Doctors and the Consumer Protection Act, 1986

Context: Recently, Supreme Court ruled that advocates cannot be held liable under the Consumer Protection Act, 1986, (CPA) for deficiency in service. In its 1995 decision, SC had held that medical professionals are accountable under the CPA. Now, it suggested that the definition of the term ‘services’ under the Consumer Protection Act, which includes the medical sector, be re-examined.

Consumer Protection Act, 2019

Consumer Protection Act, 2019 replaced the Consumer Protection Act of 1986. Its objective is to empower consumers and help them in protecting their rights through its various rules and provisions. The new act will be swift and less time consuming compared to the older Consumer Protection Act, 1986.

Who is a consumer? 

A person who buys any goods or services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment is termed as consumer protection Act.

Key features of Consumer Protection Act, 2019

While retaining certain old provisions, the New Act has certain new provisions that tighten the existing rules to further safeguard consumer rights and create exhaustive consumer protection law. New provisions under Consumer Protection Act 2019 are:

• Inclusion of E- commerce, Direct selling Establishment of Central Consumer Protection Authority (CCPA)
• Strict Norms for Misleading Advertisement
• Strict Norms for product liability 
• Changes in the Pecuniary Jurisdiction 
• Greater ease to dispute resolution Addition in the clause of “Unfair Trade Practice”: 
• Unfair Contract 
• Alternate Dispute Resolution through mediation

Consumers Rights: 

Consumer rights are guaranteed under Consumer Protection Act, 2019. A Consumer is having the following six consumer rights under the Act:

Creation of Consumer Protection Council:

• The Act has mandated the central government to establish Consumer Protection Councils called as Central Councils.
• It also mandates 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.

Central Consumer Protection Authority:

• The Act establishes the Central Consumer Protection Authority [CCPA] to protect and enforce the rights of consumers. It will regulate matters related to:
  1. violation of consumer rights
  2. unfair trade practices
  3. 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.

Consumer Dispute Redressal Commission:

• The Act sets up a three-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:
  • unfair trade practices.
  • defective goods or services.
  • overcharging or deceptive charging.
  • Selling of goods or services which may be hazardous to life and safety.
• Complaints against unfair contracts can be made only at the center and state consumer disputes redressal commissions.
• The final appeal against the order of the national commission shall be made in the Supreme Court.

Mediation

• The Act 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.

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.
• Compensation may be obtained if the complaint for product liability satisfies any of the following conditions:
  •  Manufacturing defect
  • Design defect.
  • Deviation from manufacturing specifications
  • Not conforming to express warranty
  • Lack of adequate instruction for correct use
  • Faulty services.

Penalties:

• 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.