The consumer protection act, 2019

Short title,
extent,
commencement
and
application.
THE CONSUMER PROTECTION ACT, 2019
NO. 35 OF  2019
[9th August, 2019.]
An Act to provide for protection of the interests of consumers and for the said
purpose, to establish authorities for timely and effective administration and
settlement of consumers' disputes and for matters connected therewith or
incidental thereto.
BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Consumer Protection Act, 2019.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification,
appoint and different dates may be appointed for different States and for different provisions
of this Act and any reference in any such provision to the commencement of this Act shall be
construed as a reference to the coming into force of that provision.
(4) Save as otherwise expressly provided by the Central Government, by notification,
this Act shall apply to all goods and services.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 9th August, 2019/Shravana 18, 1941  (Saka)
The following Act of Parliament received the assent of the President on the
9th August, 2019, and is hereby published for general information:—
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EXTRAORDINARY
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PART II — Section 1
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Separate paging is given to this Part in order that it may be filed as a separate compilation.
REGISTERED NO. DL—(N)04/0007/2003—19
2 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
2. In this Act, unless the context otherwise requires,—
(1) "advertisement" means any audio or visual publicity, representation,
endorsement or pronouncement made by means of light, sound, smoke, gas, print,
electronic media, internet or website and includes any notice, circular, label, wrapper,
invoice or such other documents;
(2) "appropriate laboratory" means a laboratory or an organisation—
(i) recognised by the Central Government; or
(ii) recognised by a State Government, subject to such guidelines as may
be issued by the Central Government in this behalf; or
(iii) established by or under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a State Government
for carrying out analysis or test of any goods with a view to determining whether
such goods suffer from any defect;
(3) "branch office" means—
(i) any office or place of work described as a branch by the establishment; or
(ii) any establishment carrying on either the same or substantially the
same activity carried on by the head office of the establishment;
(4) "Central Authority" means the Central Consumer Protection Authority
established under section 10;
(5) "complainant" means—
(i) a consumer; or
(ii) any voluntary consumer association registered under any law for the
time being in force; or
(iii) the Central Government or any State Government; or
(iv) the Central Authority; or
(v) one or more consumers, where there are numerous consumers having
the same interest; or
(vi) in case of death of a consumer, his legal heir or legal representative; or
(vii) in case of a consumer being a minor, his parent or legal guardian;
(6) "complaint" means any allegation in writing, made by a complainant for
obtaining any relief provided by or under this Act, that—
(i) an unfair contract or unfair trade practice or a restrictive trade practice
has been adopted by any trader or service provider;
(ii) the goods bought by him or agreed to be bought by him suffer from
one or more defects;
(iii) the services hired or availed of or agreed to be hired or availed of by
him suffer from any deficiency;
(iv) a trader or a service provider, as the case may be, has charged for the
goods or for the services mentioned in the complaint, a price in excess of the
price—
(a) fixed by or under any law for the time being in force; or
Definitions.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(b) displayed on the goods or any package containing such goods; or
(c) displayed on the price list exhibited by him by or under any law
for the time being in force; or
(d) agreed between the parties;
(v) the goods, which are hazardous to life and safety when used, are being
offered for sale to the public—
(a) in contravention of standards relating to safety of such goods
as required to be complied with, by or under any law for the time being in
force;
(b) where the trader knows that the goods so offered are unsafe to
the public;
(vi) the services which are hazardous or likely to be hazardous to life and
safety of the public when used, are being offered by a person who provides any
service and who knows it to be injurious to life and safety;
(vii) a claim for product liability action lies against the product
manufacturer, product seller or product service provider, as the case may be;
(7) "consumer" means any person who—
(i) buys any goods for a consideration which has been paid or promised
or partly paid and partly promised, or under any system of deferred payment
and includes any user of such goods other than the person who buys such
goods for consideration paid or promised or partly paid or partly promised, or
under any system of deferred payment, when such use is made with the approval
of such person, but does not include a person who obtains such goods for
resale or for any commercial purpose; or
(ii) hires or avails of any service for a consideration which has been paid
or promised or partly paid and partly promised, or under any system of deferred
payment and includes any beneficiary of such service other than the person
who hires or avails of the services for consideration paid or promised, or partly
paid and partly promised, or under any system of deferred payment, when such
services are availed of with the approval of the first mentioned person, but does
not include a person who avails of such service for any commercial purpose.
