The Consumer Chronicle: Rights and Duties

Introduction:

In any trade two parties are involved known as the ‘seller’ i.e., the person who is offering any product or service for sale and ‘buyer’ or ‘consumer’ i.e., the person who is purchasing a product or availing a service offered for sale in exchange for mostly money (sometimes goods).

Even retailers, producers, manufacturers of goods and services are consumers of some product or service. The advent of technology has made the world at large a marketplace and it will not be erroneous to say that every person is a consumer of something. Since every person is a consumer in some way or the other it becomes important to ensure that their interests are shielded and to ensure this, the Consumer Protection Act, 1986 was enforced which has now been replaced by the Consumer Protection Act, 2019 which came into effect on 20^th July, 2020.

The act of 1986 has been replaced because the trading culture in India has changed in leaps and bounds since then. The act now also covers electronic commerce or e-commerce which means trading activities taking place through electronic devices with the aid of the internet. Buyers and sellers both have some rights conferred on them and with these rights, certain responsibilities are also imposed whenever there is a purchase being made. These rights and responsibilities have been dealt with in the Sale of Goods Act, 1930.

Who is a Consumer?

A consumer is any person who ‘consumes’ goods or services for fulfilling his needs in exchange for a consideration. The word ‘consumer’ has been defined under Section 2(7) of the Consumer Protection Act, 2019[1] to mean any person who buys any goods or avails any service for a consideration which has either been wholly or partly paid or has been promised to be paid in whole or in part under any system of deferred payment. But it does not include a person who purchases goods for resale or commercial purposes. Apart from this, the act has also defined ‘rights of consumers’ under Section 6(9) to include the right:

1. To be protected from the marketing of such goods and services which are hazardous to life and property.
2. To be informed about various aspects of goods and services he is willing to buy in order to protect himself from unfair trade practices.
3. To choose from a diverse range of goods and services at a competitive price.
4. To be heard with regard to any complaint he might have and to have the assurity that his grievance is heard at an appropriate forum.
5. The right to seek redressal i.e., to receive compensation against any such unfair trade practices or exploitations he might have faced.
6. The right to have awareness about the rights and remedies available to him.

Caveat Emptor

The word caveat is a Latin term which translates to ‘let him beware’ and means a warning or a caution given to a person and the word emptor means buyer. Therefore, the expression caveat emptor connotes let the buyer beware. It is a very prominent common law maxim which originated in the 19^th century and states that the buyer must make himself cognizant about all the relevant information related to a product or service he is purchasing. The said rule places a responsibility on the buyer to exercise his judgment by carefully analyzing a product or service he is willing to buy.

Section 16 of the Sale of Goods Act 1930 deals with the rule of caveat emptor and reads as- “Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale.”[2]

As per the rule of caveat emptor, a consumer carefully examines the product or service he is willing to buy, and only when he is satisfied with all the aspects of the said product or service, he makes the purchase. A consumer has to apply his judgment and skill while checking the product and if he feels the product lacks in any aspect, he always has the option of rejecting that product or service. The consumer has to make the purchase at his own risk and if the good turns out to be defective then the consumer is held liable for the default and he cannot shift the liability on the person from whom he has brought the goods. However, there are certain exceptions to this rule which are stated below:

1. Under Section 16(1) the following conditions are necessary:
   • Buyer has either through express or implied means communicated to the seller the purpose for which he needs the product or service.
   • After expressing the purpose, the buyer relies on the seller’s judgment or skill.
   • The product in question is of such description which is supplied by the seller in his ordinary course of business.
2. Section 16 (2): When the product is of merchantable quality i.e., it is reasonable to expect that it is fit for the purposes it is normally used for.
3. Section 16 (3): When seller deviates from warranty with regard to implied quality or fitness of the product.
4. Section 16 (4):  An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.[3]
5. Section 17: When a purchase is made by relying on the sample shown by the seller then it will be implied that the goods received afterward correspond to the same quality and is free from any sort of defect.

The said rule of caveat emptor, however, has been vanishing and the rule of caveat venditor has surfaced with the passage of time which translates to ‘let the seller beware’ and it places a greater amount of responsibility on the seller with regard to the quality of the goods and services offered by him. But even with the invasion of the rule of caveat venditor, the consumer has to act reasonably before making a purchase.

Duties of Consumer

In today’s tech-savvy era, the internet has made a variety of products and services available at our doorsteps while we are sitting with comfort at our homes. It becomes all the more important for a consumer to be aware and secure himself from any fraud and act reasonably. Following are some of the duties which a consumer should perform for his benefit:

1. Read the descriptions carefully embedded either on the product or on the packaging of the product to know all the necessary details such as the ingredients, date of manufacturing, date of expiry, whether or not it is approved by the regulatory authorities, etc.
2. A consumer should never forget to take a receipt whenever a purchase is made to serve as a proof in case any issue arises. He should also read the receipt to make sure that he has not been charged wrongfully.
3. In case the product purchased turns out to be defective or faulty, register a complaint at an appropriate forum.
4. He should also be aware of the various rights available at his disposal as without having knowledge of the rights vested in his hands, he will not be able to exercise them.
5. A consumer also has a duty to pay to the seller the amount due for the goods so purchased or the services so availed.
6. He should also not indulge in buying goods from the black market.
7. He should make a reasonable examination before making a purchase.

Case Laws

National Insurance Co.Ltd vs Hindustan Safety Glass Works Ltd.[4]

The court in this case held that- “In our opinion, in a dispute concerning a consumer, it is necessary for the courts to take a pragmatic view of the rights of the consumer principally since it is the consumer who is placed at a disadvantage vis-à- vis the supplier of services or goods. It is to overcome this disadvantage that a beneficent legislation in the form of the Consumer Protection Act, 1986 was enacted by Parliament.”

Sehgal School Of Competition vs Dalbir Singh[5]

The court held that- “We have already taken a view which has been upheld by the National Commission and the same view was also taken by the Supreme court no institute or coaching center shall charge lump sum fees for the whole duration or should refund the fees if there is deficiency in service in the quality of coaching, etc. or for which period the student does not attend coaching as any clause saying that fees once paid shall not be refunded are unconscionable and unfair and therefore not enforceable.”

Conclusion

We are living in a world where ‘consumer is the king’ and consumer satisfaction is of prime importance for any seller. With the emergence of liberalization, privatization, and globalization the whole world has become a huge market place and consumers have a wide array of options to choose products or services he likes the best. Sellers and consumers both have certain rights and responsibilities towards each other which they must fulfill in order to ensure that both of them benefit from the transaction.

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References:

[1] Egazette.nic.in, http://egazette.nic.in/WriteReadData/2019/210422.pdf (last visited Dec 8, 2020).

[2] Legislative.gov.in, http://legislative.gov.in/sites/default/files/A1930-3_0.pdf (last visited Dec 8, 2020).

[3] Sale of Goods Act, 1930, Acts of Parliament, 1930 (India)

[4]  National Insurance Co.Ltd v Hindustan Safety Glass Works Ltd AIR2017SC1900

[5] Sehgal School Of Competition v Dalbir Singh, 2009(3)C.P.C.187