A Study Of Consumer Protection And Competition Law Dynamics In India - A Comparative Analysis

Author: LawSphereX

Category: Consumer Law

Published: 2026-08-23T17:21:13.648874+00:00

Updated: 2026-08-26T17:12:34.597+00:00

A STUDY OF CONSUMER PROTECTION AND

COMPETITION LAW DYNAMICS IN INDIA: A

COMPARATIVE ANALYSIS

Harini Rangarajan & Sudesna Sarkar, BBA LLB (H), Amity University Kolkata

ABSTRACT

The term ‘trade’ is a common phenomenon which is happening all around the world with each other, country to country, state to state, place to place every single day in known modes of business. It is a crucial part of life where everyone is part of this circle as owner, businessman, employee or worker and their consumers who engage in business activities. To ensure fair competition amongst the businesses is regulated under the Competition Act,2002 and protection to the customer is regulated under Consumer Protection Act,1986. These both acts are complimentary to each other1 which helps to promote of the expansion of market conditions that helps the customers with appropriate choices at lower prices. Hence, we could see the common objective of these act is protection and promotion of consumer welfare from the abusive position of the competitors in the market.

But they address these issues and employ different methods. Consumer protection is made with the objective of protect the rights of the consumers and safeguard their interests through proper redressal mechanisms. Whereas, Competition Act, 2002 objectives is to prevent any harm which can lead to unfair competition, to promote as well as maintain fair and healthy market competition, protect right and interest of the consumers, and ensure competitors enjoy freedom of trade in India as much as possible so that consumers can also have ample of choices of goods and services to avail and so on which will be further discussed in the paper. In this paper we are analysing and understanding the comparative dynamics of Competition Act,

2002 as well as Consumer Protection Act,1986. How they help the to protect

and ensure consumers rights as well as competition in the markets is fair so that at the end consumers are also benefitted. These two acts are co-relating with each other but in their own methods and that’s what we are mainly focusing on this paper. Keywords: Protecting consumer’s rights and interest, Healthy and Fair 1 Competition Commission of India, “Introduction to Competition Law”, (Last modified 28th August 2024)

Competition, Comparative analysis of the acts. Co-relation with each other, Proper Redressal Mechanism, Consumer welfare, Perfect Competition

INTRODUCTION

A country's progress is frequently assessed using a variety of factors, and one of the most

important ones is almost always its economic well-being. Business is significant for the development of a country's economy. The financial market is crucial to raising funds. Money is the main issue for business expansion. The financial market controls the circle of money. It helps to utilize savings in business sectors. If there is only one business sector related to a single product and service. The quality of products and services will decline. The facilities of that sector will be reduced. One sector cannot meet the demand of all consumers. Monopoly will reduce the standard of the business environment. There will be more than one sector to fulfill the requirements of consumers. Business sectors depend on the needs of consumers. A business cannot run without the satisfaction of customers. Recently, the government also encouraged for starting of business sectors.

The government launched schemes for the startup sectors. The Central Government opens a new portal to provide incentives for promoting Indian startups. The Central Government launched twenty-one schemes for financing Indian startups. The government also launched schemes for women entrepreneurs. This scheme provides a low interest rate of return with high subsidies. This scheme is launched for women's empowerment and self-dependency. This creates a presence of women in the business field. In recent eras, ‘competition’ has come into the business sector. There are various markets related to a single product. Then, competition will be an unavoidable factor. But this ‘competition’ term has both positive and negative effects in a business environment. Competition mandates to improve the quality of products and services. This term brings efficacy in service provisions.

