Consumer Protection Law - Origin & Development

Law of Consumer Protection
-
LA1205
Syllabus
• Background and history of consumer protection, Objects, Reasons and purpose,
Important definitions – consumer, consumer dispute, defect, deficiency, goods,
manufacturer, restrictive trade practice, service, unfair trade practice, Consumer
Protection Council, Consumer Disputes Redressal Agencies – District forum, State
commission, National commission – Composition, Power, Procedure and appeal,
Contemporary issues in Consumer Affairs, Leading Cases.
References:
1. Gupta, Sen, Consumer Protection Act, 3rd edition, Kamal Law House, 2014.
2. Saharay, H.K., Textbook on Consumer Protection Law, 1st edition, Universal Law,
2010.
3. Myneni, S.R. Consumer Protection Law, 9th edition, Asia Law House, 2012.
4. Chakraborty Anirban, Law of Consumer Protection, 5th edition, Lexis Nexis,
2014.
5. Bare Act: Consumer Protection Act, 2019
Origin and Development
Post-
Vedic Period British Period Independenc
e Era
SOURCES OF HINDU LAW
Vedic Period
• This was the formative stage of Indian Civilization.
• This is the sources of Hindu Law.
• The Vedas and its traditions are considered to develop
law relating to consumer protection.
• They were considered as the source of knowledge.
CONT.
• Later Smriti (Dharmashastra)
It laid down the duties and conduct of consumer protection . It also created the legal mechanism for
regulation of weight and measures.
• Manu Smriti: (Code of conduct to traders)
• Problem of adultery – one commodity mixed with another must not be sold (as pure), nor a bad one
(as good) not less (than the property weight and quantity) nor anything that is at hand or concealed.
• Punishment – man who behaves dishonestly shall be fined.
• Inspection- proper process to inspect all weights and measures and were noted.
• Arthashastra: Kautilya
• Director of trade – responsible to monitor market situations.
• Traders were made responsible for fair trade practices. Overall check was made by the King.
• Maintenance of official standards of weights and measures.
• Stamping of weights and measures in every four months.
• Punishment- severe punishments cutting-off one hand or fine for cheating etc .
CONT.
• Goods sold – the goods should be sold in appointed markets only.
• Declaration – particulars as to quantity, quality and prices which
were examined and registered in the books.
• License – license to sell required for every trader.
• Superintendent of Commerce – fixation of wholesale price.
Speculation and cornering to influence prices were prohibited.
• Punishments – Severe punishment for smuggling and adulteration
of goods.
• Remedies – Easy access to justice for all including consumers was
of great importance.
CONSUMER PROTECTION
DURING MUGHAL RULE
• The Muslim law was introduced in India with the begin of Islamic rule.
• Though Hindus were governed by Hindu law, yet few new features were introduced by Mughal Rulers.
• Strict Price control regulation of weight and measures, restriction on Unfair Trade Practices were
targeted to protect the consumer interest.
• This was the time when law was strictly applied with no scope of tolerance.
• The burden was made upon manufacturer and seller with regards “ Duty of Care”, which means seller
were made responsible for any goods which were defective in nature and which could not be determined
by the buyer.
• This System continue till the advent of British rule when the formation of a unified nationwide
modern legal system were defined.

CONT.
• However, the ancient rules were not ignored during British era and
the laws were formed in consonance with structural features.
For example: personal laws were adapted as per the customary
practices, Dharmas and customs were given equal importance.
• Therefore, both British and Indian legal system were
fabricated together towards formation Modern Indian law.

British Era
 The Indian Penal Code, 1860:
• Section 264-267: fraudulent use of false instruments for weighing
and their possession, manufacturing or sale; etc.
• Section 272-276: offences related to adulterated food, drinks,
noxious foo/ drink and sale of adulterated drugs.
 The Indian Contract Act, 1872:
• Section 27- Agreement is restrain of trade as void
CONT.
 The Sale of Goods Act of 1930:

• It was praised as Consumer Charter because protection was given to buyer
against the sellers who used to sell defective goods. There was the shift in the
principal Caveat Emptor(Lets the Buyer be aware ) to Caveat venditor (Let the
Seller be aware)which stressed upon skill and judgments of seller, merchantable
quality of goods while selling.
• Until 1986 was SoGA was relied for the protection of Consumer interest.
 Other enactments related to protection of Consumer right:
• The Agricultural Produce (Grading & Marking) Act, 1937
• The Drugs and Cosmetics Act, 1940
POST INDEPENDENT ERA
The Acts which were enacted in Independent India are given below-
• The Drug (Control) Act, 1950
• The Industries (Development and Regulation) Act, 1951
• The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954
• The Prevention of Food Adulteration Act, 1954
• The Essential Commodities Act, 1955
• The Trade and Merchandise Marks Act, 1958
• The Monopolies and Restrictive Trade Practices Act, 1969
• The Cigarettes (Regulation of Production, Distribution, and Supply) Act, 1975
• The Standards of Weights and Measures Act, 1976
• The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act,
1980
• The Standards of Weights and Measures (Enforcement) Act, 1985
• The Bureau of Indian Standards Act, 1986
CONT.
But all these Acts were not as successful as they were expected
to be and that is why to provide for better protection of the
interests of consumers and to save them from the evils of unfair
trade practices, Consumer Protection Act, 1986 was enacted by
Indian Government and this Act is an additional Act not the
derogation of any other existing law.
SOME MAJOR CONSUMER PROTECTION ACTS
 Prevention of Food and Adulteration Act, 1954

• The Act was enacted to eradicate the anti-social evil of food adulteration and
ensure purity.
• Prohibition was imposed upon adulteration and misbranding of food.
• The central government and state governments framed rules regarding Central
Food Laboratory, Standard of quality, public analysts and inspectors, ceiling,
fattening and dispatch of samples, coloring matter, packing and labeling of foods,
prohibition and regulating sales, conditions for sale and license, preservative,
poisonous metals, and solvent-extracted oils and edible flour etc.
 Monopoly and Restrictive Trade Practices Act, MRTP Act, 1969
The Act was enacted so that there would not be any concentration of economic
power as a result of economic system operations, and prohibition of Monopoly and
restrictive trade practices. MRTP commission established under an act to enquire
into monopolistic and restrictive Trade practices. The Commission has power to
grant injunction and provide compensation

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Consumer Protection Law - Origin & Development

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Law of Consumer Protection

targeted to protect the consumer interest.

modern legal system were defined.

the laws were formed in consonance with structural features.

For example: personal laws were adapted as per the customary

practices, Dharmas and customs were given equal importance.

• Therefore, both British and Indian legal system were

fabricated together towards formation Modern Indian law.

 The Sale of Goods Act of 1930:

 Prevention of Food and Adulteration Act, 1954

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