THE CONSUMER PROTECTION ACT, 2019 

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ARRANGEMENT OF SECTIONS 

Last Updated:17-9-2021 

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CHAPTER I 

PRELIMINARY 

SECTIONS  

1.  Short title, extent, commencement and application. 
2.  Definitions. 

CHAPTER II 
CONSUMER PROTECTION COUNCILS. 

3.  Central Consumer Protection Council. 
4.  Procedure for meetings of Central Council. 
5.  Objects of Central Council. 
6.  State Consumer Protection Councils. 
7.  Objects of State Council. 
8.  District Consumer Protection Council. 
9.  Objects of District Council. 

CHAPTER III 
CENTRAL CONSUMER PROTECTION AUTHORITY 

10.  Establishment of Central Consumer Protection Authority. 
11.  Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners. 
12.  Vacancy, etc., not to invalidate proceedings of Central Authority. 
13.  Appointment of officers, experts, professionals and other employees of Central Authority. 
14.  Procedure of Central Authority. 
15.  Investigation Wing. 
16.  Power of District Collector. 
17.  Complaints to authorities. 
18.  Powers and functions of Central Authority. 
19.  Power of Central Authority to refer matter for investigation or to other Regulator. 
20.  Power of Central Authority to recall goods, etc. 
21.  Power of Central Authority to issue directions and penalties against false or misleading 

advertisements. 
22.  Search and seizure. 
23.  Designation of any statutory authority or body to function as Central Authority. 
24.  Appeal. 
25.  Grants by Central Government. 
26.  Accounts and audit. 
27.  Furnishing of annual reports, etc. 

CHAPTER IV 
CONSUMER DISPUTES REDRESSAL COMMISSION 
28.  Establishment of District Consumer Disputes Redressal Commission. 
29.  Qualifications, etc., of President and members of District Commission. 

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SECTIONS  

30.  Salaries, allowances and other terms and conditions of service of President and members of 

District Commission. 

31.  Transitional provision. 
32.  Vacancy in office of member of District Commission. 
33.  Officers and other employees of District Commission. 
34.  Jurisdiction of District Commission. 
35.  Manner in which complaint shall be made. 
36.  Proceedings before District Commission. 
37.  Reference to mediation. 
38.  Procedure on admission of complaint. 
39.  Findings of District Commission. 
40.  Review by District Commission in certain cases. 
41.  Appeal against order of District Commission. 
42.  Establishment of State Consumer Disputes Redressal Commission. 
43.  Qualifications, etc., of President and members of State Commission. 
44.  Salaries, allowances and other terms and conditions of service of President and members of State 

Commission. 

45.  Transitional provision. 
46.  Officers and employees of State Commission. 
47.  Jurisdiction of State Commission. 
48.  Transfer of cases. 
49.  Procedure applicable to State Commission. 
50.  Review by State Commission in certain cases. 
51.  Appeal to National Commission. 
52.  Hearing of appeal. 
53.  Establishment of National Consumer Disputes Redressal Commission. 
54.  Composition of National Commission. 
55.  Qualifications, etc., of President and members of National Commission. 
56.  Transitional provision. 
57.  Other officers and employees of National Commission. 
58.  Jurisdiction of National Commission. 
59.  Procedure applicable to National Commission. 
60.  Review by National Commission in certain cases. 
61.  Power to set aside ex parte orders. 
62.  Transfer of cases. 
63.  Vacancy in office of President of National Commission. 
64.  Vacancies or defects in appointment not to invalidate orders. 
65.  Service of notice, etc. 
66.  Experts to assist National Commission or State Commission. 
67.  Appeal against order of National Commission. 
68.  Finality of orders. 
69.  Limitation period. 
70.  Administrative control. 
71.  Enforcement of orders of District Commission, State Commission and National Commission. 
72.  Penalty for non-compliance of order. 
73.  Appeal against order passed under section 72. 

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CHAPTER V 

MEDIATION 

SECTIONS 

74.  Establishment of consumer mediation cell. 
75.  Empanelment of mediators. 
76.  Nomination of mediators from panel. 
77.  Duty of mediator to disclose certain facts. 
78.  Replacement of mediator in certain cases. 
79.  Procedure for mediation. 
80.  Settlement through mediation. 
81.  Recording settlement and passing of order. 

CHAPTER VI 
PRODUCT LIABILLITY 

82.  Application of Chapter. 
83.  Product liability action 
84.  Liability of product manufacturer. 
85.  Liability of product service provider. 
86.  Liability of product sellers. 
87.  Exceptions to product liability action. 

CHAPTER VII 
OFFENCES AND PENALTIES 

88.  Penalty for non-compliance of direction of Central Authority. 
89.  Punishment for false or misleading advertisement. 
90.  Punishment for manufacturing for sale or storing, selling or distributing or importing products 

containing adulterant. 

91.  Punishment for manufacturing for sale or for storing or selling or distributing or importing 

spurious goods. 

92.  Cognizance of offence by court. 
93.  Vexatious search. 

CHAPTER VIII 
MISCELLANEOUS 

94.  Measures to prevent unfair trade practices in e-commerce, direct selling, etc. 
95.  Presidents, members, Chief Commissioner, Commissioner and certain officers to be public 

servants. 

96.  Compounding of offences. 
97.  Manner of crediting penalty. 
98.  Protection of action taken in good faith. 
99.  Power to give directions by Central Government. 
100. Act not in derogation of any other. 
101. Power of Central Government to make rules. 
102. Power of State Government to make rules. 
103. Power of National Commission to make regulations. 
104. Power of Central Authority to make regulations. 
105. Rules and regulations to be laid before each House of Parliament. 
106. Power to Remove Difficulties. 
107. Repeal and savings. 

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THE CONSUMER PROTECTION ACT, 2019 

ACT NO. 35 OF 2019 

An Act to provide for 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. 

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— 

[9th August, 2019.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent, commencement and application.—(1) This Act may be called the Consumer 

Protection Act, 2019. 

(2) It extends to the whole of India except the State of Jammu and Kashmir. 

(3)  It shall come into force on such date1 as the Central Government may, by notification,  appoint and 
different  dates  may  be  appointed  for  different  States  and  for  different  provisions  of  this  Act  and  any 
reference in any such provision to the commencement of this Act shall be construed as a reference to the 
coming into force of that provision. 

(4)  Save as otherwise expressly provided by the Central Government, by notification,  this  Act  shall 

apply to all goods and  services. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(1)  "advertisement"  means  any  audio  or  visual  publicity,  representation,  endorsement  or 
pronouncement  made  by  means  of  light,  sound,  smoke,  gas,  print,  electronic  media,  internet  or 
website and includes any notice, circular, label, wrapper, invoice or such other documents; 

(2) "appropriate laboratory" means a laboratory or an organisation— 

(i) recognised by the Central Government; or 

(ii)  recognised  by  a  State  Government,  subject  to  such  guidelines  as  may  be  issued  by  the 

Central Government in this behalf; or 

(iii)  established  by  or  under  any  law  for  the  time  being  in  force,  which  is  maintained, 
financed or aided by the Central Government or a State Government for carrying out analysis or 
test of any goods with a view to determining whether such goods suffer from any defect; 

(3) "branch office" means— 

(i) any office or place of work described as a branch by the establishment; or 

(ii) any establishment carrying on either the same or substantially the same activity carried on 

by the head office of the establishment; 

(4)  "Central  Authority"  means  the  Central  Consumer  Protection  Authority  established  under 

1.  20th  July,  2020.—S.  2  [Except  clauses  (4),  (13),  (14),  (16),  (40)],  s.  3  to  9  (both  inclusive),  s.  28  to  73  (both  inclusive) 
[Except sub-clause (iv) of clause (a) of sub-section (1) of section 58], s. 74 to 81 (both inclusive), s. 82 to 87 (both inclusive), 
s. 90 and 91 [Except sections 88, 89, 92 and 93], s. 95, 98,100 and 101 [Except clauses (f) to (m) and clauses (zg), (zh) and (zi) 
of  sub-section  2],  s.  102,  103,  105,  106,  107  [Except  sections  94,  96,  97,  99,  104],  vide  notification  No.  S.O.  2351(E),                  
dated 15th July, 2020, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 

2.  24th  July,  2020.--  S.  2  [clauses  (4),  (13),  (14),  (16),  (40)],  s.  10  to  27  (both  inclusive),  sub-clause  (iv)  of  clause  (a)  of            

sub-section (1) of section  58, s. 88, 89, 92 and 93, 94, 96, 97 and 99, clause (f) to (m) of sub-section 2 and clauses (zg), (zh) 
and  (zi)  of  sub-section  2  of  s.  101,  104,  vide  notification  No.  S.O.  2421(E),  dated  23rd  July  2020,  see  Gazette  of  India, 
Extraordinary, Part II, sec. 3(ii). 

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section 10; 

(5) "complainant" means— 

(i) a consumer; or  

(ii) any voluntary consumer association registered under any law for the time being in force; or 

(iii) the Central Government or any State Government; or 

 (iv) the Central Authority; or 

(v) one or more consumers, where there are numerous consumers having the same interest; or 

(vi) in case of death of a consumer, his legal heir or legal representative; or 

(vii) in case of a consumer being a minor, his parent or legal guardian; 

(6)  "complaint"  means  any  allegation  in  writing,  made  by  a  complainant  for  obtaining  any  relief 

provided by or under this Act, that— 

(i) an unfair contract or unfair trade practice or a restrictive trade practice has been adopted 

by any trader or service provider; 

(ii) the goods bought by him or agreed to be bought by him suffer from one or more defects; 

(iii) the services hired or availed of or agreed to be hired or availed of by him suffer from any 

deficiency; 

(iv) a trader or a service provider, as the case may be, has charged for the goods or for  the 

services mentioned in the complaint, a price in excess of the price— 

(a) fixed by or under any law for the time being in force; or 

(b) displayed on the goods or any package containing such goods; or 

(c) displayed on the price list exhibited by him by or under any law for the time being in 

force; or 

(d) agreed between the parties; 

(v) the goods, which are hazardous to life and safety when used, are being offered for sale to 

the public-- 

(a)  in  contravention  of  standards  relating  to  safety  of  such  goods  as  required  to  be 

complied with, by or under any law for the time being in force; 

(b) where the trader knows that the goods so offered are unsafe to the public; 

(vi) the services which are hazardous or likely to be hazardous to life and safety of the public 
when  used,  are  being  offered  by  a  person  who  provides  any  service  and  who  knows  it  to  be 
injurious to life and safety; 

(vii) a claim for product liability action lies against the product manufacturer, product seller 

or product service provider, as the case may be; 

(7) "consumer" means any person who— 

(i) 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 

(ii) 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 

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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. 

Explanation. —For the purposes of this clause, — 

(a) the expression "commercial purpose" does not include use by a person of goods 
bought and used by him exclusively for the purpose of earning his livelihood, by means 
of self-employment; 

(b)  the  expressions  "buys  any  goods"  and  "hires  or  avails  any  services"  includes 
offline  or  online  transactions  through  electronic  means  or  by  teleshopping  or  direct 
selling or multi-level marketing; 

(8)  "consumer  dispute"  means  a  dispute  where  the  person  against  whom  a  complaint  has  been 

made, denies or disputes the allegations contained in the complaint; 

(9) "consumer rights" includes,-- 

(i) the  right  to  be  protected  against  the  marketing  of  goods,  products or  services  which  are 

hazardous to life and property; 

(ii) the right to be informed about the quality, quantity, potency, purity, standard and price of 
goods, products or services, as the case may be, so as to protect the consumer against unfair trade 
practices; 

(iii)  the  right  to  be  assured,  wherever  possible,  access  to  a  variety  of  goods,  products  or 

services at competitive prices; 

(iv)  the  right  to  be  heard  and  to  be  assured  that  consumer's  interests  will  receive  due 

consideration at appropriate for a; 

(v)  the  right  to  seek  redressal  against  unfair  trade  practice  or  restrictive  trade  practices  or 

unscrupulous exploitation of consumers; and 

(vi) the right to consumer awareness; 

(10)  "defect"  means  any  fault,  imperfection  or  shortcoming  in  the  quality,  quantity,  potency, 
purity or standard which is required to be maintained by or under any law for the time being in force 
or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in 
relation to any goods or product and the expression "defective" shall be construed accordingly; 

(11) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature 
and manner of performance which is required to be maintained by or under any law for the time being 
in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in 
relation to any service and includes— 

(i)  any  act  of  negligence  or  omission  or  commission  by  such  person  which  causes  loss  or 

injury to the consumer; and 

(ii) deliberate withholding of relevant information by such person to the consumer; 

(12)  "design",  in  relation  to  a  product,  means  the  intended  or  known  physical  and  material 
characteristics  of  such  product  and includes  any  intended  or  known  formulation  or  content  of  such 
product  and  the  usual  result  of  the  intended  manufacturing  or  other  process  used  to  produce  such 
product; 

(13)  "direct  selling"  means  marketing,  distribution  and  sale  of  goods  or  provision  of  services 

through a network of sellers, other than through a permanent retail location; 

(14)  "Director-General"  means  the  Director-General  appointed  under  sub-section  (2)  of  section 

15; 

(15)  "District  Commission"  means  a  District  Consumer  Disputes  Redressal  Commission 

established under sub-section (1) of section 28; 

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(16) "e-commerce" means buying or selling of goods or services including digital products over 

digital or electronic network; 

(17)  "electronic  service  provider"  means  a  person  who  provides  technologies  or  processes  to 
enable  a  product  seller  to  engage  in  advertising  or  selling  goods  or  services  to  a  consumer  and 
includes any online market place or online auction sites; 

(18) "endorsement", in relation to an advertisement, means— 

(i) any message, verbal statement, demonstration; or 

(ii) depiction of the name, signature, likeness or other identifiable personal characteristics of 

an individual; or 

(iii)  depiction  of  the  name  or  seal  of  any  institution  or  organisation,  which  makes  the 
consumer to believe that it reflects the opinion, finding or experience of the person making such 
endorsement; 

