Chapter 4

Consumer regulations
 THE CONSUMER PROTECTION ACT,
1986
• Though the Monopolies and Restrictive Trade Practices Act, 1969 arid
the Prevention of Food Adulteration Act, 1954 have provided relief to the
consumers yet it became necessary to protect the consumers from the
exploitation and to save them from adulterated and sub-standard goods
and services and to safe guard the interests of the consumers. In order to
provide for better protection of the interests of the consumer the Consumer
Protection Bill, 1986 was introduced in the Lok Sabha on 5th December,
1986.
• The advertisements of goods and services in television, newspapers
and magazines influence the demand for the same by the consumers
though there may be manufacturing defects or imperfections or short
comings in the quality, quantity and the purity of the goods or there
may be deficiency in the services rendered.
• For the welfare of the public, the glut of adulterated and sub-standard
articles in the market have to be checked. In spite of various
provisions providing protection to the consumer and providing for
stringent action against adulterated and sub-standard articles in the
different enactments like Code of Civil Procedure, 1908, the Indian
Contract Act, 1872, the Sale of Goods Act, 1930, the Indian Penal
Code, 1860, the Standards of Weights and Measures Act, 1976 and the
Motor Vehicles Act, 1988, very little could be achieved in the field of
Consumer Protection.
Importance of Consumer Protection:
• Consumer Point of View:
• To shape Consumers- Indian customers are not well- organized, and vendors exploit them
easily.
• Impart Market Information- Most of the consumer is clueless, and have no information
about the product they are buying and this might cause them losses.
• Physical Safety- Some products are adulterated and can hamper consumer health. So, they
need to be protected.
• Avert Monopoly- Irrespective of different restriction many organization follows monopoly
practice and consumers gets influenced and should be protected.
• Malpractices- Company pursues biased trade practices, and unlawful trade practices and
this protection plays a crucial role.
• Misleading advertisement- Many enterprises, intentionally trick consumers through
incorrect or deceptive advertisements. This act will shield consumers from getting exploited.
• Education Consumers about their Basic Rights- Most consumers ignore or do not know
about their rights. The Consumer Protect Act educates them and secures their rights and
interests.
Who is a consumer?
• According to Sec-2(1)(d) of the Act, a consumer is a person who purchases
any goods or services or hires or avails the services of some person for his
own personal use and not for manufacturing or resale of that good. For
instance, a person purchasing wheat flour for his own personal use is a
consumer but a person purchasing wheat flour for baking bread which he is
going to sell in his bakery shape is not a consumer.
Major definitions
• Complaint– According to Sec-2(1)(c) any allegation made by the consumer
regarding any restrictive or unfair trade practice which the traders have adopted
such as goods bought by a consumer are defective, services hired or availed by him
suffer some deficiency, trader has charged an excessive price of the goods
mentioned in the complaint, goods or services which are hazardous to the life and
property of the consumer has been offered for sale to the public by the trader or the
service provider.
• Consumer Dispute– according to Sec-2(1)(e) of the act it is a situation when a
person denies the allegations filed against him in a complaint.
• Person– according to Sec-2(1)(m) of the act the word person includes a registered
or unregistered firm, a Hindu undivided family, co-operative society and any other
association which is registered as a person under the Societies Registration Act of
1860.
• Service– according to Sec-2(1)(o) service means any description or any facility
which is provided to the potential users and is not rendered free of charge or under a
contract of personal service.
Duties of a consumer
• Every consumer right comes with the opposite duty. Right of one consumer is the duty of the
others. Accordingly, there are various duties such as:-
• On purchasing of goods or hiring of any services, it is the duty of the consumer to pay for
the same.
• While purchasing something it is his duty to check weights, balances, prices etc. and also to
give a careful reading to the labels.
• It is the duty of the consumer to update himself about the various consumer protection
schemes.
• Duty to be careful while purchasing and not to fall in the trap of misleading information and
advertisements.
• It is the duty of the consumer to not purchase anything from the black markets.
• It is the duty of the consumer to be aware of his rights and duties and also spreading the
awareness of the same among others.
• It is the consumers’ duty to file a complaint if the goods which he purchased are defective.
• Each and 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.
Rights and Duties of a Consumer
The Consumer Protection Act has recognized six rights of a consumer which are :
• Right to Safety: This right refers to as the right to be protected against the marketing
of goods and services which are hazardous to life and property of the consumers.
• Right to Information It refers to the right of a consumer to be informed of the quality,
quantity, potency, purity, standard and price of the goods and services being sold by
the shopkeeper.
• Right to Choose It is defined in the act as the right to be assured, wherever possible,
to have access to a variety of goods and services at competitive prices.
• Right to be heard It is referred to as the right to be heard and to be assured that
consumers’ interests will receive due consideration at appropriate forums.
• Right to Redressal If any consumer has been exploited by the seller or faced any
unfair trade practices he can seek redressal i.e. compensation or damages under this
right.
• Right to Consumer Education It is the right of each and every person who is a citizen
of India to have knowledge about all the laws and policies relating to the consumer.
Consumer Protection Act, 2019