This helps to establish the standard of products or services. This builds and maintains the reputation of the company. Competition also creates unfair practices in the business sector. New startups use unfair business practices to create a reputation as soon as possible. One company dominates another company through its reputation. Sometimes, one company dominates the position of others by unfair means. This situation prevents the smooth running of the business. This behavior also discourages the expansion of business in India. Customers are also harassed by this situation. There should be some laws or regulations for the protection of customers from such situations. There is a need for laws for the balance of competition concerning the protection of consumers. The rapid development of trade and commerce brings the requirement

of implementation of new laws in the commercial sector. The commercial sector should maintain equity, justice, and good conscience. The Competition Act, 2002 and the Consumer Protection Act, 2019 have been implemented to maintain a fair environment in business sectors. The main purpose of The Competition Act, 2002 is to ensure businessmen and feel secure in trading activities. The protection of businessmen is a part of a healthy business environment. The Consumer Protection Act provides strict laws regarding the protection of customers. So that customers will not be affected by the stringent business conditions. All customers have the right to safety from hazardous products, right to information, right to be heard, choice and infringement, right to seek redressal and education. So that excessive competition cannot create a burden on the part of customers2.

COMPETITION LAW IN RELATION TO CONSUMER PROTECTION

The ‘Competition Commission of India’ is an competent authority under the ‘Competition Act, 2002’3 which governs, regulates and prevents the practices which may have negative outcome on the competition, promote fair business to be fair, competitive and innovative which will support economic growth4 that will lead to enhancement of consumer welfare. 5 We can understand this law by assuming a perfect market which is not exactly possible in real life but it will ensure protection of consumers and possibly no regulation on the market would be needed any longer. 6 But a theory of perfect market directly relates with the choices a consumers makes based on their own satisfaction and needs. As their choices is based on their wants and will be logical on their stance that will influence the producers and based upon on that the market will react accordingly.

If the producers are able to analyse these patterns, then they may benefit in the competitive market, gain consumers interest but if they don’t then they will lose them gradually and will be compelled to leave the market. 7 The rationale for consumer protection law is of ‘consumer’ referred as "weaker party". They are thought to be weak

2 N.D Kapoor, I Elements of Mercantile Law (Sultan Chand & Sons, 38th edn., 2021)

3 Competition Act,2002, s. 7

4 Competition Commission of India, “Part 1 - Introduction to Competition Law”, (Last modified 28th August 2024) 5 Srishti Roy, “Interrelation of Competition Law and Consumer Protection Act” 5 Indian Journal of Law and Legal Research (Last modified 3rd October 2024).

6 M.L.Trivedi, “Managerial Economics- Theories and Applications” Tata McGraw-Hill Edication (Last

modified 2002). 7 I. Ramsay, “Rationales for Intervention in the Consumer Marketplace” Office of Fair Trading (Last modified 1984).

because they lack the bargaining ability to safeguard their interests. 8 This position is based on the ‘exploitation theory’ under which the two main grounds which is the consumers have less choosing ability and must adhere to terms determined by dominated corporations. Next main ground is that traders can use significant knowledge and sophistication disparity in their benefit. 9 In the year 1991, the country became an open market and introduction LPG10 was seen were the existing ‘Monopolies and Restrictive Act (MRTP Act),1969’ was replaced in leu with modern economy and competition and mindset to further eliminate the competitive practises in the economy , therefore a new act was introduced known as ‘Competition Act, 2002’. Due to the challenges and hurdles faced by CCI, it focused on the advocacy on competition law related matters but became fully operational commission after 2007.

11 The act clearly provides a definition of the term ‘consumers’ where it states that there can be ‘any person who purchase goods either for personal use or for resale or for any commercial purpose and also who hires or avails any service either for personal or commercial purpose. ’12 Hence, we can also determine that consumer welfare is vital. The act mainly focuses on the anticompetitive agreement13, abuse of dominance14, regulation of combinations15 and competition Advocacy and Reference16 so that a competition in the market can be properly governed and regulated by the competent authority. It is to be noted that consumer protection law aims fairness whereas competition law aims fair justness in the market. Earlier time it was seen that consumer law and competition law ran parallel to each other.

As the trend in the market changed, the economist had focused more on the competition law unlike present scenario where equal importance us given to both law which competition law and consumer law. It is because of the fact that modern consumers have various choices in the market compared to earlier times and the economist have seen significant change in behaviour of economic trend. 17 Keeping this mind, it could be understood that competition law is complimentary to consumer protection law as it focuses on the market 8 R, Giesela, “Consumer Protection in Choice of Law” 44 Cornell International Law Journal (Last modified 20th April 2011).

