Table of Contents

PART – A

Q1. Who is a Consumer?

Ans. A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale.  Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Q2. What is Trade Mark?

Ans. A trademark is a recognizable sign, design, phrase, or expression such as a logo or brand name, that identifies products or services from a particular source and distinguishes them from competitors. It acts as intellectual property to protect brand identity and prevent consumer confusion.

Q3. Explain false Advertising

Ans. False advertising refer to the practice of making any written statement or representation which –

  1. Falsely suggest that goods are of a particular standard, quality, quantity, grade, composition and model.
  2. Falsely suggest any rebuilt, second-hand, renovated, re-conditioned, or old goods as new.
  3. Represents that the goods or services have sponsorship, approval, or affiliation which such goods or services do not have.
  4. Makes a false or misleading representation concerning the need for or usefulness of any goods or services.
  5. Gives to the public any warranty or guarantee of the performance, efficiency, or length of time of a product that is not based on an adequate or proper test.

Q4. What do you mean by Goods?

Ans. According to Section 2(21) of the CPA, 2019, Goods means every kind of movable property and includes “food” as defined in section 3(1)(j) of the Food Safety and Standard Act, 2006.

Q5. Explain jurisdiction of District Forum.

Ans. Section 34 of the CPA, 2019, states jurisdiction of the District Commission:

  1. Territorial Jurisdiction – Every District Commission has definite geographical limits within which it can exercise its jurisdiction. A case is supposed to fall within such territory when at the time of the institution of the complaint:
  1. The cause of action wholly or partially arises in that area.
  2. The complainant resides or personally works for gain.
  3. The opposite party resides or carry on business.
  1. Appellate Jurisdiction – District Forum is the lowest consumer court; thus it does not have any appellate jurisdiction.
  2. Pecuniary Jurisdiction –
    • As per CPA, 1986: up to 20 lakhs.
    • As per CPA, 2019: up to 1cr.
    • Revised in 2021: up to 50 lakhs.

Q6. Who is a Trader?

Ans. According to Section 2(45) of the CPA, 2019, "trader", 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.

Q7. What is the limitation for filing appeal?

Ans. The complaint must be filed within 2 years from the date the cause of action arose. An appeal against a District Commission order must be filed within 45 days from the date of the order. Appeals against State or National Commission orders generally must be filed within 30 days.

However, the court may entertain a complaint/appeal after the expiration of the limitation period, if there is sufficient cause to be believed.

Q8. Define "service rendered free of charge".

Ans. “Service rendered free of charge” refers to services provided without any cost, fee, or payment, which are excluded from the legal definition of “service” as under CPA, 2019.

Q9. What is Insurance Service?

Ans. Insurance is an agreement between two parties, insurer, who indemnify (provides protection) the insured in case of any financial loss, according to the terms and conditions of the contract. If the insurance company defrauds or due to negligence of the company, loss has been incurred by the insured, then the insurer can be sued.

CPA has the objective of providing cheap and expeditious redressal of grievance to the consumer affected by the non – performance on the part of the person providing services for a consideration.

Q10. What is Consumer Dispute?

Ans. A consumer dispute is a disagreement between a buyer and a seller/service provider, occurring when a person against whom a complaint is made denies or disputes the allegations, such as defective goods, deficient services, overcharging, or unfair trade practices. It arises when consumer rights are violated, necessitating redressal through consumer courts or arbitration. [In CPA, 2019, Section 2(8) defines consumer dispute].

PART – B

Q11. How to determine negligence under Medical Services?

Ans. The apex court has pronounced the landmark judgement, “Indian Medical Association v. V.P. Shantha” with special reference to medical services under the CPA. Where medical services are covered under the definition of service, doctors and hospitals fall within the scope of summary jurisdiction of CPA for the grant of compensation and other relief provided by the act.

In this case, the apex court held that the person suffering any loss on account of any negligence or deficiency in such service includes rendering of consultation, diagnostics, and treatment, both medical and surgical. Professional men should possess certain degree of competence and they should exercise reasonable care in discharge of their duties. Medical practitioner doesn’t enjoy immunity and they can be sued in contract of tort on the ground that they have failed to exercise reasonable skill and care.