Explanation.—For the purposes of this clause,—
(a) the expression "commercial purpose" does not include use by a
person of goods bought and used by him exclusively for the purpose of
earning his livelihood, by means of self-employment;
(b) the expressions "buys any goods" and "hires or avails any
services" includes offline or online transactions through electronic means
or by teleshopping or direct selling or multi-level marketing;
(8) "consumer dispute" means a dispute where the person against whom a
complaint has been made, denies or disputes the allegations contained in the complaint;
(9) "consumer rights" includes,—
(i) the right to be protected against the marketing of goods, products or
services which are hazardous to life and property;
(ii) the right to be informed about the quality, quantity, potency, purity,
standard and price of goods, products or services, as the case may be, so as to
protect the consumer against unfair trade practices;
4 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
(iii) the right to be assured, wherever possible, access to a variety of
goods, products or services at competitive prices;
(iv) the right to be heard and to be assured that consumer's interests will
receive due consideration at appropriate fora;
(v) the right to seek redressal against unfair trade practice or restrictive
trade practices or unscrupulous exploitation of consumers; and
(vi) the right to consumer awareness;
(10) "defect" means any fault, imperfection or shortcoming in the quality,
quantity, potency, purity or standard which is required to be maintained by or under
any law for the time being in force or under any contract, express or implied or as is
claimed by the trader in any manner whatsoever in relation to any goods or product
and the expression "defective" shall be construed accordingly;
(11) "deficiency" means any fault, imperfection, shortcoming or inadequacy in
the quality, nature and manner of performance which is required to be maintained by or
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 in relation to any service and includes—
(i) any act of negligence or omission or commission by such person which
causes loss or injury to the consumer; and
(ii) deliberate withholding of relevant information by such person to the
consumer;
(12) "design", in relation to a product, means the intended or known physical
and material characteristics of such product and includes any intended or known
formulation or content of such product and the usual result of the intended
manufacturing or other process used to produce such product;
(13) "direct selling" means marketing, distribution and sale of goods or provision
of services through a network of sellers, other than through a permanent retail location;
(14) "Director-General" means the Director-General appointed under
sub-section (2) of section 15;
(15) "District Commission" means a District Consumer Disputes Redressal
Commission established under sub-section (1) of section 28;
(16) "e-commerce" means buying or selling of goods or services including
digital products over digital or electronic network;
(17) "electronic service provider" means a person who provides technologies
or processes to enable a product seller to engage in advertising or selling goods or
services to a consumer and includes any online market place or online auction sites;
(18) "endorsement", in relation to an advertisement, means—
(i) any message, verbal statement, demonstration; or
(ii) depiction of the name, signature, likeness or other identifiable personal
characteristics of an individual; or
(iii) depiction of the name or seal of any institution or organisation,
which makes the consumer to believe that it reflects the opinion, finding or experience of the
person making such endorsement;
(19) "establishment" includes an advertising agency, commission agent,
manufacturing, trading or any other commercial agency which carries on any business,
trade or profession or any work in connection with or incidental or ancillary to any
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5
commercial activity, trade or profession, or such other class or classes of persons
including public utility entities in the manner as may be prescribed;
(20) "express warranty" means any material statement, affirmation of fact, promise
or description relating to a product or service warranting that it conforms to such
material statement, affirmation, promise or description and includes any sample or
model of a product warranting that the whole of such product conforms to such
sample or model;
(21) "goods" means every kind of movable property and includes "food" as
defined in clause (j) of sub-section (1) of section 3 of the Food Safety and Standards
Act, 2006;
(22) "harm", in relation to a product liability, includes—
(i) damage to any property, other than the product itself;
(ii) personal injury, illness or death;
(iii) mental agony or emotional distress attendant to personal injury or
illness or damage to property; or
(iv) any loss of consortium or services or other loss resulting from a harm
referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii),
but shall not include any harm caused to a product itself or any damage to the property
on account of breach of warranty conditions or any commercial or economic loss,
including any direct, incidental or consequential loss relating thereto;
(23) "injury" means any harm whatever illegally caused to any person, in body,
mind or property;
(24) "manufacturer" means a person who—
(i) makes any goods or parts thereof; or
(ii) assembles any goods or parts thereof made by others; or
(iii) puts or causes to be put his own mark on any goods made by any
other person;
(25) "mediation" means the process by which a mediator mediates the consumer
disputes;
(26) "mediator" means a mediator referred to in section 75;
(27) "member" includes the President and a member of the National Commission
or a State Commission or a District Commission, as the case may be;
(28) "misleading advertisement" in relation to any product or service, means an
advertisement, which—
(i) falsely describes such product or service; or
(ii) gives a false guarantee to, or is likely to mislead the consumers as to
the nature, substance, quantity or quality of such product or service; or
(iii) conveys an express or implied representation which, if made by the
manufacturer or seller or service provider thereof, would constitute an unfair
trade practice; or
(iv) deliberately conceals important information;
(29) "National Commission" means the National Consumer Disputes Redressal
Commission established under sub-section (1) of section 53;
34 of 2006.