9 Id at 8

10 Liberalisation, Privatisation and Globalisation

11 Brahm Dutt v. Union of India, Writ Petition (Civil) 490 of 2003.

12 Competition Act,2002, s. 2 (f)

13 CA,2002, s. 3

14 CA,2002, s. 4

15 CA,2002, s. 5-6

16 CA,2002, s. 49 and 21

17 Mark Armstrong, “Interactions Between Competition and Consumer Policy” 4 Competition Policy

International (Last modified 2008).

failures in the market as per reactions expressed by the customers. Hence, better competition policy and law leads to economic growth which ends up benefiting the consumer who will have better quality of choosing options and better price at the same time due to various competitors in the market. 18 Under the Consumer Protection Act, it is clearly stated that it is the right of the consumer who have the right to get assured goods at competitive prices. 19 Furthermore, to relate with competition law or general competition policy where it is observed that one of the main purposes of competition act is economic development and other is the protection of consumers. 20 Hence having a healthy and sustainable competition in the market is beneficial for the consumers who will have ample choosing ability in the market for goods and service and so on.

21 As stated above we can understand some sort of co-relation of these two concepts with their respective legislation, yet it is to be said that these legislations use different approach to aim for implementation of common objectives which is already discussed above. Under consumer protection act, the consumer is denoted as weaker party to any transaction and should be protected from the trade persons through the rights and powers stated under the act. Whereas in competition act, the consumers are indirectly protected through consumer’s well being which is by ensuring the goods and services have multiple choices for them to choose interms of quality, quantity and satisfactory price range amongst the various competitors in the market. But there is a common factor with the two acts which address the potential issue which is known as ‘restrictive trade practices’.

In consumer protection law, it describes as ‘manipulation of price or conditions of delivery or to affect the flow of supplies in the market in such a manner that it affects the price of the goods and service which will impose the consumer with unjustified costs or restriction’. This also means that under consumer protection act, the definition of the term ‘restrictive trade practices’ has broader ambit and includes the scope of manipulation of price or condition affecting the consumers. Whereas, in the competition act, ‘restrictive trade practices’ requires an agreement which can be either horizontal agreement or rule of reason standard for vertical agreement respectively between the parties in the case traders. But the act doesn’t shed much attention upon how much amount of ‘restrictive trade practices (RTPs) is an abuse of dominance position? Whether it

18 Id at 5

19 Consumer Protection Act,2019, s. 10

20 Shri Pravahan Mohanty v. HDFC Bank Limited, Chennai, Case No.17/2010

21 Excel Crop Care Limited v. Competition Commission of India, 8 [2017] 138 CLA 95 (SC)

requires rule of reason? as the act clearly prohibits the RTPs with respect to abuse of dominance. 22 But consumer protection mainly deals with ‘unfair trade practices’ for which a committee was set up to give review and suggestion MRTP ACT,1969 regarding protection of consumer interms of deceptive advertisements used by the traders to attract consumers or other unfair trade practices by them to mislead the consumers. At the end, it was recommended by the competent authority to include a separate chapter on ‘unfair trade practices’ which was implemented later on the consumers, traders and other person can identify the prohibited practise and be cautioned about it.

23 Hence, in consumer protection act, ‘unfair trade practices’, it never the intent to look in detail the harm effects on competition or group of consumers but in competition act, the ‘CCI’ requires to remove the practice which may any negative impact on the market, develop sustainability, safeguarding interest of consumers24 and liberty of trade practices of others competitors in this market. 25 Another difference approach is ‘interest of consumers’. Under competition act, there is no requirement of adjudicating authority which should be initiated by the consumers. In contrast, the aim of the Consumer Protection Act is safeguarding the interests of end customers, not dealers involved in other transactions. Under competition legislation, ‘consumer welfare’ is used indirectly by improving efficiency resulting in more choices available to the consumers.

