Consumer Rights

Who is a 'Consumer?'

Section 2(7) of the Consumer Protection Act, 2019 defines a consumer as any person who buys any good(s) or avails any service(s) in exchange of a consideration, whether paid immediately or under any system of deferred payment, and also includes the beneficiary of such good(s) or service(s). However, the definition expressly excludes any person who buys or avails of such good(s) or service(s) for commercial purposes. The explanation to the section clarifies that resale or use, specifically for the purpose of earning livelihood shall not be considered as commercial purpose.

What is 'Consumer Rights?'

“Consumer rights” refer to a set of rights, available for a consumer of a product or one availing a service that guarantee legal protection from - unsafe products, deception, exploitation, unfair trade practices and poor service ensuring that consumers receive what they paid for. These rights also ensure that the consumer has fair access to all the means to seek justice when the rights are violated.

Consumer Rights as per Indian Legislation

The term Consumer Rights is primarily defined under sec. 2(9) of the Consumer Protection Act, 2019. There are six rights conferred to the Consumers and that safeguards their legal rights as a consumer of any goods, products or services, from deception, exploitation, unfair trade practices or misleading advertisement etc., which includes;

1.    Right to safety: The right to be protected against the goods, products and services that are hazardous to life. It mandates compliance with national safety standards set by bodies like Bureau of Indian Standards (BIS),FSSAI and Hallmark etc.

2.    Right to be Informed: The right to be informed about the quality, quantity, potency, purity, standard, and price of goods or services . The objective is to protect consumers against unfair trade practices and safeguarding their interest.

3.    Right to be assured: The right to be assured, wherever possible, to get access of variety of goods and services at competitive prices.

4.    Right to be heard: The right assures that consumers' interest will receive due consideration at appropriate forum.

5.    Right to seek redressal: The right to seek legal remedies against unfair trade practices or unscrupulous exploitation. The right empowers consumers to demand for the replacement of defective goods, repair of defects or refund etc.

6.    Right to consumer awareness: The right is for empowering the citizens for their rights as consumers. Central Government has taken actions regarding the same by launching campaigns like "Jago Grahak Jago".

However the rights were previously defined under the repealed act of 1986 as an object of the central council under sec. 6, which was recognized explicitly as Consumer Rights under sec. 2(9) of the Consumer Protection Act, 2019. The rights are ensured to get protected by every District Council as its object to protect and promote the rights and the same mentioned under Sec. 9 of the Consumer Protection Act, 2019.

Consumer Rights in the e-Commerce, as Rules notified by the Central Government

Section 101(1) of the Consumer Protection Act, 2019 delegates power of making rules to the Central Government. The rules framed and notified by the Central Government under the legislation also safeguards consumer rights. Rule 4, 5,6 and 7 of The Consumer Protection (E-Commerce) Rules, 2020 mandates e-commerce entities to disclose accurate and complete information relating to their goods and services and also explicitly prohibits false representation of such information, along with this, it provisions for mandatory appointment of a grievance officer, thereby safeguarding the consumers’ right to safety and right to seek redressal as well as their right to be informed.

International Experience

How Other Jurisdictions Define, Operationalise, and Collect Data Regarding Consumer Protection

The foundational framework for global consumer rights originates from the United Nations Guidelines for Consumer Protection (UNGCP), first adopted in 1985 and revised in 2015. These guidelines establish eight core consumer rights: safety, information, choice, representation, redress, education, a healthy environment, and access to essential goods and services.

United States:

• Definition: The US does not have a single statutory definition of a consumer. Instead, the Federal Trade Commission (FTC) Act broadly protects "consumers" against unfair or deceptive acts in commerce. Focusing on the vulnerability of the average person in commercial transactions.
• Operationalisation: The FTC operationalises protection through sector-specific regulations rather than a unified consumer code.
• Data Collection: Data is gathered via the Consumer Sentinel Network, a centralized database that aggregates millions of annual complaints from the public to identify fraud and unfair practices.

European Union:

• Definition: The EU strictly defines a consumer as any natural person acting for purposes outside their trade, business, craft, or profession.
• Operationalisation: The EU adopts a harmonised approach through directives like the Consumer Rights Directive (2011/83/EU). Mandating uniform rules across member states, such as a 14-day withdrawal right for online purchases. Enforcement is coordinated through the Consumer Protection Cooperation (CPC) Network.
• Data Collection: The EU tracks consumer conditions through the Consumer Conditions Scoreboard, which monitors data on cross-border complaints, trust, and market safety.

