Issuing Notices Under the Consumer Protection Act

Consumer Protection Act - An Overview

The Consumer Protection Act 2019 (the Act) provides for a three-tier consumer dispute redressal mechanism consisting of the following:

District Consumer Disputes Redressal Commission (DCDRC)
State Consumer Disputes Redressal Commission (SCDRC)
National Consumer Disputes Redressal Commission (NCDRC)
A consumer can file a complaint with any of these forums if they have suffered any loss or injury due to a deficiency in service or unfair trade practice by a trader or service provider.

The Act provides for the following types of notices that the consumer forums can issue:

• Notice of Conciliation: This is a notice issued by the consumer forum to the parties to the dispute, inviting them to participate in a conciliation process. Suppose the parties can reach an amicable settlement through conciliation. In that case, the matter will be disposed of without needing a hearing
• Notice of Hearing: This is a notice issued by the consumer forum to the parties to the dispute, informing them of the date and time of the hearing. The parties are required to appear before the forum on the date and time specified in the notice.
• Notice of Examination: This is a notice issued by the consumer forum to a witness, requiring them to appear before the forum and give evidence.
• Notice of Investigation: This is a notice issued by the consumer forum to an expert, requiring them to investigate the matter and submit a report to the forum.

Importance of Consumer Protection

Consumer protection is the set of laws and regulations that are designed to protect consumers from unfair, deceptive, or fraudulent practices. It is important to protect consumers because they are often in a weaker position than businesses. Businesses have more resources and knowledge, and they can use this to take advantage of consumers.

Here are some of the reasons why consumer protection is important:

• To protect consumers from harm: Consumer protection laws and regulations help to protect consumers from harm by ensuring that they are not misled or taken advantage of. For example, laws that require businesses to disclose the ingredients in their products help to protect consumers from allergic reactions.
• To promote fair competition: Consumer protection laws and regulations help to promote fair competition by ensuring that businesses compete on merit rather than by taking advantage of consumers. For example, laws that prohibit businesses from engaging in price-fixing help to ensure that consumers are not paying more for goods and services than they should.
• To empower consumers: Consumer protection laws and regulations empower consumers by giving them the knowledge and tools they need to make informed decisions about the products and services they buy. For example, laws that require businesses to provide clear and accurate information about their products help consumers to make informed choices.

Purpose of a Legal Notice Under the Consumer Protection Act

A legal notice under the Consumer Protection Act is a formal document that is sent to the party alleged to have violated the Act. The purpose of the legal notice is to inform the party of the alleged violation and to demand that they take corrective action.

The legal notice must be in writing and it must be served on the party in the manner prescribed by the Act. The notice must specify the following:

• The name and address of the parties involved
• The date and time of the alleged violation
• The nature of the violation
• The relief that is being sought

Who Can File Legal Notice In India Under Consumer Protection Act

• Buyer of goods or services- A consumer under the Consumer Disputes Act, 2019 is broadly defined as a person who avails services or buys goods for consideration. Therefore, if services or products are received for free, you may not be entitled to receive compensation under the Consumer Protection Act.
• E-commerce customers- The new act passed in 2019 has enlarged the definition of the consumer and also includes customers of e-commerce delivery websites, and also includes receivers of electronic services such as insurance, etc.
• Damaged and Defective Goods- Consumers can approach various consumer disputes resolution fora for damaged, defective, unsafe products, and services that fall short of standards.
• Unfair trade practices- Other than these regular consumer disputes, with the passing of the legal notice under consumer protection act 2019 several new offenses such as a compulsorily tied-in purchase, unfair trade practices such as non-issuance of a bill, not giving a refund or accepting returns initiated within thirty days have been included.
• Malpractices- The legal notice consumer protection Act also includes an array of malpractices such as making false claims about features of the product, selling substandard goods, manufacturing spurious goods, adulteration in food products.
• Misleading Advertisements- The Act also heavily punishes businesses for misleading advertisements and endorsers of such product claims have also been made liable.

