity of goods ordered by the consumer. A defect may be a major
or superficial defect.

Meaning of Deficiency:

Deficiency means any fault, imperfection, shortcoming. or inadequacy in the

quality, nature, and manner of performance which is required to be maintained
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 concerning any service. It is the
responsibility of the complainant to establish that the services mentioned in the
complaint suffered from a deficiency in some respect.

Consumer dispute:

A consumer dispute arises when there is a denial (refusal) of a complaint by a

person (trader) against whom it is lodged by a complainant with the consumer
redressal forums.

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Meaning of Complainant:

Complainant as per the Act could be a person who is-

1. A consumer, or

2. Any voluntary consumer association registered under the Companies Act, 1956
or any other law for the time being in force, or

3. The Central Government or any State Goverment, who or which makes a

complaint; or

4. The Central Authority; or

5. One or more consumers, where there is more than one consumer having the same
interest in filing a collective complaint;

Meaning of Complaint:

A complaint is an allegation in writing made by a complainant who wants to obtain

relief, stating that:

1. An unfair trade practice or a restrictive trade practice has been adopted by any
trader; or

2. The goods purchased by him or agreed to be purchased by him suffer from one or
more defect; or

3. The service hired/availed of or to be hired/availed of by him suffer from a

deficiency in any respect; or

4. The price charged is more than the price fixed/displayed on the package
containing such goods; or

5. Goods sold are hazardous to life and safety when used; or

6. The services which are hazardous or likely to be hazardous to the life and safety
of the public when used; or

7. A claim for product liability action lies against the manufacturer/seller of the
product/ provider of service.

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 A complaint filed by the complainant is required to be decided by the Consumer
Disputes Redressal Commission as per the legal evidence produced including
submissions made by both the parties before the Commission and not by referring
the matter to Arbitrator.

Procedure to File a Complaint:

The following steps are involved in filing a complaint:

1. Serving a Notice to Trader:

Before filing a complaint, the complainant should send a notice to the trader/service
provider from whom the goods were purchased or the service was availed of
informing him about the defects in the goods or the deficiency in the service or
unfair practice. This notice is sent to the trader/service provider by the complainant
to see if he is ready to give the compensation or offer any other remedy. In case the
trader or service provider refuses to provide any remedy, the complainant can
proceed with filing a formal complaint.

2. Filing a Formal Complaint:

The next step is to file a formal complaint by the complainant under the Consumer
Protection Act. However, it is worth noting that the complainant is not required to
avail of the services of a lawyer to file a complaint. He can file the complaint on his
own. He is only required to jot down the following contents on a plain paper:

a. Name, description, and address of the complainant and the opposite party or
parties.

b. Facts relating to the complaint and the time and venue where it arose.

c. All the possible documents in support of the allegations contained in the

complaint.

d. The relief or the remedy claimed by the complainant.

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e. The signature of the complainant or his authorised agent.

3. Selection of an Appropriate Authority:

The third step is to select an appropriate authority under whom the complaint is to
be filed. The complainant shall choose the authority according to the pecuniary
jurisdiction of his complaint i.e., the total value of the goods or services and the
compensation claimed by him. It should be noted that the complainant can even file
an online complaint on www.consumerhelpline.gov.in. The complainant is also
required to pay the prescribed court fees according to the pecuniary value of his
case.

UNFAIR TRADE PRACTICES:

An unfair trade practice is the use of fraudulent, or unethical methods to gain a

business advantage or to cause any injury to a consumer. Such practices are
considered unlawful under Consumer Protection Act. Unfair trade practices are not
only related to goods but also to services rendered. It is the responsibility of the
complainant to prove that he has suffered loss by damage due to unfair trade
practice adopted by any trader to claim compensation for the same. It includes any
of the following practices, namely -

1. Making Statements:

Where a trader adopts the practice of making any statement whether orally or in
writing or by visible representation which-

a. Falsely represents that the goods are of a particular standard, quality, quantity,
grade, composition, style, or model;

b. Falsely represents the services of the particular standard, quality, or grade;

c. Falsely represents any rebuilt, second-hand, renovated, reconditioned, or old

goods, as new goods;

d. Makes a false or misleading representation concerning the need for or the

usefulness of any goods or services;

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e. A promise to replace, maintain or repair an article or any part thereof without
intending to perform it;

f. Materially mislead the public concerning the price at which a product or service is
going to be sold or provided:

2. Unfair Advertising:

False advertising represents the misinterpretation of a product, service, or price. It

may include marketing strategies such an advertising one product and selling some
other product in its place.

3. Offering to Give Gifts and Prizes:

The offering of gifts, prizes, and other goods with the intent of not providing them
as offered or creating an impression that something is being offered freely at the
time of marketing of goods or services, or conducting any contest or a game of skill
to promote the sales are considered as the unfair trade practices by the Act.

4. Hoarding of Goods:

Hoarding is an unfair trade practice in which a trader purchases large quantities of

goods and refuses to sell them to benefit from the increase in price in the future.

5. Manufacturing or Sale of Spurious Goods:

Spurious goods or services are those which are falsely claimed to be the best or
genuine, but actually, they are not. The sale of such goods or services is a deceptive
trade practice.

6. Refusing to give Bills or Cash Memos:

As soon as a sale transaction is over, it is obligatory on the part of the trader to issue
a bill or a cash memo with necessary details such as the name of the purchaser, the
quantity of goods, the description of the goods, price per unit, total price, the rate of
GST, amount of GST, date of sale, and so on. If he refuses to issue a bill/receipt/
invoice, it amounts to an unfair trade practice.

