Civil & Criminal liability

In one minute

The Consumer Protection Act, 2019 works on two tracks. The civil track gives the consumer relief such as replacement, refund and compensation. The criminal track punishes the wrongdoer with imprisonment or fine for serious wrongs, such as ignoring a Commission's order, a false advertisement, or selling adulterated or spurious goods.

In exams, this topic is asked as a short note or an essay comparing civil and criminal liability under the Act. The usual trap is to say that a consumer complaint can send a trader to jail. It cannot, except through section 72 for disobeying an order.

Legal provision

• Section 39: the District Commission, after finding a defect, deficiency or unfair trade practice proved, orders removal of the defect, replacement, refund, compensation, or other relief.
• Sections 82 to 87: product liability. A manufacturer, product service provider or product seller is liable for harm caused by a defective product.
• Section 72: failure to comply with a Commission's order is punishable with imprisonment of one month to three years, or fine of Rs 25,000 to Rs 1 lakh, or both.
• Section 88: failure to comply with a direction of the Central Authority under section 20 or 21 is punishable with imprisonment up to six months, or fine up to Rs 20 lakh, or both.
• Section 89: a false or misleading advertisement is punishable with imprisonment up to two years and fine up to Rs 10 lakh, and for each later offence imprisonment up to five years and fine up to Rs 50 lakh.
• Section 90: selling products containing an adulterant is punishable, with heavier punishment as the injury grows.
• Section 91: the same for spurious goods.
• Section 92: a court may take cognizance offences under sections 88 and 89 only on a complaint by the Central Authority or an officer it authorises.
• Section 93: an officer who makes a vexatious search or seizure is punishable with imprisonment up to one year, or fine up to Rs 10,000, or both.

Meaning and definition

Civil liability is a duty to repair the consumer's loss by giving relief or money. Criminal liability is a duty to answer to the State for an offence and to suffer the punishment the law lays down. One act, such as selling unsafe food, can lead to both.

Detailed explanation

Step 1: Civil liability: relief under section 39

• On proof of a defect, a deficiency or an unfair trade practice, the Commission may direct the opposite party to remove the defect, replace the goods, return the price, pay compensation, or stop the practice.
• Compensation is for the loss or injury the consumer suffered through the negligence of the opposite party. The Commission may also award punitive damages in a fit case.
• Civil liability needs no proof of an intention to do wrong. The consumer proves the defect or deficiency on the balance of probabilities.

Step 2: Civil liability: product liability

• A manufacturer is liable if the product has a manufacturing defect, a design defect, a deviation from manufacturing specifications, a breach of express warranty, or lacks adequate instructions or warnings (section 84).
• A manufacturer is liable even if he proves that he was not negligent or fraudulent in making the express warranty (section 84(2)).
• A product service provider is liable for faulty or deficient service, negligence, or withholding information that caused harm (section 85).
• A seller who is not the manufacturer is liable in the cases listed in section 86, such as substantial control over design or an independent express warranty.
• Section 87 lists the exceptions, such as misuse, alteration or modification of the product.

Step 3: Criminal liability: disobeying an order (section 72)

• The offence is failing to comply with any order of the District, State or National Commission.
• The punishment is imprisonment of at least one month and up to three years, or fine of at least Rs 25,000 and up to Rs 1 lakh, or both.
• The Commission has the power of a Judicial Magistrate of the first class to try the offence, and tries it summarily (section 72(2) and (3)).

Step 4: Criminal liability: offences tied to the Central Authority

• Section 88 punishes failure to follow a direction of the Central Authority under sections 20 and 21.
• Section 89 punishes a manufacturer or service provider who causes a false or misleading advertisement that harms consumers.
• For both, a court takes cognizance only on a complaint by the Central Authority or an officer it authorises (section 92).

Step 5: Criminal liability: adulterated and spurious goods

A person who manufactures for sale, stores, sells, distributes or imports adulterated goods (section 90) or spurious goods (section 91) is punished according to the result.

Result	Adulterated goods (section 90)	Spurious goods (section 91)
No injury	Up to 6 months and fine up to Rs 1 lakh	No separate clause
Injury, not grievous hurt	Up to 1 year and fine up to Rs 3 lakh	Up to 1 year and fine up to Rs 3 lakh
Grievous hurt	Up to 7 years and fine up to Rs 5 lakh	Up to 7 years and fine up to Rs 5 lakh
Death	At least 7 years, up to life, and fine at least Rs 10 lakh	At least 7 years, up to life, and fine at least Rs 10 lakh

• The offences involving grievous hurt or death are cognizable and non-bailable (sections 90(2), 91(2)).
• On first conviction the court may suspend the offender's licence for up to two years. On a second or later conviction it may cancel the licence.

Step 6: Offences by officers

Section 93 punishes the Director General or another officer who searches premises or seizes records while knowing that there are no reasonable grounds for doing so.

Step 7: Both tracks together

• A consumer can take civil relief from the Commission, while the State prosecutes an offence in a competent court.
• Criminal liability needs proof beyond reasonable doubt. Civil liability needs proof on the balance of probabilities.

• Liability under the Consumer Protection Act, 2019
  • Civil trackrelief to the consumer
    • Section 39 reliefremove defect, replace, refund, compensation
    • Sections 82 to 87product liability
  • Criminal trackpunishment by imprisonment or fine
    • Section 72disobeying a Commission order
    • Sections 88, 89, 92Central Authority directions, misleading advertisement
    • Sections 90, 91adulterated and spurious goods
    • Section 93vexatious search

Don't confuse: civil liability and criminal liability

Point	Civil liability	Criminal liability
Aim	Relief to the consumer	Punishment of the wrongdoer
Forum	Consumer Commission	Competent court; Commission only for section 72
Proof	Balance of probabilities	Beyond reasonable doubt
Outcome	Replacement, refund, compensation	Imprisonment, fine, licence suspension

Common mistakes

• Saying that a defective product alone sends the seller to prison. Only the listed offences carry punishment.
• Forgetting that section 72 punishes disobeying an order, and not the original deficiency.
• Forgetting that sections 88 and 89 offences need a complaint by the Central Authority or its authorised officer (section 92).
• Mixing the punishments for adulterated goods (section 90) and spurious goods (section 91).
• Forgetting that section 93 punishes officers too.

Apply it

Leading case laws

• Indian Medical Association v. V.P. Shantha (1995)

  Facts. Conflicting rulings on whether a doctor's or hospital's work is service under the 1986 Act.

  Principle. Medical work for a fee is service. The patient can seek civil relief before the consumer forum.

  Significance. Civil liability of professionals under the Act.

• Spring Meadows Hospital v. Harjot Ahluwalia (1998)

  Facts. A nurse injected a minor patient without a sensitivity test, leaving him in a vegetative state.

  Principle. Both the child and the parents are consumers who can each be compensated on their own head of loss.

  Significance. Compensation as civil liability.

No judgment in this collection is relied on for the criminal provisions. They rest on the text of the Act.

How to write this answer in the exam

Key points to remember

• Civil track: section 39 relief and product liability (sections 82 to 87).
• Section 72: one month to three years, fine Rs 25,000 to Rs 1 lakh.
• Section 89: up to two years and Rs 10 lakh; later offence up to five years and Rs 50 lakh.
• Sections 90 and 91: punishment grows with the injury; death carries at least seven years.
• Section 92: cognizance of sections 88 and 89 only on the Central Authority's complaint.

Quick self-test

Related topics

• Central Consumer Protection Authority (CCPA): establishment, composition and powers
• Penalties for misleading advertisement
• Continuous cause of action