The new Consumer Protection Act was passed by Parliament in 2019. It came into force in July 2020 and
replaced the Consumer Protection Act, 1986.

Need for the new act:

• The Digital Age has ushered in a new era of commerce and digital branding, as well as a new set of
customer expectations. Digitization has provided easy access, a large variety of choices, convenient
payment mechanisms, improved services and shopping as per convenience. However, there are also
associated challenges related to consumer protection.
• To help address the new set of challenges faced by consumers in the digital age, the Indian Parliament
passed the landmark Consumer Protection Bill, 2019 which aims to provide timely and effective
administration and settlement of consumer disputes.
Details:
• Consumer Protection Act, 2019 is a law to protect the interests of the consumers. This Act provides
safety to consumers regarding defective products, dissatisfactory services, and unfair trade
practices.
• The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by
establishing authorities for timely and effective administration and settlement of consumers’
Rights of the consumers:
• Consumers have the right to information on various aspects of goods and
services. This could be information about the quantity, quality, purity,
potency, price, and standard of goods or services.
• To be protected from hazardous goods and services. Right to protection
against goods and services that can be dangerous to life and property.
• To be protected from unfair or restrictive trade practices.
• Consumers have the right to access a variety of goods and services at
competitive prices.
• Consumers should have the right to redressal.
Salient Provisions of the Consumer Protection Act
New definition of consumer:
• The new Act has widened the definition of ‘consumer’.
Definition of consumer:
• As per the Act, a person is called a consumer who avails the services
and buys any good for self-use. Worth to mention that if a person buys
any good or avails any service for resale or commercial purposes,
he/she is not considered a consumer. This definition covers all types of
transactions i.e. offline and online through teleshopping, direct selling
or multi-level marketing.
Central Consumer Protection Authority:

• The Act proposes the establishment of the Central Consumer Protection Authority
(CCPA) as a regulatory authority.
• The CCPA will protect, promote and enforce the rights of consumers and regulate
cases related to unfair trade practices, misleading advertisements, and violation of
consumer rights.
• CCPA would be given wide-ranging powers.
• The CCPA will have the right to take suo-moto actions, recall products, order
reimbursement of the price of goods/services, cancel licenses, impose
penalties and file class-action suits.
• The CCPA will have an investigation wing to conduct independent inquiry or
investigation into consumer law violations.
Consumer Disputes Redressal Commission:

• The Act has the provision of the establishment of Consumer Disputes

Redressal Commissions (CDRCs) at the national, state and district levels to
entertain consumer complaints.
• As per the notified rules, the State Commissions will furnish information to
the Central Government on a quarterly basis on vacancies, disposal, the
pendency of cases and other matters.
• The CDRCs will entertain complaints related to:
• Overcharging or deceptive charging
• Unfair or restrictive trade practices
• Sale of hazardous goods and services which may be hazardous to life.
• Sale of defective goods or services
• As per the Consumer Disputes Redressal Commission Rules, there will be no
fee for filing cases up to Rs. 5 lakh.
E-Filing of Complaints:

• The new Act provides flexibility to the consumer to file complaints

with the jurisdictional consumer forum located at the place of
residence or work of the consumer. This is unlike the earlier condition
where the consumer had to file a complaint at the place of purchase or
where the seller has its registered office address.
• The new Act also contains enabling provisions for consumers to file
complaints electronically and for hearing and/or examining parties
through video-conferencing.
• Consumers will also not need to hire a lawyer to represent their cases.
Product Liability & Penal Consequences:
• The Act has introduced the concept of product liability.
• A manufacturer or product service provider or product seller will now be
responsible to compensate for injury or damage caused by defective products
or deficiency in services.
• This provision brings within its scope, the product manufacturer,
product service provider and product seller, for any claim for
compensation. The term ‘product seller’ would also include e-
commerce platforms.
Penalties for Misleading Advertisement:
• The CCPA may impose a penalty on a manufacturer or an endorser, for
a false or misleading advertisement. The CCPA may also sentence
them to imprisonment.
Provision for Alternate Dispute Resolution:
• The new Act provides for mediation as an Alternate Dispute Resolution
mechanism. For mediation, there will be a strict timeline fixed in the rules.
• As per the recently notified rules, a complaint will be referred by a
Consumer Commission for mediation, wherever scope for early settlement
exists and parties agree for it. The mediation will be held in the Mediation
Cells to be established under the aegis of the Consumer Commissions.
There will be no appeal against settlement through mediation.
Unfair Trade Practices:
• The new Act has armed the authorities to take action against unfair trade
practices too.
• The Act introduces a broad definition of Unfair Trade Practices, which
also includes the sharing of personal information given by the consumer in
confidence unless such disclosure is made in accordance with the
provisions of any other law.
The Central Consumer Protection Council:
• The Consumer Protection Act empowers the Central Government to
establish a Central Consumer Protection Council. It will act as an
advisory body on consumer issues.
• As per the notified Central Consumer Protection Council Rules, the Central
Consumer Protection Council would be headed by the Union Minister of
Consumer Affairs, Food and Public Distribution with the Minister of State as
Vice Chairperson and 34 other members from different fields.
• The Council, which has a three-year tenure, will have a Minister-in-charge of
consumer affairs from two States from each region – North, South, East, West,
and NER. There is also a provision for having working groups from amongst
the members for specific tasks.
Applicability:
• This Act is applicable to all the products and services, until or unless
any product or service is especially debarred out of the scope of this
Act by the Central Government.
Significance of the Act:
Empowering consumers:
• The new Act will empower consumers and help them in protecting their rights
through its various rules and provisions. The new Act will help in safeguarding
consumer interests and rights.
• Consumer-driven businesses such as retail, e-commerce would need to have robust policies
dealing with consumer redressal in place.
• The new Act will also push the consumer-driven businesses to take extra precautions against
unfair trade practices and unethical business practices.
Inclusion of the e-commerce sector:
• The earlier Act did not specifically include e-commerce transactions, and this lacuna
has been addressed by the new Act.
• E-commerce has been witnessing tremendous growth in recent times. The Indian e-
commerce market is expected to grow to US$ 200 billion by 2026.
• The Act also enables regulations to be notified on e-commerce and direct selling with
a focus on the protection of interest of consumers. This would involve rules for the
prevention of unfair trade practices by e-commerce platforms.
 • As per the notified rules, every e-commerce entity is required to provide information relating to return,
refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal
mechanism, payment methods, the security of payment methods, charge-back options, etc. including country
of origin which are necessary for enabling the consumer to make an informed decision at the pre-purchase
stage on its platform.
• The e-commerce platforms will have to acknowledge the receipt of any consumer complaint within forty-
eight hours and redress the complaint within one month from the date of receipt under this Act. This will
bring e-commerce companies under the ambit of a structured consumer redressal mechanism.
• E-commerce entities that do not comply will face penal action.
• Time-bound redressal:
• A large number of pending consumer complaints in consumer courts have been common across the country. The
new Act by simplifying the resolution process can help solve the consumer grievances speedily.
• A main feature of the Act is that under this, the cases are decided in a limited time period.
• Responsible endorsement:
• The new Act fixes liability on endorsers considering that there have been numerous instances in the recent past
where consumers have fallen prey to unfair trade practices under the influence of celebrities acting as brand
ambassadors.
• This will make all stakeholders – brands, agencies, celebrities, influencers and e-commerce players – a lot more
responsible. The new Act would force the endorser to take the onus and exercise due diligence to verify the
veracity of the claims made in the advertisement to refute liability claims.
Upholding consumer interests:
• For the first time, there will be an exclusive law dealing with Product
Liability.
• Product liability provision will deter manufacturers and service
providers from delivering defective products or deficient services.
• The new legislation empowers the National Consumers Dispute
Redressal Committee as well as the State Commission to declare null
and void any terms of a contract while purchasing a product. This will
go a long way in protecting consumers, who are often subject to
contract conditions that favor a seller or manufacturer.
Alternate dispute redressal mechanism:
• The provision of Mediation will make the process of dispute adjudication
simpler and quicker.
• This will provide a better mechanism to dispose of consumer complaints in a
speedy manner and will help in the disposal of a large number of pending cases
in consumer courts across the nation.
Simplified process for grievance redressal:
• The new Act would ease the overall process of consumer grievance redressal
and dispute resolution process. This will help reduce inconvenience and
harassment for the consumers.
• The enhanced pecuniary jurisdiction and provisions providing statutory
recognition to mediation processes, enabling filing of complaints from any
jurisdiction and for hearing parties through video-conferencing will increase
accessibility to judicial forums and afford crucial protection in times when
international e-commerce giants are expanding their base.
The phrase unfair trade practices can be defined
as any business practice or act that is deceptive,
fraudulent, or causes injury to a consumer. These
practices can include acts that are deemed
unlawful, such as those that violate a consumer
protection law. Some examples of unfair trade
methods are: the false representation of a good or
service; false free gift or prize offers; non-
compliance with manufacturing standards; false
advertising; or deceptive pricing.

