“LAW TO PROTECT CONSUMER INTEREST WITH SPECIAL REFERENCE TO COMPETITION ACT, 2002 AND CONSUMER PROTECTION ACT, 2019”
Rahul A. Joshi
Assistant Professor, S and S Law College, Indore
Abstract- The implementation of a thorough competition system in a developing nation is accompanied by high hopes, owing to the assumption that it would aid in the battle against detrimental economic practises and serve as a cure for economic growth. However, this is not always the case because the adoption of competition legislation is only the first step in the never-ending path of competition regulation, not the end. This is due to various variables such as the law's wordings, the regulator's ability, and the judicial system's effectiveness, among others, which might either favourably or adversely impact the law's execution. This study report reflected the difficulties that developing nations face in implementing competition legislation. To evaluate the provisions of the Consumer Protection Law 2019 and the Competition Act 2002, it took a doctrinal approach. The study report discussed the CPA and Competition Act's potential, but it focused more on the Act's many areas of concern, which might provide obstacles to its successful implementation and achievement of its goals.
1 INTRODUCTION
“The main objective of the Competition Law is to market economic efficiencies exploitation competition united of the suggests that of aiding the creation of market alert to shopper preferences.”
Competition is outlined as a method whereby value economical production is achieved in a very structure having cheap range of players (producers and consumers) with easy entry and exit procedures and wherever exists a detailed substitution between merchandise of various players in a very given trade.
Competition refers to a market state of affairs within which sellers severally try for buyer's patronage so as to attain the business objectives of profit, sales turnover and market share. In alternative words, it's the act of competitor by associate enterprise against alternative business enterprises for the aim of achieving dominance within the market or attaining an award or goal. It‟s the inspiration on that a market system works. For economic system to perform effectively, this competition should be completely open and honest. Such a competition encourages creativity and competitiveness, resulting in the most efficient distribution of capital within the economy, ensures consumer shopping safety, lowers inflation and increases quality, speeds up growth and development, and protects financial and political democracy.
In the absence of adequate protections, businesses can jeopardise the market by engaging in unethical practises for short-term profit. As a consequence, market distortionary practises and anti-competitive forces can prevent an economy's healthy competition from functioning. As a result, there is a need to have appropriate regulatory environments in place to ensure fair competitiveness, allowing all businesses to prosper and flourish while also stimulating the country's economic growth.An effective competition law can provide both short-term and long-term policy options for regulating competition power in order to keep the economy moving at a steady pace.
Most antitrust regulations aim to boost economic efficiency, improve consumer health, ensure fair trade, and prevent market force misuse. Anti-competitive deals are one of the three types of social regulation covered by most antitrust laws Abuse of supremacy, as well as mergers with the potential to be anti-competitive.
The reasons for the implementation of competition laws differ by country; they are usually related to topics such as high levels of market concentration, monopoly forming, state monopolies, privatisation and deregulation, addressing the needs of bilateral and plurilateral trade arrangements, and taking into account cross-border competition aspects and issues.
2 THE TERM "CONSUMER'S" INDICATES THAT
In layman's terms, the term "consumer" refers to any person or household who consumes goods and services produced throughout the economy. However, there is a difference between the terms "customer" and "consumer," as defined by the Consumer Protection Act and the Competition Act.
(a) Consumer Protection Act 2019
Section 2(7) of the Consumer Protection Act defines Consumer as-
"Consumer" suggests that somebody who—
(i) Buys any product for a thought that has been paid or secure or partially paid and partially secure, or below any system of payment and includes any user of such product apart from the one who buys such product for thought paid or secure or partially paid or partially secure, or below any system of payment, once such use is formed with the approval of such person, however doesn't embody someone United Nations agency obtains such product for marketing or for any business purpose; or (ii) Hires or avails of any service for a thought that has been paid or secure or partially
paid and partially secure, or below any system of payment and includes any beneficiary of such service apart from the one who hires or avails of the services for thought paid or secure, or partially paid and partially secure, or below any system of payment, once such services ar availed of with the approval of the primary mentioned person, however doesn't embody someone United Nations agency avails of such service for any business purpose.