Whereas the consumer protection act addresses the ‘consumer welfare’ by addressing the dispute directly to the traders. This can be understood by the ‘DLF case’26 where we can see the blurred lines between the competition and the consumer process. The CCI in this case observed that DLF’s real estate unfair means have affected the competition in that sector and region significantly. Through the judgement given by the competent authority it is observed that CCI identified the harm in the competition space and considers the abuse of dominance position and unfair trade practice by DLF through this provides measure so that this type of incident is not used by other competitors as well as considers and accepts to face the consequence that would affect the consumer welfare. 27

22 Suhail Nathani and Pınar Akman, “The Interplay Between Consumer Protection and Competition Law in

India” 5 Journal of Antitrust Enforcement 197-215 (Last modified on 2017). 23 Dr.S.Chakravarthy, “Consumer Protection and Competition Policy” CUTs (Last updated on 05 September 2024).

24 Preamble of Competition Act,2002

25 Competition Act,2002, s. 18

26 Belaire Owner’s Association v. DLF Limited, HUDA, CASE NO.19/2010

27 Id at 22

In recent years, there has been significant changes seen in the market where new mode of trade has emerged known as ‘E-commerce’. E-commerce has seen a rapid growth in recent years through development of digitalisation which has been the aim of the government to country to attain digital economy. Some well-known examples of e-commerce sector is Amazon, Flipkart, Myntra in cloth sector who have a vigorous competition in the e-commerce market and there are e-commerce sector ranging from food to grocery to electronics and so on who enjoy absolute dominance in the respective sector/market. Even though e-commerce sector has made the lives of the consumer by providing various services like instant delivery, subscription-based services and so on but we have to understand this mode of trade is still in its nascent stage.

It may have lots of benefits, but it comes with challenges for which permanent and strict is still in the progress of developing. As we have seen above mentioned reason of competition law protecting consumer and consumer protection law protecting consumers may have similar agenda, but their strategy is different. Furthermore, we can say that when it comes to ecommerce and digital sector, consumer is actually a weaker party as defined by consumer protection law. 28 Some of the challenges faced in recent times when establishing a nexus between competition law and e-commerce such as misleading advertisement leading to transparency issue with the company, unfair trade practices, duplication of products, quality issues, privacy data protection and insufficient consumer redressal mechanism and so on.

29 Even though unfair trade practices in relation to e-commerce is governed under ‘Consumer Protection Act, 2019 which allows the central government to take measures to prevent unfair trade practices. ’30 But any e-commerce agreement between among trader or with consumers, those agreement could be anti-competitive agreements which is regulated under Competition Act, 2002. 31 Then we can say that e-commerce matters can be dealt by CCI32 or under competition law. An anti-competitive agreement has its own sub-categories to further differentiate, explain in detail about the agreement which is horizontal anti-competitive agreements and vertical anti-competitive agreements. These agreements in general aspect include ‘any arrangement, understanding or concerted action entered into between the

28 Id at 5

29 Chahak Kanojia and Milind Bhaskar, “The Settlement and Commitment Scheme Under the Competition

Amendment Bill, 2022: Analysis and Implications for Competition Law Enforcement and Consumer Protection in E-Commerce” 6 International Journal of Law Management & Humanities 2477 - 2493 (Last modified 2023).

30 Consumer Protection Act,2019, s. 94

31 Competition Act,2002, s. 3

32 Competition Commission of India

parties’. 33 So e-commerce has a nexus with competition law as well. Furthermore, if there is agreement and e-commerce have dominance in the market, then abuse of dominance position shall be regulated. 34 The competition law recognises the unfair trade practices in e-commerce transaction. 35 Ecommerce companies is a digital platform where advertising, promoting the brand is very crucial for the growth of these companies. Competition law considers these methods in the market but also governs that these methods should not override so much that the few companies start to show dominance in the market. 36 If this happens strict needs to be taken by the commission so that smaller e-commerce companies benefit from it as well as consumers also have choices in the market.