6 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
(30) "notification" means a notification published in the Official Gazette and the
term "notify" shall be construed accordingly;
(31) "person" includes—
(i) an individual;
(ii) a firm whether registered or not;
(iii) a Hindu undivided family;
(iv) a co-operative society;
(v) an association of persons whether registered under the Societies
Registration Act, 1860 or not;
(vi) any corporation, company or a body of individuals whether
incorporated or not;
(vii) any artificial juridical person, not falling within any of the preceding
sub-clauses;
(32) "prescribed" means prescribed by rules made by the Central Government,
or, as the case may be, the State Government;
(33) "product" means any article or goods or substance or raw material or any
extended cycle of such product, which may be in gaseous, liquid, or solid state
possessing intrinsic value which is capable of delivery either as wholly assembled or
as a component part and is produced for introduction to trade or commerce, but does
not include human tissues, blood, blood products and organs;
(34) "product liability" means the responsibility of a product manufacturer or
product seller, of any product or service, to compensate for any harm caused to a
consumer by such defective product manufactured or sold or by deficiency in services
relating thereto;
(35) "product liability action" means a complaint filed by a person before a
District Commission or State Commission or National Commission, as the case may be,
for claiming compensation for the harm caused to him;
(36) "product manufacturer" means a person who—
(i) makes any product or parts thereof; or
(ii) assembles parts thereof made by others; or
(iii) puts or causes to be put his own mark on any products made by any
other person; or
(iv) makes a product and sells, distributes, leases, installs, prepares,
packages, labels, markets, repairs, maintains such product or is otherwise involved
in placing such product for commercial purpose; or
(v) designs, produces, fabricates, constructs or re-manufactures any
product before its sale; or
(vi) being a product seller of a product, is also a manufacturer of such
product;
(37) "product seller", in relation to a product, means a person who, in the course
of business, imports, sells, distributes, leases, installs, prepares, packages, labels,
markets, repairs, maintains, or otherwise is involved in placing such product for
commercial purpose and includes—
(i) a manufacturer who is also a product seller; or
21 of 1860.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7
(ii) a service provider,
but does not include—
(a) a seller of immovable property, unless such person is engaged in the
sale of constructed house or in the construction of homes or flats;
(b) a provider of professional services in any transaction in which, the
sale or use of a product is only incidental thereto, but furnishing of opinion, skill
or services being the essence of such transaction;
(c) a person who—
(I) acts only in a financial capacity with respect to the sale of the
product;
(II) is not a manufacturer, wholesaler, distributor, retailer, direct seller
or an electronic service provider;
(III) leases a product, without having a reasonable opportunity to
inspect and discover defects in the product, under a lease arrangement in
which the selection, possession, maintenance, and operation of the
product are controlled by a person other than the lessor;
(38) "product service provider", in relation to a product, means a person who
provides any service in respect of such product;
(39) "regulations" means the regulations made by the National Commission, or
as the case may be, the Central Authority;
(40) "Regulator" means a body or any authority established under any other
law for the time being in force;
(41) "restrictive trade practice" means a trade practice which tends to bring
about manipulation of price or its conditions of delivery or to affect flow of supplies in
the market relating to goods or services in such a manner as to impose on the consumers
unjustified costs or restrictions and shall include—
(i) delay beyond the period agreed to by a trader in supply of such goods
or in providing the services which has led or is likely to lead to rise in the price;
(ii) any trade practice which requires a consumer to buy, hire or avail of
any goods or, as the case may be, services as condition precedent for buying,
hiring or availing of other goods or services;
(42) "service" means service of any description which is made available to