(19)  "establishment"  includes  an  advertising  agency,  commission  agent,  manufacturing,  trading 
or  any  other commercial  agency  which  carries on  any  business,  trade  or  profession or  any  work  in 
connection  with  or  incidental  or  ancillary  to  any  commercial  activity,  trade  or  profession,  or  such 
other class or classes of persons including public utility entities in the manner as may be prescribed; 

(20) "express warranty" means any material statement, affirmation of fact, promise or description 
relating  to  a  product  or  service  warranting  that  it  conforms  to  such  material  statement,  affirmation, 
promise or description and includes any sample or model of a product warranting that the whole of 
such product conforms to such sample or model; 

(21) "goods" means every kind of movable property and includes "food" as defined in clause (j) 

of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006 (34 of 2006); 

(22) "harm", in relation to a product liability, includes— 

(i) damage to any property, other than the product itself; 

(ii) personal injury, illness or death; 

(iii) mental agony or emotional distress attendant to personal injury or illness or damage to 

property; or 

(iv) any loss of consortium or services or other loss resulting from a harm referred to in sub-
clause (i) or sub-clause (ii) or sub-clause (iii), but shall not include any harm caused to a product 
itself  or  any  damage  to  the  property  on  account  of  breach  of  warranty  conditions  or  any 
commercial  or  economic  loss,  including  any  direct,  incidental  or  consequential  loss  relating 
thereto; 

(23) "injury" means any harm whatever illegally caused to any person, in body, mind or property; 

(24) "manufacturer" means a person who— 

(i) makes any goods or parts thereof; or 

(ii) assembles any goods or parts thereof made by others; or 

(iii) puts or causes to be put his own mark on any goods made by any other person; 

(25) "mediation" means the process by which a mediator mediates the consumer disputes; 

(26) "mediator" means a mediator referred to in section 75; 

(27)  "member"  includes  the  President  and  a  member  of  the  National  Commission  or  a  State 

Commission or a District Commission, as the case may be; 

(28)  "misleading  advertisement"  in  relation  to  any  product  or  service,  means  an  advertisement, 

which— 

(i) falsely describes such product or service; or 

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(ii)  gives  a  false  guarantee  to,  or  is  likely  to  mislead  the  consumers  as  to  the  nature, 

substance, quantity or quality of such product or service; or 

(iii)  conveys  an  express  or  implied  representation  which,  if  made  by  the  manufacturer  or 

seller or service provider thereof, would constitute an unfair trade practice; or 

(iv) deliberately conceals important information; 

(29)  "National  Commission"  means  the  National  Consumer  Disputes  Redressal  Commission 

established under sub-section (1) of section 53; 

(30)  "notification"  means  a  notification  published  in  the  Official  Gazette  and  the  term  "notify" 

shall be construed accordingly; 

(31) "person" includes-- 

(i) an individual; 

(ii) a firm whether registered or not; 

(iii) a Hindu undivided family; 

(iv) a co-operative society; 

(v)  an  association  of  persons  whether  registered  under  the  Societies  Registration  Act,  1860 

(21 of 1860) or not; 

(vi) any corporation, company or a body of individuals whether incorporated or not; 

(vii) any artificial juridical person, not falling within any of the preceding sub-clauses; 

(32) "prescribed" means prescribed by rules made by the Central Government, or, as the case may 

be, the State Government; 

(33) "product" means any article or goods or substance or raw material or any extended cycle of 
such  product,  which  may  be  in  gaseous,  liquid,  or  solid  state  possessing  intrinsic  value  which  is 
capable  of  delivery  either  as  wholly  assembled  or  as  a  component  part  and  is  produced  for 
introduction  to  trade  or  commerce,  but  does  not  include  human  tissues,  blood,  blood  products  and 
organs; 

(34)  "product  liability"  means 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 deficiency in services relating thereto; 

(35) "product liability action" means 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; 

(36) "product manufacturer" means a person who— 

(i) makes any product or parts thereof; or 

(ii) assembles parts thereof made by others; or 

(iii) puts or causes to be put his own mark on any products made by any other person; or 

(iv) makes a product and sells, distributes, leases, installs, prepares, packages, labels, markets, 
repairs, maintains such product or is otherwise involved in placing such product for commercial 
purpose; or 

(v) designs, produces, fabricates, constructs or re-manufactures any product before its sale; or 

(vi) being a product seller of a product, is also a manufacturer of such product; 

(37)  "product  seller",  in  relation  to  a  product,  means  a  person  who,  in  the  course  of  business, 
imports,  sells,  distributes,  leases,  installs,  prepares,  packages,  labels,  markets, repairs,  maintains,  or 
otherwise is involved in placing such product for commercial purpose and includes-- 

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(i) a manufacturer who is also a product seller; or 

(ii) a service provider, 

but does not include— 

(a)  a  seller  of  immovable  property,  unless  such  person  is  engaged  in  the  sale  of 

constructed house or in the construction of homes or flats; 

(b)  a provider  of professional  services  in any  transaction in  which, the  sale  or use  of a 
product  is  only  incidental  thereto,  but  furnishing  of  opinion,  skill  or  services  being  the 
essence of such transaction; 

(c) a person who— 

(I) acts only in a financial capacity with respect to the sale of the product; 

(II)  is  not  a  manufacturer,  wholesaler,  distributor,  retailer,  direct  seller  or  an 

electronic service provider; 

(III)  leases  a  product,  without  having  a  reasonable  opportunity  to  inspect  and 
discover  defects  in  the  product,  under  a  lease  arrangement  in  which  the  selection, 
possession,  maintenance,  and  operation  of  the  product  are  controlled  by  a  person  other 
than the lessor; 

(38) "product service provider", in relation to a product, means a person who provides any service 

in respect of such product; 

(39) "regulations" means the regulations made by the National Commission, or as the case may 

be, the Central Authority; 

(40)  "Regulator"  means  a  body  or  any  authority  established  under  any  other  law  for  the  time 

being in force; 

(41) "restrictive trade practice" means a trade practice which tends to bring about manipulation of 
price  or  its  conditions  of  delivery  or  to  affect  flow  of  supplies  in  the  market  relating  to  goods  or 
services  in  such  a  manner as  to impose  on the  consumers  unjustified  costs or restrictions and  shall 
include-- 

(i) delay beyond the period agreed to by a trader in supply of such goods or in providing 

the services which has led or is likely to lead to rise in the price; 

(ii) any trade practice which requires a consumer to buy, hire or avail of any goods or, as 
the case may be, services as condition precedent for buying, hiring or availing of other goods 
or services; 

(42) "service" means service of any description which is made available to potential users and 
includes,  but  not  limited  to,  the  provision  of  facilities  in  connection  with  banking,  financing, 
insurance,  transport,  processing,  supply  of  electrical  or  other  energy,  telecom,  boarding  or 
lodging  or  both,  housing  construction,  entertainment,  amusement  or  the  purveying  of  news  or 
other  information,  but  does  not  include  the  rendering  of  any  service  free  of  charge  or  under  a 
contract of personal service; 

(43) "spurious goods" means such goods which are falsely claimed to be genuine; 

(44)  "State  Commission"  means  a  State  Consumer  Disputes  Redressal  Commission 

established under sub-section (1) of section 42; 

(45) "trader", in relation to any goods, means a person who sells or distributes any goods for 
sale  and  includes  the  manufacturer  thereof,  and  where  such  goods  are  sold  or  distributed  in 
package form, includes the packer thereof; 

(46) "unfair contract" means a contract between a manufacturer or trader or service provider 
on one hand, and a consumer on the other, having such terms which cause significant change in 
the rights of such consumer, including the following, namely:-- 

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(i)  requiring  manifestly  excessive  security  deposits  to  be  given  by  a  consumer  for  the 

performance of contractual obligations; or 

(ii)  imposing  any  penalty  on  the  consumer,  for  the  breach  of  contract  thereof  which  is 
wholly  disproportionate  to  the  loss  occurred  due  to  such  breach  to  the  other  party  to  the 
contract; or 

(iii) refusing to accept early repayment of debts on payment of applicable penalty; or 

(iv)  entitling  a  party  to  the  contract  to  terminate  such  contract  unilaterally,  without 

reasonable cause; or 

(v)  permitting  or  has  the  effect  of  permitting  one  party  to  assign  the  contract  to  the 

detriment of the other party who is a consumer, without his consent; or 

(vi)  imposing  on  the  consumer  any  unreasonable  charge,  obligation  or  condition  which 

puts such consumer to disadvantage; 

(47) "unfair trade practice" means a trade practice which, for the purpose of promoting the sale, 
use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or 
deceptive practice including any of the following practices, namely:— 

(i) making any statement, whether orally or in writing or by visible representation including 

by means of electronic record, which— 

(a) falsely represents that the goods are of a particular standard, quality, quantity, grade, 

composition, style or model; 

(b) falsely represents that the services are of a particular standard, quality or grade; 

(c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as 

new goods; 

(d)  represents  that  the  goods  or  services  have  sponsorship,  approval,  performance, 

characteristics, accessories, uses or benefits which such goods or services do not have; 

(e) represents that  the  seller  or the  supplier  has  a  sponsorship or approval  or  affiliation 

which such seller or supplier does not have; 

(f) makes a false or misleading representation concerning the need for, or the usefulness 

of, any goods or services; 

(g) gives to the public any warranty or guarantee of the performance, efficacy or length of 

life of a product or of any goods that is not based on an adequate or proper test thereof: 

Provided that where a defence is raised to the effect that such warranty or guarantee is 
based on adequate or proper test, the burden of proof of such defence shall lie on the person 
raising such defence; 

(h) makes to the public a representation in a form that purports to be— 

(A) a warranty or guarantee of a product or of any goods or services; or 

(B) a promise to replace, maintain or repair an article or any part thereof or to repeat 
or continue a service until it has achieved a specified result, if such purported warranty or 
guarantee  or  promise is  materially  misleading  or if there is  no reasonable  prospect that 
such warranty, guarantee or promise will be carried out; 

(i) materially misleads the public concerning the price at which a product or like products or 
goods  or  services,  have  been  or  are,  ordinarily  sold  or  provided,  and,  for  this  purpose,  a 
representation as to price shall be deemed to refer to the price at which the product or goods or 
services has or have been sold by sellers or provided by suppliers generally in the relevant market 
unless it is clearly specified to be the price at which the product has been sold or services have 
been provided by the person by whom or on whose behalf the representation is made; 

10 

 
(j) gives false or misleading facts disparaging the goods, services or trade of another person. 

Explanation.—For the purposes of this sub-clause, a statement that is,— 

(A) expressed on an article offered or displayed for sale, or on its wrapper or container; or 

(B) expressed on anything attached to, inserted in, or accompanying, an article offered or 

displayed for sale, or on anything on which the article is mounted for display or sale; or 

(C) contained in or on anything that is sold, sent, delivered, transmitted or in any other 

manner whatsoever made available to a member of the public, 

shall be deemed to be a statement made to the public by, and only by, the person who had 
caused the statement to be so expressed, made or contained; 

(ii) permitting the publication of any advertisement, whether in any newspaper or otherwise, 
including  by  way  of  electronic  record,  for  the  sale  or  supply  at  a  bargain  price  of  goods  or 
services that are not intended to be offered for sale or supply at the bargain price, or for a period 
that is, and in quantities that are, reasonable, having regard to the nature of the market in which 
the business is carried on, the nature and size of business, and the nature of the advertisement. 

Explanation.—For the purpose of this sub-clause, "bargain price" means,— 

(A)  a price that is  stated in  any  advertisement  to  be  a  bargain price,  by  reference  to an 

ordinary price or otherwise; or 

(B)  a  price  that  a  person  who  reads,  hears  or sees  the  advertisement,  would  reasonably 
understand to be a bargain price having regard to the prices at which the product advertised or 
like products are ordinarily sold; 

(iii) permitting— 

(a) the offering of gifts, prizes or other items with the intention of not providing them as 
offered or creating impression that something is being given or offered free of charge when it 
is fully or partly covered by the amount charged, in the transaction as a whole; 

(b)  the  conduct  of  any  contest,  lottery,  game  of  chance  or  skill,  for  the  purpose  of 
promoting,  directly  or  indirectly,  the  sale,  use  or  supply  of  any  product  or  any  business 
interest, except such contest, lottery, game of chance or skill as may be prescribed; 

(c) withholding from the participants of any scheme offering gifts, prizes or other items 

free of charge on its closure, the information about final results of the scheme. 

Explanation.—For  the  purpose  of this  sub-clause,  the  participants  of  a  scheme  shall  be 
deemed to have been informed of the final results of the scheme where such results are within 
a  reasonable  time  published,  prominently  in  the  same  newspaper  in  which  the  scheme  was 
originally advertised; 

(iv) permitting the sale or supply of goods intended to be used, or are of a kind likely to 
be  used  by  consumers,  knowing  or  having  reason  to  believe  that  the  goods  do  not  comply 
with  the  standards  prescribed  by  the  competent  authority  relating  to  performance, 
composition,  contents,  design,  constructions,  finishing  or  packaging  as  are  necessary  to 
prevent or reduce the risk of injury to the person using the goods; 

(v) permitting the hoarding or destruction of goods, or refusal to sell the goods or to make 
them available for sale or to provide any service, if such hoarding or destruction or refusal 
raises  or  tends  to  raise  or  is  intended  to  raise,  the  cost  of  those  or  other  similar  goods  or 
services; 

(vi)  manufacturing  of  spurious  goods  or  offering  such  goods  for  sale  or  adopting 

deceptive practices in the provision of services; 

11 

 
 
(vii) not issuing bill or cash memo or receipt for the goods sold or services rendered in 

such manner as may be prescribed; 

(viii)  refusing,  after  selling  goods  or  rendering  services,  to  take  back  or  withdraw 
defective  goods  or  to  withdraw  or  discontinue  deficient  services  and  to  refund  the 
consideration thereof, if paid, within the period stipulated in the bill or cash memo or receipt 
or in the absence of such stipulation, within a period of thirty days; 

(ix)  disclosing  to  other  person  any  personal  information  given  in  confidence  by  the 
consumer unless such disclosure is made in accordance with the provisions of any law for the 
time being in force. 

CHAPTER II 

CONSUMER PROTECTION COUNCILS 

3.  Central  Consumer  Protection  Council.—(1)  The  Central  Government  shall,  by  notification, 
establish with effect from such date as it may specify in that notification, the Central Consumer Protection 
Council to be known as the Central Council. 