37 This has the competent authority to have strict regulation in the e-commerce sector for which one of the step taken by the authority is to introduce the ‘Settlement and Commitment Scheme under Competition (Amendment) Act,2023’. 38 This scheme is an effective method for resolving breach in competition law, promote fair trade practices and protect the rights of the consumers in markets quickly. This scheme would apply to contraventions specifically relating to ‘anti-competitive agreements and abuse of dominance’ which will reduce litigation. 39 We can conclude that competition law has it’s own approach to protect the consumers at the same time safeguard their interest with the changing need in the market. Competition in the market should not adversely affect both the competitors and consumers.

A competition should be fair, healthy that’s what the commission aims and promotes so that many entrepreneurs may join and don’t fear of not able to sustain in the market. Similarly, the consumer should be able to trust the traders and get ample choices in the market to choose which will improve the economy and result in positive growth. 33 Antitrust, Competition Commission of India available at: https://www. cci. gov. in/antitrust (last visited on 16 September 2024).

34 Competition Act,2002, s. 4

35 Competition Act,2002, s. 4(2)

36 Geetanjali Sharma, “Competition Law & E-Commerce: Emerging Trends” 1 ICLR (Last visited on 16

September 2024). 37 Kian Ganz, “Why Did CCI Write Google a Bad Report Card?”, Live Mint, Sept. 16, 2015, available at: https://www.livemint.com/Companies/5D4c8f9kKB41IyL99Rfm4H/Why-did-CCI-write-Google-a-bad-reportcard.html (last visited on 16 September 2024). 38 Salient Features of Competition (Amendment) Act,2023, Competition Commission of India available at: https://www.cci.gov.in/images/publications_booklet/en/competition-amendment-act-2023-salientfeatures1684831868.pdf (last visited on 16 September 2024).

39 Id at 29

CONSUMER PROTECTION LAW IN RELATION TO CONSUMER PROECTION

HISTORY OF THE CONSUMER PROTECTION ACT, 2019

Till the mid-80s, sellers directly approached the buyer rather than marketing and advertising products. There are various laws related to the trade and commercial activities in India. Despite these laws, the rights of consumers cannot be protected. In India, consumers had to fight for a particular item. The terms and conditions for purchases, as well as the marketing policies, were strict. The vendor now needed to put out the effort to market their goods and draw in customers. This resulted from aggressive and competitive advertising strategies. Because rigorous advertising also contained false and misleading advertisements to entice clients, this opened a new avenue and scope of perspectives to be included in the act; this constituted unfair commercial conduct.

The Indian industries disregarded the customer entirely, especially when providing after-sale support or honouring their pledges to replace or repair. Because our laws are so intricate, expensive, and time-consuming, and because it takes an advocate to argue the case, consumers frequently feel powerless40. Demand and supply are crucial terms in economics. Supply is more than demand, then there will be no issues. Sometimes, demands are more than supply. Consumers are severely affected in such cases. In such cases, the price is increased unexpectedly rather than normal rate. So, not all can afford these products. Consumers’ security becomes the main issue in such a situation. The Association of India was formed in 1956. Another two associations were also established such as the Consumer Guidance Society of India in 1966 and the Consumer Education and Research Centre in 1978.

The Consumer Protection Act, 1986 came into force for the protection of the interests of consumers. There are provisions for the establishment of authorities for the resolution of disputes. Still, it contains various loopholes in the Consumer Protection Act, 1986. So, the Consumer Protection Act, 2019 came into force for the improvement of consumers' 40 Shubhangi Gandhi “Evolution and Development of the Consumer Protection Act”, Lex Forti, Apr. 23, 2020, available at: Evolution and Development of the Consumer Protection Act - LexForti (Last visited on 23rd September 2024).

positions41. Changes in the Consumer Protection Act, 2019: • Definition of ‘Consumer’: This amendment increases the ambit of the term ‘consumer’. It includes all persons who are engaged in online or offline trading through electronic means. This recent act includes not only the manufacturer or the service providers but also all persons including all who are involved in this. Consumers of free or personal services do not come under this ambit. • Jurisdiction: According to the previous act, only consumers can file complaints where the opposite party resides or carries on business. As per the new amendment, a complaint is filed within the jurisdiction where the complainant resides. Now, there is a computer means to file a complaint. There is no fee to file a complaint whose compensation is less than five lakhs.

