Punishments for Consumer Rights Violation

The Central Consumer Protection Authority has the power to penalize an individual or entity for violating consumer rights. This is ensured through various means such as fines, taking back the defective goods¹, reimbursements for such goods/services², or discontinuation of unfair trade practices³.

Punishments for false or misleading advertisements

The manufacturer, advertiser or endorser is liable for false or misleading advertisements. However, the endorser’s liability in these cases only arises when they have not done their research⁴ before endorsing such an advertisement. The punishment is:

• For the first offence: A fine which may extend up to Rs. 10 lakh and jail time up to 2 years⁵. 
• For every repeat offence: A fine which may extend up to Rs. 50 lakh and jail time up to 5 years may be awarded⁵. 
• The Central Authority can also prohibit them from endorsing any product for up to 1 year. In case of subsequent offences, it can be extended up to 3 years⁶. 
• Failure to comply with these directions of the Central Authority can result in jail time for up to 6 months or a fine extending to Rs. 20 lakh⁷. 

Punishments for sale of adulterated products

Any action of the manufacturer or retailer involving the sale, import, storage or distribution of adulterated food is punishable. The following punishments apply:

• When there is no injury⁸ to the consumer, like any kind of pain or death, jail time for up to 6 months and a fine of up to Rs. 1 lakh may be granted⁹.
• When the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be granted¹⁰.
• When there is grievous hurt to the consumer, jail time for up to 7 years and a fine of up to Rs. 5 lakhs may be granted¹¹.
• When the adulteration has caused the death of the consumer, jail time for not less than 7 years and extending up to life, and a fine of not less than Rs. 10 lakhs may be granted¹². 

Additionally, the Consumer Authority may suspend the license of the manufacturer for up to 2 years, when it is the first offence¹³ or cancel the license of such manufacturer altogether if the offence is repeated¹³. 

Punishments for sale of spurious goods

Spurious goods are those which are falsely claimed to be genuine¹⁴ or are fake or imitative of real, original goods. These are often of inferior quality and infringe upon the trademarks and copyrights of legal owners of the original goods. A crucial example is that of medicines or cheap make-up products found in local markets. Any action of the manufacturer involving the sale, import, storage or distribution of these goods, is punishable as follows:

1. If the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be awarded¹⁵.
2. When such spurious goods cause grievous hurt to a consumer, jail time up to 7 years and a fine up to Rs. 5 lakhs may be awarded to the manufacturer¹⁶.
3. When the good bought has caused the death of a consumer, jail time for a minimum period of 7 years extending up to life jail time and a minimum fine of Rs. 10 lakhs may be awarded¹⁷.

1. Section 20(a), Consumer Protection Act, 2019[↩]
2. Section 20(b), Consumer Protection Act, 2019[↩]
3. Section 20(c), Consumer Protection Act, 2019[↩]
4. Section 21(5), Consumer Protection Act, 2019[↩]
5. Section 89 & Section 21 (2), Consumer Protection Act, 2019[↩][↩]
6. Section 21(3), Consumer Protection Act, 2019[↩]
7. Section 88, Consumer Protection Act, 2019[↩]
8. Section 2(23), Consumer Protection Act, 2019[↩]
9. Section 90(1)(a), Consumer Protection Act, 2019[↩]
10. Section 90(1)(b), Consumer Protection Act, 2019[↩]
11. Section 90(1)(c), Consumer Protection Act, 2019[↩]
12. Section 90(1)(d), Consumer Protection Act, 2019[↩]
13. Section 90(3), Consumer Protection Act, 2019[↩][↩]
14. Section 2(43), Consumer Protection Act, 2019[↩]
15. Section 91(1)(a), Consumer Protection Act, 2019[↩]
16. Section 91(1)(b), Consumer Protection Act, 2019[↩]
17. Section 91(1)(c), Consumer Protection Act, 2019[↩]