(2)  The  Central  Council  shall  be  an  advisory  council  and  consist  of  the  following  members, 

namely:— 

(a)  the  Minister-in-charge  of  the  Department  of  Consumer  Affairs  in  the  Central  Government, 

who shall be the Chairperson; and 

(b) such number of other official or non-official members representing such interests as may be 

prescribed. 

4. Procedure for meetings of Central Council.—(1) The Central Council shall meet as and when 

necessary, but at least one meeting of the Council shall be held every year. 

(2) The Central Council shall meet at such time and place as the Chairperson may think fit and shall 

observe such procedure in regard to the transaction of its business as may be prescribed. 

5.  Objects  of  Central  Council.—The  objects  of  the  Central  Council  shall  be  to  render  advice  on 

promotion and protection of the consumers' rights under this Act. 

6.  State  Consumer  Protection  Councils.—(1)  Every  State  Government  shall,  by  notification, 
establish with effect from such date as it may specify in such notification, a State Consumer Protection 
Council for such State to be known as the State Council. 

(2) The State Council shall be an advisory council and consist of the following members, namely:— 

(a)  the  Minister-in-charge  of  Consumer  Affairs  in  the  State  Government  who  shall  be  the 

Chairperson; 

(b) such number of other official or non-official members representing such interests as may be 

prescribed; 

(c)  such  number  of  other  official  or  non-official  members,  not  exceeding  ten,  as  may  be 

nominated by the Central Government. 

(3) The State Council shall meet as and when necessary but not less than two meetings shall be held 

every year. 

(4) The State Council shall meet at such time and place as the Chairperson may think fit and shall 

observe such procedure in regard to the transaction of its business, as may be prescribed. 

7.  Objects  of  State  Council.—The  objects  of  every  State  Council  shall  be  to  render  advice  on 

promotion and protection of consumer rights under this Act within the State. 

8.  District  Consumer  Protection  Council.—(1)  The  State  Government  shall,  by  notification, 
establish  for  every  District  with  effect  from  such  date  as  it  may  specify  in  such  notification,  a  District 
Consumer Protection Council to be known as the District Council. 

(2)  The  District  Council  shall  be  an  advisory  council  and  consist  of  the  following  members, 

namely:— 

12 

 
(a) the Collector of the district (by whatever name called), who shall be the Chairperson; and 

(b) such number of other official and non-official members representing such interests as may be 

prescribed. 

(3) The  District  Council  shall  meet  as  and  when  necessary  but  not less  than  two  meetings  shall  be 

held every year. 

(4) The District Council shall meet at such time and place within the district as the Chairperson may 
think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed. 

9. Objects of District Council.—The objects of every District Council shall be to render advice on 

promotion and protection of consumer rights under this Act within the district.  

CHAPTER III 

CENRAL CONSUMER PROTECTION AUTHORITY 

10.  Establishment  of  Central  Consumer  Protection  Authority.—(1)  The  Central  Government 
shall, by notification, establish with effect from such date as it may specify in that notification, a Central 
Consumer  Protection  Authority  to  be  known  as  the  Central  Authority  to  regulate  matters  relating  to 
violation of rights of consumers, unfair trade practices and false or misleading advertisements which are 
prejudicial  to  the  interests  of  public  and  consumers  and  to  promote,  protect  and  enforce  the  rights  of 
consumers as a class. 

(2)  The  Central  Authority  shall  consist  of  a  Chief  Commissioner  and  such  number  of  other 
Commissioners as may be prescribed, to be appointed by the Central Government to exercise the powers 
and discharge the functions under this Act. 

(3) The headquarters of the Central Authority shall be at such place in the National Capital Region of 
Delhi, and it shall have regional and other offices in any other place in India as the Central Government 
may decide. 

11. Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners.—
The  Central  Government  may,  by  notification,  make  rules  to  provide  for  the  qualifications  for 
appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, 
resignation,  removal  and  other  terms  and  conditions  of  the  service  of  the  Chief  Commissioner  and 
Commissioners of the Central Authority. 

12. Vacancy, etc., not to invalidate proceedings  of Central Authority.—No act or proceeding of 

the Central Authority shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Central Authority; or 

(b)  any  defect  in  the  appointment  of  a  person  acting  as  the  Chief  Commissioner  or  as  a 

Commissioner; or 

(c) any irregularity in the procedure of the Central Authority not affecting the merits of the case. 

13. Appointment of officers, experts, professionals and other employees of Central Authority.—
(1)  The  Central  Government  shall  provide  the  Central  Authority  such  number  of  officers  and  other 
employees as it considers necessary for the efficient performance of its functions under this Act. 

(2)  The  salaries  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  of,  the 
officers and other employees of the Central Authority appointed under this Act shall be such as may be 
prescribed. 

(3)  The  Central  Authority  may  engage,  in  accordance  with  the  procedure  specified  by  regulations, 
such  number  of  experts  and  professionals  of  integrity  and  ability,  who  have  special  knowledge  and 
experience  in  the  areas  of  consumer  rights  and  welfare,  consumer  policy,  law,  medicine,  food  safety, 
health,  engineering,  product  safety,  commerce,  economics,  public  affairs  or  administration,  as  it  deems 
necessary to assist it in the discharge of its functions under this Act. 

13 

 
14. Procedure of Central Authority. —(1) The Central Authority shall regulate the procedure for 
transaction  of  its  business  and  allocation  of  its  business  amongst  the  Chief  Commissioner  and 
Commissioners as may be specified by regulations. 

(2) The Chief Commissioner shall have the powers of general superintendence, direction and control 

in respect of all administrative matters of the Central Authority: 

Provided  that  the  Chief  Commissioner  may  delegate  such  of  his  powers  relating  to  administrative 
matters of the Central Authority, as he may think fit, to any Commissioner (including Commissioner of a 
regional office) or any other officer of the Central Authority. 

15. Investigation Wing.—(1) The Central Authority shall have an Investigation Wing headed by a 
Director-General for the purpose of conducting inquiry or investigation under this Act as may be directed 
by the Central Authority. 

(2)  The  Central  Government  may  appoint  a  Director-General  and  such  number  of  Additional 
Director-General, Director, Joint Director, Deputy Director and Assistant Director, from amongst persons 
who  have  experience  in  investigation  and  possess  such  qualifications,  in  such  manner,  as  may  be 
prescribed. 

(3)  Every  Additional  Director-General,  Director,  Joint  Director,  Deputy  Director  and  Assistant 
Director shall exercise his powers, and discharge his functions, subject to the general control, supervision 
and direction of the Director-General. 

(4) The Director-General may delegate all or any of his powers to the Additional Director-General or 
Director, Joint Director or Deputy Director or Assistant Director, as the case may be, while conducting 
inquiries or investigations under this Act. 

(5) The inquiries or the investigations made by the Director-General shall be submitted to the Central 

Authority in such form, in such manner and within such time, as may be specified by regulations. 

16.    Power  of  District  Collector.—The  District  Collector  (by  whatever  name  called)  may,  on  a 
complaint  or  on  a  reference  made  to  him  by  the  Central  Authority  or  the  Commissioner  of  a  regional 
office,  inquire  into  or  investigate  complaints  regarding  violation  of  rights  of  consumers  as  a  class,  on 
matters  relating  to  violations  of  consumer  rights,  unfair  trade  practices  and  false  or  misleading 
advertisements,  within  his  jurisdiction  and  submit  his  report  to  the  Central  Authority  or  to  the 
Commissioner of a regional office, as the case may be. 

17. Complaints to authorities.—A complaint relating to violation of consumer rights or unfair trade 
practices  or  false  or  misleading  advertisements  which  are  prejudicial to  the interests  of consumers  as a 
class, may be forwarded either in writing or in electronic mode, to any one of the authorities, namely, the 
District Collector or the Commissioner of regional office or the Central Authority. 

18. Powers and functions of Central Authority.—(1) The Central Authority shall— 

(a)  protect,  promote  and  enforce  the  rights  of  consumers  as  a  class,  and  prevent  violation  of 

consumers rights under this Act; 

(b)  prevent  unfair  trade  practices  and  ensure  that  no  person  engages  himself  in  unfair  trade 

practices; 

(c)  ensure  that  no  false  or  misleading  advertisement  is  made  of  any  goods  or  services  which 

contravenes the provisions of this Act or the rules or regulations made thereunder; 

(d)  ensure  that  no  person  takes  part  in  the  publication  of  any  advertisement  which  is  false  or 

misleading. 

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the Central 

Authority may, for any of the purposes aforesaid,-- 

(a) inquire or cause an inquiry or investigation to be made into violations of consumer rights or 
unfair trade practices, either suo motu or on a complaint received or on the directions from the Central 
Government; 

14 

 
(b)  file  complaints  before  the  District  Commission,  the  State  Commission  or  the  National 

Commission, as the case may be, under this Act; 

(c) intervene in any proceedings before the District Commission or the State Commission or the 
National Commission, as the case may be, in respect of any allegation of violation of consumer rights 
or unfair trade practices; 

(d)  review  the  matters  relating  to,  and  the  factors  inhibiting  enjoyment  of,  consumer  rights, 
including safeguards provided for the protection of consumers under any other law for the time being 
in force and recommend appropriate remedial measures for their effective implementation; 

(e) recommend adoption of international covenants and best international practices on consumer 

rights to ensure effective enforcement of consumer rights; 

(f) undertake and promote research in the field of consumer rights; 

(g) spread and promote awareness on consumer rights; 

(h)  encourage  non-Governmental  organisations  and  other  institutions  working  in  the  field  of 

consumer rights to co-operate and work with consumer protection agencies; 

(i) mandate the use of unique and universal goods identifiers in such goods, as may be necessary, 

to prevent unfair trade practices and to protect consumers' interest; 

(j)  issue  safety  notices  to  alert  consumers  against  dangerous  or  hazardous  or  unsafe  goods  or 

services; 

(k)  advise  the  Ministries  and  Departments  of  the  Central  and  State  Governments  on  consumer 

welfare measures; 

(l) issue necessary guidelines to prevent unfair trade practices and protect consumers' interest.  

19. Power of Central Authority to refer matter for investigation or to other Regulator.—(1) The 
Central  Authority  may,  after  receiving  any  information  or  complaint  or  directions  from  the  Central 
Government or of its own motion, conduct or cause to be conducted a preliminary inquiry as to whether 
there exists a prima facie case of violation of consumer rights or any unfair trade practice or any false or 
misleading advertisement, by any person, which is prejudicial to the public interest or to the interests of 
consumers and if it is satisfied that there exists a prima facie case, it shall cause investigation to be made 
by the Director-General or by the District Collector. 

(2) Where, after preliminary inquiry, the Central Authority is of the opinion that the matter is to be 
dealt with by a Regulator established under any other law for the time being in force, it may refer such 
matter to the concerned Regulator along with its report. 

(3)  For  the  purposes  of  investigation  under  sub-section  (1),  the  Central  Authority,  the  Director 
General or the District Collector may call upon a person referred to in sub-section (1) and also direct him 
to produce any document or record in his possession. 

20. Power of Central Authority to recall goods, etc.—Where the Central Authority is satisfied on 
the basis of investigation that there is sufficient evidence to show violation of consumer rights or unfair 
trade practice by a person, it may pass such order as may be necessary, including— 

(a) recalling of goods or withdrawal of services which are dangerous, hazardous or unsafe; 

(b) reimbursement of the prices of goods or services so recalled to purchasers of such goods or 

services; and 

(c) discontinuation of practices which are unfair and prejudicial to consumers' interest: 

Provided that the Central Authority shall give the person an opportunity of being heard before passing 

an order under this section. 

21.  Power  of  Central  Authority  to  issue  directions  and  penalties  against  false  or  misleading 
advertisements.—(1) Where the Central Authority is satisfied after investigation that any advertisement 
is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer 

15 

 
rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser 
or publisher, as the case may be, to discontinue such advertisement or to modify the same in such manner 
and within such time as may be specified in that order. 

(2) Notwithstanding the order passed under sub-section (1), if the Central Authority is of the opinion 
that  it  is  necessary  to  impose  a  penalty  in  respect  of  such  false  or  misleading  advertisement,  by  a 
manufacturer or an endorser, it may, by order, impose on manufacturer or endorser a penalty which may 
extend to ten lakh rupees: 

Provided  that  the  Central  Authority  may,  for  every  subsequent  contravention  by  a  manufacturer  or 

endorser, impose a penalty, which may extend to fifty lakh rupees. 

(3) Notwithstanding any order under sub-sections (1) and (2), where the Central Authority deems it 
necessary,  it  may,  by  order,  prohibit  the  endorser  of  a  false  or  misleading  advertisement  from  making 
endorsement of any product or service for a period which may extend to one year: 

Provided that the Central Authority may, for every subsequent contravention, prohibit such endorser 
from  making  endorsement  in  respect  of  any  product or  service for a  period  which  may  extend  to three 
years. 

(4) Where the Central Authority is satisfied after investigation that any person is found to publish, or 
is a party to the publication of, a misleading advertisement, it may impose on such person a penalty which 
may extend to ten lakh rupees. 

(5)  No  endorser  shall  be  liable  to  a  penalty  under  sub-sections  (2)  and  (3)  if  he  has  exercised  due 
diligence to verify the veracity of the claims made in the advertisement regarding the product or service 
being endorsed by him. 

(6) No person shall be liable to such penalty if he proves that he had published or arranged for the 

publication of such advertisement in the ordinary course of his business: 

Provided that no such defence shall be available to such person if he had previous knowledge of the 

order passed by the Central Authority for withdrawal or modification of such advertisement. 

(7) While determining the penalty under this section, regard shall be had to the following, namely: — 

(a) the population and the area impacted or affected by such offence; 

(b) the frequency and duration of such offence; 

(c) the vulnerability of the class of persons likely to be adversely affected by such offence; and 

(d) the gross revenue from the sales effected by virtue of such offence. 

(8) The Central Authority shall give the person an opportunity of being heard before an order under 

this section is passed. 