A broader description of the term will include

unfair sales strategies, such as “bait and
switch,” a practice of advertising one item at a
low price with the intent of actually selling
other items. Unfair ads can be categorized as
those with incorrect pricing, fake
endorsements, false statements, or exaggerated
performance descriptions. Deceptive
guarantees are also considered a form of unfair
advertising.
The following practices fall under unfair trade practice:
1. An oral or written statement or visible representation that:
• – Falsely represents a good or service to be of a particular standard, quality, grade and so on.
• – Falsely represents any re-built, second-hand, reconditioned, renovated or old goods as new.
• – Represents that a good or service has sponsorship, approval, uses, benefits and so on which they
do not have. The same could apply to the seller or service provider.
• – Makes a misleading or false representation regarding the need and usefulness of any good or
service.
• – Provides to the public any warranty or guarantee of the performance of the length of the life of
the product. A service can be continued till deemed satisfactory.
• – Gives a misleading image of the good, service or trade like the price of the product.
• For the above clauses, any statement made via expression by sellers on the wrapper or container of
the item can qualify for unfair trade practice. The information of the product is also placed inside
the item, attached to the product, or accompanying it.
2. An advertisement published in any newspaper or other means of
communication to the general public may also result in unfair trade practice if the
price communicated is misleading or a bargain price. This means that an unfair
trade practice would be when a rational individual on reading, hearing or seeing
the advertisement would think to be a bargain price as compared to the product’s
ordinary sale price.
3. Wrongful or deceitful permissions or expressions like:
• – Offering gifts, prizes and so on without any intention of actually fulfilling the
expression.
• – Putting across a product as free of charge when it is actually not as the cost is
being covered partly or wholly in the transaction amount.
• – Conducting games of chance or skill like the lottery in order to promote a
particular product directly or indirectly.
• – Not granting participants of a scheme their prize by closing the information
about the final results of the scheme.
4. Allowing the sale of products, having the knowledge or reason to
believe that the product is not up to the standards of a competent
authority. This could be in terms of design, contents, packaging, etc.
5. Permitting the hoarding or destruction of products with the intention
of raising the prices of the goods.
• Illustrations of Unfair Trade Practices:
• A dress has been used for 2 months and is now being sold by a seller
as a new dress.
• The battery of a mobile phone is guaranteed to work well for one year
but wears away in a month.
• A geyser that is not ISI approved has an ISI mark.
• A table of Rs. 500 is sold online with Rs. 600 delivery charge, but the
good is claimed by the seller to be free of cost.
What is Restrictive Trade Practice?

