consumer protection act essay

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Consumer Protection Act, 2019

Consumer protection act, 2019 - a brief overview.

The Consumer Protection Act, 2019 is an important topic for the UPSC exam. This is a part of the polity and governance segments in the UPSC syllabus. In this article, we give you a brief description of the details of the newly-passed Act, salient provisions of the Act, its importance and associated concerns, for the IAS exam .

Consumer Protection Act, 2019:- Download PDF Here

The new Consumer Protection Act was passed by Parliament in 2019. It came into force in July 2020 and replaced the Consumer Protection Act, 1986.

Read about the important acts in India from the linked article.

Given below is a gist of the Consumer Protection Act, 2019:

Need for the new act:

• The Digital Age has ushered in a new era of commerce and digital branding, as well as a new set of customer expectations. Digitisation has provided easy access, a large variety of choices, convenient payment mechanisms, improved services and shopping as per convenience. However, there are also associated challenges related to consumer protection.
• To help address the new set of challenges faced by consumers in the digital age, the Indian Parliament passed the landmark Consumer Protection Bill, 2019 which aims to provide timely and effective administration and settlement of consumer disputes.

Consumer Protection Act 2019 Details:

• Consumer Protection Act, 2019 is a law to protect the interests of the consumers. This Act provides safety to consumers regarding defective products, dissatisfactory services, and unfair trade practices.
• The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

Rights of the consumers:

• Consumers have the right to information on various aspects of goods and services. This could be information about the quantity, quality, purity, potency, price, and standard of goods or services.
• To be protected from hazardous goods and services. Right to protection against goods and services that can be dangerous to life and property.
• To be protected from unfair or restrictive trade practices.
• Consumers have the right to access a variety of goods and services at competitive prices.
• Consumers should have the right to redressal.

Also, read about the  National Consumer Disputes Redressal Commission (NCDRC) in the linked article.

Refer to the links below for IAS exam preparation:

Salient Provisions of the Consumer Protection Act 2019

New definition of consumer :

• The new Act has widened the definition of ‘consumer’.

Definition of consumer:

• As per the Act, a person is called a consumer who avails the services and buys any good for self-use. Worth to mention that if a person buys any good or avails any service for resale or commercial purposes, he/she is not considered a consumer. This definition covers all types of transactions i.e. offline and online through teleshopping, direct selling or multi-level marketing.

Central Consumer Protection Authority :

• The Act proposes the establishment of the Central Consumer Protection Authority (CCPA) as a regulatory authority.
• The CCPA will protect, promote and enforce the rights of consumers and regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights.
• The CCPA will have the right to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses, impose penalties and file class-action suits.
• The CCPA will have an investigation wing to conduct independent inquiry or investigation into consumer law violations.

To get the List of important Acts that Transformed India for the upcoming UPSC exam preparation, candidates can visit the linked article.

Consumer Disputes Redressal Commission: 

• The Act has the provision of the establishment of Consumer Disputes Redressal Commissions (CDRCs) at the national, state and district levels to entertain consumer complaints.
• As per the notified rules, the State Commissions will furnish information to the Central Government on a quarterly basis on vacancies, disposal, the pendency of cases and other matters.
• Overcharging or deceptive charging
• Unfair or restrictive trade practices
• Sale of hazardous goods and services which may be hazardous to life.
• Sale of defective goods or services
• As per the Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases up to Rs. 5 lakh.

E-Filing of Complaints:

• The new Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. This is unlike the earlier condition where the consumer had to file a complaint at the place of purchase or where the seller has its registered office address.
• The new Act also contains enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing.
• Consumers will also not need to hire a lawyer to represent their cases.

Product Liability & Penal Consequences :

• A manufacturer or product service provider or product seller will now be responsible for compensating for injury or damage caused by defective products or deficiency in services.
• This provision brings within its scope, the product manufacturer, product service provider and product seller, for any claim for compensation. The term ‘product seller’ would also include e-commerce platforms.

Penalties for Misleading Advertisement:

• The CCPA may impose a penalty on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment.

Provision for Alternate Dispute Resolution :

• The new Act provides for mediation as an Alternate Dispute Resolution mechanism. For mediation, there will be a strict timeline fixed in the rules.
• As per the recently notified rules, a complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement exists and parties agree to it. The mediation will be held in the Mediation Cells to be established under the aegis of the Consumer Commissions. There will be no appeal against settlement through mediation.

Unfair Trade Practices:

• The new Act has armed the authorities to take action against unfair trade practices too.
• The Act introduces a broad definition of Unfair Trade Practices, which also includes the sharing of personal information given by the consumer in confidence unless such disclosure is made in accordance with the provisions of any other law.

The Central Consumer Protection Council:

• As per the notified Central Consumer Protection Council Rules, the Central Consumer Protection Council would be headed by the Union Minister of Consumer Affairs, Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members from different fields.
• The Council, which has a three-year tenure, will have a Minister-in-charge of consumer affairs from two States from each region – North, South, East, West, and NER. There is also a provision for having working groups from amongst the members for specific tasks.

Applicability:

• This Act is applicable to all the products and services, until or unless any product or service is especially debarred out of the scope of this Act by the Central Government.

Aspirants can read about different rights available to Indian citizens from the links given below:

Consumer Protection Act 2019 Significance:

Empowering consumers:

• Consumer-driven businesses such as retail, e-commerce would need to have robust policies dealing with consumer redressal in place.
• The new Act will also push consumer-driven businesses to take extra precautions against unfair trade practices and unethical business practices.

Inclusion of the e-commerce sector:

• E-commerce has been witnessing tremendous growth in recent times. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026.
• As per the notified rules, every e-commerce entity is required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, the security of payment methods, charge-back options, etc. including country of origin which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage on its platform.
• The e-commerce platforms will have to acknowledge the receipt of any consumer complaint within forty-eight hours and redress the complaint within one month from the date of receipt under this Act. This will bring e-commerce companies under the ambit of a structured consumer redressal mechanism.
• E-commerce entities that do not comply will face penal action.

Time-bound redressal:

• A large number of pending consumer complaints in consumer courts have been common across the country. The new Act by simplifying the resolution process can help solve consumer grievances speedily.
• A main feature of the Act is that under this, the cases are decided in a limited time period.

Responsible endorsement:

• The new Act fixes liability on endorsers considering that there have been numerous instances in the recent past where consumers have fallen prey to unfair trade practices under the influence of celebrities acting as brand ambassadors.
• This will make all stakeholders – brands, agencies, celebrities, influencers and e-commerce players – a lot more responsible. The new Act would force the endorser to take the onus and exercise due diligence to verify the veracity of the claims made in the advertisement to refute liability claims.

Upholding consumer interests:

• For the first time, there will be an exclusive law dealing with Product Liability.
• Product liability provisions will deter manufacturers and service providers from delivering defective products or deficient services.
• The new legislation empowers the National Consumers Dispute Redressal Committee as well as the State Commission to declare null and void any terms of a contract while purchasing a product. This will go a long way in protecting consumers, who are often subject to contract conditions that favour a seller or manufacturer.

Alternate dispute redressal mechanism:

• The provision of Mediation will make the process of dispute adjudication simpler and quicker.
• This will provide a better mechanism to dispose of consumer complaints in a speedy manner and will help in the disposal of a large number of pending cases in consumer courts across the nation.

Simplified process for grievance redressal:

• The new Act would ease the overall process of consumer grievance redressal and dispute resolution process. This will help reduce inconvenience and harassment for the consumers.
• The enhanced pecuniary jurisdiction and provisions providing statutory recognition to mediation processes, enabling filing of complaints from any jurisdiction and for hearing parties through video-conferencing will increase accessibility to judicial forums and afford crucial protection in times when international e-commerce giants are expanding their base.

Read more about the  Consumer Confidence Index (CCI) at the linked article.

Consumer Protection Act 2019 Concerns:

State regulation:

• As part of the Consumer Protection Act, 2019, the Ministry of Consumer Affairs will compile a code of conduct for advertisers and agencies, a move designed to curb unfair practices and misleading claims. The planned code will detail penalties for advertisers and their agencies and publishers if misleading advertising and false claims are found.
• There have been concerns that this approach would mark a move from self-regulation to a more federated oversight.

Implementational challenges:

• The existing vacancies at the district commission level would undermine the effective implementation of the new Act.

Lack of differentiated approach:

• As per the proposed rules for the e-commerce businesses, companies are not allowed to “manipulate the price” of goods and services offered on their platforms to gain unreasonable profit or discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act.
• The clause on the manipulation of price by e-commerce companies appears irrelevant as sometimes, the e-commerce companies would want to reduce the price to enhance sales volume. For a country with market size of around $25 billion, the guidelines should have taken a deeper view of the e-commerce ecosystem, covering all prevailing business models between consumers, marketplaces and sellers.

Relevant Links:

Frequently Asked Questions related to the Consumer Protection Act 2019

What is the consumer protection act in india, what are the main features of the consumer protection act, what is the aim of the consumer protection act.

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68 Consumer Protection Essay Topic Ideas & Examples

🏆 best consumer protection topic ideas & essay examples, 👍 good research topics about consumer protection, 🎓 interesting topics to write about consumer protection.