Components of Medical Negligence

There are 3 main components of medical negligence:

  1. Existence of legal duty
  2. Breach of legal duty
  3. Damage caused by such breach of duty
  1. Existence of legal duty – In any industry, professionals have a duty of care to uphold a certain level of care as determined by their specific field. Equally a healthcare professional is expected to meet a certain standard of care towards patients, where this standard will vary according to specific healthcare situation. Guidelines for the applicable standard of care in a given situation will take into account the medical professionals’ speciality, traditional medical practices and the skills and care that an average physician would provide in similar circumstances.
  2. Breach of the legal duty – The next element of medical malpractice that needs to be proved in medical malpractice litigation is breach of legal duty. To prove that there was a doctors’ professional duty of care, we must establish that the doctor failed to exercise the standard of care or skill that would commonly be exhibited by a similar doctor in that situation. This takes into account what specialised knowledge a doctor in that situation would have. Typically, this requires expert testimony from another medical professional to establish that a standard of care was not met in your case.
  3. Damage caused by such breach of duty – For a medical malpractice case to be successful, the personal injury will also have to prove that the victim was harmed by the medical negligence, leading to losses and expenses. For example: a doctor incorrectly diagnosing your condition could require you to seek additional medical treatment following the new issues caused by the mis-diagnosis, as well as any medical treatment for your original condition. If you have been negatively affected by the medical mal-practice, you are within your rights to fight to recover compensation in a medical mal-practice claim.

A medical professional or hospital shall be held liable for all actions against the patient where they have not taken proper standard of care and it has resulted in suffering on the part of the patient. The burden of proof shall lie on the complainant to prove the case of negligence. They have to first establish that there was a duty of care on part of the accused and that there was breach of such duty.

Bolam Test is as essential in determining medical negligence. It states that a doctor is not negligent if they acted in accordance with a practice accepted as proper by a responsible body of medical professionals.

Q12. What constitute consumer Protection Council?

Ans. CCPC is an advisory body to promote and protect consumer rights. Constitution of CCPC under CPA, 2019:

Section 3(1): requires the central government to establish by notification a Central Consumer Protection Council (CCPC) for the purpose of the act. The central government has made the consumer protection council rules, 2020, which came into force on 20 July, 2020. The rules provide for the establishment and constitution of the central council.

Composition of the Central Council:

Section 3(2) of the act provides that the central council shall be an advisory council and consist of the following members namely: -

  1. The minister in-charge of the department of consumer affairs in the central government; who shall be the chairperson of the central council.
  2. The minister of state in-charge of the consumer affairs in the central government; who shall be the vice-chairperson.
  3. The minister in-charge of the consumer affairs of two of the states from each region as mentioned in Schedule 1, to be changed by rotation on expiration of the term of the council.
  4. An administrator of a Union Territory to represent that UT, as mentioned in Schedule 2, to be changed by rotation on expiration of the term of the council.
  5. Two members of parliament, one from the Lok Sabha and one from the Rajya Sabha.
  6. Representatives of departments of the central government, autonomous organisations, or regulator, concerned with the consumer interest – not exceeding 5, to be nominated by the central government.
  7. The chief commissioner of the CCPA.
  8. The Registrar, National Consumer Dispute Redressal Commission, New Delhi.
  9. Representatives of active consumer organisations - not exceeding 5, to be nominated by the central government.
  10. Representatives with proven expertise and experience, who are capable of representing consumer interest. One from each of 5 regions; at least one woman.
  11. The secretaries in-charge of the consumer affairs in the state to be nominated by the central government – not exceeding 3.
  12. The secretary in-charge of the consumer affairs in the central government, shall be the member secretary in the central council.

Q13. What do you mean by Bargain Price?

Ans. Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.

Case: M/s Aero Club v. Ravinder Singh Dhanju (2017)

The appellant, M/s Aero Club (Woodland Store), offered a 35% discount on MRP of articles at their outlet. The respondent purchased a T-shirt from their outlet. VAT was charged additionally at 5% on the discounted price. The complainant contended that since the MRP included taxes, charging VAT separately on the discounted price was improper. After his request for refund was denied, he filed a consumer complaint before the District Consumer Dispute Redressal Forum, Chandigarh. The forum allowed the complaint, ordered refund of the VAT amount, and awarded compensation and litigation expenses to the complainant. The appellant, M/s Aero Club, filed appeal against the forum’s order.