22.  Search  and  seizure.—(1)  For  the  purpose  of  conducting  an  investigation  after  preliminary 
inquiry under sub-section (1) of section 19, the Director-General or any other officer authorised by him in 
this  behalf, or the  District Collector, as the  case  may  be,  may,  if he  has any  reason to believe that  any 
person  has  violated  any  consumer  rights  or  committed  unfair  trade  practice  or  causes  any  false  or 
misleading advertisement to be made, shall,-- 

(a) enter at any reasonable time into any such premises and search for any document or record or 

article or any other form of evidence and seize such document, record, article or such evidence; 

(b) make a note or an inventory of such record or article; or 

(c) require any person to produce any record, register or other document or article. 

(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure 

shall apply, as far as may be, for search and seizure under this Act. 

(3)  Every  document,  record  or  article  seized  under  clause  (a)  of  sub-section  (1)  or  produced  under 
clause  (c)  of  that  sub-section  shall  be  returned  to  the  person,  from  whom  they  were  seized  or  who 

16 

 
produced the same, within a period of twenty days of the date of such seizure or production, as the case 
may  be,  after  copies  thereof  or  extracts  therefrom  certified  by  that  person,  in  such  manner  as  may  be 
prescribed, have been taken. 

(4)  Where  any  article  seized  under  sub-section  (1)  are  subject  to  speedy  or  natural  decay,  the 

Director-General or such other officer may dispose of the article in such manner as may be prescribed. 

(5) In the case of articles other than the articles referred to in sub-section (4), provisions contained in 

clause (c) of sub-section (2) of section 38 shall mutatis mutandis apply in relation to analysis or tests. 

23.  Designation  of  any  statutory  authority  or  body  to  function  as  Central  Authority.—The 
Central Government may,  if it considers necessary, by notification, designate any statutory authority or 
body to exercise the powers and perform the functions of the Central Authority referred to in section 10. 

24. Appeal.—A person aggrieved by any order passed by the Central Authority under sections 20 and 
21 may file an appeal to the National Commission within a period of thirty days from the date of receipt 
of such order. 

25. Grants by Central Government.—The Central Government may, after due appropriation made 
by Parliament by law in this behalf, make to the Central Authority grants of such sums of money as that 
Government may think fit for being utilised for the purposes of this Act. 

26.  Accounts  and  audit.—(1)  The  Central  Authority  shall  maintain  proper  accounts  and  other 
relevant  records  and  prepare  an  annual  statement  of  accounts  in  such  form  and  manner  as  may  be 
prescribed in consultation with the Comptroller and Auditor-General of India. 

(2) The accounts of the Central Authority shall be audited by the Comptroller and Auditor-General of 
India at such intervals as may be specified by him and any expenditure incurred in connection with such 
audit shall be payable by the Central Authority to the Comptroller and Auditor-General of India. 

(3)  The  Comptroller  and  Auditor-General  of  India  or  any  other  person  appointed  by  him  in 
connection with the audit of the accounts of the Central Authority shall have the same rights, privileges 
and  authority  in  connection  with  such  audit  as  the  Comptroller  and  Auditor-General  of  India  generally 
has, in  connection  with the  audit  of the  Government  accounts and, in  particular,  shall have  the right  to 
demand the production of books, accounts, connected vouchers and other documents and papers and to 
inspect any of the offices of the Central Authority. 

(4)  The  accounts  of  the  Central  Authority  as  certified  by  the  Comptroller  and  Auditor-General  of 
India or any other person appointed by him in this behalf together with the audit report thereon shall be 
forwarded annually to the Central Government which shall cause the same to be laid before each House 
of Parliament. 

27. Furnishing of annual reports, etc.—(1) The Central Authority shall prepare once in every year, 
in such form, manner and at such time as may be prescribed, an annual report giving full account of its 
activities during the previous year and such other reports and returns, as may be directed, and copies of 
such report and returns shall be forwarded to the Central Government. 

(2) A copy of the annual report received under sub-section (1) shall be laid, as soon as may be after it 

is received, before each House of Parliament. 

CHAPTER IV 

CONSUMER DISPUTER REDRESSAL COMMISSION 

28.  Establishment  of  District  Consumer  Disputes  Redressal  Commission.—(1)  The  State 
Government shall, by notification, establish a District Consumer Disputes Redressal Commission, to be 
known as the District Commission, in each district of the State: 

Provided that the State Government may, if it deems fit, establish more than one District Commission 

in a district. 

(2) Each District Commission shall consist of— 

(a) a President; and 

17 

 
(b)  not  less  than  two  and  not  more  than  such  number  of  members  as  may  be  prescribed,  in 

consultation with the Central Government. 

29.  Qualifications,  etc.,  of  President  and  members  of  District  Commission.—The  Central 
Government  may,  by  notification,  make  rules  to  provide  for  the  qualifications,  method  of  recruitment, 
procedure for appointment, term of office, resignation and removal of the President and members of the 
District Commission. 

30. Salaries, allowances and other terms and conditions of service of President and members of 
District  Commission.—The  State  Government  may,  by  notification,  make  rules  to  provide for  salaries 
and allowances and other terms and conditions of service of the President, and members of the District 
Commission. 

31. Transitional provision.—Any person appointed as President or, as the case may be, a member of 
the District Commission immediately before the commencement of this Act shall hold office as such as 
President  or,  as  the  case  may  be,  as  member  till  the  completion  of  his  term  for  which  he  has  been 
appointed. 

32. Vacancy in office of member of District Commission.—If, at any time, there is a vacancy in the 
office of the President or member of a District Commission, the State Government may, by notification, 
direct— 

(a)  any  other  District  Commission  specified  in  that  notification  to  exercise  the  jurisdiction  in 

respect of that district also; or 

(b) the President or a member of any other District Commission specified in that notification to 
exercise  the  powers  and  discharge  the  functions  of  the  President  or  member  of  that  District 
Commission also. 

33.  Officers  and  other  employees  of  District  Commission.—(1)  The  State  Government  shall 
provide the District Commission with such officers and other employees as may be required to assist the 
District Commission in the discharge of its functions. 

(2) The officers and other employees of the District Commission shall discharge their functions under 

the general superintendence of the President of the District Commission. 

(3)  The  salaries  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  of,  the 

officers and other employees of the District Commission shall be such as may be prescribed. 

34.  Jurisdiction  of  District  Commission.—(1)  Subject  to  the  other  provisions  of  this  Act,  the 
District  Commission  shall  have  jurisdiction  to  entertain  complaints  where  the  value  of  the  goods  or 
services paid as consideration does not exceed one crore rupees: 

Provided that where the Central Government deems it necessary so to do, it may prescribe such other 

value, as it deems fit. 

(2)  A  complaint  shall  be  instituted  in  a  District  Commission  within  the  local  limits  of  whose 

jurisdiction,— 

(a) the opposite party or each of the opposite parties, where there are more than one, at the time 
of the institution of the complaint, ordinarily resides or carries on business or has a branch office or 
personally works for gain; or 

(b) any of the opposite parties, where there are more than one, at the time of the institution of the 
complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally 
works for gain, provided that in such case the permission of the District Commission is given; or 

(c) the cause of action, wholly or in part, arises; or 

(d) the complainant resides or personally works for gain. 

18 

 
(3) The District Commission shall ordinarily function in the district headquarters and may perform its 
functions at such other place in the district, as the State Government may, in consultation with the State 
Commission, notify in the Official Gazette from time to time. 

35. Manner in which complaint shall be made.—(1) A complaint, in relation to any goods sold or 
delivered or agreed to be sold or delivered or any service provided or agreed to be provided, may be filed 
with a District Commission by— 

(a) the consumer,— 

(i) to whom such goods are sold or delivered or agreed to be sold or delivered or such service 

is provided or agreed to be provided; or 

(ii) who alleges unfair trade practice in respect of such goods or service; 

(b) any recognised consumer association, whether the consumer to whom such goods are sold or 
delivered or agreed to be sold or delivered or such service is provided or agreed to be provided, or 
who alleges unfair trade practice in respect of such goods or service, is a member of such association 
or not; 

(c) one or more consumers, where there are numerous consumers having the same interest, with 
the  permission  of  the  District  Commission,  on  behalf  of,  or  for  the  benefit  of,  all  consumers  so 
interested; or 

(d) the Central Government, the Central Authority or the State Government, as the case may be: 

Provided that the complaint under this sub-section may be filed electronically in such manner as may 

be prescribed. 

Explanation.—For  the  purposes  of  this  sub-section,  "recognised  consumer  association"  means  any 

voluntary consumer association registered under any law for the time being in force. 

(2) Every complaint filed under sub-section (1) shall be accompanied with such fee and payable in 

such manner, including electronic form, as may be prescribed. 

36.  Proceedings  before  District  Commission.—(1)  Every  proceeding  before  the  District 
Commission  shall  be  conducted  by  the  President  of  that  Commission  and  atleast  one  member  thereof, 
sitting together: 

Provided that where a member, for any reason, is unable to conduct a proceeding till it is completed, 
the President and the other member shall continue the proceeding from the stage at which it was last heard 
by the previous member. 

(2) On receipt of a complaint made under section 35, the District Commission may, by order, admit 

the complaint for being proceeded with or reject the same: 

Provided that a complaint shall not be rejected under this section unless an opportunity of being heard 

has been given to the complainant: 

Provided further that the admissibility of the complaint shall ordinarily be decided within twenty-one 

days from the date on which the complaint was filed. 

(3) Where the District Commission does not decide the issue of admissibility of the complaint within 

the period so specified, it shall be deemed to have been admitted. 

37.  Reference to mediation.—(1) At the first hearing of the complaint after its admission, or at any 
later stage, if it appears to the District Commission that there exists elements of a settlement which may 
be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in 
writing,  within  five  days,  consent  to  have  their  dispute  settled  by  mediation  in  accordance  with  the 
provisions of Chapter V. 

(2) Where the parties agree for settlement by mediation and give their consent in writing, the District 
Commission shall, within five days of receipt of such consent, refer the matter for mediation, and in such 
case, the provisions of Chapter V, relating to mediation, shall apply. 

19 

 
38. Procedure on admission of complaint.—(1) The District Commission shall, on admission of a 
complaint,  or  in  respect  of  cases  referred  for  mediation  on  failure  of  settlement  by  mediation,  proceed 
with such complaint. 

(2) Where the complaint relates to any goods, the District Commission shall,— 

(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission 
to the opposite party mentioned in the complaint directing him to give his version of the case within a 
period of thirty days or such extended period not exceeding fifteen days as may be granted by it; 

(b)  if  the  opposite  party  on  receipt  of  a  complaint  referred  to  him  under  clause  (a)  denies  or 
disputes the allegations contained in the complaint, or omits or fails to take any action to represent his 
case within the time given by the District Commission, proceed to settle the consumer dispute in the 
manner specified in clauses (c) to (g); 

(c)  if  the  complaint  alleges  a  defect  in  the  goods  which  cannot  be  determined  without  proper 
analysis  or  test  of  the  goods,  obtain  a  sample  of  the  goods  from  the  complainant,  seal  it  and 
authenticate it in the manner as may be prescribed and refer the sample so sealed to the appropriate 
laboratory along with a direction that such laboratory to make an analysis or test, whichever may be 
necessary,  with  a  view  to  finding  out  whether  such  goods  suffer  from  any  defect  alleged  in  the 
complaint  or  from  any  other  defect  and  to  report  its  findings  thereon  to  the  District  Commission 
within  a  period  of forty-five  days  of  the  receipt of the  reference  or  within  such  extended  period  as 
may be granted by it; 

(d)  before  any  sample  of  the  goods  is  referred  to  any  appropriate  laboratory  under  clause  (c), 
require the complainant to deposit to the credit of the Commission such fees as may be specified, for 
payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the 
goods in question; 

(e) remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable 
it  to  carry  out  the  analysis  or  test  mentioned  in  clause  (c)  and  on  receipt  of  the  report  from  the 
appropriate laboratory, it shall forward a copy of the report along with such remarks as it may feel 
appropriate to the opposite party; 

(f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or 
disputes  the  correctness  of  the  methods  of  analysis  or  test  adopted  by  the  appropriate  laboratory, 
require the opposite party or the complainant to submit in writing his objections with regard to the 
report made by the appropriate laboratory; 

(g) give a reasonable opportunity to the complainant as well as the opposite party of being heard 
as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the 
objection made in relation thereto under clause (f) and issue an appropriate order under section 39. 

(3) The District Commission shall, if the complaint admitted by it under sub-section (2) of section 36 
relates to goods in respect of which the procedure specified in sub-section (2) cannot be followed, or if 
the complaint relates to any services,— 

(a) refer a copy of such complaint to the opposite party directing him to give his version of the 
case  within  a  period  of  thirty  days  or  such  extended  period  not  exceeding  fifteen  days  as  may  be 
granted by the District Commission; 

(b) if the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) 
denies or disputes the allegations contained in the complaint, or omits or fails to take any action to 
represent  his  case  within  the  time  given  by  the  District  Commission,  it  shall  proceed  to  settle  the 
consumer dispute— 

(i) on the basis of evidence brought to its notice by the complainant and the opposite party, if 

the opposite party denies or disputes the allegations contained in the complaint, or 

(ii)  ex  parte  on  the  basis  of  evidence  brought  to  its  notice  by  the  complainant,  where  the 
opposite party omits or fails to take any action to represent his case within the time given by the 
Commission; 

20 

 
(c) decide the complaint on merits if the complainant fails to appear on the date of hearing. 

(4) For the purposes of sub-sections (2) and (3), the District Commission may, by order, require an 
electronic service provider to provide such information, documents or records, as may be specified in that 
order. 

(5)  No  proceedings  complying  with  the  procedure  laid  down  in [sub-sections  (2)  and  (3)]  shall  be 
called in question in any court on the ground that the principles of natural justice have not been complied 
with. 

(6)  Every  complaint  shall  be  heard  by  the  District  Commission  on  the  basis  of  affidavit  and 

documentary evidence placed on record: 

Provided  that  where  an  application  is  made  for  hearing  or  for  examination  of  parties  in  person  or 
through  video  conferencing,  the  District  Commission  may,  on  sufficient  cause  being  shown,  and  after 
recording its reasons in writing, allow the same. 