• Consumer Protection: Does It Work Simultaneously, for an attorney and police professionals who know their job, detecting the signs of crime in consumer extortion is not difficult, and the police department can interpret such actions as felony.
• The Consumer Financial Protection Bureau and the Federal Trade Commission The two organizations are essential for the economy of the United States and ensuring that merchants observe the rights of consumers.
• Consumer Protection Law: Product Recall The level of negligence in allowing the use of the LED bulbs by the consumers is minimal and the risks that have been reported by the consumers of the goods are less.
• Business Law, Consumer Protection Laws The role plays by the law in the control of the supply of products that are harmful to the body remains only to few people who can dispute. The due effect of this is that […]
• Consumer Protection Under Gulf State Laws In the Kingdom of Saudi Arabia, consumer protection is and still one of the vital issues in the country. In 1979, Onah extended the consumerism idea to countries in the third world with an aim […]
• Antitrust and Consumer Protection Law Scenario In this section we will briefly review the circumstances of the case against the sexual harassment laws that governs the workplaces of all the organizations in the United States.
• Contract Law in Business and Consumer Protection When the couple approached the hotel manager, they were referred to the terms and conditions form they had signed as they checked in and one of the terms and conditions read that the hotel will […]
• Consumer Protection from Unfair Trading 2008 This paper assesses the extent to which the implementation of the requirements of the Unfair Commercial Practices Directive by Consumer Protection from Unfair Trading Regulations 2008 has resulted in the general duty for fair trade.[3] […]
• The New York State Consumer Protection Board They go on in stating that it is not the credit crunch or the subprime meltdown crisis that developed out of the reach of the law and thus made it necessary for it to be […]
• Consumer Protection and Communication In the period of globalization, a consumer is a person who accesses global resources and buys global goods and services.in its turn, the consumer is influenced by “global web of logos and brands”.
• Bankruptcy and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 The stated purpose of the amendments to the Bankruptcy Code enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ‘ is to “improve bankruptcy law and practice by restoring personal responsibility and […]
• The Sharing Economy and Consumer Protection Regulation In daily occurrences, one can experience the impact of the market economy through the changes in the prices of goods and services.
• Customer Service: Quality and Protection It is important to note that the differences do not relate to the number of individuals involved in the purchase or consumption of the product.
• Online UAE Consumer Protection and Threats Before engaging in an online purchase in the UAE, it is vital for the customer to access its merits and demerits, security of the transaction, and regulative organs that directly provide protection from unpredictable and […]
• Consumer Protection in Islam: The Case of Pakistan The purpose of this framework is to prevent injustice as it gives the customer the right to forgive or sue in case of deception.
• Financial Services and Consumer Protection After the Crisis The case-study examines principal theories and the reasoning behind market intervention for the purpose of consumer prevention in the post-crisis era.
• Consumer Protection Without Law The purpose of this article is to investigate the regime of one-way contracts between the customer and the business, which binds the consumers to the business and not the other way.
• Dubai Consumer Protection Division’s Activities It is possible to identify current customer preferences, interests, and needs and use the accumulated data to improve the quality of service.
• UK Employment, Competition and Consumer Protection Laws For example, the transformation in the scope and content of business law has made it possible for both the employees and the employers to benefit from legal protection.
• Safety and Consumer Protection in US Airline Industry This paper reviews and discusses one safety recommendation by the NTSB and one consumer protection by the Department of Transportation, with the view to demonstrating how safety and consumer protection issues are entrenched within the […]
• Poison Politics: A Contentious History of Consumer Protection Against Dangerous Household Chemicals in the United States Lastly, the authors use the concepts of mass consumption and advertisement to demonstrate how the problem of misusing dangerous household chemicals became internalized in America.
• Consumer Protection: European and UK Regulation According to the EU, the objective of a good customer protection approach includes the ability to empower the consumer through the creation of a transparent market which can supply the consumer with a wide spectrum […]
• The Protection of Consumer Welfare The Household Preferences over the Two Goods with Similar Policy Implications on the Household Items In Terms Of the Utility and Level of Consumption of the Two Goods Convex indifference curves are extensively used in […]
• The Effectiveness of Alcohol Marketing, Regulation and How It Is Can Protect the Consumer From Fake Products The institution has the mandate to inspect places of work, and production factories, carry out surveys of goods in the market, test and approve the products in the market, and to persecute those found to […]
• The Consumer Financial Protection Agency Act of 2009 Implementation of the Consumer Financial Protection Agency Act will affect providers and consumers of financial products and services in some ways; it will lead to sweeping of consumer financial protection.
• Consumer Protection in the UAE The cost of UAE’s consumer behavior is therefore the high expectations on the government to deliver but ultimately, the benefits for such high consumer expectations would be better customer services, increased employment opportunities and the […]
• Consumer Protection with Regard to the Ethics Code The APA’s Ethical Principles of Psychologists and Code of Conduct is a set of rules and standard aimed at sustaining favorable relationships between a psychologist and a patient/client and introducing the basis for customer protection.
• 1987’s Consumer Protection Act and Its Impact
• Agencies Adopt Consumer Protection Rules for Insurance Sales
• Australian and New Zealand Competition and Consumer Protection Regimes
• Overview of Australian Consumer Protection Legislation
• Testimony Before the Subcommittee on Financial Institutions and Consumer Protection
• Banks and the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act
• Relations Between Behavioural Economics and Financial Consumer Protection
• Business and Consumer Protection in Islam
• Cable Television Consumer Protection and Competition Act
• Competition and Consumer Protection in the Romanian Banking Sector
• Considering Market-Based Instruments for Consumer Protection in Higher Education
• Consumerism: Consumer Protection and Competitive Advantage
• Dodd-Frank Wall Street Reform and Consumer Protection Act
• Consumer Protection and Consumerism of India
• Linking Consumer Protection and Contingent Charges
• Consumer Protection and Federal Trade Commission
• E-Commerce Audit Connection With the Consumer Protection
• Consumer Protection and Financial Innovation: A Few Basic Propositions
• The Link Between Consumer Protection and E-commerce
• Consumer Protection and Financial Literacy: Lessons From Nine Country Studies
• The Unintended Consequence of Doorstep Consumer Protection
• Consumer Protection and the Incentive to Become Informed
• Ethical Consumerism: Consumer Protection Law in India
• Consumer Protection and the Role of Advice in the Retail Financial Services Market
• Federal Consumer Protection Regulation: Disclosures and Beyond
• Consumer Protection From Unfair Trading Regulations
• Fixing Consumer Protection Laws So Borrowers Understand Their Payment Obligations
• Consumer Protection Laws and Regulations in Deposit and Loan Services
• Overview of Information Remedies for Consumer Protection
• Consumer Protection Through Prices: Energetic Sector in European Union Countries Analysis
• Jamaica Consumer Protection and Financial Literacy
• Consumer Protection Using the Legal Instrument of Infringement
• Linking Law, Consumer Protection Act, and Competition Law
• Customer Service and Consumer Protection at Richer Sounds
• The Relationships Between Online Commerce and Consumer Protection
• Customer Service Quality and Incomplete Information in Mobile Telecommunications
• Online Consumer Protection: Theories of Human Relativism
• Private Voluntary Health Insurance: Consumer Protection and Prudential Regulation
• Relief Under Consumer Protection Law and Policy
• Sales Talk, Cancellation Terms, and the Role of Consumer Protection
• Marketing Segmentation Questions
• Internet of Things Topics
• Mobile Technology Paper Topics
• Personal Identity Paper Topics
• Online Shopping Questions
• Public Relations Titles
• Social Media Marketing Topics
• Antitrust Law Research Topics
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2023, September 26). 68 Consumer Protection Essay Topic Ideas & Examples. https://ivypanda.com/essays/topic/consumer-protection-essay-topics/

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• Warranties and Service Contracts

Key Consumer Protection Laws

Be aware of scams, the bottom line.

• Fiscal Policy
• Government Spending & Debt

What Are Consumer Protection Laws?

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle.

Consumer protection laws are made to protect consumers from fraudulent business practices, defective products, and dangerous goods and services. They play an important role in a reliable market economy, helping to keep sellers honest, with no threat of unpleasant surprises.

Consumer protection laws in the U.S. comprise various federal and state laws, each of which governs a particular area of the economy. The government oversees consumer protection through the  Federal Trade Commission (FTC), while states use a variety of agencies and statutes to enforce consumer protection and sometimes expand on these laws. Not all jurisdictions protect consumers in the same way, with some being more pro-consumer than others.

Key Takeaways

• Consumer protection laws exist to prevent dangerous or unethical business practices, such as false advertising or faulty products.
• They play an important role in a reliable market economy, helping to keep sellers honest, with no threat of unpleasant surprises.
• For most consumer goods, the Federal Trade Commission (FTC) regulates warranties and service contracts.
• States use agencies and statutes to enforce consumer protection and may expand on federal laws, with some being more pro-consumer than others.
• In finance, consumer protection laws seek to prevent predatory lending, housing discrimination, securities fraud, privacy violations, and other unethical practices.

Consumer Warranties and Service Contracts

Whenever you buy merchandise, it comes with a warranty. This is a guarantee that it will serve the purpose it was purchased for—in other words: It will function.

Express and Implied Warranties 

The two basic types of warranty are express and implied. An express warranty is a promise from the seller, either written, oral, or expressed in an ad, promising that the item will perform its function for a specified period. Whether the item purchased is new or used, an express warranty is a guarantee that the item will work. However, not all items come with an express warranty.

The law automatically provides the second type of warranty, the implied warranty . Implied warranties are a part of all retail sales of new and used consumer goods. The retailer of an item implies that the item will work properly and be of average grade and quality, as long as it is used for the purpose it was sold. For example, a refrigerator will keep things cool as long as you are not trying to cool the entire room, and a blender will blend as long as you are not blending rocks.

Whenever you buy something, it's important to get warranty specifics in writing. Find out what the warranty covers. Does it include service fees if the item needs to be repaired? How long is the warranty? According to the FTC, an implied warranty can last as long as four years, but the actual time period can vary according to the state.

Dealing With Warranty Breach

If a warranty is breached, get the item replaced or repaired by the seller. If that doesn't work, try resolving the dispute through mediation. If that fails, you have the right to sue the manufacturer or seller.

Service contracts cannot be canceled after you've signed them, but according to the FTC, there is a cooling-off period in which, under certain circumstances, you might be able to void a contract. Contact the agency at FTC.gov for information on the right way to approach your particular situation.

To file a complaint about a seller or manufacturer, you can contact the FTC, Consumer Product Safety Commission , or call up your local prosecutor and ask for the consumer fraud division. If you were defrauded by a telephone solicitor or fell into a TV advertiser's trap, the Federal Communications Commission (FCC) is the place to turn for help.

How to Get a Free Credit Report

Under the Fair and Accurate Credit Transactions Act (FACTA) , you are entitled to a free copy of your credit report, at your request, once every 12 months. Financial institutions use the information contained in this report to determine the risk in lending to you. Consumers usually find out about this report only after there has been negative information reported (mishandled accounts, erroneous data, and so on). You can get your free credit report at annualcreditreport.com .

