Introduction
Consumer disputes arise when a consumer faces problems related to goods or services and approaches a consumer forum for relief. Such disputes commonly involve defective goods, poor services, or unfair business practices.
The Consumer Protection Act, 2019 defines the circumstances in which a disagreement becomes a consumer dispute.
Meaning / Definition
According to Section 2(8) of the Consumer Protection Act, 2019, a consumer dispute means a dispute where the person against whom a complaint is made denies or disputes the allegations contained in the complaint.
In simple terms, when a consumer files a complaint and the opposite party (seller, service provider, or manufacturer) denies the claims made by the consumer, the matter becomes a consumer dispute.
Modes or Types
Consumer disputes may arise from several situations listed under the Act.
Unfair Contract
An unfair contract refers to a contract that contains terms which are unfair or heavily one-sided against the consumer.
For example, a contract that allows a company to cancel services without refunding the consumer.
Unfair Trade Practice
An unfair trade practice refers to dishonest or misleading methods used by sellers to promote the sale of goods or services.
Examples include false advertisements, misleading claims about quality, or hiding important facts about a product.
Restrictive Trade Practice
A restrictive trade practice is a practice that restricts consumer choice or forces the consumer to buy something unnecessary.
For example, a seller insisting that a customer must buy an additional product in order to purchase the main product.
Defective Goods
Consumer disputes may arise when goods are defective.
A defect means any fault, imperfection, or shortcoming in the quality, quantity, or standard of the goods.
Deficiency in Services
A deficiency in service means any fault, shortcoming, or failure in the quality or manner in which the service is provided.
For example, poor medical service, delay in insurance claim settlement, or poor transport services.
Excessive Price
A consumer dispute may arise when a seller charges a price higher than the price fixed by law or printed on the package.
Hazardous Goods
A dispute may arise when a seller fails to inform the consumer about the risks involved in using hazardous goods.
Hazardous Services
Providing services that may cause danger or injury to consumers may also give rise to consumer disputes.
Product Liability Claims
The Consumer Protection Act, 2019 introduced the concept of product liability.
Product liability means the responsibility of the manufacturer, service provider, or seller to compensate a consumer for harm caused by a defective product.
Supply of Spurious Goods or Services
A consumer dispute may also arise when fake or imitation goods (spurious goods) are sold to consumers.
Practical Example
Suppose a consumer purchases a mobile phone that stops working within a few days due to a manufacturing defect. When the consumer approaches the seller for replacement, the seller refuses and denies responsibility.
This disagreement becomes a consumer dispute, and the consumer may approach the consumer forum for relief.
Summary
- A consumer dispute is defined under Section 2(8) of the Consumer Protection Act, 2019.
- It arises when the opposite party denies or disputes the allegations made in a consumer complaint.
- Consumer disputes may arise due to defective goods, deficiency in services, unfair trade practices, or excessive pricing.
- The 2019 Act introduced new grounds such as unfair contracts and product liability.
- Selling spurious goods or providing hazardous goods or services can also lead to consumer disputes.
- Consumer forums are established to resolve such disputes in a simple and effective manner.