(7) Every complaint shall be disposed of as expeditiously as possible and endeavour shall be made to 
decide the complaint within a period of three months from the date of receipt of notice by opposite party 
where  the  complaint  does  not  require  analysis  or  testing  of  commodities  and  within  five  months  if  it 
requires analysis or testing of commodities: 

Provided that no adjournment shall ordinarily be granted by the District Commission unless sufficient 
cause  is  shown  and  the  reasons  for  grant  of  adjournment  have  been  recorded  in  writing  by  the 
Commission: 

Provided further that the District Commission shall make such orders as to the costs occasioned by 

the adjournment as may be specified by regulations: 

Provided  also  that  in  the  event  of  a  complaint  being  disposed  of  after  the  period  so  specified,  the 
District Commission shall record in writing, the reasons for the same at the time of disposing of the said 
complaint. 

(8)  Where  during  the  pendency  of  any  proceeding  before  the  District  Commission,  if  it  appears 

necessary, it may pass such interim order as is just and proper in the facts and circumstances of the case. 

(9) For the purposes of this section, the District Commission shall have the same powers as are vested 
in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of  the 
following matters, namely:— 

(a) the summoning and enforcing the attendance of any defendant or witness and examining the 

witness on oath; 

(b) requiring the discovery and production of any document or other material object as evidence; 

(c) receiving of evidence on affidavits; 

(d)  the  requisitioning  of  the  report  of  the  concerned  analysis  or  test  from  the  appropriate 

laboratory or from any other relevant source; 

(e) issuing of commissions for the examination of any witness, or document; and 

(f) any other matter which may be prescribed by the Central Government. 

(10)  Every  proceeding  before the  District  Commission  shall  be  deemed  to be  a judicial  proceeding 
within  the  meaning  of section  193 and  228 of  the  Indian  Penal  Code  (45  of  1860),  and  the  District 
Commission shall be deemed to be a criminal court for the purposes of section 195 and Chapter XXVI of 
the Code of Criminal Procedure, 1973 (2 of 1974). 

(11) Where the complainant is a consumer referred to in sub-clause (v) of clause (5) of section 2, the 
provisions of Order I Rule 8 of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall 
apply subject to the modification that every reference therein to a suit or decree shall be construed as a 
reference to a complaint or the order of the District Commission thereon. 

21 

 
(12) In the event of death of a complainant who is a consumer or of the opposite party against whom 
the  complaint  has  been  filed,  the  provisions  of  Order  XXII  of  the  First  Schedule  to  the  Code  of  Civil 
Procedure,  1908  (5  of  1908)  shall  apply  subject  to  the  modification  that  every  reference  therein  to  the 
plaintiff and the defendant shall be construed as reference to a complainant or the opposite party, as the 
case may be. 

39.  Findings  of  District  Commission.—(1)  Where  the  District  Commission  is  satisfied  that  the 
goods  complained  against  suffer  from  any  of  the  defects  specified  in  the  complaint  or  that  any  of  the 
allegations  contained  in  the  complaint  about  the  services  or  any  unfair  trade  practices,  or  claims  for 
compensation under product liability are proved, it shall issue an order to the opposite party directing him 
to do one or more of the following, namely:— 

(a) to remove the defect pointed out by the appropriate laboratory from the goods in question; 

(b)  to  replace  the  goods  with  new  goods  of  similar  description  which  shall  be  free  from  any 

defect; 

(c)  to  return  to  the  complainant  the  price,  or,  as  the  case  may  be,  the  charges  paid  by  the 

complainant along with such interest on such price or charges as may be decided; 

(d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or 

injury suffered by the consumer due to the negligence of the opposite party: 

Provided  that  the  District  Commission  shall  have  the  power  to  grant  punitive  damages  in  such 

circumstances as it deems fit; 

(e)  to  pay  such  amount  as  may  be  awarded  by  it  as  compensation  in  a  product  liability  action 

under Chapter VI; 

(f) to remove the defects in goods or deficiencies in the services in question; 

(g) to discontinue the unfair trade practice or restrictive trade practice and not to repeat them; 

(h) not to offer the hazardous or unsafe goods for sale; 

(i) to withdraw the hazardous goods from being offered for sale; 

(j)  to  cease  manufacture  of  hazardous  goods  and  to  desist  from  offering  services  which  are 

hazardous in nature; 

(k) to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been 

suffered by a large number of consumers who are not identifiable conveniently: 

Provided that the minimum amount of sum so payable shall not be less than twenty-five per cent. 
of the value of such defective goods sold or service provided, as the case may be, to such consumers; 

(l)  to  issue  corrective  advertisement  to  neutralise  the  effect  of  misleading  advertisement  at  the 

cost of the opposite party responsible for issuing such misleading advertisement; 

(m) to provide for adequate costs to parties; and 

(n) to cease and desist from issuing any misleading advertisement. 

(2)  Any  amount  obtained  under  sub-section  (1)  shall  be  credited  to  such  fund  and  utilised  in  such 

manner as may be prescribed. 

(3)  In  any  proceeding  conducted  by  the  President  and  a  member  and  if  they  differ  on  any  point  or 
points, they shall state the point or points on which they differ and refer the same to another member for 
hearing  on  such  point  or  points  and  the  opinion  of  the  majority  shall  be  the  order  of  the  District 
Commission: 

Provided that the other member shall give his opinion on such point or points referred to him within a 

period of one month from the date of such reference. 

(4)  Every  order  made  by  the  District  Commission  under  sub-section  (1)  shall  be  signed  by  the 

President and the member who conducted the proceeding: 

22 

 
Provided that where the order is made as per majority opinion under sub-section (3), such order shall 

also be signed by the other member. 

40.  Review  by  District  Commission  in  certain  cases.—The  District  Commission  shall  have  the 
power to review any of the order passed by it if there is an error apparent on the face of the record, either 
of its own motion or on an application made by any of the parties within thirty days of such order. 

41. Appeal against order of District Commission.—Any person aggrieved by an order made by the 
District Commission may prefer an appeal against such order to the State Commission on the grounds of 
facts or law within a period of forty-five days from the date of the order, in such form and manner, as may 
be prescribed: 

Provided  that  the  State  Commission  may  entertain  an  appeal  after  the  expiry  of  the  said  period  of 

forty-five days, if it is satisfied that there was sufficient cause for not filing it within that period: 

Provided further that no appeal by a person, who is required to pay any amount in terms of an order of 
the District Commission, shall be entertained by the State Commission unless the appellant has deposited 
fifty per cent. of that amount in the manner as may be prescribed: 

Provided also that no appeal shall lie from any order passed under sub-section (1) of section 81 by the 

District Commission pursuant to a settlement by mediation under section 80. 

42.  Establishment  of  State  Consumer  Disputes  Redressal  Commission.—(1)  The  State 
Government  shall,  by  notification,  establish  a  State  Consumer  Disputes  Redressal  Commission,  to  be 
known as the State Commission, in the State. 

(2) The  State  Commission  shall  ordinarily function  at the  State  capital  and perform  its  functions at 
such other places as the State Government may in consultation with the State Commission notify in the 
Official Gazette: 

Provided  that  the  State  Government  may,  by  notification,  establish  regional  benches  of  the  State 

Commission, at such places, as it deems fit. 

(3) Each State Commission shall consist of— 

(a) a President; and 

(b)  not  less  than  four  or  not  more  than  such  number  of  members  as  may  be  prescribed  in 

consultation with the Central Government. 

43.  Qualifications,  etc.,  of  President  and  members  of  State  Commission.—The  Central 
Government may, by notification, make rules to provide for the qualification for appointment, method of 
recruitment,  procedure  of  appointment,  term  of  office,  resignation  and  removal  of  the  President  and 
members of the State Commission. 

44. Salaries, allowances and other terms and conditions of service of President and members of 
State Commission.—The State Government may, by notification, make rules to provide for salaries and 
allowances  and  other  terms  and  conditions  of  service  of  the  President  and  members  of  the  State 
Commission. 

45. Transitional provision.—Any person appointed as President or, as the case may be, a member of 
the  State  Commission  immediately  before  the  commencement  of  this  Act  shall  hold  office  as  such,  as 
President or member, as the case may be, till the completion of his term. 

46. Officers and employees of State Commission.—(1) The State Government shall determine the 
nature and categories of the officers and other employees required to assist the State Commission in the 
discharge of its functions and provide the Commission with such officers and other employees as it may 
think fit. 

(2) The officers and other employees of the State Commission shall discharge their functions under 

the general superintendence of the President. 

(3)  The  salaries  and  allowances  payable  to  and  the  other  terms  and  conditions  of  service  of,  the 

officers and other employees of the State Commission shall be such as may be prescribed. 

23 

 
47.  Jurisdiction  of  State  Commission.—(1)  Subject  to  the  other  provisions  of  this  Act,  the  State 

Commission shall have jurisdiction— 

(a) to entertain— 

(i) complaints where the value of the goods or services paid as consideration, exceeds rupees 

one crore, but does not exceed rupees ten crore: 

Provided  that  where the  Central  Government  deems  it  necessary  so  to  do,  it  may  prescribe 

such other value, as it deems fit; 

(ii)  complaints  against  unfair  contracts,  where  the  value  of  goods  or  services  paid  as 

consideration does not exceed ten crore rupees; 

(iii) appeals against the orders of any District Commission within the State; and 

(b) to call for the records and pass appropriate orders in any consumer dispute  which is pending 
before or has been decided by any District Commission within the State, where it appears to the State 
Commission that such District Commission has exercised a jurisdiction not vested in it by law, or has 
failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with 
material irregularity. 

(2)  The  jurisdiction,  powers  and  authority  of  the  State  Commission  may  be  exercised  by  Benches 
thereof, and a Bench may be constituted by the President with one or more members as the President may 
deem fit: 

Provided that the senior-most member shall preside over the Bench. 

(3)  Where  the  members  of  a  Bench  differ  in  opinion  on  any  point,  the  points  shall  be  decided 
according to the opinion of the majority, if there is a majority, but if the members are equally divided, 
they shall state the point or points on which they differ, and make a reference to the President who shall 
either hear the point or points himself or refer the case for hearing on such point or points by one or more 
of the other members and such point or points shall be decided according to the opinion of the majority of 
the members who have heard the case, including those who first heard it: 

Provided that the President or the other members, as the case may be, shall give opinion on the point 

or points so referred within a period of one month from the date of such reference. 

(4) A complaint shall be instituted in a State Commission within the limits of whose jurisdiction,-- 

(a) the opposite party or each of the opposite parties, where there are more than one, at the time 
of the institution of the complaint, ordinarily resides or carries on business or has a branch office or 
personally works for gain; or 

(b) any of the opposite parties, where there are more than one, at the time of the institution of 
the  complaint,  actually  and  voluntarily  resides,  or  carries  on  business  or  has  a  branch  office  or 
personally works for gain, provided in such case, the permission of the State Commission is given; 
or 

(c) the cause of action, wholly or in part, arises; or 

(d) the complainant resides or personally works for gain. 

48.  Transfer  of  cases.—On  the  application  of  the  complainant  or  of  its  own  motion,  the  State 
Commission  may,  at  any  stage  of  the  proceeding,  transfer  any  complaint  pending  before  a  District 
Commission to another District Commission within the State if the interest of justice so requires. 

49. Procedure  applicable to  State  Commission.—(1) The  provisions relating  to  complaints  under 
sections 35, 36, 37, 38 and 39 shall, with such modifications as may be necessary, be applicable to the 
disposal of complaints by the State Commission. 

(2) Without prejudice to the provisions of sub-section (1), the State Commission may also declare any 

terms of contract, which is unfair to any consumer, to be null and void. 

24 

 
50. Review by State Commission in certain cases.—The State Commission shall have the power to 
review any of the order passed by it if there is an error apparent on the face of the record, either of its own 
motion or on an application made by any of the parties within thirty days of such order. 

51.  Appeal  to  National  Commission.—(1)  Any  person  aggrieved  by  an  order  made  by  the  State 
Commission in exercise of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of 
section 47 may prefer an appeal against such order to the National Commission within a period of thirty 
days from the date of the order in such form and manner as may be prescribed: 

Provided  that  the  National  Commission  shall  not  entertain  the  appeal  after  the  expiry  of  the  said 
period of thirty days unless it is satisfied that there was sufficient cause for not filing it within that period: 

Provided further that no appeal by a person, who is required to pay any amount in terms of an order of 
the  State  Commission,  shall  be  entertained  by  the  National  Commission  unless  the  appellant  has 
deposited fifty per cent. of that amount in the manner as may be prescribed. 

(2)  Save  as  otherwise  expressly  provided  under  this  Act  or  by  any  other  law  for  the  time  being  in 
force,  an  appeal  shall  lie  to  the  National  Commission  from  any  order  passed  in  appeal  by  any  State 
Commission, if the National Commission is satisfied that the case involves a substantial question of law. 

(3)  In  an  appeal  involving  a  question  of  law,  the  memorandum  of  appeal  shall  precisely  state  the 

substantial question of law involved in the appeal. 

(4) Where the National Commission is satisfied that a substantial question of law is involved in any 

case, it shall formulate that question and hear the appeal on that question: 

Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the 
National Commission to hear, for reasons to be recorded in writing, the appeal on any other substantial 
question of law, if it is satisfied that the case involves such question of law. 

(5) An appeal may lie to the National Commission under this section from an order passed  ex parte 

by the State Commission. 

52. Hearing of appeal.—An appeal filed before the State Commission or the National Commission, 
as  the  case  may  be,  shall  be  heard  as  expeditiously  as  possible  and  every  endeavour  shall  be  made  to 
dispose of the appeal within a period of ninety days from the date of its admission: 

Provided  that  no  adjournment  shall  ordinarily  be  granted  by  the  State  Commission  or  the  National 
Commission,  as  the  case  may  be,  unless  sufficient  cause  is  shown  and  the  reasons  for  grant  of 
adjournment have been recorded in writing by such Commission: 

Provided  further that  the  State  Commission  or  the  National  Commission,  as the  case  may  be,  shall 

make such orders as to the costs occasioned by the adjournment, as may be specified by regulations: 

Provided also that in the event of an appeal being disposed of after the period so specified, the State 
Commission or the National Commission, as the case may be, shall record in writing the reasons for the 
same at the time of disposing of the said appeal. 

