70. Administrative control.—
(1) The National Commission shall have the authority to lay down
such adequate standards in consultation with the Central Government from time to time, for better
protection of the interests of consumers and for that purpose, shall have administrative control over all the
State Commissions in the following matters, namely:—
(a) monitoring performance of the State Commissions in terms of their disposal by calling for
periodical returns regarding the institution, disposal and pendency of cases;
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(b) investigating into any allegations against the President and members of a State Commission
and submitting inquiry report to the State Government concerned along with copy endorsed to the
Central Government for necessary action;
(c) issuance of instructions regarding adoption of uniform procedure in the hearing of matters,
prior service of copies of documents produced by one party to the opposite parties, furnishing of
english translation of judgments written in any language, speedy grant of copies of documents;
(d) overseeing the functioning of the State Commission or the District Commission either by way
of inspection or by any other means, as the National Commission may like to order from time to time,
to ensure that the objects and purposes of the Act are best served and the standards set by the National
Commission are implemented without interfering with their quasi-judicial freedom.
(2) There shall be a monitoring cell to be constituted by the President of the National Commission to
oversee the functioning of the State Commissions from the administrative point of view.
(3) The State Commission shall have administrative control over all the District Commissions within
its jurisdiction in all matters referred to in sub-section
(1).
(4) The National Commission and the State Commissions shall furnish to the Central Government
periodically or as and when required, any information including the pendency of cases in such form and
manner as may be prescribed.
(5) The State Commission shall furnish, periodically or as and when required to the State Government
any information including pendency of cases in such form and manner as may be prescribed.
71. Enforcement of orders of District Commission, State Commission and National
Commission.—Every order made by a District Commission, State Commission or the National
Commission shall be enforced by it in the same manner as if it were a decree made by a Court in a suit
before it and the provisions of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of
1908) shall, as far as may be, applicable, subject to the modification that every reference therein to the
decree shall be construed as reference to the order made under this Act.
72. Penalty for non-compliance of order.—
(1) Whoever fails to comply with any order made by the
District Commission or the State Commission or the National Commission, as the case may be, shall be
punishable with imprisonment for a term which shall not be less than one month, but which may extend to
three years, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend
to one lakh rupees, or with both.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the
District Commission, the State Commission or the National Commission, as the case may be, shall have
the power of a Judicial Magistrate of first class for the trial of offences under sub-section
(1), and on
conferment of such powers, the District Commission or the State Commission or the National
Commission, as the case may be, shall be deemed to be a Judicial Magistrate of first class for the
purposes of the Code of Criminal Procedure, 1973.
(3) Save as otherwise provided, the offences under sub-section
(1) shall be tried summarily by the
District Commission or the State Commission or the National Commission, as the case may be.
73. Appeal against order passed under section 72.—
(1) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973 (2 of 1974), where an order is passed under sub-section
(1) of section
72, an appeal shall lie, both on facts and on law from—
(a) the order made by the District Commission to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court.
(2) Except as provided in sub-section
(1), no appeal shall lie before any court, from any order of a
District Commission or a State Commission or the National Commission, as the case may be.
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(3) Every appeal under this section shall be preferred within a period of thirty days from the date of
order of a District Commission or a State Commission or the National Commission, as the case may be:
Provided that the State Commission or the National Commission or the Supreme Court, as the case
may be, may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that the
appellant had sufficient cause for not preferring the appeal within the said period of thirty days.
CHAPTER V
MEDIATION
74. Establishment of consumer mediation cell.—
(1) The State Government shall establish, by
notification, a consumer mediation cell to be attached to each of the District Commissions and the State
Commissions of that State.
(2) The Central Government shall establish, by notification, a consumer mediation cell to be attached
to the National Commission and each of the regional Benches.
(3) A consumer mediation cell shall consist of such persons as may be prescribed.
(4) Every consumer mediation cell shall maintain—
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by regulations.
(5) Every consumer mediation cell shall submit a quarterly report to the District Commission, State
Commission or the National Commission to which it is attached, in the manner specified by regulations.
75. Empanelment of mediators.—
(1) For the purpose of mediation, the National Commission or the
State Commission or the District Commission, as the case may be, shall prepare a panel of the mediators
to be maintained by the consumer mediation cell attached to it, on the recommendation of a selection
committee consisting of the President and a member of that Commission.
(2) The qualifications and experience required for empanelment as mediator, the procedure for
empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the
terms and conditions for empanelment, the code of conduct for empanelled mediators, the grounds on
which, and the manner in which, empanelled mediators shall be removed or empanelment shall be
cancelled and other matters relating thereto, shall be such as may be specified by regulations.
