Executive Summary:
The Department of Consumer Affairs addresses concerns regarding retailers charging for carry bags, which the National Consumer Disputes Redressal Commission has ruled as an unfair trade practice under the Consumer Protection Act, 2019. The Consumer Protection Act, 2019, enacted to modernize consumer protection, establishes the Central Consumer Protection Authority (CCPA) and outlines provisions against unfair trade practices. The CCPA, established on 24.07.2020, is mandated to prevent consumer detriment from unfair trade practices.
Key Points / Main Content:
Consumer Protection Act, 2019:
* Repealed the Consumer Protection Act, 1986, to modernize consumer protection in the era of globalization and e-commerce.
* Establishes the Central Consumer Protection Authority (CCPA).
* Simplifies the adjudication process in Consumer Commissions, including enhanced pecuniary jurisdiction, online complaint filing, video conferencing for hearings, and deemed admissibility of complaints within 21 days.
* Includes provisions for product liability and penalties for the manufacture/sale of adulterated products/spurious goods.
* Provides for rules to prevent unfair trade practices in e-commerce and direct selling.
* Defines "unfair trade practice" in Section 2(47) as any unfair method or deceptive practice used to promote the sale, use, or supply of goods or services.
Central Consumer Protection Authority (CCPA):
* Established on 24.07.2020, as an executive agency to prevent consumer detriment from unfair trade practices.
* Mandated to initiate class actions, including enforcement of recalls, refunds, and returns of products.
* Core mandate is to prevent and regulate false or misleading advertisements prejudicial to public interest.
Carry Bags Ruling:
* The National Consumer Disputes Redressal Commission ruled on 27.11.2024 that charging for carry bags is an unfair trade practice under the Consumer Protection Act, 2019.
Impact Analysis:
Retailers:
* Impact: Charging for carry bags is now considered an unfair trade practice, potentially leading to legal repercussions.
* Action Required: Cease charging consumers for carry bags to avoid legal action under the Consumer Protection Act, 2019.
Consumers:
* Impact: Protected from being charged for carry bags by retailers.
* Action Required: Be aware of their rights and report retailers who continue to charge for carry bags to the appropriate authorities.
Central Consumer Protection Authority (CCPA):
* Impact: Responsible for enforcing the provisions against unfair trade practices, including retailers charging for carry bags.
* Action Required: Monitor and take action against retailers who violate the ruling against charging for carry bags.
Key Entities Referenced
SHRI PRABHAKAR REDDY VEMIREDDY: Member of Parliament who raised the question regarding unfair trade practices.
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION: The Government Ministry responsible for consumer affairs, food, and public distribution.
National Consumer Dispute Redressal Commission: A quasi-judicial commission in India that adjudicates consumer disputes.
SHRI B.L.VERMA: The Minister of State for Consumer Affairs, Food and Public Distribution who provided the answer to the question.
Consumer Protection Act, 1986: The former consumer protection law in India, which was repealed.
Consumer Protection Act, 2019: The current consumer protection law in India, enacted to modernize the framework governing consumer protection.
Central Consumer Protection Authority (CCPA): An executive agency established under the Consumer Protection Act, 2019, to protect consumer rights and prevent unfair trade practices.
Revision Petition No.1715 of 2019 and 774 of 2020: The specific revision petition number in which National Consumer Disputes Redressal Commission ruled that charging money for carry bags is unfair trade practice.
Government of India
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs
LOK SABHA
UNSTARRED QUESTION NO. 474
TO BE ANSWERED ON 23.07.2025
UNFAIR TRADE PRACTICES
474. SHRI PRABHAKAR REDDY VEMIREDDY:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION be pleased to state:
(a) the manner in which the Government justifies retailers asking buyers to pay money for carry bags
and does it not tantamount to unfair trade practice and deficiency in service by retailers;
(b) whether it is a fact that the National Consumer Dispute Redressal Commission ruled that charging
money for carry bags is tantamount to unfair trade practice;
(c) if so, whether any directive issued by the Government to retailers for giving carry bags free of cost;
and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI B.L.VERMA)
(a) to (d) : Department of Consumer Affairs is continuously working for consumer protection and
empowerment of consumers by enactment of progressive legislations. With a view to modernize the
framework governing the consumer protection in the new era of globalization, technologies, e-commerce
markets etc. Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was
enacted.
Salient features of the new Consumer Protection Act, 2019 are establishment of a Central
Consumer Protection Authority(CCPA); simplification of the adjudication process in the Consumer
Commissions such as enhancing pecuniary jurisdiction of the Consumer Commissions, online filing of
complaint from the Consumer Commission having jurisdiction over the place of work/residence of the
consumer irrespective of the place of transaction, videoconferencing for hearing, deemed admissibility of
complaints if admissibility is not decided within 21 days of filing; provision of product liability; penal
provisions for manufacture/sale of adulterated products/spurious goods; provision for making rules for
prevention of unfair trade practice in e-commerce and direct selling.
Section 2 (47) of the Consumer Protection Act defines "unfair trade practice" as a trade practice
which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any
service, adopts any unfair method or unfair or deceptive practice.Under the provisions of the Consumer Protection Act, 2019, the Central Consumer Protection
Authority (CCPA) which is an executive agency, came into existence on 24.07.2020. It is designed to
intervene, to prevent consumer detriment arising from unfair trade practices and to initiate class action(s),
including the enforcement of recalls, refunds and return of products. Its core mandate is to prevent and
regulate false or misleading advertisements which are prejudicial to the public interest.
National Consumer Disputes Redressal Commission vide its order dated 27.11.2024 in Revision
Petition No.1715 of 2019 and 774 of 2020 ruled that charging money for carry bags is tantamount to unfair
trade practice under the Consumer Protection Act, 2019.
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