Legal Notice Under Consumer Protection Act

Overview

The Consumer Protection Act 2019 (the Act) establishes a three-tier consumer dispute redressal mechanism, comprising the following:

  1. District Consumer Disputes Redressal Commission (DCDRC)
  2. State Consumer Disputes Redressal Commission (SCDRC)
  3. National Consumer Disputes Redressal Commission (NCDRC)

If a consumer suffers any loss or injury due to a deficiency in service or unfair trade practice by a trader or service provider, they can file a complaint with any of these forums.

The Act outlines various types of notices that the consumer forums can issue:

  • Notice of Conciliation: This notice invites the disputing parties to engage in a conciliation process. If an amicable settlement is reached through conciliation, the matter is resolved without the need for a hearing.
  • Notice of Hearing: This notice informs the parties about the date and time of the hearing, requiring their appearance before the forum.
  • Notice of Examination: This notice mandates a witness to appear before the forum and provide evidence.
  • Notice of Investigation: This notice directs an expert to investigate the matter and submit a report to the forum.

The issuance of notices plays a crucial role in the consumer dispute redressal process, ensuring that parties are informed and have the opportunity to participate.

Importance of Consumer Protection

Consumer protection encompasses laws and regulations aimed at safeguarding consumers from unfair, deceptive, or fraudulent practices. It is essential due to the inherent power imbalance between consumers and businesses, where businesses often possess more resources and knowledge, potentially exploiting consumers.

The significance of consumer protection is underscored by several reasons:

  • To protect consumers from harm: Laws and regulations prevent consumers from being misled or exploited, such as requiring businesses to disclose product ingredients to prevent allergic reactions.
  • To promote fair competition: Consumer protection measures ensure businesses compete fairly, prohibiting practices like price-fixing that could lead to consumers paying more than necessary.
  • To empower consumers: Laws that mandate clear and accurate information about products empower consumers to make informed choices, enhancing their ability to navigate the marketplace effectively.

Purpose of a Legal Notice Under the Consumer Protection Act

A legal notice under the Consumer Protection Act serves as a formal communication directed to the party accused of violating the Act. Its primary purpose is to notify the party of the alleged infringement and to demand corrective measures.

The legal notice must adhere to specific requirements, including being in writing and served according to the Act’s stipulations. It should contain the following details:

  • The names and addresses of the involved parties
  • The date and time of the purported violation
  • The nature of the violation
  • The desired relief sought

Should the party fail to rectify the situation within the stipulated timeframe, the consumer reserves the right to lodge a complaint with the appropriate consumer forum.

This notice represents a pivotal stage in the consumer protection process, enabling consumers to formally communicate their grievances and demand corrective action. Failure to address these concerns can prompt consumers to escalate the matter through official channels.

Who Can File a Legal Notice in India Under the Consumer Protection Act

  1. Buyers of goods or services: Consumers, as defined under the Consumer Disputes Act, 2019, encompass individuals who purchase goods or avail services for consideration. Gratuitous receipt of services or products may not warrant compensation under the Consumer Protection Act.

  2. E-commerce customers: The revised Act extends consumer definition to include patrons of e-commerce platforms and recipients of electronic services, such as insurance.

  3. Cases of damaged and defective goods: Consumers have recourse to various consumer dispute resolution fora for issues related to damaged, defective, or substandard products and services.

  4. Unfair trade practices: The updated legal framework incorporates new offenses like mandatory tied-in purchases and unfair trade practices, such as failure to issue bills or refusal to honor returns initiated within thirty days.

  5. Malpractices: The Consumer Protection Act addresses a spectrum of malpractices, including false product claims, sale of substandard or spurious goods, and adulteration in food products.

  6. Misleading Advertisements: Stringent provisions are in place to penalize businesses for misleading advertisements, with endorsers also held accountable for product claims.

Territorial Limits for Determining the Jurisdiction of Appropriate Consumer Dispute Redressal Agency

The Consumer Protection Act establishes a three-tiered system for resolving consumer disputes, comprising district, state, and national levels. Each agency is granted territorial jurisdiction, enabling them to address disputes arising within their designated geographical boundaries. Consequently, a district forum handles disputes within its jurisdiction, the State Commission adjudicates appeals from all districts, and the National Commission holds jurisdiction over the entire nation, including appeals from State Commissions.

Pecuniary Limits under the New Consumer Protection Act, 2019 for Determining Jurisdiction

  • The District Consumer Disputes Resolution Forum is empowered to address online consumer complaints where the value of goods or services does not exceed ₹1 crore.
  • The State Consumer Disputes Resolution Commission handles disputes where the value exceeds ₹1 crore but does not exceed ₹10 crores.
  • The National Commission Disputes Resolution Commission exercises jurisdiction when the value exceeds ₹10 crores.

Appeals and Revisions under the Consumer Protection Act

  • Appeals for cases decided by the District Forum can be made to the State Commission within thirty days of the order.
  • Subsequently, appeals from the State Commission can be escalated to the National Commission, and further, appeals from the National Commission’s orders can be brought before the Supreme Court.
  • Additionally, Consumer dispute redressal agencies possess the authority to revise their orders.