Federal Securities Act

One of the most important consumer protections in finance is the Securities Act of 1933, which was enacted during the Great Depression. The act strictly limits the sale of investment contracts (referred to as "securities") and requires issuers to disclose the details of their financing and business plans. The act also established the Securities and Exchange Commission (SEC), which enforces securities laws and punishes violations.

Fair Credit Reporting Act

The Fair Credit Reporting Act was passed in 1970 to regulate the collection of credit information, which is frequently used to determine mortgage and lending rates. The law limits who can access a consumer's credit history, and prohibits lenders from providing outdated or inaccurate information. The law also allows consumers to read their own credit reports, and to contest any inaccurate information.

The Consumer Financial Protection Bureau (CFPB) is responsible for protecting consumers when it comes to financial products and services.

Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act , usually shortened to the "Dodd-Frank Act," was a sweeping reform of U.S. financial regulations in the wake of the 2008 financial crisis.

The act stepped up oversight of banks and financial institutions, particularly those deemed to have been responsible for the Great Recession. It created the Financial Stability Oversight Council , with the ability to break up banks that were "too big to fail" or to increase their reserve requirements. It also established the CFPB, which regulates subprime mortgages and other predatory lending practices.

The Fair Housing Act

The Fair Housing Act protects buyers and renters of housing from being discriminated against by sellers, landlords, or financial institutions.

The Fair Debt Collection Practices Act (FDCPA)

This law limits the actions of third-party debt collectors when attempting to collect debts on behalf of another person or entity. It outlines when and how often a third-party debt collector can contact a debtor, with noncompliance by debt collectors resulting in lawsuits.

Section 5 of the Federal Trade Act

Section 5 of the Federal Trade Commission Act, sometimes just referred to as “Section 5,” demands that consumers be treated fairly and not deceived or put at risk by businesses. That includes:

• Causing substantial injury to a consumer
• A statement, omission, or practice likely to mislead consumers

Telephone Consumer’s Protection Act (TCPA)

This act ensures that consumers are not deceived and harassed by telemarketers. Thanks to the TCPA, a national do-not-call list was created.

The CAN-SPAM Act

The Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003 is a law that governs email communication. It establishes requirements for commercial messages, including not using false or misleading headers and subject lines, identifying messages as ads, and providing a postal address and information on how to opt out of being contacted in the future. Recipients have the right to stop being contacted, and penalties will be dished out to those who violate the act’s rules.

The Gramm-Leach-Bliley Act (GBLA)

The GBLA, among other things, requires all U.S. financial institutions to reveal in writing how they handle, share, and protect consumers’ information.

The Children’s Online Privacy Protection Act

This act governs what information websites directed to children under 13 years of age can collect from their visitors.

There are many other acts worth learning about that apply in certain situations, including the Home Owner Protection Act , the Electronic Funds Transfer Act , and the Fair Credit Billing Act .

Scam artists generally take advantage of whatever is happening at a particular point in time. In the wake of the housing bust of 2008, for example, there were a lot of phony foreclosure rescues that caused people to lose the equity in their houses to so-called rescuers.

There also has been an increase in scam attempts through automated phone calls. During the COVID-19 pandemic, the FTC began receiving reports of scammers posing as government officials, using the promise of unemployment benefits to extract Social Security numbers, private bank accounts, or other sensitive information.

Consumer protection laws exist to protect consumers and make us feel more confident about buying things; however, having this protection doesn't mean we shouldn't care about getting scammed. It's better for everyone if a complaint is not necessary.

Tips include using credit cards rather than debit cards for online shopping and closely reviewing every item on your monthly bills. Customers should also use a separate email account for their online shopping. This method helps avoid spam. Also, never respond to emails asking you to "confirm" recent transactions after you shop because they can be phishing scams.

What Are Online Consumer Protection Laws?

There are many such laws in the U.S. to shield consumers from fraud, faulty products, or data privacy invasion. One example is the Restore Online Shoppers' Confidence Act, or ROSCA, which prohibits the sale of user data by third-party payment processors. It also regulates "negative option" contracts, in which a consumer's inaction is interpreted as an intention to pay for a service. Although ROSCA does not prohibit negative options, it does enact certain requirements to ensure that the buyer has informed consent.

How Do Consumer Protection Laws Apply to Mortgage Lending?

Consumer protection laws safeguard borrowers against discrimination and predatory lending practices. The Fair Housing Act prohibits discrimination on the basis of race, sex, religion, national origin, and several other categories. This prohibition applies at every stage of the mortgage application process.

In addition, the Dodd-Frank Wall Street Reform Act prohibits several aspects of predatory lending, such as undisclosed mortgage terms and steering clients to those mortgage products that carry a higher commission.

What Are Consumer Protection Laws for Bankruptcy?

The Bankruptcy Abuse Prevention and Consumer Protection Act has several provisions to limit abuse of the bankruptcy system, including an income threshold for Chapter 7 bankruptcy for individuals. It also protects IRAs from bankruptcy liquidations, so a person who declares bankruptcy will not have to lose their retirement savings.

What Are Consumer Protection Laws That Protect Your Privacy?

The Fair Credit Reporting Act limits the use of consumers' credit history, such as bill payments and borrowing history. Also, the Financial Modernization Act of 1999 (also known as the Gramm-Leach-Bliley Act) establishes protections for personal financial information and requires banks to disclose clearly how private information will be used.

The modern economy is dependent on consumer protection laws. These rules help eliminate bad businesses as well as give consumers peace of mind and encourage them to spend more. Over the past few decades, the number of laws has continued to grow and evolve to reflect new technologies and business practices. And thanks to the Internet and other technologies, consumers are better informed of their rights than ever before.

Cornell Law School. " Consumer Protection Laws ."

Federal Trade Commission. " Warranties ."

Federal Trade Commission. " Fair Credit Reporting Act ."

U.S. Securities and Exchange Commission. " The Laws That Govern the Securities Industry ."

Cornell Law School. " Personal Information ."

U.S. Congress. " H.R.4173 - Dodd-Frank Wall Street Reform and Consumer Protection Act ."

U.S. Department of Justice. " The Fair Housing Act ."

Federal Trade Commission. " Fair Debt Collection Practices Act ."

Federal Reserve. “ Federal Trade Commission Act Section 5: Unfair or Deceptive Acts or Practices ,” Page 1.

Federal Communications Commission. “ Telephone Consumer Protection Act 47 U.S.C. § 227 .”

Federal Trade Commission. ” CAN-SPAM Act: A Compliance Guide for Business .”

Federal Trade Commission. " Gramm-Leach-Bliley Act .”

Federal Trade Commission. " Children's Online Privacy Protection Rule .”

U.S. Department of Justice. " Federal, State Partners Announce Multi-Agency Crackdown Targeting Foreclosure Rescue Scams, Loan Modification Fraud ."

Federal Trade Commission. " Coronavirus Scams: What the FTC Is Doing ."

U.S. Department of the Treasury. " Covid-19 Scams ."

Federal Trade Commission. " Restore Online Shoppers' Confidence Act ."

U.S. Department of Housing and Urban Development. " Housing Discrimination Under the Fair Housing Act ."

U.S. Congress. " S.256 - Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ."

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Consumer Protection Act, 2019

The Consumer Protection Act (CPA) is legislation in India that was enacted in 1986 to protect and promote the interests of consumers. The Act aims to provide consumers with effective and speedy redressal of their complaints against unfair trade practices and defective goods or services.

The Consumer Protection Act has been amended several times since its inception to keep pace with changing times and emerging issues.

The latest amendment to the Act, Consumer Protection Act, 2019 came into effect in July 2020, introducing several key changes to strengthen the Act and enhance consumer protection.

• 1 Background
• 2 Salient features of the Consumer Protection Act, 2019
• 3 Benefits to Consumer
• 5 Issues with the Act

1. In consumer movement in India as a ‘Social Force” was born out of the need to defend and advance consumer interests in the face of dishonest and unjust business practices, such as:

• Illegal Selling
• Adulteration of food and edible oils, etc.

2.  Individual consumers frequently found themselves in precarious situations. The seller would attempt to place all of the blame on the consumer whenever there was a complaint about a product or service that had been purchased.

3. The Monopolies and Restrictive Trade Practice(MRTP) Act of 1969 thus included a chapter on unfair trade practices. According to the MRTP Act, any Trader (Business Entity) or individual could file a complaint with the MRTP Commission regarding an unfair trade practice. MRTP Commission was restricted in its reach was headquartered in Delhi. Also, the complexity of complaints grew over time with companies filing complaints about other companies. (For instance- Colgate-Pepsodent competitive advertisements).

4. The consumers had to file lawsuits in a civil court under a variety of statutes. The grievance redressal procedure became a long drawn-out process. However, no organisation was in place to address consumer complaints.

5. The Consumer Protection Act of 1986 was passed as a single, comprehensive piece of law to safeguard the interests of consumers. The CPA was created with the intention of protecting consumers from dishonest business practices.

6. Indian markets have experienced a significant transformation over time. Due to new issues in consumer markets like deceptive advertising, telemarketing, multi-level, marketing, direct selling, and e-commerce, the Consumer Protection Act needed to be re-enacted. Consequently, the government passed the Consumer Protection Act, of 2019.

Salient features of the Consumer Protection Act, 2019

1. Definition of Consumer

•  A consumer is defined as a person who buys any goods or avails a service It excludes persons who buy a good/service for resale or for commercial purposes
• It covers transactions through all modes i.e offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

2. Consumer Rights

• The definition of a consumer right is the ‘right to have information about different aspects of a good or service such as its quality, quantity, potency, purity, price and standards.
• be protected against the marketing of goods and services which are hazardous to life and property
• be informed of the quality, quantity, potency, purity, standard and price of goods or services
• be assured of access to a variety of goods or services at competitive prices
• seek redressal against unfair or restrictive trade practices.