• A restrictive trade practice is defined under Section 2(1)(nnn) of the Consumer

Protection Act, 1986. The section covers all the price related deceit that the
traders may indulge in to maximize their profits.
• Restrictive trade practices are targeted at the consumers who are burdened with
restriction and unjustified costs through the practices of the trader. The trader
manipulates the price or the conditions of delivery of the product which results
in restrictive trade practice. This affects the supply of goods and services in the
market and includes:
• – A likely or definite rise in the price of a commodity due to the delay of the
trader to provide the good or service.
• – A compulsion to purchase, hire or avail any good or service in order to obtain
any other good or service.
• Illustrations of Restrictive Trade Practices:
• A trader accumulates his stock of food grains in order to increase the
price of the grains in the market so that he can sell it at a higher price.
• In order to buy a television from trader X, one needs to buy a table
first.
Difference Between Unfair Trade Practice and Restrictive Trade
Practice:

• An unfair trade practice is the deceitful and misleading representation of goods and
services which portrays a false image of the product. Information regarding utility,
quality and standard, style etc of goods and services may be twisted under this
practice.
• Restrictive Trade Practice, however, is when traders try to change the flow of money
in the market in order to maximize their profits and to gain an upper hand in the
market competition. Here, independent sellers hike their collective profits by
limiting supply by controlling selling prices or the prices of purchased inputs. This is
the primary difference in unfair trade practice and restrictive trade practice.
• An unfair trade practice is defined under Section 2(1)(r) of the Consumer Protection
Act, 1986, whereas, Restrictive trade practice is defined under Section 2(1)(nnn).
• This is the fundamental difference between the two, unfair trade practices being a
broader concept.
Redressal of Consumer Dispute
• The National Consumer Disputes Redressal Commission
(NCDRC), India is a quasi-judicial commission in India which was
set up in 1988 under the Consumer Protection Act of 1986. Its head
office is in New Delhi.

• The Act provides for a three tier Consumer Disputes Redressal

Agencies. These are: District Consumer Disputes Redressal
Commission in the District, State Consumer Disputes Redressal
Commission at the state level and the National Consumer Disputes
Redressal Commission at the national level.
 Redressal: Three Tier System Under Consumer Act
• District Forum: These fora are set by the district of the state concerned in each
district wherein it consists of President and two members of which one should be
a woman and is appointed by the State Government. In this, the complaining
party should not make a complaint more than 20 Lacs and once the complaint
is filed the goods are sent for testing and if they found defective the accused party
should compensate and if the party is dissatisfied can make an appeal
with state commission within 30 days.
• State Commission: This is set up by each state It consists of President and two
members. Complains should be at least 20 lacs and exceed not more than 1
crore. The goods are sent for testing and if found defective are asked for
replacement or compensation. If not satisfied can make an appeal within 30 days
in front of the National Commission.
• National Commission: Consist of President and 4 members. The complaint must
exceed an amount of 1 crore. The goods are sent for testing and if found
defective are asked for replacement or compensation.
• At present, there are 629 District Commissions and 35 State
Commissions with the National Consumer Disputes Redressal
Commission (NCDRC) at the apex.

• 17,805 cases have been filed in the Commission since its inception
and presently 8,016 cases are pending for disposal.
Power and procedure applicable to the National Commission

(1) The provisions of sections 12, 13 and 14 and the rules made
thereunder for the disposal of complaints by the District Forum shall,
with such modifications as may be considered necessary by the
Commission, be applicable to the disposal of disputes by the National
Commission.
(2) Without prejudice to the provisions contained in sub-section (1), the
National Commission shall have the power to review any order made by
it, when there is an error apparent on the face of record.
Cyber laws
• In Simple way we can say that cyber crime is unlawful acts wherein the computer is either a tool
or a target or both. Cyber crimes can involve criminal activities that are traditional in nature, such
as theft, fraud, forgery, defamation and mischief, all of which are subject to the Indian Penal
Code. The abuse of computers has also given birth to a gamut of new age crimes that are
addressed by the Information Technology Act, 2000.
• We can categorize Cyber crimes in two ways
• The Computer as a Target :-using a computer to attack other computers.
e.g. Hacking,Virus/Worm attacks,DOS attack etc.
• computer as a weapon :-using a computer to commit real world crimes.
e.g. Cyber Terrorism, IPR violations, Credit card frauds, EFT frauds, Pornography etc.