Territorial limits for determining the jurisdiction of appropriate consumer dispute redressal agency

The online consumer complaint Protection Act has provided for a three-step process for consumer disputes redressal. These agencies have been established at three levels district level, state level, and national level. They have been given territorial jurisdiction - which means the ability to accept disputes arising within their geographical limits. Thus, a district forum can entertain disputes arising within its limits, the State Commission can decide cases in an appeal from all the districts, and the National Commission has jurisdiction over the entire country, including deciding appeals from the State Commission.

Pecuniary limits under the new Consumer Protection Act, 2019 for determining the jurisdiction

• The District Consumer Disputes Resolution Forum can now entertain consumer complaints online where the value of goods or services paid does not exceed ₹1 crore.
• The State Consumer Disputes Resolution Commission can entertain disputes where such value exceeds ₹1 crore but does not exceed ₹10 crores.
• The National Commission Disputes Resolution Commission can exercise jurisdiction where the value exceeds ₹10 crores.

Appeals and Revisions under the Consumer Protection Act

Within thirty days of passing of an order, the appeal for a case decided by District Forum lies to the State Commission. The appeal from the State Commission lies to the National Commission and from the orders of the National Commission, to the Supreme Court. The Consumer dispute redressal agencies are also clothed with the powers to revise their orders.

Procedure Of Filing A Complaint In The Consumer Court

The Consumer Protection Act, 2019 (the Act) provides for a three-tier consumer dispute redressal mechanism consisting of:

District Consumer Disputes Redressal Commission (DCDRC)
State Consumer Disputes Redressal Commission (SCDRC)
National Consumer Disputes Redressal Commission (NCDRC)
A consumer can file a complaint with any of these forums if they have suffered any loss or injury due to a deficiency in service or unfair trade practice by a trader or service provider.

The following are the steps involved in filing a complaint in the consumer court:

Draft the complaint: The first step is to draft the complaint. The complaint should be in writing and it should be clear and concise. It should specify the following:

The name and address of the parties involved
The date and time of the alleged violation
The nature of the violation
The relief that is being sought
Serve the complaint: The complaint must be served on the opposite party in the manner prescribed by the Act. The most common way to serve a complaint is by registered post with acknowledgement due.

Pay the fees: There is a fee payable for filing a complaint in the consumer court. The amount of the fee varies depending on the value of the claim.

Adjournment: If the opposite party does not appear before the forum on the date of hearing, the forum may adjourn the matter to a later date

Evidence: The parties may produce evidence in support of their case. The evidence can be in the form of documents, witnesses, or expert reports.

Judgment: The forum will give its judgment after considering all the evidence. The judgment may be in favor of the consumer or the opposite party

Appeal: If the consumer is not satisfied with the judgment of the forum, they can appeal to the higher forum.

Points to Remember for Drafting a Legal Notice for Consumer Cases

• The notice must be in writing and it must be served on the party in the manner prescribed by the Consumer Protection Act, 2019.
• The notice must be clear and concise.
• The notice must specify the facts of the case and the relief that is being sought.
• The notice must be signed by the person issuing the notice.
• The notice must be drafted in a way that is compliant with the Consumer Protection Act, 2019.

Adhere to the Complaint Format

Yes, it is important to adhere to the complaint format when filing a complaint in the consumer court. The complaint format is designed to ensure that all the necessary information is included and that the complaint is filed in the correct manner.

The complaint format for the Consumer Protection Act, 2019 is as follows:

• Name and address of the complainant: The complainant's name and address must be clearly mentioned in the complaint.
• Name and address of the opposite party: The opposite party's name and address must also be clearly mentioned in the complaint.
• Date and time of the alleged violation: The date and time of the alleged violation must be mentioned in the complaint.
• Nature of the violation: The nature of the violation must be clearly stated in the complaint.
• Relief sought: The relief that is being sought must be clearly stated in the complaint.
• Documents in support of the complaint: Any documents that are in support of the complaint must be attached to the complaint.
• Signature of the complainant: The complaint must be signed by the complainant.