The court agreed with the forum’s decision that MRP is inclusive of all taxes, and therefore, charging VAT separately on the discounted price is impermissible and constitutes unfair trade practice. The court further examined the advertisement practices of the appellant, noting that offering a flat 35% discount while charging VAT separately misleads consumers and falls within the ambit of unfair trade practices.

The court dismissed the appeal, thereby upholding the order of the District Consumer Dispute Redressal Forum. The appellant must return the VAT charged on the discounted price and pay compensation and litigation expenses awarded by the forum.

Q14. What is Voluntary and Involuntary Consumer?

Ans. A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale.  Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

A Voluntary Consumer (often referred to as a Voluntary Consumer Organisation or Association) is an organisation formed by a group of individuals who join together of their own free will; without legal mandate or financial incentive to collectively protect and advocate for consumer rights and interests.

In short, a person who buys goods and avail services knowingly. The one who willingly purchase goods for consideration.

An involuntary consumer is an individual who is provided with a good or service without their prior consent or request, yet is subsequently pressured or legally obligated to pay for it.

Under the Consumer Protection Act (CPA), 2019, this concept is often linked to Unfair Trade Practices.

Example: If a credit card company activates a paid insurance plan on your account without your permission and begins charging you a monthly fee, you have become an involuntary consumer of that insurance service.

PART – C

Q15. What are the Rights of Consumer?

Ans. In a modern consumer-driven economy, the consumer is regarded as the most important participant in the market. Although the consumer is often referred to as the “king”, in practice, consumers require legal protection to safeguard them from unfair trade practices, defective goods, and deficient services. To address this need, the Government of India enacted the Consumer Protection Act, 2019, which replaced the earlier 1986 Act and brought significant reforms such as inclusion of e-commerce, stricter penalties for misleading advertisements, and faster dispute resolution mechanisms.

The Act is based on the principle of balancing rights and responsibilities. While it grants consumers various legal rights, it also expects them to act as vigilant and responsible participants in the market. The rights of consumers are broadly derived from statutory provisions and international guidelines, and they aim to ensure protection against exploitation and promote fair trade practices.

Under the Consumer Protection Act, 2019, a consumer is entitled to the following six fundamental rights:

1) Right to Safety

The Right to Safety means that consumers have the right to be protected against goods and services which are hazardous to life, health, and property. This right ensures that products sold in the market meet safety standards and do not pose any danger to consumers.

Consumers are encouraged to prefer certified products such as:

  • ISI mark for industrial and electrical goods,
  • AGMARK for agricultural products,
  • Hallmark for gold and silver jewellery,
  • FSSAI certification for food items,
  • Eco-mark for environment-friendly goods.

This right places an obligation on manufacturers and sellers to ensure that only safe and standardised products are made available in the market.

2) Right to be Informed

The Right to be Informed gives consumers the right to receive complete information about the goods and services they purchase. This includes details regarding quality, quantity, purity, standard, ingredients, price (MRP), and potential risks associated with usage.

This right protects consumers from misleading advertisements and unfair trade practices. Proper labelling of products enables consumers to make informed choices and prevents exploitation based on ignorance or lack of information.

3) Right to Choose

The Right to Choose guarantees that consumers have access to a variety of goods and services at competitive prices. In a competitive market, consumers should not be forced to buy a product due to monopoly or restrictive trade practices.

Where competition exists, consumers benefit from better quality and pricing. Even in cases of monopoly or limited supply, the consumer has the right to receive satisfactory quality and fair pricing of goods and services.

4) Right to be Heard

The Right to be Heard ensures that the interests and grievances of consumers are given due consideration at appropriate forums. Consumers have the right to express their complaints and concerns regarding defective goods or deficient services.

This right also includes the right to representation in consumer welfare organizations and grievance redressal bodies. Consumer forums and commissions are established under the Act to ensure that consumer voices are not ignored and are properly addressed.

5) Right to Seek Redressal

The Right to Seek Redressal allows consumers to demand compensation or remedy against unfair trade practices, defective goods, or deficient services. Consumers can file complaints in District, State, or National Consumer Dispute Redressal Commissions depending on the value and nature of the dispute.

This right ensures fair settlement of genuine grievances and strengthens accountability among sellers and service providers. Even minor issues, if left unaddressed, can lead to larger consumer exploitation, and therefore this right plays a crucial role in maintaining market discipline.

6) Right to Consumer Education

The Right to Consumer Education ensures that consumers have access to knowledge and awareness about their rights and responsibilities. An informed consumer is better equipped to protect themselves from exploitation.