• Cyber law (also referred to as cyberlaw) is a term used to describe the legal issues related to use
of communications technology, particularly "cyberspace", i.e. the Internet. It is less a distinct
field of law in the way that property or contract are as it is an intersection of many legal fields,
including intellectual property, privacy, freedom of expression, and jurisdiction. In essence,
cyber law is an attempt to integrate the challenges presented by human activity on the Internet
with legacy system of laws applicable to the physical world.
Importance of Cyber Law in India
• Cyber laws in India or cybercrime law in India are important because of the
prime reason that cybercrime act in India encompasses and covers all the
aspects which occur on or with the internet - transactions, and activities
which concern the internet and cyberspace.
• "The Cyber Laws in India has paved the way for electronic commerce and
electronic governance in the country by ensuring maximum connectivity
and minimum cybersecurity risks. Also, enhancing the scope and
expanding the use of digital mediums,"
Types of Cyber Crimes
• Different types of cybercrimes have different punishments in India.
• Identity theft - When personal information of a person is stolen with the purpose of using
their financial resources or to take a loan or credit card in their name then such a crime is
known as Identity theft.
• Cyber terrorism - When a threat of extortion or any kind of harm is being subjected towards
a person, organization, group or state, it is known as the crime of Cyber Terrorism. Generally,
it includes the well-planned attack strategies on the Government and corporate computer
system.
• Cyberbullying - When a teenager or adolescent harasses, defames, or intimidates someone
with the use of the internet, phone, chat rooms, instant messaging or any other social
network then the person is said to be committing the crime of Cyberbullying. When the
same crime is done by adults it is known as Cyberstalking.
• Hacking - The most common cybercrime is Hacking. In this crime, the person gets access to
other people's computers and passwords to use it for their own wrongful gain.
• Defamation - While every individual has his or her right to speech on internet platforms as
well, but if their statements cross a line and harm the reputation of any individual or
organization, then they can be charged with the Defamation Law.
• Copyright - With the massive surge in internet users, when the data/
information is distributed on all platforms, copyrighting your work aids you
to restrict the use of your work. Any use of your copyrighted without your
permission is a punishable offence.
• Trade Secrets - Internet organization spends a lot of their time and money in
developing softwares, applications, and tools and rely on Cyber Laws to
protect their data and trade secrets against theft; doing which is a punishable
offence.
• Freedom of Speech - When it comes to the internet, there is a very thin line
between freedom of speech and being a cyber-offender. As freedom of
speech enables individuals to speak their mind, cyber law refrains obscenity
and crassness over the web.
• Harassment and Stalking - Harassment and stalking are prohibited over
internet platforms as well. Cyber laws protect the victims and prosecute the
offender against this offence.
Information Technology Act 2000
• The Information Technology Act, 2000 was notified on Oct 17, 2000.
• It was the law that deals with law-breaking and electronic commerce in India and
during this article, we are going to verify the objectives and options of the
knowledge Technology act 2000.
• In 1996, the international organization Commission on International Trade Law
(UNCITRAL) adopted the model law on electronic commerce (e-commerce) to
bring uniformity within the law in several countries.
• Further, the overall Assembly of the international organization counselled that each
one country should think about this model law before creating changes to its laws.
• India became the 12th country to alter cyber law once it passed the knowledge
Technology Act, 2000.
• While the primary draft was created by the Ministry of Commerce, Government of
India because of the E-Commerce Act, 1998, it was redrafted because of the
‘Information Technology Bill, 1999’, and passed in could 2000.
Objectives of the Act
• The Information Technology Act, 2000 provides legal recognition to the group action done via
electronic exchange of information and alternative electronic suggests that of communication or
electronic commerce transactions. This also involves the utilization of alternatives to a paper-based
technique of communication and knowledge storage to facilitate the electronic filing of documents
with government agencies. Further, this act amended the Indian legal code 1860, the Indian proof
Act 1872, the Bankers’ Books proof Act 1891, and also the bank of India Act 1934. The objectives
of the Act are as follows:
• Grant legal recognition to any or all transactions are done via electronic exchange of information or
alternative electronic suggests that of communication or e-commerce, intact of the sooner paper-
based technique of communication.
• Offer legal recognition to digital signatures for the authentication of any data or matters requiring
legal authentication
• Facilitate the electronic filing of documents with Government agencies and conjointly departments.
• Facilitate the electronic storage of information.
• Offer legal sanction and conjointly facilitate the electronic transfer of funds between banks and
money establishments.
• Grant legal recognition to bankers underneath the proof Act, 1891, and also the bank of India Act,
1934, for keeping the books of accounts in electronic kind.
Features of the Information Technology Act, 2000