3. Consumer Protection Council

• The Bill has mandated the central government to establish Consumer Protection Councils known as Central Councils.
• It has also mandated the state government to establish Consumer Protection Councils in states and districts as State Councils and District Councils respectively.
• These are advisory bodies which will advise on the promotion and protection of consumer rights. It will be headed by the respective ministers of consumer affairs at the central and state levels. It will be headed by the District Collector at district levels

4. Central Consumer Protection Authority

• violation of consumer rights
• unfair trade practices
• misleading advertisements.
• It can also file cases before the Consumer Disputes Redressal Commission.
• It will have a separate investigation wing to investigate cases under the Act.
• It will also have the power to issue directions and penalties against false or misleading advertisements.
• The Authority can issue safety notices to alert consumers against dangerous or hazardous goods or services.

5. Consumer Dispute Redressal Commission

• The bill sets up a 3-tier consumer disputes redressal commissions/consumer courts at district, state and national levels. Complaints to consumer courts can be filed electronically and from the place where the complainant resides.
• A consumer can file a complaint with CDRCs in relation to: (i) unfair trade practices; (ii) defective goods or services; (iii) overcharging or deceptive charging; and (iv) Selling of goods or services which may be hazardous to life and safety.
• Complaints against unfair contracts can be made only at the centre and state consumer disputes redressal commissions.
• The final appeal against the order of the national commission shall be made in the Supreme Court.

6. Mediation

• The bill provides for an Alternate Dispute Resolution Mechanism through mediation.
• A grievance can be referred for mediation by the Consumer Forum if it is satisfied that the scope for early settlement by mediation exists.

7. Product Liability

• A manufacturer/service provider/product seller will be held responsible to provide compensation for any damage caused by a defective product or deficient services.
•  Manufacturing defect
• Design defect
• Deviation from manufacturing specifications
• Not conforming to express warranty
• Lack of adequate instruction for correct use
• Faulty services.

8. Penalties

• A penalty can be imposed by the CCPA on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.
• In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.

Benefits to Consumer

1. Seek justice:

• It provides additional forums to the consumer for seeking justice. For instance, the Act establishes Central Consumer Protection Authority (CCPA) to impose penalties for false and misleading advertisements.
• The CCPA can also prohibit the endorser of misleading ads from endorsing for a one-year period.
• The Act also provides protection against unfair contracts.

2. Penalise adulteration

• The Central Consumer Protection Authority (CCPA) is also empowered to impose penalties for manufacturing, storing or selling adulterated products.

3. Ensure product liability

• For the first time product liability has been included in the framework of consumer protection.
• The inclusion of product liability provisions will deter manufacturers and service providers from delivering defective goods or deficient services.

4. Timely disposal of cases: The Act provides scope for mediation. It will enable easy disposal of cases and reduce hassle for the consumers.

5. Increased ambit of protection: It covers the new emerging sectors such as E-commerce within its ambit.

6. Flexibility to consumers

• Previously, the complaint could be filed by the consumer only at the place of purchase or at the place where the seller has a registered office.
• The new law empowers the consumer to file a complaint at the place of his residence/work.
• The new Act also provides scope to the parties involved in a consumer case to seek hearing through video conferencing.

7. Fixed time period:

• It sets a time limit of 21 days for the consumer dispute redressal commission to decide on admitting/rejecting a complaint.
• If it doesn’t decide within the time period, the case would be considered as admitted.

Issues with the Act

1. The Act does not include ‘healthcare ’ as one of the services.

2. As per the Act, CCPA would be the central regulator for consumer issues. But other sectoral regulators also exist such as TRAI in the telecom sector and IRDAI in the insurance sector. It may lead to overlapping jurisdiction between the regulators.

3. The consumer has a multiple number of options to register complaints such as consumer courts, councils, sector regulators etc. It may end up confusing the consumers.

4. The commissions lack the staff to handle the increasing workload. For instance, 362 posts of the consumer grievance redressal commissions are lying vacant in 596 districts. The new provision in the Act, such as 21-day deadline to admit complaints will further add to the workload.

5. The Act does not specify the minimum qualifications for the members and the President of the CDRC. It rather delegates this power to the Central Government. If the Commission are made to have only non-judicial members, it would lead to a violation of the Separation of Powers Doctrine. Prescribing these qualifications through Rules would also lead to an excessive delegation of legislative powers.

6. The 1986 Act established selection committees(chaired by a judicial member) to appoint the members of the commission. But the new Act leaves it to the Central government to decide on the method of appointment. This may hamper the independent functioning of these commissions.

7. A number of recommendations of the Parliamentary standing committee have remained unaddressed, such as the right to terminate a contract based on the poor quality of goods supplied/services rendered has not been included under the list of rights.

8. Inclusion of e-commerce within the ambit of the Act may impact the sector negatively. For example, it may lead to a reduction in FDI, may reduce India’s bargaining power in multilateral bodies etc as the Act will result in increased regulation of the sector.

9. Many consider holding the endorsers liable for unfair business practices as draconian because the endorsers cannot be held responsible for running the company.

Consumer Protection: Government Initiatives 1. National Consumer Helpline (NCH) : The toll-free NCH number is 1800-11-4000. It provides guidance to consumers regarding consumer grievances. 2. INGRAM: Integrated Grievance Redress Mechanism (INGRAM) portal helps in creating awareness among consumers about their rights and responsibilities. Consumers can also provide their grievances through it. 3. State Consumer Helplines: State Consumer Helplines have been set up by State Governments. It aims to encourage Alternate Disputes Redressal mechanisms at the State level. 4. Smart Consumer Application: The Government has launched a mobile application “Smart Consumer”to enable the consumer to scan the barcode of the product and get all the details of the product. 5. GAMA: The Government has launched a portal called “Grievances Against Misleading Advertisements (GAMA)”.It is a dedicated portal that helps consumers register their grievances against misleading advertisements. 6. Online Dispute Resolution: An Online Consumer Mediation Centre has been established at the National Law School of India University, Bengaluru. It aims to provide a state-of-the-art infrastructure to resolve consumer disputes both through physical as well as online mediation through its platform. 7. JaagoGrahakJaago: Jago Grahak Jago is a consumer awareness programme from the Ministry of Consumer Affairs, and Public Distribution, Government of India

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Home » Articles » Analysis and Key Highlights of Consumer Protection Act 2019

Analysis and Key Highlights of Consumer Protection Act 2019

Reading Time - 8 minutes

by B&B Associates | Aug 10, 2020 | 0 comments

The Consumer Protection Bill, 2019 was proposed in the Parliament by Mr. Ram Vilas Paswan, the Minister of Consumer Affairs, Food and Public Distribution. The 2019 bill was enacted by the Lok Sabha on 30th July 2019 and subsequently by the Rajya Sabha on 6th August 2019. The bill was passed in order to amend the 1986 Act i.e. Consumer Protection Act, 1986 . On 9th August 2019, the President of India gave his assent to the Consumer Protection Act, 2019 (‘2019 Act’). The 2019 Act was adopted with the intention of ensuring effective and productive regulation and settlement of customer conflicts and relevant matters. In general, the Act’s intent is “to provide for the 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”.

Instead of bringing an amendment to the 1986 Act, the government introduced a new law itself to offer better security for customers in comparison to existing approaches, taking into account the growing e-commerce sector and emerging ways of distributing products and services such as online sales, teleshopping, direct selling, and multi-level marketing.

This article aims to provide insight into new provisions, analyze the nature, extent, and impact of new provisions and include a comparative overview of some of the main provisions of CPA 2019 vis-à – vis CPA 1986.

Flaws in the 1986 Act

The Consumer Protection Act of 1986 consisted of several major procedural defects which are proposed to be resolved in by the 2019 Law. In order to further boost public protection, the 2019 Act introduces a series of steps and tightens current laws contained in the 1986 Act. The Consumer Protection Act 2019 brings about fundamental changes to the existing 1986 Act; however, it also envisages a Central Consumer Protection Authority and vests power and control in this authority without proposing adequate administrative safeguards.

Salient Features of Consumer Protection Act 2019

Definition of consumer.

The concept of ‘consumer’ has been generalized to involve individuals engaged in offline or online purchases through electronic means or through teleshopping or direct sales or multi-level marketing. A consumer is defined as a person who buys any good for consideration or makes use of a service. It does not involve any individual who obtains a good for commercial purposes for resale or a product or service. This includes purchases across all forms, including offline, and online, through electronic media, teleshopping, multi-level marketing, or direct sales. As per the act; a person is called a consumer who takes advantage of the services and purchases any good for self-use. It does not include anyone obtaining goods or availing services without consideration.

Section 2 (7) of the Act, defines Consumer as follows:

• 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
• 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 the 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.

‘Telecom’ has been added to the definition of ‘services’ to bring telecom service providers within the purview of the 2019 Act. But surprisingly, such inclusion has not been worded as ‘telecommunication service’ defined under the Telecom Regulatory Authority of India Act, which would have included internet, cellular, and data services.

Rights of consumers

Six consumer rights have been defined in the Act, including the right to:

• To be secured from the selling of life and property-threatening goods, products or services;
• To be notified, as required, of nature, quantity, efficacy, consistency, value, and price of goods, products or services, so as to protect the customer from unfair trading practices;
• To be assured exposure to a range of commodities, products or services at fair rates whenever possible;
• To be recognized and to be assured that the concerns of customers would be provided due consideration at sufficient forum;
• And pursue relief from unfair commercial practices or unreasonable trading policies or the unscrupulous exploitation of consumers; and
• To consumer awareness

Central Consumer Protection Authority

The CCPA shall conduct the following duties which include:

• investigating and pursuing infringements of consumer rights at the required forum;
• issuing orders for recall or removal of dangerous products, a refund of the price charged and discontinuation of deceptive trade practices as specified in the Bill;
• issuing guidance to the individual concerned;
• imposing penalties, and;
• issuing safety notices to consumers against unsafe goods and services.

E-commerce was described as the buying or selling of goods or services through the internet or electronic network, including digital items. The central government has been allowed to take steps and draft guidelines to discourage discriminatory e-commerce activities. In the case of goods being offered by internet portals, the availability of services requires to be ascertained without paying any fees separately. Whether off-shore e-commerce would also be covered and eventual enforcement of CPA 2019 qua these entities is not clear.