(b) The Competition Act 2002
Section 2 (f) of the Competition Act defines Competition as-
Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, whether such purchase ofgoods is for resale or for any commercial purpose or for personal use;
Hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first- mentioned person whether such hiring or availing of services isfor any commercial purpose or for personal use.
As a result, it can be argued that there is a disparity in the scope of the concept of consumer in each of these Acts. A broker who buys products for business purposes is called a buyer under competition law, but the same individual is not regarded as a consumer under the Consumer Protection Act. As a result, antitrust law has a broader concept of consumer than the Consumer Protection Act. As a buyer, the Competition Act allows anyone who buys products for resale to contest anti-competitive practises. Thus, under Competition Law, if a customer contracts services for a commercial purpose, he falls under the definition of a customer and is entitled to consumer rights, while under the Consumer Protection Act, the same person is not considered a consumer and thus is not entitled to consumer rights. In the case Laxmi Engineering Works v. P.S.G. Industrial Institute3, it was decided that an individual who buys products solely for personal use falls under the Consumer Protection Act, 1986.
3 RELATIONS BETWEEN CONSUME PROTECTION AND COMPETITION LAW
There exists some distinction among the buyer Protection Act and therefore the Competition Actwith relevance their individual provisions for shoppers.
Firstly the definition of shopper varies a touch below the 2 acts. The Competition Act takes a broader read of term shopper and additionally includes someone United Nations agency buys product or hires services for business use. However below {the shopper the buyer the patron} Protection Act such someone isn't a consumer. so there's additionally a
distinction within the nature of shopper United Nations agency might complain. Whereas in shopper Protection Act {the shopper thebuyer the patron} has to be associate user and should use the products for his personal purpose whereas below Competition Law consumer may well be {a businessbillboard andataposter anadvert an advertisement} entity reusing the products for commercial functions.
Secondly, {the shopper the buyer the patron} Protection Act provides rights and relief to a personal consumer i.e. someone will claim compensation for specific the actual}
instance of failure to produce adequate product and services in a very particular case, whereas the Competition Commission„s powers additional of public interest based mostly i.e. it's the duty of the commission to guard truthful competition within the entire market.
Thirdly, the essence of the competition commission is that of a regulator, and to not offer musical passage or equitable relief to people United Nations agency complain.
Fourthly, the buyer Protection Act solely deals with consumption and therefore the consumer„s interest and not with markets as an entire, whereas Competition Law deals with market as an entire.
4 CONSUMER WELFARE
There is no universally accepted concept of shopper welfare. However, a look at the international association pointers for shopper security, adopted by the UN General Assembly in 1985 and updated since then, will help us understand the concepts surrounding shopper safety.in the year 1999 It is a global regulatory system for regulators to use in developing and enforcing consumer safety policies and regulations aimed at improving consumer health.
The United Nations urges policymakers to establish, improve, or sustain a strong consumer agenda, as well as to provide for improved customer security, by laying out a series of steps and initiatives centred on eight themes. Here are the eight points-
• Protecting one's physical well-being
• Protecting one's financial interests
• Requirements
• Items and facilities that are absolutely necessary
• Make amends
• Facts and education
• Specific health-related topics
• Consumption that is environmentally friendly
These Guidelines have implicitly recognised eight consumer protections that are enshrined in the International Consumer Charter.
5 KEY VARIATIONS BETWEEN GOOD COMPETITION AND IMPERFECT COMPETITION The following square measure the most significant distinctions between good and bad rivalry.
1. A fair market is one in which there are a large number of buyers and sellers, and the sellers offer the same goods to the consumers. When one or more of the criteria of the correct competition aren't met, imperfect competition occurs.
2. While good rivalry can be a hypothetical situation, it does not apply globally. Imperfect Competition, on the other hand, is a state of affairs that can be observed in the gift- giving community.
3. In a market with strong competition, there are several competitors; but, in a market with imperfect competition, there might be few or few players, depending on the market structure.
4. In a good market, sellers produce or have similar products, while in a bad competition, sellers' products are either strong or distinct.