Here we will check out the features of the Information Technology Act. They are as follows:
• All electronic contracts created through secure electronic channels were legally valid.
• Legal recognition for digital signatures.
• Security measures for electronic records and conjointly digital signatures are in place. A procedure for the
appointment of adjudicating officers for holding inquiries underneath the Act is finalized.
• Provision for establishing a Cyber restrictive Appellant judicature underneath the Act. Further, this
judicature can handle all appeals created against the order of the Controller or Adjudicating Officer.
• It charms against the order of the Cyber Appellant judicature is feasible solely within the court.
• Digital Signatures uses an uneven cryptosystem and conjointly a hash operate.
• Provision for the appointment of the Controller of Certifying Authorities (CCA) to license and regulate
the operating of Certifying Authorities. The Controller acts as a repository of all digital signatures.
• The Act applies to offences or contraventions committed outside India.
• Senior law enforcement officials and alternative officers will enter any public place and search and arrest
while not warrant.
• Provisions for the constitution of a Cyber laws committee to advise the Central.
Applicability and Non-Applicability of the Act- Government
and Controller

• According to Section 1 (2), the Act extends to the whole country that
conjointly includes Jammu and the geographic region as the Act uses
Article 253 of the constitution. Further, it doesn't consider citizenship
and provides extra-territorial jurisdiction.
• Section 1 (2) at the side of Section 75 specifies that the Act applies to
any offence or dispute committed outside India yet. If the conduct of
personnel constituting the offence involves a laptop or a processed
system or network settled in India, then no matter his/her position, the
person is punishable underneath the Act.
• Lack of international cooperation is the sole limitation of this
provision.
Non-Applicability
According to Section 1 (4) of the knowledge Technology Act, 2000, the Act
doesn’t apply to the subsequent documents:
• Execution of instrument underneath Negotiable Instruments Act, 1881,
except cheques.
• Execution of influence of professional underneath the Powers of professional
Act, 1882.
• Creation of Trust underneath the Indian Trust Act, 1882.
• Execution of a can underneath the Indian Succession Act, 1925 as well as the
other legal document disposition by no matter name known as.
• Stepping into a contract for the sale or conveyance of immovable property or
any interest in such property.
• Any such category of documents or transactions as is also notified by the
Central Government within the Gazette.
Information Technology Act,2008
• The IT Amendment Act was passed by the Indian Parliament in
October 2008 and came into force a year later. The Act is
administered by the Indian Computer Emergency Response Team
(CERT-In). The original Act was developed to promote the IT industry,
regulate e-commerce, facilitate e-governance and prevent cybercrime.
Objective - Features of IT Act 2000

• With an increase in IT-enabled services, protection of private data and personal information of
individuals have assumed massive importance in today’s digital era. Taking a wider view,
confidential and important information which is critical to the national security also necessitates
protection. The IT Act provides the infrastructure which is needed to create a protective system
and restrict access to that confidential information.
• The Model Law on Electronic Signatures was adopted by The United Nations Commission on
International Trade Law (UNCITRAL) in 2001. The recommendations put forward by the
general assembly urged all states to incorporate the said Model Law on Electronic Signatures
into their own local laws. IT Law incorporates the said provisions on digital signatures and
harmonizes with the UNICITRAL Model Law.
• Along with the advent of information technology, crimes have also made their way into the
digital realm. Cybercrimes and e-commerce frauds like hacking, voyeurism, identity theft, etc are
becoming a growing concern all over the world. The IT Act defines these crimes and prescribes
appropriate punishment to prevent such crimes.
• The Act also includes provisions for service providers to set up, maintain and upgrade
computerized facilities while at the same time allowing them to collect and retain adequate
service charges on being given due authorization from the State and Central Government.
Salient features of IT act 2000

