Consumer Protection — Fundamentals

Defect vs Deficiency

	Defect	Deficiency

|-|--------|-----------|

What	Fault, imperfection in goods	Shortcoming in service
Examples	Mobile with faulty battery, spoilt food	Bank wrong debit, builder delay, hospital negligence
Standard	Compared to merchantable quality / seller's representation	Compared to promised/standard service

Unfair Trade Practices (Section 2(47))

1.False representation — lying about quality, grade, standard, style, model

2.False facts — misleading claims about competitor's product

3.Free gift offers — bait advertisements

4.Hoarding — stockpiling to raise prices

5.Spurious goods — fake products passed off as genuine

6.Pyramid schemes — MLM fraud schemes

Warranties in Consumer Law

Express warranty: Written/verbal promise by seller about the product.

Implied warranty:

•Of merchantability — product is fit for its ordinary purpose

•Of fitness for purpose — if buyer specifies purpose, product must serve it

Disclaimer clauses: Cannot waive liability for personal injury caused by defective product.

Mediation under CPA 2019

New mandatory mediation step:

•Commission can refer parties to mediation if there are reasonable chances of settlement

•5 working days for parties to opt out

•Mediation Centre attached to each Commission

•If mediated settlement: recorded by mediator, placed before Commission, Commission passes order

•If no settlement: returned to Commission for adjudication

Important Definitions

Consumer dispute: A dispute where person alleges any of these defects/deficiencies.

Complainant: Consumer, any recognised consumer association, one or more consumers (class action), Central/State Government.

Opposite party: Trader / Manufacturer / Service provider against whom complaint is made.

Goods: Every kind of movable property (includes growing crops, stocks, shares, actionable claims are excluded).

Services: Services of any description which are made available to potential users — banking, financing, insurance, transport, processing, supply of electrical or gas, boarding/lodging, construction, entertainment, amusement — but does NOT include services rendered free of charge.

Common Exam Questions

Q: A doctor provides service free of charge. Can a patient file consumer complaint?

A: No — free services are excluded from "service" definition under CPA 2019.

Q: Can a person file complaint for a product bought 3 years ago?

A: No — limitation is 2 years from cause of action. But court can condone delay if sufficient cause shown.

Q: What is the distinction between District Forum (old) and District Commission (new)?

A: CPA 2019 renamed "District Forum" to "District Consumer Disputes Redressal Commission" and increased its pecuniary limit from ₹20 lakh to ₹1 crore.