Introduction

When consumers face problems such as defective goods, poor services, excessive pricing, or unfair trade practices, they can file a complaint under the Consumer Protection Act, 2019. The law provides a clear system for resolving such disputes.

To understand liability in consumer disputes, it is important to know who can be held responsible, who can file complaints, the time limit for filing complaints, and the remedies available.

Meaning / Definition

A consumer dispute arises when a consumer files a complaint alleging that a trader, manufacturer, or service provider has caused harm through defective goods, deficient services, unfair trade practices, or similar violations.

Under Section 2(6) of the Consumer Protection Act, a complaint means a written allegation made by a complainant seeking relief under the Act.

The complaint may relate to:

• unfair trade practices or restrictive trade practices
• defects in goods
• deficiency in services
• charging excessive price
• sale of hazardous goods
• provision of hazardous services
• product liability claims

Modes or Types

Liability of Trader

According to Section 2(45), a trader means a person who sells or distributes goods for sale. The term also includes:

• the manufacturer of the goods, and
• the packer of goods when sold in packaged form.

Thus, liability may arise against sellers, manufacturers, and even persons who pack goods.

Liability of Manufacturer

Under Section 2(24), a manufacturer means a person who:

• makes goods or parts of goods
• assembles goods made by others
• places their own brand or mark on goods made by another person

Thus, even a company selling goods under its brand name may be treated as the manufacturer.

Who Can File a Complaint

Under Section 2(5) and Section 35, the following persons can file a complaint:

• a consumer
• a registered consumer association
• the Central Government or State Government
• the Central Consumer Protection Authority
• one or more consumers representing many consumers with the same interest
• legal representative or legal heir of a deceased consumer
• parent or legal guardian of a minor consumer

In certain cases, courts have also allowed complaints to be filed by:

• the husband of the consumer
• a relative of the consumer
• an insurance company that has paid compensation to the insured person.

Limitation for Filing Complaint

Under Section 69, a complaint must normally be filed within two years from the date on which the cause of action arises.

The cause of action means the date when the consumer first suffers the loss or injury.

However, the Consumer Commission may accept a complaint filed after two years if it is satisfied that there was sufficient cause for delay.

Remedies Available

Under Section 39, Consumer Commissions may grant several types of relief, including:

• removal of defects in goods
• replacement of goods with new goods
• refund of the price paid
• compensation for loss or injury suffered
• compensation in product liability cases
• removal of deficiencies in services
• discontinuation of unfair trade practices
• withdrawal of hazardous goods from sale
• stopping manufacture of hazardous goods
• payment of compensation to a large group of consumers
• issuing corrective advertisements to neutralise misleading advertisements
• payment of litigation costs
• stopping misleading advertisements

Important Case Law

Namdeo Baijrao Raut v. Hindustan Lever Ltd.

Cotton seeds were sold under the brand name of Hindustan Lever Ltd. The company argued that it only marketed the seeds and did not manufacture them. The Commission held that since the company had placed its mark on the goods, it fell within the definition of manufacturer and was liable.

Cosmopolitan Hospital v. Smt. Vasantha P. Nair

The court held that the legal representative of a deceased consumer can file a complaint because the legal rights of the consumer pass to the legal representative.

Joseph Alias Animon v. Dr. Elizabeth Zachariah

It was held that the legal heir of a deceased consumer can maintain a complaint under the Consumer Protection Act.

Punjab National Bank v. K. B. Shetty

The court held that in certain circumstances a husband may file a complaint on behalf of his wife, especially when she may not be aware of her legal rights.

New India Assurance Co. Ltd. v. Green Transport Co.

An insurance company that had paid compensation to the insured person was allowed to file a complaint against the transport company responsible for the loss.

Mukund Lal Ganguly v. Dr. Abhijit Ghosh

The Commission held that the cause of action arises when the consumer finally suffers the injury or loss, and limitation must be calculated from that point.

Distinction / Comparison

Practical Example

A consumer buys a pressure cooker from a shop. During use, the cooker bursts due to a manufacturing defect and causes injury.

The consumer can file a complaint against:

• the manufacturer for the defective product
• the seller or trader who sold the product

The Consumer Commission may order compensation, replacement of the cooker, or refund of the price.

Summary

• A consumer dispute arises when a consumer files a complaint regarding defective goods, deficient services, or unfair practices.
• Traders, manufacturers, and packers can be held liable under the Consumer Protection Act.
• Complaints may be filed by consumers, consumer associations, governments, or legal representatives.
• Complaints must normally be filed within two years from the date when the cause of action arises.
• Consumer Commissions can grant remedies such as compensation, replacement of goods, refund of price, and stopping unfair trade practices.