The new Act empowers the central government to make laws, to take appropriate steps to discourage unfair trading practices and to protect customers’ privileges and interests.

Grounds to File Complaints

Although the CPA 1986 regulations specified six main grounds for filing complaints, the CPA 2019 expanded the count to seven, and also significantly altered one of the current grounds for filing complaints as provided for in Section 2(c)(i) of CPA 1986. These include:

• Introduction of Unfair Contracts & expansion of Unfair Trade Practices – Under previous law, a complaint should only be filed where any dealer or service supplier has adopted an unreasonable trading practice or a discriminatory trading practice. Now “unfair contract” has also been added which further expands the ground for complaints and allows consumers to challenge unfair, unilateral, and unreasonable contracts.
• failure or non-issuance of a bill or a cash memo;
• refusal to take back or withdraw defective goods or withdrawal or discontinuance of deficient services or refusal to refund the consideration amount paid within the period as stipulated in the bill or cash memo or receipt or in the absence of such stipulation, refusal to withdraw or refund goods or services within thirty (30) days;
• disclosure of consumer’s personal information to any other person unless such disclosure is made in accordance with the provisions of any law for the time being in force or in the public interest.

Product Liability

This is major and important incorporation of the Act. The New Act stipulates stringent legal requirements on traders. A product manufacturer, product service provider, and product retailer may be held responsible for any harm done by a faulty product made by the supplier, serviced by the service provider, or sold by the product seller, as the case may be. The extent of their liability is collectively specified under section 84, section 85 and section 86 of the New Act. The chapter, dealing with product liability, applies to any claim for compensation under a complainant’s product liability action for any harm caused by a defective product manufactured by a product manufacturer or served by a product service provider or sold by a product seller.

Product liability means a product manufacturer, service provider, or seller’s obligation for compensating a customer for any damage or accident incurred by a damaged item or defective service. To claim liability, a customer must show all of the fault or malfunction factors, as laid forth to the Act.

Section 2 (34) of the Act, defines “product liability” as 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 a deficiency in services relating thereto. Whereas section 2 (35) of the Act defines “product liability action” as 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.

Consumer Disputes Redressal Commission

The New Act empowers the respective governments to establish a National Commission for the Redress of Consumer Disputes, a State Commission for the Redress of Consumer Disputes, and a District Consumer Disputes Redressal Commission. The role of these commissions formed under the New Act is equivalent to that of the commissions set up under the Old Act. They have the authority to handle concerns from customers about certain products or services. The New Act also grants the SCDRC and the NCDRC, an authority to consider grievances about unfair contracts.

A consumer can file a complaint with CDRCs in relation to:

• unfair or restrictive trade practices;
• defective goods or services;
• overcharging or deceptive charging;
• the offering of goods or services for sale which may be hazardous to life and safety.

Nevertheless, the pecuniary authority, i.e. the monetary value of the grievances which can be pursued has been considerably expanded for each of these commissions to minimize the pressure on the State and National Commissions by allowing customers to approach the District Commission for grievances worth up to Rupees 1 Crore.

The 2019 Act provides the right of judicial review, which will require Consumer Commissions to reconsider their decisions, thus reducing the pressure imposed by chosen petitions to rectify obvious irregularities in front of the record. In sharp contrast to the 1986 Act, it is now necessary to make appeals from the State Commission to the National Commission even if they raise serious legal issues. The National Commission’s challenges to the Supreme Court can only be made against allegations that arise within the National Commission. In addition, to reinforce the noose on the early submission of appeals, the timeframe for preferred appeals has also now been rendered stricter. Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC. Appeals from the State CDRC will be heard by the National CDRC. The final appeal will lie before the Supreme Court.

Penalties for false or misleading advertisements

CCPA also is allowed to take measures against inaccurate or deceptive advertising. For each subsequent breach, CCPA will levy a penalty of up to INR1 million and up to INR 5 million. It is important to note that such penalties can be imposed on endorsers too, thereby bringing actors/actresses in the scope of penalty. Nevertheless, if he/she specifies that they conducted due diligence to validate the veracity of the statements before accepting the same, the endorser will be protected from any liability. Therefore, before signing up for any ads, endorsers/actors/celebrities would always have to perform a comprehensive due diligence/research.

The CPA 2019 also provides for the settlement of disputes by way of mediation in case there is a likelihood of compromise at the acceptance point of the complaint or at some further date, provided the parties consent. For accelerated settlement, a mediation cell would be attached to each city, state, and national commission and its regional benches.

Comparative Analysis of 1986 Act and 2019 Act

While judicial pronouncements have been issued bringing the purchases made through online methods within the consumer ambit. The 2019 Act specifically protects customers from purchasing products or services digitally. The act has since made endorsers responsible for fraudulent or deceptive ads in relation to the incorporation of internet sales. In the 1986 Act, it was just the suppliers and the service providers that were liable for this. Under section 21(2) of the 2019 Act, even after obtaining a notice from the customer, the commission may impose a fine of fifty lakhs if the endorser continues to advertise false information about the products.

Under the act, disclosure of personal information given during the transaction is also considered an offense. The Act also proposes product liability provision whereby the manufacturer must not only compensate for the defective goods but must also compensate for any loss or injury caused to the complainant by the defect. For example, if a bike is sold to you and the break is loose, resulting in an accident, the manufacturer must compensate for the defect and also compensate you for the accident that you faced due to the defect.

The Act also proposes the establishment of an independent regulator, the Central Authority for Consumer Protection (CCPA). Although this body does not respond to customer complaints or resolve lawsuits, it will take regulatory action to counter unfair trading practices, etc.

Consumer Protection Act 2019 has incorporated some improvements to the previous CPA 1986. CPA 2019 broadened the reach of India’s consumer protection regime. The amendments introduced vide CPA 2019 tend to further motivate customers by exploiting liabilities not just on their peers, i.e., retailers, suppliers, service providers, but also on certain endorsers of these items. It also attempts to address issues that CPA 1986 did not fully address, such as consumer interests as a class, etc. The new Act focuses on topics such as mediation and e-commerce that were not open to the world in 1986. It was also necessary to amend the act as digitalization transformed the manner in which a customer performs electronic purchases and shopping mode has moved from offline to online. The 2019 Act definitely marks a significant step in improving, expanding, and strengthening consumer protection.

CPA 2019 has aimed to simplify and fasten the customer dispute resolution process by growing the commissions’ pecuniary authority, adding mediation cells, raising commission members, imposing higher fines, etc.

This article was written and submitted by Shashi Anand Choudhary . Mr. Shashi is a corporate attorney based in Pune, Maharashtra.

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Consumer Rights and Protection

Last updated on March 5, 2024 by ClearIAS Team

Consumer rights and protection in India are safeguarded through various laws and regulations aimed at ensuring fair trade practices, preventing unfair business activities, and protecting the rights and interests of consumers. Read here to learn more.

Consumer rights and protection refer to the rights and measures in place to ensure the well-being, safety, and fair treatment of consumers in the marketplace.

These rights are designed to safeguard consumers from unfair business practices, provide them with accurate information, and empower them to make informed choices.

The need for consumer rights and protection arises from various factors, and these measures contribute to a balanced and ethical marketplace.

Table of Contents

Consumer Rights

• Right to Safety: Consumers have the right to be protected against goods and services that may be hazardous to their health or safety.
• Right to Information: Consumers have the right to receive accurate and complete information about products and services, enabling them to make informed choices.
• Right to Choose: Consumers have the right to choose from a variety of goods and services at competitive prices.
• Right to be Heard: Consumers have the right to be heard and to have their grievances addressed by businesses and regulatory authorities.
• Right to Seek redressal: This means the right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes the right to fair settlement of the genuine grievances of the consumer.
• Right to Consumer Education: This means the right to acquire the knowledge and skill to be an informed consumer throughout life. Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation. They should know their rights and must exercise them. Only then real consumer protection can be achieved with success.

Consumer responsibilities

• Be Critically Aware: The responsibility to be more alert and to question more – about prices, about quantity and quality of goods bought and services used.
• Be Involved: The responsibility to be assertive – to ensure that you get a fair deal as a consumer. Remember, if you are passive, you are likely to be exploited.
• Be Organized: The responsibility to join hands and raise voices as consumers; to fight in a collective and to develop the strength and influence to promote and protect consumer interest.
• Practice Sustainable Consumption: The responsibility to be aware of the impact of your consumption on other citizens, especially the disadvantaged or powerless groups; and to consume based on needs – not wants.
• Be Responsible to the Environment: The responsibility to be aware and to understand the environmental consequences of our consumption. We should recognize our individual and social responsibility to conserve natural resources and protect the earth for future generations.

Need for Consumer Rights and Protection

• Information Asymmetry: Consumers often lack the same level of information as sellers. This asymmetry can lead to exploitation, and consumer rights ensure access to accurate and transparent information.
• Unfair Trade Practices: Some businesses engage in unfair practices, such as false advertising or misrepresentation. Consumer protection laws are necessary to prevent such practices and hold businesses accountable.
• Product Safety : The safety of products is crucial for consumer well-being. Consumer rights ensure that products meet safety standards, and consumers have the right to seek compensation for harm caused by defective products.
• Redressal Mechanism: Disputes between consumers and businesses are inevitable. Consumer protection laws establish forums and mechanisms for the resolution of these disputes, ensuring fair and efficient redressal.
• Market Competition: Consumer rights contribute to a competitive marketplace by encouraging fair business practices. When consumers are empowered to make choices based on accurate information, businesses are incentivized to improve their products and services.
• Vulnerable Consumers: Certain groups of consumers, such as the elderly, disabled, or economically disadvantaged, may be more vulnerable to exploitation. Consumer protection laws aim to safeguard the interests of these vulnerable groups.
• Globalization and E-commerce: With the rise of globalization and e-commerce, consumers are exposed to a wide range of products and services. Consumer rights become crucial in ensuring the safety and fairness of transactions conducted online and across borders.
• Ethical Business Practices: Consumer rights promote ethical business practices, emphasizing fairness, transparency, and honesty in dealings with consumers.

