With reference to recent developments, elaborate in detail the legal framework for consumer rights protection in India.
Recently, the Central Consumer Protection Authority (CCPA) has issued an advisory to all e-commerce platforms to take necessary steps to ensure that their platforms do not engage in deceptive and unfair trade practices which are in the nature of Dark Patterns. With e-commerce gaining momentum day by day, this seems to be a respite for the consumer community.
Consumer rights protection in India:
- The Consumer Protection Act (CPA) is a crucial piece of legislation in India that aims to protect the interests of consumers. Initially enacted in 1986, the Act has been instrumental in empowering consumers and ensuring fair market practices. The Act was further strengthened with the introduction of the Consumer Protection Act, 2019, to address the challenges of modern consumerism, including e-commerce and digital transactions.
Comparison of the Consumer Protection Act, 1986 and 2019
| Feature | Consumer Protection Act, 1986 | Consumer Protection Act, 2019 |
| Scope | Limited to unfair trade practices and defective goods/services | Includes online transactions, e-commerce, product liability, and unfair contracts |
| Consumer Rights | Six basic rights: safety, information, choice, fair hearing, representation, redressal | Adds right to be heard in product liability cases and protection against unfair contracts |
| Redressal Mechanisms | Three-tier system with DCDRFs, SCDRCs, and NCDRC | Retains the three-tier system but introduces online complaint filing, simplified procedures, and higher monetary limits |
| Penalties | Limited penalties for unfair trade practices | Stricter penalties, including imprisonment and higher fines for misleading advertisements and violation of consumer rights |
- The Consumer Protection (Amendment) Act, 2023, primarily focuses on stricter penalties for misleading advertisements and strengthens the role of the Central Consumer Protection Authority (CCPA) in protecting consumer rights.
- The Central Consumer Protection Authority (CCPA) in June 2025 has issued an advisory to all e-commerce platforms to take necessary steps to ensure that their platforms do not engage in deceptive and unfair trade practice which are in the nature of Dark Patterns.
- All e-commerce platforms have been advised to conduct self-audits to identify dark patterns, within 3 months of the issue of the advisory, and take necessary steps to ensure that their platforms are free from such dark patterns. The e commerce platforms, based on the self-audit reports, have also encouraged to give self-declarations that their platform is not indulging in any dark patterns.
- As part of the Government’s broader strategy and ongoing efforts to strengthen consumer protection in the digital era and curb unfair practices in e-commerce and online services, Department of Consumer Affairs, Government of India had notified the Guidelines for Prevention and Regulation of Dark Patterns in 2023 and specified 13 dark patterns, namely: False urgency, Basket Sneaking, Confirm shaming, forced action, Subscription trap, Interface Interference, Bait and switch, Drip Pricing, Disguised Advertisements and Nagging, Trick Wording, Saas Billing and Rogue Malwares.
Consumer Rights: The CPA grants several essential rights to consumers, including:
Right to be informed:
Consumers have the right to know about the quality, quantity, potency, purity, standard, and price of goods and services.
Right to protection:
Consumers are protected from unfair trade practices such as misleading advertisements, false promises, and defective goods.
Right to choose:
Consumers have the right to choose from a variety of goods and services.
Right to seek redressal:
Consumers have the right to seek compensation or other forms of redressal for grievances related to goods or services.
Consumer Responsibilities:
In addition to rights, the CPA outlines specific responsibilities for consumers, including:
1. Exercising due diligence while making purchases.
2. Reading and understanding terms and conditions before entering into a contract.
3. Maintaining relevant receipts and documents for future reference.
4. Filing complaints in a timely manner.
- Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019 with the Ministry of Consumer Affairs, Food & Public Distribution as its nodal Ministry.
- The CCPA protects, promotes, and enforces the rights of consumers as a class under the Act.
- It prevents unfair trade practices and curbs false or misleading advertisements.
- The CCPA ensures that no one publishes or disseminates false or misleading advertisements.
- The CCPA can initiate class-action suits, including recalls, refunds, and cancellation of licenses, when necessary.
- The CCPA can conduct inquiries and investigations through its Investigation Wing, headed by a Director-General.
- It can order the discontinuation of unfair practices, impose penalties on errant businesses, and enforce consumer welfare measures.
- Composition of CCPA: A Chief Commissioner heads the CCPA and has two other commissioners: One commissioner deals with goods-related issues. The other commissioner handles service-related complaints.
- Enforcement Mechanisms: The CPA establishes a three-tier system for the redressal of consumer grievances:
District Consumer Disputes Redressal Forums (DCDRFs): Handle cases where the value of goods or services does not exceed Rs. 1 crore (as per the 2019 Act; previously Rs. 50 lakhs).
1. Composition
2. Presided over by a judicial member, typically a retired District Court Judge.
3. Comprises two other members: one with expertise in consumer affairs and the other with relevant field expertise.
State Consumer Disputes Redressal Commissions (SCDRCs): Handle cases where the value of goods or services exceeds Rs. 1 crore but does not exceed Rs. 10 crore (as per the 2019 Act; previously Rs. 2 crore).
1. Composition
2. Headed by a sitting or retired Judge of a High Court.
3. Comprises additional members with expertise in consumer affairs and law.
National Consumer Disputes Redressal Commission (NCDRC): Handles cases where the value of goods or services exceeds Rs. 10 crore.
1. Composition
2. The NCDRC consists of a President (a sitting or retired Judge of the Supreme Court or a Chief Justice of a High Court) and members.
3. As of 2020, the central government mandates that the NCDRC must consist of a President and not less than four and not more than eleven members, with at least one woman member.
Impact of the Consumer Protection Act:
- Reducing consumer fraud and exploitation.
- Increasing consumer awareness about their rights.
- Empowering consumers to make informed decisions.
- Promoting fair competition and pricing in the market.
Challenges
Despite its successes, the CPA faces several challenges:
- Low awareness among consumers about their rights and the available redressal mechanisms.
- Backlog of cases in consumer forums, causing delays in grievance resolution.
- Limited resources for consumer forums, affecting their efficiency.
- Weak enforcement mechanisms, reducing the deterrence of unfair trade practices.
The Consumer Protection Act has been a landmark in safeguarding consumer rights in India. The 2019 Act has modernized the legal framework, keeping pace with the changing dynamics of commerce. Strengthening the Alternative Dispute Resolution (ADR) mechanisms within the CPA framework will further empower consumers, ensuring fair market practices and equitable access to justice.
News:
Joint Working Group (JWG) constituted to identify and eradicate Dark Patterns
E-Commerce Platforms advised to comply with Guidelines for Prevention and Regulation of Dark Patterns, 2023
Source:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2134765