The Indian government has significantly strengthened consumer protection through updated legislation, proactive enforcement, and widespread awareness campaigns. The Department of Consumer Affairs is leading this effort, focusing on modernizing consumer protection frameworks to address the challenges of globalization, technology, and e-commerce. A press release on these efforts was issued on December 18, 2024.
A key development was the enactment of the Consumer Protection Act, 2019, which replaced the 1986 Act. This legislation establishes a three-tier quasi-judicial system of Consumer Commissions at the district, state, and central levels, providing consumers with accessible and efficient redressal mechanisms for disputes, including those related to unfair trade practices. The Act mandates expeditious disposal of cases, aiming for resolution within three months for cases not requiring commodity analysis and five months for those that do. To further expedite justice, adjournments are restricted unless sufficient cause is demonstrated and documented.
The Act defines “unfair trade practice” broadly, encompassing deceptive tactics such as misrepresentation of product standards, false advertising, misleading warranties, and price manipulation. It also specifically addresses “misleading advertisements,” covering false descriptions, misleading claims about product qualities, and deliberate concealment of important information.
To specifically address e-commerce challenges, the Consumer Protection (E-commerce) Rules, 2020, were notified. These rules outline the responsibilities and liabilities of e-commerce entities, including provisions for grievance redressal.
The Central Consumer Protection Authority (CCPA), established in July 2020, plays a crucial role in enforcing consumer rights. The CCPA is empowered to prevent consumer detriment from unfair trade practices, initiate class action lawsuits, and enforce recalls, refunds, and product returns. It also focuses on preventing and regulating false or misleading advertisements. To date, the CCPA has issued 325 notices for violations and imposed penalties totaling Rs. 1.19 crore.
The CCPA has also issued several key guidelines:
Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022
These guidelines define conditions for valid advertising, address bait advertising and free claims, and outline the responsibilities of manufacturers, service providers, advertisers, and advertising agencies. They emphasize due diligence for endorsements, requiring them to reflect genuine opinions based on adequate information and experience.
Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims, 2024
These guidelines promote transparency in environmental claims.
Guidelines for Prevention of Misleading Advertisements in the Coaching Sector, 2024
These guidelines target false claims, exaggerated success rates, and unfair practices in coaching institutes.
Guidelines for Prevention and Regulation of Dark Patterns, 2023
These guidelines address 13 specific “dark patterns” in e-commerce designed to mislead consumers.
Further strengthening consumer protection in the digital space, the Bureau of Indian Standards (BIS) introduced a framework on “Online Consumer Reviews,” promoting integrity, accuracy, and transparency in online reviews.
Complementing these regulatory efforts, the Department of Consumer Affairs conducts nationwide multimedia awareness campaigns under the “Jago Grahak Jago” initiative. These campaigns utilize various media, including traditional platforms and social media, to educate consumers about their rights, unfair trade practices, and redressal mechanisms. The department also provides grants to states and union territories for local awareness initiatives.