The National Forum, State Forum, and District Forum can deal with a case whose claim is more than ten crores, one to ten crores, and one crore. • Dispute Resolution Mechanism: This recent amendment includes the provisions of mediation. This act established the National Dispute Redressal Commission, State Dispute Redressal Commission, and District Dispute Redressal Commission. This act provides statutory powers to resolve consumers' complaints. • Misleading Advertisement: This recent act includes the provisions of ‘misleading advertisement’ for the 41 Akash Choudhury “Consumer Protection Act: History, Definition, Forums and Definition”, yourarticlelibrary, available at: Consumer Protection Act: History, Definition, Forums and Evaluation (yourarticlelibrary. com) (Last visited on 26th September 2024)

punishment of traders. This provides a fair-trading system. • Products Liability: This amendment provides the provisions of product liability. This act specifies the liabilities of manufacturers and service providers for defective products. • Unfair Trade Practices: This recent act introduced the provisions of unfair trade practices to protect the rights and personal information of customers. It imposes a penalty on the traders for violation of the provisions42.

HIERARCHY OF THE PROTECTION OF CUSTOMERS UNDER THE CONSUMERS

PROTECTION ACT, 2019

CONSUMER PROTECTION COUNCIL

The recent amendment establishes three councils for the protection of customers. “The National Consumer Protection Council”, “State Consumer Protection Council”, and “District Consumer Protection Council” are established to protect consumers’ rights. National Consumer Protection Council: This council is governed by the Central Government. This council has an ‘advisory council’ along with the Minister-in-charge of the Department of Consumer Affairs in the Central Government who is the ‘Chairperson’. There are some officials and non-official members in that council. This council is governed by the chairperson. There is only one meeting each year. The time and place of that meeting is fixed by the chairperson. The purpose of this meeting is to promote and protect the rights of consumers. State Consumer Protection Council: This council is governed by the State Government.

This council has an ‘advisory council’ along 42 Trupti Kunchikarve, “Comparative Analysis of the Consumer Protection Act (1986-2019)”, A K Legal, Apr. 16, 2023, available at: Comparative Analysis of The Consumer Protection Act (1986-2019) - A. K. Legal & Associates (aklegal. in) (Last visited on 16th September, 2024)

with the Minister-in-charge of the Department of Consumer Affairs in the State Government who is the ‘Chairperson’. There are some officials and non-official members in that council. There are at least ten members who are appointed by the Central Government. This council is governed by the chairperson. There are at least two meetings each year. The time and place of that meeting is fixed by the chairperson. The purpose of this meeting is to promote and protect the rights of consumers. District Consumer Protection Council: This council is established by the State Government for every district. This council has an ‘advisory council’ along with the Minister-in-charge of the Department of Consumer Affairs in the State Government who is the ‘Chairperson’. There are some officials and non-official members in that council. This council is governed by the chairperson.

There are at least two meetings each year. The time and place of that meeting is fixed by the chairperson. The purpose of this meeting is to promote and protect the rights of consumers43. Central Consumer Protection Authority: This statutory body was established by the Central Government to protect consumers’ rights against unfair trade practices and false or misleading advertisements. The Central Government has the power to pass an order – a) Prevent the manufacturing of goods or services which are dangerous, or hazardous. b) Purchasers are recalled to return the prices of goods or services. c) This authority can prevent the trading which violates the consumers’ rights. This authority also imposed a penalty on the traders for misleading advertisements which is up to ten lakhs and subsequent conviction leads to fifteen lakhs.

This act also provides the rights of search and seizure of documents, records, and articles leading to the violation of customers' rights44.