potential users and includes, but not limited to, the provision of facilities in connection
with banking, financing, insurance, transport, processing, supply of electrical or other
energy, telecom, boarding or lodging or both, housing construction, entertainment,
amusement or the purveying of news or other information, but does not include the
rendering of any service free of charge or under a contract of personal service;
(43) "spurious goods" means such goods which are falsely claimed to be
genuine;
(44) "State Commission" means a State Consumer Disputes Redressal
Commission established under sub-section (1) of section 42;
(45) "trader", in relation to any goods, means a person who sells or distributes
any goods for sale and includes the manufacturer thereof, and where such goods are
sold or distributed in package form, includes the packer thereof;
(46) "unfair contract" means a contract between a manufacturer or trader or
service provider on one hand, and a consumer on the other, having such terms which
8 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
cause significant change in the rights of such consumer, including the following,
namely:—
(i) requiring manifestly excessive security deposits to be given by a
consumer for the performance of contractual obligations; or
(ii) imposing any penalty on the consumer, for the breach of contract
thereof which is wholly disproportionate to the loss occurred due to such breach
to the other party to the contract; or
(iii) refusing to accept early repayment of debts on payment of applicable
penalty; or
(iv) entitling a party to the contract to terminate such contract unilaterally,
without reasonable cause; or
(v) permitting or has the effect of permitting one party to assign the contract
to the detriment of the other party who is a consumer, without his consent; or
(vi) imposing on the consumer any unreasonable charge, obligation or
condition which puts such consumer to disadvantage;
(47) "unfair trade practice" means a trade practice which, for the purpose of
promoting the sale, use or supply of any goods or for the provision of any service,
adopts any unfair method or unfair or deceptive practice including any of the following
practices, namely:—
(i) making any statement, whether orally or in writing or by visible
representation including by means of electronic record, which—
(a) falsely represents that the goods are of a particular standard,
quality, quantity, grade, composition, style or model;
(b) falsely represents that the services are of a particular standard,
quality or grade;
(c) falsely represents any re-built, second-hand, renovated,
reconditioned or old goods as new goods;
(d) represents that the goods or services have sponsorship, approval,
performance, characteristics, accessories, uses or benefits which such
goods or services do not have;
(e) represents that the seller or the supplier has a sponsorship or
approval or affiliation which such seller or supplier does not have;
(f) makes a false or misleading representation concerning the need
for, or the usefulness of, any goods or services;
(g) gives to the public any warranty or guarantee of the performance,
efficacy or length of life of a product or of any goods that is not based on
an adequate or proper test thereof:
Provided that where a defence is raised to the effect that such
warranty or guarantee is based on adequate or proper test, the burden of
proof of such defence shall lie on the person raising such defence;
(h) makes to the public a representation in a form that purports to
be—
(A) a warranty or guarantee of a product or of any goods or
services; or
(B) a promise to replace, maintain or repair an article or any
part thereof or to repeat or continue a service until it has achieved a
specified result,
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9
if such purported warranty or guarantee or promise is materially misleading or if there
is no reasonable prospect that such warranty, guarantee or promise will be carried out;
(i) materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided, and, for
this purpose, a representation as to price shall be deemed to refer to the price at which
the product or goods or services has or have been sold by sellers or provided by
suppliers generally in the relevant market unless it is clearly specified to be the price at
which the product has been sold or services have been provided by the person by
whom or on whose behalf the representation is made;
(j) gives false or misleading facts disparaging the goods, services or trade of
another person.