Legislative framework for consumer rights and protection in India

India celebrates National Consumer Rights Day on 24 th  December every year to raise awareness about consumer rights and responsibilities. The day commemorates the day when the Consumer Protection Act 1986 received the President’s assent on December 24, 1986.

Consumer Protection Act, 2019:

• The Consumer Protection Act, of 2019 replaced the earlier Consumer Protection Act, of 1986, and it came into effect on July 20, 2020.
• The new act introduces several provisions to enhance consumer rights and strengthen the mechanism for consumer protection.
• It establishes the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce consumer rights.

Consumer Forums:

• Consumer forums, also known as Consumer Disputes Redressal Commissions, are established at the district, state, and national levels to adjudicate consumer disputes.
• Consumers can file complaints at the appropriate forum based on the value of the claim.

Consumer Protection (E-Commerce) Rules, 2020

• The new act addresses issues related to e-commerce and provides for the liability of e-commerce entities.
• It regulates direct selling, prevents unfair trade practices, and ensures transparency in e-commerce transactions.

Global standards

United Nations Guidelines for Consumer Protection:

• The United Nations Guidelines for Consumer Protection (UNGCP) are “ a valuable set of principles for setting out the main characteristics of effective consumer protection legislation, enforcement institutions and redress systems and for assisting interested Member States in formulating and enforcing domestic and regional laws, rules and regulations that are suitable to their own economic and social and environmental circumstances, as well as promoting international enforcement cooperation among Member States and encouraging the sharing of experiences in consumer protection. “

International Organization for Standardization (ISO):

• ISO develops and publishes international standards, including those related to consumer protection.
• ISO 9001, for example, addresses quality management systems and includes considerations for customer satisfaction and meeting customer needs.

Organization for Economic Co-operation and Development (OECD):

• The OECD has guidelines and recommendations on consumer protection that member countries are encouraged to adopt.
• The OECD Principles on Consumer Protection in E-commerce guide ensuring fair business practices in online transactions.

United Nations Conference on Trade and Development (UNCTAD):

• UNCTAD works on issues related to trade, development, and consumer protection.
• UNCTAD’s Consumer Protection Toolkit offers practical guidance for countries seeking to enhance their consumer protection policies.

World Trade Organization (WTO):

• While the WTO primarily focuses on trade-related issues, it recognizes the importance of consumer protection in international trade.
• The WTO agreements acknowledge the need to balance trade interests with consumer protection and public health.

International Consumer Protection and Enforcement Network (ICPEN):

• ICPEN is a network of consumer protection authorities from various countries.
• It facilitates cooperation and information exchange among consumer protection agencies globally.

In essence, consumer rights and protection are essential for creating a fair, transparent, and responsible marketplace where consumers can confidently make choices, and businesses operate ethically. These measures contribute to a healthier economic ecosystem by fostering trust between consumers and businesses.

Consumer rights and protection in India are evolving to address contemporary challenges, especially in the context of e-commerce and digital transactions. The emphasis on product liability and the establishment of the CCPA under the new Consumer Protection Act, of 2019, reflects a commitment to strengthening consumer rights and redressal mechanisms. Consumer awareness and education continue to play a crucial role in empowering consumers to make informed choices and exercise their rights effectively.

Global standards for consumer protection are dynamic and responsive to emerging challenges, including those posed by technological advancements and changes in consumer behavior. Cooperation among nations, international organizations, and consumer advocacy groups is vital to maintaining and enhancing these standards in an interconnected and rapidly evolving global marketplace.

Read: D igital monopolies by big techs

-Article by Swathi Satish

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• Intro and Importance of Consumer Protection

Gone are the days of “Caveat Emptor” now it is “Consumer is King”. There are no dearth of sellers who wish to fulfil all of the consumer’s demands, and cannot afford to alienate consumers with bad service or products. Consumers have tools at their disposal such as consumer complaints, courts, forums etc. Let us take a look at consumer protection in India.

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Introduction to consumer protection.

A consumer is the one who assumes to be treated like a King as they bring business to the seller. Previously “consumer was asked to beware” but these days fingers have been pointed to seller “let seller be beware” as due to policies introduced, government laws, consumer protection, NGO and the increased competition in the market.

Consumer Protection is a term given to a practice wherein we need to protect the consumer from the unfair practice, educating them about their rights and responsibilities and also redressing their grievances.

Browse more Topics under Consumer Protection

• Consumer Protection Act
• Consumer Rights/Responsibilities
• Legal Protection to Consumers
• Consumer Organisations and NGOs

Why do Consumers need to be Protected?

There are n number of products in the market which are injurious to the health of the consumer, adulteration, false weights, monopoly and unfair trade practice are some of the issues that need to be tackled and are to be addressed to protect the consumer against it.

How do we Protect the Consumer?

• The consumer should be educated on their rights and responsibilities
• Their grievances should be redressed
• The judicial body requires to provide them with the justice.

Importance of Consumer Protection

I. importance from consumer point of view  .

• Consumer Ignorance : Consumer when seeing it from their point of view then we have gathered some aspects to it. Of which, Consumer Ignorance needs to be taken care of they should know how to exercise their rights and how to seek reliefs.
• Unorganised Consumer : We need a Consumer Organisation which can unify the consumers and help them seek relief with their consumer issues.
• Widespread Exploitation of Consumer : Consumer is been exploited through the ways of adulteration, false practice, fake weights, incomplete information on packaged products, Misleading Advertisements . For instance, there are many products that claim to make you fair or reduce your weight but when you use the products it does not provide what is promised.

II. Importance from Business Point of View

Do business really need to consider consumer protection, is there a way which can benefit them as well? Let us have a look at some of the points which provide us with some insight :

• Long-Term Interest of Business : If one wants to increase their customer base in long-term then they need to make a satisfied customer. A satisfied customer with their word of mouth would make more customer and increase the consumer base.
• Business uses society’s Resources : Business should not hamper consumer confidence as most of the resources taken from the society. In turn, business keeps in mind public interest and provide products accordingly.
• Social Responsibility : Business have responsibilities towards the consumer, government bodies and society and they should work in a way which should be beneficial to them and the business as in return it will flourish their business.
• Moral Justice : Business has a moral duty to the society and consumer and they should take steps which should not hamper the society or consumer. They should prevent any sort of exploitation like adulteration, unfair practices, defective product, fair price and weight.
• Government Intervention : To avoid the situation of government intervention in the business which could be a hectic task. For that business should design their trade practice in such a way which would be in the interest of the consumer.

Consumer Complaints

Consumer Complaints are the first step of redressal that the customer takes in the process of consumer protection. Hence this is the most important step that the businesses need to handle with extreme care and dexterity. And in the times of the internet consumer complaints and feedback has more power than ever

Consumer complaints can actually help an organization improve their products and services. It is a great form of feedback. It gives you a very fair measure of customer satisfaction. And if consumer complaints are dealt with swiftly it actually helps with customer retention and even improves the goodwill of your company.

So instead of treating consumer complaints as a hindrance or a headache, organizations can treat it as a way to bring about improvement and grow their consumer base.

Solved Question for You

Question: What are the ways and means of Consumer Protection?

Ans: The various ways and means of Consumer Protection are:

• Self Regulation
• Consumer Organisations
• Consumer Awareness
• Business Associations

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Consumer Protection

• Consumer Awareness, Consumer Rights and Responsibilities

2 responses to “Consumer Organisations and NGOs”

from -mukesh m chandiramani,7a-30,navjivan society,lamington road,mumbai-400008 i had booked the appoinment for covid-19 test for mr mukesh mohan chandiramani(age 48) and rekha mohan chandiramani(age 73) with KlinicApp Network Lab – Krsnaa Diagnostics dated 30-07-2020.but the government of maharashtra did not allow KlinicApp Network Lab – Krsnaa Diagnostics to enter navjivan society,lamington road,mumbai-400008.the government of maharashtra blocked my testing by KlinicApp Network Lab – Krsnaa Diagnostics,inspite of repeated calls to 022-23835004 bmc d ward office i was not allowed to be tested for covid-19.i have sent emails to hon chief mininster of maharashtra and hon prime minister of india dated 30-07-2020 and 31-07-2020 but till date i have not got any reply. i would like the government of india to pay me compensation of 5 lacs for blocking my covid -19 test dated 30-07-2020

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Consumer Protection Act Essay Example

• Pages: 8 (2053 words)
• Published: September 3, 2016
• Type: Case Study

The Consumer Protection Act 1999 (CPA) is an act with the objective to protect the consumers’ right which came into force in Malaysia on 15th November 1999. Basically, the provisions of this act cover areas not covered by other existing laws. This act provides simple and inexpensive redressal to the consumer’s grievances and relief of a specific nature for example from ‘false’, ‘misleading’ or ‘deceptive’ as to conduct, representation or practice and that they shall not be practiced by both parties (consumer and seller) whether it falls under sales, services or land.

The laws that are designed to protect the consumers’ rights can be classified into three categories which are firstly, laws to ensure that the consumers are not deprived of their basic necessities, secondly, laws to ensure physical safety of consumers and lastly, laws t

o protect the economic interest of the consumers. Besides that, under CPA, an aggrieved consumer may refer to any dispute or claim of less than RM 10,000 to the established Consumer Redressal Tribunal.

Background of Study

The Consumer Protection Act 1999 (CPA) is needed because if no such contract exists then there would be many situations where the sellers would abuse or take advantage of their consumers. Basically, this Act shall apply in respect to all goods and services that are offered or supplied to one or more consumers in trade in order to protect the consumers’ rights. However, they are a few situations where this Act would not be applied. It is not applied:

1) To securities as defined in the Securities Industry Act 1983;

2) To future contracts as defined in

the Futures Industry Act 1993;

3) To contracts made before the date on which this Act comes into operation;

4) In relation to land or interests in land except as may be expressly provided in this Act;

5) To services provided by professionals who are regulated by any written law;

6) To healthcare services provided or to be provided by healthcare professionals or healthcare properties;

7) To any trade transactions effected by electronic means unless otherwise provided by the Minister.