5. While there is strong competition, there are no obstacles to firms entering and exiting, whereas when there is imperfect competition, there are.
6. It is thought that firms do not affect the value of a commodity in strong competition, so worth takers, but in imperfect competition, corporations are worth manufacturers.
6 ACT ASSOCIATED WITH CLIENT INTEREST
6.1 Monopolies and Restrictive Trade Practices Act, 1969 –An Overview (MRTP)
The Monopolies and Restrictive Trade Practices Act of 1969 (MRTP Act) was an act that ensured that the development of the national economy did not result in the accumulation of economic resources to the detriment of the general public, for the regulation of monopolies, the prohibition of non-competitive and restrictive trade practises, and for matters related to or incidental to it.
In 1974, 1980, 1982, 1984, 1985, 1986, 1988, and 1991, the MRTP Act was revised several times. The consequence of those changes was that the laws governing monopolies were almost repealed, but unjust trade policies were brought into the Act's scope.
The Act was ‗restructured „in 1991 by omitting Sections twenty to twenty six and shifting the provisions contained in Chapter IIIA relating to restrictions, acquisition and transfer of shares to the businesses Act, 1956.
6.2 Restrictive Trade Practices (RTPs)
A restrictive trade apply is usually one that has the result of preventing, distorting or limiting competition. Specificallyapply that tends to hinder the flow of capital or resources into the stream of production is associate RTP. Likewise, manipulation of costs, conditions of delivery or flow of provide within the market which can have the result of imposing on the patron unreasonable prices or restrictions square measure thought to be restrictive trade practices.
6.3 Unfair Trade Practices (UTPs)
Unfair trading practise refers to a business practise that employs some unfair tactic or unfair or misleading practise in order to promote the selling, use, or provision of a good or the availability of a service.
7 CONCLUSION
Competition is regarded as a required but insufficient component of client wellbeing. So, while customer wellbeing isn't the primary objective of competition law, the enforcement of Competition Policies does. Furthermore, antitrust law prohibits anti-competitive activities such as violation of dominant status, anti-competitive agreements, and combos, among others. However, competition policy will eradicate the presence of such anti-competitive agreements, thus protecting consumers by its conduct.
Client security does not act against the patron's benefit, but rather in its favour, thanks to competition standards. Client security often goes to great lengths to keep consumers from being deceived, resulting in over-regulation and controls that stifle the fierce competitiveness that would otherwise improve client choice. As a result of these steps, sellers would be unable to commercialise what consumers require. As a result, for the benefit of consumers, the competitiveness policy would examine whether the patron Protection Act's provisions are anti-competitive.
Client rights can also complement antitrust law by offering useful perspectives into whether competition regulation should be abolished and by improving our perception of how economies work.
Competition legislation focuses on preserving the method of competition between businesses and attempting to correct behavioural or systemic problems in order to re- establish successful market competition. As a result, it leads to increased economic potency, increased creativity, and improved customer wellbeing. As a result, the customer has a broader range of options and easier access to low-cost goods.
Contraryto popular beliefMarkets that are sustainable and promote customer wellbeing so, in order for the free market agenda to succeed, the State must have the patron's best interests at the forefront of its mind. In comparison to the present, there would be bound items where competition is no longer beneficial to consumers. It is impossible to assume that customer security is a product of competition law.
Also, We may claim that the Consumer Protect Act of 2019, whose development began in 2010, is one of the most genuine efforts done by the federal government to improve consumer rights and expedite justice delivery. Many features of the new Act, such as mediation and e-commerce, were unknown to the world in 1986. As a result, when digitalization transformed the way consumers conduct online transactions and the method of purchasing switched from offline to online, it was necessary to update the act. The 2019 Act is unquestionably a step forward in terms of reform, development, and consumer rights protection. Every year, socioeconomic changes occur, and we may expect additional revisions to the 2019 act as we move forward.
REFERENCES
1. The Competition Act, 2002, VOL-3, 2013.
2. The Competition (Amended) Act, 2007.
3. The Consumer Protection Act 2019.
