SAVING INDIAN CONSUMERS FROM UNFAIR CONTRACT TERMS – THE IMPACT OF SECTION 2(46), CONSUMER PROTECTION ACT, 2019 ON THE HOME BUYERS INDUSTRY

Authors

Shivkrit Rai, Advocate practicing before the Delhi High Court and across various Tribunals in Delhi. He regularly appears before the National Company Law Appellate Tribunal, National Company Law Tribunal and across all Consumer forums in Delhi.

Abstract

On July 24, 2020, the Central Government notified the Consumer Protection Act, 2019, thereby replacing the Consumer Protection Act, 1986. One of the most significant changes brought about in the new Act is the introduction of a provision dealing with the unfair contract. This article traces how judicial and quasi-judicial forums dealt with unfair clauses in contracts prior to the implementation of the Consumer Protection Act, 2019. This is done by discussing different nuances from Competition Commission, and Consumer Commission along with narratives from United Kingdom’s Consumer Rights Act, 2015. The author argues that an explicit provision empowering the Consumer Forums to deal with unfair contract terms will create a tectonic shift in how consumer cases with respect to unfair contract terms will be decided. It is argued that such a provision will create more efficient outcomes by providing quicker reliefs and will change the nature of consumer contracts in the long run. The author has extensively used the case study of unfair clauses in Builder Buyer Agreements to explain how Consumer Protection Act, 2019 will tackle these changes.

Recommended Citation

Rai, Shivkrit (2022) "SAVING INDIAN CONSUMERS FROM UNFAIR CONTRACT TERMS – THE IMPACT OF SECTION 2(46), CONSUMER PROTECTION ACT, 2019 ON THE HOME BUYERS INDUSTRY," International Journal on Consumer Law and Practice: Vol. 10, Article 7.
Available at: https://repository.nls.ac.in/ijclp/vol10/iss1/7