Consumer Protection Act 2019 Sections 88 to 93: Offences and Penalties
Chapter VII - Offences and Penalties
Sections 88 to 93 of the Consumer Protection Act, 2019 contain important penal provisions concerning failure to comply with directions of the Central Consumer Protection Authority, false or misleading advertisements, adulterated products, spurious goods, cognizance of offences and vexatious searches.
These provisions form Chapter VII - Offences and Penalties of the Consumer Protection Act, 2019. They operate alongside the regulatory powers of the Central Consumer Protection Authority (CCPA) and other provisions of the Act intended to protect consumers from unsafe goods, misleading advertisements and unfair practices.
Sections covered on this page
Overview of Sections 88 to 93
| Section | Subject | Key consequence |
|---|---|---|
| 88 | Non-compliance with CCPA directions | Imprisonment up to 6 months, fine up to Rs. 20 lakh, or both |
| 89 | False or misleading advertisement | Imprisonment and fine, with enhanced punishment for subsequent offences |
| 90 | Products containing adulterant | Punishment depends upon resulting injury, grievous hurt or death |
| 91 | Spurious goods | Punishment depends upon injury, grievous hurt or death |
| 92 | Cognizance by court | Special complaint requirement for offences under Sections 88 and 89 |
| 93 | Vexatious search | Imprisonment up to 1 year, fine up to Rs. 10,000, or both |
Section 88 - Penalty for Non-compliance of Direction of Central Authority
88. Whoever, fails to comply with any direction of the Central Authority under sections 20 and 21, shall be punished with imprisonment for a term which may extend to six months or with fine which may extend to twenty lakh rupees, or with both.
What Section 88 means
Section 88 provides the criminal consequence for failure to comply with directions issued by the Central Consumer Protection Authority under Sections 20 and 21 of the Act.
Section 20 concerns measures that may be ordered in relation to unsafe goods and services, including recall of goods, withdrawal of services and reimbursement of prices. Section 21 deals with directions and penalties relating to false or misleading advertisements.
Section 89 - Punishment for False or Misleading Advertisement
89. Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees.
Meaning and scope of Section 89
Section 89 applies to a manufacturer or service provider who causes a false or misleading advertisement prejudicial to consumer interests. The provision prescribes enhanced punishment for subsequent offences.
A "misleading advertisement" is defined in Section 2(28) of the Consumer Protection Act, 2019. Broadly, the definition covers advertisements that falsely describe a product or service, give a false guarantee, are likely to mislead consumers regarding the nature, substance, quantity or quality of a product or service, convey an express or implied representation amounting to an unfair trade practice, or deliberately conceal important information.
The CCPA has also issued the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
Section 90 - Products Containing Adulterant
90. (1) Whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any product containing an adulterant shall be punished, if such act -
(a) does not result in any injury to the consumer, with imprisonment for a term which may extend to six months and with fine which may extend to one lakh rupees;
(b) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees;
(c) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which may extend to seven years and with fine which may extend to five lakh rupees; and
(d) results in the death of a consumer, with imprisonment for a term which shall not be less than seven years, but which may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees.
(2) The offences under clauses (c) and (d) of sub-section (1) shall be cognizable and non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence.
Explanation. For the purposes of this section -
(a) "adulterant" means any material including extraneous matter which is employed or used for making a product unsafe;
(b) "grievous hurt" shall have the same meaning as assigned to it in section 320 of the Indian Penal Code.
What is an adulterant?
For Section 90, an "adulterant" means material, including extraneous matter, employed or used for making a product unsafe. The punishment becomes progressively more serious according to the consequence of the adulteration.
Section 91 - Punishment for Spurious Goods
91. (1) Whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any spurious goods shall be punished, if such act -
(a) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees;
(b) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which may extend to seven years and with fine which may extend to five lakh rupees;
(c) results in the death of a consumer, with imprisonment for a term which shall not be less than seven years, but may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees.
(2) The offences under clauses (b) and (c) of sub-section (1) shall be cognizable and non-bailable.
(3) Notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence.
Meaning of spurious goods
Section 2(43) of the Consumer Protection Act, 2019 defines "spurious goods" as goods which are falsely claimed to be genuine. Section 91 imposes criminal punishment where manufacture, storage, sale, distribution or import of such goods causes injury, grievous hurt or death to a consumer.
Section 92 - Cognizance of Offence by Court
92. No cognizance shall be taken by a competent court of any offence under sections 88 and 89 except on a complaint filed by the Central Authority or any officer authorised by it in this behalf.
Why Section 92 is important
Section 92 creates a specific procedural requirement for prosecution of offences under Sections 88 and 89. A competent court cannot take cognizance of those offences except upon a complaint filed by the Central Consumer Protection Authority or an officer authorised by it.
Section 93 - Vexatious Search
93. The Director General or any other officer, exercising powers under section 22, who knows that there are no reasonable grounds for so doing, and yet -
(a) searches, or causes to be searched any premises; or
(b) seizes any record, register or other document or article,
shall, for every such offence, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees or with both.
Protection against searches without reasonable grounds
Section 93 provides a safeguard against misuse of the search and seizure powers connected with Section 22. It applies where the Director General or another officer knows that reasonable grounds for the search or seizure do not exist but nevertheless carries it out or causes it to be carried out.
Key Points About Chapter VII
Chapter VII combines regulatory enforcement with criminal consequences. Sections 88 and 89 address disobedience of CCPA directions and misleading advertising, while Sections 90 and 91 address potentially more serious consumer harm caused by adulterated products and spurious goods.
In serious cases under Sections 90 and 91 involving grievous hurt or death, the specified offences are cognizable and non-bailable. The Act also permits suspension of a relevant licence following a first conviction and cancellation following a second or subsequent conviction in the circumstances specified in those sections.
Section 92 separately controls how courts may take cognizance of offences under Sections 88 and 89, while Section 93 imposes liability for knowingly conducting a search or seizure without reasonable grounds.