(3) The panel of mediators prepared under sub-section
(1) shall be valid for a period of five years, and
the empanelled mediators shall be eligible to be considered for re-empanelment for another term, subject
to such conditions as may be specified by regulations.
76. Nomination of mediators from panel.—The District Commission, the State Commission or the
National Commission shall, while nominating any person from the panel of mediators referred to in
section 75, consider his suitability for resolving the consumer dispute involved.
77. Duty of mediator to disclose certain facts.—It shall be the duty of the mediator to disclose—
(a) any personal, professional or financial interest in the outcome of the consumer dispute;
(b) the circumstances which may give rise to a justifiable doubt as to his independence or
impartiality; and
(c) such other facts as may be specified by regulations.
78. Replacement of mediator in certain cases.—Where the District Commission or the State
Commission or the National Commission, as the case may be, is satisfied, on the information furnished by
the mediator or on the information received from any other person including parties to the complaint and
after hearing the mediator, it shall replace such mediator by another mediator.
30
79. Procedure for mediation.—
(1) The mediation shall be held in the consumer mediation cell
attached to the District Commission, the State Commission or the National Commission, as the case may
be.
(2) Where a consumer dispute is referred for mediation by the District Commission or the State
Commission or the National Commission, as the case may be, the mediator nominated by such
Commission shall have regard to the rights and obligations of the parties, the usages of trade, if any, the
circumstances giving rise to the consumer dispute and such other relevant factors, as he may deem
necessary and shall be guided by the principles of natural justice while carrying out mediation.
(3) The mediator so nominated shall conduct mediation within such time and in such manner as may
be specified by regulations.
80. Settlement through mediation.—
(1) Pursuant to mediation, if an agreement is reached between
the parties with respect to all of the issues involved in the consumer dispute or with respect to only some
of the issues, the terms of such agreement shall be reduced to writing accordingly, and signed by the
parties to such dispute or their authorised representatives.
(2) The mediator shall prepare a settlement report of the settlement and forward the signed agreement
along with such report to the concerned Commission.
(3) Where no agreement is reached between the parties within the specified time or the mediator is of
the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to
the concerned Commission.
81. Recording settlement and passing of order.—
(1) The District Commission or the State
Commission or the National Commission, as the case may be, shall, within seven days of the receipt of
the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the
matter accordingly.
(2) Where the consumer dispute is settled only in part, the District Commission or the State
Commission or the National Commission, as the case may be, shall record settlement of the issues which
have been so settled and continue to hear other issues involved in such consumer dispute.
(3) Where the consumer dispute could not be settled by mediation, the District Commission or the
State Commission or the National Commission, as the case may be, shall continue to hear all the issues
involved in such consumer dispute.
CHAPTER VI
PRODUCT LIABILITY
82. Application of Chapter.—This Chapter shall apply to every claim for compensation under a
product liability action by a complainant for any harm caused by a defective product manufactured by a
product manufacturer or serviced by a product service provider or sold by a product seller.
83. Product liability action.—A product liability action may be brought by a complainant against a
product manufacturer or a product service provider or a product seller, as the case may be, for any harm
caused to him on account of a defective product.
84. Liability of product manufacturer.—
(1) A product manufacturer shall be liable in a product
liability action, if—
(a) the product contains a manufacturing defect; or
(b) the product is defective in design; or
(c) there is a deviation from manufacturing specifications; or
(d) the product does not conform to the express warranty; or
(e) the product fails to contain adequate instructions of correct usage to prevent any harm or any
warning regarding improper or incorrect usage.
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(2) A product manufacturer shall be liable in a product liability action even if he proves that he was
not negligent or fraudulent in making the express warranty of a product.
85. Liability of product service provider.—A product service provider shall be liable in a product
liability action, if—
(a) the service provided by him was faulty or imperfect or deficient or inadequate in quality, nature or
manner of performance which is required to be provided by or under any law for the time being in force,
or pursuant to any contract or otherwise; or
(b) there was an act of omission or commission or negligence or conscious withholding any
information which caused harm; or
(c) the service provider did not issue adequate instructions or warnings to prevent any harm; or
(d) the service did not conform to express warranty or the terms and conditions of the contract.
86. Liability of product sellers.—A product seller who is not a product manufacturer shall be liable
in a product liability action, if—
(a) he has exercised substantial control over the designing, testing, manufacturing, packaging or
labelling of a product that caused harm; or
(b) he has altered or modified the product and such alteration or modification was the substantial
factor in causing the harm; or
(c) he has made an express warranty of a product independent of any express warranty made by a
manufacturer and such product failed to conform to the express warranty made by the product seller
which caused the harm; or
(d) the product has been sold by him and the identity of product manufacturer of such product is
not known, or if known, the service of notice or process or warrant cannot be effected on him or he is
not subject to the law which is in force in India or the order, if any, passed or to be passed cannot be
enforced against him; or
(e) he failed to exercise reasonable care in assembling, inspecting or maintaining such product or
he did not pass on the warnings or instructions of the product manufacturer regarding the dangers
involved or proper usage of the product while selling such product and such failure was the proximate
cause of the harm.