As mentioned above, CPA came into force on 15th November 1999. After the date, four amendments have been made in the year of 2002, 2003, 2007 and lastly 2010. They are:

• Amendment 2002: Amendment of Subsection 17 (1) listing the types of Future Services Contract gazette by Ministry for the purpose of the section.
• Amendment 2003: increasing the TTPM’s membership to include members from judicial and legal services as well as increasing the TTPM’s award from RM 10,000 to RM 25,000.
• Amendment 2007: widening the scope to include the electronic commerce transactions.
• Amendment 2010: aims to make expand existing provisions in ensuring the Act remains relevant to the changes in current trade practices as well as providing more protection to the consumers. This amendment introduces two new parts:

1) Part IIIA: Unfair Contract Terms which defines the provisions to protect the consumers from unfair terms in a standard form contract.

2) Part XIIA: Committee on Advertisement which provides power to the Minister to establish a committee, to monitor and take necessary action against the supplier that produces false and

misleading advertisement.

Part II of the Act describes the situations where how the consumers’ rights might be abused. They are misleading and deceptive conduct, false representation and unfair practice. In misleading and deceptive conduct, it refers to both goods and services. As an example, it is mentioned that no person shall engage in conduct that, in relation to goods, is misleading or deceive, the public as to the nature, manufacturing process, characteristics, suitability for a purpose, quantity or goods. After misleading and deceptive conduct, there are others under Part II of the Act and they are:

• false or misleading representation;
• false representation and other misleading conduct in relation to land;
• misleading indication as to price;
• bait advertising;
• gift, prizes and free offers.

In Part III on the other hand describes the safety of goods and services. This part describes the safety standards, compliance with safety standards, general safety required for goods, the defence, prohibition against unsafe goods and prohibition of importation of goods and services. Part IV talks about the offences, defences and remedies in relation to the previous parts, Part II and Part III. Sale of Goods Act 1957 (SOGA), an Act which relates to the sale of goods in Malaysia, somehow parts of them relates to CPA. This is so because in Part V of the CPA reproduces and modifies Section 14 to 17 of the SOGA 1957 (Revised 1989) to suit the particular circumstances of goods supplied to customers.

Due to that, these sections no longer apply to goods supplied to a consumer although non-consumer transactions remain unaffected. In

the Part V of the CPA, the implied terms are an attempt to protect consumers. It also implied terms into a contract of sale of goods but significantly, it does away with the classification of terms into conditions and warranties. When there is a breach of contract, under CPA, it is unnecessary to decide whether it is a breach of condition or warranty. Instead of classifying, guarantee is introduced with appropriate remedy to it because it simplifies the law for consumers.

1) Toys Product Safety

The Malaysian Association of Standard Users is on the mailing list of various consumer product safety enforcement and also regulatory agencies around the world including the United States, Canada, Australia, Japan and Korea but unfortunately, related government here in Malaysia do not provide similar facilities as compared to other countries. While consumers in other countries are always constantly updated of the unsafe products, no similar actions are taken in Malaysia to protect consumers from unsafe products. Most of the products which are deemed unsafe in those countries are not controlled directly under any laws or acts in Malaysia. The Malaysian Association of Standard Users has been toying with toy safety regulation since 2002.

Apparently there was a toy safety crisis backdrop in 2007 and the Malaysian Association of Standard Users and the Department of Standards Malaysia has pressured the Ministry of Domestic Trade and Consumer Affairs to activate some regulations regarding toy safety. After much pressure, the Association were then told by the Ministry of Domestic Trade and Consumer Affairs that regulations will be implemented end of March 2009 so that means they took 2

years to make regulations. But of course, they were disappointed because two years is a long time because of the urgency and the importance of this matter. Even today, the Malaysian Association of Standard Users still receives emails from other countries regarding the fact that they have recalled more than 180,000 toys due to possible choking hazards to children and another case whereby the US has recalled about 120,000 flip flops due to high level of lead.

The thing is maybe these same exact models are not sold here in Malaysia but they are sure that there are similar types of products sold in Malaysia so why they have not heard any complaints and is there any one testing these products? The Ministry of Domestic Trade and Consumer Affairs has overall on the CPA. Under Section 19 of the CPA states that the Minister has the power to make any safety standards mandatory and under Section 23 on the other hand, the Minister can recall or stop any sales of unsafe products. The problem is since 1999, there has not been any standards that were made mandatory and that no product recalls has been made at all.

Recommendation The Ministry of Domestic Trade and Consumer

Affairs must enforce these regulations and laws because consumers have rights to the safety of products bought as mentioned in Section 19 (2) of the CPA whereby it says the safety standard in relation to goods may relate to any or all of the following matters:

(a) the performance, composition, contents, manufacture, processing, design, production, design, construction, finish or packing of the goods;

(b) testing

of the goods during or after manufacture or processing;

(c) the form and content of markings, warnings and instructions to accompany the goods.

Product safety especially regarding toys’ safety is very important because toys are usually aimed at children and because children have no clear or mature judgement on what is right and what is wrong, they do not know whether their toys are safe to play with or not and this is where CPA comes into act. Due to the issue above whereby the Malaysian Association of Standard Users has mentioned that there has been no recall case of toy products whatsoever and this somehow does not in line with other countries. Maybe it is because the products manufactured are perfect with no defects or maybe it is because there is no testing on these toys!

The Ministry of Domestic Trade and Consumer Affairs must enforce testing on all the products manufactured, because if firms found to be guilty to not abide to the regulations, consumers can file reports and claims if there is something wrong with the products. I think all firms should and must carry out tests regularly because if consumers find out that something is wrong or that the toys that they buy for their children is dangerous, the aggrieved consumer may refer to any dispute or claim of less than RM 10,000 to the established Consumer Redressal Tribunal.

2) Fooled by Credit Card “Promotion” A credit card fraud victim wrote on the Star Newspaper online of how he was fooled into applying for a new credit card during a promotion at a petrol station. The reason

why he applied for a credit card at the most unlikely place, a petrol station is because he believes that the people who approached were genuine credit card promoters. This is because lately, many banks and card issuers are aggressively holding credit card promotion campaigns outside their premises. He was made to understand that such campaigns are permissible because banks and card issuers are allowed to outsource especially promoting and marketing their credit cards as long as they adhere to certain criteria.

Unfortunately, no such safeguard has been put in place as to ensure that consumers do not fall into these scams. It is because these scammers or fraudsters ask for personal details and people on the other hand are too naïve and trust them thus making the fraudsters work much easier. This person said that when he was applying for the credit card at the petrol station, it did not occur to him that these people could be fraudsters because the promotion was apparently held at a legitimate business premise. That is why he believed them and gave them his personal details such as copies of IC, driving license, credit card number and he was also asked to give his address, phone number, occupation and employer’s name. The number of people who have been falling victims in the same situation has increased over the years. Consumers’ rights are not being protected because many illegal or fake businesses has tricked them into entering such false contract.

Recommendation

In the Consumer Protection Act 1999, under Section 9, there is a mention of misleading conduct and this is when, no person shall engage in

conduct that- (a) in relation to service, is misleading or deceptive, or is likely to mislead or deceive, the public as to nature, characteristics, suitability for a purpose, or quantity, of the services.

Based on the Act stated above, those fraudsters definitely have misled the consumers and trick them into believing of the existence of the service which is the credit card. What is recommended to do is that law enforcers must take into high consideration of these complaints being made because the person who wrote in The Star Newspaper mentioned that his case was taken lightly and that the authority did not really take any action.

This is unfair to consumers. Consumers have right and we would want those who is responsible behind these illegal activities to be punished. So, the authorities need to carry out random checks around town to make sure there are no illegal activities. They should do so especially to stalls that are at random places such as petrol stations. They must have proper documentations with them supporting that if there are legit business or not so that the consumers do not fall into such scams. Consumers are also encouraged to report such illegal businesses to the authority to make sure that they take the right actions against them.

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Supreme Court Rejects Challenge to Consumer Watchdog’s Funding

A decision against the agency, the Consumer Financial Protection Bureau, could have cast doubt on all of its regulations and enforcement actions.

• Share full article

By Adam Liptak

Reporting from Washington

The Supreme Court rejected a challenge on Thursday to the way the Consumer Financial Protection Bureau is funded, one that could have hobbled the bureau and advanced a central goal of the conservative legal movement: limiting the power of independent agencies.

The vote was 7 to 2, with Justice Clarence Thomas writing the majority opinion.

Had the bureau lost, the court’s ruling might have cast doubt on every regulation and enforcement action it had taken in its 13 years of existence, including ones concerning mortgages, credit cards, consumer loans and banking.

The central question in the case was whether the way Congress chose to fund the bureau had violated the appropriations clause of the Constitution, which says that “no money shall be drawn from the Treasury, but in consequence of appropriations made by law.”

Justice Thomas said the mechanism was constitutional.

“Under the appropriations clause,” he wrote, “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes.”

“The statute that provides the bureau’s funding meets these requirements,” he added. “We therefore conclude that the bureau’s funding mechanism does not violate the appropriations clause.”

Justice Samuel A. Alito Jr., joined by Justice Neil M. Gorsuch, dissented.

The agency welcomed the decision, acknowledging the sustained attacks it had faced since it was set up to ensure that consumers were not taken advantage of by credit card companies, debt collectors and other financial firms.

“For years, lawbreaking companies and Wall Street lobbyists have been scheming to defund essential consumer protection enforcement,” said Sam Gilford, a spokesman. “The Supreme Court has rejected their radical theory that would have devastated the American financial markets.”

Critics of the agency called the ruling a missed opportunity. “This decision marks an alarming failure by the court to police the proper exercise of Congress’s constitutional powers,” said Dan Greenberg, the general counsel of the Competitive Enterprise Institute, a free-market public policy organization.

The bureau, created after the financial crisis as part of the 2010 Dodd-Frank Act, is not funded by an annual appropriation but rather through an unusual arrangement in which it draws resources, up to an annual cap, from the Federal Reserve system. That system, in turn, does not receive congressional appropriations but is financed by interest on securities it holds, gains from securities transactions and various fees.