43 The Consumer Protection Act, 2019 (35 of 2019) ss. 3,6,8

44 The Consumer Protection Act, 2019 (35 of 2019) ss. 10

THE REDRESSAL MECHANISM

The recent amendment provides the complete establishment of a redressal mechanism. The redressal mechanism is divided into three parts. The “National Dispute Redressal Commission”, “State Dispute Redressal Commission”, and “District Dispute Redressal Commission” are established to deal with consumers’ cases. District Dispute Redressal Commission This commission is established by the State Government for every district. It consists of the President and two members appointed by the central government. The value of the complaint is up to one crore. The complaint can be filed within the jurisdiction where the opposite party or the complainant resides. The complaint can be filed by the consumers, association or more than one consumer, the Central or State Government. The president conducts every proceeding before the District Commission.

Every proceeding should be completed within twenty-one days from the date of the complaint's filing. State Dispute Redressal Commission This State Government established this commission. It consists of the President and four members appointed by the central government. The value of the complaint shall be from one crore to ten crore. This commission entertains the appeal against the order of the district commission. The president needs to make an opinion within one month from the date of such reference. The complaint can be filed within the jurisdiction where the opposite party or the complainant resides or where the cause of action occurs. The president and one or more members conduct this proceeding before the State Commission. Every proceeding should be completed within thirty days from the date of appeal. The State Commission can declare any term of the contract void.

National Dispute Redressal Commission The national Government established this commission. It consists of the President and four members appointed by the central government. The value of the complaint shall be more than ten crores. This commission entertains the appeal against the order of the state commission or the central authority. The president needs to make an opinion within two months from the date

of such reference. The president and one or more members conduct this proceeding before the State Commission. Every proceeding should be completed within thirty days from the date of appeal. The State Commission can declare any term of the contract void. The aggrieved party can appeal for setting aside an ex-parte order. The aggrieved party can appeal in the Supreme Court against the order of the National Dispute Redressal Commission within thirty days from the date of such order. If the aggrieved party has any order of payment by the national commission. Supreme Court will not entertain his appeal unless fifty cents of that order is paid45.

EFFECTS OF THE CONSUMER PROTECTION ACT, 2019 ON THE FINANCIAL

MARKET AND BUSINESS SECTORS

The financial market consists of two types of markets: capital market and money market. The capital market deals with long-term financial assets. The money market deals with short-term financial assets. All financial transactions happen through online mediums. In recent business developments, manufacturers and service providers come under the electronic medium. Ecommerce brings profit to business sectors. There should be protection laws for the investors of the financial market as well as the consumers of the business sectors46. The recent amendment of the Consumers Protection Act, 2019 includes provisions for the protection of consumers under ‘e-commerce’ and ‘electronic service providers. The Consumer Financial Protection Act, 2010 was implemented to protect the transaction of financial assets. This act is also known as Dodd-Frank Wall Street and the Consumer Protection Act, 2010.

Consumer Financial Protection Bureau was established to regulate financial matters. This act filled suit against companies who engaged in unfair and restrictive trade practices. The main purposes of this are: a) It provides an economically better life by providing choices in financial products. b) It enforces or takes actions against unfair companies and their unfair activities.

45 The Consumer Protection Act, 2019 (35 of 2019) ss. 28, 42, 53

46 Adam Hayes, “Consumer Financial Protection Act: What its Means, How it Works” Investopedia, Mar. 18, 2023, available at: Consumer Financial Protection Act: What it Means, How it Works (investopedia.com) (Last visited on 26th September, 2024)

c) This bureau needs to publish guidelines for educating financial companies47.

CHALLENGES IN THE IMPLEMENTATION OF THE CONSUMER PROTECTION

ACT, 2019

The Central Consumer Protection Authority (CCPA) was established to advance, defend, and strengthen consumer rights. The government will determine which regional offices to open; the headquarters will be in the NCR. The regulatory body will oversee the infringement of consumer rights, deceptive advertising, and unfair business practices. The government will focus on enforcing and strengthening this authority, which will greatly impact the 2019 Act. Apart from this admirable initiative, particularly concerning investigations and inquiries, the use of this authority is not clear. There is an overlap between the director general's functions, in the case of the investigative branch, and search and seizure functions. The CCPA can mandate product recalls, pay back costs, give instructions, and impose sanctions on suppliers or endorsers.

