Disputes
Consumer Disputes
A consumer has filed a complaint against my company. What should I do? #
Take it seriously and respond within the prescribed timeline. Consumer complaints are filed before the District Consumer Disputes Redressal Commission, the State Commission, or the National Commission depending on the value of the claim. You will receive a notice with a deadline to file your written response. Failure to respond can result in an ex parte order against you. The Consumer Protection Act, 2019 covers deficiency in service, defective goods, unfair trade practices, and misleading advertisements. Engage legal counsel to review the complaint, assess your liability, and prepare a proper response. Many consumer complaints can be resolved through negotiation or mediation at an early stage.
What constitutes an unfair trade practice under the Consumer Protection Act? #
An unfair trade practice includes any practice that uses deceptive methods to promote the sale or supply of goods or services. This covers false or misleading representations about the quality, standard, grade, composition, style, or model of goods, offering gifts or prizes with the intention of not providing them, manufacturing spurious goods, and non-compliance with product safety standards. The 2019 Act broadened the definition to include practices in e-commerce, digital marketing, and online services. The Guidelines for Prevention and Regulation of Dark Patterns (2023) specifically address deceptive design practices on digital platforms. We advise businesses on compliance and represent them in proceedings arising from unfair trade practice allegations.
Can a company be held liable for misleading advertisements? #
Yes. Under the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) can take action against misleading advertisements, including ordering the discontinuation of the advertisement, imposing penalties of up to Rs. 10 lakh (or Rs. 50 lakh for repeat offences), and prohibiting the endorser from making endorsements for up to one year (or three years for repeat offences). The manufacturer, service provider, advertiser, advertising agency, and endorser can all be held liable. The CCPA has actively pursued cases involving misleading health claims, unsubstantiated product claims, and non-disclosure in influencer marketing. We advise brands and agencies on reviewing advertising content for compliance before publication.
What is product liability under Indian law? #
The Consumer Protection Act, 2019 introduced a specific product liability framework for the first time in Indian law. A product manufacturer, product seller, or product service provider can be held liable if a product causes harm to a consumer due to a manufacturing defect, design defect, deviation from manufacturing specifications, failure to conform to an express warranty, or inadequate instructions or warnings. The product liability claim can be brought by any person who is injured by the product, not just the purchaser. This is a significant expansion from the earlier regime. We advise manufacturers, importers, and sellers on product liability risk management, including product warnings, recall procedures, and insurance.