Deviations from Indian Practice

Aspect	International Practice (EU / US)	Indian Practice
Meaning of the Term 'Consumer'	EU: Only real people (natural persons) can be consumers. Businesses can never claim consumer rights. US: Protects individual buyers against unfair corporate tricks.	India: Anyone who buys things for a "commercial purpose" is excluded. Exception: Allowed only if bought to earn a living through self-employment.
How Disputes are Solved	Uses fast, fully online single-window portals (like the EU's Online Dispute Resolution platform) for quick fixes.	Uses a slow system of three-tiered courts (District, State, National). Online filing via e-Daakhil is still only partial.
Product Liability	Strict liability is normal. If a product is defective and hurts someone, the maker pays. No need to prove it was their fault.	Rules were only added in 2019. The system is still very new and actual enforcement is just beginning.

Key Learnings and Best Practices

• Smart Data for Catching Scams (US Model): The US uses the Consumer Sentinel Network to collect millions of complaints in one central place. This helps them spot massive fraud trends early. India’s National Consumer Helpline (NCH) collects data, but it needs to be scaled up so authorities can use it to catch scammers before they disappear.
• Mandatory Product Recalls (EU Model): In the EU, if a product is dangerous, it goes onto a central website called Safety Gate, and companies are forced to recall it. In India, product recalls are still mostly voluntary for many sectors. India should make safety alerts and product recalls mandatory on a public portal.
• Better Online Dispute Platforms (EU Model): The EU’s Online Dispute Resolution (ODR) platform solves internet shopping fights completely online without anyone going to court. As online shopping booms in India, we need a similar fast, digital system instead of forcing online shoppers into the slow Consumer Commissions.

Technological Transformation & Initiatives

Consumer protection in India has seen significant technological transformation, moving from physical court-based redressal to a fully digital, AI-enabled ecosystem.

B.2005 — National Consumer Helpline (NCH) and setting up of CONFONET

The Ministry of Consumer Affairs came up with a toll free number to help consumers report their grievances .Further this year also saw (CONSUMER FORUM NETWORK ) an IT initiative which aimed at computerising consumer courts and track status of cases filed all across different

C.2017 — INGRAM Portal

Depart of Consumer Affairs came up with a platform which aimed at bringing all the stakeholders on one page making it easy to navigate in one direction

D.2020 —Digital Milestones

Three significant developments in one year —

1) CCPA established (July),

2) e-Daakhil portal launched for online complaint filing (September), and

3) E-Commerce Rules notified mandating transparency in refund and return policies.

E.2023 — Dark Patterns Guidelines

CCPA issued guidelines regulating manipulative digital practices by online platforms, aligning India with global digital consumer protection standards.

F.2025 — E-Jagriti

All prior systems — e-Daakhil, CONFONET, OCMS, CMS — integrated into a single platform with virtual hearings, digital  payments and pan-India availability.

Challenges that face us

Consumer rights in India, while well-established in law, face major challenges in their practical realisation. These challenges generally cover data, institutional capacity, and implementation setbacks.

A.Case Pendency and Delays

Pending cases rose by 21% between 2020 and 2024, with 35% of State Commission cases remaining unresolved for over three years. Average case resolution times have stretched to 8–12 years across consumer courts, with some cases filed before 2000 still pending.

B.Institutional Vacancies

One of the major shortcomings is the problem of understaffing. Major positions like those of Presidents alongside dearth of workforce remains concerning.

C.Declining Gender Representation

Women's share in State Commission presidents and members showed a decline in the recent years.

D.Consumer Awareness Gap

Research indicates that only 30% of consumers are aware of the Consumer Protection Act, 2019 — a critical gap that limits the practical exercise of rights, particularly in rural areas and among vulnerable populations.

E.Digital Challenges

The rise of e-commerce has introduced new forms of consumer exploitation — fake reviews, drip pricing, dark patterns and cross-border disputes — where enforcement remains limited and jurisdictional clarity is still evolving.

What is the Way Ahead

Several stakeholders — including researchers, judicial bodies, and government institutions — have put forward suggestions to strengthen the consumer rights framework in India.

A.Filling Institutional Vacancies

Time-bound appointments, improved staffing, and better budget utilisation can help overcome this shortcoming .

B.Strengthening Alternative Dispute Resolution

Greater and wider use of mediation — already provided for under the Consumer Protection Act, 2019 to reduce the burden on consumer commissions and enable faster resolution of disputes.

C.Consumer Awareness Campaigns

Targeted awareness programmes — particularly in regional languages and for rural consumers can bridge the gap between rights on paper and their exercise in practice.

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Page created 2026-08-21  ·  Last updated 2026-08-22