53.  Establishment  of  National  Consumer  Disputes  Redressal  Commission.—(1)  The  Central 
Government shall, by notification, establish a National Consumer Disputes Redressal Commission, to be 
known as the National Commission. 

(2) The National Commission shall ordinarily function at the National Capital Region and perform its 
functions  at  such  other  places  as  the  Central  Government  may  in  consultation  with  the  National 
Commission notify in the Official Gazette: 

Provided  that  the  Central  Government  may,  by  notification,  establish  regional  Benches  of  the 

National Commission, at such places, as it deems fit. 

54. Composition of National Commission.—The National Commission shall consist of— 

(a) a President; and 

(b) not less than four and not more than such number of members as may be prescribed. 

25 

 
55.  Qualifications,  etc.,  of  President  and  members  of  National  Commission.—(1)  The  Central 
Government may, by notification, make rules to provide for qualifications, appointment, term of office, 
salaries and allowances, resignation, removal and other terms and conditions of service of the President 
and members of the National Commission: 

Provided that the President and members of the National Commission shall hold office for such term 
as specified in the rules made by the Central Government but not exceeding five years from the date on 
which he enters upon his office and shall be eligible for re-appointment: 

Provided further that no President or members shall hold office as such after he has attained such age 

as specified in the rules made by the Central Government which shall not exceed,— 

(a) in the case of the President, the age of seventy years; 

(b) in the case of any other member, the age of sixty-seven years. 

1[(1A) Notwithstanding anything contained in sub-section (1), the qualifications, appointment, term of 
office, salaries and allowances, resignation, removal and the other terms and conditions of service of the 
President  and  other  members  of  the  National  Commission  appointed  after  the  commencement  of  the 
Tribunal Reforms Act, 2021, shall be governed by the provisions of the said Act.] 

(2) Neither the salary and allowances nor the other terms and conditions of service of President and 

members of the National Commission shall be varied to his disadvantage after his appointment. 

56. Transitional provision.—The President and every other member appointed immediately before 
the commencement of section 177 of the Finance Act, 2017 (7 of 2017) shall continue to be governed by 
the provisions of the Consumer Protection Act, 1986 (68 of 1986) and the rules made there under as if 
this Act had not come into force. 

57.  Other  officers  and  employees  of  National  Commission.—(1)  The  Central  Government  shall 
provide, in consultation with the President of the National Commission, such number of officers and other 
employees to assist the National Commission in the discharge of its functions as it may think fit. 

(2)  The  officers  and  other  employees  of  the  National  Commission  shall  discharge  their  functions 

under the general superintendence of the President of the National Commission. 

(3)  The  salaries  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  of,  the 

officers and other employees of the National Commission shall be such as may be prescribed. 

58.  Jurisdiction  of  National  Commission.—(1)  Subject  to  the  other  provisions  of  this  Act,  the 

National Commission shall have jurisdiction— 

(a) to entertain— 

(i) complaints where the value of the goods or services paid as consideration exceeds rupees 

ten crore: 

Provided  that  where the  Central  Government  deems  it  necessary  so  to  do,  it  may  prescribe 

such other value, as it deems fit; 

(ii)  complaints  against  unfair  contracts,  where  the  value  of  goods  or  services  paid  as 

consideration exceeds ten crore rupees; 

(iii) appeals against the orders of any State Commission; 

(iv) appeals against the orders of the Central Authority; and 

(b) to call for the records and pass appropriate orders in any consumer dispute which is pending 
before or has been decided by any State Commission where it appears to the National Commission 
that  such  State  Commission  has  exercised  a  jurisdiction  not  vested  in  it  by  law,  or  has  failed  to 
exercise  a  jurisdiction  so  vested,  or  has  acted  in  the  exercise  of  its  jurisdiction  illegally  or  with 
material irregularity. 

1. Ins. by Act 33 of 2021, s. 30 (w.e.f. 4-4-2021). 

26 

 
                                                           
(2) The jurisdiction, powers and authority of the National Commission may be exercised by Benches 

thereof and a Bench may be constituted by the President with one or more members as he may deem fit: 

Provided that the senior-most member of the Bench shall preside over the Bench. 

(3)  Where  the  members  of  a  Bench  differ  in  opinion  on  any  point,  the  points  shall  be  decided 
according to the opinion of the majority, if there is a majority, but if the members are equally divided, 
they shall state the point or points on which they differ, and make a reference to the President who shall 
either hear the point or points himself or refer the case for hearing on such point or points by one or more 
of the other members and such point or points shall be decided according to the opinion of the majority of 
the members who have heard the case, including those who first heard it: 

Provided that the President or the other member, as the case may be, shall give opinion on the point or 

points so referred within a period of two months from the date of such reference. 

59.  Procedure  applicable  to  National  Commission.—(1)  The  provisions  relating  to  complaints 
under sections 35, 36, 37, 38 and 39 shall, with such modifications as may be considered necessary, be 
applicable to the disposal of complaints by the National Commission. 

(2)  Without  prejudice  to  sub-section  (1),  the  National  Commission  may  also  declare  any  terms  of 

contract, which is unfair to any consumer to be null and void. 

60.  Review  by  National Commission  in  certain cases.—The  National  Commission  shall  have  the 
power to review any of the order passed by it if there is an error apparent on the face of the record, either 
of its own motion or on an application made by any of the parties within thirty days of such order. 

61. Power to set aside ex parte orders.—Where an order is passed by the National Commission ex 

parte, the aggrieved party may make an application to the Commission for setting aside such order. 

62.  Transfer  of  cases.—On  the  application  of  the  complainant  or  of  its  own  motion,  the  National 
Commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending 
before the District Commission of one State to a District Commission of another State or before one State 
Commission to another State Commission. 

63. Vacancy in office of President of National Commission.—When the office of President of the 
National Commission is vacant or a person occupying such office is, by reason of absence or otherwise, 
unable  to  perform  the  duties  of  his  office,  these  shall  be  performed  by  the  senior-most  member  of  the 
National Commission: 

Provided that where a retired Judge of a High Court or a person who has been a Judicial Member is a 
member of the National Commission, such member or where the number of such members is more than 
one, the senior-most person amongst such members, shall preside over the National Commission in the 
absence of President of that Commission. 

64.  Vacancies or  defects in  appointment  not  to invalidate  orders.—No  act or  proceeding  of the 
District Commission, the State Commission or the National Commission shall be invalid by reason only 
of the existence of any vacancy amongst its members or any defect in the constitution thereof. 

65.  Service  of  notice,  etc.—(1)  All  notices,  required  by  this  Act  to  be  served,  shall  be  served  by 
delivering  or  transmitting  a  copy thereof  by  registered  post acknowledgment  due  addressed  to  opposite 
party  against  whom  complaint is  made or to  the  complainant  by  speed  post or by  such courier service, 
approved  by  the  District  Commission,  the  State  Commission  or  the  National  Commission,  as  the  case 
may be, or by any other mode of transmission of documents including electronic means. 

(2) Without prejudice to the provisions contained in sub-section (1), the notice required by this Act 
may be served on an electronic service provider at the address provided by it on the electronic platform 
from  where  it  provides  its  services  as  such  and  for  this  purpose,  the  electronic  service  provider  shall 
designate a nodal officer to accept and process such notices. 

(3) When an acknowledgment or any other receipt purporting to be signed by the opposite party or his 
agent  or,  as  the  case  may  be,  by  the  complainant  is  received  by  the  District  Commission,  the  State 
Commission  or  the  National  Commission,  as  the  case  may  be,  or  postal  article  containing  the  notice  is 

27 

 
received  back  by  such  District  Commission,  State  Commission  or  the  National  Commission,  with  an 
endorsement  purporting  to  have  been  made  by  a  postal  employee  or  by  any  person  authorised  by  the 
courier  service  to  the  effect  that  the  opposite  party  or  his  agent  or  complainant  had  refused  to  take 
delivery of the postal article containing the notice or had refused to accept the notice by any other means 
specified  in  sub-section  (1)  when  tendered  or  transmitted  to  him,  the  District  Commission  or  the  State 
Commission or the National Commission, as the case may be, shall declare that the notice has been duly 
served on the opposite party or to the complainant, as the case may be: 

Provided  that  where  the  notice  was  properly  addressed,  pre-paid  and  duly  sent  by  registered  post 
acknowledgment due, a declaration referred to in this sub-section shall be made notwithstanding the fact 
that the acknowledgment has been lost or misplaced, or for any other reason, has not been received by the 
District  Commission,  the  State  Commission  or  the  National  Commission,  as  the  case  may  be,  within 
thirty days from the date of issue of notice. 

(4) All notices required to be served on an opposite party or to complainant, as the case may be, shall 
be  deemed  to  be  sufficiently  served,  if  addressed  in  the  case  of  the  opposite  party,  to  the  place  where 
business or profession is carried on, and in case of the complainant, the place where such person actually 
and voluntarily resides. 

66.  Experts  to  assist  National  Commission  or  State  Commission.—Where  the  National 
Commission  or  the  State  Commission,  as  the  case  may  be,  on  an  application  by  a  complainant  or 
otherwise, is of the opinion that it involves the larger interest of consumers, it may direct any individual 
or organisation or expert to assist the National Commission or the State Commission, as the case may be. 

67. Appeal against order of National Commission.—Any person, aggrieved by an order made by 

the  National  Commission  in  exercise  of  its  powers  conferred  by  sub-clause  (i)  or  (ii)  of  clause  (a)  of             
sub-section  (1)  of  section  58,  may  prefer  an  appeal  against  such  order  to  the  Supreme  Court  within  a 
period of thirty days from the date of the order: 

Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty 

days if it is satisfied that there was sufficient cause for not filing it within that period: 

Provided further that no appeal by a person who is required to pay any amount in terms of an order of 
the National Commission shall be entertained by the Supreme Court unless that person has deposited fifty 
per cent. of that amount in the manner as may be prescribed. 

68.  Finality  of  orders.—Every  order  of  a  District  Commission  or  the  State  Commission  or  the 
National Commission, as the case may be, shall, if no appeal has been preferred against such order under 
the provisions of this Act, be final. 

69.  Limitation  period.—(1)  The  District  Commission,  the  State  Commission  or  the  National 
Commission  shall  not  admit  a complaint  unless  it is filed  within  two  years  from  the  date on  which  the 
cause of action has arisen. 

(2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the 
period  specified  in  sub-section  (1),  if  the  complainant  satisfies  the  District  Commission,  the  State 
Commission or the National Commission, as the case may be, that he had sufficient cause for not filing 
the complaint within such period: 

Provided  that  no  such  complaint  shall  be  entertained  unless  the  District  Commission  or  the  State 
Commission  or  the  National  Commission,  as  the  case  may  be,  records  its  reasons  for  condoning  such 
delay. 

70.  Administrative  control.—(1)  The  National  Commission  shall  have  the  authority  to  lay  down 
such  adequate  standards  in  consultation  with  the  Central  Government  from  time  to  time,  for  better 
protection of the interests of consumers and for that purpose, shall have administrative control over all the 
State Commissions in the following matters, namely:— 

(a)  monitoring  performance  of  the  State  Commissions  in  terms  of  their  disposal  by  calling  for 

periodical returns regarding the institution, disposal and pendency of cases; 

28 

 
(b) investigating into any allegations against the President and members of a State Commission 
and  submitting  inquiry  report  to  the  State  Government  concerned  along  with  copy  endorsed  to  the 
Central Government for necessary action; 

(c)  issuance  of  instructions  regarding  adoption  of  uniform  procedure  in  the  hearing  of  matters, 
prior  service  of  copies  of  documents  produced  by  one  party  to  the  opposite  parties,  furnishing  of 
english translation of judgments written in any language, speedy grant of copies of documents; 

(d) overseeing the functioning of the State Commission or the District Commission either by way 
of inspection or by any other means, as the National Commission may like to order from time to time, 
to ensure that the objects and purposes of the Act are best served and the standards set by the National 
Commission are implemented without interfering with their quasi-judicial freedom. 

(2) There shall be a monitoring cell to be constituted by the President of the National Commission to 

oversee the functioning of the State Commissions from the administrative point of view. 

(3) The State Commission shall have administrative control over all the District Commissions within 

its jurisdiction in all matters referred to in sub-section (1). 

(4)  The  National  Commission  and  the  State  Commissions  shall  furnish  to  the  Central  Government 
periodically or as and when required, any information including the pendency of cases in such form and 
manner as may be prescribed. 

(5) The State Commission shall furnish, periodically or as and when required to the State Government 

any information including pendency of cases in such form and manner as may be prescribed. 

71.  Enforcement  of  orders  of  District  Commission,  State  Commission  and  National 
Commission.—Every  order  made  by  a  District  Commission,  State  Commission  or  the  National 
Commission shall be enforced by it in the same manner as if it were a decree made by a Court in a suit 
before it and the provisions of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 
1908) shall, as far as may be, applicable, subject to the modification that every reference therein to the 
decree shall be construed as reference to the order made under this Act. 

72. Penalty for non-compliance of order.—(1) Whoever fails to comply with any order made by the 
District Commission or the State Commission or the National Commission, as the case may be, shall be 
punishable with imprisonment for a term which shall not be less than one month, but which may extend to 
three years, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend 
to one lakh rupees, or with both. 

(2)  Notwithstanding  anything  contained  in  the  Code  of  Criminal  Procedure,  1973  (2  of  1974),  the 
District Commission, the State Commission or the National Commission, as the case may be, shall have 
the  power  of  a  Judicial  Magistrate  of  first  class  for  the  trial  of  offences  under  sub-section  (1),  and  on 
conferment  of  such  powers,  the  District  Commission  or  the  State  Commission  or  the  National 
Commission,  as  the  case  may  be,  shall  be  deemed  to  be  a  Judicial  Magistrate  of  first  class  for  the 
purposes of the Code of Criminal Procedure, 1973. 

(3)  Save  as  otherwise  provided,  the  offences  under  sub-section  (1)  shall  be  tried  summarily  by  the 

District Commission or the State Commission or the National Commission, as the case may be. 