Features of the Information Technology Act, 2000

• All electronic contracts made through secure electronic channels are legally valid.
• Legal recognition for digital signatures.
• Security measures for electronic records and also digital signatures are in place
• A procedure for the appointment of adjudicating officers for holding inquiries under the
Act is finalized
• Provision for establishing a Cyber Regulatory Appellant Tribunal under the Act. Further,
this tribunal will handle all appeals made against the order of the Controller or
Adjudicating Officer.
• An appeal against the order of the Cyber Appellant Tribunal is possible only in the High
Court
• Digital Signatures will use an asymmetric cryptosystem and also a
hash function
• Provision for the appointment of the Controller of Certifying
Authorities (CCA) to license and regulate the working of Certifying
Authorities. The Controller to act as a repository of all digital
signatures.
• The Act applies to offences or contraventions committed outside India
• Senior police officers and other officers can enter any public place and
search and arrest without warrant
• Provisions for the constitution of a Cyber Regulations Advisory
Committee to advise the Central Government and Controller
Applicability and Non-Applicability of the Act

Applicability
• According to Section 1 (2), the Act extends to the entire country, which also
includes Jammu and Kashmir. In order to include Jammu and Kashmir, the
Act uses Article 253 of the constitution. Further, it does not take citizenship
into account and provides extra-territorial jurisdiction.
• Section 1 (2) along with Section 75, specifies that the Act is applicable to
any offence or contravention committed outside India as well. If the
conduct of person constituting the offence involves a computer or a
computerized system or network located in India, then irrespective of
his/her nationality, the person is punishable under the Act.
• Lack of international cooperation is the only limitation of this provision.
Non-Applicability
• According to Section 1 (4) of the Information Technology Act, 2000, the
Act is not applicable to the following documents:
• Execution of Negotiable Instrument under Negotiable Instruments Act,
1881, except cheques.
• Execution of a Power of Attorney under the Powers of Attorney Act, 1882.
• Creation of Trust under the Indian Trust Act, 1882.
• Execution of a Will under the Indian Succession Act, 1925 including any
other testamentary disposition
by whatever name called.
• Entering into a contract for the sale of conveyance of immovable property
or any interest in such property.
• Any such class of documents or transactions as may be notified by the
Central Government in the Gazette.
IT Act 2008
Features of IT Act 2008 Amendment
• The IT Act witnessed major changes through its 2008 Amendment -
(IT Act 2008 Amendment), which aimed at making itself
technologically neutral. It was initiated at the Parliament to address
certain drawbacks and deficiencies the original Act faced. The new
changes brought by the amendment hopes to help the Act
accommodate future development of IT and related security concerns
in this dynamic sector. It further includes several provisions relating to
data protection and privacy. Here are some of the major changes
• Incorporation of Electronic Signature: To go by their aim of making the act
‘technologically neutral, the term ‘digital signature’ has been replaced with
‘electronic signature’, as the latter represents an umbrella term which
encompasses many different types of digital marketing, while the former is a
specific type of electronic signature.
• Fight against Cyber-terrorism: Pursuant to the 26/11 Mumbai Attacks, the
amendment has incorporated the concept of cyber terrorism and prescribed hefty
punishments for it. The scope of cybercrime under Section 66 is widened with
many major additions defining various cybercrimes along with the controversial
Section 66A which penalized sending “offensive messages”. Section 66A was
later found to be in violation of one’s fundamental right to freedom of speech and
expression and thus was struck down.
• Child Pornography: Along with reducing the term of imprisonment and
increasing the fine for publishing obscene material in electronic form, an array of
sections have also been inserted under Section 67, one among which recognizes
publishing child pornography as a felonious act.
• Cyber Cafes: Cybercrimes like sending obscene e-mails to harass
individuals, identity theft, and maliciously acquiring net banking
passwords have many at times been taking place at Cyber Cafes. Due
to the lack of inclusion of ‘Cyber Cafes’ in the IT Act, they are
incapable of being regulated. The 2008 amendment explicitly defines
them and includes them under the term ‘intermediaries’, thus allowing
several aspects of the Act to be applicable to them.
• Government Interception and Monitoring: The new amendment
allows the government to listen in to your phone calls, read your
SMS’s and emails, and monitor the websites you visit without getting
a warrant from a magistrate. The same clause under the Telegraph Act
was restricted by the condition of public emergency or safety, but the
new amendment drops all such restrictions, vastly extending the
government’s power
Important Questions
• Consumer Protection Act, 1986 and 2019, Tribunal Hierarchy, Redressal.

• Information Technology: Cyber crimes, IT act control on these crimes.

• https://www.myadvo.in/blog/what-is-the-cyber-law-in-india/
• https://www.legalserviceindia.com/legal/article-1019-importance-of-cyber-
law-in-india.html