87. Exceptions to product liability action.—
(1) A product liability action cannot be brought against
the product seller if, at the time of harm, the product was misused, altered, or modified.
(2) In any product liability action based on the failure to provide adequate warnings or instructions,
the product manufacturer shall not be liable, if—
(a) the product was purchased by an employer for use at the workplace and the product
manufacturer had provided warnings or instructions to such employer;
(b) the product was sold as a component or material to be used in another product and necessary
warnings or instructions were given by the product manufacturer to the purchaser of such component
or material, but the harm was caused to the complainant by use of the end product in which such
component or material was used;
(c) the product was one which was legally meant to be used or dispensed only by or under the
supervision of an expert or a class of experts and the product manufacturer had employed reasonable
means to give the warnings or instructions for usage of such product to such expert or class of
experts; or
(d) the complainant, while using such product, was under the influence of alcohol or any
prescription drug which had not been prescribed by a medical practitioner.
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(3) A product manufacturer shall not be liable for failure to instruct or warn about a danger which is
obvious or commonly known to the user or consumer of such product or which, such user or consumer,
ought to have known, taking into account the characteristics of such product.
CHAPTER VII
OFFENCES AND PENALTIES
88. Penalty for non-compliance of direction of Central Authority.—Whoever, fails to comply
with any direction of the Central Authority under sections 20 and 21, shall be punished with
imprisonment for a term which may extend to six months or with fine which may extend to twenty lakh
rupees, or with both.
89. Punishment for false or misleading advertisement.—Any manufacturer or service provider
who causes a false or misleading advertisement to be made which is prejudicial to the interest of
consumers shall be punished with imprisonment for a term which may extend to two years and with fine
which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment
for a term which may extend to five years and with fine which may extend to fifty lakh rupees.
90. Punishment for manufacturing for sale or storing, selling or distributing or importing
products containing adulterant.—
(1) Whoever, by himself or by any other person on his behalf,
manufactures for sale or stores or sells or distributes or imports any product containing an adulterant shall
be punished, if such act—
(a) does not result in any injury to the consumer, with imprisonment for a term which may extend
to six months and with fine which may extend to one lakh rupees;
(b) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term
which may extend to one year and with fine which may extend to three lakh rupees;
(c) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which
may extend to seven years and with fine which may extend to five lakh rupees; and
(d) results in the death of a consumer, with imprisonment for a term which shall not be less than
seven years, but which may extend to imprisonment for life and with fine which shall not be less than
ten lakh rupees.
(2) The offences under clauses
(c) and
(d) of sub-section
(1) shall be cognizable and non-bailable.
(3) Notwithstanding the punishment under sub-section
(1), the court may, in case of first conviction,
suspend any licence issued to the person referred to in that sub-section, under any law for the time being
in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence.
Explanation.—For the purposes of this section,—
(a) "adulterant" means any material including extraneous matter which is employed or used for
making a product unsafe;
(b) "grievous hurt" shall have the same meaning as assigned to it in section 320 of the Indian
Penal Code (45 of 1860).
91. Punishment for manufacturing for sale or for storing or selling or distributing or importing
spurious goods.—
(1) Whoever, by himself or by any other person on his behalf, manufactures for sale or
stores or sells or distributes or imports any spurious goods shall be punished, if such act—
(a) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term
which may extend to one year and with fine which may extend to three lakh rupees;
(b) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which
may extend to seven years and with fine which may extend to five lakh rupees;
(c) results in the death of a consumer, with imprisonment for a term which shall not be less than
seven years, but may extend to imprisonment for life and with fine which shall not be less than ten
lakh rupees.
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(2) The offences under clauses
(b) and
(c) of sub-section
(1) shall be cognizable and non-bailable.
(3) Notwithstanding the punishment under sub-section
(1), the court may, in case of first
conviction, suspend any licence issued to the person referred to in that sub-section, under any law for
the time being in force, for a period up to two years, and in case of second or subsequent conviction,
cancel the licence.
92. Cognizance of offence by court.—No cognizance shall be taken by a competent court of any
offence under sections 88 and 89 except on a complaint filed by the Central Authority or any officer
authorised by it in this behalf.
93. Vexatious search.—The Director General or any other officer, exercising powers under section
22, who knows that there are no reasonable grounds for so doing, and yet—
(a) searches, or causes to be searched any premises; or
(b) seizes any record, register or other document or article, shall, for every such offence, be punished
with imprisonment for a term which may extend to one year, or with fine which may extend to ten
thousand rupees or with both.