Republicans and business groups have long contended that the bureau enjoys unchecked power.

Justice Thomas wrote that the question in the case was a narrow one and that “an identified source and purpose are all that is required for a valid appropriation,” surveying historical analogies from English, colonial and early American history.

In a concurring opinion, Justice Elena Kagan, joined by Justices Sonia Sotomayor, Brett M. Kavanaugh and Amy Coney Barrett, added that more recent history also supported the agency.

“The way our government has actually worked, over our entire experience, thus provides another reason to uphold Congress’s decision about how to fund the C.F.P.B.,” Justice Kagan wrote.

In her own concurrence, Justice Ketanji Brown Jackson wrote that the court should not “undercut the considered judgments of a coordinate branch about how to respond to a pressing national concern.”

In dissent, Justice Alito wrote that “the framers would be shocked, even horrified, by this scheme.”

“In sum,” he added, “the C.F.P.B.’s unprecedented combination of funding features affords it the very kind of financial independence that the appropriations clause was designed to prevent. It is not an exaggeration to say that the C.F.P.B. enjoys a degree of financial autonomy that a Stuart king would envy.”

A unanimous three-judge panel of the U.S. Court of Appeals for the Fifth Circuit, in New Orleans, ruled in 2022 that the bureau’s funding method ran afoul of the appropriations clause.

“Wherever the line between a constitutionally and unconstitutionally funded agency may be, this unprecedented arrangement crosses it,” Judge Cory T. Wilson wrote in an opinion joined by Judges Don R. Willett and Kurt D. Engelhardt in the ruling. President Donald J. Trump appointed all three judges.

The Fifth Circuit’s decision was at odds with ones from other courts. In 2018, for instance, the District of Columbia Circuit said there was nothing unusual about the funding mechanism.

In 2020, the Supreme Court ruled that a different part of the law creating the consumer bureau was unconstitutional, saying that Congress could not insulate the bureau’s director from presidential oversight given the scope of the job’s authority.

“The director has the sole responsibility to administer 19 separate consumer-protection statutes that cover everything from credit cards and car payments to mortgages and student loans,” Chief Justice John G. Roberts Jr. wrote for the majority .

He mentioned the bureau’s funding in passing, noting that its budget had exceeded half a billion dollars in recent years.

“Unlike most other agencies,” the chief justice wrote, “the C.F.P.B. does not rely on the annual appropriations process for funding. Instead, the C.F.P.B. receives funding directly from the Federal Reserve, which is itself funded outside the appropriations process through bank assessments.”

The case, Consumer Financial Protection Bureau v. Community Financial Services Association of America, No. 22-448, was brought by two trade groups representing payday lenders. They challenged a regulation limiting the number of times lenders can try to withdraw funds from borrowers’ bank accounts. The Fifth Circuit struck down the regulation, saying it was “wholly drawn through the agency’s unconstitutional funding scheme.”

In the coming weeks, the court is expected to rule on two other major challenges to agency power. One concerns the Chevron doctrine , which requires courts to defer to agencies’ reasonable interpretations of ambiguous statutes. The other is a challenge to the constitutionality of the Securities and Exchange Commission’s administrative tribunals.

Adam Liptak covers the Supreme Court and writes Sidebar, a column on legal developments. A graduate of Yale Law School, he practiced law for 14 years before joining The Times in 2002. More about Adam Liptak

• Kreyòl Ayisyen

Statement on Supreme Court Decision in CFPB v. CFSA

The Consumer Financial Protection Bureau issued a statement today regarding the Supreme Court’s decision in CFPB v. Community Financial Services Association of America:

“For years, lawbreaking companies and Wall Street lobbyists have been scheming to defund essential consumer protection enforcement. The Supreme Court has rejected their radical theory that would have devastated the American financial markets. The Court repudiated the arguments of the payday loan lobby and made it clear that the CFPB is here to stay.”

“Congress created the CFPB to be the primary federal watchdog protecting consumers from predatory and abusive practices in the financial sector. Since the CFPB opened its doors in 2011, it has delivered more than $20 billion in consumer relief to hundreds of millions of consumers and has handled more than 4 million consumer complaints.”

“Today’s decision is a resounding victory for American families and honest businesses alike, ensuring that consumers are protected from predatory corporations and that markets are fair, transparent, and competitive.”

“This ruling upholds the fact that the CFPB’s funding structure is not novel or unusual, but in fact an essential part of the nation’s financial regulatory system, providing stability and continuity for the agencies and the system as a whole. As we have done since our inception, the CFPB will continue carrying out the vital consumer protection work Congress charged us to perform for the American people.”

The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov .

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• School Education /

Essay on Save Tiger in English for Students

• Updated on  
• May 22, 2024

Essay on Save Tiger: The tiger, symbolic of strength and wilderness, faces imminent extinction. With their numbers and habitats rapidly declining, urgent measures are essential to protect these magnificent creatures. Notably, a 2023 survey reveals that India is home to 3,682 tigers, constituting nearly 75% of the global wild tiger population. Immediate conservation efforts are critical.

Table of Contents

• 1.1 Historical Context (1973 – Ministry of Environment and Forest and Climate Change)
• 1.2 Habitat Loss
• 1.3 Poaching and Illegal Trade
• 1.4 Human-Wildlife Conflict
• 1.5 Conservation Strategies
• 1.6 Conclusion
• 2 List of Tiger Reserves in India
• 3 Fun Facts About Gloden Tiger

Essay on Save Tiger in 500 Words

Since time immemorial, tigers have symbolized strength, grace, and resilience, reigning as the monarch of the forests. Yet, its kingdom is besieged by threats that imperil its very existence. In 1973, the Ministry of Environment and Forest recognized the pressing need for concerted conservation efforts to save the tiger from the brink of extinction. This essay explores the challenges facing tiger conservation and the imperative to protect these majestic creatures.

Quick Read: Essay on the Role of Youth in Nation-Building

Historical Context (1973 – Ministry of Environment and Forest and Climate Change)

In 1973, the Ministry of Environment and Forest and Climate Change of the Government of India took a pivotal step by enacting legislation to protect endangered species, including tigers. This led to the creation of Project Tiger, a significant milestone in conservation history. The project aimed to protect tiger habitats, curb poaching, and ensure the species’ survival. By establishing protected areas and implementing anti-poaching measures, Project Tiger signalled India’s commitment to preserving biodiversity. This initiative highlighted the intrinsic value of charismatic megafauna like tigers, underscoring the need to maintain ecological balance and protect natural heritage for future generations.

Habitat Loss

The relentless march of human development has encroached upon tiger habitats, fragmenting forests and diminishing available territory. Deforestation, driven by logging, agriculture, and infrastructure projects, disrupts vital ecosystems, depriving tigers of suitable living spaces and prey populations. Addressing habitat loss requires a multi-faceted approach, including habitat restoration, land-use planning, and sustainable development practices.

Poaching and Illegal Trade

Despite legal protections, tigers remain coveted targets for poachers seeking to profit from their pelts, bones, and organs. The illegal trade in tiger parts persists due to demand from traditional medicine markets and illicit collectors. Efforts to combat poaching must involve robust law enforcement, international cooperation, and community engagement to disrupt criminal networks and reduce consumer demand for tiger products.

Human-Wildlife Conflict

As human populations expand into tiger territories, conflicts inevitably arise, posing threats to both humans and tigers. Livestock depredation and attacks on humans exacerbate tensions, leading to retaliatory killings and further endangering tiger populations. Mitigating human-wildlife conflict requires proactive measures such as community-based conservation initiatives, habitat corridors, and innovative deterrent methods to promote coexistence.

Conservation Strategies

• Protected Areas: National parks and wildlife reserves act as sanctuaries, offering secure habitats and fostering genetic diversity among tiger populations.
• Anti-Poaching Patrols: Regular patrols deter poachers and protect tigers from illegal hunting.
• Community-Based Conservation Projects: Local communities are engaged in conservation efforts, ensuring sustainable coexistence with tigers and reducing human-wildlife conflict. 
• Eco-Tourism Initiatives: Eco-tourism provides economic incentives for conservation, raising awareness and funding for tiger protection programs.

Quick Read: Essay on Voting Rights in India: 500 Words in English for Students

The plight of the tiger epitomises the broader struggle to balance human needs with the imperative to protect biodiversity. Saving the tiger requires collective action, political will, and sustained commitment from governments, conservation organisations, and local communities. By addressing habitat loss, combating poaching, mitigating human-wildlife conflict, and implementing effective conservation strategies, we can ensure the tiger’s survival for generations to come. Let us heed the call to action and uphold our responsibility as stewards of the earth, preserving the legacy of the tiger and safeguarding the biodiversity of our planet.

List of Tiger Reserves in India

Fun Facts About Gloden Tiger

• Rare and Regal: Golden tigers, also called golden tabby tigers, are incredibly rare. There are estimated to be fewer than 30 in captivity worldwide, and sightings in the wild are even rarer.
• Not Golden: Their name might be a bit misleading! Golden tigers are a pale blonde or straw colour, with reddish-brown stripes instead of the usual black.
• Genetic Mystery: The secret to their unique look is a recessive gene called “wideband” that affects how black pigment is produced in their fur.
• Larger Matters: Golden tiger tends to be larger than orange-coloured Bengal tiger relatives. They also have softer fur, thanks to the way the wideband gene interacts with their hair.
• Captive curiosity: While a few have been spotted in the wild, all golden tigers in captivity can be traced back to a single white tiger named Bhim.

Ans: We all have a responsibility to save tigers because they are an essential part of our ecosystem. They eat animals that would be detrimental to our environment and help maintain ecological balance.

Ans: Here are some key strategies implemented by the government to preserve the tiger populations: Protect tigers and their habitat. Build capacity in range states. Reduce human-tiger conflict. Conduct scientific research on tigers to help inform conservation strategies. Promote tiger-friendly policies.

Ans: Tigers occupy an important place in Indian culture. For ages, it has been a symbol of magnificence, power, beauty, and fierceness and has been associated with bravery and valour.

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Aayushi Vardhan

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