Consumer education helps individuals understand:

  • Their legal rights,
  • Methods of filing complaints,
  • Standards of goods and services,
  • Preventive measures against fraud.

This right is especially important in rural and less-aware populations, where lack of awareness often leads to exploitation.

Conclusion

Thus, the Consumer Protection Act, 2019 empowers consumers with six fundamental rights aimed at ensuring safety, transparency, choice, participation, redressal, and awareness. These rights collectively strengthen the position of consumers in the marketplace and promote fair trade practices.

However, the effectiveness of these rights depends not only on legal provisions but also on the awareness and active participation of consumers. A truly empowered consumer is one who is both aware of their rights and responsible in exercising them.

Q16. Elucidate constitution and procedure of State Consumer Protection Council.

Ans. State Consumer Protection Council as under CPA, 2019:

Section 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.

Composition of the State Consumer Protection Council:

Section 6(2) provides that the State Council shall be an advisory council and consist of the following members, namely: —

  1. the Minister-in-charge of Consumer Affairs in the State Government who shall be the Chairperson;
  2. such number of other official or non-official members representing such interests as may be prescribed;
  3. such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.

Meeting of State Council:

  • Section 6(3): The State Council shall meet as and when necessary; shall meet at least twice every year.”
  • Section 6(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.

Objective of the State Consumer Protection Council:

Section 7: The objectives of every State Council shall be to render advice on promotion and protection of consumer rights under this Act within the State.  It focuses on protecting consumers against hazardous goods, unfair trade practices, and ensuring access to information and redressal mechanisms at the state level.

Key Objectives:

  1. Protection of Rights: To protect consumer rights, including the right to safety, information, choice, and redressal.
  2. Advisory Role: To advise the State Government on policies promoting and protecting consumer rights within their jurisdiction.
  3. Ensuring Quality/Safety: To protect consumers from the marketing of hazardous goods and services.
  4. Unfair Trade Practices: To curb unfair and deceptive trade practices. 

These objectives are designed to align state-level actions with the overall goals of the central Consumer Protection Act, focusing on consumer education and empowerment.

Thus, the State Consumer Protection Council under the Consumer Protection Act, 2019 serves as an important advisory body that strengthens consumer protection at the state level. Through its composition and periodic meetings, it ensures representation of consumer interests, while its objectives focus on safeguarding rights, preventing unfair trade practices, and promoting consumer awareness.

Q17. What do you mean by Unfair Trade Practice?

Ans. The term ‘Unfair Trade Practices’ is defined under Section 2(47) of the CPA, 2019.

It refers to the use of various deceptive, fraudulent, or unethical methods to obtain business. Unfair business practices include misrepresentation, false advertising, tied/tie-in selling, deceptive pricing and non-compliance with manufacturing standards. Such acts are considered unlawful by statute through the consumer protection laws.

Unfair Trade Practices may be categorised under:

  1. False representation
  2. Bargain price
  3. Non-compliance of prescribed standard
  4. Falsification of trademark
  5. Unsafe and hazardous goods
  1. False Representation:

The practice of making any written statement or representation which –

  1. Falsely suggest that goods are of a particular standard, quality, quantity, grade, composition and model.
  2. Falsely suggest any rebuilt, second-hand, renovated, re-conditioned, or old goods as new.
  3. Represents that the goods or services have sponsorship, approval, or affiliation which such goods or services do not have.
  4. Makes a false or misleading representation concerning the need for or usefulness of any goods or services.
  5. Gives to the public any warranty or guarantee of the performance, efficiency, or length of time of a product that is not based on an adequate or proper test.
  1. Bargain Price:

Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.

  1. Non-compliance of prescribed standard:

Any sale/supply of goods used by the consumer, having reason to believe that goods do not comply with the standard prescribed by some competent authority in relation to their performance, composition, content, design, packaging, as are necessary to prevent the risk of injury to the person using such goods shall amount to an unfair trade practice.