73. Appeal against order passed under section 72.—(1) Notwithstanding anything contained in the 
Code of Criminal Procedure, 1973 (2 of 1974), where an order is passed under sub-section (1) of section 
72, an appeal shall lie, both on facts and on law from— 

(a) the order made by the District Commission to the State Commission; 

(b) the order made by the State Commission to the National Commission; and 

(c) the order made by the National Commission to the Supreme Court. 

(2) Except as provided in sub-section (1), no appeal shall lie before any court, from any order of a 

District Commission or a State Commission or the National Commission, as the case may be. 

29 

 
(3) Every appeal under this section shall be preferred within a period of thirty days from the date of 

order of a District Commission or a State Commission or the National Commission, as the case may be: 

Provided that the State Commission or the National Commission or the Supreme Court, as the case 
may be, may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that the 
appellant had sufficient cause for not preferring the appeal within the said period of thirty days. 

CHAPTER V 

MEDIATION 

74.  Establishment  of  consumer  mediation  cell.—(1)  The  State  Government  shall  establish,  by 
notification, a consumer mediation cell to be attached to each of the District Commissions and the State 
Commissions of that State. 

(2) The Central Government shall establish, by notification, a consumer mediation cell to be attached 

to the National Commission and each of the regional Benches. 

(3) A consumer mediation cell shall consist of such persons as may be prescribed. 

(4) Every consumer mediation cell shall maintain— 

(a) a list of empanelled mediators; 

(b) a list of cases handled by the cell; 

(c) record of proceeding; and 

(d) any other information as may be specified by regulations. 

(5) Every consumer mediation cell shall submit a quarterly report to the District Commission, State 

Commission or the National Commission to which it is attached, in the manner specified by regulations. 

75. Empanelment of mediators.—(1) For the purpose of mediation, the National Commission or the 
State Commission or the District Commission, as the case may be, shall prepare a panel of the mediators 
to  be  maintained  by  the  consumer  mediation  cell  attached  to  it,  on  the  recommendation  of  a  selection 
committee consisting of the President and a member of that Commission. 

(2)  The  qualifications  and  experience  required  for  empanelment  as  mediator,  the  procedure  for 
empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the 
terms  and  conditions  for  empanelment,  the  code  of  conduct  for  empanelled  mediators,  the  grounds  on 
which,  and  the  manner  in  which,  empanelled  mediators  shall  be  removed  or  empanelment  shall  be 
cancelled and other matters relating thereto, shall be such as may be specified by regulations. 

(3) The panel of mediators prepared under sub-section (1) shall be valid for a period of five years, and 
the empanelled mediators shall be eligible to be considered for re-empanelment for another term, subject 
to such conditions as may be specified by regulations. 

76.  Nomination of mediators from panel.—The District Commission, the State Commission or the 
National  Commission  shall,  while  nominating  any  person  from  the  panel  of  mediators  referred  to  in 
section 75, consider his suitability for resolving the consumer dispute involved. 

77. Duty of mediator to disclose certain facts.—It shall be the duty of the mediator to disclose— 

(a) any personal, professional or financial interest in the outcome of the consumer dispute; 

(b)  the  circumstances  which  may  give  rise  to  a  justifiable  doubt  as  to  his  independence  or 

impartiality; and 

(c) such other facts as may be specified by regulations. 

78.  Replacement  of  mediator  in  certain  cases.—Where  the  District  Commission  or  the  State 
Commission or the National Commission, as the case may be, is satisfied, on the information furnished by 
the mediator or on the information received from any other person including parties to the complaint and 
after hearing the mediator, it shall replace such mediator by another mediator. 

30 

 
79.  Procedure  for  mediation.—(1)  The  mediation  shall  be  held  in  the  consumer  mediation  cell 
attached to the District Commission, the State Commission or the National Commission, as the case may 
be. 

(2)  Where  a  consumer  dispute  is  referred  for  mediation  by  the  District  Commission  or  the  State 
Commission  or  the  National  Commission,  as  the  case  may  be,  the  mediator  nominated  by  such 
Commission shall have regard to the rights and obligations of the parties, the usages of trade, if any, the 
circumstances  giving  rise  to  the  consumer  dispute  and  such  other  relevant  factors,  as  he  may  deem 
necessary and shall be guided by the principles of natural justice while carrying out mediation. 

(3) The mediator so nominated shall conduct mediation within such time and in such manner as may 

be specified by regulations. 

80. Settlement through mediation.—(1) Pursuant to mediation, if an agreement is reached between 
the parties with respect to all of the issues involved in the consumer dispute or with respect to only some 
of  the  issues,  the  terms  of  such  agreement  shall  be  reduced  to  writing  accordingly,  and  signed  by  the 
parties to such dispute or their authorised representatives. 

(2) The mediator shall prepare a settlement report of the settlement and forward the signed agreement 

along with such report to the concerned Commission. 

(3) Where no agreement is reached between the parties within the specified time or the mediator is of 
the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to 
the concerned Commission. 

81.  Recording  settlement  and  passing  of  order.—(1)  The  District  Commission  or  the  State 
Commission or the National Commission, as the case may be, shall, within seven days of the receipt of 
the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the 
matter accordingly. 

(2)  Where  the  consumer  dispute  is  settled  only  in  part,  the  District  Commission  or  the  State 
Commission or the National Commission, as the case may be, shall record settlement of the issues which 
have been so settled and continue to hear other issues involved in such consumer dispute. 

(3)  Where  the  consumer  dispute  could  not  be  settled  by  mediation,  the  District  Commission  or  the 
State Commission or the National Commission, as the case may be, shall continue to hear all the issues 
involved in such consumer dispute. 

CHAPTER VI 

PRODUCT LIABILITY 

82.  Application  of  Chapter.—This  Chapter  shall  apply  to  every  claim  for  compensation  under  a 
product liability action by a complainant for any harm caused by a defective product manufactured by a 
product manufacturer or serviced by a product service provider or sold by a product seller. 

83. Product liability action.—A product liability action may be brought by a complainant against a 
product manufacturer or a product service provider or a product seller, as the case may be, for any harm 
caused to him on account of a defective product. 

84.  Liability  of  product  manufacturer.—(1)  A  product  manufacturer  shall  be  liable  in  a  product 

liability action, if— 

(a) the product contains a manufacturing defect; or 

(b) the product is defective in design; or 

(c) there is a deviation from manufacturing specifications; or 

(d) the product does not conform to the express warranty; or 

(e) the product fails to contain adequate instructions of correct usage to prevent any harm or any 

warning regarding improper or incorrect usage. 

31 

 
(2) A product manufacturer shall be liable in a product liability action even if he proves that he was 

not negligent or fraudulent in making the express warranty of a product. 

85. Liability of product service provider.—A product service provider shall be liable in a product 

liability action, if— 

(a) the service provided by him was faulty or imperfect or deficient or inadequate in quality, nature or 
manner of performance which is required to be provided by or under any law for the time being in force, 
or pursuant to any contract or otherwise; or 

(b)  there  was  an  act  of  omission  or  commission  or  negligence  or  conscious  withholding  any 

information which caused harm; or 

(c) the service provider did not issue adequate instructions or warnings to prevent any harm; or 

(d) the service did not conform to express warranty or the terms and conditions of the contract. 

86. Liability of product sellers.—A product seller who is not a product manufacturer shall be liable 

in a product liability action, if— 

(a) he has exercised substantial control over the designing, testing, manufacturing, packaging or 

labelling of a product that caused harm; or 

(b) he has altered or modified the product and such alteration or modification was the substantial 

factor in causing the harm; or 

(c) he has made an express warranty of a product independent of any express warranty made by a 
manufacturer and such product failed to conform to the express warranty made by the product seller 
which caused the harm; or 

(d) the product has been sold by him and the identity of product manufacturer of such product is 
not known, or if known, the service of notice or process or warrant cannot be effected on him or he is 
not subject to the law which is in force in India or the order, if any, passed or to be passed cannot be 
enforced against him; or 

(e) he failed to exercise reasonable care in assembling, inspecting or maintaining such product or 
he  did  not  pass  on  the  warnings  or  instructions  of  the  product  manufacturer  regarding  the  dangers 
involved or proper usage of the product while selling such product and such failure was the proximate 
cause of the harm. 

87. Exceptions to product liability action.—(1) A product liability action cannot be brought against 

the product seller if, at the time of harm, the product was misused, altered, or modified. 

(2) In any product liability action based on the failure to provide adequate warnings or instructions, 

the product manufacturer shall not be liable, if— 

(a)  the  product  was  purchased  by  an  employer  for  use  at  the  workplace  and  the  product 

manufacturer had provided warnings or instructions to such employer; 

(b) the product was sold as a component or material to be used in another product and necessary 
warnings or instructions were given by the product manufacturer to the purchaser of such component 
or  material,  but  the  harm  was  caused  to  the  complainant  by  use  of  the  end  product  in  which  such 
component or material was used; 

(c) the product was one which was legally meant to be used or dispensed only by or under the 
supervision of an expert or a class of experts and the product manufacturer had employed reasonable 
means  to  give  the  warnings  or  instructions  for  usage  of  such  product  to  such  expert  or  class  of 
experts; or 

(d)  the  complainant,  while  using  such  product,  was  under  the  influence  of  alcohol  or  any 

prescription drug which had not been prescribed by a medical practitioner. 

32 

 
(3) A product manufacturer shall not be liable for failure to instruct or warn about a danger which is 
obvious or commonly known to the user or consumer of such product or which, such user or consumer, 
ought to have known, taking into account the characteristics of such product. 

CHAPTER VII 

OFFENCES AND PENALTIES 

88.  Penalty  for  non-compliance  of  direction  of  Central  Authority.—Whoever,  fails  to  comply 
with  any  direction  of  the  Central  Authority  under  sections  20  and  21,  shall  be  punished  with 
imprisonment for a term which may extend to six months or with fine which may extend to twenty lakh 
rupees, or with both. 

89.  Punishment  for  false  or  misleading  advertisement.—Any  manufacturer  or  service  provider 
who  causes  a  false  or  misleading  advertisement  to  be  made  which  is  prejudicial  to  the  interest  of 
consumers shall be punished with imprisonment for a term which may extend to two years and with fine 
which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment 
for a term which may extend to five years and with fine which may extend to fifty lakh rupees. 

90.  Punishment  for  manufacturing  for  sale  or  storing,  selling  or  distributing  or  importing 
products  containing  adulterant.—(1)  Whoever,  by  himself  or  by  any  other  person  on  his  behalf, 
manufactures for sale or stores or sells or distributes or imports any product containing an adulterant shall 
be punished, if such act— 

(a) does not result in any injury to the consumer, with imprisonment for a term which may extend 

to six months and with fine which may extend to one lakh rupees; 

(b) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term 

which may extend to one year and with fine which may extend to three lakh rupees; 

(c) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which 

may extend to seven years and with fine which may extend to five lakh rupees; and 

(d) results in the death of a consumer, with imprisonment for a term which shall not be less than 
seven years, but which may extend to imprisonment for life and with fine which shall not be less than 
ten lakh rupees. 

(2) The offences under clauses (c) and (d) of sub-section (1) shall be cognizable and non-bailable. 

(3) Notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, 
suspend any licence issued to the person referred to in that sub-section, under any law for the time being 
in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence. 

Explanation.—For the purposes of this section,— 

(a) "adulterant" means any material including extraneous matter which is employed or used for 

making a product unsafe; 

(b)  "grievous  hurt"  shall  have  the  same  meaning  as  assigned  to  it  in section  320  of  the  Indian 

Penal Code (45 of 1860). 

91. Punishment for manufacturing for sale or for storing or selling or distributing or importing 
spurious goods.—(1) Whoever, by himself or by any other person on his behalf, manufactures for sale or 
stores or sells or distributes or imports any spurious goods shall be punished, if such act— 

(a) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term 

which may extend to one year and with fine which may extend to three lakh rupees; 

(b) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which 

may extend to seven years and with fine which may extend to five lakh rupees; 

(c) results in the death of a consumer, with imprisonment for a term which shall not be less than 
seven years, but may extend to imprisonment for life and with fine which shall not be less than ten 
lakh rupees. 

33 

 
(2) The offences under clauses (b) and (c) of sub-section (1) shall be cognizable and non-bailable. 

(3)  Notwithstanding  the  punishment  under  sub-section  (1),  the  court  may,  in  case  of  first 
conviction, suspend any licence issued to the person referred to in that sub-section, under any law for 
the time being in force, for a period up to two years, and in case of second or subsequent conviction, 
cancel the licence. 

92.  Cognizance  of  offence  by  court.—No  cognizance  shall  be  taken  by  a  competent  court  of  any 
offence  under  sections  88  and  89  except  on  a  complaint  filed  by  the  Central  Authority  or  any  officer 
authorised by it in this behalf. 

93. Vexatious search.—The Director General or any other officer, exercising powers under section 

22, who knows that there are no reasonable grounds for so doing, and yet— 

(a) searches, or causes to be searched any premises; or 

(b) seizes any record, register or other document or article, shall, for every such offence, be punished 
with  imprisonment  for  a  term  which  may  extend  to  one  year,  or  with  fine  which  may  extend  to  ten 
thousand rupees or with both. 

CHAPTER VIII 

MISCELLANEOUS 

94.  Measures  to  prevent  unfair  trade  practices  in  e-commerce,  direct  selling,  etc.—For  the 
purposes of preventing unfair trade practices in e-commerce, direct selling and also to protect the interest 
and  rights  of  consumers,  the  Central  Government  may  take  such  measures  in  the  manner  as  may  be 
prescribed. 

95. Presidents, members, Chief Commissioner, Commissioner and certain officers to be public 
servants.—The  Presidents  and  members  of  the  District  Commission,  the  State  Commission  and  the 
National  Commission,  and  officers  and  other  employees  thereof,  the  Chief  Commissioner  and  the 
Commissioner  of  the  Central  Authority,  the  Director  General,  the  Additional  Director  General,  the 
Director,  the  Joint  Director,  the  Deputy  Director  and  the  Assistant  Director  and  all  other  officers  and 
employees of the Central Authority and other persons performing any duty under this Act, while acting or 
purporting to act in pursuance of any of the provisions of this Act, shall be deemed to be public servants 
within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

96. Compounding of offences.—(1) Any offence punishable under sections 88 and 89, may, either 
before or after the institution of the prosecution, be compounded, on payment of such amount as may be 
prescribed: 

Provided that no compounding of such offence shall be made without the leave of the court before 

which a complaint has been filed under section 92: 

Provided further that such sum shall not, in any case, exceed the maximum amount of the fine, which 

may be imposed under this Act for the offence so compounded. 