Procedure To Send A Legal Notice Under Consumer Protection Act

Ideally, since the legal notice is intended to be a communication by an aggrieved consumer of goods or services to the seller, it should lay down the grievance and the remedy sought. Below mentioned is a Checklist that you can refer to while drafting a notice under consumer protection act -

• The invoice number or receipt number, which evidences the actual sale from the seller. Additionally, it also helps identify the goods or services availed.
• Clear delineation of the defects. Here, the aggrieved consumer must define the exact deficiency in service or the defect in the good. A deficiency of a defect under the law is defined as any fault, shortcoming, or imperfection.
• Mentioning expenses incurred due to the faulty good or service, or expenses in remedying the defect
• Choice of making good the defect: Here, the consumer must mention a suitable compensation for remedying the defect. This could be one of the following :
  Removing the defect in the good
  Replacing the good with new goods
  Returning the price paid for the goods
  Compensation for the injury, loss cause to the defective good or service
• In the last part of the legal notice, the consumer must highlight that in case the response to the legal notice by the seller is not appropriate, a civil, criminal, or consumer case can be filed in the appropriate forum.
• Form of sending the notice - While the Consumer Protection Act 1986 prescribes speed post as well as registered courier services as appropriate forms of sending the notice, courts in India now also accept electronic notices such as those sent over email or WhatsApp. Physical notices can be served to the opposite party’s usual place of business or profession.

Legal Notice Format for Consumer Protection Act

To,

[Name of the party alleged to have violated the Act] [Address of the party]

Date: [Date of the notice]

Sub: Legal Notice under the Consumer Protection Act, 2019

I, [Your name], hereby serve you this legal notice on behalf of [Name of the consumer] in connection with the alleged violation of the Consumer Protection Act, 2019.

The facts of the case are as follows:

On [Date], [Consumer] purchased [Product/Service] from you at [Place].
The [Product/Service] was defective and did not meet the standards promised by you.
Despite several attempts, you have failed to remedy the defects in the [Product/Service].
As a result of the above, [Consumer] has suffered loss and injury. Therefore, I demand that you take the following corrective action within 15 days of the receipt of this notice:

Refund the full amount paid by [Consumer] for the [Product/Service].
Pay [Consumer] compensation for the loss and injury suffered.
If you fail to take the corrective action within the specified time period, [Consumer] will be forced to file a complaint with the appropriate consumer forum.

Yours faithfully, [Your name]

This is just a sample format and you may need to modify it to fit your specific circumstances. It is important to consult with an attorney before issuing a legal notice under the Consumer Protection Act.

Tips For Issuing A Legal Notice In India Under The Consumer Protection Act

Since the legal notice is the first step in the process of initiating a dispute, it also becomes an important document evidencing claims as the case progresses. Hence, it’s a good idea to keep the following procedural details in mind while sending the notice.

• Keep the original invoice, with all its attachments, including the invoice numbers, warranty cards, guarantees, advertisement copy, etc, very safely.
• Mention the mode of payment - and keep the proof of payment. Ideally, electronic transactions are advisable as they help in clearly proving receipt of payment by the seller. Keep a screenshot or printed cheque book leaf page evidencing the payment.
• If the service provider or manufacturer or seller has a website for handling consumer grievances, make an online complaint and keep the reference number, email, and the response received.
• If any amount has been spent on repairing the damaged, defective good - proof of such repair, pictures of the defect, etc will also become necessary during the case.
• While there is no compulsion to use a registered or speed post, these are preferable, as they help prove receipt of the notice.
• If the notice is being delivered personally, an acknowledgment of receipt must be obtained from the seller or his affiliates.
• The limitation period under the Consumer Protection Act is two years from the date on which cause of action (or the defect in the product) arose. Hence, an aggrieved consumer must not inordinately delay the process of approaching consumer disputes redressal agencies.

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