By S.Bageerathan, Advocate, Practicing at Madras High Court
Consumer Law in India: The Consumer Protection Act, 2019 has significantly transformed consumer rights in India, especially in the context of modern marketplaces and digital transactions. Recent rulings by the Supreme Court and the National Consumer Disputes Redressal Commission (NCDRC) have further clarified important provisions of the law, strengthening consumer protections and holding manufacturers, advertisers, and service providers accountable.
Advertiser and Endorser Liability
The Act places stringent liability on advertisers and endorsers, including celebrities and social media influencers, for promoting misleading products. In Kozyflex Mattresses Pvt. Ltd. v. SBI General Insurance Company Ltd., the Supreme Court reiterated that endorsers must ensure the accuracy of the claims they promote. The Act mandates that misleading endorsements make both the advertiser and endorser liable, a principle the Supreme Court has consistently upheld in its decisions, promoting fairness in advertising
Product Liability
The Act enhances product liability by holding manufacturers, sellers, and service
providers accountable for defects in their products, whether due to manufacturing flaws, design defects, or inadequate warnings. In Jyoti Devi v. Suket Hospital (2024), the Supreme Court enhanced compensation for medical negligence, ensuring that manufacturers and service providers take full responsibility for harm caused by their products. This ruling emphasizes that manufacturers cannot evade liability by shifting blame to others in the supply chain.
E-Commerce and Digital Rights
With the rise of digital transactions, the Act includes e-commerce platforms under its ambit. In Apple India Pvt. Ltd. v. Harish Chandra Mohanty (2024), the Supreme Court ruled that companies like Apple cannot be held liable for failing to trace stolen products, affirming that e-commerce platforms must ensure transparency and maintain grievance redressal mechanisms to resolve disputes efficiently. This case highlights the need for digital platforms to provide accurate product information and facilitate fair consumer treatment.
Compensation for Deficiency in Services and Medical Negligence
The courts have emphasized the need for comprehensive compensation in cases of service deficiency or medical negligence. In Jyoti Devi v. Suket Hospital (2024), the Supreme Court awarded enhanced compensation for medical negligence,
ensuring that victims are restored as closely as possible to their original position. The Court's focus on both economic and non-economic damages ensures that consumers are adequately compensated for physical, emotional, and financial harm.
Electronic Evidence in Consumer Disputes
The rise of e-commerce has made the admissibility of electronic evidence crucial in consumer disputes. Section 65B of the Indian Evidence Act, 1872 governs the admissibility of digital records. In Shriram Chits (India) Pvt. Ltd. v. Raghachand Associates, the Court ruled that electronic records such as emails and digital contracts are admissible if accompanied by certificates of authenticity, ensuring their reliability in consumer cases.
Conclusion:
The Consumer Protection Act, 2019 has strengthened consumer rights, ensuring
accountability for manufacturers, advertisers, and service providers. Judicial rulings in cases like Kozyflex Mattresses, Jyoti Devi, and Apple India have further clarified the law, adapting it to address challenges posed by e-commerce and digital transactions, reinforcing fairness and transparency in the marketplace.
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