It is interesting to note that the only forum for appealing such orders is the National Commission. It is yet unclear under what conditions or standards the National Commission will consider such instances. It is uncertain if the current cases will be moved due to the shift in financial jurisdiction. The new jurisdiction will only apply to newly filed cases48.

CASE LAWS

In this case, the Delhi Development Authority allotted a single plot to more than one person. The plaintiff took money from two persons for a single plot. There was a record of assigning the plot to any person other than the complainant. There was a defense of a non-assigning plot to a person because he failed payment. National Commission passed the order of Rs. 5 lakhs for unfair trade practices and Rs. 30 lakhs for harassing the complainant for eighteen years49. The appellant insured his truck from the respondent’s company. His vehicle was stolen from Chopanki Bhiwari, Rajasthan on 23rd March, 2010. The next day, an FIR was lodged. On 31st March, the appellant filed an insurance claim along with the documents as required by the

47 Jim Probasco “Consumer Financial Protection Bureau (CFPB) Overview” Investopedia, Sept. 27, 2023,

available at: Consumer Financial Protection Bureau (CFPB) Overview (investopedia.com) accessed on 27th September 2023 48 Shubhangi Gandhi “Evolution and Development of the Consumer Protection Act”, Lex Forti, April 23, 2020, available at: Evolution and Development of the Consumer Protection Act - LexForti (Last visited on 23rd September 2024)

49 Delhi Development Authority v. DC Sharma, REVISION PETITION NO. 895 OF 2013

insurance company. The officers of the respondent confirmed the theft. The appellant made several requests for insurance claims. Then, he sent a legal notice to the respondent. Respondent said that the appellant did not inform them immediately. There was a breach of conditions. So, the respondent was not liable to pay compensation. Supreme Court held that the appellant cannot intimate this information to the respondent on unavoidable grounds. This minor failure does not amount to the rejection of the insured claim. The insurance company cannot reject compensation on technical grounds50.

CONCLUSION

We can say that there is a blur line of common goal, aspects of the two legislation. If the competition policies and law is efficient and creates an environment for the entrepreneurs as well as focus on maintaining a fair and healthy balance competition amongst the traders and protection of consumers interest which might restore the effective competition in the market. It will lead to higher economic efficiency, development, new innovations and improvement in consumer welfare. The consumers in return will experience a wide range of choosing options in good and services at an affordable price. Whereas consumer protection law mainly focuses on the transaction of consumers to upgrade the market condition so that they have multiple options.

But it is to be understood that both laws recognise and define the ‘consumers’ differently, in consumer protection law, it recognises ‘any buyer or user of goods or service but doesn’t recognise a person who buys or uses goods and services for commercial purpose or resale as a consumer’ whereas in the competition act, it recognises ‘the person who uses goods and services for commercial purpose as a consumer. ’ This gives a wide safeguard or protection of the public interest. This could be a point to prove that they similar yet different at the same time interms of consumer protection. Competition Act, 2002 focuses on various aspects like the fair competition, now putting more focus on protecting consumers, preventing any adverse effect in the market. Whereas Consumer Protection Act focuses solely on protecting consumers giving a broader aspect.

It is highly recommended that introduction of taking reference to other forums may be given. For instance, there has been various situation where the competition commission of India had closed various cases due to the absence of any competition related issue in the compliant , then there should be provision which can make the commission transfer the case to consumer forum as to ensure justice to the consumer who was not able to get remedy

50 Om Prakash v. Reliance General Insurance, AIR 2017 SUPREME COURT 4836

under the commission or competition law and vice versa. This will ensure positive development and improvement in consumer welfare along with fair competition. We can conclude that competition law has indirect role of consumer protection. Even though they operate differently with different procedures and regulations, but both have common agenda, which is ensuring the country has fair, transparent, smooth operation of any mode of trade to lead to a positive growth in the nation wealth and defend the public interest leading to positive consumer welfare.