Explanation.— For the purposes of this sub-clause, a statement that is,—
(A) expressed on an article offered or displayed for sale, or on its wrapper or
container; or
(B) expressed on anything attached to, inserted in, or accompanying, an article
offered or displayed for sale, or on anything on which the article is mounted for
display or sale; or
(C) contained in or on anything that is sold, sent, delivered, transmitted or in
any other manner whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by, and only by, the person who had
caused the statement to be so expressed, made or contained;
(ii) permitting the publication of any advertisement, whether in any
newspaper or otherwise, including by way of electronic record, for the sale or
supply at a bargain price of goods or services that are not intended to be offered
for sale or supply at the bargain price, or for a period that is, and in quantities
that are, reasonable, having regard to the nature of the market in which the
business is carried on, the nature and size of business, and the nature of the
advertisement.
Explanation.—For the purpose of this sub-clause, "bargain price" means,—
(A) a price that is stated in any advertisement to be a bargain price,
by reference to an ordinary price or otherwise; or
(B) a price that a person who reads, hears or sees the advertisement,
would reasonably understand to be a bargain price having regard to the
prices at which the product advertised or like products are ordinarily sold;
(iii) permitting—
(a) the offering of gifts, prizes or other items with the intention of
not providing them as offered or creating impression that something is
being given or offered free of charge when it is fully or partly covered by
the amount charged, in the transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for
the purpose of promoting, directly or indirectly, the sale, use or supply of
any product or any business interest, except such contest, lottery, game
of chance or skill as may be prescribed;
(c) withholding from the participants of any scheme offering gifts,
prizes or other items free of charge on its closure, the information about
final results of the scheme.
10 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
Explanation.—For the purpose of this sub-clause, the participants of a scheme shall
be deemed to have been informed of the final results of the scheme where such results are
within a reasonable time published, prominently in the same newspaper in which the scheme
was originally advertised;
(iv) permitting the sale or supply of goods intended to be used, or are of
a kind likely to be used by consumers, knowing or having reason to believe that
the goods do not comply with the standards prescribed by the competent
authority relating to performance, composition, contents, design, constructions,
finishing or packaging as are necessary to prevent or reduce the risk of injury to
the person using the goods;
(v) permitting the hoarding or destruction of goods, or refusal to sell the
goods or to make them available for sale or to provide any service, if such
hoarding or destruction or refusal raises or tends to raise or is intended to raise,
the cost of those or other similar goods or services;
(vi) manufacturing of spurious goods or offering such goods for sale or
adopting deceptive practices in the provision of services;
(vii) not issuing bill or cash memo or receipt for the goods sold or services
rendered in such manner as may be prescribed;
(viii) refusing, after selling goods or rendering services, to take back or
withdraw defective goods or to withdraw or discontinue deficient services and
to refund the consideration thereof, if paid, within the period stipulated in the
bill or cash memo or receipt or in the absence of such stipulation, within a period
of thirty days;
(ix) disclosing to other person any personal information given in
confidence by the consumer unless such disclosure is made in accordance with
the provisions of any law for the time being in force.
CHAPTER II
C
ONSUMER PROTECTION COUNCILS
3. (1) The Central Government shall, by notification, establish with effect from such
date as it may specify in that notification, the Central Consumer Protection Council to be
known as the Central Council.
(2) The Central Council shall be an advisory council and consist of the following
members, namely:—
(a) the Minister-in-charge of the Department of Consumer Affairs in the Central
Government, who shall be the Chairperson; and
(b) such number of other official or non-official members representing such
interests as may be prescribed.
4. (1) The Central Council shall meet as and when necessary, but at least one meeting
of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the Chairperson may think
fit and shall observe such procedure in regard to the transaction of its business as may be
prescribed.
5. The objects of the Central Council shall be to render advice on promotion and
protection of the consumers' rights under this Act.
Central
Consumer
Protection
Council.
Procedure for
meetings of
Central
Council.
Objects of
Central
Council.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 11
6. (1) Every State Government shall, by notification, establish with effect from such
date as it may specify in such notification, a State Consumer Protection Council for such
State to be known as the State Council.
