Daily Current Affairs : 17-May-2024
The Supreme Court of India has made a significant ruling concerning the applicability of the Consumer Protection Act (CPA) to attorneys. In a recent judgment, the Court stated that legal professionals cannot be sued under the CPA for providing faulty services. This ruling overturns a previous decision by the National Consumer Disputes Redressal Commission (NCDRC) from 2007.
Key Aspects of the Ruling
The bench, consisting of Justices Bela M. Trivedi and Pankaj Mithal, clarified that legal services should be treated differently from other services. They emphasized that the practice of law involves many elements that are beyond the control of lawyers, and any shortcomings may affect the larger justice delivery system. The Court concluded that lawyers’ services fall outside the scope of the Consumer Protection Act.
Additionally, the Court pointed to a past judgment, the VP Shantna case of 1995, which had held doctors and medical experts liable under the CPA. The Supreme Court suggested that this judgment might need a review, recognizing that different professional services may require distinct regulatory frameworks.
Understanding the Consumer Protection Act
The Consumer Protection Act was initially enacted in 1986 with the aim of safeguarding the rights of consumers and providing mechanisms for dispute resolution. In 2019, the Act was updated to strengthen consumer rights and to adapt to changes in the economy, including the rise of online shopping and e-commerce.
Key Features of the CPA 2019
- Expanded Consumer Definition: The Act now includes consumers of online and electronic services.
- Central Consumer Protection Authority (CCPA): A new body to enforce consumer rights and handle complaints.
- Dispute Resolution: Enhanced processes for quicker resolution, including mediation and e-filing.
- Product Liability: Holds manufacturers and service providers accountable for faulty products and services.
- E-Commerce Protection: Introduces measures to prevent unfair trade practices in e-commerce and direct selling.
Important Points:
- Supreme Court Ruling: Lawyers cannot be sued under the Consumer Protection Act (CPA) for providing faulty services.
- Overturning NCDRC Decision: The ruling overturns a 2007 decision by the National Consumer Disputes Redressal Commission (NCDRC).
- Court’s Reasoning: Legal services are different from other services and may involve factors beyond a lawyer’s control, affecting the justice system.
- Review of Previous Judgment: The Court suggested reconsidering the VP Shantna (1995) judgment, which held doctors and medical professionals accountable under the CPA.
- Consumer Protection Act Overview: The CPA was enacted in 1986 to protect consumer rights and was updated in 2019 to strengthen consumer protection.
- Key Features of CPA 2019:
- Expanded definition of ‘consumer’ to include online and electronic services.
- Establishment of the Central Consumer Protection Authority (CCPA) to enforce consumer rights.
- Enhanced dispute resolution mechanisms, including mediation and e-filing.
- Introduction of product liability, holding manufacturers and service providers accountable.
- Measures to prevent unfair trade practices in e-commerce and direct selling sectors.
- Impact of the Ruling: The decision creates a clear distinction between legal services and other professional services under the CPA.
Why In News
The Supreme Court ruled that lawyers cannot be sued under the Consumer Protection Act (CPA) for providing faulty services, recognizing that legal services are distinct from other professional services and involve factors beyond a lawyer’s control, which may impact the entire justice delivery system.
MCQs about SC Excludes Lawyers from Consumer Protection Act
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What did the Supreme Court rule regarding lawyers and the Consumer Protection Act?
A) Lawyers can be sued under the CPA for faulty service
B) Lawyers cannot be sued under the CPA for faulty service
C) Lawyers are exempt from all legal liabilities
D) Lawyers are treated the same as medical professionals under the CPA
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Which previous judgment did the Supreme Court suggest may need a review in its latest ruling?
A) The Keshavananda Bharati case
B) The VP Shantna case
C) The Maneka Gandhi case
D) The Indira Gandhi case
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What key change did the Consumer Protection Act (CPA) 2019 introduce?
A) Reduced penalties for manufacturers
B) Expanded the definition of ‘consumer’ to include online and electronic services
C) Exempted doctors and lawyers from the Act
D) Limited dispute resolution to physical complaints only
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What new body was established under the CPA 2019 to enforce consumer rights?
A) National Consumer Disputes Redressal Commission
B) Central Consumer Protection Authority (CCPA)
C) Consumer Protection Tribunal
D) State Consumer Council
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