7. Declining to take Back Defective Goods:

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Refusing to take back the defective goods sold within the stipulated time mentioned
in the bill or within one month from the date of sale by the trader if no such
stipulated time is mentioned is an unfair trade practice.

8. Collection of Service Charges During Guarantee Period:

Collecting service charges during the free guarantee period or collecting repair and
service charges without repairing the goods sold is treated as an unfair trade
practice and a deficiency of service.

9. Disclosing Personal Information:

Sometimes, a consumer may share some confidential information with a trader.

Disclosing such personal information by the trader to a third person is a case of
unfair trade practice.

10. Giving Information to Tarnish (Damage) the Image of Competitors:

The distribution of false or misleading information which is capable of damaging

the business interests of the competing firm is also considered as an unfair trade
practice.

RIGHTS AND DUTIES OF A CONSUMER

Rights of a Consumer:

The Consumer Protection Act has recognised six rights of a consumer which are as
follows:

1. Right to Safety:

This is the right of the consumer to be guarded against the marketing of goods and
services which are dangerous to his life and property. Such a right is available in the
areas of electrical appliances, healthcare, automobiles, pharmaceuticals, etc. which
may prove to be harmful if they are not properly tested by the manufacturers. The
companies which deal in such products must test and validate their products before
selling them in the market.

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2. Right to Information:

At the time of making purchases, a consumer has the right to have sufficient
information as to the quality, quantity, purity, standard, and price of the goods and
services provided by the trader. This right is given to the consumer to protect him
from the various unfair trade practices conducted by dishonest traders to earn more
profits with malicious intentions.

3. Right to Choose:

This is the right to have access to a variety of goods and services at competitive
prices and to purchase any product. It is very common to find one product being
sold at different possible prices by different traders in the market due to keen
competition. However, it should always be left to the discretion of the consumer to
purchase any product of his choice at a price which is affordable to him. A
consumer should not be forced to purchase a particular product from a particular
trader or a product of a particular brand.

4. Right to be Heard:

This is the right given to the consumer to be heard and to be assured that his
interests will receive top priority and that all his complaints are given due attention
by appropriate authorities and forums. That is why most companies these days have
a separate wing known as the customer service department to look into the
complaints regarding the quality or quantity of the products supplied and address
such issues in time.

5. Right to Seek Redressal: This right is given to the consumer to seek redressal
i.e., claim adequate compensation or damages in case he has been misled by traders.
This right guarantees that all the issues of the consumer regarding his exploitation
are dealt with properly and that he is compensated accordingly. A proper redressal
mechanism has been set up by the Government of India such as the consumer courts
and forums at district, state, and national levels.

6. Right to Consumer Education:

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The consumer has the right to have access to every piece of information about
consumer-related laws relating to his protection and get properly educated to protect
his interest in the market. This is the reason why many awareness programmes on
consumerism have been organised by the Government of India such as Jago Grahak
Jago and the camps held by various lawyers in remote areas of the country to keep
them informed of their rights and duties as a consumer.

Duties of a Consumer:

A consumer is under an obligation to discharge the following duties when he makes

purchases from the trader:

1. To Pay Price: On purchasing goods or hiring any services, the consumer must
pay for the same immediately or after some time.

2. To Make Enquiry: While purchasing something, the consumer must check the
weight, balance, price, etc., and also read carefully the instructions printed on the
labels of the packages.

3. To Update Himself on Protection Schemes: The consumer has to update

himself about the various consumer protection schemes.

4. To be Doubly Cautious: He must be careful while purchasing and should not

fall into the trap of misleading information and advertisements.

5. Not to Buy Anything from Black Markets: It is the duty of the consumer not to
purchase anything from the black markets.

6. To Know his Rights and Duties: The consumer must be aware of his rights and
duties and also spread awareness of the same among others.

7. To Lodge Complaint: The consumer has to file a complaint if the goods

purchased by him are defective.

8. To Obtain Proper Bills: Every consumer should secure the bills of the goods
purchased or the services availed so that if in the future he finds the goods or
services to be defective, he can easily file a complaint against the same and can
prove it in the consumer forum.

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Remedies Available to the Consumers:

The Consumer Protection Act provides consumers with numerous remedies. The
following are such remedies:

1. Removal of Defects: If the consumer after conducting a proper test by using the
product finds the product to be defective, then the authority can pass an order for
the removal of such defects in the product.

2. Replacement of Goods: The consumer can get the defective goods replaced with
new ones, which are non-defective.

3. Refund of the Price: The consumer is entitled to get a refund of the price paid
by him for the goods or charges paid for the service if they are defective.

4. Award of Compensation: A consumer can demand compensation from the

trader or service provider due to his negligence if the consumer has suffered any
loss due to some physical injury.

5. Removal of Deficiency in Service: The authority can pass orders for removal of
the deficiency if there is any deficiency in the delivery of the service. For instance,
the court can pass orders to sanction the loan if the bank is making unnecessary
delay in sanctioning the loan.

6. Discontinuance of Unfair/Restrictive Trade Practices: If a complaint is filed

by the consumer against any unfair trade practice in the market, the authority can
order an immediate withdrawal of such a practice or even ban it.

7. Stopping of Sale of Hazardous Goods: The consumers have a relief to remove

or withdraw hazardous goods from the market. Legal action can also be taken
against the trader who has sold such goods.

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