(2) The State Council shall be an advisory council and consist of the following members,
namely:—
(a) the Minister-in-charge of Consumer Affairs in the State Government who
shall be the Chairperson;
(b) such number of other official or non-official members representing such
interests as may be prescribed;
(c) such number of other official or non-official members, not exceeding ten, as
may be nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two meetings
shall be held every year.
(4) The State Council shall meet at such time and place as the Chairperson may think
fit and shall observe such procedure in regard to the transaction of its business, as may be
prescribed.
7. The objects of every State Council shall be to render advice on promotion and
protection of consumer rights under this Act within the State.
8. (1) The State Government shall, by notification, establish for every District with
effect from such date as it may specify in such notification, a District Consumer Protection
Council to be known as the District Council.
(2) The District Council shall be an advisory council and consist of the following
members, namely:—
(a) the Collector of the district (by whatever name called), who shall be the
Chairperson; and
(b) such number of other official and non-official members representing such
interests as may be prescribed.
(3) The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district as the
Chairperson may think fit and shall observe such procedure in regard to the transaction of
its business as may be prescribed.
9. The objects of every District Council shall be to render advice on promotion and
protection of consumer rights under this Act within the district.
CHAPTER III
C
ENTRAL CONSUMER PROTECTION AUTHORITY
10. (1) The Central Government shall, by notification, establish with effect from such
date as it may specify in that notification, a Central Consumer Protection Authority to be
known as the Central Authority to regulate matters relating to violation of rights of consumers,
unfair trade practices and false or misleading advertisements which are prejudicial to the
interests of public and consumers and to promote, protect and enforce the rights of consumers
as a class.
(2) The Central Authority shall consist of a Chief Commissioner and such number of
other Commissioners as may be prescribed, to be appointed by the Central Government to
exercise the powers and discharge the functions under this Act.
State
Consumer
Protection
Councils.
Objects of
State Council.
District
Consumer
Protection
Council.
Objects of
District
Council.
Establishment
of Central
Consumer
Protection
Authority.
12 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
(3) The headquarters of the Central Authority shall be at such place in the National
Capital Region of Delhi, and it shall have regional and other offices in any other place in
India as the Central Government may decide.
11. The Central Government may, by notification, make rules to provide for the
qualifications for appointment, method of recruitment, procedure for appointment, term of
office, salaries and allowances, resignation, removal and other terms and conditions of the
service of the Chief Commissioner and Commissioners of the Central Authority.
12. No act or proceeding of the Central Authority shall be invalid merely by reason of—
(a) any vacancy in, or any defect in the constitution of, the Central Authority; or
(b) any defect in the appointment of a person acting as the Chief Commissioner
or as a Commissioner; or
(c) any irregularity in the procedure of the Central Authority not affecting the
merits of the case.
13. (1) The Central Government shall provide the Central Authority such number of
officers and other employees as it considers necessary for the efficient performance of its
functions under this Act.
(2) The salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the Central Authority appointed under this
Act shall be such as may be prescribed.
(3) The Central Authority may engage, in accordance with the procedure specified by
regulations, such number of experts and professionals of integrity and ability, who have
special knowledge and experience in the areas of consumer rights and welfare, consumer
policy, law, medicine, food safety, health, engineering, product safety, commerce, economics,
public affairs or administration, as it deems necessary to assist it in the discharge of its
functions under this Act.
14. (1) The Central Authority shall regulate the procedure for transaction of its business
and allocation of its business amongst the Chief Commissioner and Commissioners as may
be specified by regulations.
(2) The Chief Commissioner shall have the powers of general superintendence, direction
and control in respect of all administrative matters of the Central Authority:
Provided that the Chief Commissioner may delegate such of his powers relating to
administrative matters of the Central Authority, as he may think fit, to any Commissioner
(including Commissioner of a regional office) or any other officer of the Central Authority.
15. (1) The Central Authority shall have an Investigation Wing headed by a Director-
General for the purpose of conducting inquiry or investigation under this Act as may be
directed by the Central Authority.