(2) The Central Authority or any officer as may be specially authorised by him in this behalf, may 

compound offences under sub-section (1). 

(3) Nothing in sub-section (1) shall apply to person who commits the same or similar offence, within 

a period of three years from the date on which the first offence, committed by him, was compounded. 

Explanation.—For the purposes of this sub-section, any second or subsequent offence committed after 
the  expiry  of  a  period  of  three  years  from  the  date  on  which  the  offence  was  previously  compounded, 
shall be deemed to be a first offence. 

(4)  Where  an  offence  has  been  compounded  under  sub-section  (1),  no  proceeding  or  further 
proceeding,  as  the  case  may  be,  shall  be  taken  against  the  offender  in  respect  of  the  offence  so 
compounded. 

(5) The acceptance of the sum of money for compounding an offence in accordance with sub-section 
(1)  by  the  Central  Authority  or  an  officer  of  the  Central  Authority  empowered  in  this  behalf  shall  be 

34 

 
deemed  to  amount  to  an  acquittal  within  the  meaning  of  the  Code  of  Criminal  Procedure,  1973  (2  of 
1974). 

97. Manner of crediting penalty.—The penalty collected under section 21 and the amount collected 

under section 96 shall be credited to such fund as may be prescribed. 

98. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie  against  the  Presidents  and  members  of  the  District  Commission,  the  State  Commission  and  the 
National  Commission,  the  Chief  Commissioner,  the  Commissioner,  any  officer  or  employee  and  other 
person performing any duty under this Act, for any act which is in good faith done or intended to be done 
in pursuance of this Act or under any rule or order made thereunder. 

99.  Power  to  give  directions  by  Central  Government.—(1)  Without  prejudice  to  the  foregoing 
provisions  of  this  Act,  the  Central  Authority,  shall,  in  exercise  of  its  powers  or  the  performance  of  its 
functions under this Act, be bound by such directions on questions of policy, as the Central Government 
may give in writing to it from time to time: 

Provided that the Central Authority shall, as far as practicable, be given an opportunity to express its 

views before any direction is given under this sub-section. 

(2) The decision of the Central Government whether a question is one of policy or not shall be final. 

100.  Act not in derogation of any other law.—The provisions of this Act shall be in addition to and 

not in derogation of the provisions of any other law for the time being in force. 

101.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules for carrying out any of the provisions contained in this Act. 

(2) Without prejudice to the generality of the foregoing power, such rules may provide for, — 

(a)  the  other  class  or  classes  of  persons  including  public  utility  entities  under  clause  (19)  of 

section 2; 

(b) the contest, lottery, game of chance or skill which are to be exempted under item (b) of sub-

clause (iii) of clause (47) of section 2; 

(c) the manner of issuing bill or cash memo or receipt for goods sold or services rendered under 

sub-clause (vii) of clause (47) of section 2; 

(d) the number of other official or non-official members of the Central Council under clause (b) 

of sub-section (2) of section 3; 

(e) the time and place of meeting of Central Council and the procedure for the transaction of its 

business under sub-section (2) of section 4; 

(f) the number of Commissioners in the Central Authority under sub-section (2) of section 10; 

(g) the qualifications for appointment, method of recruitment, procedure of appointment, term of 
office, salaries and allowances, resignation, removal and other terms and conditions of service of the 
Chief Commissioner and other Commissioners of the Central Authority under section 11; 

(h) the salaries and allowances payable to, and the other terms and conditions of service of, the 

officers and other employees of the Central Authority under sub-section (2) of section 13; 

(i) the qualifications for appointment of Director General, Additional Director General, Director, 
Joint  Director,  Deputy  Director  and  Assistant  Director  and  the  manner  of  appointment  under  sub-
section (2) of section 15; 

(j)  the  manner  of  taking  copies  or  extracts  of  document,  record  or  article  seized  or  produced 

before returning to the person under sub-section (3) of section 22; 

(k)  the  officer  and  the  manner  of  disposing  of  articles  which  are  subject  to  speedy  or  natural 

decay under sub-section (4) of section 22; 

35 

 
(l) the form and manner for preparing annual statement of accounts by the Central Authority in 

consultation with the Comptroller and Auditor-General of India under sub-section (1) of section 26; 

(m) the form in which, and the time within which, an annual report, other reports and returns may 

be prepared by the Central Authority under sub-section (1) of section 27; 

(n) the qualifications for appointment, method of recruitment, procedure for appointment, term of 
office, resignation and removal of President and members of the District Commission under section 
29; 

(o) the other value of goods and services in respect of which the District Commission shall have 

jurisdiction to entertain complaints under proviso to sub-section (1) of section 34; 

(p) the manner of electronically filing complaint under the proviso to sub-section (1) of section 

35; 

(q)  the  fee,  electronic  form  and  the  manner  of  payment  of  fee  for  filing  complaint  under            

sub-section (2) of section 35; 

(r)  the  cases  which  may  not  be  referred  for  settlement  by  mediation  under  sub-section  (1)  of 

section 37; 

(s)  the  manner  of  authentication  of  goods  sampled  in  case  of  the  National  Commission  under 

clause (c) of sub-section (2) of section 38; 

(t) any other matter which may be prescribed under clause (f) of sub-section (9) of section 38; 

(u)  the  fund  where  the  amount  obtained  may  be  credited  and  the  manner  of  utilisation  of  such 

amount under sub-section (2) of section 39; 

(v)  the  form  and  the  manner  in  which  appeal  may  be  preferred  to  the  State  Commission  under 

section 41; 

(w) the qualifications for appointment, method of recruitment, procedure for appointment, term of 
office, resignation and removal of the President and members of the State Commission under section 
43; 

(x)  the  other  value  of  goods  and  services  in  respect  of  which  the  State  Commission  shall  have 

jurisdiction under the proviso to sub-clause (i) of clause (a) of sub-section (1) of section 47; 

(y)  the  form  and  manner  of  filing  appeal  to  the  National  Commission,  and  the  manner  of 

depositing fifty per cent. of the amount before filing appeal, under sub-section (1) of section 51; 

(z) the number of members of the National Commission under clause (b) of section 54; 

(za) the qualifications, appointment, term of office, salaries and allowances, resignation, removal 
and other terms and conditions of service of the President and members of the National Commission 
under sub-section (1) of section 55; 

(zb)  the  salaries  and  allowances  payable  to,  and  other  terms  and  conditions  of  service  of,  the 

officers and other employees of the National Commission under sub-section (3) of section 57; 

(zc) the other value of goods and services in respect of which the National Commission shall have 

jurisdiction under the proviso to sub-clause (i) of clause (a) of sub-section (1) of section 58; 

(zd) the manner of depositing fifty per cent. of the amount under the second proviso to section 67; 

(ze)  the  form  in  which  the  National  Commission  and  the  State  Commission  shall  furnish 

information to the Central Government under sub-section (4) of section 70; 

(zf) the persons in the consumer mediation cell under sub-section (3) of section 74; 

(zg)  the  measures  to  be  taken  by  the  Central  Government  to  prevent  unfair  trade  practices  in        

e-commerce, direct selling under section 94; 

(zh) the amount for compounding offences under sub-section (1) of section 96; 

36 

 
(zi) the fund to which the penalty and amount collected shall be credited under section 97; and 

(zj) any other matter which is to be, or may be, prescribed, or in respect of which provisions are to 

be, or may be, made by rules 

102.    Power  of  State  Government  to  make  rules.—(1)  The  State  Governments  may,  by 

notification, make rules for carrying out the provisions of this Act: 

Provided  that  the  Central  Government  may,  frame  model  rules  in  respect  of  all  or  any  of  the 
matters  with respect  to  which the  State  Government may  make  rules  under  this  section, and  where 
any such model rules have been framed in respect of any such matter, they shall apply to the State 
until the rules in respect of that matter is made by the State Government and while making any such 
rules, so far as is practicable, they shall conform to such model rules. 

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may 

provide for all or any of the following matters, namely:— 

(a) the other class or classes of persons including public utility entities under clause (19) of 

section 2; 

(b) the contest, lottery, game of chance or skill which are to be exempted under item (b) of 

sub-clause (iii) of clause (47) of section 2; 

(c)  the  number  of  other  official  or  non-official  members  of  the  State  Council  under             

clause (b) of sub-section (2) of section 6; 

(d) the time and place of meeting of the State Council and the procedure for the transaction 

of its business under sub-section (4) of section 6; 

(e) the number of other official and non-official members of District Council under clause 

(b) of sub-section (2) of section 8; 

(f) the time and place of meeting of the District Council and procedure for the transaction of 

its business under sub-section (4) of section 8; 

(g) the number of members of the District Commission under clause (b) of sub-section (2) of 

section 28; 

(h) the salaries and allowances payable to, and other terms and conditions of service of, the 

President and members of the District Commission under section 30; 

(i) the salaries and allowances payable to, and other terms and conditions of service of, the 

officers and other employees of the District Commission under sub-section (3) of section 33; 

(j) the manner of authentication of goods sampled by the State Commission and the District 

Commission under clause (c) of sub-section (2) of section 38; 

(k) the manner of depositing fifty per cent. of the amount before filing appeal under second 

proviso to section 41; 

(l) the number of members of the State Commission under sub-section (3) of section 42; 

(m) the salaries and allowances payable to, and other terms and conditions of service of, the 

President and members of the State Commission under section 44; 

(n) the salaries and allowances payable to, and other terms and conditions of service of, the 

officers and other employees of the State Commission under sub-section (3) of section 46; 

(o)  the  form  in  which  the  State  Commission  shall  furnish  information  to  the  State 

Government under sub-section (5) of section 70; 

(p) the persons in the consumer mediation cell under sub-section (3) of section 74; 

(q) any other matter which is to be, or may be prescribed, or in respect of which provisions 

are to be, or may be, made by rules. 

37 

 
103.  Power  of  National  Commission  to  make  regulations.—(1)  The  National  Commission  may, 
with the previous approval of the Central Government, by notification, make regulations not inconsistent 
with this Act to provide for all matters for which provision is necessary or expedient for the purpose of 
giving effect to the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

make provisions for— 

(a)  the  costs  for  adjournment  to  be  imposed  by  the  District  Commission  under  the  second 

proviso to sub-section (7) of section 38; 

(b)  the  costs  for  adjournment  to  be  imposed  by  the  State  Commission  or  the  National 

Commission, as the case may be, under the second proviso to section 52; 

(c)  the  maintenance  of  any  other  information  by  the  consumer  mediation  cell  under           

sub-section (4) of section 74; 

(d)  the  manner  of  submission  of  quarterly  report  by  consumer  mediation  cell  to  the  District 

Commission,  the  State  Commission  or  the  National  Commission  under  sub-section  (5)  of            
section 74; 

(e) the qualifications and experience required for empanelment as mediator, the procedure for 
empanelment,  the  manner  of  training  empanelled  mediators,  the  fee  payable  to  empanelled 
mediator, the terms and conditions for empanelment, the code of conduct for empanelled mediators, 
the  grounds  on  which,  and  the  manner  in  which,  empanelled  mediators  shall  be  removed  or 
empanelment  shall  be  cancelled  and  the  other  matters  relating  thereto  under  sub-section  (2)  of 
section 75; 

(f)  the  conditions  for  re-empanelment  of  mediators  for  another  term  under  sub-section  (3)  of 

section 75; 

(g) the other facts to be disclosed by mediators under clause (c) of section 77; 

(h)  the  time  within  which,  and  the  manner  in  which,  mediation  may  be  conducted  under           

sub-section (3) of section 79; and 

(i) such other matter for which provision is to be, or may be, made by regulation. 

104. Power of Central Authority to make regulations.—(1) The Central Authority may, with the 
previous approval of the Central Government, by notification, make regulations not inconsistent with this 
Act, for the purpose of giving effect to the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the procedure for engaging experts and professionals and the number of such experts and 

professionals under sub-section (3) of section 13; 

(b)  the  procedure  for  transaction  of  business  and  the  allocation  of  business  of  the  Chief 

Commissioner and Commissioner under sub-section (1) of section 14; 

(c)  the  form,  manner  and  time  within  which,  inquiries  or  investigation  made  by  the             

Director-General shall be submitted to the Central Authority under sub-section (5) of section 15; 
and 

(d) such other matter for which provision is to be, or may be, made by regulation. 

105. Rules and regulations to be laid before each House of Parliament.—(1) Every rule and every 
regulation  made  under this  Act shall  be  laid,  as  soon  as  may  be  after it  is  made,  before  each  House  of 
Parliament, while it is in session, for a total period of thirty days which may be comprised in one session 
or in two or more successive sessions, and if, before the expiry of the session immediately following the 
session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or 
regulation  or  both  Houses  agree  that  the  rule  or  regulation  shall  thereafter  have  effect  only  in  such 
modified  form  or  be  of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or 

38 

 
annulment  shall  be  without  prejudice  to  the  validity  of  anything  previously  done  under  that  rule  or 
regulation. 

(2) Every rule made by a State Government under this Act shall be laid as soon as may be after it is 

made, before the State Legislature. 

106. Power to Remove Difficulties.—If any difficulty arises in giving effect to the provisions of this 
Act, the Central Government may, by order in the Official Gazette, make such provisions not inconsistent 
with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: 

Provided  that  no  such  order  shall  be  made  after  the  expiry  of  a  period  of  two  years  from  the 

commencement of this Act. 

107.  Repeal and savings.—(1) The Consumer Protection Act, 1986 (68 of 1986) is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken or purported to have been done or 
taken under the Act hereby repealed shall, in so far as it is not inconsistent with the provisions of this Act, 
be deemed to have been done or taken under the corresponding provisions of this Act. 

(3) The  mention  of  particular  matters in  sub-section (2)  shall  not  be  held to  prejudice  or  affect  the 
general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of 
repeal. 

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