Procedure of Filing a Complaint in the Consumer Court

The Consumer Protection Act, 2019 (the Act) outlines a three-tier consumer dispute redressal mechanism comprising:

  1. District Consumer Disputes Redressal Commission (DCDRC)
  2. State Consumer Disputes Redressal Commission (SCDRC)
  3. National Consumer Disputes Redressal Commission (NCDRC)

A consumer can initiate a complaint with any of these forums if they have incurred loss or injury due to a deficiency in service or unfair trade practice by a trader or service provider.

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

  1. Drafting the Complaint: Begin by drafting the complaint, ensuring it is clear, concise, and in writing. It should specify:

    • The names and addresses of the involved parties
    • The date and time of the alleged violation
    • The nature of the violation
    • The relief sought

  2. Serving the Complaint: Serve the complaint on the opposing party following the Act’s prescribed method, typically through registered post with acknowledgement due.

  3. Payment of Fees: Pay the applicable fee for filing the complaint, which varies based on the claim’s value.

  4. Adjournment: If the opposing party fails to appear on the hearing date, the forum may adjourn the matter.

  5. Presentation of Evidence: Both parties may present evidence supporting their respective cases, including documents, witnesses, or expert reports.

  6. Judgment: After considering all evidence, the forum delivers its judgment, either in favor of the consumer or the opposing party.

  7. Appeal: If dissatisfied with the forum’s judgment, the consumer can appeal to a higher forum.

Points to Remember for Drafting a Legal Notice for Consumer Cases

  • The notice must be in writing and served according to the Consumer Protection Act, 2019.
  • It should be clear, concise, and specify the case facts and relief sought.
  • The notice must be signed by the issuing party and drafted in compliance with the Consumer Protection Act, 2019.

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] regarding 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 found to be defective and did not meet the standards as promised by you. Despite numerous attempts, you have failed to rectify the defects in the [Product/Service]. Consequently, [Consumer] has incurred significant loss and injury. Therefore, I demand that you undertake the following corrective actions within 15 days of receiving this notice:

  1. Refund the full amount paid by [Consumer] for the [Product/Service].
  2. Provide compensation to [Consumer] for the loss and injury sustained.

Failure to comply with the specified corrective actions within the stipulated time period will compel [Consumer] to file a complaint with the appropriate consumer forum.

Yours faithfully,
[Your name]

Please note that this is a generic format, and you may need to adapt it according to your specific situation. It’s advisable to seek legal advice before issuing any legal notice under the Consumer Protection Act.

Tips for Issuing a Legal Notice in India Under the Consumer Protection Act

  1. Maintain Documentation: Preserve the original invoice along with all attachments such as warranty cards, guarantees, and advertisement copies. These documents serve as crucial evidence to support your claims throughout the case.

  2. Record Mode of Payment: Clearly mention the mode of payment in the notice and retain proof of payment. Electronic transactions are preferable for their ability to provide clear evidence of payment receipt. Ensure you have a screenshot or printed record of electronic transactions or cheque book leaf page.

  3. Utilize Online Complaint Portals: If available, utilize the service provider’s or manufacturer’s website for lodging consumer grievances. Keep records of the online complaint, including the reference number, email communication, and any responses received.

  4. Document Repair Expenses: If any expenses were incurred for repairing damaged or defective goods, retain proof of such repairs along with pictures showcasing the defect. These records can be essential during the legal proceedings.

  5. Prefer Registered or Speed Post: While not compulsory, sending the legal notice via registered or speed post is advisable as it helps in proving the receipt of the notice. This adds credibility to your claim.

  6. Obtain Acknowledgment for Personal Delivery: If delivering the notice personally, ensure to obtain an acknowledgment of receipt from the seller or their representatives. This serves as evidence that the notice was received.

  7. Adhere to Limitation Period: Be mindful of the limitation period under the Consumer Protection Act, which is two years from the date the cause of action arose. Promptly initiate the process of approaching consumer disputes redressal agencies to avoid unnecessary delays.

By following these procedural details, you can effectively issue a legal notice under the Consumer Protection Act, laying a strong foundation for your case while safeguarding your rights as a consumer.

Why Trademarkwala?

Trademarkwala is India’s leading professional platform comprising lawyers, chartered accountants, and company secretaries with extensive experience. Serving over 1000 companies and LLPs monthly, we combine technological prowess with the expertise of our legal professionals to execute legal tasks efficiently.

High Customer Satisfaction With a remarkable customer score of 9.1, we streamline your government interactions by managing all paperwork. Our aim is to provide absolute clarity on the process, enabling you to set realistic expectations.

A Team of 300+ Benefit from our extensive team of over 300 seasoned business advisors and legal professionals. With just a phone call, you gain access to top-notch legal services.

Access to Expertise We offer access to dependable professionals and oversee all your legal requirements. Track the progress of your tasks conveniently through our online platform.

Clarity and Realism By taking care of all paperwork, we facilitate a seamless interaction with the government. Our emphasis on clarity ensures that you have realistic expectations regarding the incorporation process.

Join us and discover the simplicity and convenience we bring to your legal needs!

Book A Call
Book A Call