(2) The Central Government may appoint a Director-General and such number of
Additional Director-General, Director, Joint Director, Deputy Director and Assistant Director,
from amongst persons who have experience in investigation and possess such qualifications,
in such manner, as may be prescribed.
(3) Every Additional Director-General, Director, Joint Director, Deputy Director and
Assistant Director shall exercise his powers, and discharge his functions, subject to the
general control, supervision and direction of the Director-General.
(4) The Director-General may delegate all or any of his powers to the Additional
Director-General or Director, Joint Director or Deputy Director or Assistant Director, as the
case may be, while conducting inquiries or investigations under this Act.
Qualifications,
method of
recruitment,
etc., of Chief
Commissioner
and
Commissioners.
Vacancy, etc.,
not to
invalidate
proceedings
of Central
Authority.
Appointment
of officers,
experts,
professionals
and other
employees of
Central
Authority.
Procedure of
Central
Authority.
Investigation
Wing.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13
(5) The inquiries or the investigations made by the Director- General shall be submitted
to the Central Authority in such form, in such manner and within such time, as may be
specified by regulations.
16. The District Collector (by whatever name called) may, on a complaint or on a
reference made to him by the Central Authority or the Commissioner of a regional office,
inquire into or investigate complaints regarding violation of rights of consumers as a class,
on matters relating to violations of consumer rights, unfair trade practices and false or
misleading advertisements, within his jurisdiction and submit his report to the Central Authority
or to the Commissioner of a regional office, as the case may be.
17. A complaint relating to violation of consumer rights or unfair trade practices or
false or misleading advertisements which are prejudicial to the interests of consumers as a
class, may be forwarded either in writing or in electronic mode, to any one of the authorities,
namely, the District Collector or the Commissioner of regional office or the Central Authority.
18. (1) The Central Authority shall—
(a) protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in
unfair trade practices;
(c) ensure that no false or misleading advertisement is made of any goods or
services which contravenes the provisions of this Act or the rules or regulations made
thereunder;
(d) ensure that no person takes part in the publication of any advertisement
which is false or misleading.
(2) Without prejudice to the generality of the provisions contained in sub-section (1),
the Central Authority may, for any of the purposes aforesaid,—
(a) inquire or cause an inquiry or investigation to be made into violations of
consumer rights or unfair trade practices, either suo motu or on a complaint received or
on the directions from the Central Government;
(b) file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State
Commission or the National Commission, as the case may be, in respect of any allegation
of violation of consumer rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of,
consumer rights, including safeguards provided for the protection of consumers under
any other law for the time being in force and recommend appropriate remedial measures
for their effective implementation;
(e) recommend adoption of international covenants and best international
practices on consumer rights to ensure effective enforcement of consumer rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working
in the field of consumer rights to co-operate and work with consumer protection
agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as
may be necessary, to prevent unfair trade practices and to protect consumers' interest;
Power of
District
Collector.
Complaints to
authorities.
Powers and
functions of
Central
Authority.
14 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
(j) issue safety notices to alert consumers against dangerous or hazardous or
unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments
on consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect
consumers' interest.
19. (1) The Central Authority may, after receiving any information or complaint or
directions from the Central Government or of its own motion, conduct or cause to be conducted
a preliminary inquiry as to whether there exists a prima facie case of violation of consumer
rights or any unfair trade practice or any false or misleading advertisement, by any person,
which is prejudicial to the public interest or to the interests of consumers and if it is satisfied
that there exists a prima facie case, it shall cause investigation to be made by the Director-
General or by the District Collector.
(2) Where, after preliminary inquiry, the Central Authority is of the opinion that the
matter is to be dealt with by a Regulator established under any other law for the time being
in force, it may refer such matter to the concerned Regulator along with its report.
(3) For the purposes of investigation under sub-section (1), the Central Authority, the
Director General or the District Collector may call upon a person referred to in
sub-section (1) and also direct him to produce any document or record in his possession.