  1. Falsification of Trademark:

Falsely applying of a trademark is said: -

  1. When a person deceptively applies the falsified trademark to goods/services or any packet which contains goods.
  2. When a person uses that package which has a false trademark or deceptively similar trademark of the proprietor for the purpose of packaging or wrapping of goods other than the real goods of the trademark.
  1. Unsafe and Hazardous Product:

The term hazardous goods have not been defined in the act. The dictionary meaning of the term is dangerous or risky. However, the term is used in context of goods only. A person can make a complaint of he is not informed about the hazardous nature of the goods, but the same is not true in case of hazardous services. The rationale behind the provision is to ensure physical safety of the consumer. The law seeks to ensure that those responsible for bringing goods to the market, in particular supplier, importer, or retailer and the same should ensure that while in care, these goods are not rendered unsafe through improper handling or care.

Relevant Case Laws:

1. Maruti Suzuki India Ltd. v. Rajiv Kumar Loomba (2009)

This is a landmark consumer protection case involving "unfair trade practices" under the Consumer Protection Act, 1986. It addresses whether a manufacturer can charge a consumer for equipment not provided under the guise of a "uniform pricing policy."

Facts of the Case:

The respondent (Mr. Loomba) purchased a Maruti car in Chandigarh. At the time, federal regulations required cars sold in the four major metros (Delhi, Mumbai, Kolkata, Chennai) to be fitted with catalytic converters to meet emission norms. This was not required in Chandigarh. The appellant (Maruti) charged the respondent the same price as metro customers, effectively charging an extra ₹7,000 for a catalytic converter that was not installed in his car. The District, State, and National Consumer Forums ruled in favour of the consumer, leading Maruti to appeal to the Supreme Court.

Ratio Decidendi (Reasoning of the Court):

The Court held that while forums usually don't interfere in price setting, they have full authority to intervene when a consumer is billed for a specific item not supplied. Charging for a feature not included in the vehicle is inherently deceptive and falls squarely under "unfair trade practices." Even if a uniform pricing policy existed, applying it in a way that forces a customer to pay for "nothing" is arbitrary and violates the principle of equity under Article 14.

Decision:

The Supreme Court dismissed the appeal. It upheld the lower consumer court's order directing Maruti Suzuki to refund the excess amount (₹7,000) to the consumer along with interest and costs. The Court clarified that manufacturers cannot use "policy" as a shield to justify charging for unrendered services or unsupplied goods.

2. Pepsi Co. Inc. v. Hindustan Coca Cola Ltd. (2003)

This case concerns the legality of comparative advertising and the thin line between "puffing" (extolling one’s own goods) and "disparagement" (denigrating a competitor's goods). It arose from a series of commercials released by Coca-Cola that allegedly mocked Pepsi’s brand.

Key Issues Involved: Trademark infringement (using "Pappi" for Pepsi), Copyright infringement (copying the Roller Coaster commercial/theme), and disparagement of Pepsi's product as inferior.

The court found that Coca-Cola’s commercial was a "literal imitation" of Pepsi’s original Roller Coaster commercial, including similar character dress and setting. The appeal was partly accepted. The court restrained Coca-Cola from airing the specific commercials that mimicked Pepsi’s theme and infringed on their copyright. The ruling established that comparative ads cannot be used to copy a competitor's original creative expression, upholding that "the entire theme of the advertisement and the sequence of events" cannot be stolen.

3. CCPA v. Rapido (Roppen Transportation Services Private Limited) (2025) [Misleading Advertisement]

Context: The Central Consumer Protection Authority (CCPA) investigated advertisements for "Guaranteed Auto" and "Auto in 5 min or get ₹50". The "₹50" was actually "Rapido Coins" (valid only for bike rides, expiring in 7 days), not cash, and the T&C disclaimer was in unreadable font.

Verdict: The CCPA imposed a ₹10 lakh penalty, finding that the company overstated its service capability while concealing qualifying conditions, which misled consumers into using the platform. The authority also directed the platform to ensure that any consumer who availed the offer of “auto in five minutes or get ₹50”, and did not receive the promised ₹50, shall get the amount in full without any further delay or condition.

4. Irshad Rashid Dand vs. Physics Wallah Private Limited & Anr. (2026) [Non-refund of Fees]

The complainant paid ₹35,000 for a NEET coaching course, but Physics Wallah failed to provide access to the classes. The commission deemed the retention of fees without providing services as an "unfair trade practice" and a "deficiency in service".

The court ordered a refund of the ₹35,000 fee, plus ₹50,000 as compensation for academic loss/mental agony and ₹10,000 for litigation costs (totaling ₹95,000). The ruling serves as a notable precedent in 2026 regarding the accountability of ed-tech platforms under consumer protection laws.