Unit 3: Consumer & environment protection
Mercantile Law notes · PTU syllabus (BBA502-18)
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Unit summary
Consumers and the environment both need legal protection from harmful business practices. This unit covers the objectives, features and structure of the Consumer Protection Act and of the Environment Protection Act.
After this unit you can
- Explain the objectives and features of the Consumer Protection Act, 2019
- Describe the consumer dispute redressal structure and the CCPA
- Explain the objectives and features of the Environment Protection Act, 1986
- Describe the powers of the central government under the EPA
PTU syllabus topics
- Objectives
- features and structure of the Consumer Protection Act
- objectives
- features and structure of the Environment Protection Act
Consumer rights
Safety, information, choice, redressal
District Commission
Goods or services worth up to ₹50 lakh
State Commission
Above ₹50 lakh up to ₹2 crore
National Commission
Above ₹2 crore
CCPA
Acts on unfair trade and misleading ads
Topic 1
Consumer Protection Act, 2019: objectives and features
Objectives: protect consumers' interests and rights, provide quick and inexpensive redressal, and curb unfair trade practices and misleading advertisements.
- Consumer: a person who buys goods or hires services for consideration, not for resale or commercial purposes; includes online buyers.
- Six consumer rights: safety, information, choice, to be heard, to seek redressal and consumer awareness.
- New features: Central Consumer Protection Authority (CCPA), product liability, e-commerce rules, mediation, e-filing of complaints, and penalties for misleading ads and endorsements.
Topic 2
Structure of consumer redressal
District Commission
Up to ₹50 lakh
State Commission within 45 days
State Commission
Above ₹50 lakh up to ₹2 crore
National Commission
National Commission
Above ₹2 crore
Supreme Court
The CCPA can investigate, order recalls, refunds and discontinuation of unfair practices, and impose penalties for false or misleading advertisements (up to ₹10 lakh, rising to ₹50 lakh for repeat offences).
Topic 3
Environment Protection Act, 1986: objectives and features
Enacted after the Bhopal gas tragedy (1984) to protect and improve the environment and implement decisions of the UN Conference on the Human Environment (Stockholm, 1972). Features: an umbrella law covering air, water and land; "environment" includes water, air, land and their interrelationship with living beings; empowers the central government to set standards and take measures.
Topic 4
Structure and powers under the EPA
Set standards
Emission and discharge of pollutants
Restrict industries
Location and processes in certain areas
Handling hazardous substances
Rules and procedures
Inspection and entry
Power to enter and sample
Directions
Close, prohibit or regulate any industry, including stopping power or water
Penalties
Imprisonment up to 5 years or fine up to ₹1 lakh, or both (amended penalties now apply)
Authorities: the central government, the Central Pollution Control Board, State Pollution Control Boards and environmental laboratories.
Key terms
- Consumer
- A person buying goods or services for consideration, not for resale
- CCPA
- Central Consumer Protection Authority
- Product liability
- Responsibility for harm caused by defective products
- Environment
- Water, air, land and their interrelationship with living things
- Pollution Control Boards
- Bodies enforcing pollution standards
Quick revision
- CPA 2019: six rights, CCPA, product liability, e-commerce.
- Commissions: District ≤ ₹50 lakh; State ≤ ₹2 crore; National above.
- EPA 1986: umbrella law after Bhopal; central government sets standards and gives directions.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Who is a consumer under the CPA, 2019?
- Q2.List the six consumer rights.
- Q3.What is the role of the CCPA?
- Q4.State the pecuniary jurisdiction of the District Commission.
- Q5.Why was the Environment Protection Act enacted?
Long-answer questions
- Q1.Explain the objectives and features of the Consumer Protection Act, 2019.
- Q2.Explain the consumer dispute redressal machinery.
- Q3.Explain the objectives, features and powers under the Environment Protection Act, 1986.
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