20. Where the Central Authority is satisfied on the basis of investigation that there is
sufficient evidence to show violation of consumer rights or unfair trade practice by a person,
it may pass such order as may be necessary, including—
(a) recalling of goods or withdrawal of services which are dangerous, hazardous
or unsafe;
(b) reimbursement of the prices of goods or services so recalled to purchasers of
such goods or services; and
(c) discontinuation of practices which are unfair and prejudicial to consumers'
interest:
Provided that the Central Authority shall give the person an opportunity of being
heard before passing an order under this section.
21. (1) Where the Central Authority is satisfied after investigation that any
advertisement is false or misleading and is prejudicial to the interest of any consumer or is in
contravention of consumer rights, it may, by order, issue directions to the concerned trader
or manufacturer or endorser or advertiser or publisher, as the case may be, to discontinue
such advertisement or to modify the same in such manner and within such time as may be
specified in that order.
(2) Notwithstanding the order passed under sub-section (1), if the Central Authority
is of the opinion that it is necessary to impose a penalty in respect of such false or misleading
advertisement, by a manufacturer or an endorser, it may, by order, impose on manufacturer or
endorser a penalty which may extend to ten lakh rupees:
Provided that the Central Authority may, for every subsequent contravention by a
manufacturer or endorser, impose a penalty, which may extend to fifty lakh rupees.
(3) Notwithstanding any order under sub-sections ( 1) and ( 2), where the Central
Authority deems it necessary, it may, by order, prohibit the endorser of a false or misleading
advertisement from making endorsement of any product or service for a period which may
extend to one year:
Power of
Central
Authority to
refer matter
for
investigation
or to other
Regulator.
Power of
Central
Authority to
recall goods,
etc.
Power of
Central
Authority to
issue
directions and
penalties
against false
or misleading
advertisements.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 15
Provided that the Central Authority may, for every subsequent contravention, prohibit
such endorser from making endorsement in respect of any product or service for a period
which may extend to three years.
(4) Where the Central Authority is satisfied after investigation that any person is
found to publish, or is a party to the publication of, a misleading advertisement, it may
impose on such person a penalty which may extend to ten lakh rupees.
(5) No endorser shall be liable to a penalty under sub-sections ( 2) and (3) if he has
exercised due diligence to verify the veracity of the claims made in the advertisement regarding
the product or service being endorsed by him.
(6) No person shall be liable to such penalty if he proves that he had published or
arranged for the publication of such advertisement in the ordinary course of his business:
Provided that no such defence shall be available to such person if he had previous
knowledge of the order passed by the Central Authority for withdrawal or modification of
such advertisement.
(7) While determining the penalty under this section, regard shall be had to the
following, namely:—
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by
such offence; and
(d) the gross revenue from the sales effected by virtue of such offence.
(8) The Central Authority shall give the person an opportunity of being heard before
an order under this section is passed.
22. (1) For the purpose of conducting an investigation after preliminary inquiry under
sub-section (1) of section 19, the Director-General or any other officer authorised by him in
this behalf, or the District Collector, as the case may be, may, if he has any reason to believe
that any person has violated any consumer rights or committed unfair trade practice or
causes any false or misleading advertisement to be made, shall,—
(a) enter at any reasonable time into any such premises and search for any
document or record or article or any other form of evidence and seize such document,
record, article or such evidence;
(b) make a note or an inventory of such record or article; or
(c) require any person to produce any record, register or other document or
article.
(2) The provisions of the Code of Criminal Procedure, 1973, relating to search and
seizure shall apply, as far as may be, for search and seizure under this Act.
(3) Every document, record or article seized under clause ( a) of sub-section ( 1) or
produced under clause (c) of that sub-section shall be returned to the person, from whom
they were seized or who produced the same, within a period of twenty days of the date of
such seizure or production, as the case may be, after copies thereof or extracts therefrom
certified by that person, in such manner as may be prescribed, have been taken.
(4) Where any article seized under sub-section ( 1) are subject to speedy or natural
decay, the Director-General or such other officer may dispose of the article in such manner as
may be prescribed.
(5) In the case of articles other than the articles referred to in sub-section (4), provisions
contained in clause ( c) of sub-section ( 2) of section 38 shall mutatis mutandis apply in
relation to analysis or tests.
Search and
seizure.
2 of 1974.
16 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
23. The Central Government may, if it considers necessary, by notificat

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