CHAPTER VIII
MISCELLANEOUS
94. Measures to prevent unfair trade practices in e-commerce, direct selling, etc.—For the
purposes of preventing unfair trade practices in e-commerce, direct selling and also to protect the interest
and rights of consumers, the Central Government may take such measures in the manner as may be
prescribed.
95. Presidents, members, Chief Commissioner, Commissioner and certain officers to be public
servants.—The Presidents and members of the District Commission, the State Commission and the
National Commission, and officers and other employees thereof, the Chief Commissioner and the
Commissioner of the Central Authority, the Director General, the Additional Director General, the
Director, the Joint Director, the Deputy Director and the Assistant Director and all other officers and
employees of the Central Authority and other persons performing any duty under this Act, while acting or
purporting to act in pursuance of any of the provisions of this Act, shall be deemed to be public servants
within the meaning of section 21 of the Indian Penal Code (45 of 1860).
96. Compounding of offences.—
(1) Any offence punishable under sections 88 and 89, may, either
before or after the institution of the prosecution, be compounded, on payment of such amount as may be
prescribed:
Provided that no compounding of such offence shall be made without the leave of the court before
which a complaint has been filed under section 92:
Provided further that such sum shall not, in any case, exceed the maximum amount of the fine, which
may be imposed under this Act for the offence so compounded.
(2) The Central Authority or any officer as may be specially authorised by him in this behalf, may
compound offences under sub-section
(1).
(3) Nothing in sub-section
(1) shall apply to person who commits the same or similar offence, within
a period of three years from the date on which the first offence, committed by him, was compounded.
Explanation.—For the purposes of this sub-section, any second or subsequent offence committed after
the expiry of a period of three years from the date on which the offence was previously compounded,
shall be deemed to be a first offence.
(4) Where an offence has been compounded under sub-section
(1), no proceeding or further
proceeding, as the case may be, shall be taken against the offender in respect of the offence so
compounded.
(5) The acceptance of the sum of money for compounding an offence in accordance with sub-section
(1) by the Central Authority or an officer of the Central Authority empowered in this behalf shall be
34
deemed to amount to an acquittal within the meaning of the Code of Criminal Procedure, 1973 (2 of
1974).
97. Manner of crediting penalty.—The penalty collected under section 21 and the amount collected
under section 96 shall be credited to such fund as may be prescribed.
98. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall
lie against the Presidents and members of the District Commission, the State Commission and the
National Commission, the Chief Commissioner, the Commissioner, any officer or employee and other
person performing any duty under this Act, for any act which is in good faith done or intended to be done
in pursuance of this Act or under any rule or order made thereunder.
99. Power to give directions by Central Government.—
(1) Without prejudice to the foregoing
provisions of this Act, the Central Authority, shall, in exercise of its powers or the performance of its
functions under this Act, be bound by such directions on questions of policy, as the Central Government
may give in writing to it from time to time:
Provided that the Central Authority shall, as far as practicable, be given an opportunity to express its
views before any direction is given under this sub-section.
(2) The decision of the Central Government whether a question is one of policy or not shall be final.
100. Act not in derogation of any other law.—The provisions of this Act shall be in addition to and
not in derogation of the provisions of any other law for the time being in force.
101. Power of Central Government to make rules.—
(1) The Central Government may, by
notification, make rules for carrying out any of the provisions contained in this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for, —
(a) the other class or classes of persons including public utility entities under clause
(19) of
section 2;
(b) the contest, lottery, game of chance or skill which are to be exempted under item
(b) of sub-
clause (iii) of clause
(47) of section 2;
(c) the manner of issuing bill or cash memo or receipt for goods sold or services rendered under
sub-clause (vii) of clause
(47) of section 2;
(d) the number of other official or non-official members of the Central Council under clause
(b)
of sub-section
(2) of section 3;
(e) the time and place of meeting of Central Council and the procedure for the transaction of its
business under sub-section
(2) of section 4;
(f) the number of Commissioners in the Central Authority under sub-section
(2) of section 10;
(g) the qualifications for appointment, method of recruitment, procedure of appointment, term of
office, salaries and allowances, resignation, removal and other terms and conditions of service of the
Chief Commissioner and other Commissioners of the Central Authority under section 11;
(h) the salaries and allowances payable to, and the other terms and conditions of service of, the
officers and other employees of the Central Authority under sub-section
(2) of section 13;
(i) the qualifications for appointment of Director General, Additional Director General, Director,
Joint Director, Deputy Director and Assistant Director and the manner of appointment under sub-
section
(2) of section 15;
(j) the manner of taking copies or extracts of document, record or article seized or produced
before returning to the person under sub-section
