Raima Dutt, Jindal Global Law School
Consumer Protection and Competition laws are two distinct sets of legislation that aim to improve/protect consumers' well-being. They strive to accomplish this by mandating businesses to disclose information about their products or services and allowing consumers the ability to cancel orders in their contacts with enterprises.
The Consumer Protection Act 2019 empowers the Central Government to set up the Central Consumer Protection Authority to monitor and control issues regarding Consumer rights violations, false or deceptive advertising and unfair trade practices that are detrimental to the consumer’s interests.
The Competition Act 2002 strives to protect consumer interests and maintain effective competition between enterprises by helping organizations to have market dominance by offering low-priced, innovative products of better quality.
Section 4 of the Competition Act 2002 protects consumers by stating that a company or firm is said to be abusing its position of dominance if it hinders technical or scientific progress relating to goods or services to the detriment of consumers. Section 18 of the competition act states that the Competition Commission of India has the authority to take Suo moto action in case there are any anti-competitive activities. Section 19(4) of the act states that consumer dependence on the firm and entry barriers ascertain dominant position. According to Section 19(6) and 19(7), many factors influence the appropriate geographical and product market such as the preferences of the consumers.
Comments